Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Balaji Telefilms Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
5. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorsâ judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
9. We draw your attention to Note 30.12 to the financial statements which states that during the year ended March 31, 2018, the composite Scheme of Arrangement and Amalgamation between the Company and two of its subsidiaries (the âSchemeâ) was approved by the National Company Law Tribunal and subsequently filed with the relevant regulatory authorities and has become effective thereafter. The figures disclosed in the Financial Statement for the year ended March 31, 2017 have been adjusted to give effect to the Scheme. Our opinion is not qualified in respect of this matter.
Other Matter
10. The standalone Ind AS financial statements of the Company for the year ended March 31, 2017, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated May 23, 2017, expressed an unmodified opinion on those standalone Ind AS financial statements. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
11. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act (âthe Orderâ), 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 B a statement on the matters specified in paragraphs 3 and 4 of the Order.
12. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements -Refer Note 30.1.
ii. The Company has long-term contracts as at March 31, 2018 for which there were no material foreseeable losses. The Company did not have any derivative contracts as at March 31, 2018.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Referred to in paragraph 12(f) of the Independent Auditorsâ Report of even date to the members of Balaji Telefilms Limited on the standalone Ind AS financial statements for the year ended March 31, 2018
Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to financial statements of Balaji Telefilms Limited(âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial control swith reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
6. A companyâs internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements
7. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Referred to in paragraph 11 of the Independent Auditorsâ Report of even date to the members of Balaji Telefilms Limited on the standalone Ind AS financial statements for the year ended March 31, 2018
i. (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 have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification. In our opinion, the frequency of verification is reasonable.
(c) The title deeds of immovable properties, as disclosed in Note 4 on Property, plant and equipment to the financial statements, are held in the name of the Company.
ii. The physical verification of inventory has been conducted at reasonable intervals by the Management during the year (Television serials, Films and Internet series produced are verified with reference to the title documents/ agreements). No differences were noticed on physical verification of inventory as compared to book records.
iii. The Company has granted unsecured loans, to one company covered in the register maintained under Section 189 of the Act. There are no firms /LLPs/ other parties covered in the register maintained under Section 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Companyâs interest.
(b) In respect of the aforesaid loans, no schedule for repayment of principal and payment of interest has been stipulated by the Company. Therefore, in absence of stipulation of repayment terms we do not make any comment on the regularity of repayment of principal and payment of interest.
(c) In respect of the aforesaid loans, there is no amount which is overdue for more than ninety days.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. The Central Government of India has not specified the maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the services of the Company.
vii. (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 regular in depositing undisputed statutory dues in respect of provident fund, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory dues, including employeesâ state insurance, income tax, service tax, goods and service tax with effect from July 1, 2017 and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of duty of customs, duty of excise and goods and service tax which have not been deposited on account of any dispute. The particulars of dues of income-tax, sales-tax, service tax, value added taxas at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs. in Lacs) |
Period to which the amount relates |
Forum where the dispute is pending |
The Finance Act, 1994 |
Service Tax |
2,943.00 |
April 2008 to April 2011 |
Commissioner of Service Tax |
The Income Tax Act, 1961 |
Tax Deducted at Source |
218.08 |
2009-10 and 2010-11 |
High Court |
Value Added Tax and Central Sales Tax Act |
Sales Tax and VAT |
145.50 |
2012-13 |
Joint Commissioner of Sales Tax |
viii. As the Company does not have any loans or borrowings from any financial institution or bank or Government, nor has it issued any debentures as at the balance sheet date. Therefore provisions of Clause 3(viii) of the Order are not applicable to the Company.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. 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 or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS)24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has made a private placement of shares during the year under review, in compliance with the requirements of Section 42 of the Act. The amounts raised have been used for the purpose for which funds were raised.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Mehul Desai
Mumbai Partner
Date: May 19, 2018 Membership Number: 103211
Mar 31, 2017
To
The Members of Balaji Telefilms Limited
REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of Balaji Telefilms Limited (the Company), which comprise the Balance Sheet as at March 31, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity, for the year then ended and a summary of the significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section 1 34(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 standalone Ind AS financial statements based on our audit.
