Mar 31, 2014
We have audited the accompanying financial statements of BGIL FILMS &
TECHNOLOGIES LIMITED ("the Company" which comprise of the Balance
Sheet as at March 31, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended as on that date annexed
thereto, a summary of 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 referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India subject to confirmation and reconciliation of some of the
accounts as further detailed in note no. 25 of the notes on account,
non-provision for retirement- benefits amounting to Rs. 2.40 lacs as
further detailed in note no. 35, classification of Investments as
detailed in note no. 36 and non-provision for diminution in value of
quoted investments amounting to Rs. 186.35 lacs as further detailed in
note no. 37:
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2014 and;
ii) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date.
iii) In the case of Cash flow statement, of the cash flows for the year
ended on that date.
Report on other Legal & Regulatory Requirements
1. 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 and on the basis of such checks of the books and records of
the company, as we considered appropriate, we enclose in the annexure a
statement on the matters specified in the said Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of account as required by law, have
been kept by the company so far as appears from our examination of
those books.
(c) the Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT Referred to in paragraph 3 of our
report of even date,
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Fixed Assets are physically verified by the management
according to regular programme of periodical verification in phased
manner, which in our opinion, is reasonable having regard to the size
of the company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) During the year, the company has not disposed off any substantial
part of its Fixed Assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) As per information and explanation provided to us by the
management of the company, the Company has not granted loan to any body
corporate listed in the register maintained under section 301 of the
Companies Act, 1956.
(b) As per information and explanation provided to us by the management
of the company, the Company has not taken any loan from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
(c) As per information and explanation provided to us by the management
of the company, the loan granted to the subsidiary company covered in
the register maintained under section 301 of the Act is interest free.
(d) As per information and explanation provided to us by the management
of the company, no specific terms of repayment has been specified in
the case of loan taken/granted to any body corporate listed in the
register maintained under section 301 of the Act, and repayment shall
be made on demand.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, there are no transactions
that need to be entered into the register maintained under section 301
of the Companies Act, 1956.
(vi) The company has not accepted any deposits as defined under
sections 58A of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records have not been prescribed by the Central
Govt. under section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the records of the company, in our opinion the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employee''s state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and any other statutory dues
applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amount payable in respect of provident fund, income
tax, sales tax, customs duty, excise duty, wealth tax, Service Tax and
other material statutory dues which were in arrears for more than six
months from the date they become payable except the following.
Name of the
Statute Nature of Dues Amount Period to which
amount relates
(in Rs.)
Income Tax
Act, 1961 Interest on late
payment of TDS 58,045 01.04.09 to 31.03.14
Income Tax Act,
1961 Late filing of
TDS Returns 77,700 01.07.2012 to 31.03.14
(c) Detail of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and cess which have not been deposited as on
31st March 2014 on account of disputes are given below:
Name of the
Statute Nature of Amount Period
to which Forum where the
Dues (in lacs) amount
relates dispute is
pending
Income Tax Act,
1961 Tax / Interest 14.99 AY 2010-11 DCIT, New Delhi
(x) The company has no accumulated losses as on 31st March 2014 and it
has not incurred any cash losses during the financial period ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
(xiv) The company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans during the current
year.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment and vice-versa.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised money by way of public issues during
the year.
(xxi) Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
For SNMG & Co.
Chartered Accountants
Firm No. 004921N
NEERAJ GUPTA
Place : New Delhi Partner
Date : 29.05.2014 M. No. 087004
Mar 31, 2013
We have audited the attached Balance Sheet of BGIL FILMS & TECHNOLOGIES
LIMITED as at 31st March, 2013 and the statement of Profit and Loss
Account for the year ended on that date annexed thereto and the Cash
Flow Statement for the year ended on that date. 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 and report thereto:
2. As required by the Companies (Auditor''s Report) Order, 2003
(amendment order 2004) issued by the Central Government in terms of
section 227 (4A) of the Companies Act, 1956 and on the basis of such
checks of the books and records of the company, as we considered
appropriate, and in terms of the information and explanations given to
us, we enclose in the annexure a statement on the matters specified in
paragraph 4 and 5 of the said order to the extent applicable to the
company.
3. Further to our comments in 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 purpose of our
audit.
(b) In our opinion, the company as required by law has kept proper
books of account as far as appears from our examination of such books.
