UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTELY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2015
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 333-192399
KM WEDDING EVENTS MANAGEMENT, INC.
(Exact name of registrant as specified in its charter)
Delaware | 46-1290754 |
(State or other jurisdiction of | (I.R.S. Employer Identification Number) |
incorporation or organization) |
|
11501 Dublin Blvd., Suite 200, Dublin, CA 94568
(Address of principal executive office and zip code)
(925) 891-8029
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)
Large accelerated filer | ☐ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |
(Do not check if a smaller reporting company) |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
The numbers of shares outstanding of the issuer’s class of common stock as of November 1, 2015 was 42,096,160 shares of common stock outstanding.
1 |
KM WEDDING EVENTS MANAGEMENT, INC.
FORM 10-Q
For the Six Months Period Ended September 30, 2015
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION | PAGE |
ITEM 1. FINANCIAL STATEMENTS | 5 |
Condensed Consolidated Financial Statements | 5 |
Condensed Consolidated Balance Sheets at September 30, 2015 (unaudited) and March 31, 2015 | 5 |
Condensed Consolidated Statements of Income for the Three and Six Months Ended September 30, 2015 and 2014 (unaudited) | 6 |
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended September 30, 2015 and 2014 (unaudited) | 7 |
Condensed Consolidated Statement in Changes in Equity | 8 |
Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2015 and 2014 (unaudited) | 9 |
Notes to Condensed Consolidated Financial Statements (unaudited) | 10 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION | 19 |
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 23 |
ITEM 4. CONTROLS AND PROCEDURES | 23 |
PART II - OTHER INFORMATION | 23 |
ITEM 1. LEGAL PROCEEDINGS | 23 |
ITEM 1A. RISK FACTORS | 23 |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 23 |
ITEM 3. DEFAULTS UPON SENIOR SECURITIES | 24 |
ITEM 4. MINE SAFETY DISCLOSURES | 24 |
ITEM 5. OTHER INFORMATION | 24 |
ITEM 6. EXHIBITS | 24 |
2 |
KM WEDDING EVENTS MANAGEMENT, INC.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3 |
Caution Regarding Forward-Looking Statements
This quarterly report on Form 10-Q contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to the factors described in the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q for year ended March 31, 2015 filed with the Securities and Exchange Commission.
In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
Also, forward-looking statements represent our estimates and assumptions only as of the date of this report. You should read this report completely and with the understanding that our actual future results may be materially different from what we expect.
Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.
Use of Certain Defined Terms
Except where the context otherwise requires and for the purposes of this report only:
• | “We,” “us” and “our” refer to KM Wedding Events Management, Inc. and, except where the context requires otherwise, KM India. |
• | “KM” refers to KM Wedding Events Management, Inc., a Delaware corporation. |
• | “KM India” refers to KM Wedding Events Management Private Limited, India, which is majority owned by KM. |
• | “Indian Rupee”, Rs, and “Rupee” refers to Indian Rupee, the legal currency of India. |
• | “U.S. dollar”, “$” and “US$” refer to the legal currency of the U.S. |
4 |
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KM Wedding Events Management, Inc | ||||||||||||
Interim Condensed Consolidated balance sheet as at September 30, 2015 | ||||||||||||
(in US Dollars $ unless otherwise stated) | ||||||||||||
as at September 30, | as at March 31, | |||||||||||
Notes | 2015 | 2015 | ||||||||||
(unaudited) | ||||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 3 | 106,606 | 97,960 | |||||||||
