Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of GV FILMS Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
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 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 Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone 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 thereunder and the Order issued under Section 143(11) of the Act. We conducted our audit of the standalone 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 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 financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 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 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 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, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit, we report that:
1. 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.
2. 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.
3. The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
4. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act subject to the following Standards,
a. IND AS -19 - Recognition of retirement benefits of employees.
5. On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
6. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
7. With respect to the other matters to be included in the Auditorâs 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 :
8. The Company has not disclosed the impact of pending litigations on its financial position in its standalone financial statements.
9. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts including derivative contracts.
10. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
11. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the members of GV FILMS Limited 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 (âthe Actâ)
We have audited the internal financial controls over financial reporting of GV FILMS LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company 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, 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company 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) 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 auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs 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 the 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. 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, 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 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the members of GV FILMS Limited of even date)
1. In respect of the Companyâs fixed assets :
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. 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, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the Balance Sheet date. In respect of immovable properties of land and building that have been taken on lease and disclosed as fixed assets in the standalone financial statements, the lease agreements are in the name of the Company.
2. The Company is in the business of providing software services and does not have any physical inventories. Accordingly, reporting under Clause 3 (ii) of the Order is not applicable to the Company.
3. According to the information and explanations given to us, the Company has granted unsecured loans to three bodies corporate, 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 Companyâs interest.
b. The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
c. There is no overdue amount remaining outstanding as at the year-end.
4. In 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 Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
6. The maintenance of cost records has not been specified by the Central Government under Section 148(1) of the Companies Act, 2013 for the business activities carried out by the Company. Thus reporting under Clause 3(vi) of the order is not applicable to the Company.
7. 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, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added 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, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
c. Details dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at March 31, 2018 on account of dispute are given below :
Name of the Statute |
Nature of dues |
Amount (Rs) |
Income Tax |
TDS |
13,89,245 |
Municipal Corporation |
Professional Tax |
68,030 |
Employee Provident Fund |
Provident Fund |
1,90,018 |
Employee State Insurance Corporation |
Employee State Insurance |
21,648 |
Total |
20 47 541 |
8. The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under Clause 3 (viii) of the Order is not applicable to the Company.
9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under Clause 3 (ix) of the Order is not applicable to the Company.
10. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In 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 Act.
12. The Company is not a nidhi company and hence, reporting under Clause 3 (xii) of the Order is not applicable to the Company.
13. In 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 standalone financial statements as required by the applicable accounting standards.
14. During the year, the Company has made any preferential allotment and the requirement of section 42 of the Act has been complied by the Company.
15. In 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 to its directors and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For R. Ravindran & Associates
Chartered Accountants
Firm Registration No. 003222S
Chennai
4.6.2018 - Sd-
R. Ravindran
Proprietor M No 023829
Mar 31, 2017
To the Members of GV FILMS LIMITED
Report on the Financial Statements
We have audited the accompanying (Standalone) financial statements of GV FILMS LIMITED ("the Company") which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of 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 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 there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
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. 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 31st 2017, and its Profit/ Loss and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2017 ("the Order"), as amended, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the "Annexure A" 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 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 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 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 and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
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, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has not disclosed the impact of pending litigations on its financial position in its 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its Standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 and these are in accordance with the books maintained by the Company. Refer to Note 2.8 to the standalone financial statement.
Annexure A to the Independent Auditors'' Report
Referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirement'' of our report of even date to the financial statements of the Company for the year ended March 31, 2017:
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The Company does not hold any immovable properties.
2) (a) The management has conducted the physical verification of inventory at reasonable intervals. b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3) The Company has granted loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues with the appropriate authorities and there have not been delays in any cases mentioned above except below.
Name of the Statute |
Nature of dues |
Amount (Rs) |
Income Tax |
TDS |
13,30,467 |
Municipal Corporation |
Professional Tax |
53,605 |
Employee Provident Fund |
Provident Fund |
1,90,018 |
Employee State Insurance Corporation |
Employee State Insurance |
21,648 |
b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute.
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or 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 and hence not commented upon.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, during the year company has not paid or provided any managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
Annexure B to the Independent Auditor''s Report of even date on the Standalone Financial Statements of GV FILMS LIMITED
Report on the Internal Financial Controls 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 GV FILMS 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.
Auditors'' 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") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered Accountants of India. 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, 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.
