To the Members of Mid Valley Entertainment Limited on the Standalone Financial
Statements
I have audited the accompanying standalone financial statements of MIDVALLEY
ENTERTAINMENT LIMITED (‘the Company"), which comprises the Balance Sheet as at
March 31, 2018 and the Statement of Profit & Loss, the Cash flow Statement and the
Statement of Changes in Equity for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 these
standalone Ind AS financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the
accounting 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 accordance
with the provisions of the Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of internal financial controls, that
were operating effectively for ensuring accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
My responsibility is to express an opinion on these standalone Ind AS financial
statements based on my audit.
In conducting my audit I have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be included in the
audit 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 with
Standards on Auditing specified under section 143 (10) of the Act. Those standards require
that I comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the standalone Ind As financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the standalone Ind AS financial statements. The procedures selected
depend on the auditors judgements, including the assessment of the risks of material
misstatements of the standalone Ind AS financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant
to the Companys preparation of the standalone Ind AS financial statements that give a
true fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the Companys
Directors, as well as evaluating the overall presentation of the standalone Ind AS
financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to
provide 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 given
to me, the aforesaid standalone Ind AS 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, of the state of affairs of the Company
as at 31st March, 2018, and its loss, total comprehensive income, its cash
flows 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, 2017
and the transition date opening balance sheet as at April 01, 2016 included in these
standalone Ind AS financial statements, are based on the previously issued statutory
financial 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 31,
2016 respectively, expressed an unmodified opinion on those standalone financial
statements and have been restated to comply with Ind AS. Adjustments made to the
previously issued said statutory financial information for the differences in the
accounting principles adopted by the Company on transition to the Ind AS have been audited
by me.
Emphasis of Matters
I draw attention to Notes to the financial statements which indicates that the Company
has accumulated losses and its net worth has been substantially eroded. However, the
financial statements of the Company have been prepared as a going concern basis for the
reasons 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 (Auditors Report) Order, 2016 ("the Order")
and issued by the Central Government of India in terms of sub-section (11) of Section 143
of the Act, I give in the Annexure A, a statement on the matters specified in paragraph 3
and 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 best
of 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 the
Company so far as appears from my examination of those books.
c) The Balance Sheet, the Statement of Profit & Loss, the Cash Flow Statement and
Statement of Changes in Equity dealt with by this report are in agreement with the books
of account.
d) In my opinion, the standalone Ind AS financial statements comply with the Accounting
Standards 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 my
opinion, may have adverse effect on the functioning of the Company.
f) On the basis of written representations received from the directors, as on 31st
March, 2018, and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2018 from being appointed as a director in terms
of Section 164 (2) of the Act.
g) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to my
separate Report in Annexure ‘B. My report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014, in my opinion
and 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 financial
position in its standalone Ind AS financial statements, as referred to in Note No. 12
under Contingent Liabilities to the financial statements.
(ii) The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education 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 Auditors Report to the members of the company
on 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, including
quantitative details and situation of fixed assets; The Fixed assets register needs to be
updated.
(b) According to the information and explanations given to me, fixed assets have been
physically verified by the management at reasonable intervals. According to the
information and explanations given to me, no material discrepancies were noticed on such
verification 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 Physical
verification of inventory has been conducted during the year at reasonable intervals by
the management.
(b) The procedures followed by the management for physical verification of inventory
are reasonable and adequate in relation to the size of the company and the nature of its
business.
(c) The company is maintaining proper records of inventory and there is no material
discrepancy noticed on physical verification and the same have been properly dealt within
the books of account;
3. According to the information given to me and explanations provided, the company
had not granted any fresh unsecured loans to companies, firms or other parties covered in
the register maintained under section 189 of the Companies Act. 2013 during the year,
other than those that is given in the earlier years , which is yet to be recovered.
Maximum amount due during the year was Rs. 31,45,200/-.
4. According to the information given to me and explanations provided, the company has
not 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 Central
Government has not prescribed the maintenance of cost records under sub-section (1) of
section 148 of the Companies Act for the services rendered by the company.
6. (a) According to the information given to me and explanations
provided, the company is not regular in depositing undisputed statutory dues including
income tax deducted at source, sales-tax, customs duty, excise duty, cess and other
statutory dues with the appropriate authorities. The Company has to pay the Income tax and
Fringe Benefit Tax (FBT) for the years ended March 31, 2006, 2007, 2008, 2009 and 2010
amounting to Rs. 36,42,653/-, Rs.5,75,40,364/-, Rs.3,51,17,32/-, Rs.47,76,704/-,
Rs.77,66,000/- respectively and FBT of Rs. 1,65,000/- (excluding interest) and TDS of Rs.
9,90,125/- ESI , PF and Professional Tax of Rs. 1,33,849/- respectively.
(b) According to the information and explanation given to me, the Company is liable to
pay Rs.61.71 lakhs together with interest due for the delayed payment of tax in respect of
income tax relating to the assessment year 2002-03 which is pending before the first level
of appeal, viz., CIT (Appeals), Chennai.
(c) According to the information given to me and explanations provided, there are no
amounts required to be transferred to investor education and protection fund during the
year in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules thereunder.
7. In my opinion and according to the information given to me and explanations
provided, the company has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
8. In my opinion and according to the information given to me and explanations
provided, the company has not given any guarantee for loans taken by others from
bank or financial institutions.
9. In my opinion and according to the information given to me and explanations
provided, 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 me
and explanations provided no material fraud on or by the company has been noticed or
reported during the year.
11. In my opinion and according to the information and explanations given to me, the
Company has paid/ provided managerial remuneration in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies
Act, 2013.
12. The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable.
13. In my opinion and according to the information and explanations given to me, the
Company is in compliance with Sections 177 and 188 of the Companies Act, 2013, where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the
applicable accounting standards.
14. During the year, the Company had not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
clause (xiv) of the Order is not applicable to the Company.
15. In my opinion and according to the information and explanations given to me, during
the year, the Company has not entered into any non-cash transactions with the directors or
persons connected with him and hence provisions of section 192 of the Act, 2013 is not
applicable.
16. The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
| Place: Chennai |
R. LAKSHMINARAYANAN |
| Date: May 30, 2018 |
Chartered Accountant |
|
Membership No. 204045 |
+91-9892691696
