To the Members of
QUANTUM DIGITAL VISION (INDIA) LIMITED.
Report on the Financial Statements
We have audited the accompanying standalone financial statements of QUANTUM DIGITALVISION (INDIA) LIMITED ("the Company") which comprises of the Balance Sheetas at 31st March 2015 the Statement of Profit and Loss Cash Flow Statementfor the year then ended and the summary of significant accounting policies and otherexplanatory information.
Management Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies
Act 2013 ("the Act") with respect to the preparation and presentation 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.
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 and the Rules made thereunder theaccounting and auditing standards and matters which are required to be included in theaudit report.
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 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 a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2015; b) In the case of the Statement of Profit and Loss of the loss for the yearended on that date; and c) In the case of the Cash Flow Statement of the cash flows forthe year ended on that date.
Emphasis of Matter
Without qualifying the opinion we invite attention to: a. Balances of Sundry DebtorsSundry Creditors Loans and Advances and various other debit/credit balances are subjectto confirmations and adjustments necessary upon reconciliation. Adjustments if any willbe made in the year in which confirmations are received.
Report on Other Legal and Regulatory Requirements
1. As required by The Companies (Auditors Report) Order 2015 issuedby the Central
Government of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the
Company as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure a statement on the matters specified in paragraphs 3and 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 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) on the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act. f) With respect to the other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations 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 forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
Annexure to Independent Auditors Report
Referred to in paragraph 1 under the heading "Report on Other Legal and regulatoryRequirements" of our Report of even date
(i) In respect of fixed assets:
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.(b) All the assets have not been physically verified by the management during the year butthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets. No material discrepancieswere noticed on such verification.
(ii) In respect of its Inventories:
(a) As explained to us inventories have been physically verified during the year bythe management at year end. In our opinion the frequency of verifications is reasonable.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory. As explained to us therewas no material discrepancy noticed on physical verification of inventories as compared tothe book records.
(iii) The Company has neither taken nor granted secured or unsecured to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013.
(iv) In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the company and thenature of its business with regard to purchases of inventory fixed assets and with regardto the sale of goods and services. Further on the examination of books and records of thecompany according to the information and explanations given to us we have neither comeacross nor have been informed of any continuing failure to correct major weakness inInternal Controls System.
(v) The company has not accepted any deposits from the public within the meaning of thesection 73 and 74 of the Act and rules framed there under to the extent notified.
(vi) The maintenance of cost records under section 148(1) of the Companies Act 2013has not been prescribed by the Central Government.
(vii) (a). According to the information and explanations given to us and on the basisof our examination of the records of the Company the company is generally regular indepositing with the appropriate authorities undisputed statutory dues including incometax sales tax wealth tax service tax cess and other material statutory dues. Therewere no material statutory dues which were in arrears as at 31st March 2015 fora period of more than six months from the date they became payable.
(b). According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute. However according to information andexplanations given to us the following dues of sales tax have not been deposited by theCompany on account of disputes.
|Name of the Statute ||Nature of Dues ||Amount(In Rs.) ||Period to which the amount relates ||Forum where dispute is pending |
|Sales Tax ||Sales Tax Interest & Penalty ||Rs. 830434/- ||FY 2010-11 ||Deputy Commissioner of Sales Tax Appeals (1) Mazgaon Mumbai |
(c) There are no such amount required to be transferred to Investor Education andProtection Fund.
(viii) The accumulated losses of the company are more than fifty percent of its networth. The company has incurred cash losses of Rs.1896175/- during the financial yearcovered by our audit and had not incurred any cash losses in the immediately precedingyear.
(ix) Based on our audit procedures and according to the information and explanationsgiven to us the company has not defaulted in repayment of dues to a financial institutionor bank.
(x) Based on our examination of the records and the information and explanation givento us the company has not given any guarantee for loans taken by others from banks orfinancial institutions.
(xi) According to the information and explanation given to us the company has notraised any new term loans during the year.
(xii) Based on our examination of the books and records of the company carried out inaccordance with the generally accepted auditing practice in India and according to theinformation and explanations given to us no fraud on or by the company has been noticedor reported during the year.
For SHAH & TAPARIA
Ramesh Pipalawa Partner M. No. 103840
Place: Mumbai Date: 25/05/2015