For R. Ravindran& Associates
Chartered Accountants
Mumbai Firm Registration No. 003222S
22.5.2017 R. Ravindran
Proprietor
M No 023829
Mar 31, 2015
We have audited the accompanying financial statements of GV FILMS
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
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 and presentation of 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 financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
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, but not for the purpose of expressing opinion on the
effectiveness of the company's internal control. 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, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
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
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid 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 written representations received from the directors
as on March 31, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of 164 (2) of the Act of the Companies
Act, 2013.
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 does not have any pending litigations which would impact
its financial position
ii The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses
iii The Company is not required to transfer any amount to the Investor
Education and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO THE
MEMBERS OF GV FILMS LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR
ENDED MARCH 31, 2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
1. Fixed Assets
- The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
- According to the information and explanations given to us, the fixed
assets were physically verified by the management in accordance with
the programme of verification, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancy was noticed on such verification. The Company
has not undertaken impairment study of the fixed assets.
2. Inventories in the books represent picture rights and Internet film
rights. The management has undertaken periodical physical verification
of the inventory.
3. In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services.
4. The Company has not accepted any deposits from the public within
the meaning of the directives issued by the Reserve Bank of India and
the provisions of Sections 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there under. Accordingly,
the provisions of clause 4(v) of the Order are not applicable.
5. To the best of our knowledge and belief, the Central Government has
not prescribed maintenance of cost records under sub-section (1) of
Section 148.
6.
- Undisputed statutory dues towards income-tax, sales-tax, service-tax,
custom duty, excise duty, cess and other material statutory dues have
been regularly deposited with the appropriate authorities and there
have-not been delays in any cases mentioned above except below
Name of the Statute Nature of dues Amount (Rs,)
Income Tax TDS 7,64,914
Municipal
Corporation Professional Tax 20,125
- According to the information and explanations given to us the company
is not required to transfer any amounts which were required to be
transferred to the investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules there under.
7. In our opinion, the Company's has incurred a cash loss during the
financial year and the cash losses as at the end of the financial year
is less than 50% of the networth.
8. In our opinion, the Company has not defaulted in repayment of dues
to a financial institution, bank or to debenture holders during the
year.
9. According to the information and explanations given to us, the
company has not given any guarantee against loans taken by others from
banks or financial institutions. Terms and conditions thereof are
prejudicial to the interest of the company.
10. In our opinion, the term loans were applied for the purpose for
which they were obtained. No new loans were obtained during the current
year.
11. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For R. Ravindran & Associates
Chartered Accountants
Firm Registration No. 003222S
R. Ravindran
Proprietor
M No 023829
Chennai, 29th May, 2015
Mar 31, 2014
1. We have audited the attached Balance Sheet of M/s. GV FILMS LIMITED
as at 31st March 2014 and also the Profit and Loss Account for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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.
3. As required by the Companies (Auditor''s Report) Order, 2003 (CARO
2003) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order to the extent
applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we state that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 and Profit & 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 the
cash flow statement comply with the Accounting Standards referred to in
Subsection (3C) of section 211 of the Companies Act, 1956
e. We report that Shri Jain Kumar Vijay is disqualified from being
appointed as a director under clause (g) of sub-Section (1) of Section
274 of the Companies Act, 1956.
f. And In our opinion and according to the best of our information, 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 principle generally accepted in India ;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014
ii. in the case of the Profit and Loss Account of the Loss 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.
ANNEXURE REFERRED TO IN PARAGRAPH I OF THE REPORT OF EVEN DATE OF THE
AUDITORS TO THE MEMBERS OF GV FILMS LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31ST MARCH 2013.
1) Fixed Assets:
* The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
* According to the information and explanations given to us, the fixed
assets were physically verified by the management in accordance with
the programme of verification, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancy was noticed on such verification. The Company
has not undertaken impairment study of the fixed assets.
2) Inventory:
Inventories in the books represent picture rights and Internet film
rights. The management has undertaken periodical physical verification
of the inventory.
3) Loan to/from directors and interested parties
* In our opinion and according to the information and explanations
given to us, the Company has granted loans to the extent of Rs.
6,46,36,033/- during the year to Companies listed in the Register
maintained under Section 301 of the Companies Act, 1956.
* The company has taken loans, secured or unsecured, to the extent of
Rs. 7,36,06,837/- from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
4) Internal Control
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of fixed assets and purchase and sale of goods. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal controls.
