To the Members of
BGIL FILMS & TECHNOLOGIES LIMITED
Report on the Financial Statements
We have audited the accompanying financialstatements of BGIL Films & TechnologiesLimited
(the Company) which comprise the Balance Sheet as at 31 March 2015 thestatement of
Profitand Loss and the Cash Flow Statement for the period then ended and a summary ofsignificant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection
143(10) of the Act. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the financial statements.The procedures selected depend on the auditors judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror in making those risk assessments the auditor considers internal financial controlrelevant to the Companys preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompanys
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 toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India subject to confirmation and reconciliation of someof the accounts as further detailed in note no. 25 of the notes on account non-provisionfor retirement-benefits amounting to Rs. 0.32 lacs as further detailed in note no. 34 andnon-provision for diminution in value of quoted investments amounting to Rs. 206.35 lacsas further detailed in note no. 35 of the state of affairs of the Company as at 31 March2015 and its Profit and its cash flows for the period ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government in terms of sub-section (11) of section 143of the Act we give in the Annexure a statement on the matters specified in the paragraph3 and 4 of the said 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) on the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
(f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition
ii) The Company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses and
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure to the Independent Auditors Report
The annexure referred to in our Independent Auditors Report to the members ofCompany on the financial statements for the year ended on 31 March 2015 we report that :
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of a years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme the fixed assets have been physically verified by theManagement during the year and no material discrepancies have been noticed on suchverification.
ii. (a) The inventory has been physically verified during the year by the management atreasonable intervals. In our opinion the frequency of verification is reasonable.
(b) In our opinion the procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) In our opinion and according to the information and explanations given to us thecompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
iii. The Company has not grantedanyloanssecured firmsor unsecuredtocompaniesother parties covered in the register maintained under Section 189 of the Companies Act2013.
iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of Inventories and fixed assets and for the saleof goods and services. Further on the basis of our examination of the books and recordsof the Company and according to the information and explanations given to us we have notobserved any major weakness in the internal control system during the course of the audit.v. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the rules framed there under.
vi. As informed to us the Central Government of India has not prescribed themaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofactivities being carried on by the Company.
vii. (a) According to the books of accounts and records of the company as produced andexamined by us and also based on management representation the company is regular indepositing undisputed statutory dues in respect of provident fund employees stateinsurance income tax wealth tax sales tax value added tax service tax cess and anyother statutory dues with the appropriate authorities as applicable to it except forService Tax Payable amounting to Rs. 405428/- as on 31.03.2015.
(b) According to the information and explanations given to us there is no undisputedamounts payable in respect of Income Tax Wealth Tax Sales tax Value Added Tax servicetax custom duty and excise duty as applicable to the company were outstanding as at31st March 2015 for a period of more than six months from the date they became payableexcept the following:
|Name of the Statute ||Nature of Dues ||Amount (in Rs.) ||Period to which amount relates |
|Income Tax Act 1961 ||Tax Deducted at Source ||57123 ||01.04.2014 to 30.09.2014 |
|Income Tax Act 1961 ||Tax Deducted at Source ||39632 ||01.10.2014 to 31.03.2015 |
|Income Tax Act 1961 ||Interest on late payment of TDS ||60608 ||01.04.2009 to 31.03.2015 |
|Income Tax Act 1961 ||Late filing of TDS Returns ||158862 ||01.07.2012 to 31.03.2015 |
(c) There are no dues of Wealth Tax Custom Duty Value Added Tax and Cess Service Taxand Excise duty which has not been deposited as at March 31 2015 on account of disputes.Details of dues of Income Tax which have not been deposited as on March 31 2015 onaccount of disputes are given below:
|Name of the Statute ||Nature of Dues ||Forum where disputes are pending ||Amount (Rs.) ||Period to which amount relates |
|Income Tax Act 1961 ||Income Tax ||DCIT ||1465440 ||AY 2010-11 |
|Income Tax Act 1961 ||Income Tax ||DCIT ||284480 ||AY 2013-14 |
|Income Tax Act 1961 ||Income Tax ||DCIT ||150040 ||AY 2014-15 |
(d) According to the information and explanations given to us there were no amountswhich were required to be transferred to Investor Education and Protection Fund.
viii. The company does not have any accumulated losses as at 31st March 2015 (Previousyear - Rs. Nil) and has not incurred any cash losses during the financial year ended onthat date or in the immediately preceding financial year.
ix. According to the information and explanations given to us no loan has been takenby institution bank or debenture holder; accordingly further thecompanyfromanyfinancialreporting under this clause is not applicable.
x. According to the information and explanation given to us the company has not givenany guarantee towards credit facility or loans taken by others from any bank or financialInstitution.
xi. As per information and explanations given to us no term loan has been taken frombanks andfinancialinstitutions
xii. According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
|For SNMG & Co. || |
|Chartered Accountants ||Sd/- |
|Firm Regn No.: 004921N ||Neeraj Gupta |
|Place: New Delhi ||Partner |
|Date : 30th May 2015 ||M. No.: 087004 |