BMB Music And Magnetics Limited Jaipur
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS Financial Statements of BMB MUSIC AND MAGNETICSLIMITED ("The Company") which comprise the Balance Sheet as at 31stMarch 2020 the statement of Profit and Loss the cash flow statement & the statementof changes in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.
Management's Responsibility for the financial Statements:
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation ofthese Ind AS Financial Statements that give true and fair view of the financial positionand financial performance including cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in Indiaincluding the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014 & the Companies (Indian Accounting Standards)Rules 2015 as amended. 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 irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; in design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS financial statements that give a true and fair view and is freefrom material misstatement whether due to fraud or error. V
Our responsibility is to express an opinion on these Ind AS financial statements basedon cur audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provision of the Act and the Rules made thereunder.
We conducted our audit of the Ind AS Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The Procedures selected depend on the auditors'judgement including the assessment of the risks of material misstatement of the Ind ASfinancial statement whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the company's preparation of theInd AS financial Statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting polices used and the reasonableness of theaccounting estimates made by the company directors as well evaluating the overallpresentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our Audit opinion of the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 31st March 2020 and its loss including its cash flows and the changes in Equityfor the year ended on that date.
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 in theparagraph 3 & 4 of the order.
As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations to the best of ourknowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of accounts 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 & Loss including the Cash FlowStatement & Statement of Changes in Equity dealt with by this report are in agreementwith the books of account.
d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rule 2014 & the Companies (Indian Accounting Standards) Rules 2015 asamended.
e) On the basis of written representations received from the directors as on March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls as per theChapter X Clause (i) of sub-section (3) of Section 143 of the Companies Act 2013 isapplicable on the Company as Per Annexure-B
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:
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 derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company
"ANNEXURE-A" TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in Independent Auditor's Report to the members of the Companyon the Standalone financial statements for the year ended 31 March 2020 we report that:
|(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative detail and situation of fixed assets; ||THE COMPANY HAS MAINTAINED PROPER RECORDS SHOWING FULL PARTICULARS INCLUDING QUANTITATIVE DETAILS AND SITUATION OF FIXED ASSETS IN COMPUTER. |
|(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed in such verification and if so whether the same have been properly dealt with in the books of accounts; ||YES & NO DISCREPANCIES WERE OBSERVED |
|(c) Whether title deeds of immovable properties are held in YES & NO the name of the company. If not provide details thereof. ||YES & NO DISCREPANCIES WERE OBSERVED |
|(ii) Whether Physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so how they have been dealt with in the books of accounts. ||AS THE COMPANY IS DOING BUSINESS IN FILM PRODUCTION SECTOR ITS INVENTORY IS ITS DIRECT COST INCURRED DURING THE YEAR FOR PRODUCTION OF FILMS WHICH GETS VERIFIED TIME TO TIME BY THE MANAGEMENT. |
|(iii) Whether the company has granted any loans secured or unsecured to companies firms Limited Liability partnerships or other parties covered in section 189 of the Companies Act 2013. If so ||AS PER EXPLANATION GIVEN BY THE MANAGEMENT AND FROM THE EXAMINATION OF THE BOOKS OF ACCOUNTS NO SUCH CASE FOUND. |
|(a) Whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest: || |
|(b) Whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular and || |
|(c) If the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest. || |
|(iv) In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide details thereof. ||FOLLOWING ARE LOAN ACCOUNT WHICH HAVE VOILATION OF SEC 185 ARE AS UNDER: |