5) Transaction covered by section 301
* In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into register
maintained under section 301 of the Companies Act, 1956 have been
entered.
* In our opinion and according to the information and explanations
given to us, Transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6) Deposit from Public
The Company has not accepted any deposit from the public and the
provisions of 58A and 58AA of the Companies Act, 1956 are not
applicable.
7) Internal Audit
In our opinion and according to the information and explanations given
to us, the Company does not have an internal audit system commensurate
with the size and nature of its business.
8) Cost Accounting Records
The Provision of section 209(1) (d) of the Companies Act, 1956
regarding maintenance of cost records is not applicable to the company.
9) Statutory Dues
According to the information and explanations given to me, the company
has no undisputed statutory dues pending for more than 6 months.
10) Cash Loss
As per Clause (x) of Paragraph 4 of CARO 2003, the Company has incurred
a cash loss during the financial year and the cash losses as at the end
of the financial year is less than Fifty per cent of the Net worth.
11) Repayment of dues
As at the year end, the company has interest overdue of Rs.
1,95,65,919/- to FCCB holders and is subject to dispute.
12) Defaults to financial Institutions
As per information and records produced there are no loans from
financial institutions as on 31st March 2014.
13) Loans and Advances on the basis of securities
In our opinion and 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.
14) Applicability of provisions to Chit fund, Nidhi/mutual benefit
fund/societies
The company is not a chit fund or a nidhi / mutual benefit fund/society
hence the clause (xiii) of the Companies (Auditor''s Report) Order 2003
is not applicable to the company.
15) Trading in shares, securities debentures and other investments
In our opinion and according to the information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable
to the Company.
16) Guarantee given for others
In our opinion and according to the information and explanations given
to us, the Company has not given any guarantees for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company.
17) End use of term loans
During the year the company has not taken any new term loans.
18) Short term Funds
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 were not used
for long term investment. Accordingly clause (xvii) of the CARO 2003 is
not applicable.
19) Preferential allotment of shares
According to the information and explanations given to us, during the
period covered by our audit report, the Company has not made any
preferential allotment of equity shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
20) Debentures
The company has not issued any debenture during the period covered by
our audit. Accordingly clause 4(xix) of the order is not applicable.
21) End use of public issue proceeds
During the year covered by our audit report, the Company has not raised
any money by way of public issue.
22) Reporting of Frauds
To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company has been noticed or reported during the course of our
audit.
For R. Ravindran & Associates
Chartered Accountants
FRN:003222S
R. Ravindran
Proprietor
Mumbai, 30th May, 2014 M.No:023829
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. GV FILMS LIMITED
as at 31st March 2012 and also the Profit and Loss Account for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the company''s management. Our responsibility is to
express an opinion on these financial statements based on ouraudit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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 ouraudit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 (CARO
2003) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order to the extent
applicable.
4. Furtherto ourcomments in the Annexure referred to in paragraph 3
above, we state that: Subject to non recognition of impairment in
advances for capex of Rs 27,22,70,344/- and intangible asset under
development Rs.143,24,79,586/-
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of
ouraudit.
b. Inouropinion 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 and Profit & 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 the
cash flow statement comply with the Accounting Standards referred to in
Subsection (3C) of section 211 of the Companies Act, 1956
e. On the basis of written representations received from the
Directors, as on March 31,2012 and taken on record by the Board of
Directors, we report that none of the director of the company is
disqualified from being appointed as a director under clause (g) of
sub-Section (1) of Section 274 of the Companies Act, 1956.
f. And In our opinion and according to the best of our information,
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 principle generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2012
ii. in the case of the Profit and Loss Account of the Loss 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.
ANNEXURE REFERRED TO IN PARAGRAPH I OF THE REPORT OF EVEN DATE OF THE
AUDITORS TO THE MEMBERS OF GV FILMS LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31st MARCH 2012.
1) Fixed Assets:
The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
According to the information and explanations given to us, the fixed
assets were physically verified by the management in accordance with
the programme of verification, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancy was noticed on such verification. The Company
has not undertaken impairment study of the fixed assets.
2) Inventory:
Inventories in the books represent picture rights and Internet film
rights. The management has undertaken periodical physical verification
of the inventory.
3) Loan to/from directors and interested parties
In our opinion and according to the information and explanations given
to us, the Company has granted loans to the extent of Rs.63,630/-
during the year to Companies listed in the Register maintained under
Section 301 of the Companies Act, 1956.