(c) The Balance Sheet and statement of Profit & Loss Account dealt with
by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, the statement of Profit & Loss
Account and Cash Flow Statement dealt with by this report, comply with
the Accounting Standards referred in sub - section 3(C) of section 211
of the companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31.03.2013 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31.03.2013 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts together
with the notes appearing in Schedule of Notes, 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 Balance Sheet, of the
state of affairs of the company as at 31st March,2013;
ii) In the case of the statement of Profit and Loss Account, of the
profit for the year ended on that date, and;
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
(i) (a) The company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the Fixed Assets are physically verified by the
management at reasonable intervals in a phased verification programme,
which in our opinion is reasonable having regard to the size of the
company and the nature of its business. No material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed off any part of its
Fixed Assets so as to affect its going concern.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) According to the information and explanations given to us,
the company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties, covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
(v) (a) On the basis of the audit procedures performed by us and
according to the information, explanations and representations given to
us, we are of the opinion that, the transactions in which directors
were interested as contemplated under section 297 and sub-section (6)
of section 299 of the Companies Act, 1956, and which were required to
be entered in the register maintained under section 301 of the
Companies Act, 1956, have so entered.
(b) According to the information and explanations given to us,
transactions exceeding the value of Rs. 5,00,000/- have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) The company has not accepted any deposits as defined under
sections 58A of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975. (vii) In our opinion, the company has an
internal audit system commensurate with the size and nature of its
business.
(viii) According to the information and explanations given to us,
maintenance of cost records have not been prescribed by the Central
Govt. under section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the records of the company, in our opinion the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employee''s state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and any other statutory dues
applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amount payable in respect of income tax, sales tax,
customs duty, wealth tax and excise duty were outstanding as on 31st
March, 2013for a period of more than six months from the date.
(x) The company has no accumulated losses as at 31st March, 2013 and it
has not incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
(xiv) In respect of shares, securities, debentures and other
investments, dealt in or traded by the company, proper records have
been maintained in respect of transactions and contracts, and timely
entries have been made therein.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans during the current
year.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment and vice-versa.
(xviii) According to the information and explanations given to us,
during the period covered by our audit report, the company has not
issued any debentures.
(xix) The company has not raised money by way of public issues during
the year.
(xx) Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
For Sunil K. Choudhary & Co.
Chartered Accountants
(Firm No. 021281N)
Sd/-
PLACE: NEW DELHI (Sunil Kumar Choudhary)
DATED: May 30, 2013 Proprietor
M. No. 5083808
Mar 31, 2012
We have audited the attached Balance Sheet of BGIL FILMS & TECHNOLOGIES
LIMITED as at 31st March, 2012 and the statement of Profit and Loss
Account for the year ended on that date annexed thereto and the Cash
Flow Statement for the year ended on that date. 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 and report thereto:
2. As required by the Companies (Auditor's Report) Order, 2003
(amendment order 2004) issued by the Central Government in terms of
section 227 (4A) of the Companies Act, 1956 and on the basis of such
checks of the books and records of the company, as we considered
appropriate, and in terms of the information and explanations given to
us, we enclose in the annexure a statement on the matters specified in
paragraph 4 and 5 of the said order to the extent applicable to the
company.
3. Further to our comments in 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 purpose of our
audit.
(b) In our opinion, the company as required by law has kept proper
books of account as far as appears from our examination of such books.
(c) The Balance Sheet and statement of Profit & Loss Account dealt with
by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, the statement of Profit & Loss
Account and Cash Flow Statement dealt with by this report, comply with
the Accounting Standards referred in sub - section 3(C) of section 211
of the companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31.03.2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31.03.2012 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts together
with the notes appearing in Schedule of Notes subject to Non-provision
of retirement benefits as detailed in Note no. 36 of Notes on 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 Balance Sheet, of the state of affairs of the company
as at 31st March,2012;
ii) In the case of the statement of Profit and Loss Account, of the
profit for the year ended on that date, and;
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the Fixed Assets are physically verified by the
management at reasonable intervals in a phased verification programme,
which in our opinion is reasonable having regard to the size of the
company and the nature of its business. No material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed off any part of its
Fixed Assets so as to affect its going concern.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) According to the information and explanations given to us,
the company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties, covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
(v) (a) On the basis of the audit procedures performed by us and
according to the information, explanations and representations given to
us, we are of the opinion that, the transactions in which directors
were interested as contemplated under section 297 and sub-section
(6) of section 299 of the Companies Act, 1956, and which were required
to be entered in the register maintained under section 301 of the
Companies Act, 1956, have so entered.
