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IN HOUSE PRODUCTIONS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS' REPORT
To
The members of
IN HOUSE PRODUCTIONS LIMITED
1. We have audited the attached Balance Sheet of In House Productions
Limited as at 31st March 2011 and the Profit and Loss Account annexed
thereto and also the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with Accounting Standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance whether the financial statements are
free of material misstatements. An Audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by Companies (Auditor's Report) Order, 2003, issued by the
Company Law Board in terms of Section 227(4A) of the Companies Act, 1956,
and on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and explanations
given to us during the course of audit, we enclose in the Annexure a
statement on the matters specified in paragraph 4 & 5 of the said order to
the extent applicable to the Company.
4. Attention is invited to Schedule-19 on Notes to the Accounts:
Note 22(1), regarding not accounting of insurance claim receivable from
insurance company on account of loss due to fire.
Note 22(2), regarding Investments in Indian cookery, com and New Age
Entertainment Private Limited.
Note 21, regarding non-provision of Dividend on Cumulative Preference
Shares.
Note 6(A)(a) for non provision of Interest on Bank Loan due to one time
settlement.
5. Further to our comments in the Annexure referred to in paragraph '4'
above, we report that:
a) We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by the law have been
kept by the Company so far as appears from our examination of the books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the Books of account;
d) In our opinion, the Balance-sheet, Profit and Loss Account and Cash Flow
Statement comply with the mandatory Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 to the extent
applicable;
e) Based on the representations made by the Directors of the Company and
the explanations as made available, the directors of the Company do not
prima-facie have any disqualifications as referred to in clause (g) of sub-
section (1) to Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956 in the manner so required subject to Para 4
above, and read together with the Significant Accounting policies and notes
thereon as stated in Note 22 give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March 2011 and
ii) In the case of the Profit and Loss Account, of the Loss for the year
ended on that date.
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
For MUKESH M SHAH & CO
Chartered Accountants
Firm Regn No. 106625W
(J H DALIA)
Partner
M. No. 43863
Place: Mumbai
Date : 30th May 2011.
ANNEXURE TO THE AUDITORS' REPORT:
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR
THE YEAR ENDED 31ST MARCH 2011 OF IN HOUSE PRODUCTIONS LIMITED
FIXED ASSETS:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
2. We have been informed that the management has physically verified the
fixed assets during the year and no material discrepancies were noticed by
them on such verification.
3. During the year, the Company has not disposed off a substantial part of
fixed assets, which would affect its going concern status.
INVENTORIES:
1. The inventory has not physically verified at the end of the year by the
management.
2. The Company is maintaining proper records of inventory, subject to our
comment to Para 4 above. As explained to us, the discrepancies noticed on
verification between the physical stocks and book records were not
material.
LOANS & ADVANCES:
1. The Company has not taken loans from Companies covered in the Register
maintained under section 301 of the Companies Act, 1956. The Company has
granted a loan to a Company covered in the Register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved during
the year was Rs 555 lakhs and the year-end balance of the loan given to
that party was Rs 555 lakhs.
2. In our opinion, the rate of interest and other terms and conditions on
which loans have been taken from/granted to Companies, firms and other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 is, prima facie, not prejudicial to the interest of the
Company.
3. There is no overdue amount of any loan taken from or granted to firms or
other parties listed in the Register maintained under section 301 of the
Companies Act, 1956.
INTERNAL CONTROLS:
In our opinion and according to the information and explanations given to
us, the Company's internal control system in relation to purchase of fixed
assets and services and rendering of services is adequate and commensurate
with the size and nature of its business. Also there is no continuing
failure on the part of management to correct major weakness in the internal
control.
RELATED PARTIES:
1. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the particulars of
Contracts or Arrangements referred to in Section 301 of the Companies Act,
1956 have been so entered in the register required to be maintained under
that section.
2. In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the registers maintained under Section 301 and exceeding the
value of Rupees Five lakhs in respect of any party during the year have
been made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
DEPOSITS:
The Company has not accepted any deposits from public within the meaning of
sections 58A and 58AA of the Companies Act, 1956 and the rules framed there
under, during the year.
INTERNAL AUDIT:
The company has an internal audit system of its Healthcare division which,
in our opinion is commensurate with its size and nature of business. The
Company is in the process of appointing an external firm of Chartered
Accountants for conducting Internal Audit of its Media division for the
current year.
COST RECORDS:
We are informed that the Central Government has not prescribed under
section 209(1)(d) of the Companies Act, 1956 maintenance of cost records
for any of the products manufactured by the Company.
STATUTORY DUES:
1. In our opinion and according to the information and explanations given
to us, the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, employees'
state insurance, income-tax, sales-tax, wealth-tax, service tax, custom
duty, excise-duty, cess and other statutory dues applicable to it. As per
the information given to us by the management, there are no dues of the
Company to the Investor Education & Protection Fund.
2. According to the information and explanations given to us, no undisputed
amounts payable in respect of income tax, wealth tax, service tax, sales
tax, customs duty and excise duty were outstanding, as at 31st March 2011
for a period of more than six months from the date they became payable.
3. According to the information and explanations given to us and based on
records produced to us, there are no dues outstanding of sales tax, income
tax, customs duty, wealth-tax, excise duty, cess, except for service tax as
mentioned in note to accounts no 22(6)(ii) which have not been deposited on
account of any dispute.
GENERAL:
1. The Company does not have accumulated losses at the end of the financial
year and has not incurred cash losses during the financial year and in the
immediately preceding financial year.
2. Based on our audit procedures and on the basis of the information and
explanations given to us and also based on our examination of documents and
records of the company, the Company has not taken any term loans during the
year
3. Based on the information and explanations given to us and also based on
our examination of documents and records of the company, we are of the
opinion that the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
4. In our opinion and according to the information and explanations given
to us, the nature of the activities of the Company does not attract any
special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
5. According to the information and explanations given to us, the company
is not dealing or trading in shares, securities, debentures and other
investments.
6. The Company has not given any guarantees for loans taken by others from
banks or financial institutions.
7. All shares and securities as per note 10 on Non Current investments of
the audited accounts as on 31 st March 2012 have been held in the name of
the Company.
8. According to the information and explanations given to us and on an
overall examination of the Balance Sheet and Cash-Flow Statement and other
records examined by us, we report that no funds raised on short term basis
have prima facie been used during the year for long term investment and no
funds raised on long term basis have been utilized for short term
investment except for permanent working capital.
9. The Company has not made any preferential allotment of shares during the
year to parties and companies covered in the Registers maintained under
section 301 of the Act.
10. During the year, the Company did not have any outstanding debentures,
issued or pending redemption.
11. The Company has not raised any money through a public issue during the
year.
12. Based upon the audit procedures adopted and information and
explanations given by the management, we have not come across any instance
of material fraud on or by the Company noticed or reported during the year
nor have we been informed of any such case by the management.
For MUKESH M SHAH & CO
Chartered Accountants
Firm Regn No 106625W
(J H DALIA)
Partner
M. No. 43863
Place: Mumbai
Date : 30th May 2011.
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