In conducting 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143(3) of the Act, based on our audit and on the consideration of the
reports of the branch auditors and other auditors on the separate financial statements/ financial information of the branches and joint operations, referred to in the Other Matters paragraph above we report, to the extent applicable 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 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company, the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements -Refer Note 27.1, 27.2 and 27.3 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the November 8, 2016 of the Ministry of Finance, during the period from November 8, 2016 to December
30, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management. (Refer Note 27.19)
2. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Re: Balaji Telefilms Limited
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (''THE ACT'')
We have audited the internal financial controls over financial reporting of Balaji Telefilms Limited (the Company) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Re: Balaji Telefilms Limited
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of buildings which are freehold, are held in the name of the Company as at the Balance Sheet date.
(ii) As explained to us, the nature of the inventories of the Company are such that clause (ii) of paragraph 3 of the Order is not applicable to the Company.
(iii) According to the information and explanations given to us, the Company has granted unsecured loans aggregating '' 20,824.04 lacs to its two wholly owned subsidiaries and to one subsidiary body corporate amounting to '' 70.97 lacs covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company''s interest.
b) The principal and interest amounts are repayable on demand. Interest is overdue as at the year-end.
c) In respect of the interest overdue for a period of more than ninety days as at the year-end aggregating '' 1,925.50 lacs, as explained to us, the management has taken reasonable steps for recovery of the same.
(iv) I n our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of making investments as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. Therefore, the clause (v) of the Order is not applicable.
(vi) Having regard to the nature of the Company''s business / activities, reporting under clause (vi) of the Order regarding maintenance of cost records is not applicable to the Company.
(vii) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues including Provident fund, Employees'' State Insurance, Income-tax, Sales-tax, Service Tax, Customs duty, Excise duty, Value Added Tax, cess and any other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident fund, Employees'' State Insurance, Income-tax, Sales-tax, Service Tax, Customs duty, Excise duty, Value Added Tax, cess and any other material statutory dues in arrears, as at March 31, 2017 for a period of more than six months from the date they became payable.
(viii) I n our opinion and according to the information and explanations given to us, the Company does not have any borrowings from the banks, financial institutions and debenture holders. Hence reporting under clause (viii) of the Order is not applicable.
(c) Details of dues of Income Tax, Sales Tax, Customs Duty and Excise Duty which have not been deposited as on March 31, 2017 on account of disputes are given below:
(Rupees in Lacs)
Name of Statute |
Nature of dues |
Amount |
Period to which the amount relates |
Forum where dispute is pending |
Chapter V of The Finance Act, 1994 |
Service Tax |
2,943.00 |
1.4.2006 to 31.3.2010 |
Office of the Commissioner of Service Tax |
(ix) I n our opinion and according to the information and explanations given to us, the Company has not raised monies by way of initial public offer or further public offer (including debt instruments) and has not taken any term loans during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) I n our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) I n our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) I n our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm''s Registration No. 117366W/W-100018)
Ketan Vora
Partner
(Membership No. 100459)
Mumbai,
dated: May 23, 2017
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Balaji Telefilms Limited (the Company), which comprise the Balance
Sheet as at March 31,2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect to
the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the 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 standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31,2015, its profit and its cash flows for the year ended on
that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 (the
Order) issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 it appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on March 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 23.1 and
23.2 and 23.3 to the financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(ii) The activities of the Company and the nature of its business do
not involve the use of inventory (i.e. goods). Accordingly clause (ii)
of paragraph 3 of the Order is not applicable.
(iii) The Company has granted interest free unsecured loans aggregating
Rs. 10,559.12 lacs to its two wholly owned subsidiaries and interest
bearing unsecured loan to one subsidiary body corporate amounting to
Rs. 438.12 lacs covered in the register maintained under section 189 of
the Companies Act, 2013.
(a) The principal amounts are repayable on demand. In respect of
interest due on loan given to one subsidiary body corporate the same is
overdue as at the year-end.
(b) In respect of overdue interest amounts of over Rs. 1 lac remaining
outstanding as at the year-end, as explained to us, the management has
taken reasonable steps for recovery of the same.
(iv) 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. During the
course of our audit we have not observed any major weakness in such
internal control system.
(v) The Company has not accepted deposits from the public during the
year.
(vi) According to the information and explanations given to us, in our
opinion, the Company has, prima facie, made and maintained the
prescribed cost records pursuant to the Companies (Cost records and
audit) Rules, 2014, as amended by the Central Government under
subsection (1) of Section 148 of the Companies Act,2013. We, however,
have not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(vii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues including Provident fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth-tax, Service Tax, Customs duty, Excise
duty, Value Added Tax, cess and any other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth-tax,
Service Tax, Customs duty, Excise duty, Value Added Tax, cess and any
other material statutory dues in arrears, as at March 31,2015 for a
period of more than six months from the date they became payable.
