Mar 31, 2015
1. We have audited the accompanying financial statements of M/s
GradientInfotainments Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015 and the Statement of Profit and Loss
and Cash Flow Statement for the year ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
('the act') with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with rule 7 of
Companies (Accounts) Rules, 2014. This responsibility includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; design, implementation
and maintenance of adequate internal financial controls, that are
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
3 Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement
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 financial control relevant
to the Company's preparation of the financial statements, that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
Directors, 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
Basis of Qualified opinion
6.The balance of trade payables of Rs.8216.04 lakhs , Trade receivables
of Rs.9643.16 lakhs and loans and advances Rs.1372.63 lakhs are subject
to confirmation. We have not received any confirmations though
management has circulated the balance confirmation letters.
Qualified Opinion
7. In our opinion and to the best of our information and according to
the explanations given to us, expect for the effects of the matters
described in the qualifies opinion paragraph ,the financial statements
give the information required by the Act in the manner so accepted in
India of the state of affairs of the Company as at 31st March 2015, its
Profit for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7 As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
8 As required by section 143(3) of the Act, we further report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss dealt with by this
Report are in agreement with the books of account;
d. In our opinion, the aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act ;
f. In our opinion and to the best of our information and according to
the explanations given to us,
We report as under with respect to other matters to be included in the
Auditor's Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014:
(i) The Company does not have any pending litigations which would
impact its financial position
(ii) The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise
(iii)There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure referred to in paragraph 7 of Our Report of even date
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i).(a) The Company has not maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) Substantial portion of fixed assets have been physically verified
by the management during the year at reasonable intervals and following
material discrepancy between book records and physical inventory was
noticed and properly dealt with in books of accounts.
Capital work in progress amounting to Rs.203.98 lakhs stands duly
adjusted as described in Pt no.6 forming part of notes to accounts
(ii)The physical verification of inventory is not applicable to the
company due to its nature of business. As at the date of reporting the
company does not have any physical inventory.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets and for the sale of services. Further, on the
basis of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
(v) The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
(vi) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
sub-section (1) of Section 148 of the Act.
(vii) (a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is not
regular in depositing the service tax The outstanding liability of
service tax due for more than 6 months as on the need of financial year
is Rs. 37,53,382/-.Further, the Company did not comply to the statutory
requirement of prompt deduction and remittance of Tax at source on
applicable instances. The provisions of Customs, Provident fund,
Employees State Insurance Act are not presently applicable to the
Company.
(b) According to the information and explanations given to us and based
on the records of the company examined by us there are statutory dues
of earlier years payable in respect of Tax deducted at source being
Rs.2,04,04,578/-, in respect of service tax being Rs.8,57,57,579/-, in
respect of FBT being Rs.2,61,180/- and in respect of income tax payable
being Rs.5,53,36,908/-.
(c) According to the information and explanations given to us there is
no instance of requirement to transfer any sums to the Investor
Education and Protection Fund.
(viii) The Company has accumulated losses of Rs.27,88,65,432/- as at
31.03.2015, being more than 50% of its net worth. The Company has
incurred cash profit for the current financial year under audit and
cash loss for the preceding financial year.
(ix) According to the records of the company examined by us and as per
the information and explanations given to us, the company has defaulted
in repayment of dues to banks to the extent of Rs.40,40,870/- as per
books of accounts, comprising of Rs.36,14,500/- dues to Andhra Bank and
Rs.4,26,370/- dues to Indian Bank, as described in Pt no.2 forming part
of notes to accounts.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from a
bank or financial institution during the year
(xi) According to the information and explanations given to us, the
company has not raised any term loans during the year
(xii) In our opinion and according to the information and explanation
given to us, considering the size and nature of the Company's
operations, no fraud of material significance on or by the Company has
been noticed or reported during the year.
