Mar 31, 2018
Report on the Standalone financial statements
We have audited the accompanying standalone financial statements of Eros International Media Limited (âthe Companyâ), which comprises the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone financial statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including Other Comprehensive Income), cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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, issued by the Institute of Chartered Accountants of India, 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 standalone 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 auditorâs 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 financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view 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 the Companyâs 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 these standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 including Ind AS specified under Section 133 of the Act, of the state of affairs of the Company as at 31 March 2018 of its profit including Other Comprehensive Income, its cash flows and the changes in equity for the year ended on that date
Other Matters
The comparative financial information of the Company for the year ended 31 March 2017 prepared in accordance with Indian Accounting Standards, included in these Standalone Financial Statements, have been audited by the predecessor auditor. The report of the predecessor auditor on the comparative financial information expressed an unmodified opinion.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub Section (11) of Section 143 of the Act, we give in the âAnnexure-Aâ 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 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, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act;
(e) On the basis of written representations received from the directors as on 31 March 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018, from being appointed as a director in terms of Section 164 (2) of the Companies Act, 2013;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ to this report;
(g) With respect to the other matters to be included in the Auditorâs 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 on its financial position in its Ind AS standalone financial statements - Refer Note 40 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under the heading Report on other legal and regulatory requirements of our report of even date
i. In respect of its Fixed Assets :
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
b. As explained to us, all the fixed assets have been physically verified by the management during the year by engaging the outside expert which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c. According to the information and explanations given to us, the title deeds of all the immovable properties are held in the name of the Company.
ii. In respect of its Inventories:
According to the information and explanation given to us physical verification of inventories comprising of VCD/DVD/Audio CD have been conducted at reasonable intervals by the management, which in our opinion is reasonable, having regard to the size of the Company and nature of its inventories. No material discrepancies noticed on such verification of inventories as compared to the book records.
iii. In respect of loans, secured or unsecured, granted by the Company to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act:
a) In our opinion the terms and conditions of the grant of such loans are prima facie, not prejudicial to the Companyâs interest.
b) The schedule of repayment of principal and interest has been stipulated wherein the principal and interest amounts are repayable on demand. Since the repayment of such loans has not been demanded, in our opinion, the repayment of the principal and interest amount is regular.
c) There is no overdue amount in respect of loans granted to such companies and firms.
iv. In respect of loans, investments, guarantees and security, the Company has complied with the provisions of Section 185 and 186 of the Act.
v. According to the information and explanations given to us, the Company has not accepted any deposits within the meaning of provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Therefore, the provisions of Clause (v) of paragraph 3 of the Order are not applicable to the Company.
vi. To the best of our knowledge and as explained, The Central Government has not specified maintenance of cost records under sub Section (1) of Section 148 of the Act, in respect of Companyâs products/services. Accordingly, the provision of clause 3(vi) of the order is not applicable.
vii. In respect of Statutory dues :
a. According to the records of the Company, Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, goods and service tax, duty of customs, value added tax, cess and other material statutory dues, as applicable, have not been regularly deposited to the appropriate authorities and there have been significant delays in a large number of cases. Undisputed amounts payable in respect thereof, which were outstanding at the year-end for a period of more than six months from the date they became payable are as follows:-
Statement of arrears of statutory dues outstanding for more than six months:-
Name of the statute |
Nature of the dues |
Amount Rs. in Lakhs |
Period to which the amount relates |
Due Date |
Date of Payment |
Income Tax Act, 1961 |
Interest on Income Tax |
450.33 |
Assessment Year 2016-17 |
31-03-2016 |
Unpaid |
Income Tax Act, 1961 |
Self Assessment Tax |
3,364.44 |
Assessment Year 2017-18 |
31-03-2017 |
Unpaid |
Income Tax Act, 1961 |
Advance Income Tax |
1,322.12 |
Assessment Year 2018-19 |
15-09-2017 |
Unpaid |
Maharashtra Value Added Tax, 2002 |
Work Contract Tax |
2.08 |
Assessment Year 2018-19 |
20-07-2017 |
Unpaid |
Maharashtra Value Added Tax, 2002 |
Sales Tax |
120.91 |
Financial year 2016-17 |
20-01-2017 |
Paid amounting to Rs. 76.30 Lakhs till date |
Maharashtra Value Added Tax, 2002 |
Sales Tax |
74.69 |
Financial Year 2016-17 |
20-04-2017 |
Paid amounting to Rs. 39.70 Lakhs till date |
Maharashtra Value Added Tax, 2002 |
Sales Tax |
27.97 |
Financial Year 2017-18 |
20-07-2017 |
Unpaid |
Central Sales Tax Act, 1944 |
Central Sales Tax |
3.89 |
Financial year 2016-17 |
20-01-2017 |
Unpaid |
Central Sales Tax Act, 1944 |
Central Sales Tax |
4.54 |
Financial year 2016-17 |
20-04-2017 |
Unpaid |
Central Sales Tax Act, 1944 |
Central Sales Tax |
5.62 |
Financial Year 2017-18 |
20-07-2017 |
Unpaid |
b. On the basis of our examination of accounts and documents on records of the Company and information and explanations given to us upon enquires in this regard, the disputed amounts payable in respect of Income Tax, Sales Tax, Service Tax, Custom Duty and Excise Duty/Cess not deposited with the appropriate authorities are as under:
Statement of Disputed Dues:-
Name of the statute |
Nature of the dues |
Amount Rs. in Lakhs |
Amount Paid under protest (Amount Rs. in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Finance Act, 1994 |
Service Tax, Penalties and Interest |
31,810.63 |
1,000.00 |
Various Years From 2009-10 to 2016-2017 |
Assistant commissioner of sales tax (Appeals) |
Income Tax Act, 1961 |
Income Tax |
41.84 |
Various Assessment Years From 2003-04 to 2014-15 |
Commissioner of Income Tax (Appeal) |
|
Income Tax Act, 1961 |
Income Tax |
37.64 |
- |
Assessment Year 2004-05 |
High Court |
Maharashtra Value Added Tax, 2002 |
Sales Tax |
2,002.69 |
26.10 |
Various Years From 2005-06 to 2013-14 |
Joint Commissioner of sales tax (Appeals) |
Central Sales Tax Act, 1956 |
Sales Tax |
170.34 |
2.00 |
Various Years From 2005-06 to 2013-14 |
Joint Commissioner of sales tax (Appeals) |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
ix. The Company has not raised money by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purpose for which the loans were obtained.
x. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. In our opinion Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii. In respect of transactions with related parties:
In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with Sections 177 and 188 of the Act and their details have been disclosed in the financial statements etc., as required by the applicable Ind AS.
xiv. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
xv. In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transaction with the directors or persons connected with him and covered under Section 192 of the Act. Hence, clause (xv) of the paragraph 3 of the Order is not applicable to the Company.
xvi. To the best of our knowledge and as explained, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of SubSection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Control over financial reporting of Eros International Media Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year then ended.
