The Members of
Broadcast Initiatives Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of Broadcast InitiativesLimited ("the Company") which comprise the Balance Sheet as at March 31 2015the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Management is responsible for the matters stated in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements to give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andDesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
3. Our responsibility is to express an opinion on these financial statements basedon our audit.
4. We have taken into account the provisions of the Act and the Rules madethereunder including the accounting standards and matters which are required to beincluded in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing specifiedunder Section 143(10) of the Act and other applicable authoritative pronouncements issuedby the Institute of Chartered Accountants of India. Those Standards and pronouncementsrequire that 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 theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's 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 financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
8. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 312015 and its losses and its cash flows for the year ended on that date.
Emphasis of Matter
9. Without qualifying our opinion we draw attention to Note 1.01 of thefinancial statements. The Company's operating results has been materially affected due tovarious factors and as at March 31 2015 the Company's accumulated losses has fullyeroded the net worth of the Company. The appropriateness of the going concern assumptionis dependent on the Company's ability to establish consistent profitable operations aswell as raising adequate finance to meet its short term and long term obligations. Basedon the mitigating factors discussed in the said note management believes that the goingconcern assumption is appropriate and no adjustments have been made in the financialstatements for the year ended March 31 2015.
Report on Other Legal and Regulatory Requirements
10. As required by 'the Companies (Auditor's Report) Order 2015' issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order.
11. 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 March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct.
(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 explanations given to us:
i) The Company has disclosed the impact of pending litigations as at March 31 2015 onits financial position in its financial statements.
ii) The Company has made provision as at March 31 2015 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 312015.
For Ashok Jayesh & Associates
Firm Registration No. 100655W
Jayesh D Sangani
Partner [M. No. 036041]
Mumbai May 28 2015
Annexure To Independent Auditors' Report
Referred to in paragraph 10 of the Independent Auditors' Report of even date to themembers of Broadcast Initiatives Limited on financial statements as of and for the yearended March 31 2015.
i. (a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover the items over a period of three years which in our opinion isreasonable having regard to the size of and the nature of its assets. Pursuant to theprogramme a portion of the fixed assets has been physically verified by the Managementduring the year and no material discrepancies have been noticed on such verification.
ii. The Company is a service company primarily rendering broadcasting services.Accordingly it does not hold any physical inventories.
iii. According to the information and explanation given to us and on the basis ofrecords furnished before us the company has not granted any loans secured or unsecuredto parties covered in the register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business. Further on the basis of our examination of the books andrecords of the company and according to the information and explanations given to us wehave neither come across nor have been informed of any continuing failure to correctmajor weaknesses in the aforesaid internal control system.
v. The Company has not accepted any deposits from the public within the meaning ofSections 73 and 74 of the Act and the rule framed there under to the extent notified.
vi. According to information and explanations given to us maintenance of costrecords has not been prescribed by the Central Government as specified under sub-section(1) of Section 148 of the Act in respect of the services dealt by the 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 not regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax and other material statutory dues as applicable with theappropriate authorities. The statutory dues outstanding for more than six months from thedate they became payable is as below:
Tax Deducted at Source : Rs.13343496/-
Provident Fund: Rs. 388701/-
(b) According to the information and explanations given to us and the records of theCompany examined by us there are no material dues payable in respect of provident fundemployees' state insurance income tax sales tax service tax and other materialstatutory dues as applicable with the appropriate authorities as at 31stMarch 2015 which have not been deposited on account of a dispute.
(c) According to the information and explanations given to us and the records of theCompany examined by us there was no amount required to be transferred to InvestorEducation and Protection Fund during the year in accordance with the provisions of theCompanies Act 1956 and the rules made thereunder.
viii. In our opinion the Company has accumulated losses as at the end of the financialyear which are more than fifty per cent of its net worth. The company has incurred cashlosses in the financial year ended on that date and also in the immediately precedingfinancial year.
ix. According to the records of the Company examined by us and the information andexplanation given to us the Company has not taken amount from any financial institutionor bank or debenture holders as at the balance sheet date.
x. According to the information and explanations given to us the company has notgiven any guarantees for loan taken by others from banks or financial institutions duringthe year.
xi. According to the information and explanations given to us the company has notraised any term loans during the year.
xii. During the course of 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.
|For Ashok Jayesh & Associates ||Jayesh D Sangani |
|Chartered Accountants ||Partner (M. No. 036041) |
|Firm Registration No. 100655W ||Mumbai May 28 2015 |