Accounts receivable | 4 | 527,317 | 551,575 | |||||||||
Other current assets | 5 | 539,505 | 603,314 | |||||||||
Total current assets | 1,173,428 | 1,252,849 | ||||||||||
Non-current assets: | ||||||||||||
Property, plant and equipment, net | 6 | 113,999 | 124,073 | |||||||||
Intangible assets, net | 7 | 17,023 | 22,465 | |||||||||
Goodwill | 21 | 692,850 | 685,007 | |||||||||
Film costs | 24 | 20,254 | 12,289 | |||||||||
Deferred tax asset, net | 61,731 | 4,066 | ||||||||||
Other non-current assets | 8 | 90,209 | 97,903 | |||||||||
Total non-current assets | 996,066 | 945,803 | ||||||||||
Total assets | 2,169,494 | 2,198,652 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts payable and accrued liabilities | 9 | 245,485 | 190,087 | |||||||||
Statutory liabilities | 10 | 259,517 | 247,731 | |||||||||
Short-term loans & current portion of long term debt | 11 | 179,888 | 217,843 | |||||||||
Unsecured loans from related parties, net of advances | 20 | 126,934 | 85,933 | |||||||||
Other current liabilities | 13 | 268,686 | 140,796 | |||||||||
Total current liabilities | 1,080,510 | 882,390 | ||||||||||
Non-current liabilities: | ||||||||||||
Long-term debt | 12 | 252,909 | 279,943 | |||||||||
Other non-current liabilities | 14 | 20,629 | 20,412 | |||||||||
Total non-current liabilities | 273,538 | 300,355 | ||||||||||
Equity: | ||||||||||||
Common stock par value $ 0.001 (shares outstanding: 42,096,160 and 42,096,160 as at September 30, 2015 and March 31, 2015, respectively) | 15 | 42,096 | 42,096 | |||||||||
Additional paid-in-Capital | 1,165,712 | 1,165,712 | ||||||||||
Accumulated deficit | (391,242 | ) | (228,981 | ) | ||||||||
Equity Attributable to equity holders of the company | 816,566 | 978,827 | ||||||||||
Non-Controlling Interest | (1,120 | ) | 37,080 | |||||||||
Total equity | 815,446 | 1,015,907 | ||||||||||
Total liabilities and equity | 2,169,494 | 2,198,652 | ||||||||||
The accompanying notes are an integral part to these interim condensed financial statements. |
5 |
KM Wedding Events Management, Inc | ||||||||||||||||||||
Interim Condensed Consolidated Statement of Income | ||||||||||||||||||||
(in US Dollars $ unless otherwise stated) | ||||||||||||||||||||
For the three months ended | For the three months ended | For the Six months ended | For the Six months ended | |||||||||||||||||
Notes | 30-Sep-15 | 30-Sep-14 | 30-Sep-15 | 30-Sep-14 | ||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
Revenues | ||||||||||||||||||||
Matrimonial service income | 16 | 130,547 | 331,086 | 299,012 | 602,890 | |||||||||||||||
Wedding event management income | — | 87,732 | 39,456 | 212,278 | ||||||||||||||||
Wedding infrastructure lease income | 2,915 | — | 10,549 | — | ||||||||||||||||
Total | 133,462 | 418,818 | 349,017 | 815,168 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||||
Matrimonial service expenses | 17 | 76,032 | 93,203 | 161,873 | 182,166 | |||||||||||||||
Wedding event management expenses | — | 74,633 | 31,170 | 172,153 | ||||||||||||||||
Wedding infrastructure maintenance expenses | 1,174 | — | 4,295 | — | ||||||||||||||||
Personnel costs | 66,777 | 82,860 | 164,323 | 165,214 | ||||||||||||||||
General and administrative expenses | 18 | 135,241 | 151,979 | 235,350 | 237,763 | |||||||||||||||
Depreciation and amortization | 8,093 | 7,193 | 15,885 | 13,627 | ||||||||||||||||
Total | 287,317 | 409,868 | 612,896 | 770,923 | ||||||||||||||||
Operating Income / (loss) | (153,855 | ) | 8,950 | (263,879 | ) | 44,245 | ||||||||||||||
Other income / (expenses) | ||||||||||||||||||||
Foreign exchange gain / (loss) | 8,608 | 7,150 | 13,971 | 7,150 | ||||||||||||||||
Miscellaneous income | — | 275 | — | 275 | ||||||||||||||||
Interest Income | — | 7,953 | — | 7,953 | ||||||||||||||||
Finance charges | (20,638 | ) | (17,608 | ) | (40,882 | ) | (32,558 | ) | ||||||||||||
Total other income / (expenses), net | (12,030 | ) | (2,230 | ) | (26,911 | ) | (17,180 | ) | ||||||||||||
