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Purple Entertainment Ltd.

BSE: 540159 Sector: Media
NSE: N.A. ISIN Code: INE905R01016
BSE 00:00 | 12 Apr Purple Entertainment Ltd
NSE 05:30 | 01 Jan Purple Entertainment Ltd
OPEN 27.10
PREVIOUS CLOSE 27.50
VOLUME 50000
52-Week high 30.50
52-Week low 23.95
P/E 85.94
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.10
CLOSE 27.50
VOLUME 50000
52-Week high 30.50
52-Week low 23.95
P/E 85.94
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Purple Entertainment Ltd. (PURPLEENTERTAIN) - Auditors Report

Company auditors report

To the Members of

MIS PURPLE ENTERTAINMENT LTD.

Report on the Financial Statements

We have audited the accompanying financial statements of M/S PURPLE ENTERTAINMENTLTD{"the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.

Management's Responsibility for the 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 preparation ofthese financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accorc;Jance with theaccounting principles generally accepted in India including the Accounting Standardsspecified und~r Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing_ and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls 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 frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Stangards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain auditevidence about the amounts and the disclosur~s in the financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial

• 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of 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 financial statements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid financial statements give the information required by the Act inthe 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 31March 2017 and its Profit and its cash flows for the year ended on that date.

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Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 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 purpose of our audit;

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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 .f\ccountingStandards

specified under section 133 of the1 Act read with Rule 7 of the Companies (Accounts)

• Rules 2014. e. On the basis of written representations received from thedirectors as on March 31 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2017 from being appointed as a director in termsof Section 164 (2) of the Act.

f. With respect to adequacy of Internal Financial Controls over financial reporting ofthe company and the operating effectiveness of such controls refer to our separatereport in "Annexure- B"

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} ~he company has disclosed the impact of pending litigations on its financialposition in its financial statements- Refer Note (3} and (4) of Part B to Notes toaccounts;

(ii} The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring the amounts required to be transferred

to the Investor Education andprotection Fund by the Company.

(iv} The company has provided disclosures in its financial statements.as to holdingsas

well as dealings in specified bank notes during the period from 8th November 2016 to30th Decemqer 2016 Based on audit procedures and relying on the management representationwe report that the disclosures are in accordance with

books of account maintained by the Company and as produced to us by the Management-R~fer Note No. [17]

For and on behalf of
KAMLESH BHOJANI & ASSOCIATES.
Chartered Accountants
FRN 127505W.
KamleshBhojani
Proprietor
Memb.No.119808
Place: Ahmedabad •
Date: 30/05/2017

"Annexure A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirements' of our report of even date to the financial statements of the Company forthe year ended March

312017:

1. In respect of Fixed Assets :

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets; (b) The Fixed Assets have beenphysically verified by the management in a phased manner designed to cover all the itemsover a period of five years which in our opinion is reasonable having regard to the sizeof the company and nature of its business. According to information and explanation givento us no material discrepancies were noticedon such verification. (c) The title deeds ofimmovable properties are held in the name of company.

2. In respect of Inventories:

According to information and explanation given to usPhysical verification ofinventories has been conducted in reasonable interval by the Management and no materialdiscrepancies were noticed on physical verification during the year.

3. According to information and expla~ation given to us the Company has not grantedany loans secured or unsecured to companies firms Limited Liability partnerships orother parties co~ered in the Register maintained under section 189 of the Act.Accordingly the provisions of clause 3 (iii) (a) to (C) of the Order are not applicableto the Company and hence not commented upon.

4. In our opmton and according to the information and explanations given to us thecompany has not granted loan or given guarantee or provided security as provided in thesection 185 and 186 of the Companies Act 2013 In respect of loans investmentsguarantees and security.

5. According to information and explanation given to us the Company has not accep~edany deposits from the public and hence the directives issued by the Reserve Bank of Indiaand the provisions of Sections 73 to 76 or any other relevant provisions of the Act andthe Companies (Acceptance of Deposit) Rules 2015 with regard to the deposits acceptedfrom the public are not applicable .