Management Responsibility for the Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For Chaturvedi & Shah
Chartered Accountants
Firm Registration No. 101720W
Sd/-
Amit Chaturvedi
Partner
Membership No. 103141
Mumbai
Dated : 23 May 2018
Mar 31, 2017
Independent Auditorâs Report
To the Members of Eros International Media Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Eros International Media Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) specified under Section 133 of the Act. This responsibility also 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; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. 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 there under
5. 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 these standalone financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 financial controls relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these standalone financial statements.
Opinion
8. I n our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 March 2017, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The Company had prepared separate sets of statutory financial statements for the year ended 31 March 2016 and 31 March 2015 in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) on which we issued auditorâs reports to the shareholders of the Company dated 26 May 2016 and 29 May 2015 respectively. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have also been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, 11. Further to our comments in Annexure B, as required by Section 143(3) of the Act, we 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) I n our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) the standalone financial statements dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;
e) on the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164(2) of the Act;
f) we have also audited the internal financial controls over financial reporting (IFCOFR) of the Company as on 31 March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report dated 26 May 2017 as per Annexure B expressed an unqualified opinion;
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company, as detailed in Note 40 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. the Company, as detailed in Note 47 to the standalone financial statements, has made requisite disclosures in these standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based on the audit procedures performed and taking into consideration the information and explanations given to us, in our opinion, these are in accordance with the books of account maintained by the Company.
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year by engaging the outside expert and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of all the immovable properties (which are included under the head âProperty, plant and equipmentâ) are held in the name of the Company.
(ii) I n our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed on physical verification.
(iii) The Company has granted unsecured loans to companies and firms covered in the register maintained under Section 189 of the Act,
(a) I n our opinion the terms and conditions of the grant of such loans are prima facie, not prejudicial to the Companyâs interests.
(b) t he schedule of repayment of principal and interest has been stipulated wherein the principal and interest amounts are repayable on demand. Since the repayment of such loans has not been demanded, in our opinion, the repayment of the principal and interest amount is regular.
(c) there is no overdue amount in respect of loans granted to such companies and firms.
(iv) In our opinion, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of loans, investments, guarantees and security.
(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has not specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Companyâs products/ services. Accordingly, the provisions of clause 3(vi) of the Order are not applicable.
(vii) (a) Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, value added tax, cess and other material statutory dues, as applicable, have not been regularly deposited to the appropriate authorities and there have been significant delays in a large number of cases. Undisputed amounts payable in respect thereof, which were outstanding at the year-end for a period of more than six months from the date they became payable are as follows:
Statement of arrears of statutory dues outstanding for more than six months
Name of the statute |
Nature of the dues |
Amount in Period to which the amount lakhs (Rs,) relates |
Due Date |
Date of Payment |
Income Tax Act, 1961 |
Self-assessment Tax |
1,411.49 Assessment Year 2016-2017 |
31 March 2016 |
Unpaid |
Income Tax Act, 1961 |
Advance Income Tax (Including interest) |
2,281.55 Assessment Year 2017-2018 |
15 September 2016 |
Unpaid |
Income Tax Act, 1961 |
Tax deducted at Source including interest |
98.90 April - 2016 |
7 May 2016 |
Unpaid |
Income Tax Act, 1961 |
Tax deducted at Source |
60.06 May - 2016 |
7 June 2016 |
Unpaid |
Income Tax Act, 1961 |
Tax deducted at Source |
129.42 June - 2016 |
7 July 2016 |
Unpaid |
Income Tax Act, 1961 |
Tax deducted at Source |
336.92 July - 2016 |
7 August 2016 |
Unpaid |
Income Tax Act, 1961 |
Tax deducted at Source |
386.22 August - 2016 |
7 September 2016 |
Unpaid |
Finance Act, 1994 |
Service Tax including interest |
285.33 April -2016 |
6 May 2016 |
Unpaid |
Finance Act, 1994 |
Service Tax including interest |
410.82 May - 2016 |
6 June 2016 |
Unpaid |
Finance Act, 1994 |
Service Tax including interest |
1,338.13 August - 2016 |
6 September 2016 |
Unpaid |
Finance Act, 1994 |
Service Tax including interest |
1,607.17 October 2015 - March 2016 |
31 March 2016 |
Unpaid |
Finance Act, 1994 |
Krishi Kalyan Cess including interest |
47.76 August - 2016 |
6 September 2016 |
Unpaid |
Finance Act, 1994 |
Swachh Bharat Cess including interest |
121.64 April 2016 - August - 2016 |
6 September 2016 |
Unpaid |
(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount in lakhs (Rs,) |
Amount paid under Protest (Rs,) |
Period to which the amount relates |
Forum where dispute is pending |
Central Sales Tax Act, 1944 |
Sales tax |
12.37 |
- |
Financial Year 2005-06 |
Joint Commissioner of sales tax (Appeals) |
Maharashtra Value Added Tax, 2002 |
Sales tax |
0.70 |
- |
Financial Year 2005-06 |
Joint Commissioner of sales tax (Appeals) |
Central Sales Tax Act, 1944 |
Sales tax |
13.33 |
- |
Financial Year 2007-08 |
Joint Commissioner of sales tax (Appeals) |
Maharashtra Value Added Tax, 2002 |
Sales tax |
517.49 |
- |
Financial Year 2007-08 |
Joint Commissioner of sales tax (Appeals) |
Central Sales Tax Act, 1944 |
Sales tax |
16.26 |
2.00 |
Financial Year 2008-09 |
Joint Commissioner of sales tax (Appeals) |
Maharashtra Value Added Tax, 2002 |
Sales tax |
284.62 |
15.00 |
Financial Year 2008-09 |
Joint Commissioner of sales tax (Appeals) |
Maharashtra Value Added Tax, 2002 |
Sales tax |
455.71 |
- |
Financial Year 2009-10 |
Deputy Commissioner of sales tax (Appeals) |
Central Sales Tax Act, 1944 |
Sales tax |
15.56 |
- |
Financial Year 2009-10 |
Deputy Commissioner of sales tax (Appeals) |
Income tax Act, 1961 |
Income tax |
2.01 |
- |
Assessment Year 2003-04 |