Income / (loss) before income tax expense | (165,885 | ) | 6,720 | (290,790 | ) | 27,065 | ||||||||||||||
Income taxes | ||||||||||||||||||||
Provision for Income taxes written back | 12,353 | — | 12,353 | — | ||||||||||||||||
Deferred tax benefit | 75,731 | — | 75,731 | — | ||||||||||||||||
Net income / (loss) | (77,801 | ) | 6,720 | (202,706 | ) | 27,065 | ||||||||||||||
Attributable to: | ||||||||||||||||||||
Equity holders of the company | (66,355 | ) | (30,955 | ) | (163,571 | ) | (25,832 | ) | ||||||||||||
Non-controlling interest | (11,446 | ) | 37,675 | (39,135 | ) | 52,897 | ||||||||||||||
Net income / (loss) | (77,801 | ) | 6,720 | (202,706 | ) | 27,065 | ||||||||||||||
Earnings / (loss) per share - basic and diluted | 19 | (0.0016 | ) | (0.0007 | ) | (0.0039 | ) | (0.0006 | ) | |||||||||||
The accompanying notes are an integral part to these interim condensed financial statements. |
6 |
KM Wedding Events Management, Inc | ||||||||||||||||||||||||||||
Interim Condensed Consolidated Statement of Changes in Equity | ||||||||||||||||||||||||||||
(in US Dollars $ unless otherwise stated) | ||||||||||||||||||||||||||||
Number of Shares | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Equity Attributable to equity holders of the company | Non-controlling interest | Total Equity | ||||||||||||||||||||||
As at March 31, 2014 | 41,646,160 | 41,646 | 1,031,162 | (268,403 | ) | 804,405 | (53,710 | ) | 750,695 | |||||||||||||||||||
Fresh issue of equity shares* | 425,000 | 425 | 127,075 | Nil | 127,500 | Nil | 127,500 | |||||||||||||||||||||
Net income / (loss) for the period [After adjusting Comprehensive Income/(Loss)] | Nil | Nil | Nil | (27,147 | ) | (27,147 | ) | 51,822 | 24,675 | |||||||||||||||||||
As at September 30, 2014 (unaudited) | 42,071,160 | 42,071 | 1,158,237 | (295,550 | ) | 904,758 | (1,888 | ) | 902,870 | |||||||||||||||||||
* 425,000 no of equity shares of par value $0.001 are issued at $0.30 per share. Also refer note 15 "Common Stock" | ||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||
As at March 31, 2015 | 42,096,160 | 42,096 | 1,165,712 | (228,981 | ) | 978,827 | 37,080 | 1,015,907 | ||||||||||||||||||||
Net income / (loss) for the period [After adjusting Comprehensive Income/(Loss)] | Nil | Nil | Nil | (162,261 | ) | (162,261 | ) | (38,200 | ) | (200,461 | ) | |||||||||||||||||
As at September 30, 2015 (unaudited) | 42,096,160 | 42,096 | 1,165,712 | (391,242 | ) | 816,566 | (1,120 | ) | 815,446 | |||||||||||||||||||
The accompanying notes are an integral part to these interim condensed financial statements. |
7 |
KM Wedding Events Management, Inc | ||||||||||||||||
Interim Condensed Consolidated Statement of Comprehensive Income | ||||||||||||||||
(in US Dollars $ unless otherwise stated) | ||||||||||||||||
For the three months ended | For the three months ended | For the Six months ended | For the Six months ended | |||||||||||||
30-Sep-15 | 30-Sep-14 | 30-Sep-15 | 30-Sep-14 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Net income / (loss) | (77,801 | ) | 6,720 | (202,706 | ) | 27,065 | ||||||||||
Other Comprehensive Loss | ||||||||||||||||
Foreign Currency Translation Profit/(Loss) | 1,868 | (2,240 | ) | 2,245 | (2,390 | ) | ||||||||||
Total Other Comprehensive Loss | 1,868 | (2,240 | ) | 2,245 | (2,390 | ) | ||||||||||
Attributable to: | ||||||||||||||||
Equity holders of the company | 1,090 | (1,307 | ) | 1,310 | (1,315 | ) | ||||||||||
Non-controlling interest | 778 | (933 | ) | 935 | (1,075 | ) | ||||||||||
Comprehensive Income/(loss) | (75,933 | ) | 4,480 | (200,461 | ) | 24,675 | ||||||||||
The accompanying notes are an integral part to these interim condensed financial statements. |
8 |
KM Wedding Events Management, Inc | ||||||||
Interim Condensed Consolidated Statement of cash flow | ||||||||
(in US Dollars $ unless otherwise stated) | ||||||||
For the Six months ended | For the Six months ended | |||||||
30-Sep-15 | 30-Sep-14 | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities | ||||||||
