creative world telefilms ltd Auditors report

Auditor

To,

The Member of,

Creative World Telefilms Limited Mumbai

We have audited the attached balance sheet of Creative World Telefilms Limited as at March 31, 2013 and also the Profit and Loss accounts and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. There financial statements are responsibility of the Companys management our responsibility is to express an opinion in these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements An audit includes examining, on test basis, evidence, supporting the amount and disclosures in the financial statement. 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.

1) As required by the Companies (Auditor 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 as we considered appropriated and according to information and explanation given to us, We annex hereto a statement in the matters specified in paragraphs 4 and 5 of the said order, to the extent applicable to the Company.

2) Further to our Comments in the annexure referred in paragraph 1 above, we state that

a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of accounts as required by law have been kept by the Company, so far as it appears from our examination of the books

c) The balance sheet and the profit and loss account dealt with by this report are in agreement with the books of account

d) In our opinion, the Balance Sheet and Profit and Loss Account comply with the accounting, standards referred to in Section 211 (3C) of the Companies Act, 1956 to the extent applicable.

e) On the basis of the written representations received from the directors, taken on record on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2013 from being appointed as directors in terms of clause (g) of sub-section (1) of 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 read together with the significant Accounting Policies and the notes thereon give the information required by the Companies Act, 1956, in the manner so required, and 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 at March 31, 2013; and

ii. In the case of profit and loss account, of the profit of the Company for the year ended on that date.

iii. In the case of the cash flow statement, of the Cash flow of the company for the year ended on that date

For M/s. B.M. Gattani & Co

Chartered Accountants

Sd/-

Proprietor

Membership No.047066

PLACE : MUMBAI

DATED : 3^rd September, 2013.

ANNEXTURE TO THE AUDITORS REPORT FOR THE YEAR ENDED 31st MARCH, 2013

(Referred to in paragraph 1 of our report of even date)

1. In respect of its fixed assets.

a. The Company has maintained proper records for showing full particulars including quantitative details and situation of fixed assets.

b. All the assets have been physically verified by the management during the year and in our opinion it is reasonable having regard to the size of the Company and the nature of its assents, No material discrepancies were Noticed on such verification.

c. During the year, no substantial part of fixed assets of the company was disposed off.

2. In respect of the inventory of Investments:

a. The inventory of Investments has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b. The procedure of the physical verification of inventories followed by the Management is reasonable and adequate in relation to the size of the company and nature of its business.

c. The company is maintaining proper records of the inventory of Investments. The discrepancies noticed on verification between the physical stock and book records have been appropriately dealt with in the Books of Account.

3. According to the information and explanations given to us the company neither granted nor taken any loans, secured on unsecured, to or from the companies, firms of other parties listed in the register maintained under section 301 of the companies Act, 1956.

In view of what has been stated above, clause (iii) (b) regarding terms and condition of such loans, clause (iii) (c) regarding payment of principal amount and interest and clause (iii) (d) steps for recovery of overdue amount of Para 4 of the order are not applicable to the Company for the year under review.

4. In our opinion and according to the information and explanations given to us, there are Adequate internal control procedures commensurate with size of the company and the Nature of its business with regard to purchase of inventory, fixed assets and with regards to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control.

5. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956.

a) To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into register have been so entered.

b) According to the information and explanations given to us, there is no transaction in excess of Rs. 5 Lakhs in respect of any party and hence the question of reasonable prices in respect of such transactions regards to the prevailing market prices does not arise.

6. In our opinion and according to the information and explanations given to us, the company has not accepted any amount under the provisions of section 58 A of the Companies Act, 1956 and rules made and framed there under.

7. In our opinion & as per the information given to us, the company have an internal audit system in commensurate with the size and nature of its business.

8. We have been informed by the Company that the Central Government have not Prescribed maintenance of cost records under section 209(1)(d) of the companies Act, 1956.

9. According to the information and explanation given to us, no disputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty and Exercise Duty were outstanding as at 31^st March, 2013 for a period of more than six month from the Date they become payable.

10. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

11. 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.

12. In our opinion, the Company is not chit fund or a nidhi mutual benefit fund/society, therefore the provisions of clause 4 (xiii) of the Companies (Audit Report) order, 2003 are not applicable to the Company.

13. In our opinion, the company is investing in shares, securities, debentures and other investment and proper account has been maintained as required within the provision of clause 4 (xiii) of the Companies (Audit Report) order, 2003. Meanwhile Company has made applications for the shares of various Private Limited and Limited Companies and allotment letters.

14. In our opinion and according to the information and explanations given to us, the Company has not given any bank guarantee.

15. In our opinion the term loans have applied for the purpose for which they were raised earlier. No long term loans has been received during the year under review.

16. According to the cash flow statement and other records examined by us and the Information and explanations given to us, on an overall basis, funds raised on short term basis have, prima facie, not been used during the year for long term investments and Vice versa.

17. The Company has not issued shares during the year and hence we have no comments to Offer in respect of clause 4 (xviii) of the Companies (Audit Report) order, 2003.

18. According to the information and explanations given to us, no fraud on or by company has been noticed or reported during the course of our audit.

For M/s. B.M. Gattani & Co

Chartered Accountants

Sd/-

Proprietor

Membership No.047066

PLACE : MUMBAI

DATED : 3^rd September, 2013.