The company has taken loans, secured or unsecured, to the extent of Rs.
22,52,02,123 from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
4) Internal Control
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of fixed assets and purchase and sale of goods. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal controls.
5) Transaction covered by section 301
In our opinion and according to the information and explanations given
to us, the transactions that need to be entered into register
maintained under section 301 of the Companies Act, 1956 have been
entered.
In our opinion and according to the information and explanations given
to us, Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6) Depositfrom Public
The Company has not accepted any deposit from the public and the
provisions of 58Aand 58AAof the Companies Act, 1956 are not applicable.
7) Internal Audit
In our opinion and according to the information and explanations given
to us, the Company does not have an internal audit system commensurate
with the size and nature of its business.
8) Cost Accounting Records
The Provision of section 209(1) (d) of the Companies Act, 1956
regarding maintenance of cost records is not applicable to the company.
9) Statutory Dues
According to the information and explanations given to me, the company
has undisputed statutory dues amounting to Rs 9,89,433.
10) Cash Loss
As per Clause (x) of Paragraph 4 of CARO 2003, the Company has incurred
a cash loss during the financial year and the cash losses as at the end
of the financial year is less than Fifty per cent of the Net worth.
11) Repayment of dues
As at the year end, the company has interest overdue of Rs 101,35,256/-
to FCCB holders and is subject to dispute.
12) Defaults to financial Institutions
As per information and records produced there are no loans from
financial institutions as on 31st March 2012.
13) Loans and Advances on the basis of securities
In our opinion and 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.
14) Applicability of provisions to Chitfund, Nidhi/mutual benefit
fund/societies
The company is not a chit fund or a nidhi / mutual benefit fund/society
hence the clause (xiii) of the Companies (Auditor''s Report) Order 2003
is not applicable to the company.
15) Trading in shares, securities debentures and other investments
In our opinion and according to the information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable
to the Company.
16) Guarantee given for others
In our opinion and according to the information and explanations given
to us, the Company has not given any guarantees for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company.
17) End use of term loans
During the year the company has taken a has not taken any new term
loans.
18) Shortterm Funds
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 were not used
for long term investment. Accordingly clause (xvii) of the CARO 2003 is
not applicable.
19) Preferential allotment of shares
According to the information and explanations given to us, during the
period covered by our audit report, the Company has not made any
preferential allotment of equity shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
20) Debentures
The company has not issued any debenture during the period covered by
our audit. Accordingly clause 4(xix) of the order is not applicable.
21) End use of public issue proceeds
During the year covered by our audit report, the Company has not raised
any money by way of public issue.
22) Reporting of Frauds
To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company has been noticed or reported during the course of our
audit.
For R. Ravindran & Associates
Chartered Accountants
Firm Registration No. 003222S
(Sd/-)
R. Ravindran
Proprietor
Chennai, 14th August, 2012 M. No. 023829
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. GV FILMS LIMITED
as at 31 st March 2011 and also the Profit and Loss Account for the
year ended on that date annexed thereto. These financial statements are
the responsibility of the company''s management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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.
3. As required by the Companies (Auditor''s Report) Order, 2003 (CARO
2003) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said orderto the extent
applicable.
4. Furtherto ourcomments in the Annexure referred to in paragraph 3
above, we state that:
Subject to non recognition of impairment in Capital work in Progress of
Rs 27,22,70,344 and intangible asset under development
Rs.143,24,79,586/-
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 and Profit & 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 the
cash flow statement comply with the Accounting Standards referred to in
Subsection (3C) of section 211 of the Companies Act, 1956
e. On the basis of written representations received from the
Directors, as on March 31,2011 and taken on record by the Board of
Directors, we report that none of the director of the company is
disqualified from being appointed as a director under clause (g) of
sub-Sec. (1) of Sec. 274 of the Companies Act, 1956.
f. In our opinion and according to the best of our information, 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 principle generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011
ii. in the case of the Profit and Loss Account of the Loss 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.
ANNEXURE REFERRED TO IN PARAGRAPH I OF THE REPORT OF EVEN DATE OF THE
AUDITORS TO THE MEMBERS OF GV FILMS LIMITED ON THE ACCOUNTS FORTHE YEAR
ENDED 31st MARCH 2011.
