| 1 We have audited the attached Balance Sheet of the company as at March
31 2014 and the related Statement of Profit and Loss Account for the
year ended on that date, Cash Flow statement as on that date and a
summary of significant accounting policies and other explanatory
information which we have signed under reference to this report. 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.
Management's Responsibilities for the Financial Statements
2 The company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
positions, financial performance in accordance with the Accounting
Standards referred to in sub section 3C of Section 211 of the Companies
Act 1956 of India (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.
Auditors Responsibility
3 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4 An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors' judgment, including the
assessment of the risks of the material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments the auditor's consider 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, 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.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
6 In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required
subject to the following observation:
i. The company has violated S.58A of the Companies Act 1956 by
accepting deposits from the public.
ii The company has not paid the Income Tax, Tax deducted at source etc
till date.
iii. Loans & Advances taken/given by the company has not shown any
movement during the year and no confirmation has been received by the
company.
iv Balances shown in Sundry Debtors and Sundry Creditors too have not
shown any movements during the year and we doubt the actual recovery/
payment of the same.
V . Investment made by the company in the film Anwar appears to be a
sunk investment although the company is hopeful of selling the rights
of the film.
Subject to the above, the accounts give a true and fair view in
conformity with the accounting principles generally accepted
(a) in the case of Balance Sheet of the state of affairs of the Company
as at 31st March 2014
(b) in the case of Statement of Profit and Loss, of the Loss for the
year ended on that date. in the case of Cash Flow Statement, of the
cash flows for the year ended on that date.
7 As required by the Companies ( Auditors Report) Order 2003 as amended
by the Companies ( Auditors Report ) ( Amendment) Order 2004) issued by
the Central Government of India in terms of sub section (4A) of Section
227 of the Companies Act, 1956 of India 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 during
the course of our audit, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
8 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 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 appears from our examination of those
books.
c The Balance Sheet and the Statement of Profit and Loss Account dealt
with by this report are in agreement with the books of account.
d. In our opinion the Balance Sheet and the Statement of Profit and
Loss Account, dealt with by this report comply with the accounting
standards referred to in sub section (3c) of section 211 of the Act.
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 Act.
ANNEXURE TO THE AUDITORS REPORT
1. (i) The company is maintaining proper record showing full
particulars including quantitative details and situation of its Fixed
Assets.
(ii) Physical verification of fixed assets has not been done by the
management during the year. We are doubtful about the presence of the
Fixed Assets.
In our opinion and according to the information and explanations given
to us, a substantial part of fixed assets have not been disposed off by
the Company during the year.
2 According to the information and explanations given to us, the
company has granted loans to a company covered in the register
maintained under Section 301 of the Act. The rate of interest and other
terms and conditions of such loan is prima facie prejudicial to the
interest of the company.
3. According to the information and explanations given to us, we are
of the opinion that the particulars of the contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
4. In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 in respect of any party during the year have
been made at prices which are reasonable having regard to the
prevailing market prices except in the case of items stated to be of
specialized nature for which as informed there are no alternate of
supply to enable a comparison of the prices paid/ charged.
5. The company has taken loans secured or unsecured from companies
firms or other parties covered in the register maintained under Section
301 of the said Act on terms and conditions which are not prejudicial
to the interest of the company..
6. The company has accepted deposits from the public within the
meaning of Sections 58 A and 58 AA of the Act which are not in
conformity with the rules framed there under.
7 In our opinion and according to the information and explanation given
to us there are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchase of inventories and fixed assets and with regard to the sale of
goods and services. Further on the basis of our examination and
according to the information and explanations given to us we have
neither come across nor have been informed of any instance of major
weakness in the aforesaid internal control system.
8. In our opinion there is reasonable internal audit system within the
company.
9. The company is not regular in paying statutory dues including
income tax, service tax etc. It has defaulted in making payment of
Income Tax for the Financial Year Ending 31st March 2011 aggregating
Rs. 3,657,902 plus Interest and making payment of TDS in time for the
year ending 31st March 2014 aggregating Rs. 159,503 plus Interest.
10. The company has not made cash losses during the year. (Previous
Year Nil).
11. The company has not granted any loans and advances on the basis of
security by way of pledge of shares debentures and other securities.
12. According to the information and explanation given to us the
company has not borrowed or defaulted in repayment of dues to Financial
Institution or Banks.
13. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company funds raised on
short term have not been used for long term investments.
14. The provisions of any special statutes applicable to chit fund
nidhi mutual benefit fund societies are not applicable to the company.
15. The company is not a dealer or trader in shares securities
debentures and other investments.
16. In our opinion and according to the company has not given any
guarantees for loans taken by other from banks or financial
institutions during the year.
17. 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.
18. The company has not issued any debentures during the year and
accordingly the question of security or charge does not arise.
19. The company has not raised any money by way of public issue during
the year.
20. During the course of our 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 and instance of
fraud on or by the company, noticed or reported during the year nor
have we been informed of such case by the management.
The other clauses of the Companies (Auditors Report) Order 2003 as
amended by the Companies (Auditos' Report Amendment Order) 2004 are not
applicable in the case of the company for the current year since in our
opinion there is no matter which arises to be reported in the aforesaid
order.
Place : Camp Office Chennai For R.Pugalia & Company
Dated : 29th May, 2014 Rajeev Kumar Pugalia
M.No:053972
Proprietor
Firm No:318188E
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