(b) According to the information and explanations given to us,
transactions exceeding the value of Rs. 5,00,000/- have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) The company has not accepted any deposits as defined under
sections 58A of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records have not been prescribed by the Central
Govt. under section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the records of the company, in our opinion the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employee's state insurance, income tax, sales
tax, wealth tax, custom duty, excise duty, cess and any other statutory
dues applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amount payable in respect of income tax, sales tax,
customs duty, wealth tax and excise duty were outstanding as on 31st
March, 2012 for a period of more than six months from the date becoming
payable except the following:
Name of Nature of
Dues Amount
in Rs. Period to which Date of Payment
the Statute the amount
relates
Income Tax Act Tax
Deducted
at Source 91228 01.04.2011 30.7.2012
to 30.09.2011
(x) The company has no accumulated losses as at 31st March, 2012 and it
has not incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
(xiv) In respect of shares, securities, debentures and other
investments, dealt in or traded by the company, proper records have
been maintained in respect of transactions and contracts, and timely
entries have been made therein.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans during the current
year.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment and vice-versa.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year. except Issue of 4920800 equity shares to
shareholders of Kriti Communications (P) Limited on account of merger
with Kriti Communications (P) Limited through the order of Hon'ble
High Court, Delhi.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised money by way of public issues during
the year.
(xxi) Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
For SNMG & CO.
Chartered Accountants
(Firm No. 004921N)
Sd/-
PLACE: NEW DELHI (NEERAJ GUPTA)
DATED: 14.08.2012 Partner
M. No. 087004
Mar 31, 2011
We have audited the attached Balance Sheet of BGIL FILMS & TECHNOLOGIES
LIMITED as at 31st March, 2011 and the Profit and Loss Account for the
year ended on that date annexed thereto and the Cash Flow Statement for
the year ended on that date. 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.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 and report thereto:
2. 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 and on the basis of such checks of the books and records of
the company, as we considered appropriate, and in terms of the
information and explanations given to us, we enclose in the annexure a
statement on the matters specified in paragraph 4 and 5 of the said
order to the extent applicable to the company.
3. Further to our comments in 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 purpose of our
audit.
(b) In our opinion, the company as required by law, has kept proper
books of account so far as appears from our examination of such books.
(c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report, comply with the Accounting
Standards referred in sub à section 3(C) of section 211 of the
companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31.03.2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31.03.2011 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts together
with the notes appearing in Schedule of Notes subject to Non-provision
of retirement benefits as detailed in Note no. 15 of Notes on accounts
(Schedule No. 14), 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 Balance Sheet, of the state of affairs of the company
as at 31st March,2011;
ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date, and;
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date,
(i) (a) The company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the Fixed Assets are physically verified by the
management at reasonable intervals in a phased verification programme,
which in our opinion, is reasonable having regard to the size of the
company and the nature of its business. No material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed off any part of its
Fixed Assets so as to affect its going concern.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) According to the information and explanations given to us,
the company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties, covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
(v) (a) On the basis of the audit procedures performed by us and
according to the information, explanations and representations given to
us, we are of the opinion that, the transactions in which directors
were interested as contemplated under section 297 and sub-section (6)
of section 299 of the Companies Act, 1956, and which were required to
be entered in the register maintained under section 301 of the
Companies Act, 1956, have so entered.
(b) According to the information and explanations given to us,
transactions exceeding the value of Rs. 5,00,000/- have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) The company has not accepted any deposits as defined under
sections 58A of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records have not been prescribed by the Central
Govt. under section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the records of the company, in our opinion the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employee's state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and any other statutory dues
applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amount payable in respect of income tax, sales tax,
customs duty, wealth tax and excise duty were outstanding as on 31st
March, 2011 for a period of more than six months from the date becoming
payable except the following:
Name of Nature of Dues Amount Period
the the amount in Lacs to which
Statute relates
Service Service Tax 30.34 01.10.2008 to
Tax Act 31.03.2010
Income Income Tax 18.15 01.04.2008 to
Tax Act 31.03.2010
(x) The company has no accumulated losses as at 31st March, 2011 and it
has not incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
(xiv) In respect of shares, securities, debentures and other
investments, dealt in or traded by the company, proper records have
been maintained in respect of transactions and contracts, and timely
entries have been made therein.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans during the current
year.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment and vice-versa.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised money by way of public issues during
the year.
