TO THE MEMBERS OF KHYATI MULTIMEDIA ENTERTAINMENT LIMITED
Report on the Financial Statements
We have audited the accompanying Financial statements of KHYATI MULTIMEDIAENTERTAINMENT LIMITED ("the company")which comprise the BalanceSheet as at 31 March 2017 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 Financial Statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the 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 financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these Financial Statements based on ouraudit.
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 in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Companys Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Financial Statements.
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 true and fair view in conformity with the accountingprinciples generally accepted in India:-
a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;
b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the " Order") and on the basis of such checks of thebooks and records of the company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure a statement on thematters specified in the paragraph 3 and 4 of 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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books. (c) the Balance sheet the Statement ofProfit and Loss and the Cash Flow Statement dealt with by this Report are in agreementwith the books of account. (d) in our opinion the aforesaid Financial Statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014. (e) on the basis of the written representationsreceived from the Directors as on 31st March 2017 taken on record by the Boardof Directors none of the Director is disqualified as on 31st March 2017 frombeing appointed as a Director in terms of Section 164 (2) of the Act.
(f) with respect to the adequacy of internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
(g) with respect to the other matters to be included in the Auditors 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. theCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements ; ii. In our opinion and as per the information and explanationprovided to us the Company has not entered into any long-term contracts includingderivatives contract requiring provision under applicable laws or accounting standardsfor material foreseeable losses. iii. the company is not required to transfer any amountto Investor Education and Protection Fund .
iv. the company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period From 8 November2016 to 30 December2016 and these are in accordance accounts of the financial statements.
|For DJNV & CO. || |
|Chartered Accountants || |
|Firm Regn. No. 115145W || |
|Devang Doctor ||Place : Ahmedabad |
|(Partner) ||Date : 30.05.2017 |
|M. No. 039833 || |
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in paragraph 9 of the Independent Auditors Report ofeven date to the members of Khyati Multimedia Entertainment Limited on thefinancial statements as of and for the year ended 31st March2017.
(i) (a) the company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) As explained to us the fixed assets have been physically verified by the managementat reasonable intervals having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are not available for verification.
(ii) As the company has not purchased/sold goods during the year. Accordingly it doesnot hold any physical inventories. Thus paragraph 3 (ii) of the order is not applicableto the company.
(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 Therefore the provision of Clause 3(iii)(a)(b)(c) of the said order are not applicable to the company.
(iv) The company has not granted any loans or made any investments or provided anyguarantees or securities to the parties covered under sections 185 and 186 of the Act.
Accordingly the provisions of clause 3(iv) of the order are not applicable to thecompany.
(v) The company has not accepted deposits within the provisions of section 73 to 76 orany other relevant provisions of the Companies Act 2013 therefore the provisions ofparagraph 3(v) of the order are not applicable to the company.
(vi). The central government has not prescribed the maintenance of cost records undersection 148(1) of the Act in respect of any of the companys products and henceclause VI of CARO 2016 is not applicable.
(vii) (a) According to the records of the company undisputed statutory dues includingprovident fund income tax service tax value added tax cess excise duty and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees state insurance & custom duty .According to the informationand explanations given to us no undisputed amounts payable in respect of the aforesaiddues were outstanding as at 31 March 2017 for a period of more than six months from thedate they became payable.
(b) According to the information and explanations given to us there are no materialdues of income tax or sales tax or service tax or duty of customs or duty of excise orvalue added tax which have not been deposited with the appropriate authorities on accountof any dispute except for the following:
|Statue/Nature Of Dues ||Amount(Rs.) ||Forum where dispute is pending |
|Provident Fund ||200750/- ||Provident Fund Appellate tribunal New Delhi which has remanded the case to |
(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.
(ix) The company has not raised any monies by way of initial public offer or furtherpublic offer (including debt instruments ) and term loans during the year.
Accordingly the provision of Clause 3(ix) of the order are not applicable to thecompany.
(x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given . to us we have neither come acrossany instances of material fraud by the company by its officers or employees noticed orreported during the year nor we have been informed of any such case by the management.
(xi) According to the information and explanations given by the company managerialremuneration has been paid/provided in accordance with the requisite approvals mandated bythe provisions of section 197 read with Schedule V to the Companies Act 2013.
(xii) The company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of clause 3(xii) of the order are not applicable to the company.
(xiii) As per the information provided all transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the applicable accounting standards;
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and hencethe clause 3(xiv) are not applicable to the company.
(xv) As per the information and explanations given to us the company has not enteredinto any non-cash transactions with its directors or persons connected with him and hencethe provisions of section 192 of Companies Act 2013 are not applicable.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.Hence this clause is not applicable.
For DJNV & CO.
Firm Regn. No. 115145W
M. No. 039833
Place : Ahmedabad
Date : 30.05.2017
Referred to in paragraph 10(f) of the Independent Auditors Report of even date tothe members of KHYATI MULTIMEDIA ENTERTAINMENT LIMITED on the standalone financialstatements for the year ended 31st March2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of KHYATI
MULTIMEDIA ENTERTAINMENT LIMITED ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Managements Responsibility for Internal Financial Controls
2. The Companys management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential 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 (the "GuidanceNote"). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to companyspolicies 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 Companies Act 2013.
3. Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to and audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and 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.
4. Our audit involves performing procedures to obtain evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Out audit of weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The procedureselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
Cleaning of Internal Financial Controls over Financial Reporting
6. A Companys 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 companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable details accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorities ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. 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.
8. 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 March 31 2017 based on theinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
| ||For D J N V & CO |
| ||Chartered Accountants |
|23Rd Annual General Meeting- 2016-17 ||CIN: L92199GJ1995PLC024284 |