You are here » Home » Companies » Company Overview » Khyati Multimedia Entertainment Ltd

Khyati Multimedia Entertainment Ltd.

BSE: 531692 Sector: Media
NSE: N.A. ISIN Code: INE593B01030
BSE 00:00 | 19 Feb 0.40 0
(0.00%)
OPEN

0.40

HIGH

0.40

LOW

0.40

NSE 05:30 | 01 Jan Khyati Multimedia Entertainment Ltd
OPEN 0.40
PREVIOUS CLOSE 0.40
VOLUME 1588
52-Week high 0.59
52-Week low 0.40
P/E
Mkt Cap.(Rs cr) 0
Buy Price 0.40
Buy Qty 1313.00
Sell Price 0.44
Sell Qty 1096.00
OPEN 0.40
CLOSE 0.40
VOLUME 1588
52-Week high 0.59
52-Week low 0.40
P/E
Mkt Cap.(Rs cr) 0
Buy Price 0.40
Buy Qty 1313.00
Sell Price 0.44
Sell Qty 1096.00

Khyati Multimedia Entertainment Ltd. (KHYATIMULTIMED) - Auditors Report

Company auditors report

To the Members of Khyati Multimedia Entertainment Limited

Report on the Ind ASFinancial Statements

We have audited the accompanyingInd AS financial statements of Khyati MultimediaEntertainment Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information(hereinafter referred to as "Ind AS Financial Statements").

Management's Responsibility for theInd ASFinancial 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 oftheseInd AS financial statements that give a true and fair view of the (state of affairs)financial position profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 andensuring their operating effectivenessand the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of theInd AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on theseInd AS financial statements basedon 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 thereunder.

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 whethertheInd AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in theInd AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement oftheInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit 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 the Company's Directors as well as evaluating the overallpresentation of theInd AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on theInd AS financial statements.

Opinion

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 except for the fact that the confirmation foradvances given of Rs. 208.75 lacs is not produced to us by the company give a trueand fair view in conformity with the accounting principles generally accepted in Indiaincluding the Ind ASof the state of affairs (financial position) of the Company as at31st March 2018 its loss (financial performance including other comprehensive income)its cash flows and changes in equity for the year ended on that date.

Material Uncertainty Related to Going Concern

We also draw attention to Note No.24 to the statement regarding the fact that thecompany is not carrying out any commercial activity during the year and continuouslyincurring cash losses. There is absence of future business plans in place. Theseconditions indicate that a material uncertainty exists that may cast significant doubt onCompany's ability to continue as a going concern. However the accounts are prepared basedon going concern.

Our opinion is not modified in respect of this matter.

Emphasis of Matter

1. We draw attention to note 23 to the statement with regard to order date April 232018 of BSE Limited for conducting forensic audit of accounts and other documents of thecompany for the period from April 01 2015 to till date for shell companies. Any adverseoutcome of the same may have impact on the financials of the Company. Our opinion is notmodified in respect of these matters.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditors' 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 "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

(2) As required by Section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read withrelevant rules issuedthereunder;

e. On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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 we give ourseparate Report in "Annexure 2".

j. 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 has disclosed the impact of pending litigations on its financialposition in its financial statements; ii. The Company did not have any long-term contractsincluding derivative contracts.Hence the question of any material foreseeable losses doesnot arise; iii. There is no amount required to be transferred to the Investor Educationand

Protection Fund by the Company.

For N. Gamadia & Co.

Chartered Accountants

ICAI Firm Registration No. 116075W

Nilesh Gupta Partner

Membership No. 100426

Place:Ahmedabad

Date: May 30 2018

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of KhyatiMultimedia Entertainment Limited on the financial statements for the year ended March 312018]

(i) In respect of Company's Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of the fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. However during the year fixed assets have not been physicallyverified by the management as per the programme of verification. (c) The company does nothold any immovable properties and hence reporting under Clause 3(i)(c) of the Order is notapplicable to the Company.

(ii) The Company does not have any physical inventory during the year under audit andhence reporting under Clause 3(ii) is not applicable to the Company.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Accordingly reporting under clauses 3 (iii)(a) 3 (iii)(b) and 3(iii)(c) of the Order are not applicable to the Company.

(iv) According to the information and explanations given to us the Company has notgranted any loans investments guarantees and securities to the parties covered undersections 185 and 186 of the Companies Act 2013 and hence the provisions of clause 3(iv)of the order are not applicable to the company.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Sections

73 to 76 of the Act and the rules framed there under. Hence the provisions of clause3(v) of the order are not applicable to the company.

(vi) The Central Government has not prescribed the maintenance of cost records for anyof the products of the Company under sub-section (1) of Section 148 of the Act and therules framed there under. (vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax value added tax goods and services taxcustoms duty excise duty cess and any other material statutory dues applicable to it.(b) According to the information and explanation given to us the dues outstanding withrespect to income tax sales tax service tax value added tax goods and service taxcustoms duty excise duty on account of any dispute are as follows:

Name of the statute Nature of the dues Amount Rs. Period to which the amount relates Forum where dispute is pending Remarks
Provident fund Act 1952 Provident Fund 200750 Sep-1997 to Sep-2000 Provident Fund Appellate tribunal New Delhi which has remanded the case to APFC Ahmedabad

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institution(s) bank(s)government(s) or dues to debenture holder(s).

(ix) The Company has neither raised money by way of public issue offer nor has obtainedany term loans. Therefore paragraph 3(ix) of the Order is not applicable to the Company.

(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 explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

(xi) According to the information and explanations given to us the Company has notpaid / provided for managerial remuneration during the year and hence the requisitecompliance mandated by the provisions of Section 197 read with Schedule V to the Act isnot applicable to the Company.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore paragraph 3(xii) of the Order is not applicableto the Company.

(xiii) According to the information and explanation given to us all transactionsentered into by the Company with the related parties are in compliance with Sections 177and 188 of Act where applicable and the details have been disclosed in the FinancialStatements etc. 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. Thereforeparagraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him duringthe year.

(xvi) According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For N. Gamadia & Co.

Chartered Accountants

ICAI Firm Registration No. 116075W

Nilesh Gupta

Partner

Membership No. 100426

Place: Ahmedabad

Date: May 30 2018

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of KhyatiMultimedia Entertainment Limited on the financial statements for the year ended March 312018]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KhyatiMultimedia Entertainment Limited ("the Company") as of March 31 2018 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

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 ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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") and the Standards on Auditing specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company;(2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a 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 March 31 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 ICAI.

For N. Gamadia & Co.

Chartered Accountants

ICAI Firm Registration No. 116075W

Nilesh Gupta Partner

Membership No. 100426

Place: Ahmedabad

Date: May 30 2018