| We have audited the accompanying financial statement, of Khyati
Multimedia Entertainment Limited which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory Information.
Management's Responsibility for the Financial Statements
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 ("the Act"), 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 evidences 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 merit of the financial statements, whether due to fraud or
error. In making those risk assessments the auditor considers internal
controls 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, but not for the purpose of expressing
an opinion on the effectiveness of the company's internal control . 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) In the case of statement of Profit and Loss, of the loss for the
year ended on that date;
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") Issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give In the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the 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 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, 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:
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 AUDITOR'S REPORT
(I) (a) In our opinion and according to the information and explanation
given to us. the company has maintained all the relevant records
showing full particulars including quantitative details and situation
of fixed assets.
(b) In our opinion, the fixed assets have been physically verified by
the management at reasonable intervals having regard to the size of the
company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) The company has not disposed off any fixed assets during the year.
(2) As company is not having any kind of stock the Clauses 4(ii) of the
Companies (Auditor's Report) Order'2003 is not applicable is not
applicable to the Company.
(3) (a) The company has not granted Loan to any party covered in the
register maintained under Section 301 of the companies Act, 1956.
Hence. Clause 4(iii)(a) to (d) of the Order is not applicable to he
company.
(b) The company has Liken unsecured loan from one party covered in the
register maintained under section 301 of the companies Act. 1956. The
maximum amount Involved during the year is Rs. 179.82 lakhs and the
year end balance of such party is Rs. 135.72 lakhs.
(c) As per the information and explanation given to us unsecured loans
taken By the company are interests free and repayable on demand and
hence are prima facie not prejudicial to the interest of the company.
(d) As per the information and explanation given to us unsecured loans
taken by the company is repayable on demand and interest free.
(4) In our opinion and according to the information and explanation
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 the purchase 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 the internal controls.
(5) According to the information and explanation given to us, during
the year, there were no transactions that need to be entered into the
register maintained under section 301 of the Companies Act. 1956.
Accordingly , paragraph (v) (a) and (b) of the order, arc not
applicable.
(6) In our opinion and according to the information and explanations
given to us, the company not accepted any deposits from the public
which falls within the provisions of section 58 A and 58 AA of the
Companies Act. 1956. and the rules framed there under
(7) The company has no formal internal audit system. However, in our
opinion there are adequate internal control procedures commensurate
with the size and nature of its business.
(8) To the best of know ledge and according to the information given to
us, the Central Government has not prescribed maintenance of cost
record under section 209 (1) (d) of the Companies Act, 1956.
(9) (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the company
is regular in depositing undisputed statutory dues Including Provident
Fund, Investor education protection fund, Employee State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise
Duty, Cess and other statutory dues to the extent applicable with the
appropriate authorities.
(b) According to information and explanation given to us, the following
are the details of the sales Tax, Income Tax. Customs Duty, Wealth T ax
or Cess or other statutory due which has not been deposited on account
of any dispute.
Nature of Amount Forum where It
Dues (Rs..) is pending
Provident Rs. 2,00,750/- Provident fund
Fund Appellate Tribunal
New Delhi, which has
remanded the Case to APFC.
Ahmedabad
(10) In our opinion, accumulated losses of the Company are more than
50% of its net worth. The Company has incurred cash losses in the
financial year under report and in the immediately preceding financial
year.
(11) According to the records of the company examined by us and the
information and explanations given to us, the company hud not defaulted
in repayment of dues to bank in earlier years.
(12) According to the information & explanation given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provision of clause 4(xiii) of the
companies (Auditor's Report) order. 2003 are not applicable to the
company
(14) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) order.
2003 arc not applicable to the company.
(15) According to the information & explanations given to us, the
company has not given any guarantees for the loans taken by others from
banks or financial institutions
(16) In our opinion and as per the information given to us as the
company has not taken term loan during the year.
(17) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company. we report
that the no funds raised on short term basis have been used for long
term investment.
(18) According to the information and explanation 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.
(19) According to the information and explanations given to us, Company
has not issued any debenture during the year. Hence reporting on the
question of securitization does not arise.
(20) The company has not raised any fund by way of public issues during
the Year hence the Clause 4(xx) of the Order is not applicable.
(21) Based upon the audit procedures performed and on the basis of
information and explanation provided by the management, we report that
no fraud on or by the company has been noticed or reported during the
year.
For, DJNV & CO.
Chartered Accountants
(Firm Reg. No: 115145W)
Devang Dector
Place: Ahmedabad Partner
Date: 30/05/14 Membership No: 39833 | 