Mar 31, 2014
We have audited the accompanying financial statements of M/S. MIDVALLEY
ENTERTAINMENT LIMITED, which comprise the Balance Sheet as at 31st
March, 2014, and the Statement of Profit and Loss for the period
01.05.2013 to 31.03.2014, 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.
Auditors'' 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,
aswell as evaluating the overall presentation of the financial
statements.
Basis of Adverse Opinion :-
1. The company has maintained records showing full particulars
including quantitative details and situation of Fixed Assets. However,
the fixed asset register is yet to be updated.
2. According to the records of the Company, the company is not regular
in depositing undisputed statutory dues including Income tax deducted
at source, Cess and other statutory dues with the appropriate
authorities. The company has to pay the income tax & Fringe Benefit tax
for the years March''2006, March 2007, 2008, 2009 & 2010 amounting to
Rs.36,42,653/-, Rs.5,75,40,364/-, Rs.3,51,17,320/- Rs.47,76,704/- and
Rs.77,66,000/- & FBT Rs.1,65,000/- (excluding interest), TDS of
Rs.9,90,1254/- , ESI, PF & Professional Tax of Rs.1,33,849/-
respectively. According to the information and explanation given to us
disputed Income Tax amounting to Rs.91.71 lacs/- is outstanding as at
31st March 2014 out of which company had paid Rs.30 lakhs under
protest, in respect of which the company has made an appeal with the
CIT (appeals).
3. In the absence of confirmation of parties balances relating to
sundry debtors, loans and advances,the recoverability of such amounts
appear to be in doubt ,in respect of which no provision has been made
by the company and the consequent effect on the accounts of the
company, the profits, the value of the assets and liabilities of the
company which is not determinable.
4. The company has not transacted any business during the year and
hence raise serious doubts as to the company being a "going concern".
However, the accounts have been prepared on a going concern basis.
5. The company has not provided for gratuity on actuarial valuation
basis.
6. The company has not filed its income tax return for the A.Y.
2010-2011, 2011-2012, 2012-2013 & 2013-2014.
Adverse Opinion
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit 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 subject to Note 1(g),
20 (c) and basis of adverse opinion para 1 to 6 enumerated above 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 31th March, 2014;
b) in the case of the Profit and Loss Account, of the Loss for the
period 01.05.2013 to 31.03.2014;
c) in the case of the cash flow statement, for the period 01.05.2013 to
31.03.2014;
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
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in subsection(3C) of
section 211 of the Companies Act, 1956 subject to Note 1 (g), 20 (c)
and basis of adverse opinion para 1 to6 enumerated above;
e) On the basis of written representations received from the directors
as on31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(Referred to in paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our Report of even date)
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. a) The company has maintained records showing full particulars
including quantitative details and situation of Fixed Assets. However,
the fixed assets register is yet to be updated.
b) We are informed that the Management at reasonable intervals has
physically verified the Fixed Assets of the Company and that no
material discrepancies were noticed on such verification.
c) No substantial part of fixed assets have been disposed off during
the year.
2. a) The stocks of Movies, Serials and Programmes have been
physically verified at reasonable intervals by the management.
b) The procedures of physical verification of inventories 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 are noticed on such physical verification.
3. a) The Company has granted interest free advances to parties
covered in the register maintained under section 301 of the companies
Act, 1956. (No of Parties 3 - 33,98,242).These advances have been made
without stipulations as to repayment of Principal.
b) The Company has taken unsecured loans without any stipulation as to
the repayment of principal and interest to parties covered in the
register maintained under section 301 of the companies Act, 1956. (No
of Party - 1 - Rs.87,86,143)
C) In respect of other advances made by the company we are unable to
comment on the recoverability of the same.
4. In view of the fact that there have been no purchases/ sales made
during the year no comments are offered with regard to the internal
controls on purchases / sales.
5. a) The particulars of contracts referred to in section 301 of the
Act have been entered in the register required to be maintained under
that section.
b) According to the information and explanations given to us, there
were no transactions of purchase of Film Rights and Distribution Rights
made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956, and
aggregating Rs.5 Lacs or more during the year
6. The company has not accepted any deposits from the public. The
provisions of sections 58 A & 58 AA of the companies Act, 1956, and the
Rules framed there under is not applicable.
7. In our opinion, the company has no separate internal audit system.
However the existing Internal Control measures are commensurate with
its size and nature of its business.
8. The central government has not prescribed the maintenance of cost
records u/s.209 (1) (d) of the Companies Act, 1956 to the company.
