To the Membersof
BMB MUSIC& MAGNETICS LIMITED
206 A Block Amrit Kalash
Near Kamal & company
Tonk Road Jaipur Rajasthan - 302015
We have audited the accompanying financial statements of BMBMUSIC &MAGNETICSLIMITED ("the Company") which comprise the Balance Sheet as at March 312014 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and..a.sujnmaiy.ofsignificant accounting policies and other explanatoryinformation.
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompanyin accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act"). This responsibility includesthe design implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement 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 Auditingissued by theInstitute of Chartered Accountants of India. Those Standards require that we complywithethical 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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error in making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpoliciesused and the reasonableness of the accountingestimates made by management as well asevaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our auditopinion.
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 theaccountingprinciplesgenerally accepted in India:
a) in the case of the Balance Sheetof the state of affairs of the Company asat March31 2014;
b) in the case of the Profit and Loss Accountof the Loss for the year ended on thatdate and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
1. required by the Companies(Auditor's Report) Order 2003 ("theOrder")issued by the Central Government of India in terms of sub-section (4A)ofsection 227 of the Actwe give in the Annexure a statement on the matters specified inparagraphs4 and 5 ofthe Order.
2. As required by section 227(3) of the Act we report that:
a) we have obtained all the information and explanations which to the best of 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 examinationof those books
c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d) in our opinion the Balance Sheet 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;
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.
f) Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the Company.
| ||For Sarda Soni Associates. |
| ||Chartered Accountants |
| ||FRN: 117235W |
| ||Manoj Kumar Jain |
|Place: Mumbai ||(Partner) |
| ||Membership No.: 120788 |
ANNEXURE TO AUDITOR'S REPORT
Accounting Year: 2013-2014
Report on matters to be included pursuant to order issued under section 227(4A) of theCompanies Act 1956.
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets but in case of Plant & Machinerydetailed records have not been maintained.
(b) As informed to us the management has conducted physical verification of fixedassets during the year and no material discrepancies were noticed on suchverification.There is a regular program of verification which in our opinion isreasonable having regard to the size of the Companyand the nature of its assets.
(c) In our opinion and according to information and explanation given to ussubstantial part of fixedasset has not been disposed ofby the Company during the previousyear.
2. The Companydoes not have any inventory and hence the Clauseis not applicable.
3. (a) The Company has not granted or taken any loan secured or unsecured to/from thecompanies firms or other parties listed in the register maintained u/s 301 of CompaniesAct 1956.
(b) As the Company has not granted any loan hence the requirement of rate of interestand other terms and conditions of loans granted by the Company secured or unsecured areprejudicial to the interest of the Company or not is not applicable.
(c) Requirement of regular payment of the principal amount and interest is notapplicable being no loan granted by theCompany.
(d) No amount is overdue more than Rs. 1 lakh hence this clause is not applicable onthe company.
(e) The Companyhas not taken any loans secured or unsecured from Companies firm orother parties covered in the register maintained under section 301 of the Act.
(f) Asthe'Company has not taken any loan hence the requirement of rate of interest andother terms and conditions of loans taken by the company secured or unsecured areprejudicial to the interest ofthe Company or not is not applicable.
(g) Requirement of regular payment of the principal amount and interest is notapplicable being no loan taken by the Company.
4. In our opinion and according to the information and explanation given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventory fixed assets and with regardto the sale of goods. During the course of our audit we have not observed any continuingfailure to correct major weaknesses in the internal control.
5. (a) Accordingto the information and explanation given to us we are of the opinionthat the transaction that are required to be entered into the Register maintained u/s 301of the Companies Act 1956 have been so entered.
(b) In our opinion and according to the information and explanations given to us thesetransactions are made at prices which are reasonable having regard to the prevailingmarket prices at the relevant time.
6. The Companyhas not accepted any public deposits under the provisions of Section 58Aand 58AA or any other relevant provisions of the Actand the rules framed there under.
7. The Company is not having any internal audit system.
8. Maintenanceof cost records under section 209(1) (d) of the Companies Act 1956 hasnot been prescribed by the Central Government for the Company.
9. (a) According to the books and records as produced and examinedby us in accordancewith generally accepted auditing practices in India and also based onManagementrepresentations undisputed statutory dues in respect of Provident fundEmployee's state insurance dues Investor educationand protection fund Income TaxSalestax. Wealth Tax Service Tax Custom duty Excise duty cess and other statutory dues havenot been regularly deposited by the company during the year with the appropriateauthorities in India. However following amounts of statutory dues are outstanding in theCompany's books for more than a year.
|Sales Tax Payable ||54341.00 |
|Surcharge on RST ||85.00 |
|TDS Payable ||1473140.00 |
|VAT Payable ||76840.00 |
|TOTAL ||1604406.00 |
(b) As per explanations given to us and the records of the Company examined by usthere are no dues of income tax wealth tax service tax sales tax custom duty exciseduty' and cess which have not been deposited on account of any disputes as on 31st March2014.
10. The Companyis having accumulated loss of Rs. 408.48 Lacs and the accumulated lossesof the Company are more than 50 per cent of its net worth.
The Companyhas incurred cash losses duringthe financial year covered by our audit andalso incurred cash losses in the immediately precedingfinancialyear. . .
11. The Companyhas not defaulted in the payment of dues of bank.
12. As per the explanations given by the management the Company has not granted loansand advances on the basis of the security by way of pledge of shares debentures and othersecurities hence this clause is not applicable on theCompany.
13. Consideringthe nature of activities carried on by the Companyduring the year theprovisions of any special statute applicable to chit fund/ Nidhi/ mutual benefit fund/societies are not applicable to it.
14. The Company is not dealing in or trading in shares securities debentures andother investments hence this clause is not applicable to the Company.
15. Asper information and explanationsgiven to us the Company has not given anyguarantees for loans taken by others from banks or financial institutions.
16. The Company has not taken any term loans hence this clause is not applicable on theCompany.
17. According to the information and explanation given to us and on overall examinationof the Balance Sheet of the Company and as represented to us by the management we reportthat the no funds raised on short term basis have been utilized for long term investmentsand no long term funds have been used to finance the short term assets except permanentworking capital. 18. According to the information and explanation given to us the Companyhas not made any preferential allotment to the persons entered into the Registermaintainedu/s 301 of the Act so this clause is not applicable.
19. The Company had not issued any debentures hence this clause is not applicable tothe Company.
20. Nomoney has been raised from the publichence this clause is not applicable totheCompany.
21. According to the information and explanation given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
| ||For Sarda Soni Associates |
| ||CharteredAccountants |
| ||FRN: 117235W |
|Date: -30/05/2014 ||j Kumar Jain Mano |
|Place: - Mumbai ||(Partner) |
| ||Membership No.: 120788 |