Report on the Financial Statements
We have audited the accompanying financial statements of GLORY FILMS
LIMITED, which comprise the Balance Sheet as at 31st March, 2013, the
Statement of Profit and Loss and the Cash Flow Statement for the year
then ended, and a summary of the significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation 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 Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 (the Act). 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 misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 the internal control relevant to the
Company''s 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 used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
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 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the LOSS of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003(the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) 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.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT - 31ST MARCH 2013
(Referred to in our Report of even date)
We report the following:
(i) In respect of its fixed assets:
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the management, which
in our opinion is reasonable having regard to the size of the company
and the nature of its assets. Pursuant to above verification no
material discrepancies between the book records and the physical
inventory have been noticed.
(c) During the year, in our opinion, no substantial part of fixed
assets has been disposed off by the Company. (ii) In respect of its
inventory:
(a) As explained to us, inventories were physically verified by the
management at the end of the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, Company has maintained proper records of its inventories
and no material discrepancies were noticed on physical verification.
(iii) (a) The Company has granted loans to 3 parties covered in the
register maintained u/s 301 under Companies Act, 1956 and maximum
amount involved during the year was Rs. 106.16 Lacs and yearend balance
of loan granted to such parties was Rs. (13.46) Lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
Company.
(c) The Company is regular in receipt of principal amount and interest
wherever stipulated.
(d) There is no overdue more than Rs. 1.00 Lac from such parties.
(e) The Company has taken unsecured loans from 1 party covered in the
register maintained u/s 301 under Companies Act, 1956 and maximum
amount involved during the year was Rs. 5.30 Lacs and yearend balance of
loan taken from such parties was Rs. Nil.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
Company.
(g) The Company is regular in payment of principal amount and interest
wherever stipulated.
(iv) 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, for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit no major weaknesses has
been noticed in the internal controls.
(v) (a) According to information and explanation given to us, the
transactions made in pursuance of contracts or arrangements, that need
to be entered into register in pursuance of Section 301, of the Act,
have been so entered.
(b) In our opinion and according to the information and explanations
given to us the transactions of purchases of goods and materials and
sale of goods, material and services, made in pursuance of contracts
and arrangements entered in register maintained under Section 301 of
the Companies Act 1956, and exceeding the value of rupees five lakhs in
respect of one party during the year have not been made on cash
basis, at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us the Company has accepted deposit falling within the purview
of sections 58 A and 58 AA and the compliances for the same is pending.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account and records
maintained by the company pursuant to the Companies (Cost Accounting
Records) Rules, 2011 prescribed by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
(ix) (a) According to the information and explanations given to us, in
our opinion, the undisputed statutory dues including Provident Fund,
Investors Education and Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues as applicable have generally been
regularly deposited by the company during the year with the appropriate
authorities. According to the information and explanations given to us,
there are no arrears of outstanding statutory dues, except TDS / TCS
deducted but not paid Rs. 20,88,726/- as mentioned above as at 31st
March, 2013 for the period of more the six months from the date they
became payable.
(b) According to the records of the Company and the information and
explanations given to us, there are no dues of Sales tax, Income tax,
Custom duty, Wealth Tax, Excise Duty and Cess, which have not been
deposited on account of any dispute except for the following Income Tax
dues:
Assessment
Year Amount (In Rs.) Remark
2006-2007 44,05,855 CIT Appeal effect order pending.
Pending this refund of AY 09-10 of
Rs. 12,68,950/- adjusted against
this demand.
2007-2008 12,70,056 CIT Appeal has partly allowed and
TDS credit not allowed of Rs. 4,60,204/-
2007-2008 5,576 FBT
2008-2009 60,43,410 Rectification filed for non granting
of TDS credit of Rs. 42,93,134/- & Ad-
vance Tax of Rs. 10,00,000/-
(x) The company does not have accumulated losses as at 31st March 2013
exceeding fifty percent of its net worth and has incurred cash losses
during the financial year as also in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has nonpayment / delayed payment of loans
taken from Banks details of which are as under:
Particulars As at 31st March 2013 As at 31st March 2012
Period of Amount of Period of Amount of
default default default default
Term Loans
SBI T/L 30333132640
Principal 15 months 45,240,914 3 months 7,899,267
Interest 15 months 53,759,086 3 months 10,100,733
SBI T/L 30863834293
(WCTL)
Principal 6 months 17,957,647 3 months 2,691,169
Interest 6 months 5,042,353 3 months 708,831
SBI T/L 30963573756
(FITL)
Principal 6 months 5,632,179 3 months 225,301
Interest 6 months 1,467,821 3 months 174,699
IOB Term Loan A/c
280800010
Principal 14 months 14,380,731 2 months 2,274,731
Interest 14 months 12,317,269 2 months 1,539,269
Other loans
Vehicle Loans
Kotak Mahindra Prime
Ltd - CF - 6148966
Principal 1 month 52,900 Nil Nil
Interest 1 month 1,500 Nil Nil
Kotak Mahindra Prime
Ltd - CF - 6273439 Nil Nil
Principal 1 month 60,146 Nil Nil
Interest 1 month 2,460 Nil Nil
Loan against Keyman
Insurance Policy
Principal 5,253,750 Nil Nil
Interest 629,574 Nil Nil
Further, Company has over utilization of Cash Credit Facilities from
State Bank of India, Indian Oversea Bank, Central Bank of India & Dena
Bank resulting the account of the Company is considered as Non
Performing by these bank.
Name of Bank Sanction Amount Balance as on31.3.13
State Bank of India 16,50,00,000 25,34,47,610
Indian Overseas Bank 7,65,00,000 14,88,71,522
Central Bank of India 15,00,00,000 15,46,71,793
Dena Bank 12,85,00,000 15,24,55,002
(xii) In our opinion 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 share, debentures and other
securities.
(xiii) The provisions of any special statute as specified under clause
(xiii) of the order are not applicable to the company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) The Company has given a corporate guarantee of Rs. 760 lacs to a
bank for loans taken by a company in which directors relatives are
interested. According to the information and explanations given to us,
the guarantee if not revoked, the other term and conditions, whereof,
are not prejudicial to the interest of the company.
(xvi) In our opinion, and according to the information and explanations
given to us, no new term loan has been disbursed during the year.
(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 a short-term
basis which have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Act during the year.
(xix) As the company has no debentures outstanding at any time during
the year, Clause 4 (19) of the order is not applicable to the company.
(xx) During the Year company has not raised any fund through public
issue.
(xxi) According to the information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For Mittal & Associates
Firm Reg. No-106456W
Chartered Accountants
M. Mehta
Partner
M.No. 42990
Place: Mumbai
Date: May 30, 2013