(c) Details of dues of Sales Tax and Excise Duty which have not been
deposited as on March 31,2015 on account of disputes are given below:
Name of Statute Nature of Forum where
dues dispute is pending
Central Sales Tax Act, 1956 CST Department of Sales
Tax
The Finance Act 1994 Service Tax Office of the
Commissioner
of Service Tax
Name of Statute Financial Year to which Amount
amount relates (Rs. in Lacs)
Central Sales Tax Act, 1956 1.4.2000 to 31.3.2004 17,708.81
The Finance Act 1994 1.4.2006 to 31.3.2010 9,245.00
(d) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(viii) The Company has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the current year
and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company does not have any borrowings from any banks,
financial institutions and debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not taken term loans during the year.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company has been noticed or reported during
the year.
For Deloitte Haskins & Sells LLp For Snehal & associates
Chartered Accountants Chartered Accountants
(Firm's Registration No. 117366W/W-100018) (Registration no: 110314W)
A.B. Jani Snehal Shah
Partner Proprietor
(Membership No: 46488) (Membership No: 40016)
Mumbai, Dated: May 20, 2015 Mumbai, Dated: May 20, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Balaji
Telefilms Limited (the Company) which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. 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 the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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 in terms of Section 227(4A) 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 under provisions of 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 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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Act (which continue to be applicable in respect of Section 133 of
the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs);
(e) On the basis of written representations received from the directors
as on 31st March, 2014 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 Section 274(1) (g) of the Act.
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) The nature of the Company''s business/ activities/ results during
the year are such that clauses (xiii) and (xiv) of paragraph 4 of the
Order are not applicable to the Company.
(ii) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified during the year by the
management in accordance with the regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) (a) The inventories (tapes) have been physically verified during
the year by the management. In our opinion, the frequency of
verification is reasonable.
(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 inventories. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iv) (a) The Company has granted interest free unsecured loans
aggregating Rs. 10,796.09 lakhs to its wholly owned subsidiaries (two)
covered in the register maintained under section 301 of the Companies
Act, 1956. At the year-end, the outstanding balances of such loans
aggregated Rs. 11,418.34 lakhs and the maximum amount involved during the
year was Rs. 16,800.29 lakhs.
(b) In our opinion, the terms and conditions of the loan given are not,
prima facie, prejudicial to the interests of the Company.
(c) According to information and explanations given to us, since there
are no repayment schedules with regard to the loans given, clause (iii)
(c) to (d) of paragraph 4 of Companies (Auditor''s Report) Order, 2003
are not applicable to the Company.
(d) 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 Companies Act, 1956. Hence, clause (iii)(e) to
(g) of paragraph 4 of Companies (Auditor''s Report) Order, 2003 is not
applicable to the Company.
(v) 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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in such
internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time where such market prices are available with the Company.
(vii) The Company has not accepted any deposit from the public.
(viii) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
(ix) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records.
(x) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales Tax, Value Added Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax , Value Added Tax, Wealth Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at March 31, 2014 for a period of more than six months from the date
they became payable.
(c) There were no dues of Income-tax, Value Added Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty and Cess which have not been
deposited as on March 31, 2014 on account of disputes, except in case
of service tax which is as detailed below:
Name of
Statute Forum where
dispute is
pending Nature of
dues Amount
Financial Year
to which
(in
lakhs) amount relates
Sales Tax
Act Department
of Sales
Tax VAT 17,708.81 1.4.2000 to
31.3.2004
The
Finance
Act 1994 Office of
the Commis
sioner of
Service Tax 9,245.00
1.4.2006 to
31.3.2010
Service
Tax
(xi) The Company has no accumulated losses as at the end of the year
and it has not incurred cash losses in the current year and in the
immediately preceding financial year.
(xii) According to the information and explanations given to us, the
Company does not have any borrowings from any banks, financial
institutions and debenture holders.
(xiii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiv) 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.
(xv) According to the information and explanations given to us, the
Company has not taken term loans during the year.
(xvi) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have not been
used during the year for long- term investment.
(xvii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
(xviii) According to the information and explanations given to us the
Company has not issued any debentures during the year.
(xix) The Company has not raised any money by way of public issues
during the year.