Net income / (loss) | (202,706 | ) | 27,065 | |||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities | ||||||||
Depreciation and amortization | 15,885 | 13,627 | ||||||
Unrealized foreign exchange (gain) / loss | (14,213 | ) | (7,150 | ) | ||||
Bad debts | 7,777 | 20,888 | ||||||
Amortization of film costs | 18,829 | 17,549 | ||||||
Marketing Charges - Shares issued as consideration | — | 67,500 | ||||||
Deferred tax benefit | (75,731 | ) | — | |||||
Provision for Income taxes written back | (12,353 | ) | — | |||||
Changes in operating assets and liabilities | ||||||||
(Increase) / Decrease in accounts receivables | 12,231 | (79,328 | ) | |||||
(Increase) / Decrease in other current assets | 66,957 | (23,825 | ) | |||||
(Increase) / Decrease in film costs | (27,573 | ) | 17,670 | |||||
(Increase) / Decrease in other non-current assets | 2,987 | 28,764 | ||||||
Increase / (Decrease) in accounts payable | 62,191 | 30,586 | ||||||
Increase / (Decrease )in income tax and other statutory liabilities | 24,353 | 54,999 | ||||||
Increase / (Decrease) in other current liabilities | 137,580 | (161,704 | ) | |||||
Increase / (Decrease) in other non-current liabilities | 1,256 | 369 | ||||||
Net cash provided by (used in) operating activities | 17,470 | 7,010 | ||||||
Cash flows from investing activities | ||||||||
Additions to property, plant and equipment | (7,329 | ) | (7,704 | ) | ||||
Investments in long-term investments | — | 4,186 | ||||||
Advance given for Investment | — | (60,000 | ) | |||||
Net cash provided by (used in) investing activities | (7,329 | ) | (63,518 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from short term debts | 17,146 | (18,932 | ) | |||||
Proceeds from issue of Equity Shares | — | 60,000 | ||||||
Proceeds from / (repayment of) long term debts | (13,682 | ) | (905 | ) | ||||
Net cash provided by (used in) financing activities | 3,464 | 40,163 | ||||||
Effect of exchange rate changes on cash | 4,959 | 2,423 | ||||||
Net increase in cash and cash equivalents | 8,646 | (13,922 | ) | |||||
Cash and cash equivalents, beginning of period | 97,960 | 88,616 | ||||||
Cash and cash equivalents, end of period | 106,606 | 74,694 | ||||||
Supplementary disclosures of cash flow information | ||||||||
Cash paid during the year for: | ||||||||
Interest paid | 40,882 | 31,656 | ||||||
Income taxes paid | 1,814 | 2,602 | ||||||
Non-cash items: | ||||||||
Allotment of common stock | — | 67,500 | ||||||
The accompanying notes are an integral part to these interim condensed financial statements. |
9 |
KM Wedding Events Management, Inc
Notes to Interim Condensed Consolidated financial statements
(in US Dollars $ unless otherwise stated)
1. General
KM Wedding Events Management, Inc ('the Company') was incorporated on October 24, 2012 in the state of Delaware, United States of America.
Company is a service provider in the matrimonial industry through mass media through its subsidiary KM Wedding Events Management Private Limited (formerly known as "KM Matrimony Private Limited", India) in Tamil Nadu, India. As of September 30, 2015, the Company maintains a 58.33% ownership interest in KM Wedding Events Management Private Limited, India.
2. Significant Accounting Policies
a. Basis of Consolidation
The company has invested $ 569,000 to acquire 2,841,398 no of Equity shares of KM Wedding Events Management Private Limited, India. Subsequent to this investment, KM Wedding Events Management Private Limited, India has become subsidiary of this company. The agreement for such acquisition was entered in the month of February 2013 and executed in the month of April 2013.
b. Form and Content of the Financial Statements
The Company maintains its books and records in accordance with generally accepted accounting policies in USA (“US GAAP”). The accompanying financial statements were derived from the Company’s statutory books and records. The financial statements are presented in US Dollars ($), the national currency of USA.