Commissioner of Income Tax (Appeals) |
Income tax Act, 1961 |
Income tax |
37.64 |
- |
Assessment Year 2004-05 |
High Court |
Income tax Act, 1961 |
Income tax |
17.11 |
- |
Assessment Year 2012-13 |
Commissioner of Income Tax (Appeals) |
Finance Act, 1994 |
Service Tax, penalties and interest |
31,350.04 |
1,000.00 |
Financial Year 2009-10 to 2013-14 |
Assistant Commissioner of Sales tax (Appeals) |
Finance Act, 1994 |
Service Tax |
256.59 |
- |
Financial Year from 2013-14 to 2015-16 |
Assistant Commissioner of Sales tax (Appeals) |
Finance Act, 1994 |
Service Tax |
204.00 |
- |
Financial Year 2016-17 |
Assistant Commissioner of Sales tax (Appeals) |
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purpose for which the loans were obtained.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) Managerial remuneration has been provided by the Company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements, as required by the applicable Ind AS.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) In our opinion, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Independent Auditorâs report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. I n conjunction with our audit of the standalone financial statements of Eros International Media Limited (âthe Companyâ) as of and for the year ended 31 March 2017, we have audited the internal financial controls over financial reporting (IFCOFR) of the Company as of that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs Board of Directors is responsible for establishing and maintaining internal financial controls based on criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Companyâs business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs IFCOFR based on our audit. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India (ICAI) and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCOFR, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate IFCOFR were established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCOFR and their operating effectiveness. Our audit of IFCOFR included obtaining an understanding of IFCOFR, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs IFCOFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A Companyâs IFCOFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs IFCOFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of IFCOFR, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the IFCOFR to future periods are subject to the risk that IFCOFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. I n our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).
For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No.: 001076N/N500013
Per Adi P. Sethna
Place: Mumbai Partner
Date : 26 May 2017 Membership No: 108840
Mar 31, 2016
1. We have audited the accompanying standalone financial statements of
Eros International Media Limited ("the Company") which comprise the
Balance Sheet as at 31 March 2016, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
2. 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 standalone 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 the Companies (Accounts) Rules, 2014 (as amended). This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act; safeguarding the assets
of the Company; preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were 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
3. Our responsibility is to express an opinion on these
standalone financial statements based on our audit.
4. 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.
5. 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 standalone financial
statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the 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 financial controls 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. An audit also includes evaluating the
appropriateness of the 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.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
OPINION
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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 31 March 2016, and its profit and its cash
flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
9. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure A, a statement on the
matters specified in paragraphs 3 and 4 of the Order.
10. Further to our comments in annexure A, as required by Section
143(3) of the Act, we 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 it appears from our examination of
those books;
c. the standalone financial statements dealt with by this report are
in agreement with the books of account;
d. in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as
amended);
e. on the basis of the written representations received from the
directors as on 31 March 2016 and taken on record by the Board of
Directors, none of the directors is disqualified as on
31 March 2016 from being appointed as a director in terms of Section
164(2) of the Act;
f. we have also audited the internal financial controls over financial
reporting (IFCoFR) of the Company as of 31 March 2016 in conjunction
with our audit of the standalone financial statements of the Company
for the year ended on that date and our report dated 27 May 2016 as per
annexure B expressed an unqualified opinion.
g. with respect to the 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. as detailed in Note 21 to the standalone financial statements, the
Company has disclosed the impact of pending litigations on its
standalone financial position;
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.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, and to the best of our knowledge and belief, we report
that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(c) The title deeds of all the immovable properties are held in the
name of the Company.
(ii) In our opinion, the management has conducted physical verification
of inventory during the year and no material discrepancies between
physical inventory and book records were noticed on physical
verification.
(iii) The Company has granted unsecured loans to companies and firms
covered in the register maintained under Section 189 of the Act; and
with respect to the same:
(a) in our opinion the terms and conditions of grant of such loans are
not, prima facie, prejudicial to the Company''s interest;
(b) the schedule of repayment of principal has been stipulated wherein
the principal amounts are repayable on demand and since the repayment
of such loans has not been demanded, in our opinion, repayment of the
principal amount is regular;
(c) there is no overdue amount in respect of loans granted to such
companies, firms, or other parties.
(iv) In our opinion, Company has complied with the provisions of
Sections 185 and 186 of the Act in respect of loans, investments,
guarantees and security.
(v) In our opinion, the Company has not accepted any deposits within
the meaning of Sections 73 to 76 of the Act and the Companies
(Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the
provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has not specified maintenance of cost
records under sub-section (1) of Section 148 of the Act, in respect of
Company''s products/ services. Accordingly, the provisions of clause
3(vi) of the Order are not applicable.
