1. We have audited the accompanying financial statements of Encash
Entertainment Limited (''the company''), which comprises the Balance
Sheet as at 31st March 2015, the Statement of Profit and Loss, the Cash
Flow Statement for year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements :
2. 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 and presentation of these 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 specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes the maintenance of adequate accounting records in
accordance with the provision of the Act for safeguarding of the assets
of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility :
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We 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
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid 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 March 31,2015;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on the date.
Report on other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2015 (the
Order) issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
10. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) 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 those
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act; and
f) With respect to the other matters included in the Auditor''s Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according
to the explanations given to us :
i) The Company has no pending litigations on its financial position in
its financial statements which will be effecting it going concern
status and company''s operation in future;
ii) The Company did not have any long-term contracts including
derivatives contracts as at 31st March 2015;
iii) There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to Independent Auditors'' Report
(Referred to in Paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements of our report of even date)
1. (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
(b) The fixed assets of the Company have been physically verified by
the management during the year and no material discrepancies were
noticed on such verification.
2. (a) Inventories have been physically verified by the management
during the year at reasonable intervals.
(b) The procedures of physical verification of inventories followed by
the management 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 its inventories and no
material discrepancies noticed on physical verification of inventories.
3. The Company has not granted loans, secured or unsecured to
companies, firms or parties covered in the Register maintained under
section 189 of the Companies Act, 2013. Therefore the provisions of
clause 3(iii), (iii)(a) and (iii)(b) of the said Order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventories and fixed assets and
for sale of goods. During the course of our audit, no major weakness
has been noticed in the internal controls. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal control system of the Company.
5. The company has not accepted any deposits from the public within
the meaning of section 73, 74, 75 and 76 of the Companies Act, 2013 and
the Rules framed there under to the extent notified.
6. The Central Government of India has not specified the maintenance
of cost records under sub-section (1) of section 148 of the Companies
Act, 2013 for any of the products of the Company.
7. (a) According to the information and explanations given to us and on
the basis of the examination of the records of the Company, we are of
the opinion that the Company has been generally regular in depositing
undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, and other
material statutory dues, as applicable, with the appropriate
(b) There were no amounts which required to be transferred to the
investor education and protection fund by the Company.
8. The accumulated losses of the Company at the end of the financial
year are less then fifty percentage of its networth. The Company has
not incurred cash losses during the current year but had incurred cash
loss in the immediately preceding financial year.
9. As the Company does not have any borrowings from any financial
institution or bank nor has it issued any debentures as at the Balance
Sheet date, the provision of clause 3(ix) of the Order are not
applicable to the Company.
10. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institution during the year. Accordingly, provision
of clause 3(x) of the Order are not applicable to the Company.
11. The Company has not raised any term loans. Accordingly, provision
of clause 3(xi) of the Order are not applicable to the Company.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have neither come across any instance of
material fraud or on by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For, JYOTI K AGARWAL & ASSOCIATES
Firm Registration No. 325111E
( Jyoti Agarwal, FCA )
Place : Kolkata Partner
Date : 29.05.2015 Membership No. 061301