For CRK & Co,
Chartered Accountants
FRN: 010388S
Place: Hyderabad Sd/-
Date : 14.11.2015 C.R.Kumar
Proprietor
Mar 31, 2014
We have audited the accompanying financial statements of Gradiente
Infotainment Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis of Qualified Opinion
The balances of Trade payables of Rs. 7,802 Lakhs, Trade receivables of
Rs. 9,093 Lakhs, Loans and advances of Rs. 1372 Lakhs are subject to
confirmation and reconciliation. We have circularized confirmation
letters for obtaining balances however we did not receive the
confirmations.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matters
described in the Qualified opinion paragraph, the financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books [and proper returns adequate for the purposes of our audit have
been received from branches not visited by us]
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. Except for effects of the matters described in the basis of the
qualified opinion paragraph in our opinion, the Balance Sheet,
Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956. 31st
MARCH 2014 (Referred to in paragraph 3 of the Auditor's Report to the
Members of Gradiente Infotainment Limited on the financial statements
for the year ended 31st March, 2014)
(i) (a) The Company has not maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) The Substantial portion of the fixed assets has been verified
physically verified by the Management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed. In our opinion the frequency of verification is
reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) The physical verification of inventory is not applicable to the
company due to its nature of business.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any Loans, secured or unsecured to the
Companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(b) According to the information and explanations given to us, the
Company has taken unsecured loans from the parties covered under the
register maintained under Sec 301 of the companies Act, 1956 and the
outstanding amount as on 31/03/2014 is Rs. 3,20,70,450/- and the same
is obtained without interest during the year.
(iv) In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to fixed assets and with regard to the production income.
Further, on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have been informed of any instance of major weaknesses in the
aforesaid internal control procedures.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year, have been made at prices which
are reasonable having regard to prevailing market prices, except in the
case of items stated to be of specialized nature for which as informed
there are no alternate sources of supply to enable a comparison of the
prices paid / charged.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company has no internal audit system, which is commensurate
with the size and nature of its business.
(viii)Pursuant to the Rules made by the Central Government, the
maintenance of cost records has not been prescribed under section
209(1) (d) of the Companies Act, 1956.
(ix) (a) According to the information and explanations given to us and
records of the Company examined by us, the undisputed statutory dues
payable in respect of Tax deducted at source is Rs. 2,04, 04,578/-, in
respect of Service tax is Rs. 8,57,57,759/-, in respect of FBT of
earlier years is Rs. 2,61,180/- and in respect of Income tax payable is
Rs. 5,53,36,908/-.
(b) We are informed that there are no disputed statutory dues as at the
year end outstanding for a period of more than six months from the date
they became payable.
(x) The Company has incurred cash losses in the financial year ended on
that date and in the immediately preceeding year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has defaulted in
repayment of dues to banks to the extent of Rs. 40,40,870/- of which
Rs. 36,14,500/- is with Andhra Bank and Rs. 4,26,370/- with Indian
Bank as per the books of accounts.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statute as specified under
paragraph 4(xiii) of the Order are not applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee during the year for loans taken by
others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the company has not availed any term loan during the year
hence this clause not applicable.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we report that
short-term funds have not been used to finance long-term investments
and vice- versa.
(xviii) As the Company has not made any preferential allotment of
shares during the year paragraph 4 (xviii) of the Order is not
applicable, however the company has received preferential share
application money of Rs 20,00,000/- and the same is not covered in the
register maintained under Sec 301 of the Companies Act, 1956.
(xix) As the Company has not issued any debentures during the year,
paragraph 4(xix) of the Order is not applicable.
(xx) As the Company has not raised money by way of public issue
paragraph 4 (xx) of the Order is not applicable.
(xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that, no fraud on
or by the Company has been noticed or reported during the course of our
audit for the year ended March 31, 2014.
For Komandoor & Co.,
Chartered Accountants
FRN: 01420S
V C R Kumar
Place : Hyderabad Partner
Date : 01-09-2014 Membership No# 204289
Mar 31, 2013
To the Members of Gradiente Infotainment Limited Report on the Financial Statements
We have audited the accompanying financial statements of Gradiente Infotainment Limited ("the Company"), which comprise the Balance Sheet as at March 31, 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
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;
(b) In the case of the Profit and Loss Account, of the profit/ loss for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books [and proper returns adequate for the purposes of our audit have been received from branches not visited by us]
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account [and with the returns received from branches not visited by us]31;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
(Referred to in paragraph 3 of the Auditor''s Report to the Members of Gradients Infotainment Limited on the financial statements for the year ended 31st March, 2013)
(i) (a) The Company has not maintained proper records to show full particulars including quantitative details and situation of fixed assets.
