1. We have audited the accompanying financial statements of Broadcast
Initiatives Limited ("the Company"), which comprise the Balance Sheet
as at March 31 , 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Management is responsible for the matters stated in
Section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements to give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and Design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules
made thereunder including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid 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, of the state of affairs of the Company as
at March 31,2015, and its losses and its cash flows for the year ended
on that date.
Emphasis of Matter
9. Without qualifying our opinion, we draw attention to Note 1.01 of
the financial statements. The Company's operating results has been
materially affected due to various factors and as at March 31, 2015,
the Company's accumulated losses has fully eroded the net worth of the
Company. The appropriateness of the going concern assumption is
dependent on the Company's ability to establish consistent profitable
operations as well as raising adequate finance to meet its short term
and long term obligations. Based on the mitigating factors discussed in
the said note, management believes that the going concern assumption is
appropriate and no adjustments have been made in the financial
statements for the year ended March 31, 2015.
Report on Other Legal and Regulatory Requirements
10. As required by 'the Companies (Auditor's Report) Order, 2015',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules. 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies Audit and Auditors)
Rules. 2014, in our opinion and to the best of our knowledge and belief
and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations as at
March 31, 2015 on its financial position in its financial statements.
ii) The Company has made provision as at March 31, 2015, as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative
contracts.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2015.
Annexure To Independent Auditors' Report
Referred to in paragraph 10 of the Independent Auditors' Report of even
date to the members of Broadcast Initiatives Limited on financial
statements as of and for the year ended March 31, 2015
i. (a) The Company is maintaining 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 a phased programme designed to cover the items over a
period of three years which in our opinion is reasonable having regard
to the size of and the nature of its assets. Pursuant to the programme,
a portion of the fixed assets has been physically verified by the
Management during the year and no material discrepancies have been
noticed on such verification.
ii. The Company is a service company, primarily rendering broadcasting
services. Accordingly, it does not hold any physical inventories.
iii. According to the information and explanation given to us and on
the basis of records furnished before us, the company has not granted
any loans, secured or unsecured to parties covered in the register
maintained under section 189 of the Act.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business. Further,
on the basis of our examination of the books and records of the company
and according to the information and explanations given to us, we have
neither come across, nor have been informed of any continuing failure
to correct major weaknesses in the aforesaid internal control system.
v. The Company has not accepted any deposits from the public within
the meaning of Sections 73 and 74 of the Act and the rule framed there
under to the extent notified.
vi. According to information and explanations given to us, maintenance
of cost records has not been prescribed by the Central Government as
specified under sub-section (1) of Section 148 of the Act, in respect
of the services dealt by the company.
vii. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is not regular in depositing the undisputed statutory dues, including
provident fund, employees' state insurance, income tax, sales tax,
service tax, and other material statutory dues, as applicable, with the
appropriate authorities. The statutory dues outstanding for more than
six months from the date they became payable is as below:
Tax Deducted at Source : Rs.1,33,43,496/-
Provident Fund: Rs. 3,88,701/-
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no material dues
payable in respect of provident fund, employees' state insurance,
income tax, sales tax, service tax, and other material statutory dues,
as applicable, with the appropriate authorities as at 31st March 2015
which have not been deposited on account of a dispute.
(c) According to the information and explanations given to us, and the
records of the Company examined by us, there was no amount required to
be transferred to Investor Education and Protection Fund during the
year in accordance with the provisions of the Companies Act, 1956 and
the rules made thereunder.
viii. In our opinion, the Company has accumulated losses as at the end
of the financial year which are more than fifty per cent of its net
worth. The company has incurred cash losses in the financial year ended
on that date and also in the immediately preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not taken
amount from any financial institution or bank or debenture holders as
at the balance sheet date.
x. According to the information and explanations given to us, the
company has not given any guarantees for loan taken by others from
banks or financial institutions during the year.
xi. According to the information and explanations given to us, the
company has not raised any term loans during the year.
xii. During the course of examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor have we
been informed of any such case by the Management.
For Ashok Jayesh & Associates Jayesh D Sangani
Chartered Accountants Partner (M. No. 036041)
Firm Registration No. 100655W Mumbai, May 28, 2015
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