9. a) According to the records of the Company, the company is not
regular in depositing undisputed statutory dues including Income tax
deducted at source, Sales tax, Customs duty, Cess and other statutory
dues with the appropriate authorities. The company has to pay the
income tax & Fringe Benefit tax for the years March''2006, March 2007,
2008, 2009 & 2010 amounting to Rs.36,42,653/-, Rs.5,75,40,364/-,
Rs.3,51,17,320/- Rs.47,76,704/- and Rs.77,66,000/- & FBT Rs.1,65,000/-
(excluding interest) &TDS of Rs.9,90,1254/-, ESI, PF & Professional Tax
of Rs.1,33,849/- respectively. According to the information and
explanation given to us disputed Income Tax amounting to Rs.91.71
lacs/- is outstanding as at 31st March 2014 out of which company had
paid Rs.30 lakhs under protest, in respect of which the company has
made an appeal with the CIT (appeals).
10. The Company has accumulated losses of Rs.14,95,45,051/- at the end
of the financial year. The Company has incurred cash loss of Rs.
61,64,422/- (56,78,313/- )in the current financial year under report.
11. The Company has not defaulted in repayment of dues to Banks during
the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company has not given any guarantee for loans taken by others
from Bank or financial institutions.
14. The company has not obtained any term loans during the year.
15. As per the records of the company, no funds were raised on short
term basis and used for long term investment and vice versa.
16. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
17. The Company has not issued any debentures, so creation of
securities in respect of debentures does not arise.
18. The company has not raised any money by public issues during the
period covered by our audit report.
19. According to the information and explanations furnished to us, no
fraud has been noticed or reported during the year.
For Venkatesh & Co.,
Chartered Accountants
F.R.No. 004636S
(Sd/-)
Place: Chennai CA .Dasaraty. V
Date : 29.05.2014 M.NO.26336
Partner
Apr 30, 2013
Report on Financial Statements
We have audited the accompanying financial statements of M/S. MIDVALLEY
ENTERTAINMENT LIMITED, which comprise the Balance Sheet as at 30th
April, 2013, and the Statement of Profit and Loss for the period
01.06.2012 to 30.04.2013, 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. Auditors'' 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 uy management, as
well as evaluating the overall presentation of the financial
statements.
Basis of Adverse Opinion:-
1. The company has maintained records showing full particulars
including quantitative details and situation of Fixed Assets. However,
the fixed asst register is yet to be updated.
2. According to the records of the Company, the company is not regular
in depositing undisputed statutory dues including Income tax deducted
at source, Sales tax, Customs duty, Cess and other statutory dues with
the appropriate authorities. The company has to pay the income tax &
Fringe Benefit tax for the years March''2006, March 2007, 2008, 2009 &
2010 amounting to Rs.36,42,653/-, Rs.5,75,40,364/-, Rs.3,51,17,320/-
Rs.47,76,704/- and Rs.77,66,000/- & FBT Rs. 1,65,000/- (excluding
interest), TDS of Rs.8,80,126/-, ESI, PF & Professional Tax of Rs.
1,33,849/- respectively. According to the information and explanation
given to us disputed Income Tax amounting to Rs.91.71 lacs/- is
outstanding as at 30th April 2013 out of which company had paid Rs.30
lakhs under protest, in respect of which the company has made an appeal
with the CIT (appeals).
3. In the absence of confirmation of parties balances ,the
recoverability of such amounts appear to be in doubt in respect of
which no provision has been made and the consequent effect on the
accounts of the company, the profits, the value of the assets and
liabilities of the company which is not determinable.
4. The company has not transacted any business during the year and
hence raise serious doubts as to the company being a "going concern".
However, the accounts have been prepared on a going concern basis.
5. The company has not provided for gratuity on actuarial valuation
basis.
6. The company has not filed its income tax return for the A.Y.
2010-2011, 2011-2012 & 2012-2013.
Adverse Opinion
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit 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 subject to Note 1
(g), 5.1, 11.1, 13.1 and basis of adverse opinion para 1 to 6
enumerated above give a true and fair view in conformity with the
accounting principles the generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th April, 2013;
b) in the case of the Profit and Loss Account, of the profit for the
period 01.06.2012 to 30.04.2013;
c) in the case of the cash flow statement, for the period 01.06.2012 to
30.04.2013;
Report on Other Legal and Regulatory Requirements:-
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") 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
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in subsection(3C) of
section 211 of the Companies Act, 1956 subject to Note 1 (g), 5.1,
11.1, 13.1 and basis of adverse opinion para 1 to 6 enumerated above;
e) On the basis of written representations received from the directors
as on 30th April, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 30th April, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to Independent Auditors'' Report
(Referred to in paragraph 1 under the heading of "Report on other Legal
and
Regulatory Requirements" of our Report of even date) On the basis of
such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit,
we report that:
1. a) The company has maintained records showing full particulars
including quantitative details and situation of Fixed Assets. However,
the fixed assets register is yet to be updated.
b)We are informed that the Management at reasonable intervals has
physically verified the Fixed Assets of the Company and that no
material discrepancies were noticed on such verification.
c) No substantial part of fixed assets have been disposed off during
the year.