(vii)(a) Undisputed statutory dues including provident fund, employees''
state insurance, income-tax, sales-tax, service tax, duty of customs,
duty of excise, value added tax, cess and other material statutory
dues, as applicable, have not been regularly deposited to the
appropriate authorities and there have been significant delays in a
large number of cases. Undisputed amounts payable in respect thereof,
which were outstanding at the year-end for a period of more than six
months from the date they became payable are as follows:
Statement of arrears of statutory dues outstanding for more than six
months
Name of the statute Nature of the dues Amount (f in lakhs)
Income Tax Act, 1961 Self-assessment Tax 1,567.44
Income Tax Act, 1961 Advance Income Tax 723.91
Name of the Statute Period to which the amount Due Date Date of
relates Payment
Assessment Year 2015-2016 30 November 2015 Unpaid
Assessment Year 2016-2017 15 September 2015 Unpaid
(b) The dues outstanding in respect of income-tax, sales-tax, service
tax, duty of customs, duty of excise and value added tax on account of
any dispute, are as follows: Statement of Disputed Dues
Name of the statute Nature of Amount
(Rs. in lakhs)
Central Sales Tax Act, 1944 Sales tax 12.37
Maharashtra Value Added Tax, 2002 Sales tax 0.70
Central Sales Tax Act, 1944 Sales tax 7.28
Maharashtra Value Added Tax, 2002 Sales tax 776.64
Central Sales Tax Act, 1944 Sales tax 16.26
Maharashtra Value Added Tax, 2002 Sales tax 284.62
Maharashtra Value Added Tax, 2002 Sales tax 455.70
Central Sales Tax Act, 1944 Sales tax 15.56
Income tax Act, 1961 Income tax 2.35
Income tax Act, 1961 Income tax 3.41
Income tax Act, 1961 Income tax 37.64
Income tax Act, 1961 Income tax 17.11
Finance Act,1994 Service Tax, 31,350.04
penalties and interest
Name of Statue Amount Period to which
the amount Forum where dispute
paid
under
relates is pending
Protest
(Rs. in
lakhs)
Central Sales Tax
Act, 1994 - Financial Year
2005-06 Joint Commissioner
of sales tax
(Appeals)
Maharashtra Value
Adde Tax,2002 - Financial Year
2005-06 Joint Commissioner
of sales tax
(Appeals)
Central Sales Tax
Act, 1944 - Financial Year
2007-08 Deputy Commissioner
of sales tax
(Appeals)
Maharashtra Value,
Added Tax, 2002 - Financial Year
2007-08 Deputy Commissioner
of sales tax
(Appeals)
Central Sales Tax
Act, 1944 2.00 Financial Year
2008-09 Joint Commissioner
of sales tax
(Appeals)
Maharashtra Value
Added Tax, 2002 15.00 Financial Year
2008-09 Joint Commissioner
of sales tax
(Appeals)
Maharastra Value
Added Tax, 2002 - Financial Year
2009-10 Deputy Commissioner
of sales tax
(Appeals)
Cental sales Tax
Act, 1944 - Financial Year
2009-10 Deputy Commissioner
of sales tax
(Appeals)
Income Tax act,
1961 - Assessment Year
2002-03 Commissioner of
Income Tax (Appeals)
Income Tax Act,
1961 - Assessment Year
2003-04 Commissioner of
Income Tax (Appeals)
Income Tax Act,
1961 - Assessment Year
2004-05 High Court
Income Tax Act,
1961 - Assessment Year
2012-13 Commissioner of
Income Tax (Appeals)
Finance Act,
1994 1,000.00 Financial Year
2009-10 to CESTAT
2013-14
(viii)The Company has not defaulted in repayment of loans or borrowings
to any bank or financial institution or government during the year. The
Company did not have any outstanding debentures during the year.
(ix) The Company did not raise moneys by way of initial public offer or
further public offer (including debt instruments). In our opinion, the
term loans were applied for the purpose for which the loans were
obtained.
(x) No fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the period covered by our
audit.
(xi) Managerial remuneration has been provided by the Company in
accordance with the requisite approvals mandated by the provisions of
Section 197 of the Act read with Schedule V to the Act.
(xii)In our opinion, the Company is not a Nidhi Company. Accordingly,
provisions of clause 3(xii) of the Order are not applicable.
(xiii)In our opinion, all transactions with the related parties are in
compliance with Sections 177 and 188 of Act, where applicable, and the
requisite details have been disclosed in the financial statements, as
required by the applicable accounting standards.
(xiv)During the year, the Company has made preferential allotment. In
respect of the same, in our opinion, the Company has complied with the
requirement of Section 42 of the Act and the Rules framed thereunder.
(xv) In our opinion, the Company has not entered into any non-cash
transactions with the directors or persons connected with them covered
under Section 192 of the Act.
(xvi)The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934.
For Walker Chandiok & Co LLP
(Formerly Walker, Chandiok & Co)
Chartered Accountants
Firm''s Registration No.: 001076N/N500013
per Adi P. Sethna
Place : Mumbai Partner
Date : 27 May 2016 Membership No.: 108840
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Eros International Media Limited ("the Company"), which comprise the
Balance Sheet as at 31 March 2015, the Statement of Profit and Loss,
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 STANDALONE FINANCIAL STATEMENTS
2. 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 standalone 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 the Companies(Accounts) Rules, 2014 (as amended). This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act; safeguarding the assets of
the Company; preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were 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
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. 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.
5. 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 standalone financial
statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the 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 financial controls 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 the 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.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
OPINION
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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 31 March 2015, and its profit and its cash
flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
9. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
10. As required by Section143(3) of the Act, we 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 it appears from our examination of those
books;
c. the Balance Sheet, the 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 standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as
amended);
e. on the basis of the written representations received from the
directors as on 31 March 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section164(2) of the
Act;
f. with respect to the 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. as detailed in Note 21 to the standalone financial statements, the
Company has disclosed the impact of pending litigations on its
standalone financial position;
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 the Independent Auditor's Report
of even date to the members of Eros International Media Limited, on the
financial statements for the year ended 31 March 2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(ii) (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of 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 no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) The Company has granted unsecured loans to companies and firms
covered in the register maintained under Section 189 of the Act; and
with respect to the same:
(a) the principal amounts are repayable on demand and since the
repayment of such loans has not been demanded, in our opinion, receipt
of the principal amount is regular; and
(b) there is no overdue amount in respect of loans granted to such
companies and firms.