(xx) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells LLP For Snehal & Associates
Chartered Accountants Chartered Accountants
(Firms Registration
No. 117366W/W-100018) (Firms Registration
No: 110314W)
A.B. Jani Snehal Shah
Partner Proprietor
(Membership No: 46488) (Membership No: 40016)
Mumbai, dated: May 15, 2014 Mumbai, dated: May 15, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Balaji Telefilms
Limited ("the Company") as at March 31, 2012, the Statement of
Profit and Loss and the Cash Flow Statement of the Company for the year
ended on that date, both 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 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the 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
(CARO) issued by the Central Government in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 5 and 6 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 4
above, we report as follows:
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 it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
e) in our opinion and to the best of our information and according to
the explanations given to us, they said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on March 31, 2012 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 Section 274(1)(g) of the
Companies Act, 1956.
RE: BALAJI TELEFILMS LIMITED
(Referred to in Paragraph 3 of our report of even date)
i) Having nature of the Company's activities are such that clauses
(xiii) and (xiv) of paragraph 4 of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company for the year.
ii) a) The Company has maintained proper records showing full
particulars, including quantitative details and
situation of the fixed assets.
b) As per information and explanations given to us, fixed assets have
not been verified by the management during the year. Accordingly, we
are unable to comment on material discrepancies if any, which could
result on completion of the physical verification exercise.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) a) The inventories (tapes) have been physically verified during
the year by the management. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories (tapes)
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 inventories (tapes).
The discrepancies noticed on verification between the physical stocks
and book records were not material.
iv) a) The Company has granted interest free unsecured loans
aggregating Rs. 4,696.78 Lacs to its wholly owned subsidiary covered in
the register maintained under section 301 of the Companies Act, 1956.
At the year- end, the outstanding balances of such loans aggregated Rs.
3,991.67 Lacs and the maximum amount involved during the year was Rs.
5,042.14 Lacs.
b) In our opinion, the terms and conditions of the loan given are not,
prima facie, prejudicial to the interests of the Company.
c) According to information and explanations given to us, since there
are no repayment schedules with regard to the loans given, clause (iii)
(c) to (d) of paragraph 4 of Companies (Auditor's Report) Order, 2003
are not applicable to the Company.
d) 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 Companies Act, 1956. Hence, clause (iii) (e)
to (g) of paragraph 4 of Companies (Auditor's Report) Order, 2003 is
not applicable to the Company.
v) 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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in such
internal control system.
vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a) The particulars of contracts or arrangements referred to Section 301
that needed to be entered in the Register maintained under the said
Section have been so entered.
b) Where each of such transaction is in excess of Rs. 5 Lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time where such market prices are available with the Company.
vii) The Company has not accepted any deposit from the public.
viii)In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
xi) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records.
x) According to the information and explanations given to us in respect
of statutory dues:
a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues applicable to it with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Income-tax,
Value Added Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues in arrears as at March 31, 2012 for a period of
more than six months from the date they became payable.
c) There were no dues of Income-tax, Value Added Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty and Cess which have not been
deposited as on March 31, 2012 on account of disputes, except in case
of service tax which is as detailed below:
Amount Financial Year to which
Forum where
dispute is pending Nature of dues (Rs. in
Lacs) amount relates
Department of
Sales Tax VAT 17,107.87 1.4.2000 to 31.3.2004
Office of the
Commissioner of Service Tax 9,245.00 1.4.2006 to 31.3.2010
Service Tax
xi) The Company has no accumulated losses as at the end of the year and
it has not incurred cash losses in the current year and in the
immediately preceding financial year.
xii) In our opinion and according to the information and explanations
given to us, the Company does not have any borrowings from any banks,
financial institutions and debenture holders.
wxiii) In our opinion, the Company has not granted loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
xiv)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.
xv) In our opinion and according to the information and explanations
given to us, the Company has not taken term loans during the year.
xvi)In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
xvii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
xviii) According to the information and explanations given to us the
Company has not issued any debentures during the year.
xix) The Company has not raised any money by way of public issues
during the year.
xx) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells For Snehal & Associates
Chartered Accountants Chartered Accountants
(Reg. No 117366W) (Reg. No 110314W)
A.B. Jani Snehal Shah
Partner Proprietor
Membership Number: 46488 Membership Number: 40016
Mumbai, dated: May 11, 2012 Mumbai, dated: May
11, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Balaji Telefilms
Limited ("the Company") as at March 31, 2011, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation We believe that our audit provides a reasonable basis for
our opinion
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government 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.