Revenue and related expenses generated from our international subsidiary is generally denominated in the currency of Indian Rupee (Rs.). The statements of income of our international subsidiary is translated into U.S. dollars at exchange rates indicative of market rates during each applicable period.
The interim condensed financial statements included herein are unaudited and have been prepared in accordance with US GAAP for interim financial reporting (primarily with topic 270, Interim Reporting, of Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC")), and do not include all disclosures required by US GAAP. The company has omitted disclosures which would substantially duplicate the information contained in its 2015 audited financial statements, such as accounting policies. Additionally, the company has provided disclosures where significant events have occurred subsequent to the issuance of its 2015 audited financial statements. Management believes that the disclosures are adequate to make the information presented not misleading if these interim condensed financial statements are read in conjunction with the company’s 2015 audited financial statements and the notes related thereto. In the opinion of management, the financial statements reflect all adjustments of a normal and recurring nature necessary to present fairly, the company’s financial position, results of operations and cash flows for the interim reporting periods.
The results of operations for six months ended September 30, 2015 may not be indicative of the results of operations for the full year ending March 31, 2016. Subsequent events have been evaluated through November 21, 2015, the date these financial statements were issued.
The closing exchange rate as of September 30, 2015 and March 31, 2015 was 65.50 and 62.31 Indian Rupees to one US dollar, respectively. The average exchange rates for the six months ended September 30, 2015 was 64.1518
c. Management Estimates
The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the amounts of revenues and expenses recognized during the period. Management believes it has a reasonable and appropriate basis for its judgment pertaining to its estimates and assumptions. However, actual results could differ from those estimates.
d. Comprehensive Loss
The company's other comprehensive loss consists of unrealized gains(losses) on foreign currency translation adjustments.
10 |
3. | Cash and cash equivalents | ||||||
Cash and cash equivalents as at September 30, 2015 comprises the following: | |||||||
Particulars | as at | as at | |||||
30 September, 2015 (Unaudited) | 31 March , 2015 | ||||||
(a) | Cash on hand | 85,664 | 89,219 | ||||
(b) | Balance with banks on current accounts | 20,942 | 8,741 | ||||
Total | 106,606 | 97,960 | |||||
4. | Accounts receivable | ||||||
Accounts receivable as at September 30, 2015 comprises the following: | |||||||
Particulars
| as at | as at | |||||
30 September, 2015 (Unaudited) | 31 March , 2015 | ||||||
(a) | Customers (trade) | 527,317 | 551,575 | ||||
Total | 527,317 | 551,575 | |||||
5. | Other current assets | |||
Other current assets as at September 30, 2015 comprises the following: | ||||
Particulars | as at | as at | ||
30 September, 2015 (Unaudited) | 31 March , 2015 | |||
(a) | Event advances | 205,777 | 216,312 | |
(b) | Staff advances | 37,991 | 39,802 | |
(c) | Advance tax (net of provision for income tax) | 8,522 | - | |
(d) | Loans and advances | 286,503 | 333,562 | |
(e) | Prepaid expenses | 712 | 13,638 | |
Total | 539,505 | 603,314 |
11 |
6. | Property, plant and equipment, net | ||||||||||
Property, plant and equipment as at September 30, 2015 comprises the following: | |||||||||||
Particulars | Gross carrying value | Accumulated depreciation | Net carrying value | ||||||||
30 Sep, 2015 (Unaudited) | 31-Mar-15 | 30 Sep, 2015 (Unaudited) | 31-Mar-15 | 30 Sep, 2015 (Unaudited) | 31-Mar-15 | ||||||
(a) | Vehicles | 40,067 | 42,118 | 8,011 | 6,502 | 32,056 | 35,616 | ||||
(b) | Computers & Peripherals | 70,207 | 73,802 | 65,729 | 68,367 | 4,478 | 5,435 | ||||
(c) | Furniture & Fixtures | 13,541 | 14,234 | 6,797 | 6,432 | 6,744 | 7,802 | ||||
(d) | Office Equipments | 63,592 | 61,173 | 34,112 | 32,533 | 29,480 | 28,640 | ||||
(e) | Leasehold improvements | 76,690 | 80,616 | 44,041 | 42,254 | 32,649 | 38,362 | ||||
(f) | Plant & Machinery | 10,622 | 9,295 | 2,030 | 1,077 | 8,592 | 8,218 | ||||
Total | 274,719 | 281,238 | 160,720 | 157,165 | 113,999 | 124,073 | |||||