(iv) In our opinion, certain items purchased are of a specialized
nature for which suitable alternative sources do not exist for
comparative quotations. However, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business for the purchase of content, related consumables and fixed
assets and for the sale of fixed assets, services and film rights.
During the course of our audit, no major weakness has been noticed in
the internal control system in respect of these areas.
(v) The Company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)
Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of
the Order are not applicable.
(vi) To the best of our knowledge and belief, the Central Government
has not specified maintenance of cost records under sub-section (1) of
Section 148 of the Act, in respect of Company's products/ services.
Accordingly, the provisions of clause 3(vi) of the Order are not
applicable.
(vii) (a) Except for undisputed statutory dues in respect of income tax
and service tax, the Company is generally regular in depositing
undisputed statutory dues including provident fund, employees' state
insurance, duty of customs, duty of excise, value added tax, cess and
other material statutory dues, as applicable with the appropriate
authorities. Undisputed amounts payable in respect thereof, which were
outstanding at the year-end for a period of more than six months from
the date they became payable are as follows:
Name of the statute Nature of the Amount
dues (Rs. in lakhs)
Finance Act, 1994 Service tax** 152.51
Period to which the Due Date Date of Payment
amount relates
Financial Year 2010-11 Various dates Unpaid
** The Finance Act, 2010 levied service tax on temporary transfer of
copyright in the period 1 July 2010 to 30 June 2012. In 2011, the
Company filed a writ petition in Mumbai High Court challenging the
constitutionally and the legality of this entry and received ad-interim
protection and accordingly, no amounts were provided for by the Company
for the period 1 April 2011 to 30 June 2012.
(b) Dues outstanding in respect of income-tax, wealth tax, service tax,
duty of customs, duty of excise, value added tax and cess on account of
any dispute, are as follows:
Name of the Nature of Amount Amount Paid
statute dues (Rs. in lakhs) Under Protest
(Rs. in lakhs)
Central Sales Tax Sales tax 28.63 -
Act, 1944
Maharashtra Value Sales tax 285.06 -
Added Tax, 2002
Income tax Act, 1961 Income tax 6.67 -
Income tax Act, 1961 Income tax 36.75 -
Name of the Period to which the Forum where dispute is
statute amount relates pending
Central Sales Tax Financial Year Joint Commissioner of
Act, 1944 2005-06 and 2008-09 sales tax (Appeals)
Maharashtra Value Financial Year Joint Commissioner of
Added Tax, 2002 2005-06 and 2008-09 sales tax (Appeals)
Income tax Act, 1961 Assessment Year Commissioner of Income
2002-03 to 2004-05 Tax (Appeals)
Income tax Act, 1961 Assessment Year High Court
2004-05
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder. Accordingly, the provisions of clause 3(vii)(c)
of the Order are not applicable.
(viii) In our opinion, the Company has no accumulated losses at the end
of the financial year and it has not incurred cash losses in the
current and the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year
(x) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prims facie, prejudicial to the interest of the
Company.
(xi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xii) As per the information and explanations given by the management,
no material fraud on or by the Company has been noticed or reported
during the period covered by our audit.
For Walker Chandiok & Co LLP
(formerly known as Walker, Chandiok & Co)
Chartered Accountants
Firm Registration No: 001076N/N500013
per Adi P. Sethna
Partner
Membership No: 108840
Place : Mumbai
Date : 29 May 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Eros
International Media Limited, ("the Company"), which comprise the
Balance Sheet as at 31 March 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
2. The Company''s 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 principles generally accepted in India
including the Accounting Standards notified under the Companies Act,
1956 ("the Act") read with the General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the 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.
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
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 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 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.
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 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
ii) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
iii) 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
7. 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.
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 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 financial statements dealt with by this report are in agreement
with the books of account;
d. in our opinion, the financial statements comply with the Accounting
Standards notified under the Companies Act, 1956 read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the directors,
as on 31 March 2014 and taken on record by the Board of Directors, none
of the directors is disqualified as on 31 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 Independent Auditors'' Report of even date to the
members of Eros International Media Limited on the financial statements
for the year ended 31 March 2014
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(c) In our opinion, a substantial part of fixed assets has not been
disposed of during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of 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 no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to six parties
covered in the register maintained under Section 301 of the Act. The
maximum amount outstanding during the year is Rs. 5,141.79 lacs and the
year-end balance is Rs. 3,775.52 lacs.
(b) In respect of interest free loans granted, the principal amounts
are repayable on demand, hence, we are unable to comment as to whether
the terms and conditions are prejudicial to the interest of the
Company.
(c) In respect of interest free loans granted, the principal amounts
are repayable on demand and since the repayment of such loans has not
been demanded, in our opinion, receipt of the principal amount is
regular.
(d) There is no overdue amount in respect of loans granted to such
companies or firms.
(e) The Company has taken unsecured loans from parties covered in the
register maintained under Section 301 of the Act. The maximum amount
outstanding during the year is Rs. 3,456.12 lacs and the year-end
balance is Rs. 1,256.17 lacs.
(f) In our opinion, for interest bearing loans, though terms of
repayment have not been stipulated, rate of interest are not prima
facie, prejudicial to the interest of the Company. In respect of
interest free loans taken, the principal amounts are repayable on
demand, hence, we are unable to comment as to whether the terms and
conditions are prejudicial to the interest of the Company.
(g) In respect of loans taken, the principal amounts are repayable on
demand and since the repayment of such loans has not been demanded, in
our opinion, payment of the principal amount is regular.
(iv) In our opinion, certain items purchased are of a specialized
nature for which suitable alternative sources do not exist for
obtaining comparative quotations. However, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business for purchase of content, related consumables
and for the sale of fixed assets, services and film rights. During the
course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) Owing to the unique and specialized nature of the items involved
and in the absence of any comparable prices, we are unable to comment
as to whether the transactions made in pursuance of such contracts or
arrangements have been made at the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of Section 209 of the Act, in respect of Company''s
products or services. Accordingly, the provisions of clause 4(viii) of
the Order are not applicable.
