| 1. We have audited the attached Balance Sheet of Fame India Limited
(the "Company") as at 31 March 2012, the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) 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.
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of written representations received from the
directors, as on 31 March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 March 2012 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2012;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS' REPORT TO THE
MEMBERS OF FAME INDIA LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31
MARCH 2012.
In terms of the Companies (Auditors Report) Order, 2003, on the basis
of information and explanations given to us and the books and records
examined by us in the normal course of audit and such checks as we
considered appropriate, to the best of our knowledge and belief, we
state as under:
1. The Company has maintained proper records showing full particulars
including situation of fixed assets. However, the Company is in the
process of updating the quantitative details.
The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies have been noticed on
such verification.
Fixed assets disposed of during the year were not substantial and
therefore do not affect the going concern assumption.
2. Inventories were physically verified by the management at
reasonable intervals during the year.
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.
In our opinion, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification of inventories as compared to book records.
3. The Company has taken loan from its holding company which is
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year is Rs 120,000,000
and the loan is repaid during the year. In our opinion, the rate of
interest and other terms and conditions on which this loan was taken
are not prima-facie prejudicial to the interest of the Company. The
Company was regular in payment of interest.
The Company has given interest free advance to one its wholly owned
subsidiary company which is covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year and the year-end balance is Rs 9,384,585. In our
opinion, the terms and conditions on which this loan was granted are
not prima-facie prejudicial to the interest of the Company. In the
opinion of the management the same may not be recoverable and hence the
entire amount has been provided for as on 31 March 2012.
4. In our opinion, there are generally adequate internal control
procedures commensurate with the size of the Company and nature of its
business for purchase of inventory and fixed assets and for sales and
services. During the course of our audit, no major weakness has been
noticed in the internal control systems in respect of these areas.
5. In our opinion, there are no transactions that need to be entered
into the register maintained under section 301 of the Companies Act,
1956.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the Rules framed thereunder and hence the
provisions of clause 4(vi) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 for
activities of the Company.
9. The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investors Education and Protection Fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth-tax, Service-tax, Customs Duty, Cess,
Entertainment Tax and other material statutory dues applicable to it.
Provisions of Excise Duty are not applicable to the Company.
No undisputed amounts payable in respect of Income-tax, Wealth-tax,
Sales-tax, Service tax, Customs Duty, Excise Duty and Cess were in
arrears, as at the end of the year, for a period of more than six
months from the date they became payable.
There are no dues of Income-tax, Sales-tax, Wealth-tax, Service-tax,
Customs Duty, Excise Duty or Cess, which have not been deposited with
the appropriate authorities on account of disputes, except the
following:
Name of the
Statute Nature of
dues Amount Period to
Rs which the
amount Forum where
dispute is
relates pending
Income-tax
Act TDS on
certain
payments 1,131,839 Financial
year
2009-2010,
2010- Commissioner of
Income-tax
2011 and
2011-2012
(upto (Appeals), Mumbai.
December
2011)
In respect of levy of service tax on renting of immovable properties,
see note no. 31 in the notes to the financial statements.
10. The Company's accumulated losses as at the end of the financial
year are less than fifty percent of its net worth. The Company has not
incurred cash losses during the current year and in the immediately
preceding financial year.
11. The Company has not defaulted in repayment of dues to banks.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments and hence the provisions of clause
4(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
15. The Company has not given any guarantee for loans taken by others
from banks or financial institution during the year.
16. The term loans taken by the Company have been applied for the
purpose for which they were raised.
17. The funds raised on short term basis have not been used for long
term investment by the Company.
18. During the year the Company has not made any preferential
allotment of shares to parties covered in the register maintained under
section 301 of the Companies Act, 1956.
19. There are no debentures issued and outstanding during the year and
hence the provisions of clause 4(xix) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
20. We have verified the end use of money raised during the year
through the rights issue of equity shares as disclosed in note no. 32
to the financial statements.
21. No fraud on or by the Company was noticed or reported during the
course of our audit.
For Patankar & Associates,
Chartered Accountants,
Firm Reg. No. 107628W
(Sanjay Agrawal)
Place : Pune Partner
Dated : 24 May 2012 Mem. No. 049051 |