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 section 211 (3C) of the Companies Act, 1956;
and
e) In our opinion and to the best of our information, and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011;
i) in the case of the Profit and Loss Account, of the loss 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
5. On the basis of written representations received from the directors
as on March 31, 2011 taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 2011
from being appointed as a director in terms of section 274(1)(g) of the
Companies Act, 1956
Annexure to the Auditors' Report
Re: Balaji Telefilms Limited
(Referred to in Paragraph 3 of our report of even date)
i) The nature of the Company's activities are such that clauses (xiii)
and (xiv) of paragraph 4 of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company for the year.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets
b) The fixed assets were physically verified during the year by the
Management in accordance with a regular program of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. The Company is in the process of
reconciling the data of physically verified fixed assets with the books
of accounts and records. Accordingly, we are unable to comment on
material discrepancies if any, which could result on completion of the
physical verification exercise
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) a) The inventories (tapes) have been physically verified during
the year by the management. In our opinion, the frequency of
verification is reasonable
b) The procedures of physical verification of inventories (tapes)
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 inventories (tapes).
The discrepancies noticed on verification between the physical stocks
and book records were not material
iv) a) The Company has granted interest free unsecured loans
aggregating Rs. 1,567.44 Lacs to its wholly owned subsidiary covered in
the register maintained under section 301 of the Companies Act, 1956.
At the year-end, the outstanding balances of such loans aggregated Rs.
2,531.36 Lacs and the maximum amount involved during the year was Rs.
4,149.47 Lacs
b) In our opinion, the terms and conditions of the loan given are not,
prima facie, prejudicial to the interests of the Company.
c) According to information and explanations given to us, since there
are no repayment schedules with regard to the loans given, clause (iii)
(c) to (d) of paragraph 4 of Companies (Auditor's Report) Order, 2003
are not applicable to the Company
d) 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 Companies Act, 1956. Hence, clause (iii) (e)
to (g) of paragraph 4 of Companies (Auditor's Report) Order, 2003 is
not applicable to the Company
v) 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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in such
internal control system
vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us
a) The particulars of contracts or arrangements referred to Section 301
that needed to be entered in the Register maintained under the said
Section have been so entered
b) Where each of such transaction is in excess of Rs. 5 Lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time where such market prices are available with the Company.
vii) The Company has not accepted any deposit from the public
viii) In our opinion, the internal audit functions carried out during
the year by firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business
ix) The maintenance of cost records has not been prescribed by the
Central Government under section 209(1)(d) of the Companies Act, 1956
x) According to the information and explanations given to us in respect
of statutory dues
a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities
b) There were no undisputed amounts payable in respect of Income Tax,
Value Added Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues in arrears as at March 31, 2011 for a period of
more than six months from the date they became payable
c) There were no dues of Income Tax, Value Added Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty and Cess which have not been
deposited as on March 31, 2011 on account of disputes, except in case
of service tax which is as detailed below
Forum where
dispute is pending Nature of dues Amount
(Rs. in Lacs) Financial Year to
which amount
relates
Department of
Sales Tax VAT 22,363 1.4.1999 to
31.3.2005
Office of the
Commissioner of
Service Tax Service Tax 9,245 1.4.2006 to
31.3.2010
xi) The Company has no accumulated losses as at the end of the year and
it has not incurred cash losses in the current year and in the
immediately preceding financial year.
xii) In our opinion and according to the information and explanations
given to us, the Company does not have any borrowings from any banks,
financial institutions and debenture holders
xiii) In our opinion, the Company has not granted loans and advances on
the basis of security by way of pledge of shares, debentures and other
securities
xiv) 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
xv) In our opinion and according to the information and explanations
given to us, the Company has not taken term loans during the year.
xvi) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment
xvii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956
xviii) According to the information and explanations given to us the
Company has not issued any debentures during the year.
xix) The Company has not raised any money by way of public issues
during the year.
xx) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells For Snehal & Associates
Chartered Accountants Chartered Accountants
Reg. No117366W Reg. No 110314W
A.B.Jani Snehal Shah
Partner Proprietor
Membership Number: 46488 Membership Number: 40016
Mumbai Mumbai
May 23, 2011 May 23, 2011
Mar 31, 2010
1. We have audited the attached Balance sheet of Balaji Teleflms
Limited ("the Company") as at March 31, 2010, the Proft and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These fnancial statements are the
responsibility of the CompanyÃs management. Our responsibility is to
express an opinion on these fnancial 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
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003 issued
by the Central Government in terms of section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specifed in paragraphs 4 and 5 of the said Order.