(ix) (a) Except for undisputed dues in respect of sales tax, income tax
and service tax, the Company is generally regular in depositing
undisputed statutory dues including provident fund, profession tax,
investor education and protection fund, employees'' state insurance,
wealth tax, custom duty, excise duty, cess and other material statutory
dues, as applicable, with the appropriate authorities. Undisputed
amounts which were outstanding at the year-end for a period of more
than six months from the date they became payable are as follows:
Name of the statute Nature of the Amount Period to which
dues (Rs. in lacs) the amount
relates
Maharashtra Value Sales tax on 2,566.02 Financial Year
Added Tax Act, 2002 sale/ lease of 2006-07 to
copyrights* 2011-12
Finance Act, 1994 Service Tax** 152.51 Financial Year
2010-2011
Income tax Act, 1961 Tax deducted 0.29 Financial Year
at source 2013-2014
Name of the statute Due Date Date of
Payment
Maharashtra Value Various dates Unpaid
Added Tax Act, 2002
Finance Act, 1994 Various dates Unpaid
Income tax Act, 1961 Various dates Unpaid
*The Company is of the opinion that there are no grounds for levying
VAT on film distribution activity and the levy has been challenged by
the entire film fraternity. This amount is inclusive of all unpaid VAT
amounts, including those on theatrical distribution, which have not
been provided for by the Company.
**The Finance Act 2010 levied service tax on temporary transfer of
copyright in the period 1 July 2010 to 30 June 2012. In 2011, the
Company filed a writ petition in Mumbai High Court challenging the
constitutionality and the legality of this entry and received
ad-interim protection and accordingly, no amounts were provided for by
the Company for the period 1 April 2011 to 30 June 2012.
(b) The dues outstanding in respect of sales-tax, income-tax, custom
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of the statute Nature of Amount Period to which the
the dues (Rs. in lacs) amount relates
Income tax Act, 1961 Income tax 53.04 Assessment Year
2002-03 to 2004-05
Income tax Act, 1961 Income tax 146.92 Assessment Year
2010-11
Central Sales Tax Sales tax 0.16 Financial Year
Act, 1944 2004-05
Bombay Sales Tax Sales tax 71.51 Financial Year
Act, 1959 2004-05
Name of the statute Forum where
dispute is pending
Income tax Act, 1961 Appellate Tribunal
Income tax Act, 1961 Rectification
application u/s
154 to Assistant
Commissioner
Central Sales Tax Deputy
Act, 1944 Commissioner of
Sales tax (Appeals)
Bombay Sales Tax Deputy
Act, 1959 Commissioner of
Sales tax (Appeals)
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and the
immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) The Company is not a chit fund or a nidhi/ mutual benefit fund/
society. Accordingly, provisions of clause 4(xiii) of the Order are not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks are not, prima
facie, prejudicial to the interest of the Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii)In our opinion, no funds raised on short- term basis have been
used for long-term investment by the Company.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, no material
fraud on or by the Company has been noticed or reported during the
period covered by our audit.
For Walker Chandiok & Co LLP
(formerly known as Walker, Chandiok & Co)
Chartered Accountants
Firm Registration No.: 001076N
per Khushroo B. Panthaky
Partner
Membership No.: F - 42423
Place : Mumbai
Date : 29 May 2014
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
1. We have audited the accompanying financial statements of Eros
International Media Limited, ("the Company"), which comprise the
Balance Sheet as at 31 March 2013, 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
2. 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 principles generally accepted in India, including 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.
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
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 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.
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 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013;
ii) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
iii) 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
7. 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.
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 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 financial statements dealt with by this report are in agreement
with the books of account;
d. in our opinion, the financial statements comply with the Accounting
Standards referred to in sub- section (3C) of Section 211 of the Act;
and
e. on the basis of written representations received from the
directors, as on 31 March 2013 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexure to the Independent Auditors'' Report of even date to the
members of Eros International Media Limited on the financial statements
for the year ended 31 March 2013
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification.
In our opinion, the frequency of verification of the fixed assets is
reasonable having regard to the size of the Company and the nature of
its assets.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of 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 no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) (a) The Company has granted interest free advances to ten parties
covered in the register maintained under Section 301 of the Act. The
maximum amount outstanding during the year is Rs. 7,111.29 lacs and the
year-end balance is Rs. 5,292.48 lacs.
(b) In our opinion, the terms and conditions of such interest free
advances are not, prima facie, prejudicial to the interest of the
Company.
(c) The above interest free advances would be adjusted on the purchase
of film rights or on completion of films as applicable, and in
accordance with the terms and conditions stipulated in the agreement.
(d) The above interest free advances given by the Company, would be
adjusted, on the purchase of film rights or on completion of films, as
applicable, and therefore there are no amounts overdue in respect of
advances as at the year end. Accordingly, the provisions of clause
4(iii)(d) of the Order are not applicable.
(e) The Company has taken interest free advances from three parties
covered under the register maintained under Section 301 of the Act. The
maximum amount outstanding during the year is Rs. 881.77 lacs and the
year-end balance is Rs. 334.34 lacs.
(f) In our opinion, the terms and conditions of interest free advances
taken by the Company are not, prima facie, prejudicial to the interest
of the Company.
(g) Interest free advances would be adjusted against sale of film
rights or on completion of films as applicable in accordance with the
terms and conditions stipulated in the agreement.