(b) The Substantial portion of the fixed assets has been verified physically verified by the Management during the year and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed off by the Company during the year.
(ii) The physical verification of inventory is not applicable to the company due to its nature of business.
(iii) (a) According to the information and explanations given to us, the Company has not granted any Loans, secured or unsecured to the Companies covered in the register maintained under section 301 of the Companies Act, 1956.
(b) According to the information and explanations given to us, the Company has taken unsecured loans from the parties covered under the register maintained under Sec 301 of the companies Act, 1956 and the outstanding amount as on 31/03/2013 is Rs. 3,09,65,259/- and the interest is paid at the rate of 14% which is not prejudicial to the interests of the company.
(iv) In our opinion and according to the information and explanations given to us, there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to fixed assets and with regard to the production income. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instance of major weaknesses in the aforesaid internal control procedures.
(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956 have been entered.
(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year, have been made at prices which are reasonable having regard to prevailing market prices, except in the case of items stated to be of specialized nature for which as informed there are no alternate sources of supply to enable a comparison of the prices paid / charged.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company has no internal audit system, which is commensurate with the size and nature of its business.
(viii) Pursuant to the Rules made by the Central Government, the maintenance of cost records has not been prescribed under section 209(1) (d) of the Companies Act, 1956.
(ix) (a) According to the information and explanations given to us and records of the Company examined by us, the
undisputed statutory dues payable in respect of Tax deducted at source is Rs. 2,03, 00,737/-, in respect of Service tax is Rs. 8,47,73,151/-, in respect of FBT of earlier years is Rs. 2,61,180/- and in respect of Income tax payable is Rs. 5,53,36,908/-.
(b) We are informed that there are no disputed statutory dues as at the yearend outstanding for a period of more than six months from the date they became payable.
(x) The Company has no accumulated losses as at March 31, 2013 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.
(xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has defaulted in repayment of dues to banks to the extent of Rs. 40,40,870/- of which Rs. 36,14,500/- is with Andhra Bank and Rs. 4,26,370/- with Indian Bank as per the books of accounts.
(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute as specified under paragraph 4(xiii) of the Order are not applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments.
(xv) According to the information and explanations given to us, the Company has not given any guarantee during the year for loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations given to us, the company has not availed any term loan during the year hence this clause not applicable.
(xvii) According to the information and explanations given to us and on overall examination of the balance sheet of the Company, we report that short-term funds have not been used to finance long-term investments and vice-versa.
(xviii) As the Company has not made any preferential allotment of shares during the year paragraph 4 (xviii) of the Order is not applicable, however the company has received preferential share application money and the same is not covered in the register maintained under Sec 301 of the Companies Act, 1956.
(xix) As the Company has not issued any debentures during the year, paragraph 4(xix) of the Order is not applicable.
(xx) As the Company has not raised money by way of public issue paragraph 4 (xx) of the Order is not applicable.
(xxi) Based on the audit procedures performed and information and explanations given to us by the management, we report that, no fraud on or by the Company has been noticed or reported during the course of our audit for the year ended March 31, 2013.
For Komandoor & Co.,
Chartered Accountants
FRN:01420S
Komandoor Mohan Acharya
Place : Hyderabad Partner
Date: Membership No# 029082
Mar 31, 2012
1. We have audited the attached Balance Sheet of Gradiente
Infotainment as at March 31, 2012, and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto, which we have signed under reference to this report. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted the 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 the management, as well as evaluating the overall financial
statement presentation. We believe that the audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(the 'Order'), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of 'The Companies Act, 1956' of India
(the 'Act') and on the basis of such checks of the books and records of
the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order, to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act 1956;
(f) Provision of cess under Section 441A of the Companies Act 1956
The companies Act has not notified above provision hence no provision
for cess under section 441 A of the Companies Act 1956 and the Central
Government has not specified the manner of payment of cess.
