To the Members of M/s. BHARATIYA GLOBAL INFOMEDIA LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of M/s. BHARATIYAGLOBAL INFOMEDIA LIMITED which comprises the Balance Sheet as at March 31 2019 andthe standalone Statement of Profit and Loss (including comprehensive income) standalonestatement of change in equityandstandalonestatementofcashflowfor the year ended and notesto the financial statements including a summary of significant other explanatoryinformation.
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 adverse view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2019 and Profit other comprehensive Income change in equity and cash flow for theyear ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedsection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Basis for Adverse Opinion
According to the information and explanations given to us and based on our audit thefollowing observations have been identified as at March 31 2019:
1. Subject to non-provision of amount recoverable from inter-corporate depositsamounting to principal amount of Rs 5.40 crores alongwith accrued interest therebyincreasing the profit by the same amount as further detailed in note no. 35 of notes toaccounts non-provision of penalty imposed by SEBI of Rs. 6 crores as further detailed innote no 34 and confirmation and reconciliation of some of accounts as further detailed innote no. 29.
2. Chief financial officer of the Company has resigned from the company w.e.f. 30th May 2018. The company has not file the required information till date as required undersection 203 the act read with Rule 8 and Rule 8A of the companies (appointments &remuneration of Managerial Personnel) Rules 2014. And also not informed to the Ministryof Corporate Affairs for appointment of new Chief Financial officer w.e.f 12th June 2018.
Key audit matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed statements as a whole and in forming inthecontextofourauditofthefinancialour opinion thereon and we do not provide a separate opinion on these matters.
Reporting of key audit matters as per SA 701 Key Audit Matters are applicable to theCompany.
|Key Audit Matters ||Addressed the same in our Audit Report |
|Revenue Recognition ||Our audit procedures on revenue recognition included the following: |
|Recognition of revenue at a point in time based on satisfaction of performance obligation requires estimates and judgments regarding timing of satisfaction of cost incurred to segment/unit and the estimated cost for completion of some final pending works. || . We verified performance obligations satisfied by the Company; |
| || . We tested sale proceeds received from customers to test transfer of controls; |
|Due to judgment and estimates involved revenue recognition is considered as key audit matter || . We verified calculation of revenue to be recognised and matching of related cost; |
Responsibility of Management 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 Standalone financial statements that give a true and fair view of the financialposition and financial performance of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularitiesselection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the Standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company's financialreporting process
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Standalone financial statements.
Report on Other Legal and Regulatory Requirements
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 Act we give in the "Annexure A" a statement on the matters specified inthe paragraph 3 and 4 of the order to the extent applicable. As required by Section143(3) of the Act we report that:
a. We have sought but could not obtained all the information and explanations which tothe best of 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 not been kept by theCompany so far as it appears from our examination of those books
c. Except for the matter described in the Basis for Adverse Opinion paragraph abovethe Standalone Balance Sheet the Standalone Statement of Profit and Loss (including othercomprehensive income) the standalone statement of change in equity and the standalonestatement Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount;
d. Including for the matter described in the Basis for Adverse Opinion paragraph abovein our opinion the aforesaid financial statements not comply with the IND ASspecifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014;
e. The matter described in the Basis for Adverse Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company;
f. On the basis of the written representations received from the directors as on 31March 2019 taken on record by the Board of Directors none of the directors of the Companyis disqualified as on 31 March 2019 from being appointed as a director in terms of Section164(2) of the Act. g. With respect to adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B''. h. With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:
1. The Company is not having any pending litigations except as qualified above whichwould impact its financial position.
2. 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.
There has not been any occasion in case of the Company during the year under report totransfer any sums to the Investor Education and Protection Fund. The question of delay intransferring such sums does not arise.
Annexure - A to the Auditors' Report
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31st March 2019 we report that: I. Inrespect of the Company's fixed assets: a. The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets. b.The fixed assets of the Company were physically verified in full by the management duringthe year. According to the information and explanations given to us and as examined by usno material discrepancies were noticed on such verification. c. The Company have its ownimmovable property as per the standalone financial statement.
II. The inventory has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable. According to theinformation and explanations given to us and as examined by us no material discrepancieswere noticed on such verification.
III. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has granted any loans secured orunsecured to Companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Accordingly the provisions stated in paragraph 3(iii) of the order are applicable to the Company.
IV. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has granted any loans investmentsguarantees and security under the provisions of section 185 and 186 of the Act.Accordingly the provisions stated in paragraph 3 (iv) of the order are applicable to theCompany. V. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not accepted deposits withinthe meaning of section 73 to 76 of the act. Accordingly the provisions stated inparagraph 3 (v) of the order are not applicable to the Company.
VI. According to the information and explanations give to us and based on ourexamination of the records of the Company the Central Government has prescribed themaintenance of cost records under section 148(1) of the Act but these accounts and recordswere not applicable to the Company for the period ended 31st March 2019.
VII. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company Company has not been regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax tds sales-tax value added tax service tax duty of excise duty of customs.cess and any other statutory dues to the appropriate authorities. According to theinformation and explanations given to us the undisputed amounts payable in respect ofprovident fund employees' state insurance income tax tds sales tax value added taxservice tax duty of excise duty of customs cess and other statutory dues were inarrears as at 31st March 2019 for a period of more than six months from the date theybecame payable cannot be ascertained due to unavailability of the records except theamount of VAT of Rs . 23 01517/- and TDS of Rs. 865950/-
(b) According to the information and explanations given to us there are no materialdues of income tax tds sales tax value added tax service tax duty of customs duty ofexcise which have not been deposited with the appropriate authorities on account of anydispute.
|Name of the Statute ||Nature of dues ||Amount (In Rupees) ||Period to which the amount relates ||Remarks if any |
|Income Tax Act 1961 ||Demand u/s 115_WE ||127167 ||2009-10 ||Application for Rectification u/s 154 has already been submitted |
|Income Tax Act 1961 ||Demand u/s 220(2) ||119522 ||2011-12 ||Adjusted against refund of AY 2013-14 and 2014-15 |
|Income Tax Act 1961 ||Demand u/s 143(3) ||125620 ||2012-13 ||Adjusted against refund of AY 2013-14 and 2014-15 |
|Income Tax Act 1961 ||Demand u/s 143 (1)a ||26476140 ||2017-18 ||The management has informed us that there is a mistake in the intimation issued u/s 143(1)(a) the company will follow the matter and move application for rectification u/s 154 of the Income Tax Act 1961 and the actual demand will be nearly Rs 8 lakh instead of Rs 264.76 lakh. |
|Income Tax Act 1961 ||Demand u/s 234 E ||26400 ||2017-18 || |
| || ||21400 ||2016-17 || |
| || ||67468 ||2015-16 || |
| || ||200206 ||2014-15 || |
| || ||38400 ||2013-14 || |
| || ||42600 ||2012-13 || |
VIII. In our opinion and according to the information and explanations given to us thecompany has no outstanding dues to any financial institutions or banks or any governmentor any debenture holders during the year. Accordingly paragraph 3 (viii) of the order isnot applicable.
IX. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable. X. According to the information andexplanations given to us we are unable to comment whether any material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
XI. According to the records of the Company examined by us and as per the informationand explanations given to us managerial remuneration has been paid during the year. XII.According to the records of the Company examined by us and as per the information andexplanations given to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of the Order is not 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 withsections 177 and 188 of the Act where applicable as required by the applicable IND AS
XIV. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable.
XV. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the order is not applicable.
The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.
Annexure-B to the Independent Auditor's Report
Report on the Internal Financial Controls
We have audited the internal financial controls over financial reporting of BHARATIYAGLOBAL INFOMEDIA LIMITED (CIN No. L74999DL1994PLC062967) ("the Company") asof March 31 2019 in conjunction with our audit of the standalone IND AS financialstatements 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 Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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 and the Standards on Auditing as specified under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlsover financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe internal financial controls over 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 ofrecords that 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 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; and (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.
In our opinion the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.
| ||For SAMPRK & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Regn.No. 013022N |
| ||CA. Pankaj Sharma |
| ||Partner |
|Place: New Delhi ||M. No.093446 |
|Date: 30/05/2019 || |