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Quadrant Televentures Ltd.

BSE: 511116 Sector: Telecom
NSE: N.A. ISIN Code: INE527B01020
BSE LIVE 15:52 | 18 Aug 2.43 0.07
(2.97%)
OPEN

2.30

HIGH

2.48

LOW

2.29

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.30
PREVIOUS CLOSE 2.36
VOLUME 12975
52-Week high 4.25
52-Week low 2.01
P/E
Mkt Cap.(Rs cr) 149
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.43
Sell Qty 853.00
OPEN 2.30
CLOSE 2.36
VOLUME 12975
52-Week high 4.25
52-Week low 2.01
P/E
Mkt Cap.(Rs cr) 149
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.43
Sell Qty 853.00

Quadrant Televentures Ltd. (QUADRANTTELE) - Auditors Report

Company auditors report

TO THE MEMBERS OF

QUADRANT TELEVENTURES LIMITED

1 Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of QuadrantTeleventures Limited ("the Company") which comprise the standalone BalanceSheet as at March 31 2016 the Standalone Statement of Profit and Loss and Cash FlowStatement for the year ended and a summary of the significant accounting policies andother explanatory information.

2 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 preparation ofthese standalone 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 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 from materialmisstatement whether due to fraud or error.

3 Auditor's Responsibility

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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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.

4 Opinion

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 March 31 2016 and its loss and its cash flows for the year ended on that date.

5 Emphasis of Matters

We draw attention to Note No. 28 to the financial statements the Company has incurreda net loss of Rs. 1348104827/- during the year the accumulated losses as at March 312016 amounted to Rs. 17638407752/- resulting in the erosion of its net worth and hasnet current liabilities of Rs. 12713562129/- as at March 31 2016. These factors raisea doubt that the Company will not be able to continue as a going concern. The managementis confident of generating cash flows from business operations through increasingsubscribers' base and with the support of significant shareholders to fund its operatingand capital fund requirements. Accordingly these statements have been prepared on a goingconcern basis. Our opinion is not qualified in respect of this matter.

6 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 Companies Act 2013 we give in the Annexure "A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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 Standalone Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Companies Act 2013 read with Rule7 of the Companies (Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofsub-section (2) of Section 164 of the Companies Act 2013;

(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:

a. The Company's pending litigations comprise of claims against the Company andproceedings pending with Tax Authorities. The Company has reviewed all its pendinglitigations and proceedings and has made adequate provisions wherever required anddisclosed the impact of pending litigations on its financial position in its financialstatements as referred to in Note No. 25 and 27 of the financial statements;

b. The Company periodically reviews all its long term contracts to assess for anymaterial foreseeable losses. Based on such review the Company has made adequateprovisions for material foreseeable losses if any on long term contracts in the books ofaccount as required under any applicable law / Accounting Standard and as at March 312016 the Company did not have any outstanding long term derivative contracts as referredto in Note No. 27 of the financial statements;

c. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

For KHANDELWAL JAIN & Co
Chartered Accountants
Firm's Registration No. 105049W
Naveen Jain
Place: Mohali (Partner)
Date: May 27 2016 Membership No. 511596

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

Annexure referred to in paragraph 6(1) of the Independent Auditors' Report of even dateto the Members of Quadrant Televentures Limited on the standalone financial statements forthe year ended 31st March 2016 we report that:

I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situations of its Fixed Assets.

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets and as informed nomaterial discrepancies were noticed on such verification.

(c) According to information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of the immovable properties areheld in the name of the company.

II. As per the information furnished the Inventories have been physically verified bythe management at reasonable intervals during the period. In our opinion having regard tothe nature and location of stocks

the frequency of physical verification is reasonable. In our opinion the discrepanciesnoticed on physical verification of stocks were not material in relation to the operationof the Company and the same have been properly dealt with in the books of account.

III. According to information and explanations given to us the Company has not grantedany loans secured or unsecured to companies firms and other parties covered in theregister maintained under section 189 of the Companies Act 2013. Accordingly paragraph3(iii)

(a) and (b) of the Order are not applicable.

IV. In our opinion and according to the information and explanations given to us thecompany has in respect of loans investments guarantees and security complied with theprovisions of section 185 and 186 of the Companies Act 2013.

V. In our opinion and according to the information and explanation given to us theCompany has not accepted any deposits within the meaning of the provisions of Sections 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder.

VI. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government undersub section (1) of section 148 of the Companies Act 2013 and we are of the opinion thatprima-facie the prescribed accounts and records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

VII. (a) According to the information and explanations given to us and records examinedby us the Company has generally been regular in depositing undisputed statutory dues withthe appropriate authorities in respect of provident fund employees' state insuranceincome-tax VAT service tax excise duty and other statutory dues applicable to it withthe appropriate authorities. According to the information and explanations given to usthere are no undisputed amounts payable in respect of such statutory dues at the year endfor a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us the dues of Income Taxwhich have not been deposited on account of disputes and the forum where the dispute ispending as under:

SL. No. Name of the Statute Nature of Dues Year Amounts Forum where dispute is pending
1 The Income Tax Act 1961 Income Tax 2000-01 7004687 Income Tax Appellate Tribunal

VIII. According to the information and explanations given to us and records examined byus as at the Balance Sheet date the Company has not defaulted in repayment of dues togovernment or financial institution or banks or debenture holders.

IX. As per information given to us no money was raised by way of initial public offeror further public offer (including debt instruments) and no term loan has been takenduring the year by the company.

X. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the course of our audit.

XI. According to the information and explanation given to us and the books of accountsverified by us the Managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with the Schedule Vto the Companies Act.

XII. The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the order isnot applicable.

XIII. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of Companies Act 2013 where applicable and details ofsuch transactions have been disclosed in the Financial Statements as required by theapplicable accounting standards.

XIV. According to information and explanations given to us the Company during the yearhas not made any preferential allotment as private placement of shares or fully or partlyconvertible debentures. Accordingly paragraph 3(xiv) is not applicable.

XV. According to the information and explanation given to us and certified by themanagement the company has not entered into any non-cash transaction with directors orpersons connected with him.

XVI. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For KHANDELWAL JAIN & Co
Chartered Accountants
Firm's Registration No. 105049W
Naveen Jain
Place: Mohali (Partner)
Date: May 27 2016 Membership No. 511596

ANNEXURE "B" TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

TO THE MEMBERS OF QUADRANT TELEVENTURES LIMITED

We have audited the internal financial controls over financial reporting of QUADRANTTELEVENTURES LIMITED

("the Company") as of March 31 2016 in conjunction with our audit of thestandalone 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 statedin the guidance note on Audit of Internal financial control over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

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 as specified under Section143 (10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by Institute of Chartered Accountants of India. Those standards and the guidancenote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate Internal financial controls overfinancial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control 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 judgment 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 sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial 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 purposes 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 in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with the generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany'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 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.

Opinion

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 312016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For KHANDELWAL JAIN & Co
Chartered Accountants
Firm's Registration No. 105049W
Naveen Jain
Place: Mohali (Partner)
Date: May 27 2016 Membership No. 511596