You are here » Home » Companies » Company Overview » Cosmo Films Ltd

Cosmo Films Ltd.

BSE: 508814 Sector: Industrials
NSE: COSMOFILMS ISIN Code: INE757A01017
BSE 10:32 | 23 Oct 204.30 2.65
(1.31%)
OPEN

204.30

HIGH

204.30

LOW

204.30

NSE 10:23 | 23 Oct 203.05 0.50
(0.25%)
OPEN

202.75

HIGH

203.70

LOW

202.00

OPEN 204.30
PREVIOUS CLOSE 201.65
VOLUME 1
52-Week high 269.30
52-Week low 161.00
P/E 5.52
Mkt Cap.(Rs cr) 397
Buy Price 202.20
Buy Qty 48.00
Sell Price 204.40
Sell Qty 7.00
OPEN 204.30
CLOSE 201.65
VOLUME 1
52-Week high 269.30
52-Week low 161.00
P/E 5.52
Mkt Cap.(Rs cr) 397
Buy Price 202.20
Buy Qty 48.00
Sell Price 204.40
Sell Qty 7.00

Cosmo Films Ltd. (COSMOFILMS) - Auditors Report

Company auditors report

To the Members of Cosmo Films Limited Report on the StandaloneFinancial Statements

1. We have audited the accompanying standalone financial statements ofCosmo Films Limited (‘the Company') which comprise the Balance Sheet as at 31March 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone FinancialStatements

2. The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (‘the Act') with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe state of affairs (financial position) profit or loss (financial performance includingother comprehensive income) cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (‘Ind AS') specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

4. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and planand perform the audit to obtain reasonable assurance aboutwhether these standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial controls relevant to theCompany's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as wellas evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on these standalone financialstatements.

Opinion

8. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including Ind ASspecified under Section 133 of the Act of the state of affairs (financial position) ofthe Company as at 31 March 2018 and its profit (financial performance including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Other Matter

9. The Company had prepared separate sets of statutory financialstatements for the year ended 31 March 2017 and 31 March 2016 in accordance withAccounting Standards prescribed under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (as amended) on which we issued auditor's reports tothe shareholders of the Company dated 17 May 2017 and 11 May 2016 respectively. Thesefinancial statements have been adjusted for the differences in the accounting principlesadopted by the Company on transition to Ind AS which have also been audited by us. Ouropinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 2016(‘the Order') issued by the Central Government of India in terms of Section143(11) of the Act we give in the Annexure I a statement on the matters specified inparagraphs 3 and 4 of the Order.

11. Further to our comments in Annexure I as required by Section143(3) of the Act we report that: a) we have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposeof our audit; b) In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books; c) the standalonefinancial statements dealt with by this report are in agreement with the books of account;d) in our opinion the aforesaid standalone financial statements comply with IndASspecified under Section 133 of the Act; e) on the basis of the written representationsreceived from the directors and taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2018 from being appointed as a director in termsof Section 164(2) of the Act; f) we have also audited the internal financial controls overfinancial reporting (IFCoFR) of the Company as on 31 March 2018 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate and our report dated

23 May 2018 as per Annexure II expressed unmodified opinion; and 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous: i. the Company as detailed in note 37 to the

standalone financial statements has disclosed the impact of pendinglitigations on its financial position. ii. the Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses; iii. there has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company and; iv. the disclosurerequirements relating to holdings as well as dealings in specified bank notes wereapplicable for the period from 8 November 2016 to 30 December 2016 which are not relevantto these standalone financial statements. Hence reporting under this clause is notapplicable.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Siddharth Talwar
Partner
Membership No.: 512752
Place : New Delhi
Date : 23 May 2018

Annexure I

Based on the audit procedures performed for the purpose of reporting atrue and fair view on the financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets comprising ofproperty plant and equipment capital work-in-progress and other intangible assets.

(b) The Company has a regular program of physical verification of itsfixed assets comprising of property plant and equipment capital work-in-progress andother intangible assets under which fixed assets are verified in a phased manner over aperiod of three years which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. No material discrepancies were noticed on suchverification.

(c) The title deeds of all the immovable properties (which are includedunder the head ‘Property plant and equipment') are held in the name of theCompany.

(ii) In our opinion the management has conducted physical verificationof inventory at reasonable intervals during the year except for goods-in-transit andstocks lying with third parties. No material discrepancies were noticed on the aforesaidverification.

