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Colorchips New Media Ltd.

BSE: 540023 Sector: Media
NSE: N.A. ISIN Code: INE621I01026
BSE 15:16 | 26 Apr 99.65 -1.35
(-1.34%)
OPEN

101.00

HIGH

101.60

LOW

86.05

NSE 05:30 | 01 Jan Colorchips New Media Ltd
OPEN 101.00
PREVIOUS CLOSE 101.00
VOLUME 4103
52-Week high 305.50
52-Week low 45.05
P/E 9965.00
Mkt Cap.(Rs cr) 170
Buy Price 83.45
Buy Qty 20.00
Sell Price 96.70
Sell Qty 1.00
OPEN 101.00
CLOSE 101.00
VOLUME 4103
52-Week high 305.50
52-Week low 45.05
P/E 9965.00
Mkt Cap.(Rs cr) 170
Buy Price 83.45
Buy Qty 20.00
Sell Price 96.70
Sell Qty 1.00

Colorchips New Media Ltd. (COLORCHIPSNEW) - Auditors Report

Company auditors report

To The Members of

The Millitoons Entertainment Limited Hyderabad

Report on Standalone Ind AS Financial Statements

We have Audited the accompanying standalone Ind AS financial statements of TheMillitoons Entertainment Limited ("the Company") which comprise the BalanceSheet as at 31st March 2018 and the Statement of Profit and Loss (includingOther Comprehensive Income) the Cash Flow Statement and the Statement of Changes inEquity for the year then ended and a summary of the significant accounting policies andother explanatory information.

Management’s Responsibility for the Standalone 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 Ind AS financial statements that give a true and fair view of the stateof affairs(financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act.

This responsibility also 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; 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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

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 report under theprovisions of the Act and the Rules made there under.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the

accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required except-

1. Accrued interest income is not accounted

2. Fixed Deposit Receipts are not available for verification.

and Give a true and fair view in conformity with the accounting principles generallyaccepted in India including the Ind AS of

i. the state of affairs (financial position) of the Company as at 31stMarch 2018 and

ii. its profits (financial performance including other comprehensive income)

iii. its cash flows ( cash flows for the year ended on that) and

iv. The changes in equity for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended 31st March 2017and the transition date opening balance sheet as at 1st April 2016 included inthese standalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by the predecessor auditor whose report for the year ended 31stMarch 2017 and 31stMarch 2016 dated 29/05/2017 and 30/05/2016 respectively expressed anunmodified opinion on those standalone financial statements as adjusted for thedifferences in the Accounting principles adopted by the Company on transition to the IndAS which have been audited by us.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of 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 the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

e) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"

f) 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 doesn’t have any pending litigations on its financial position inits Standalone Ind AS financial statements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There are no amounts which are required to be transferred to the InvestorEducation and Protection during the year ended 31st March 2018.

For S N MURTHY & Co
Chartered Accountants
FRN No. 0022175
Sd/-
P V S N Murthy
Place: Hyderabad (Proprietor)
Date: 30/05/2018 M.No.21862

Annexure- A

A statement on the matters specified in paragraphs 3 and 4 of the CARO 2016

As required by the Companies ( Auditor’s Report) order 2016 issued by theGovernment of India in terms of Section 143(11) of the Companies Act 2013 we reportthat:

(i) In respect of its Fixed Assets:

(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The company has a phased programme of verification of fixed assets that isreasonable having regard to the size of the company and the nature of its business. As perthe Phased Programme during the year the management has carried out physicalverification of fixed assets and discrepancies noted have been properly dealt within thebooks of account.

(c) According to the information and explanations given to us by the management allthe title deeds of immovable properties are held in the name of the company.

(ii) In respect of its Inventory:

a. The company has conducted physical verification of its inventory during the year ina phased manner.

b. In our opinion having regard to the size of the company and nature of its businessthe frequency of inventory verification process is reasonable and commensurate.

c. Any material discrepancies were noticed between book stocks and physical stockshave been properly dealt in books of account.

(iii) In our opinion and according to the information and explanations given to us thecompany has not entered any contract or arrangement with the entities in which thedirectors are interested within the meaning under section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to usthere are no such loans investments guarantees and securities to which provision ofsection 185 and 186 of the companies Act 2013 are applicable.

(v) The company has not accepted the deposits

(vi) Clause (vi) of Paragraph 3 of the Companies (Auditor’s Report) Order 2016relating to maintenance of cost records is not applicable to the Company.

(vii) According to the information and explanations given to us and records of theCompany examined by us in our opinion.

(a) There was no undisputed amounts payable in respect of Provident Fund ESIIncome-tax Sales Tax Wealth Tax service tax customs duty Excise duty VAT Cess andstatutory dues in arrears as at March 31 2018 for a period of more than six months fromthe date they became payable.

(b) There were no dues outstanding in respect of Sales Tax Income Tax Wealth TaxService Tax Customs Duty Excise Duty or VAT or Cess on account of any dispute.

(viii) According to information and explanation given to us and based on records of thecompany examined by us the company has not defaulted in repayment of loans or borrowingsto any financial institution bank Government or due to debenture holders.

(ix) The company did not raise any money by way of initial public offer (IPO) orfurther public offer (FPO) (including debt instruments) and term loans raised are used forthe purpose for which it was raised during the year.

(x) There is no fraud by the Company or any fraud on the Company by its officers andemployees has been noticed or reported during the year.

(xi) The Company has not paid managerial remuneration as per provisions of section 197of the Companies Act 2013.

(xii) The Company is not a Nidhi Company Accordingly Paragraph 3(xii) of the order isnot 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 are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given 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 under review;

(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 any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934

For S N MURTHY & Co
Chartered Accountants
FRN No. 0022175
Sd/-
P V S N Murthy
Place: Hyderabad (Proprietor)
Date: 30/05/2018 M.No.21862

Annexure - B to the Independent Auditors of even date on the Standalone Financial

Statements of the Millitoons Entertainment Limited

(Referred to in paragraph 2(e) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date to the Members of MillitoonsEntertainment Limited.

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Controls over Financial reporting of MillitoonsEntertainment Limited. ("the Company") as of March 31 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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 Companies Act 2013.

Auditor’s Responsibility

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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 procedures selected depend on the auditor’s judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea 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.

Opinion

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 31 March 2018 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.

For S N MURTHY & Co
Chartered Accountants
FRN No. 0022175
Sd/-
P V S N Murthy
Place: Hyderabad (Proprietor)
Date: 30/05/2018 M.No.21862