| We have audited accompanying financial statements of IDream Film
Infrastructure Company Limited (Formerly known as Softbpo Global
Services Limited)
("the Company"), 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' 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") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the 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 the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis of Matter:
Without Qualifying our Opinion:
The company has incurred losses in the past years and current year. The
Company's accumulated losses exceed its net worth at the balance sheet
date resulting in negative net worth. However, the company's accounts
are prepared on going concern basis in view of the undertaking from its
holding company for continuous financial support.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003, ("the
order") as amended by the Companies (Auditor's Report) (Amendment)
Order, 2004, 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 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, 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
sub-section (3C) of Section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13th September 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of Companies Act, 2013.
e) On the basis of the written representations received from the
directors, as on March 31, 2014 and taken on record by the Board of
Directors, we report that 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 Auditor's Report
(Referred to in paragraph 1 of Report on Other Regulatory and Legal
Requirements of our Report of even date on the accounts of IDREAM FILM
INFRASTRUCTURE COMPANY LIMITED (Formerly known as SOFTBPO GLOBAL
SERVICES LIMITED) for the year ended 31st March 2014)
(i) The Company does not have any fixed assets. Hence the question of
maintaining proper records, carrying out physical verification and
disposing off a substantial part of the fixed assets does not arise.
(ii) The Company does not have any inventory. Hence the question of
carrying out physical verification and maintaining proper records does
not arise.
(iii) (a) The company has granted interest free unsecured loan to a
company covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 2,48,60,966/- and the year end balance of loans granted to such
party was Rs. 2,48,60,966/-.
(b) In our opinion, the terms and conditions on which loan has been
granted to company, listed in the register maintained under section 301
of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(c) In respect of such loan given by the Company, whether the amount
(principal as well as interest) has been repaid/paid regularly or not
cannot be commented upon, as the loan is interest free and there is no
stipulation as regard to the repayment / payment of the amount.
(d) In respect of the loan given by the company since there is no
stipulation as regards to the repayment of the amount, the question of
overdue amount does not arise.
(e) The Company has taken interest free unsecured loans, from its
Holding company covered in the register maintained under section 301 of
the Companies Act, 1956. The maximum amount involved during the year
was Rs. 2,96,21,251/- and the year end balance of loans granted to such
parties was Rs. 2,96,21,251/-.
(f) In our opinion, the terms and conditions on which loan has been
taken from the company, listed in the register maintained under section
301 of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(g) In respect of the loan taken from the company, whether the
principal amount and interest has been repaid/paid regularly or not
cannot be commented upon, as the loan is interest free and there is no
stipulation as regard to the repayment/payment of the amount.
(iv) During the year, the company has not been engaged in purchase of
inventory and fixed assets and sale of goods and services. Hence clause
4(iv) is not applicable to the company.
(v) a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts and arrangements
referred to in section 301 of the Act have been entered into the
register required to be maintained under that section. b) According to
the information and explanations given to us, there are no transactions
made in pursuance of contracts or arrangements need to be entered in
the register maintained under section 301 of the Companies Act, 1956
exceeding Rs. 5,00,000.
(vi) The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956 and rules made thereunder. Hence, the clause
(vi) of the order is not applicable.
(vii) The paid up share capital and reserves of the Company as at the
commencement of the financial year concerned do not exceed Rs. 50 lacs
and/or the average annual turnover of the company for immediately
preceding three financial years does not exceed Rs.5 Crores,
accordingly we are not required to express an opinion on its internal
audit system.
(viii) We have been informed that the Central Government has not
prescribed maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956.
(ix) a) According to the information and explanations given to us and
on the basis of records produced before us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employees' state insurance, income tax, sales tax, wealth Tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 31st March,
2014 for a period of more than six months from the date they became
payable..
b) There are no cases of non deposit with appropriate authorities of
disputed dues of sales tax / income tax / custom tax / wealth tax /
excise authorities.
(x) The company has accumulated losses at the end of the financial year
exceeding fifty percent of its net worth. The company has incurred cash
losses in current financial year and in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not taken any loans from any financial
institutions, banks or debenture holders and hence the question of
defaulting in repayment of dues does not arise.
(xii) According to the information and explanations given to us, the
Company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable
to the Company.
(xiv) According to the information and explanations given to us, the
Company does not deal or trade in shares, securities, debentures and
other investment.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) The Company has not taken any Term loan during the year.
(xvii) The Company has not taken any funds on short term basis during
the year.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956 during the year.
(xix) The company has not issued debentures during the financial year
and hence the question of creating securities in respect thereof does
not arise.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud, on or by the Company, has been
noticed or reported during the course of our audit.
For Kanu Doshi Associates
Chartered Accountants
Firm Reg. No: 104746W
Ankit Parekh
Place: Mumbai Partner
Date: 30th May, 2014 Membership No: 114622 |