6. According to the information and explanation given to us the central government hasprescribed maintenance of cost records under sub section (1) of section 148 of theCompanies Act ' 2013 .in respect of manufacturing activities of the Company. We are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the same.

7. According to information and explanations given to us in respect of statutory duesand on the basis of our examination of the books of account and records

(a) the Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income-Tax Sales tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and any other statutory dues withthe appropriate authorities. According to .the information and explanations given to usno undisputed amounts payable in respect of the above were in arrears as at March 31 2016for a period of more than six months from the date on when they become payable.

b) According to the information and explanations given to us there are no materialdues of income tax sales tax and service tax value added tax wealth tax duty ofcustoms and Cess which have not been deposited with the appropriate authorities on accountof any dispute

8. The Company has not defaulted in repayment of loan or borrowing to financialinstitution bank government or dues to debenture holders.

9. According to the information and explanations given by the management the companyhas not raised moneys by way of initial public offer or further public offer includingdebt instruments and term Loans during the year: Acco~dingly the provisions of clause 3(ix) of the Order are not applicable to the Company.

10. According to the information and explanations given by the management we reportthat no fraud by the Company or on the company by its officers or employees has beennoticed or reported during the year.

11. In our opinion the provisions of Section 197 read with Schedule V to the CompaniesAct are not appli.cable to the company and hence not commented upon.

12. In our opinion the Company is not a Nidhi Com .. pany. Therefore the provisionsof clause 4 (xii) of the Order are not applicable to the Company.

13. k1 our opinion all transactions with the related pa.rties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial SJatements as required by the applicable accounting standards.

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14. According to the information and explanations given by the management the companyhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the provisions of clause3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

15. According to the information and explanations given by the management the companyhas not entered into any non-cash transactions with directors or persons connected withhim. Accordingly the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.

16. In our opinion the company is not required to be registered under section 45 lA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For and on behalf of
KAMLESH BHOJANI & ASSOCIATES
Chartered Accountants
FRN 127505W
KamleshBhojani
Proprietor
Memb.No.119808
Place: Ahmedabad
Date: 30/05/2017

Annexure 'B'

Annexure to the Independent Auditor's report of even date on the Standalone financial

statements of M/SPURPLE ENTERTAINMENT LTD.

Report on the Internal Financial Controls under Clause {1) of Sub-section 3 of Sec.143of the

Companies Act 2013("the Ai:t")

We have audited the internal financial controls over financial reporting ofM/S PURPLEENTERTAINMENT LIMITED. ("the Company") as of March 312017 in conjunctionwith our 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 controls based on the internal control over financial reporting criteriaestablished by the Company

considering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial controls over Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance

of adequate internal financial controls that were operating effectively for ensuringthe orderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of fraud. anderrors the accuracy and completeness of the accounting records and the tim~lypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over

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financialreporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Finan~ial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controls

operated effectively in all !llaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe

• internal financial controls systems over financial reporti)1g and theiroperating effectiveness. Our audit of internal financial controls over financial reportingfncluded obtaining an understanding of

internal financial controls over financial reporting assessing the risk thi!t amaterial weakness

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exi~s and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the a!J.ditor'sJudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our a-udit 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 financial statements for external purpose in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail

accurately and fairly reflect the transactions and dispositions of the assets of thecompany. (2) provide reasonable assurance that transactions are recorded asnecess.ary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations

of management and directors of the company and (3) provide reasonable assuranceregarding prevention or t.imely detection of unauthorized acquisition use or dispositionof the company's assets that could have a material 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 of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the

internal financial controls over financial reporting to future periods are subject tothe risk that the internal financial control over financial reporting may becomeinadequate because of changes in

conditions or that the degree of compliance with the policies of procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting was

operating effectively as on March 312017 based on the internal control over financialreporting criteria est~blished by the Company considering the essential components ofinternal controls-stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reports issued by the Institute of Chartered Accountants of India.

For and on behalf of

KAMLESH BHOJANI & ASSOCIATES

Chartered Accountants

FRN

127505W •

KamleshBhojani

Prqprietor Memb. No.119808

Place: Ahmedabad

Date:30/05/2017