Independent Auditors Report
To the Members of Cosmo Films Limited Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Cosmo FilmsLimited ("the Company") which comprise the Balance Sheet as at 31 March 2016the Statement of Profit and Lossthe Cash Flow Statement for the year then endedand asummary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
2. The Companys Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014 (as amended). This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Act;safeguarding the assets of the Company; preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement 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 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 thereunder.
5. 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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures 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 financial controls relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall presentation of 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 standalone financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4of the Order.
10. As required by Section143(3) of the Act we report that: a. we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. the standalone financial statements dealt with by thisreport are in agreement with the books of account; d. in our opinion the aforesaidstandalone financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended); e. on the basis of the written representations received from the directors as on31 March 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms ofSection164(2) of the Act; f. we have also audited the internal financial controls overfinancial reporting (IFCoFR) of the Company as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate and our report dated 11 May 2016 as per Annexure B expressing our unmodified opinionon adequacy and operating effectiveness of the internal financial controls over financialreporting g. with respect to the other matters to be included in the Auditors Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:i. as detailed in note 26 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its standalone financial ii. the Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; and iii. there has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.
For Walker Chandiok & Co LLP
(formerly Walker Chandiok & Co)
Firms Registration No.: 001076N/N500013
per Neeraj Goel
Date:11 May 2016
Annexure A to the Independent Auditors Report of even date to the members ofCosmo Films Limited on the financial statements for the year ended 31 March
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that: (i) (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets (b) The Company has a regular program of physical verificationof its fixed assets under which fixed . assets are verified in a phased manner over aperiod of three year which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. No material discrepancies were noticed on suchverification.
(c) The title deeds of all the immovable properties are held in the name of theCompany.
(ii) The management has conducted physical verification of inventory at reasonableintervals during the year except position for goods-in-transit. No material discrepancieswere noticed on the aforesaid verification (iii) The Company has not granted any loansecured or unsecured to companies firms Limited Liability Partnerships (LLPs) or otherparties covered in the register maintained under Section 189 of the Act. Accordingly theprovisions of clauses 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion theCompany has complied with the provisions of sections 185 and 186of the Act in respect of loans and investments.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Companys products and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.
(vii) (a) Undisputed statutory dues including provident fund employees stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable have generally beenregularly deposited to the appropriate authorities. Further no undisputed amounts payablein respect thereof were outstanding at the year-end for a period of more than six monthsfrom the date they became payable.
(b) The dues outstanding in respect of income-tax sales-tax service tax duty ofcustoms duty of exciseand value added tax on account of any dispute are as follows:
|Name of the statute ||Nature of dues ||Amount ||Amount paid under ( Rs. in crores) Protest ( Rs. in crores) ||Period to which the amount relates(FY) ||Forum where dispute is pending |
|Central Excise Act 1944 ||Excise duty ||0.01 ||- ||1996-97 ||Commissioner |
| ||Excise Duty ||1.96 ||- ||2008-09 to 2013-14 ||Commissioner Appeals |
| ||Excise Duty ||3.78 ||- ||2001-02 2008-09 ||Custom Excise & Service |
| || || || ||2009-10 and 2014-15 ||Tax Appellate Tribunal |
| ||Service Tax ||1.66 ||- ||2005-06 to 2015-16 ||Custom Excise & Service |
|Maharashtra VAT Act 2002 ||Sales Tax ||2.08 ||0.60 ||2007-08 ||Tax Appellate Tribunal Joint Commissioner of Sales TaxAurangabad |
| ||Sales Tax ||3.45 ||0.73 ||2008-09 ||Joint Commissioner of Sales TaxAurangabad |
| ||Sales Tax ||0.61 ||0.38 ||2009-10 ||Joint Commissioner of Sales TaxAurangabad |
|Income-tax Act 1961 ||Income tax and penalty ||1.07 ||1.07 ||1997-98 ||High Court Delhi |
| ||Income tax and penalty ||4.83 ||4.83 ||2002-03 ||Honble Supreme Court of India |
| ||Income tax and penalty ||2.98 ||2.98 ||2008-09 ||Income Tax Appellate Tribunal |
| ||Income tax and penalty ||5.57 ||1.32 ||2009-10 ||Income Tax Appellate Tribunal |
| ||Income tax and penalty ||0.62 ||- ||2010-11 ||Income Tax Appellate Tribunal |
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year. (ix) The Company did not raise moneys by way ofinitial public offer or further public offer (including debt instruments). In our opinionthe term loans were applied for the purposes for which the loans were obtained.
(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.
(xi) In our opinion managerial remuneration has been provided in accordance with therequisite approvals mandated by the provisions of section 197 of the Act read withSchedule V to the Act.
(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3(xii) ofthe Order is not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.
(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.
(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||For Walker Chandiok & Co LLP |
| ||(Formerly Walker Chandiok & Co) |
| ||Chartered Accountants |
|Firms Registration No.: 001076N/N500013 || |
| ||per Neeraj Goel |
| ||Partner |
| ||Membership No.: 99514 |
|Place:New Delhi || |
|Date:11 May 2016 || |