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, Proft 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, Proft and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in section 211(3C) of the Companies Act, 1956;
and
e) In our opinion and to the best of our information, and according to
the explanations given to us, the said accounts give theinformation
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance sheet, of the state of affairs of the
Company as at March 31, 2010;
ii) In the case of the Proft and Loss Account, of the proft for the
year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
5. On the basis of written representations received from the directors
as on March 31, 2010 taken on record by the Board of Directors, we
report that none of the directors is disqualifed as on March 31, 2010
from being appointed as a director in terms of section 274(1)(g) of the
Companies Act, 1956
Annexure to The Auditors Report
Re: Balaji Telefilms Limited
(Referred to in Paragraph 3 of our report of even date)
i) The nature of the CompanyÃs activities are such that clauses (xiii)
and (xiv) of paragraph 4 of the Companies (AuditorÃs Report) Order,
2003 are not applicable to the Company for the year.
ii) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fxed
assets.
(b) The fxed assets are in the process of being physically verifed by
the Management in accordance with a regular program of verifcation
which, in our opinion, provides for physical verifcation of all the
fxed assets at reasonable intervals. According to the information and
explanation given to us, material discrepancies, if any, noticed on
such verifcation will be accounted for on completion of the physical
verifcation exercise.
(c) The fxed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fxed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) (a) The inventories (tapes) have been physically verifed during
the year by the management. In our opinion, the frequency of
verifcation is reasonable.
(b) The procedures of physical verifcation of inventories (tapes)
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 inventories (tapes).
The discrepancies noticed on verifcation between the physical stocks
and book records were not material.
iv) (a) The Company has granted interest free unsecured loans
aggregating Rs. 3,453.90 Lacs to its wholly owned subsidiary covered in
the register maintained under section 301 of the Companies Act, 1956.
At the year-end, the outstanding balances of such loans aggregated Rs.
3,593.40 Lacs and the maximum amount involved during the year was Rs.
3,699.40 Lacs.
(b) In our opinion, the terms and conditions of the loan given are not,
prima facie, prejudicial to the interests of the Company.
(c) According to information and explanations given to us, since there
are no repayment schedules with regard to the loans given, clause (iii)
(c) to (d) of paragraph 4 of Companies (AuditorÃs Report) Order, 2003
are not applicable to the Company
(d) The Company has not taken any loans, secured or unsecured from
companies, frms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Hence, clause (iii) (e)
to (g) of paragraph 4 of Companies (AuditorÃs Report) Order, 2003 is
not applicable to the Company
v) 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 with regard
to purchases of inventory, fxed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in such
internal control system.
vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 Lacs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time where such market prices are available with
the Company.
vii) The Company has not accepted any deposit from the public.
viii) In our opinion, the internal audit functions carried out during
the year by frm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
ix) The maintenance of cost records has not been prescribed by the
Central Government under section 209(1)(d) of the Companies Act, 1956.
x) According to the information and explanations given to us in respect
of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employeesà State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Value Added Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues in arrears as at March 31, 2010 for a period of
more than six months from the date they became payable.
(c) There were no dues of Income-tax, Value Added Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty and Cess which have not been
deposited as on March 31, 2010 on account of disputes.
xi) The Company has no accumulated losses as at the end of the year and
it has not incurred cash losses in the current year and in the
immediately preceding fnancial year.
xii) In our opinion and according to the information and explanations
given to us, the Company does not have any borrowings from any banks,
fnancial institutions and debenture holders.
xiii) In our opinion, the Company has not granted loans and advances on
the basis of security by way of pledge of shares, debentures and other
securities.
xiv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or fnancial institutions.
xv) In our opinion and according to the information and explanations
given to us, the Company has not taken term loans during the year.
xvi) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
xvii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
xviii) According to the information and explanations given to us the
Company has not issued any debentures during the year.
xix) The Company has not raised any money by way of public issues
during the year.
xx) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells For Snehal & Associates
Chartered Accountants Chartered Accountants
Reg. No 117366W Reg. No. 110314W
A.B. Jani Snehal Shah
Partner Proprietor
Membership Number: 46488 Membership Number: 40016
Mumbai, Mumbai,
Dated: April 28, 2010 Dated: April 28, 2010
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