| We have audited the accompanying financial statements of BGIL FILMS &
TECHNOLOGIES LIMITED ("the Company" which comprise of the Balance
Sheet as at March 31, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended as on that date annexed
thereto, a summary of significant accounting policies and other
explanatory information.
Management's responsibility for the Financial Statements
The Company's management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India subject to confirmation and reconciliation of some of the
accounts as further detailed in note no. 25 of the notes on account,
non-provision for retirement- benefits amounting to Rs. 2.40 lacs as
further detailed in note no. 35, classification of Investments as
detailed in note no. 36 and non-provision for diminution in value of
quoted investments amounting to Rs. 186.35 lacs as further detailed in
note no. 37:
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2014 and;
ii) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date.
iii) In the case of Cash flow statement, of the cash flows for the year
ended on that date.
Report on other Legal & Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government in terms of section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks of the books and records of
the company, as we considered appropriate, we enclose in the annexure a
statement on the matters specified in the said Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of account as required by law, have
been kept by the company so far as appears from our examination of
those books.
(c) the Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT Referred to in paragraph 3 of our
report of even date,
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Fixed Assets are physically verified by the management
according to regular programme of periodical verification in phased
manner, which in our opinion, is reasonable having regard to the size
of the company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) During the year, the company has not disposed off any substantial
part of its Fixed Assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) As per information and explanation provided to us by the
management of the company, the Company has not granted loan to any body
corporate listed in the register maintained under section 301 of the
Companies Act, 1956.
(b) As per information and explanation provided to us by the management
of the company, the Company has not taken any loan from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
(c) As per information and explanation provided to us by the management
of the company, the loan granted to the subsidiary company covered in
the register maintained under section 301 of the Act is interest free.
(d) As per information and explanation provided to us by the management
of the company, no specific terms of repayment has been specified in
the case of loan taken/granted to any body corporate listed in the
register maintained under section 301 of the Act, and repayment shall
be made on demand.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, there are no transactions
that need to be entered into the register maintained under section 301
of the Companies Act, 1956.
(vi) The company has not accepted any deposits as defined under
sections 58A of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records have not been prescribed by the Central
Govt. under section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the records of the company, in our opinion the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employee's state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and any other statutory dues
applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amount payable in respect of provident fund, income
tax, sales tax, customs duty, excise duty, wealth tax, Service Tax and
other material statutory dues which were in arrears for more than six
months from the date they become payable except the following.
Name of the
Statute Nature of Dues Amount Period to which
amount relates
(in Rs.)
Income Tax
Act, 1961 Interest on late
payment of TDS 58,045 01.04.09 to 31.03.14
Income Tax Act,
1961 Late filing of
TDS Returns 77,700 01.07.2012 to 31.03.14
(c) Detail of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and cess which have not been deposited as on
31st March 2014 on account of disputes are given below:
Name of the
Statute Nature of Amount Period
to which Forum where the
Dues (in lacs) amount
relates dispute is
pending
Income Tax Act,
1961 Tax / Interest 14.99 AY 2010-11 DCIT, New Delhi
(x) The company has no accumulated losses as on 31st March 2014 and it
has not incurred any cash losses during the financial period ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans during the current
year.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment and vice-versa.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised money by way of public issues during
the year.
(xxi) Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
For SNMG & Co.
Chartered Accountants
Firm No. 004921N
NEERAJ GUPTA
Place : New Delhi Partner
Date : 29.05.2014 M. No. 087004 |