Auditor
To,
The Members,
Report on the Financial Statements:
1. We have audited the accompanying financial statements of Asian Films Production
and Distribution Ltd. which comprise the Balance Sheet as at September 30, 2013 and
statement of Profit and Loss for the year then ended and a summary of significant
accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
2. Management is responsible for the preparation of these financial statements that
give a true and fair view of the financial position, financial performance of the company
in accordance with the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956, this responsibility includes the design implementation and
maintenance of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material
misstatements .whether due to fraud and error.
Auditors Responsibility:
3. Our responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit in accordance with Standards on auditing issued by the
Institute of Chartered Accountants of India. Those standards require that we comply with
the ethical requirements plan and perform the audit to obtained reasonable assurance about
whether the financial statements are free from material misstatements. An audit involves
performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors judgments, including
the assessment of the risk of material misstatements of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal
control relevant to the companys preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting policies and the
reasonableness of accounting estimates made by management, as well as evaluating the
overall financial statement.
4. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion:
5. In our opinion, and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at
September 30, 2013;
(b) In the case of the Profit and Loss Account, of the profits loss for the year ended
on that date;
Report on other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and
5 of the said Order.
2. As required by section 227 (3) of the act, we report that:
(i) We have obtained all the information and explanations which, to the best of our
knowledge and belief, were necessary for the purposes of our audit;
(ii) In our opinion, proper books of account, as required by law, have been kept by the
Company so far as appears from our examination of these books;
(iii) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with
by this report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and cash flow
statements comply with the accounting standards referred to in sub-section (3C) of Section
211 of the Companies Act, 1956 except;
AS-6 being Depreciation Accounting as depreciation has not been provided on all the
assets except Computer:
In the view of the Management, No Provision is required to be made for Depreciation on
fixed assets except Depreciation on Computer. The effect of which cannot be quantified, to
that extent Profit for they ear and balance in Profit & loss account is overstated.
(v) On the basis of written representation received from the Directors as on September
30, 2013 and taken on record by the Board of Directors, none of the Directors is
disqualified as on September 30, 2013 from being appointed as a Director in terms of
Section 274 (1)(g) of the Companies Act, 1956.
For: Agrawal Jain & Gupta
Chartered Accountants
FRN: 013538C
CA Narayan Swami
Partner
M.No-409759
Date: 02.12.2013
Place: Mumbai.
ANNEXURE TO AUDITORS REPORT:
(Referred to our report to the members of Asian Films Production and Distribution Ltd.
of even date)
(i)(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at reasonable
intervals, which in our opinion, is considered reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were noticed on such
verifications.
(c) The Company has not disposed off a substantial part of fixed assets during the
year, and accordingly, going concern is not affected.
(ii) The Company has a policy of treating motion pictures under production as inventory
till the date of release/agreement whichever is earlier. Consequently, there is no
tangible inventory carried by the Company. Accordingly, the provisions of Paragraph 4(ii)
of the said Order are not applicable to the Company.
(iii) According to the information and explanations given to us, the Company has not
taken any loan, secured or unsecured from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956. Accordingly, Paragraph
4(iii) of the said Order is not applicable to the Company.
(iv) In our opinion, and according to the information and explanations given to us, the
Companys internal control procedures for the purchase of inventory and for the sale of
goods and services needs to be further strengthened so as to be commensurate with the size
of the Company and nature of its business. In respect of purchase of fixed assets, the
Company has adequate internal control procedures commensurate with the size of the Company
and nature of its business. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system.
(v) In our opinion and according to the information and explanations given to us, there
are no transactions that need to be been entered in the register maintained under section
301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public to which the directives
issued by the Reserve Bank of India and the provisions of section 58A, 58AA and any other
relevant provisions of the Companies Act, 1956 and the rules framed there under are
applicable. Accordingly, the provisions of Paragraph 4(vi) of the said Order are not
applicable to the Company.
(vii) The Company has an internal audit system, commensurate with the size of the
Company and the nature of its business.
(viii) As informed to us, the maintenance of cost records has not been prescribed by
the Central Government under clause (d) of sub-section (1) of section 209 of the Companies
Act, 1956 in respect of the activities of the Company. Accordingly the provisions of
Paragraph 4(viii) of the said Order are not applicable to the Company.
(ix)(a) According to the information and explanations given to us, the Company is
generally regular in depositing undisputed statutory dues statutory dues as applicable,
with the appropriate authorities during the year. There are no outstanding Statutory dues
except above as at the last day of the financial year concerned for a period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of
sales tax, income-tax, wealth tax, service tax, custom duty, excise duty and cess which
have not been deposited on account of any dispute.
(x) After considering the effect of quantified qualification, in our opinion and
according to the information and explanations given to us, the accumulated losses of the
Company at the end of the financial year does not exceed fifty percent of its net worth.
The Company has not incurred cash losses during the current financial year and also in the
immediately preceding financial year.
(xi) In our opinion, and on the basis of our examination and according to the
information and explanations given.
(xii) In our opinion, and on the basis of our examination and according to the
information and explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares, debentures and other
securities. Accordingly the provisions of Paragraph 4(xii) of the said Order are not
applicable to the Company.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Accordingly, the provisions of Paragraph 4(xiii) of the said Order are not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of Paragraph 4(xiv) of the said Order are
not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has given
guarantee to the Company as reflected in Note no 3 to Schedule S.
(xvi) According to the information and explanations given to us that the company had
not raised any term loan.
(xvii) On the basis of an overall examination of the balance sheet of the Company, in
our opinion and according to the information and explanations given to us, there are no
funds raised on short-term basis, which have been used for long-term purposes.
(xviii) The Company has not made preferential allotment of shares to the parties
covered in the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of Paragraph 4(xviii) of the said Order are not applicable to
the Company.
(xix) The Company has not issued any debentures during the year. Accordingly, the
provisions of Paragraph 4(xix) of the said Order are not applicable to the Company.
(xx) During the year the Company has partly restructured the Bank loan by issuing Fully
Convertible Warrants as stated in Notes.
(xxi) To the best of our knowledge and belief, and according to the information and
explanations given to us, there have been no cases of fraud on or by the Company noticed
or reported during the year.
For Agrawal Jain & Gupta
Chartered Accountants
FRN: 013538C
CA Narayan Swami
Partner
M.No-409759
Place: Mumbai,
Date: 02 Dec. 2013.
+91-9892691696