(g) Regarding Sundry Debtors / Sundry Creditors / Loans and Advances
and Bank Balances
Sundry Debtors, Sundry Creditors, Loans and advances and Bank balances
are subject to confirmation by the parties. There are services provided
to SEZ unit under other media Rs. 17.61 Lakhs on which Service Tax
Liability is not recognized as the services to SEZ are exempted under
service tax.
(h) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act and give a true and fair
view, subject to our comments and reservations, 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 March 31, 2012;
(ii) In the case of the Profit and Loss Account, 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.
(Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Gradiente Infotainment Limited on the financial statements
for the year ended March 31, 2012
1. a) The Company is not maintaining proper records showing full
particulars including quantitative details and
situation of fixed assets.
b) A Substantial Portion of the fixed assets of the Company are
physically verified by the Management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed. In our opinion the frequency of verification is
reasonable.
c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in
the register maintained under Section 301 of the Act. Accordingly,
clauses (iii) (b) to (iii) (d) of paragraph 4 of the Order are not
applicable to the Company for the current year.
b) The Company has taken loans, secured or unsecured, from companies,
firms or other parties covered in the register maintained under Section
301 of the Act. Accordingly, clauses (iii) (f) and (iii) (g) of
paragraph 4 of the Order are applicable to the Company for the current
year as company failed to repay regular instalments.
3. In our opinion and according to the information and explanations
given to us, the company has failed to have an adequate internal
control system commensurate with the size of the Company and the nature
of its business for the purchase of fixed assets and for the sale of
services. Further, on the basis of our examination of the books and
records of the Company, carried out in accordance with the auditing
standards generally accepted in India and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing effort to correct major weaknesses in the
aforesaid internal control system.
4. According to the information and explanations given to us, there
are no contracts or arrangements referred to in Section 301 of the Act
that need to be entered in the register maintained under that section.
As there are no contracts or arrangements referred to in Section 301 of
the Act, clause (v) (b) of paragraph 4 of the Order is not applicable
to the Company for the current year.
5. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Act and the rules framed
there under.
6. In our opinion, the Company has failed to appoint an internal audit
system commensurate with its size and nature of its business.
7. The Central Government of India has not prescribed the maintenance
of cost records under clause (d) of sub- section (1) of Section 209 of
the Act for any of the products of the Company.
8. a) According to the information and explanations given to us and
the records of the Company examined by us, in
our opinion, the Company has failed regular in depositing undisputed
statutory dues including, income-tax, wealth tax, service tax, customs
duty, cess and other material statutory dues as applicable to it. As
informed to us, investor education and protection fund, employees'
state insurance, provident fund, sales tax and excise duty are not
applicable to the Company for the current year. Company has failed to
file Service Tax Returns and Income Tax Returns
Tax Particulars Cumulative Amount (Rs.)
Service Tax 8,45,14,637
TDS 1,97,75,909
FBT of Earlier Years 2,61,180
Earlier Year Provisions 4,97,57,486
Provision for Tax 55,79,422
b) According to the information and explanations given to us and the
records of the Company examined by us, there are dues of income tax,
wealth tax, service tax, customs duty and cess as at March 31, 2012,
which have not been deposited till date.
9. The company has no accumulated losses as at March 31, 2012 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
10. According to the records of the Company examined by us and the
information and explanations given to us, the Company has defaulted in
repayment of dues to banks as at the balance sheet date.
11. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
12. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
Company.
13. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
14. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
15. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
16. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short-term
basis, which have been used for long-term investment.
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management during the
year.
21. The Clause (ii) of paragraph 4 regarding inventory of the Order,
is not applicable in the case of the Company for the year, since in our
opinion there are no matters which arise to be reported in the
aforesaid order.
For Komandoor & Co.