(iv) In our opinion certain items purchased are of a special nature for
which suitable alternative sources do not exist for obtaining
comparative quotations. However there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) Owing to the unique and specialized nature of the items involved
and in the absence of any comparable prices, we are unable to comment
as to whether the transactions made in pursuance of such contracts or
arrangements have been made at the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) To the best of our knowledge and belief, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of Section 209 of the Act, in respect of Company''s
products/ services. Accordingly, the provisions of clause 4(viii) of
the Order are not applicable.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance,
income-tax, sales- tax, wealth-tax, service-tax, custom duty, excise
duty, cess and other material statutory dues, as applicable, have not
been regularly deposited with the appropriate authorities and there
have been significant delays in a large number of cases. Undisputed
amounts payable in respect thereof. which were outstanding at the
year-end for a period of more than six months from the date they became
payable are as follows:
Name of Nature of Amount
the statute the dues (Rs. inlacs)
Maharashtra Value Added
Tax Act, 2002 Value Added 148.00
Tax (Gross)
Maharashtra Value Added
Tax Act, 2002 Value Added 808.87
Tax (Gross) *
Maharashtra Value Added
Tax Act, 2002 Value Added 603.40
Tax (Gross) *
Maharashtra Value Added
Tax Act, 2002 Value Added 411.82
Tax (Gross)
Maharashtra Value Added
Tax Act, 2002 Value Added 378.85
Tax (Gross)
Maharashtra Value Added
Tax Act, 2002 Value Added 200.08
Tax (Gross)
Income Tax Act, 1956 Advance Tax 1,612.80
Finance Act, 1994 Service Tax 152.51
Finance Act, 1994 Service Tax 0.06
Finance Act, 1994 Service Tax 1.74
Finance Act, 1994 Service Tax 0.30
Finance Act, 1994 Service Tax 1.40
Finance Act, 1994 Service Tax 1.12
Finance Act, 1994 Service Tax 0.20
Finance Act, 1994 Service Tax 0.25
Name Period to
which the Due Date of
amount
relates Date Payment
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2011-12 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2010-11 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2009-10 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2008-09 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2007-08 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2006-07 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2012-13 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2010-2011 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2007-2008 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2005-2006 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2004-2005 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2003-2004 dates
Maharashtra Value Added
Tax Act, 2002 Financial Year Various Unpaid
2002-2003 dates
Finance Act, 1994 Financial Year Various Unpaid
2001-2002 dates
Finance Act, 1994 Financial Year Various Unpaid
2000-2001 dates
* In line with film industry consensus, the Company is of the opinion
that there are no grounds for levying VAT on film distribution activity
and hence no provision is made in the books of accounts for these
years. The same is disclosed as
contingent liability under Notes to Accounts.
(b) The dues outstanding in respect of sales-tax, income-tax, custom
duty, wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of Nature Amount the
statute of dues (Rs. in lacs)
Income Tax Act, 1961 Income tax 47.26
Income Tax Act, 1961 Income tax 3.41
Income Tax Act, 1961 Income tax 2.36
Central Sales Tax
Act, 1944 Sales tax 0.16
Bombay Sales Tax Act,
1959 Sales tax 71.51
Name Period to which the Forum where dispute
amount relates is pending
Income Tax Act, 1961 Assessment Year 2004-05 Appellate Tribunal
Income Tax Act, 1961 Assessment Year 2003-04 Appellate Tribunal
Income Tax Act, 1961 Assessment Year 2002-03 Appellate Tribunal
Income Tax Act, 1961 Financial Year 2004-05 Deputy Commissioner
of Sales tax (Appeals)
Income Tax Act, 1961 Financial Year 2004-05 Deputy Commissioner
of Sales tax (Appeals)
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues
to any financial institution or a bank or to debenture-holders during
the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, provisions of clause 4(xiii)
of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii)In our opinion, no funds raised on short-term basis have been
used for long-term investment by the Company.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per Khushroo B. Panthaky
Partner
Membership No.: F-42423
Mumbai
30 May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Eros International
Media Limited ('the Company'), as at 31 March 2012, and also the
Statement of Profit and Loss and the Cash Flow Statement for the year
ended on that date annexed thereto (collectively referred as the
'financial statements'). 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 ('the
Order') (as amended) issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Companies Act, 1956 ('the
Act') , we enclose in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to above, 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 financial statements dealt with by this report are in agreement
with the books of account;
(d) On the basis of written representations received from the
Directors, as on 31 March 2012 and taken on record by the Board of
Directors, none of the Directors are disQualified as on 31 March 2012
from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(e) In our opinion and to the best of our information and according to
the explanations given to us, the financial statements dealt with by
this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Act and 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, in the case of:
(i) the Balance Sheet, of the state of affairs of the Company as at 31
March 2012;
(ii) the Statement of Profit and Loss, of the Profit for the year ended
on that date; and
(iii) the Cash Flow Statement, of the cash flows for the year ended on
that date.
ANNEXURE TO THE AUDITOR'S REPORT of even date to the members of Eros
International Media Limited, on the financial statements for the year
ended 31 March 2012 Based on the audit procedures performed for the
purpose of reporting a true and fair view on the financial statements of
the Company and taking into consideration the information and
explanations given to us and the books of account and other records
examined by us in the normal course of audit we report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion the frequency of verification of the fixed
assets is reasonable having regard to the size of the Company and the
nature of its assets
(c) In our opinion a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of inventory
at reasonable intervals during the year except stocks lying with third
parties. For stocks lying with third parties at the year-end written
confirmations have been obtained by the management.
(b) The procedures of 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 no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted interest free advances to nine
parties covered in the register maintained under Section 301 of the
Act. The maximum amount outstanding during the year is Rs. 975,041,737
and the year-end balance is Rs. 338,072,454.
(b) In our opinion the terms and conditions of such interest free
advances are not prima facie prejudicial to the interest of the
Company.
(c) The above interest free advances would be adjusted on the purchase
of film rights or on completion of films as applicable in accordance with
the terms and conditions stipulated in the agreements.
(d) The above interest free advances given by the Company would be
adjusted on the purchase of film rights or on completion of films as
applicable and therefore there are no amounts overdue in respect of
such advances as at the year end. Accordingly the provisions of the
clause 4(iii)(d) of the Order are not applicable.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly the provisions of clauses
4(iii)(f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion certain items purchased are of a special nature for
which suitable alternative sources do not exist for obtaining
comparative quotations. However there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the sale
of goods and services. During the course of our audit no major weakness
has been noticed in the internal control system in respect of these
areas.