1) Fixed Assets:
The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
According to the information and explanations given to us, the fixed
assets were physically verified by the management in accordance with
the programme of verification, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancy was noticed on such verification. The Company
has not undertaken impairment study of the fixed assets. During the
year the Company transferred one Theatre at Thanjavur and such transfer
has not affected the Company as a going concern.
2) Inventory:
Inventories in the books represent picture rights and Internet film
rights. The management has undertaken periodical physical verification
of the inventory.
3) Loan to/from directors and interested parties
In our opinion and according to the information and explanations given
to us, the Company has granted loans during the year to Companies
listed in the Register maintained under Section 301 of the Companies
Act, 1956.
In our opinion and according to the information and explanations given
to us, the Company has taken interest free unsecured loan from a
director and/or firms in which he was associated as a proprietor or
partner, to the extent of Rs. 1,26,85,000/-. Apart from this loan, the
company has not taken any loans, secured or unsecured, from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956.
4) Internal Control
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of fixed assets and purchase and sale of goods. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal controls.
5) Transaction covered bv section 301
In our opinion and according to the information and explanations given
to us, the transactions that need to be entered into register
maintained under section 301 of the Companies Act, 1956 have been
entered..
In our opinion and according to the information and explanations given
to us, Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6) Deposit from Public
The Company has not accepted any deposit from the public and the
provisions of 58A and 58AA of the Companies Act, 1956 are not
applicable.
7) InternalAudit
In ouropinion and according to the information and explanations given
to us, the Company does not have an internal audit system commensurate
with the size and nature of its business.
8) Cost Accounting Records
The Provision of section 209(1) (d) of the Companies Act, 1956
regarding maintenance of cost records is not applicable to the company.
9) Statutory Dues
According to the information and explanations given to me, the company
has undisputed statutory dues amounting to Rs 2,03,115 towards income
tax, Rs 7,86,318 towards fringe benefit tax and Rs 2,26,326 towards Tax
deducted at source.
10) Cash Loss
As per Clause (x) of Paragraph 4 of CARO 2003, the Company has incurred
a cash loss during the financial year and the cash losses as at the end
of the financial year is less than Fifty per cent of the Net worth.
11) Repayment of dues
The company has overdue interest to the extent of Rs. 94,68,549/- as at
the year end to FCCB holders and is subject to dispute.
12) Defaults to financial Institutions
The company has defaulted in paying the Interest of Rs 25,17,912/- as
on 31st March, 2011 to State bank of India. The loan was settled
afterthe Balance Sheet date.
13) Loans and Advances on the basis of securities
In our opinion and 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.
14) Applicability of provisions to Chit fund. Nidhi/mutual benefit
fund/societies
The company is not a chit fund ora nidhi/mutual benefit fund/society
hence the clause (xiii) of the Companies (Auditor''s Report) Order 2003
is not applicable to the company.
15) Trading in shares, securities debentures and other investments
In our opinion and according to the information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable
to the Company.
16) Guarantee given for others
In our opinion and according to the information and explanations given
to us, the Company has not given any guarantees for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company.
17) End use of term loans
During the year the company has not taken any new term loans.
18) Shortterm Funds
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 were not used
for long term investment. Accordingly clause (xvii) of the CARO 2003 is
not applicable.
19) Preferential allotment of shares
According to the information and explanations given to us, during the
period covered by our audit report, the Company has not made any
preferential allotment of equity shares to parties and companies
covered in the register maintained under Section 301 ofthe Companies
Act, 1956.
20) Debentures
The company has not issued any debenture during the period covered by
our audit. Accordingly clause 4(xix) ofthe order is not applicable.
21) End use of public issue proceeds
During the year covered by our audit report, the Company has not raised
any money by way of public issue.
22) Reporting of Frauds
To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company has been noticed or reported during the course of our
audit.
For R. Ravindran & Associates
Chartered Accountants
Firm Registration No. 003222S
Sd/-
R. Ravindran
Proprietor
M. No. 023829
Chennai, 30th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. GV FILMS LIMITED
as at 31st March 2010 and also the Profit and Loss Account for the
year ended on that date annexed thereto. 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material 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 p inciples 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
forouropinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO
2003) issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order to the extent
applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we state that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 and Profit & 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 the
cash flow statement comply with the Accounting Standards referred to in
Subsection (3C) of section 211 of the Companies Act, 1956
e. On the basis of written representations received from the
Directors, as on March 31, 2010 and taken on record by the Board of
Directors, we report that none of the director of the company is
disqualified from being appointed as a director under clause (g) of
sub-Section (1) of Section 274 of the Companies Act,1956.
f. In our opinion and according to the best of our information, 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 principle generally accepted in India;
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010
2. In the case of the Profit and Loss Account of the Loss of the
Company for the year ended on that date and
3. In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH I OF THE REPORT OF EVEN DATE OF THE
AUDITORS TO THE MEMBERS OF GV FILMS LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31ST MARCH 2010.
1) Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. According to the information and explanations given to us, the
fixed assets were physically verified by the management in accordance
with the programme of verificat on, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancy was noticed on such verification.
c. No impairment loss has arisen on fixed assets.
d. The company did not dispose-off any fixed asset during the year.
2) Inventory:
The Company is principally engaged in the production, distribution and
exhibition of motion pictures. As such, tlr^ Company does not carry any
stock of finished goods, raw materials, and spare parts and hence the
question of physical verification of the same does not arise.
Inventories in the books represent picture rights and Intei net film
rights.
3) Loan to/from directors and interested parties
a. In our opinion and according to the information and explanations
given to us, the Company has not granted any secured or unsecured loans
during the year to Companies listed in the Register maintained under
Section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the Company has taken interest free unsecured loan from a
director of the company to the extent of Rs. 3,65,25,395/-. Apart from
this loan, the company has not taken any loans, secured or unsecured,
from companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
4) Internal Control
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of fixed assets and purchase and sale of goods. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal controls.
5) Transaction covered by section 301
a. In our opinion and according to the information and explanations
given to us the transactions that need to be entered into register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to the information and explanations
given to us, Transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6) Deposit from Public
The Company has not accepted any deposit from the public and the
provisions of 58A and 58AA of the Companies Act, 1956 are not
applicable.
7) Internal Audit
In our opinion and according to the information and explanations given
to us, the Company has an internal audit system commensurate with the
size and nature of its business.
8) CostAccounting Records
The Provision of section 209( 1) (d) of the Companies Act, 1956
regarding maintenance of cost records is not applicable to the company.
9) Statutory Dues
According to the information and explanations given to me, there is no
undisputed amounts payable in respect of sales tax or income-tax nor
they were in arrears ac at 31st March, 2010 for a period of more than
six months from the date they became payable.
The Company has been regular in depositing with the appropriate
authorities dues on account of Provident Fund and Employees State
Insurance Corporation.
10) Cash Loss
As per Clause (x) of Paragraph 4 of CARO 2003, the Company has incurred
a cash loss during the financial year and the cash losses as at the end
of the financial year is less than Fifty per cent of the Net worth.
11) Repayment of dues
The company has a dspute with its FCCB holders and the same is pending
before Courts. Under these circumstances, the Company has not paid
interest to the extent of Rs. 18,55,126/- which is overdue as at the
yearend.
12) Loans and Advances on the basis of securities
In our opinion and 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.
13) Applicability of provisions to Chit fund, Nidhi/mutual benefit
fund/societies
The company is not a chit fund or a nidhi/mutual benefit fund/society
hence the clause (xiii) of the Companies (Auditors Report) Order 2003
is not applicable to the company.
14) Trading in shares, securities debentures and other investments
In our opinion and according to the information and explanations given
to us, the Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable
to the Company.
15) Guarantee given for others
In our opinion and according to the information and explanations given
to us, the Company has not given any guarantees for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company.
16) End use of term loans
During the year the company has taken a new term loan. In our opinion
and according to the information and explanations given to us, the term
loan was used for the purpose for which it was raised.
17) Short term Funds
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 were not used
for long term investment. Accordingly clause (xvii) of the CARO 2003 is
not applicable.
18) Preferential allotment of shares
According to the information and explanations given to us, during the
period covered by our audit report, the Company has not made any
preferential allotment of equity shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
19) Debentures
The company has not issued any debenture during the period covered by
our audit. Accordingly clause 4(xix) of the order is not applicable.
20) End use of public issue proceeds
During the year covered by our audit report, the Company has not raised
any money by way of public issue.
21) Reporting of Frauds
To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company has been noticed or reported during the course of our
audit.
For R. Ravindran & Associates
Chartered Accountants
Firm Registration No. 003222S
sd/-
R. Ravindran
Proprietor
M. No.023829
Chennai
13th August 2010