2. a) The stocks of Movies, Serials and Programmes have been
physically verified at reasonable intervals by the management.
b) The procedures of physical verification of inventories 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 are noticed on such physical verification.
3. a) The Company has not granted any loans to parties covered in the
register maintained under section 301 of the companies Act, 1956.
b) The Company has taken unsecured loans without any stipulation as to
the repayment of principal and interest to parties covered in the
register maintained under section 301 of the companies Act, 1956. (No
of Party - 1 - Rs.86,01,823 Lakhs)
4. In our opinion and according to the information and explanations
given to us there are adequate .internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of Movies, Serials and Programmes
including plant and machinery, equipment and other assets and with
regard to the sale of Movies, Serials and Programmes. No instances of
continuing failure to correct major weaknesses in Internal Control were
noticed.
5. a) The particulars of contracts referred to in section 301 of the
Act have been entered in the register required to be maintained under
that section.
b) According to the information and explanations given to us, there
were no transactions of purchase of Film Rights and Distribution Rights
made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956, and
aggregating Rs.5 Lacs or more during the year
6. The company has not accepted any deposits from the public. The
provisions of sections 58 A & 58 AA of the companies Act, 1956, and the
Rules framed there under is not applicable.
7. In our opinion, the company has no separate internal audit system.
However the existing Internal Control measures are commensurate with
its size and nature of its business.
8. The central government has not prescribed the maintenance of cost
records u/s.209 (1) (d) of the Companies Act, 1956 to the company.
9. a) According to the records of the Company, the company is regular
in depositing undisputed statutory dues including Income tax deducted
at source, Sales tax, Customs duty, Cess and other statutory dues with
the appropriate authorities. The company has to pay the income tax &
Fringe Benefit tax for the years March''2006, March 2007, 2008, 2009 &
2010 amounting to Rs. 36,42,653/-, Rs.5,75,40,364/-, Rs.3,51,17,320/-
Rs.47,76,704/- and Rs.77,66,000/- & FBT Rs.1,65,000/- (excluding
interest) & TDS of Rs. 9,90,1254/-, ESI, PF & Professional Tax of Rs.
1,33,849/- respectively. According to the information and explanation
given to us disputed Income Tax amounting to Rs.91.71 lacs/- is
outstanding as at 30th April 2010 out of which company had paid Rs.30
lakhs under protest, in respect of which the company has made an appeal
with the CIT (appeals).
10. The Company has accumulated losses of Rs.8,82,14,398/- at the end
of the financial year. The Company has incurred cash loss of
Rs.56,78,313/- (18,73,50,925)/- in the current financial year under
report.
11. The Company has not defaulted in repayment of dues to Banks during
the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company has not given any guarantee for loans taken by others
from Bank or financial institutions.
14. The company has not obtained any term loans during the year.
15. As per the records of the company, no funds were raised on short
term basis and used for long term investment and vice versa.
16. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
17. The Company has not issued any debentures, so creation of
securities in respect of debentures does not arise.
18. The company has not raised money any money by public issues during
the period covered by our audit report.
19. According to the information and explanations furnished to us, no
fraud has been noticed or reported during the year.
For Venkatesh & Co.,
Chartered Accountants
F.R.No. 004636S
(Sd/-)
Place: Chennai CA .Dasaraty
Date : 01.10.2013 M.NO.26336
Partner
May 31, 2012
(1) We have audited the attached Balance Sheet of M/s. Midvalley
entertainment Limited as at 31st May 2012, and the Profit and Loss
Account for the period ended from 01.05.2011 to 31.05.2012 on that date
annexed thereto. 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 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 misstatements. An audit
includes, examining on a test basis, evidence to support the financial
statement amounts and disclosures in the financial statement, assessing
the accounting principles used in the preparation of financial
statements, assessing significant estimates made by management in the
preparation of financial statements and evaluating 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
issued by the Company Law Board in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to in paragraph 3
above, we state 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 such
books.
c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the books of account.
d) In our opinion, the Profit and Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in Subsection (3C) of
Section 211 of the Companies Act, 1956. Subject to non-provision for
accrued gratuity liability, bonus and leave encashment in accordance
with As-15 on Employee Benefits in the financial statements of the
employer issued by the Institute Of Chartered Accountants Of India.
e) On the basis of written representation received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors is
f) disqualified as on 31st May 2012 from being appointed as a director
in terms of clause (g) of subsection (1) of section 274 of the
Companies Act, 1956.
g) (1) The Company has not transacted any business for the last two
quarters of the financial year. However, the accounts have been drawn
on a going concern basis.
