| We have audited the accompanying financial statements of M/s. Sibar
Media & Entertainment Limited,., which comprise the Balance Sheet as at
31st March,2014 the Statement of Profit and Loss and the 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"). The 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 misstatements.
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. 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.
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 31March,2014;
b) in the case of the Statement of Profit and Loss, of the profit 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.
Report on Other Legal and Regulatory Requirements:
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.
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, the Statement of Profit and Loss
and Cash Flow Statement, comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Company Act 1956.
e) On the basis of written representations received from the directors
as on 31st March,2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March,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 REPORT OF THE AUDITORS
M/s Sibar Media & Entertainment limited
Referred to in Paragraph 1 of our report of even date.
1.1 The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1.2 The fixed assets have been physically verified by the management
during the period and no serious discrepancies have been noticed on
such verification.
1.3 The Company has not disposed substantial part of the fixed assets
during the period and hence do not effect going concern status of the
company.
2.1 The stock of inventory have been physically verified during the
year by the management. In our opinion, the frequency of verification
is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventory followed by the management reasonable and adequate
considering the size of the Company and the nature of its business.
2.3 No material discrepancies have been noticed on physical
verification of stocks as compared to book records in so far as appears
from our examination of the books.
03. According to the information and the explanations given to us, the
Company has not granted any loans secured or unsecured to companies,
firms or other parties to be listed in the Register to be maintained
under section 301 of the Companies Act, 1956. Accordingly the
provisions of clauses 4(iii)(b), 4(iii)(c) & 4(iii)(d) order are not
applicable.
04. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, for the to
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls
system.
05. According to the information and explanations given to us, we are
of the opinion that the company has not purchased any goods, materials
and had not sold goods, materials and services in pursuance of
contracts or arrangements to be entered in the register to be
maintained U/S 301 of the Companies Act, 1956. Accordingly clause
4(v)(b) is not applicable.
06. In our opinion and according to the information and explanations
given to us and as shown by the books of accounts, the Company has not
accepted deposits within the meaning Section 58A, 58AA or any other
relevant provisions of the Companies Act, 1956. Hence compliance of
provisions of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 does not arise.
07. In our opinion that the Company has an Internal Audit system
commensurate with its size and nature of its Business.
08. We have been informed by the Company that the Central Government
had not prescribed any cost records U/ s. 209(1)(d) of the Companies
Act, 1956 and hence the Company did not maintained any cost records.
9.1 According to the books and records examined by us and the
information and explanations given to us, the company is regular in
depositing with appropriate authorities the undisputed statutory dues
payable in respect of Income-tax, Wealth-tax, Sales-tax, Service-tax,
customs duty and excise duty which have remained outstanding as at 31st
March, 2014 for a period exceeding six months from the date they became
payable.
9.2 According to the books and records examined by us and the
information and explanations given to us, there were no disputed
amounts which are not deposited payable in respect of Income-tax,
Wealth-tax, Sales-tax, Services-tax, customs duty and excise duty cess.
However their exists a disputed income tax liability of Rs. 17.81 Lakhs
which have remained outstanding as at 31st March, 2014.
10. The company has been incorporated for a perid exceeding five
years. As per the financial statements, the accumulated losses at the
end of the year as 31.03.2014, are 1120.84 Lacs which accounts 28.74%
of its net worth and the company has not incurred any cash losses
during the financial years 2013-2014.
11. According to the books and accounts examined by us and the
information and explanations given to us the Company has cleared all
the dues with the Bank as such the Question of defaults does not arise.
12. According to the books and accounts examined by us and the
information and explanations given to us, the Company has not granted
any loans and advances against security by way pledge of shares,
debentures and other securities.
13. The company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, the provisions of clause 4(xiii) of the Order is
not applicable.
14. According to the information and explanations given to us the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Order, is not applicable.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. According to the books and records examined by us, and information
and explanations given to us, the company has not obtained any term
loans during the year
17. According to the information and explanations given to us, and
books and records examined by us, no funds raised on short-term basis
have been utilized for long-term investment.
18. According to the information and explanations given to us, and
books and records examined by us, no preferential allotment of shares
has been made by the company. Accordingly, the provisions of clause
4(xviii) of the Order, is not applicable.
19. According to the information and explanations given to us, the
company has not issued debentures during the period under audit.
Accordingly, the provisions of clause 4(xix) of the Order, is not
applicable.
20. The Company has not raised any money by public issue of shares
during the period under audit. Accordingly, the provisions of clause
4(xx) of the Order, is not applicable.
21. During the course of our examination of the accounts of the
Company in accordance with generally accepted auditing practices, we
have not come across any instances of frauds on or by the Company, nor
we have been informed by the management, of any such instance being the
noticed or reported during the year.
for HANUMAIAH& Co.,
Chartered Accountants,
Sd/-
(K.HANUMAIAH)
Partner
Membership No.201719
Place : Vijayawada
Date : 31.05.2014 |