To the Members of
BHARATIYA GLOBAL INFOMEDIA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of BHARATIYA GLOBAL INFOMEDIALIMITED ("the Company" which comprise of the Balance Sheet as at March 312014 the Statement of Profit and Loss and the Cash Flow Statement for the period thenended as on that date annexed thereto a summary of significant accounting policies andother explanatory information.
Managements responsibility for the Financial Statements
The Companys management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to insub-section (3C) of section 211 of the Companies Act 1956 read with the General Circular15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section133 of the Companies Act 2013. This responsibility includes the design implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial 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 conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India subject to non-provision of amountrecoverable from inter-corporate deposits amounting to principal amount of Rs.5.60crores along with accrued interest thereby increasing the profit by same amount asfurther detailed in note no. 35 of notes on accounts non- provision of amount of penaltyimposed by SEBI of Rs.6 crores as further detailed in note no. 34 non-provision of amount of interest on loan taken from LIC against Keyman Insurance Policyas further detailed in note no. 40 non-provision for diminution in value of quotedinvestments amounting to Rs.0.39 Lacs thereby increasing the profit by thesame amount as further detailed in note no. 41and confirmation & reconciliation ofsome of the accounts as further detailed in note no. 29 of the notes on account :
i) In the case of Balance Sheet of the state of affairs of the company as at 31stMarch 2014 and;
ii) In the case of the Statement of Profit and Loss of the profit for the period endedon that date.
iii) In the case of Cash flow statement of the cash flows for the period ended on thatdate.
Report on other Legal & Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2003 issued by theCentral Government in terms of section 227 (4A) of the Companies Act 1956 and on thebasis of such checks of the books and records of the company as we consideredappropriate we enclose in the annexure a statement on the matters specified in the saidOrder.
2. As required by section 227(3) of the Act we report that:
(a) We have obtained all the information and explanations which to the best of ourknowledge 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 thecompany so far as appears from our examination of those books.
(c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
(d) in our opinion the Balance Sheet the Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956 read with the General Circular 15/2013 dated 13 September2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act2013;
(e) On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.
| ||For K Prasad & Co. |
| ||Chartered Accountants |
| ||Firm No. 002755N |
|Place : New Delhi ||K.M Agarwal |
|Date : 29.05.2014 ||Partner |
| ||M. No. 016205 |
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Fixed Assets are physically verified by the management according to regularprogramme of periodical verification in phased manner which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.
(c) During the year the company has not disposed off any substantial part of its FixedAssets.
(ii) (a) The inventory has been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.
(b) In our opinion the procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) On the basis of our examination of the inventory records in our opinion thecompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.
(iii) (a) As per information and explanation provided to us by the management of thecompany the Company has granted loan to a subsidiary company listed in the registermaintained under section 301 of the Companies Act 1956. The maximum amount outstandingduring the year was Rs.18400000 (Previous Year Nil). And the year end balance of suchloan was Rs.18400000 (Previous year Nil).
(b) As per information and explanation provided to us by the management of the companythe Company has not taken any loan from companies firms or other parties listed in theregister maintained under section 301 of the Companies Act 1956.
(c) As per information and explanation provided to us by the management of the companythe loan granted to the subsidiary company covered in the register maintained undersection 301 of the Act is interest free.
(d) As per information and explanation provided to us by the management of the companyno specific terms of repayment has been specified in the case of loan granted to thesubsidiary company listed in the register maintained under section 301 of the Act andrepayment shall be made on demand.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business with regard to purchases of inventory fixed assets andwith regard to the sale of goods. During the course of our audit no major weakness hasbeen noticed in internal controls.
(v) Based on the audit procedures applied by us and according to the information andexplanations given to us there are no transactions that need to be entered into theregister maintained under section 301 of the Companies Act 1956.
(vi) The company has not accepted any deposits as defined under sections 58A of theCompanies Act 1956 and the Companies (Acceptance of Deposits) Rules 1975.
(vii) In our opinion the company has an internal audit system commensurate with thesize and nature of its business.
(viii) According to the information and explanations given to us maintenance of costrecords have not been prescribed by the Central Govt. under section 209 (1) (d) of theCompanies Act 1956.
(ix) (a) According to the records of the company in our opinion the company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund investor education and protection fund employees stateinsurance income tax sales tax wealth tax custom duty excise duty cess and any otherstatutory dues applicable to it.
(b) According to the information and explanations given to us there are no undisputedamount payable in respect of provident fund income tax sales tax customs duty exciseduty wealth tax Service Tax and other material statutory dues which were in arrears formore than six months from the date they become payable.
|Name of the Statute ||Nature of Dues ||Amount (in Rs.) ||Period to which amount relates |
|Income Tax Act 1961 ||Interest on late payment of TDS ||662956 ||01.04.09 to 31.03.14 |
|Income Tax Act 1961 ||Late filing of TDS Returns ||81000 ||01.07.12 to 31.03.14 |
(c) Detail of dues of Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty and cess which have not been deposited as on 31st March 2014 onaccount of disputes are given below:
|Name of the Statute ||Nature of Dues ||Amount ||Period to which ||Forum where the dispute is |
| || ||(in lacs) ||amount relates ||pending |
|Income Tax Act 1961 ||Tax / Interest ||13.10 ||AY 2012-13 ||DCIT New Delhi |
(x) The company has no accumulated losses as on 31st March 2014 and it hasnot incurred any cash losses during the financial period ended on that date or in theimmediately preceding financial year.
(xi) According to the records of the company examined by us and the information andexplanations given to us the company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as at the balance sheet date.
(xii) The company has not granted any loans and advances on the basis of security byway of pledge of shares debentures and other securities.
(xiii) In our opinion the company is not a chit fund or a nidhi/mutual benefitfund/society.
(xiv) The company has maintained proper records of the transactions and contracts inrespect of dealing or trading in shares securities debentures and other investments andtimely entries have been made therein
(xv) According to the information and explanations given to us the company has notgiven any guarantee for loans taken by others from banks or financial institutions duringthe year.
(xvi) The Company has not obtained any term loans during the current year.
(xvii) Based on the information and explanations given to us and on an overallexamination of the balance sheet of the company in our opinion some of the funds raisedon a short term basis have been used for long term investments.
(xviii)According to the information and explanations given to us the company has notmade preferential allotment of shares to parties and companies covered in the registermaintained under section 301 of the Act during the year.
(xix) According to the information and explanations given to us during the periodcovered by our audit report the company has not issued any debentures.
(xx) The company has not raised money by way of public issues during the year.
(xxi) Based on the audit procedures performed and information and explanations given tous we report that no fraud on or by the company has been noticed or reported during thecourse of our audit.
| ||For K Prasad & CO. |
| ||Chartered Accountants |
| ||Firm No. 002755N |
|PLACE : NEW DELHI ||(K.M Agarwal) |
|DATED : 29.05.2014 ||Partner |
| ||M. No. 016205 |