Operating leases | ||||||||||||||||||||||
The total amount of operating lease expenses is as follows: | ||||||||||||||||||||||
Particulars | For the Six Months ended | For the Six Months ended | ||||||||||||||||||||
30 September, 2015 (unaudited) | 30 September, 2014 (Unaudited) | |||||||||||||||||||||
Lease Expenses | 34,200 | 18,103 | ||||||||||||||||||||
7. | Intangible assets, net | ||||||||
Intangible assets as at September 30, 2015 comprise the following: | |||||||||
Particulars | Gross carrying value | Accumulated amortization | Net carrying value | ||||||
30 Sep, 2015 (Unaudited) | 31-Mar-15 | 30 Sep, 2015 (Unaudited) | 31-Mar-15 | 30 Sep, 2015 (Unaudited) | 31-Mar-15 | ||||
(a) | Software | 51,045 | 53,658 | 34,022 | 31,193 | 17,023 | 22,465 | ||
Total | 51,045 | 53,658 | 34,022 | 31,193 | 17,023 | 22,465 | |||
12 |
8. | Other non-current assets | ||||||||||||||||||||||
Other non-current assets as at September 30, 2015 comprises the following: | |||||||||||||||||||||||
Particulars | as at | as at | |||||||||||||||||||||
30 September, 2015 (Unaudited) | 31 March, 2015 | ||||||||||||||||||||||
(a) | Rental advance | 17,405 | 25,156 | ||||||||||||||||||||
(b) | Deposits | 60,632 | 63,536 | ||||||||||||||||||||
(c) | Software under application development stage | 12,172 | 9,211 | ||||||||||||||||||||
Total | 90,209 | 97,903 | |||||||||||||||||||||
9. | Accounts payable and accrued liabilities | |||||
Accounts payable and accrued liabilities as at September 30,2015 comprises the following: | ||||||
Particulars | as at | as at | ||||
30 September, 2015 (Unaudited) | 31 March, 2015 | |||||
(a) | Accounts payable | 154,668 | 87,895 | |||
(b) | Salary payable | 10,302 | 24,094 | |||
(c) | Current portion of provision for gratuity | 1,801 | 1,701 | |||
(d) | General and administrative expenses payable | 78,714 | 76,397 | |||
Total | 245,485 | 190,087 | ||||
10. | Statutory liabilities | |||
Income tax and other statutory liabilities as at September 30,2015 comprises the following: | ||||
Particulars | as at | as at | ||
30 September, 2015 (Unaudited) | 31 March, 2015 | |||
(a) | Service tax | 185,029 | 156,573 | |
(b) | Provident fund | 12,394 | �� 25,192 | |
(c) | Employees state insurance | 2,523 | 6,291 | |
(d) | Professional tax | 5,489 | 5,554 | |
(e) | Withholding tax | 54,082 | 31,350 | |
(f) | Income tax | – | 22,771 | |
Total | 259,517 | 247,731 |
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11. | Short term borrowings and long term debt | |||
Short term loans and borrowings as at September 30,2015 comprises the following: | ||||
Particulars | as at | as at | ||
30 September, 2015 (Unaudited) | 31 March, 2015 | |||
(a) | Bank overdraft1 | 153,937 | 172,122 | |
(b) | Unsecured loan | 2,000 | 23,469 | |
(c) | Secured loan | - | 196 | |
(d) | Current portion of long-term debt | 23,951 | 22,056 | |
Total | 179,888 | 217,843 |
1The bank overdraft facility is secured by way of hypothecation of trade receivables, current assets and fixed assets of the company except vehicles financed by other banks / financial institutions
12. | Long Term Debt | ||||
Long term debt comprise the following: | |||||
Particulars | as at | as at | |||
30 September, 2015 (Unaudited) | 31 March, 2015 | ||||
(a) | Secured loans1 | 257,892 | 279,161 | ||
(c) | Vehicle loans2 | 18,968 | 22,838 | ||
276,860 | 301,999 | ||||
(d) | Current portion of long-term debt | (23,951) | (22,056) | ||
Total | 252,909 | 279,943 |
1During the quarter ended March 31, 2015, the company, its directors and relatives of directors have availed a term loan on a joint and several liability basis from ICICI Bank for an amount of $ 694,656. The company’s liability has been initially recognized in the financial statements at $ 267,941 under secured loans. The personal properties of the directors has been provided as security for availing the said loan. The loan is repayable in 120 equated monthly instalments and carries interest at the base rate plus a margin of 1.75%. The loan arrangement has been approved by the Board of Directors in the Board Meeting held on January 12, 2015 and a Memorandum of Understanding has been entered into between the company and its co-obligors. The total outstanding amount as at September 30, 2015 and March 31, 2015 towards this debt arrangement is $ 668,604 and $ 723,745 respectively. The carrying amount of the company’s liability as at September 30, 2015 and March 31, 2015 is $ 257,892 and $ 279,161 respectively.
