Khyati Multimedia Entertainment Ltd.
|BSE: 531692||Sector: Media|
|NSE: N.A.||ISIN Code: INE593B01030|
|BSE LIVE 13:49 | 03 Oct||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 531692||Sector: Media|
|NSE: N.A.||ISIN Code: INE593B01030|
|BSE LIVE 13:49 | 03 Oct||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF
KHYATI MULTIMEDIA ENTERTAINMENT LIMITED
Report on the Financial Statements
1. We have audited the accompanying Financial statements of KHYATI MULTIMEDIAENTERTAINMENT LIMITED ("the company")which comprise the Balance Sheet as at31 March 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 Financial Statements that 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control 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 material isstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour 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. 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.
6. An audit involves performing procedures to obtain audit evidence about the amountsand 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 control relevant to the Companyspreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Companys Directors as well as evaluating the overallpresentation 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 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 31stMarch 2016 and its Loss 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 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 ofthe books and records of the company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure A a statement on thematters specified in the paragraph 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 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 31stMarch 2016 taken on record by the Board of Directors none of the Director is
disqualified as on 31st March 2016 from being appointed as a Director interms of Section 164 (2) of the Act.
f. With respect to the 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; 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 has disclosed the impact of pending litigations on its financialposition in its financial statements ;
ii. In our opinion and as per the information and explanation provided to us theCompany has not entered into any long-term contracts including derivatives contractrequiring provision under applicable laws or accounting standards for materialforeseeable losses.
iii. the company is not required to transfer any amount to Investor Education andProtection Fund .
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in paragraph 9 of the Independent Auditors Report ofeven date to the members of Khyati Multimedia Entertainment Limited on thefinancial statements as of and for the year ended 31st March2016.
(i) (a) In our opinion and according to the information amd explanation given to usthe company is maintaining proper records showing full particulars including quantitativedetails and situation of fixed assets;
(b) In our opinion the fixed assets have been physically verified by the management atreasonable intervals having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are not available for verification.
(ii) As the company has not purchased/sold goods during the year nor there is anyopening stockrequirement of reporting on physical verification of stock or maintenance ofinventory record in our opinion does not arise.
(iii) The company has not granted any loans secured or unsecured to companies
firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013 Therefore the provision of Clause3 (iii) (a)(b)(c) of the said order are not applicable to the company.
(iv) According to the information and explanation given to us the company hascomplied with the provisions of Section 185 and 186 wherever applicable in respect ofloans investments guarantees and securities given by the company.
(v) The company has not accepted deposits hence the directives issued by the ReserveBank of India and the provisions of sections 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules framed thereunder are not applicable.
(vi) . The central government has not prescribed the maintainence of cost records undersection
148(1) of the Act in respect of any of the company's productsand hence this clause isnot applicable.
(vii) (a) According to the records of the company undisputed statutory dues including
provident fund income tax service tax value added tax cess excise duty and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance & custom duty .According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31 March 2016 for a period of more than six months from the datethey became payable.
(b) According to the information and explanations given to us there are no materialdues of income tax or sales tax or service tax or duty of customs or duty of excise orvalue added tax which have not been deposited with the appropriate authorities on accountof any dispute.
(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.
(ix) The company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provision ofClause 3(ix) of the order are not applicable to the company.
(x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing
practices in India and according to the information and explanation given . to us wehave neither come across any instances of material fraud by the company by its officers oremployees noticed or reported during the year nor we have been informed of any such caseby the management.
(xi) According to the information provided managerial remuneration has been paid inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
(xii) The company is not a Nidhi Company moreover the company doesn't function on thelines of Nidhi company hence the said clause of the Order is not applicable.
(xiii) As per the information provided all transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 and the
details have been disclosed in the Financial Statements etc. as required by theapplicable accounting standards;
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and hencethe clause is not applicable.
(xv) As per the information and explanations given to us the company has not enteredinto any non-cash transactions with directors or persons connected with him and hence theprovisions of section 192 of Companies Act 2013 are not applicable.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.Hence this clause is not applicable.
Annexure -B to Independent Auditors' Report
Referred to in paragraph 10(f) of the Independent Auditors Report of even date tothe members of KHYATI MULTIMEDIA ENTERTAINMENT LIMITED on the financial statementsfor the year ended 31st March2016.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting ofKHYATI MULTIMEDIA ENTERTAINMENT LIMITED ("the Company") as of March 31 2016in conjunction with our audit of the financial statements of the Company for the periodfrom 01st April 2015 to 31st March 2016
Management's Responsibility for Internal Financial Controls
2. The Companys management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (the "GuidanceNote"). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to companyspolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
3. Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to and audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
4. Our audit involves performing procedures to obtain evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Out audit 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 procedureselected depends on the auditors judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting. Cleaning of Internal Financial Controls over FinancialReporting
6. A Companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable details accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 thecompanys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. 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.
8. 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 2016 based on theinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.