| We have audited the accompanying Standalone financial statements of
PADMALAYA TELEFILMS LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31,2015, 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:
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act') with respect to
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 principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with rule 7 of Companies (Accounts) Rules,
2014. This responsibility includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; design, implementation and maintenance of adequate
internal financial controls, that are operating effectively for
ensuring the accuracy and completeness of the accounting records,
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 have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 auditoLsjudgment, 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 financial control relevant to the Company's
preparation of the financial statements, that give a true and fair
view, in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, 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 on the financial
statements:
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 of the state of affairs of the Company as
at 31st March, 2015, its lossand its 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, 2015 ('the
Order") issued by the Central Government of India in terms of
sub-section (11) of section143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further report that:
a) we have sought and 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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to other matters to be included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according
to the explanations given to us:
i. The company has disclosed the impact of pending litigations as at
March 31,2015 on its financial position in its notes to financial
statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
Annexure to Auditors' Report
Annexure referred to in paragraph 1 of Our Report of even date to the
members of Padmalaya Telefilms Limitedon the accounts of the Company
for the year ended 31st March, 2015 under "Report on other Legal &
Regulatory Requirements"
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
I. (a) The Company has maintained proper records showing full
particulars, including quantitativedetails and situation of fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at regular intervals; as informed to us no material
discrepancies were noticed on such verification.
(c) All fixed Assets have been depreciated fully by the end of the
financial year and the net block as at 31st March 2015 is Nil except
Land.
II. (a) The Inventory has been physically verified during the year by
the Management and in our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of the physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and as
explained to us, no material discrepancies were noticed on physical
verification of stocks as compared to book records.
III. The Company has not granted any loans, secured or unsecured
tocompanies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
IV In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets and for the sale of services. Further, on the
basis of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
V The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
VI. In respect of the Company, the Central Government has not
prescribed maintenance of cost records under sub-section (1) of Section
148 of the Companies Act, 2013.
VII. (a) According to the information and explanations given to us and
based on the records of the Company examined by us, the Company is
regular in depositing the undisputed statutory dues, including Provident
Fund, Employee Staff Insurance, Service Tax, Sales Tax ,Income-tax and
other material statutory dues, as applicable, with the appropriate
authorities in India;
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employee Staff Insurance, Service Tax, Sales Tax, Income-tax and
other material statutory dues in arrears as at 31st March, 2015 for a
period of more than 6 months for the date they became payable.
(c) According to the information and explanations given to us and based
on the records of the Company examined by us, there are no dues of
Provident Fund, Employee Staff Insurance, Service Tax, Sales Tax,
Income-tax and other material statutory dues, as applicable, which have
not been deposited on account of any disputes.
(d) There are no amounts that are due to be transferred to the
Investors Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 [1 of 1956] and rules made there
under.
viii. The Company has been registered for a period of not less than 5
years, and its accumulated losses at the end of the financial year are
not more than fifty percent of its net worth and the company has not
incurred cash losses in this financial year and in the immediately
preceding financial year.
ix. In our opinion, and according to the information and explanations
given to us, the company has defaulted in repayment of loan to HDFC
Banks an amount of Rs. 4.48 crores.The Company has not issuedany
debentures.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions, and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company does not arise.
xi. According to the information and explanations given to us, the
Company has not obtained any Term Loans during the financial year;
hence application of this clause does not arise.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Companyand no material fraud
on the Company has been noticed or reported during the year.
for P. MURALI & CO.,
Chartered Accountants
FRN : 007257S
Sd/-
P. MURALI MOHANA RAO
Place : Hyderabad Partner
Date : 30th May, 2015 Membership No. 23412
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