DSJ Communication Ltd.
|BSE: 526677||Sector: Media|
|NSE: DALALSTCOM||ISIN Code: INE055C01020|
|BSE 15:45 | 27 Aug||DSJ Communication Ltd|
|NSE 05:30 | 01 Jan||DSJ Communication Ltd|
|BSE: 526677||Sector: Media|
|NSE: DALALSTCOM||ISIN Code: INE055C01020|
|BSE 15:45 | 27 Aug||DSJ Communication Ltd|
|NSE 05:30 | 01 Jan||DSJ Communication Ltd|
To the Members of DSJ Communications Ltd.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of DSJCommunications Limited (the Company') which comprise the balance sheet asat 31st March 2017 the statement of profit and loss and the cash flowstatement for the year then ended and a summary of significant explanatory information.
Management's Responsibility for the Standalone Financial Statements
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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for 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.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the auditreport under the provisions of the Act and the Rules made thereunder.
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 financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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.
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.
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 31st March 2017 and its loss and its cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the order.
2. 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 sheetthe flow statement dealt with by this Report of profit andloss and the cash are in agreement with the books of account;
(d) in our opinion the aforesaid standalone financial specified under Section 133 ofthe 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act; (f) with respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B"; and
(g) 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 information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company did not have any long term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does on arise;
iii. There has not been any occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise.
iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management. (Refer Note 17 toNotes on Financial Statements)
Annexure - A to the Auditors' Report The Annexure referred to in Independent Auditors'Report to the members of the Company on the standalone financial statements for the yearended 31st March 2017 we report that:
i. In our opinion and information and explanation given to us the company does nothave any fixed assets comment under clauses (a) (b) are not applicable. (c) In ouropinion and according to the information and explanation given to us the company does notown any immovable property.
ii. In our opinion and information and explanation given to us The Company does nothave inventories. As such the comments under clause (ii) are not given.
iii. During the year Company has not granted any loan secured or unsecured to theCompanies firms
Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Accordingly the provisions of clause 3 (iii)(a)to (c) of Order are not applicable to the company and hence not commented upon;
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 & 186 of the Act with respectto the loans and investments made;
v. The Company has not accepted any deposits from the public;
vi. The Central Government has not prescribed maintenance of Cost records undersub-section (1) of Section 148 of the Act in respect of the activities carried on by thecompany;
vii. (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed applicable statutory dues including Provident Fund EmployeesState Insurance Income-Tax Sales tax Service Tax Duty of Customs Duty of ExciseValue added Tax Cess and any other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the above were in arrears as at March 31st 2017 for a period ofmore than six months from the date on when they become payable;
(b) According to the information and explanation given to us there are no dues ofsales tax duty of customs duty of excise value added tax outstanding on account of anydispute. However according to the information and explanation given to us the followingdues of income tax by the company on account of any disputes:
viii. The Company does not have any loans or borrowing from any banks or financialinstitutions. During the year accordingly paragraphs 3 (viii) of order is not applicable.
ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including Debt instrument) and term loans during the year. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable;
x. Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year;
xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid any managerialremuneration as per the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion the Company is not a Nidhi Company. Accordingly the provisions ofclause 3 (xii) of the Order are not applicable;
xiii. Based upon the audit procedures performed and the information and explanationsgiven by the management the transactions with Related Parties are in compliance withSections 177 & 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable AccountingStandards;
xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.
xv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable;
xvi. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company.
"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of DSJ Communications Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of DSJCommunications Limited ("the Company") as of March 31 2017 in conjunction withour audit of the financial statements of the 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 reporting criteria established by the Company considering the essential on theinternal control over financial components of internal control stated in the Guidance Noteon Audit of Internal Financial Controls Over financial Reporting issued by the Instituteof Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies 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 sufficientand 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 purposes in accordance with generally accepted accounting principles. Acompany's internal financial control over financial reporting includes those policies andprocedures that:
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 March 31 2017 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.