We have audited the attached Financial Statements of SPLASH MEDIA &
INFRA LIMITED (''the Company) which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit & Loss and Cash Flow
Statement for the year ended on that date and a summary of Significant
Accounting Policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
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 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 the 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 internal financial control, 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.
Our responsibility is to express an opinion on these financial
statements based on our audit.
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
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.
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 and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing an opinion on
the effectiveness of the company''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on financial
BASIS OF QUALIFICATION
Contravention of Accounting Standard 15 on Accounting for retirement
benefit of employees.
As stated in Point No. 8 of Note No.1 of Significant Accounting
Policies followed by the company, the Company is not making any
provision for the Gratuity and leave encashment as the same is
accounted for on payment basis. This is in Contravention of Accounting
Standard 15 on Accounting for retirement benefits of employees.
Contravention of Accounting Standard 26 on Intangible Assets.
As stated in Point No.23 of Note to Accounts followed by the company,
the Company is not showing expenses incurred during the period on
account of Increase in Authorised Capital & some expenses in connection
to right Issue Expenses as revenue expenditure and the same is show as
Preliminary expenses to be amortised over a period of 5 years. This is
in Contravention of Accounting Standard 26 on Intangible Assets.
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 Subject to the Basis for Qualified Opinion
Paragraph, 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 as at 31st March, 2015;
(ii) In the case of the Statement of Profit and Loss; of the PROFIT for
the year ended on that date;
(iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the companies (Auditors Report) Order, 2015 issued by
the Central Government of India in terms of section 143 (11) of the Act.
We give in Annexure B a statement on matters specified in paragraph 3
and 4 of the said order.
2. As required by section 143(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 the
b. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the mandatory Accounting Standards
referred to in section 133 of the Companies Act, 2013, read with Rule 7
of the Companies (Accounts) Rules, 2014 except AS 15 regarding no
provision created for retirement benefits and except AS 26 regarding
preliminary expenses recognized as intangible assets and not written
off entirely. Had the preliminary expenses been shown as revenue
expenditure then profit would have been decreased by Rs.8,81,805/-.
e. On the basis of the written representation received from the
Directors as on 31.03.2015 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31.03.2015, from being appointed as a Director in terms of Sub-section
(2) of section 164 of the Act, 2013.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 3 of our report of even date on the accounts
for the year ended 31st March, 2015 of SPLASH MEDIA & INFRA LIMITED. On
the basis of such checks as we considered appropriate and in terms of
information and explanations provided to us state that:
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b) All the assets have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable; no material discrepancies were noticed on such
2) The Company does not have any inventory. Therefore the provision of
clause 3 (ii) (a), (b), (c) of Companies (Auditor''s Report) Order, 2015
are not applicable to the Company.
3) The Company has not granted loans to companies, firms covered in the
register maintained under section 189 of the Companies Act, 2015.
Consequently the provisions of clauses 3 (a) & (b) of the order are not
applicable to the company.
4) In our opinion and according to the information and explanations
provided by the company, there are adequate internal control systems
commensurate with the size of the Company and the nature of its
business. During the course of audit, we have not observed any
continuing failure to correct major weakness in internal control
5) In our opinion and according to the information and explanations
provided by the company, the Company has not accepted any deposits from
Public and therefore the provisions of Sec. 73 to 76 of the Companies
Act, 2013 and the Companies (Acceptance of Deposits) Rules 2014 are not
6) The Central Government has not prescribed maintenance of cost
records by the company under sub-section (1) of section 148 of the
Companies Act, 2013.
7) a) According to the information and explanations provided by the
company, the company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income Tax, Wealth Tax, Service Tax, Duties of Customs, Duties of
Excise, Value Added Tax, Cess and any other statutory dues with the
appropriate authorities applicable to it and no undisputed amount
payable in respect of Provident Fund, Employees'' State Insurance, Income
Tax, Wealth Tax, Service Tax, Duties of Customs, Duties of Excise, Value
Added Tax, Cess were in arrears , as at 31st March, 2015 for a period of
more than six months from the date they became payable.
b) In our opinion and according to the information and explanations
provided by the company, there are no dues outstanding in respect of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Value Added Tax and Cess which have not been deposited on account
of any dispute.
c) In our opinion and according to the information and explanations
given to us, the company is not required to transfer any amount to
investor education and protection fund in accordance with relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
8) The company does not have any accumulated losses of more than 50% of
its net worth at the end of the financial year and there was no cash
loss during the financial year covered by our Audit and in the
immediately preceding financial year.
9) Based on our Audit procedures and according to the information and
explanations provided by the company, the company has not defaulted in
repayment of any dues to financial institutions or banks or debenture
10) In our opinion and according to the information and explanations
provided by the company, the company has not given any guarantees for
loans taken by others from banks or other financial institutions.
11) Based on our Audit procedures and explanations given to us and on
the basis of our examination, The Company has not raised any term
12) Based on our Audit procedures performed and the information and
explanations provided by the company, no fraud on or by the company has
been noticed or reported during the course of our audit.
For S A R A & ASSOCIATES
FIRM REGN NO.: 120927W
Govind Gopal Sharma
M. No. 132454
Place : Mumbai
Date : 29 May 2015