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Midvalley Entertainment Ltd.

BSE: 533310 Sector: Media
NSE: N.A. ISIN Code: INE422B01016
BSE 00:00 | 19 Oct Midvalley Entertainment Ltd
NSE 05:30 | 01 Jan Midvalley Entertainment Ltd
OPEN 0.35
PREVIOUS CLOSE 0.35
VOLUME 10
52-Week high 0.35
52-Week low 0.31
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.35
Buy Qty 22384.00
Sell Price 0.30
Sell Qty 100.00
OPEN 0.35
CLOSE 0.35
VOLUME 10
52-Week high 0.35
52-Week low 0.31
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.35
Buy Qty 22384.00
Sell Price 0.30
Sell Qty 100.00

Midvalley Entertainment Ltd. (MIDVALLEYENTER) - Auditors Report

Company auditors report

To the Members of Mid Valley Entertainment Limited on the Standalone FinancialStatements

I have audited the accompanying standalone financial statements of MIDVALLEYENTERTAINMENT LIMITED (‘the Company") which comprises the Balance Sheet as atMarch 31 2018 and the Statement of Profit & Loss the Cash flow Statement and theStatement of Changes in Equity for the year then ended and a summary of the significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation of thesestandalone Ind AS financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standards (Ind As) referred to in Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

This responsibility includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial controls thatwere operating effectively for ensuring accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

My responsibility is to express an opinion on these standalone Ind AS financialstatements based on my audit.

In conducting my audit I have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

I conducted my audit of the standalone Ind As financial statements in accordance withStandards on Auditing specified under section 143 (10) of the Act. Those standards requirethat I comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind As financial statements are free ofmaterial 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 judgements including the assessment of the risks of materialmisstatements of the standalone Ind AS financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal control relevantto the Company's preparation of the standalone Ind AS financial statements that give atrue fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the standalone financial statements.

Opinion

In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone Ind AS financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its loss total comprehensive income its cashflows and the changes in equity for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 01 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by me and my report for the year ended March 31 2017 and March 312016 respectively expressed an unmodified opinion on those standalone financialstatements and have been restated to comply with Ind AS. Adjustments made to thepreviously issued said statutory financial information for the differences in theaccounting principles adopted by the Company on transition to the Ind AS have been auditedby me.

Emphasis of Matters

I draw attention to Notes to the financial statements which indicates that the Companyhas accumulated losses and its net worth has been substantially eroded. However thefinancial statements of the Company have been prepared as a going concern basis for thereasons stated in the Notes.

My opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")and issued by the Central Government of India in terms of sub-section (11) of Section 143of the Act I give in the Annexure A a statement on the matters specified in paragraph 3and 4 of the said Order to the extent applicable.

2. As required by Section 143(3) of the Act report that:

a) I have sought and obtained all the information and explanations which to the bestof my knowledge and belief were necessary for the purposes of my audit;

b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books.

c) The Balance Sheet the Statement of Profit & Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this report are in agreement with the booksof account.

d) In my opinion the standalone Ind AS financial statements comply with the AccountingStandards specified in Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) The going concern matter described in Emphasis of Matters paragraph above in myopinion may have adverse effect on the functioning of the Company.

f) On the basis of written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164 (2) of the Act.

g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate Report in Annexure ‘B'. My report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

h) 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 my opinionand to the best of my information and according to the explanations given to me:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements as referred to in Note No. 12under Contingent Liabilities to the financial statements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Place: Chennai R. LAKSHMINARAYANAN
Date: May 30 2018 Chartered Accountant
Membership No. 204045

ANNEXURE - A

Re: MIDVALLEY ENTERTAINMENT LIMITED

The Annexure referred to my Independent Auditor's Report to the members of the companyon the standalone financial statements for the year ended March 31 2018 I report that:

1. (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets; The Fixed assets register needs to beupdated.

(b) According to the information and explanations given to me fixed assets have beenphysically verified by the management at reasonable intervals. According to theinformation and explanations given to me no material discrepancies were noticed on suchverification and the same have been properly dealt with in the books of account;

(c) The Company hold fixed assets in its own name.

2. (a) According to the information given to me and explanations provided the Physicalverification of inventory has been conducted during the year at reasonable intervals bythe management.

(b) The procedures followed by the management for physical verification of inventoryare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) The company is maintaining proper records of inventory and there is no materialdiscrepancy noticed on physical verification and the same have been properly dealt withinthe books of account;

3. According to the information given to me and explanations provided the companyhad not granted any fresh unsecured loans to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act. 2013 during the yearother than those that is given in the earlier years which is yet to be recovered.Maximum amount due during the year was Rs. 3145200/-.

4. According to the information given to me and explanations provided the company hasnot accepted deposit during the year within the meaning of section 2(31) of the Act.

5. According to the information given to me and explanations provided the CentralGovernment has not prescribed the maintenance of cost records under sub-section (1) ofsection 148 of the Companies Act for the services rendered by the company.

6. (a) According to the information given to me and explanationsprovided the company is not regular in depositing undisputed statutory dues includingincome tax deducted at source sales-tax customs duty excise duty cess and otherstatutory dues with the appropriate authorities. The Company has to pay the Income tax andFringe Benefit Tax (FBT) for the years ended March 31 2006 2007 2008 2009 and 2010amounting to Rs. 3642653/- Rs.57540364/- Rs.3511732/- Rs.4776704/-Rs.7766000/- respectively and FBT of Rs. 165000/- (excluding interest) and TDS of Rs.990125/- ESI PF and Professional Tax of Rs. 133849/- respectively.

(b) According to the information and explanation given to me the Company is liable topay Rs.61.71 lakhs together with interest due for the delayed payment of tax in respect ofincome tax relating to the assessment year 2002-03 which is pending before the first levelof appeal viz. CIT (Appeals) Chennai.

(c) According to the information given to me and explanations provided there are noamounts required to be transferred to investor education and protection fund during theyear in accordance with the relevant provisions of the Companies Act 1956 (1 of 1956) andrules thereunder.

7. In my opinion and according to the information given to me and explanationsprovided the company has not defaulted in repayment of dues to a financial institution orbank or debenture holders.

8. In my opinion and according to the information given to me and explanationsprovided the company has not given any guarantee for loans taken by others frombank or financial institutions.

9. In my opinion and according to the information given to me and explanationsprovided the Company had not availed any term loan during the year from any bank/financial institution.

10. To the best of my knowledge and belief and according to the information given to meand explanations provided no material fraud on or by the company has been noticed orreported during the year.

11. In my opinion and according to the information and explanations given to me theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

12. The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

13. In my opinion and according to the information and explanations given to me theCompany is in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

14. During the year the Company had not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

15. In my opinion and according to the information and explanations given to me duringthe year the Company has not entered into any non-cash transactions with the directors orpersons connected with him and hence provisions of section 192 of the Act 2013 is notapplicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

Place: Chennai R. LAKSHMINARAYANAN
Date: May 30 2018 Chartered Accountant
Membership No. 204045

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