(2) Attention of the members is drawn to note no 17 (II) (g) regarding
the write off of sundry debtors amounting to Rs. 19,31,35,673/-. (3) In
our opinion and to the best of our information and according to the
explanations given to us, the said financial statement read together
with the schedules & notes there on, subject to our comment in para (d)
above and note no. f &j of Schedule -17 on confirmation of parties
balances and consequent effect on the accounts of the company, the
profits, the value of the assets and liabilities of the company which
is not determinable, give the information required by the Companies Act
1956, in the manner so required & gives a true and fair view in
conformity with the accounting principles accepted in India:
(i) in so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st May 2012 and
(ii) in so far as it relates to the Profit and Loss Account of the LOSS
of the Company for the period ended on that date.
(iii)In the case of the cash flow statement, of the cash flows for the
year ended on the date.
(Referred to in paragraph 3 of our Report of even date)
In terms of the information and explanation given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under:
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets. However, the fixed assets register is yet to be updated.
b) We are informed that the Management at reasonable intervals has
physically verified the. Fixed Assets of the Company. No material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets have been disposed off during
the year.
2. a) The stocks of Movies, Serials and Programmes have been
physically verified at reasonable intervals by the management.
b) The procedures of physical verification of inventories 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 are noticed on such physical verification.
3. a) The Company has not granted any loans to parties covered in the
register maintained under section 301 of the companies Act, 1956.
b) The Company has taken unsecured loans without any stipulation as to
the repayment of principal and interest to parties covered in the
register maintained under section 301 of the companies Act, 1956.( No.
of Party - 1 -Rs. 71.28 Lakhs)
4. In ojor opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business with regard
to purchase of Movies, Serials and Programmes including plant and
machinery, equipment and other assets and with regard to the sale of
Movies, Serials and Programmes. No instances of continuing failure to
correct major weaknesses in Internal Control were noticed.
5. a) The particulars of contracts referred to in section 301 of the
Act have been entered in the register required to be maintained under
that section.
b) According to the information and explanations given to us, there
were no transactions of purchase of Film Rights and Distribution Rights
made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956, and
aggregating Rs.5 Lacs or more during the year
6. The company has not accepted any deposits from the public. The
provisions of sections 58 A & 58 AA of the companies Act, 1956, and the
Rules framed there under is not applicable.
7. In our opinion, the company has no separate internal audit system.
However the existing Internal Control measures are commensurate with
its size and nature of its business.
8. The central government has not prescribed the maintenance of cost
records u/s.209 (1) (d) of the Companies Act, 1956 to the company.
9. a) According to the records of the Company, the company is regular
in depositing undisputed statutory dues including Income tax deducted
at source, Sales tax, Customs duty, Cess and other statutory dues with
the appropriate authorities. The company has to pay the income tax &
Fringe Benefit tax for the years March''2006, March 2007, 2008, 2009 &
2010 amounting to Rs.36,42,653/-, Rs.5,75,40,364/-, Rs.3,51,17,320/-
Rs.47,76,704/- and Rs.77,66,000/- & FBT Rs. 1,65,000/- (excluding
interest) & TDS of Rs.8,12,584/- respectively. According to the
information and explanation given to us disputed Income Tax amounting
to Rs.91.71 lacs/- is outstanding as at 30th April 2010 out of which
company had paid Rs.30 lakhs under protest, in respect of which the
company has made an appeal with the CIT (appeals).
10. The Company has no accumulated losses at the end of the financial
year. The Company has incurred cash losses of Rs. 18,73,50,925/-in the
financial year under report.
11. The Company has not defaulted in repayment of dues to Banks during
the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company has not given any guarantee for loans taken by others
from Bank or financial institutions. *
14. The company has not obtained any term loans during the year.
15. As per the records of the company, no funds were raised on short
term basis and used for long term investment and vice versa.
16. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
17. The Company has not issued any debentures, so creation of
securities in respect of debentures does not arise.
18. The company has not raised any money by Public Issue during the
period covered by our audit report.
19. According to the information and explanations furnished to us, no
fraud has been noticed or reported during the year.
Venkatesh & Co.,
Chartered Accountants
F.R.NO.004636S
(Sd/-)
Place: Chennai CA Dasaraty V
Date: 27/12/2012 Partner
M.No.26336
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