TO THE MEMBERS OF
BHARATIYA GLOBAL INFOMEDIA LIMITED
Report on the Financial Statements
1. We have audited the accompanying standalone financial statements of BHARATIYAGLOBAL INFOMEDIA LIMITED (CIN No. L74999DL1994PLC062967) ("the Company")which comprise the Balance Sheet as at March 31 2017 the Statement of Profit and Lossthe Cash Flow Statement for the year then ended and a summary of the significantaccounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements to give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 of 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.
3 Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.
5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
8. 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 of the state of affairs of the Company as at March31 2017 and its profit and its cash flows for the year ended on that date subjectto non-provision of amount recoverable from inter-corporate deposits amounting toprincipal amount of Rs 5.40 crores alongwith accrued interest thereby increasing theprofit by the same amount as further detailed in note no. 31 of notes to accountsnon-provision of penalty imposed by SEBI of Rs 6 crores as further detailed in note no 30and confirmation and reconciliation of some of accounts as further detailed in note no. 25and Non Provision of penalty imposed u/s 234E of the Income Tax Act 1961 to the extent ofRs. 2.98 Lacs as detailed in note no.32.
Report on Other Legal and Regulatory Requirements
9. As required by 'the Companies (Auditor's Report) Order 2016' issued by the CentralGovernment of
India in terms of sub-section (11) of section 143 of the Act (hereinafter referred toas the "Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.
10. 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct.
(f) With respect to adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B''.
(f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:
i) The Company has disclosed the impact if any of pending litigations as at March 312017 on its financial position in its financial statements.
ii) The Company has made provision as at March 31 2017 as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts.
iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312017
For S A M P R K & Associates
Firm Registration No 013022N S/d
CA. Pankaj Sharma
Place: New Delhi
Annexure- A to Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of BHARATIYA GLOBAL INFOMEDIA LIMITED (CIN No. L74999DL1994PLC062967) onthe standalone financial statements as of and for the year ended March 31 2017
I (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year ina phased manner and no material discrepancies have been noticed on such verification. Inour opinion the frequency of physical verification of fixed assets is reasonable havingregard to the size of the Company and the nature of its assets.
(c) The title deeds of free hold immovable properties are held in the name of theCompany.
ii. The management has conducted physical verification of inventory at reasonableintervals and no material discrepancies in inventory were noticed on physicalverification.
iii The Company has granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013. Therefore the provisions of Clause 3(iii) (iii) (a) (iii) (b) & (iii) (c) ofthe said Order are not applicable to the Company.
iv According to the information and explanations given to us and the records of theCompany examined by us in our opinion in respect of loans investments guarantees &security the provisions of section 185 and 186 of the Companies Act 2013 have beencomplied with.
v. The Company has not accepted any deposits from the public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Govt. for the maintenance of Cost Records under sub section1 of section 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been maintained. We have however not made a detailedexamination of these records.
-N/A to this Company.
vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund employees' state insuranceincome tax sales tax wealth tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable with the appropriateauthorities
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxduty of customs service tax cess and other material statutory dues were in arrears as at31 March2017 for a period of more than six months from the date they became payable exceptthe amount of VAT of Rs . 1359761/- and Service tax Of Rs. 482022/- and TDS of Rs.39500/-.
(b) According to the information and explanations given to us and the records of theCompany examined by us the dues outstanding of income-tax wealth-tax sales taxservice-tax duty of customs duty of excise value added tax and cess which have not beendeposited on account of any dispute as at March 31 2017.
|Name of the Statute ||Nature of dues ||Amount (In Rupees) ||Period to which the amount relates ||Remarks if any |
|Income Tax Act 1961 ||Demand u/s 143(1)(a) ||957632 ||2006-07 ||Application for Rectification u/s 154 has already been submitted |
|Income Tax Act 1961 ||Demand u/s 115_WE ||179547 ||2009-10 ||Application for Rectification u/s 154 has already been submitted |
|Income Tax Act 1961 ||Demand u/s 220(2) ||119522 ||2011-12 ||Adjusted against refund of AY 201314 and 2014-15 |
|Income Tax Act 1961 ||Demand u/s 143(3) ||125620 ||2012-13 ||Adjusted against refund of AY 201314 and 2014-15 |
|Income Tax Act ||Demand u/s 234 E ||1400 ||2016-17 || |
|1961 || ||16200 ||2015-16 || |
| || ||200206 ||2014-15 || |
| || ||38400 ||2013-14 || |
| || ||42600 ||2012-13 || |
viii. According to the records of the Company examined by us and the information andexplanation 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.
Ix Based on the audit procedures applied by us and according to the information &explanations provided by the management the Company has not raised any moneys by furtherpublic offer (including
debt instruments) during the year. Term loans taken by the company during the year havebeen applied for the purpose for which the loans were obtained.
X During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof material fraud on or by the Company noticed or reported during the year nor have webeen informed of any such case by the Management.
xi. According to the records of the Company examined by us and the information andexplanation given to us the Company has paid and provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V of the Companies Act 2013.
xii. In our opinion & according to the information & explanations given to usthe Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. According to the records of the Company examined by us and the information andexplanation given to us the company has complied with section 177 and 188 of theCompanies Act 2013 in relation to transaction with related parties and the details havebeen disclosed in the Financial Statements.
xiv. The company has not made any equity/preferential allotment of share warrantsduring the year under review and the requirement of Section 42 of the Companies Act 2013to be complied are not applicable.
v. As per the information & explanations given to us the company has not enteredinto any non cash transactions with directors or persons connected with him. Accordinglyparagraph 3(xv) of the Order is not applicable.
For S A M P R K & Associates
Chartered Accountants Firm Registration No 013022N S/d
CA. Pankaj Sharma Partner
Place: New Delhi Dated: 26/05/2017
Annexure-B to the Independent Auditor's Report
Report on the Internal Financial Controls
We have audited the internal financial controls over financial reporting of BHARATIYAGLOBAL INFOMEDIA LIMITED (CIN No. L74999DL1994PLC062967) ("the Company") asof March 31 2017 in conjunction with our audit of the standalone financial statements ofthe 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For S A M P R K & Associates
Firm Registration No 013022N
CA. Pankaj Sharma
Place: New Delhi