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Auditor Report of Midvalley Entertainment Ltd.

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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