| ||(1) RAJESH BOKADIA: 150000 |
| ||FOLLOWING ARE LOAN ACCOUNT WHCH HAVE VIOLATION OF SEC.186(7) ARE AS UNDER: |
| ||(1) ARTAGE SECURITIES PVT.LTD:- |
| ||(2) BMB PICTURES: |
| ||(3) CLASSIC PICTURES: |
| ||(4) KHALSA MOTOR GENERAL FINANCE CO. |
| ||(5) METRO MOVIES: |
| ||(6) PARAS JAIN: |
| ||(7) PELICON FABRICS LTD: |
|(v) In case the company has accepted deposits from the public whether the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provision of the Act and the rules framed there under where applicable have been complied with if not the nature of contraventions should be stated; if an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal whether the same has been complied with or not? ||THE COMPANY HAS ACCEPTED FOLLOWING DEPOSIT FROM THE PUBLIC: |
| ||(1) Abhishek Jain MGR films: Rs.50000 |
| ||(2) Rang Sangam: Rs. 100000 |
| ||(3) Banglor distributer: 25000 |
| ||(4) Chaplot Bhilwara: 150000 |
| ||(5) Gautam Chand Rathore: 3286947.58 |
|Where maintenance of cost records has been prescribed by the Central Government under sub-section (1) of section 148 of the Act where such accounts and records have been made and maintained; ||NOT APPLICABLE |
|(vii) (a) Whether the company regular in depositing undisputed i statutory dues including Provident Fund Investor Education and protection fund Employees' State Insurance Income Tax Sales Tax Wealth tax Custom Duty Excise Duty cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last date of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; ||AS PER INFORMATION & EXPLANATION GIVEN TO US THERE IS STATUTORY DUE OUTSTANDING FOR TDS LIABILITY AMOUNTING Rs. 3049619.64 AS AT LAST DATE OF FINANCIAL YEAR 2020 OUT OF WHICH Rs. 3037119 RELATES TO PRIOR LAST SIX MONTHS. |
|(b) Where dues of sales tax/income tax/service tax/ custom tax/excise duty/cess have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. || |
|(A mere representation to the concerned Department shall not constitute the dispute) || |
|(viii) Whether the company has defaulted in repayment of loans or borrowings to a financial institution or bank or government or dues to debenture holders? If yes the period and amount of default to be reported; (in case of banks and financial institutions lender wise details to be provided). ||THE COMPANY DOES NOT HAVE ANY LOANS OR BORROWINGS FROM ANY FINANCIAL INSTITUTIONS BANKS GOVERNMENT OR DEBENTURE HOLDERS DURING THE YEAR. ACCORDINGLY THIS PARA IS NOT APPLICABLE. |
|(ix) Whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were i applied for the purposes for which those are raised. If not the details together with delays/ default and subsequent : rectification if any as may be applicable be reported. ||NOT APPLICABLE |
|(x) Whether any fraud by the company or any fraud on the company by its officers/ employees has been noticed or reported during the year If yes the nature and the amount involved be indicated. ||AS PER THE MANAGEMENT THERE IS NO SUCH CASE AS ON THE DATE OF BALANCE SHEET. |
|(xi) Whether managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing of the same. ||NO MANAGEMENT REMUNERATION PAID DURING THE YEAR HENCE NOT APPLICABLE. |
|(xii) Whether the Nidhi Company has complied with the Net Owned Fund in the ratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining 10% unencumbered term deposits as specified in the Nidhi rules 2014 to meet out the liability. ||NOT APPLICABLE |
|(xiii) Whether all transactions with related parties are in compliance with section 188 and 177 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc as required by the accounting standards and Companies Act 2013. ||ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US BY THE MANAGEMENT ALL TRANSACTIONS WITH THE RELATED PARTIES ARE PROPERLY DISCLOSED IN THE NOTES TO ACCOUNTS AND NO AUDIT COMMITTEE IS CONSTITUTED BY THE COMPANY. |
|(xiv) Whether the company has made any preferential allotment/ private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of Section 42 of the companies act 2013 have been complied and the amount raised have been used for the purpose for which the funds were raised. If not provide details thereof. ||NOT APPLICABLE |
|(xv) Whether the company has entered into any non- cash transactions with directors or persons connected with him and if so whether provisions of section 192 of Companies Act 2013 have been complied with. ||ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US AND BASED ON OUR EXAMINATION OF THE RECORDS OF THE COMPANY THE COMPANY HAS NOT ENTERED INTO NON CASH TRANSACTIONS WITH DIRECTORS OR CONNECTED HENCE THIS PARA NOT APPLICABLE. |
|Whether the company is required to be registered under (xvi) section 45-IA of Reserve Bank of India Act 1934 and if so whether the registration has been obtained. ||THE COMPANY IS NOT REQUIRED TO BE REGISTERED UNDER SECTION 45-IA OF THE RESERVE BANK OF INDIA ACT 1934. |