2The interest rates of these Vehicle loans range from 11 % to 16 %. These loans are repayable in monthly instalments ranging from 36 months to 60 months. These loans are secured against the respective assets.
The scheduled aggregate maturity of long-term debt outstanding as at September 30, 2015 is as follows:
Particulars | As at September 30, 2015 (Unaudited) | |
2016 | 11,597 | |
2017 | 25,453 | |
2018 | 26,371 | |
2019 | 27,920 | |
2020 | 26,390 | |
Thereafter | 159,129 | |
Total long term debt | 276,860 |
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13. | Other current liabilities | |||
Other current liabilities as at September 30, 2015 comprises the following: | ||||
Particulars | as at | as at | ||
30 September, 2015 (Unaudited) | 31 March, 2015 | |||
(a) | Unearned revenues (i.e. billings in excess of revenue) | 119,801 | 95,538 | |
(b) | Advances received | 148,885 | 45,258 | |
Total | 268,686 | 140,796 |
14. | Other non-current liabilities | |||
Other non-current liabilities as at September 30, 2015 comprises the following: | ||||
Particulars | as at | as at | ||
30 September, 2015 (Unaudited) | 31 March, 2015 | |||
(a) | Trade Deposits | 5,418 | 5,856 | |
(b) | Provision for gratuity | 15,211 | 14,556 | |
Total | 20,629 | 20,412 |
15. | Common Stock | ||||
The company has only one class of equity shares having par value of $ 0.001 per share. Each holder of equity shares is entitled to one vote per share. The authorized Equity share capital (number of shares) of the company is 300,000,000 shares as at September 30, 2015 and March 31, 2015. The issued, subscribed and paid-up equity share capital (number of shares) of the company is 42,096,160 shares as at September 30, 2015 and 42,096,160 shares as at March 31, 2015. | |||||
(i) 4,596,160 number of shares are issued at a price of $ 0.05 per share | |||||
(ii) 4,050,000 number of shares are issued at a price of $ 0.20 per share | |||||
(iii) 33,000,000 number of shares at par value of $ 0.001 per share are issued for consideration other than cash. | |||||
(iv) 200,000 number of shares are issued at a price of $ 0.30 per share | |||||
(v) 250,000 number of shares are issued for consideration other than cash at a price of $ 0.30 per share | |||||
The shares are issued at a price mutually agreed by the shareholders pursuant to an agreement entered with them. | |||||
Preferred Stock | |||||
The authorized Preference share capital (number of shares) of the company is 10,000,000 shares having a par value of $ 0.001 per share as at September 30, 2015. The issued, subscribed and paid-up Preference share capital is Nil as at September 30, 2015. | |||||
The Shareholders who have subscribed 4,050,000 number of shares at the rate of $0.20 per share have an option to purchase a warrant for every two shares held which entitles the holder to purchase an additional share at the rate of $0.40 per share for the period of two years from the date of issuance. | |||||
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16. |
Matrimonial service income | |||||
Particulars | For the three months ended | For the Six months ended | ||||