(v) (a) In our opinion the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
(b) Owing to the unique and specialised nature of the items involved
and in the absence of any comparable prices we are unable to comment as
to whether the transactions made in pursuance of such contracts or
arrangements have been made at prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules 1975. Accordingly the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) To the best of our knowledge and belief the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of Section 209 of the Act in respect of Company's
products/ services. Accordingly the provisions of clause 4(viii) of the
Order are not applicable.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income-tax,
sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess and
other material statutory dues, as applicable, have not been regularly
deposited with the appropriate authorities and there have been
significant delays in a large number of cases. Undisputed amounts
payable in respect thereof which were outstanding at the year-end for a
period of more than six months from the date they became payable are as
follows:
Name of the statute Nature of the Amount Period to which the
dues (Rs.) amount relates
Maharashtra Value Value Added Tax 20,008,275 Financial Year 2006-07
Added Tax Act 2002 (Gross)
Maharashtra Value Value Added Tax 37,885,034 Financial Year 2007-08
Added Tax Act 2002 (Gross)
Maharashtra Value Value Added Tax 41,181,933 Financial Year 2008-09
Added Tax Act 2002 (Gross)
Maharashtra Value Value Added Tax 19,571,429 Financial Year 2011-12
Added Tax Act 2002 (Gross)
Maharashtra Value Value Added Tax 60,339,793 Financial Year 2009-10
Added Tax Act 2002 (Gross) *
Maharashtra Value Value Added Tax 80,886,688 Financial Year 2010-11
Added Tax Act 2002 (Gross) *
Maharashtra Value Value Added Tax 714,709 Financial Year 2011-12
Added Tax Act 2002 (Gross) *
Income Tax Act 1956 Advance tax 111,740,609 Financial Year 2011-12
Finance Act 1994 Service Tax 24,942 Financial Year 2000-01
Finance Act 1994 Service Tax 19,839 Financial Year 2001-02
Finance Act 1994 Service Tax 111,864 Financial Year 2002-03
Finance Act 1994 Service Tax 140,359 Financial Year 2003-04
Finance Act 1994 Service Tax 29,805 Financial Year 2004-05
Finance Act 1994 Service Tax 173,869 Financial Year 2005-06
Finance Act 1994 Service Tax 6,381 Financial Year 2007-08
Finance Act 1994 Service Tax 15,251,487 Financial Year 2010-11
Name of the Statue Due Date Date of
Payment
Maharashtra Value
Added Tax Act 2002 Various dates Unpaid
Maharashtra Value
Added Tax Act 2002 Various dates Unpaid
Maharashtra Value
Added Tax Act 2002 Various dates Unpaid
Maharashtra Value
Added Tax Act 2002 Various dates Unpaid
Maharashtra Value
Added Tax Act 2002 Various dates Unpaid
Maharashtra Value
Added Tax Act 2002 Various dates Unpaid
Maharashtra Value
Added Tax Act 2002 Various dates Unpaid
Income Tax Act 1956 15 June 2011 and Unpaid
Finance Act 1994 15 September 2011
Various dates Unpaid
Finance Act 1994 Various dates Unpaid
Finance Act 1994 Various dates Unpaid
Finance Act 1994 Various dates Unpaid
Finance Act 1994 Various dates Unpaid
Finance Act 1994 Various dates Unpaid
Finance Act 1994 Various dates Unpaid
Finance Act 1994 Various dates Unpaid
* In line with film industry consensus the Company is of the opinion
that there are no grounds for levying VAT on film distribution activity
and hence no provision is made in the books of accounts for these
years. The same is disclosed as contingent liability under Notes to
Accounts.
The liability for the current year shown under contingent liability is
upto 30 April 2011 as with effect from 1 May 2011 MVAT liability on
copyrights excludes those for distribution and exhibition of
cinematographic films in theatres and cinema halls.
(b) The dues outstanding in respect of sales-tax, income-tax, custom
duty ,wealth-tax, excise duty, cess on account of any dispute, are as
follows:
Name of the
statute Nature of Amount Period to which the
dues (Rs.) amount relates
Income Tax
Act 1961 Income tax 4,726,197 Assessment Year 2004-05
Central Sales
Tax Act Sales tax 16,344 Financial Year 2004-05
1944
Bombay Sales
Tax Act Sales tax 7,151,245 Financial Year 2004-05
1959
Central Sales
Tax Act Sales tax 1,645,507 Financial Year 2003-04
1944
Name of Statue Forum where dispute is
pending
Income Tax Act 1961 Appellate Tribunal
Central Sales Tax Act
1944 Deputy Commissioner of Sales
tax (Appeals)
Bombay Sales Tax Act
1959 Deputy Commissioner of Sales
tax (Appeals)
Central Sales Tax Act
1944 Deputy Commissioner of Sales
tax (Appeals)
Name of the
statute Nature of Amount Period to which the
dues (Rs.) amount relates
Bombay Sales
Tax Act Sales tax 40,579,952 Financial Year 2003-04
1959
Central Sales
Tax Act Sales tax 766,924 Financial Year 2002-03
1944
Bombay Sales
Tax Act Sales tax 42,528,039 Financial Year 2002-03
1959
Central Sales
Tax Act Sales tax 241,015 Financial Year 2001-02
1944
Bombay Sales
Tax Act Sales tax 40,320,786 Financial Year 2001-02
1959
Bombay Sales
Tax Act Sales tax 33,852,642 Financial Year 2000-01
1959
Name of Statue Forum where dispute is
pending
Bombay Sales
Tax Act Deputy Commissioner of Sales
1959 tax (Appeals)
Central Sales Tax Deputy Commissioner of Sales
Act 1944 tax (Appeals)
Bombay Sales
Tax Act Deputy Commissioner of Sales
1959 tax (Appeals)
Central Sales Tax Deputy Commissioner of Sales
Act 1944 tax (Appeals)
Bombay Sales
Tax Act Deputy Commissioner of Sales
1959 tax (Appeals)
Central Sales Tax Deputy Commissioner of Sales
Act 1944 tax (Appeals)
(x) In our opinion, the Company has no accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues
to a financial institution or a bank or debenture-holders during the
year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker Chandiok & Co
Chartered Accountants
Firm Registration No.: 001076N
per Khushroo B. Panthaky
Partner
Membership No: F-42423
Place: Mumbai
Date: 26 May 2012