To the Members
UNIVERSAL ARTS LIMITED (Formerly Known as Goldmines Media Limited)
CIN: - L22300MH1995PLC091082 -
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of UNIVERSAL ARTSLIMITED(Formerly Known as Goldmines Media Limited)("the Company") whichcomprise the Balance Sheet as at March 31st 2015 and the Statement of Profitand Loss for the period 1sl July 2014 till year then ended and a summary ofsignificant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS.
Management and Board of Directors of the Company are responsible for the matters statedin Section 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 Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 and auditingstandards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards 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 audit evidence about the amounts anddisclosures 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 todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by the Company's managementand Board of Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
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 2015itsProfitand its Cash Flow for the period 1st July 2014 ended onthat date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2015 (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 statement on the matters specified in paragraphs 3 and4 of the Order.
2. As required by section 143(3) of the Act we report that:
a) We have sought obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.
c) The Balance Sheet and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account.
d) In our opinion the Balance Sheet and Statement of Profit and Loss comply with theAccounting Standards referred to in Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on March 312015 none of the directors is disqualified as on March 31 2015 from being appointed asa director in terms of subsection (2) of Section 164 of the Act.
f) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:
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 not arise
iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise
For SekhriKanodia& Associates
Chartered Accountants Firm No.: 109389W
Membership No: 032103
ANNEXURE TO THE AUDITORS REPORT (Period 1st July 2014 to 31stMarch 2015)
(REFFERED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE)
As required by the Companies (Auditor's report) Order 2015 issued by the CentralGovernment of India in terms of Sub-section (11) of section 143 of the Companies Act 2013and on the basis of such check as were considered appropriate and according to theinformation and explanation and representation given to us we report:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
The Company's inventory consists of intangible rights of movies.
a) & b) The said Intangible rights cannot be physically verified but the documentscreating rights in the said Intangible rights are available.
c) The Company is maintaining proper records of the inventory.
i. The Company has not taken loans from parties listed in register maintained u/s 189of the Companies Act 2013.
The Company has granted loans and advances to companies firms or other parties aslisted in the register maintained under section 189 of the companies Act 2013. Theyear-end balance of loans and advances given to suchparties was Rs6210000 MaximumOutstanding was Rs6310000.
ii. There are adequate internal control procedures commensurate with the size of theCompany and the nature of its business being buying and selling of film rights. To thebest of our knowledge no major weaknesses in internal control system were either reportedor noticed by us during the course of our audit.
iii. According to the information & explanations provided to us the company hasnot accepted any deposits - from the public to which the directives issued by the ReserveBank of India and the provisions of Section 73
to 76 of the Companies Act 2013 and other relevant provisions of the Companies Act2013 and the rules framed there under apply.
iv. We have been informed that the central government has not prescribed for themaintenance of cost records under sub-section (1) of section 148 of the Companies Act2013.
v. (a) According to the records of the company undisputed statutory dues includingIncome-tax Sales-tax Wealth Tax Service Tax and entry tax to the extent applicable andany other statutory dues have been regularly deposited with the appropriate authorities.According to the information and explanations given to us there were no outstandingstatutory dues as on 31st of March 2015 for a period of more than six months from thedate they became payable.
(b) We have been informed that no undisputed amount payable in respect of Income taxWealth tax Sales tax Customs duty Excise duty and Service tax were outstanding as at31st March 2015 for a period of more than six months from the date they became payable.We have been informed that the provisions of the Investor Education and Protection FundEmployees State Insurance Act Sales Tax Custom Duty and Excise Duty are not applicableto the Company for the period 1st July 2014 to 31st March 2015.
vi. The Company has accumulated losses at the end of the financial year which does notexceed 50% of itsnet worth. Also the Company has not incurred cash losses duringthe financial period 1st July 2014 and ended on March 31 2015.
vii. The Company has not defaulted in repayment of dues to any financial institution orbank or debenture holders.
viii. According to information and explanations given to us the Company has not givenany guarantee for loans taken by others from banks or financial institutions during theperiod 1st July 2014 to 31st March 2015.
ix. The Company has not availed any term loans during the period 1st July2014 to 31st March 2015.
x. Based on the audit procedure performed and the representation obtained from themanagement we report that in no case fraud on or by the company has been noticed orreported during the period 1st July 2014 to 31st March 2015.
For SekhriKanodia& Associates Chartered Accountants
Firm No. 109389w
Ajay Sekhri- Partner Membership No. 032103
Place: - Mumbai