Warner Multimedia Ltd.
|BSE: 511690||Sector: Financials|
|NSE: N.A.||ISIN Code: INE407B01017|
|BSE 10:30 | 31 Jul||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 511690||Sector: Financials|
|NSE: N.A.||ISIN Code: INE407B01017|
|BSE 10:30 | 31 Jul||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of
Warner Multimedia Limited Report on the Financial Statements
1. We have audited the accompanying financial statements of M/s. Warner MultimediaLimited (the Company) which comprises the Balance Sheet as at 31st March 2017 theStatements of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation and presentations ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementswhether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our 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 and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' 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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 2017 and its Losses and its cash flows for the year ended on that date.
Emphasis of Matter a. Confirmation of balances of Loans and Advances are notavailable for verification. b. The Share Capital of the Company has fully erosion andhaving huge carried forward losses.
Report on other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's 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 of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure "A" astatement on the matters specified in paragraphs 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 Sheetthe Statement of Profit and Loss and the Cash Flow Statement dealt with by this report arein the agreement with the books of accounts; (d) In our opinion the Balance Sheet theStatement of Profit and Loss and Cash Flow Statement comply with the Accounting Standardsreferred to in section 133 of the Companies Act 2013 read with rule 7 of the Companies(Accounts) Rules 2014.
(e) The going concern matter described in sub-paragraph (b) under the Emphasis ofMatters paragraph above in our opinion may have an adverse effect on the functioning ofthe Company.
(f) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on records by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164(2) of the Companies Act 2013; (g) With respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in Annexure "B".
(h) 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 knowledge and according the explanations given to us we reportthat : i. The Company has disclosed the impact of pending litigations if any on itsfinancial position in its financial statements; however there isn't any litigationspending against the name of the company so far as appeared from the records and has beentold to us by the management. ii. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts; however no such losses are beenforeseeable in near future by the company's management.
iii. There has been no requirement in transferring amounts to the Investor Educationand Protection Fund by the Company. iv. The Company has provided requisite disclosures inits financial statements as to holdings as well as dealings in Specified Bank Notes duringthe period from 8 November 2016 to 30 December 2016 and these are in accordance with thebooks of accounts maintained by the Company. Refer Note 2.19 to the standalone Ind ASfinancial statements.
ANNEXURE "A"TOTHE INDEpENDENTAUDITORS' REpORT
Referred to in paragraph 9 of the Independent Auditor's report on the accounts of acompany to which this Order applies shall include a statement on the following mattersnamely:-(i) (a) The company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets; (b) These fixedassets have been physically verified by the management at reasonable intervals; Nomaterial discrepancies were noticed on such verification. (ii) The Company is maintainingproper records of investments and there is no any material discrepancy noticed. (iii) Thecompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly the provisions of Clause 3(iii) of the Orderare not applicable to the Company (iv) In our opinion and according to the informationand explanations given to us the Company has complied with the provisions of Section 185and Section 186 of the Companies Act 2013 in respect of the loans and investments madeand guarantees and security provided by it is not applicable on the company.
(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified. Accordingly the provisions of Clause 3(v) of the Order are not applicable tothe Company (vi) The Central Government has not prescribed the maintenance of cost recordsunder section 148(1) of the Act for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in thebooks of account in respect of undisputed statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities.
(b) According to the information and explanations given to us no disputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at 31March 2017 for a period of more than six months from the date they became payable. (c)According to the information and explanations given to us the dues outstanding of incometax sales-tax service tax duty of customs duty of excise or value added tax whichhave not been deposited on account of any dispute are as follows:
(d) The Company is not required to transfer any funds to the Investor Education andProtection Fund in accordance with the relevant provisions of the Companies Act.
(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or
Government or dues to debenture holders as at the balance sheet date except disputedamount payable to M/s Rural Electrification Corporation Ltd. As informed to us the matteris sub-judice in the Court of Law.
(ix) In our opinion and according to the information and explanations given to usthere was no money raised by way of Initial public offer or any term loan accordinglythe provisions of Clause 3(ix) of the Order are not applicable to the Company (x) Duringthe course of our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the Management.
(xi) During the course of our examination of the books and records of the Company andaccording to the information and explanations given to us the company has paid managerialremuneration within the limits specified under Schedule V of Companies Act 2013. (xii) Asthe Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable to it theprovisions of Clause 3(xii) of the Order are not applicable to the Company.
(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts)Rules 2014; (xiv) The Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly the provisions of Clause 3(xiv) ofthe Order are not applicable to the Company.
(xv) The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.
(xvi) The Company is not required to be registered itself under section 45-IA of theReserve Bank of India Act 1934.
ANNEXURE "B"TOTHE INDEpENDENT AUDITORS' REpORT
Referred to in paragraph 10(g) of the Independent Auditors' Report of even date to themembers of Warner Multimedia Limited on the financial statements for the year ended March31 2017
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act
We have audited the internal financial controls over financial reporting of M/s.Warner Multimedia Limited ("the Company") as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon 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 Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 Act.
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 deemed to be prescribedunder section 143(10) of the Act tothe extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued bythe ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls 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 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition off the company's assets that could have amaterial 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.
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 2017 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.