Chartered Accountants
Sd/-
K Mohanacharya
Date: 01-09-2012 Partner
Place : Hyderabad M.No. 029082 F. No. 001420S
Mar 31, 2011
1. We have audited the attached Balance Sheet of Gradiente
Infotainment as at March 31, 2011, and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto, which we have signed under reference to this report. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 the 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 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the 'Order'), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of 'The Companies Act, 1956'
of India (the 'Act') and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order, to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
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 Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f) Provision of cess under Section 441A of the Companies Act 1956 The
companies Act has not notified above provision hence no provision for
cess under section 441 A of the Companies Act 1956 and the Central
Government has not specified the manner of payment of cess.
(g) Regarding Sundry Debtors / Sundry Creditors / Loans and Advances
and Bank Balances Sundry Debtors, Sundry Creditors, Loans and advances
and Bank balances are subject to confirmation by the parties.
(h) Change in Accounting Estimate
The company has committed error by over claiming depreciation on fixed
assets in earlier years due to change in method of depreciation. The
company has identified the error in estimates and revised the
depreciation amounts and assets values following written down value
method as stipulated under schedule XIV of the companies Act, 1956. The
revisions were accounted for prospectively as a change in accounting
estimates and as a result the income has been increased by Rs
19,78,233/-
(i) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act 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 March 31, 2011.
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
(Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Gradiente Infotainment Limited on the financial statements
for the year ended March 31, 2011
1. a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets of the Company are physically verified by the
Management according to a phased program designed to cover all the
items once in a period of three years, which in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. Pursuant to the program, the fixed asset has been
physically verified by the Management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed. The Policy of Depreciation of the company is WDV.
c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, clauses (iii)(b) to (iii)(d)
of paragraph 4 of the Order are not applicable to the Company for the
current year.
b) 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, clauses (iii) (f) and (iii)
(g) of paragraph 4 of the Order are not applicable to the Company for
the current year.
3. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of fixed assets and for the sale of services. Further, on the
basis of our examination of the books and records of the Company,
carried out in accordance with the auditing standards generally
accepted in India and according to the information and explanations
given to us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
4. According to the information and explanations given to us, there
are no contracts or arrangements referred to in Section 301 of the Act
that need to be entered in the register maintained under that section.
As there are no contracts or arrangements referred to in Section 301 of
the Act, clause (v) (b) of paragraph 4 of the Order is not applicable
to the Company for the current year.
5. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Act and the rules framed
there under.
6. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
7. The Central Government of India has not prescribed the maintenance
of cost records under clause (d) of sub- section (1) of Section 209 of
the Act for any of the products of the Company.
8. a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally not regular in depositing undisputed statutory dues
including, income-tax, wealth tax, service tax, customs duty, cess and
other material statutory dues as applicable to it. As informed to us,
investor education and protection fund, employees' state insurance,
provident fund, sales tax and excise duty are not applicable to the
Company for the current year.
Tax Particulars Amount (Rs)
TDS 1,32,88,815.00
Service Tax 5,01,88,805.00
FBT of Earlier Years 2,61,180.00
Earlier Year Provisions 1,03,71,630.00
Provisions for Tax 3,93,85,856.44
b) According to the information and explanations given to us and the
records of the Company examined by us, there are dues of income tax,
wealth tax, service tax, customs duty and cess as at March 31, 2011,
which have not been deposited till date.
9. The company has no accumulated losses as at March 31, 2011 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
10. According to the records of the Company examined by us and the
information and explanations given to us, the Company has defaulted in
repayment of dues to banks as at the balance sheet date.
11. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
12. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
Company.
13. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
14. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
15. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
16. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short-term
basis, which have been used for long-term investment.
17. The Company has made preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Act during the year.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud by the Company, noticed or reported during the year, nor
have we been informed of any such case by the Management.
21. The Clause (ii) of paragraph 4 regarding inventory of the Order,
is not applicable in the case of the Company for the year, since in our
opinion there are no matters which arise to be reported in the
aforesaid order.
Date: 30-08-2011 For Komandoor & Co.
Place : Hyderabad Chartered Accountants
Sd/-
K Mohanacharya
Partner
M.No. 029082 F. No. 001420S
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