We have audited the accompanying financial statements of SANGUINE MEDIA
LIMITED(the Company), which comprise the Balance Sheet as at
31stMarch, 2015, 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 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 maintenance of adequate accounting records in accordance with
the provisions 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.
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 thereunder.
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 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 internal financial control relevant
to the Company''s preparation of the financial statements that give a
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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, 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 on the financial
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, o f the state of affairs of the Company as
at 31stMarch, 2015, and its profit and its cash flow for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015, (''the
Order'') issued by the Central Government of India in exercise of power
conferred by sub section 11 of section 143 of the Act, we enclose in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. 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 asit appears from our examination of those
c) the Balance Sheet, the 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 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 the written representations received from the
directors as on 31st March, 2015taken on record by the Board of
Directors, none of the directors is disqualified as on31stMarch, 2015
from being appointed as a director in terms of Section 164 (2) of the
f) With respect to the other matters to be 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 disclosed the impact of pending litigations on its
financial position in its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There were no amount which were required to be transferred, to
the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditor''s Report to the
members of the Company on the financial statements for the year ended
31st March 2015, we report that:
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Company has a regular programme of physical verification of its
fixed assets and have been physically verified by the management at
reasonable intervals during the year and no material discrepancies have
been noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
(ii) (a) As per the information and explanations given to us, the
inventories have been physically verified by the management at
reasonable intervals during the year.
(b) In our opinion and as per the information and explanations given to
us, procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) The Company is maintaining proper records of inventories. In our
opinion, discrepancies noticed on physical verification of inventory
were not material in relation to the operations of the Company and the
same have been properly dealt with in the books of account.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 (''the Act'')
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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 inventory,
goods and services. During the course of our audit, we have not
observed any major weakness in the internal control system.
(v) The Company has not accepted any deposits from the public within
the meaning of section 73 of the Act and the rules framed there under.
(vi) In our opinion, maintenance of cost records has been specified by
the Central Government under sub-section (1) of section 148 of the
Companies Act, are not applicable to the Company.
(vii) (a) According to the information and explanation given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income tax, Wealth tax, Sales tax, Service tax, Excise duty, Value
added tax, cess, Professional tax and other material statutory dues
have been regularly deposited during the year by the Company with the
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees''
State Insurance, Income-tax, Sales tax, Excise duty, Value added tax,
Wealth tax, Cess, Professional tax were in arrears as at March 31, 2015
for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no material dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
have not been deposited on account of any dispute.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, there were
no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company, accordingly the
provisions of clause 3(vii c) of the Order are not applicable to the
(viii) The Company''s accumulated losses at the end of the financial
year are less than fifty percent of its net worth. The Company has not
incurred any cash losses in the current financial year and in the
immediately preceding financial year.
(ix) According to the information and explanations given to us, the
Company does not have any borrowings from any financial institution or
bank and does not issued any debentures as at the balance sheet date,
accordingly the provisions of clause 3(9) of the order are not
applicable to the company.
(x) In our opinion and according to the information and the
explanations given to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xi) In our opinion and according to the information and the
explanations given to us, the Company has not raised any term loans,
according the provision of clause 3(11) are not applicable.
(xii) According to the information and explanations given to us, no
material fraud on or by the company has been noticed or reported during
the course of our audit.
For A. K. RAJAGOPALAN & Co.
Firm Regd. No. 003405S
CA. T. R. ASHOK
Membership No: 026133