(xxi) Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
For SNMG & CO.
Chartered Accountants
(Firm No. 004921N)
(NEERAJ GUPTA)
PARTNER
Membership No. 87004
Dated : 01-09-2011
Place : New Delhi
Mar 31, 2010
We have audited the attached Balance Sheet of BGIL FILMS & TECHNOLOGIES
LIMITED as at 31st March 2010 and the Profit and Loss Account for the
year ended on that date annexed thereto and the Cash Flow Statement for
the year ended on that date. These financial statements are the
responsibility of the companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 and report thereto:
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of section 227 (4A) of the Companies
Act, 1956 and on the basis of such checks of the books and records of
the company, as we considered appropriate, and in terms of the
information and explanations given to us, we enclose in the annexure a
statement on the matters specified in paragraph 4 and 5 of the said
order to the extent applicable to the company.
3. Further to our comments in 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 purpose of our
audit.
(b) In our opinion, the company as required by law, has kept proper
books of account so far as appears from our examination of such books.
(c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report, comply with the Accounting
Standards referred in sub - section 3(C) of section 211 of the
companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31.03.2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31.03.2010 from
being appointed as directors in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts together
with the notes appearing in Schedule of Notes, 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 Balance Sheet, of the state of affairs of the company
as at 31st March 2010;
ii) In the case, of Profit and Loss Account, of the profit for the year
ended on that date, and;
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURETOTHE AUDITORS REPORT Referred to in paragraph 3 of our report
of even date,
(i) (a) The company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the Fixed Assets are physically verified by the
management at reasonable intervals in a phased verification programme,
which in our opinion, is reasonable having regard to the size of the
company and the nature of its business. No material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed off any part of its
Fixed Assets so as to affect its going concern.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relationto the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintain- ing proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a)According to the information and explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured
to/from companies, firms or other parties, covered in the register
maintained under section 301 of the Companies Act, 1956 except Rs.
29,50,000/- taken from parties as unsecured loans. As there are no
specific terms and conditions as to the repayment of these loans, we
are unable to comment whether the same are prima facie prejudicial to
the interest of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major
weakness, has been noticed in internal controls.
(v) (a) On the basis of the audit procedures performed by us and
according to the information, explanations and representations given to
us, we are of the opinion that, the transactions in which directors
were interested as contemplated under section 297 and sub-section (6)
of section 299 of the Companies Act, 1956, and which were required to
be entered in the register maintained under section 301 of the
Companies Act, 1956, have so entered.
(b) According to the information and explanations given to us,
transactions exceeding the value of Rs. 5,00,000/- have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) The company has not accepted any deposits as defined under
sections 58A of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records have not been prescribed by the Central
Govt, under section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the records of the company, in our opinion the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and any other statutory dues
applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amount payable in respect of income tax, sales tax,
customs duty, wealth tax and excise duty were outstanding as on 31st
March, 2010 for a period of more than six months from the date becoming
payable except the following:
Name of Nature of Dues Amount in Lacs Period to which
the Statute the amount relates
Service Tax Act Service Tax 30.34 01.10.2008 to 31.03.2010
Income Tax Act TDS 0.78 01.04.2009 to 31.03.2010
Income Tax Act Income Tax 5.55 01.04.2008 to 31.03.2009
(x) The company has no accumulated losses as at 31st March, 2010 and it
has not incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society.
(xiv) In respect of shares, securities, debentures and other
investments, dealt in or traded by the company, proper records have
been maintained in respect of transactions and contracts, and timely
entries have been made therein.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others, from
banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans during the current
year.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment and vice-versa.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The company has not raised money by way of public issues during
the year.
(xxi) Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
For SNMG & CO.
Chartered Accountants
Sd/-
Place : New Delhi (Neeraj Gupta)
Dated : 03.09.2010 Partner
Membership No. 87004
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