(iii) The Company has not granted any loan secured or unsecured tocompanies firms Limited Liability Partnerships (LLPs) or other parties covered in theregister maintained under Section 189 of the Act.

Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b) and3(iii)(c) of the Order are not applicable.

(iv) In our opinion the Company has complied with the provisions ofSection 186 in respect of investments. Further in our opinion the Company has notentered into any transaction covered under Section 185 and Section 186 of the Act inrespect of loans guarantees and security.

(v) In our opinion the Company has not accepted any deposits withinthe meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the Rules made by the Central Government for the maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of Company'sproducts/services and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. However we have not made a detailed examination ofthe cost records with a view to determine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess goods and services tax and other material statutorydues as applicable have generally been regularly deposited to the appropriateauthorities.

Further no undisputed amounts payable in respect thereof wereoutstanding at the year-end for a period of more than six months from the date they becamepayable.

(b) The dues outstanding in respect of income-tax sales-taxservice-tax duty of customs duty of excise value added tax and goods and services taxon account of any dispute are as follows:

Statement of Disputed Dues

Name of the statute Nature of dues Amount (Rs in crores) Amount paid under Protest (Rs in crores) Period to which the amount relates (FY) Forum where dispute is pending
Central Excise Excise Duty 0.05 - 2005-10 Commissioner Appeals
Act 1944 Excise Duty 11.13 - 1994-95 2003-04 2014-15 Appellate Tribunal
Excise Duty 0.02 - 2005-06 to 2006-07 High Court
Service Tax 0.57 - 2012 -2015 Commissioner Appeals
Income-tax Income tax 1.07 1.07 1997-98 High Court
Act 1961 Income tax 4.83 4.83 2002-03 Hon'ble Supreme Court of India
Income tax 2.98 2.98 2008-09 Income Tax Appellate Tribunal
Income tax 5.57 2.85 2009-10 Income Tax Appellate Tribunal
Income tax 0.62 - 2010-11 Income Tax Appellate Tribunal
Income tax 0.20 0.20 2012-13 Income Tax Appellate Tribunal

(viii) The Company has not defaulted in repayment of loans orborrowings to any bank or financial institution during the year. The Company did not haveany outstanding debentures or dues to government during the year.

(ix) The Company did not raise moneys by way of initial public offer orfurther public offer (including debt instruments). In our opinion the term loans wereapplied for the purposes for which the loans were obtained though idle funds which werenot required for immediate utilisation have been invested in liquid investments payableon demand.

(x) No fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Companyin accordance with the requisite approvals mandated by the provisions of Section 197 ofthe Act read with Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company.

Accordingly provisions of clause 3(xii) of the Order are notapplicable.

(xiii) In our opinion all transactions with the related parties are incompliance with Sections 177 and 188 of Act where applicable and the requisite detailshave been disclosed in the financial statements etc. as required by the applicable IndAS.

(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cashtransactions with the directors or persons connected with them covered under Section 192of the Act.

(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Siddharth Talwar
Partner
Membership No.: 512752
Place : New Delhi
Date :23 May 2018

Annexure II

Independent Auditor's report on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

1. In conjunction with our audit of the standalone financial statementsof Cosmo Films Limited ("the Company") as at and for the year ended 31 March2018 we have audited the internal financial controls over financial reporting("IFCoFR") of the Company as at that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible forestablishing and maintaining internal financial controls based on components of internalcontrol stated in the Guidance note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of the Company's business including adherence to Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company'sIFCoFR based on our audit. We conducted our audit in accordance with the Standards onAuditing issued by the ICAI and deemed to be prescribed under section 143(10) of the Actto the extent applicable to an audit of IFCoFR and the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting ("the Guidance Note") issued by theICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate IFCoFR were established and maintained and if such controls operated effectivelyin all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the IFCoFR

and their operating effectiveness. Our audit of IFCoFR includesobtaining an understanding of IFCoFR assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's IFCoFR include 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) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

7. Because of the inherent limitations of IFCoFR including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the IFCoFR to future periods are subject to the risk that IFCoFR maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequateinternal financial controls 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 issued by theICAI.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Siddharth Talwar
Partner
Membership No.: 512752
Place : New Delhi
Date :23 May 2018