30/Sep/15 | 30/Sep/14 | 30/Sep/15 | 30/Sep/14 | |||
(a) | Profile Registration and Event Incomes | 112,022 | 170,862 | 239,923 | 387,908 | |
(b) | Sponsorship Income and advertisement Income | 4,193 | 46,341 | 9,322 | 76,170 | |
(c) | Sale of products(magazines)/Television series/television rights | 14,332 | 113,883 | 49,767 | 138,812 | |
Total | 130,547 | 331,086 | 299,012 | 602,890 | ||
17. | Matrimonial service expenses | |||||
Particulars | For the three months ended | For the Six months ended | ||||
30/Sep/15 | 30/Sep/14 | 30/Sep/15 | 30/Sep/14 | |||
(a) | Event expenses | 11,611 | 42,929 | 53,136 | 71,161 | |
(b) | Production and telecast expenses - television series | 37,584 | 27,588 | 58,635 | 55,297 | |
(c) | Publication expenses | 4,973 | 9,036 | 14,882 | 28,699 | |
(d) | Sub-contracting charges | 10,280 | - | 10,280 | - | |
(e) | ARC commission | 2,075 | 4,608 | 6,111 | 9,460 | |
(f) | Amortization of film cost | 9,509 | 9,042 | 18,829 | 17,549 | |
Total | 76,032 | 93,203 | 161,873 | 182,166 | ||
18. | General and administrative expenses | |||||
Particulars | For the three months ended | For the Six months ended | ||||
30/Sep/15 | 30/Sep/14 | 30/Sep/15 | 30/Sep/14 | |||
(a) | Lease expenses | 16,577 | 9,645 | 34,596 | 18,697 | |
(b) | Repairs & Maintenance | 3,415 | 7,893 | 7,314 | 14,507 | |
(c) | Insurance | 374 | 205 | 553 | 728 | |
(d) | Electricity charges | 2,550 | 2,725 | 5,748 | 5,784 | |
(e) | Audit fees | 2,117 | 2,269 | 4,287 | 4,568 | |
(f) | Filing Charges | 3,700 | 14,500 | 4,000 | 23,828 | |
(g) | Bank charges | 1,617 | 3,135 | 4,773 | 5,841 | |
(h) | Bad debts | 4,924 | 13,659 | 7,777 | 20,888 | |
(i) | Travelling and conveyance | 1,356 | 8,963 | 2,062 | 18,515 | |
(j) | Professional charges | 45,208 | 15,944 | 62,708 | 25,938 | |
(k) | Printing & Stationery | 1,026 | 944 | 2,167 | 2,331 | |
(l) | Telephone, Courier & Postage | 4,315 | 5,981 | 8,783 | 12,597 | |
(m) | Security charges | 1,016 | 1,088 | 2,046 | 2,192 | |
(n) | Business promotion expenses | 46,172 | 58,611 | 85,000 | 73,750 | |
(o) | Others | 874 | 6,417 | 3,536 | 7,599 | |
Total | 135,241 | 151,979 | 235,350 | 237,763 | ||
19. | Earnings / (loss) per share (EPS) | |||||
Particulars | For the three months ended | For the Six months ended | ||||
30/Sep/15 | 30/Sep/14 | 30/Sep/15 | 30/Sep/14 | |||
(a) | Net income / (loss) | (66,355) | (30,955) | (163,571) | (25,832) | |
(b) | Weighted average number of equity shares outstanding | 42,096,160 | 41,646,160 | 42,096,160 | 41,721,845 | |
Earnings / (loss) per share - basic and diluted | (0.0016) | (0.0007) | (0.0039) | (0.0006) |
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20. | Related party disclosures | |
(a) | Names of related party and relationship | |
(i) Key Management Personnel ('KMP') | ||
(a) Mr. T V Mohan- Chairman and Director | ||
(b) Ms. Meera Nagarajan - President, CEO and Managing Director | ||
(c) Mr. Vijaya Bhaskar Venkatesan- CFO, Director, Treasurer and Director of technologies | ||
(ii) Relatives of KMP | ||
(a) Mr. Sridhar Kalyanasundaram |
Particulars | KMP and Relative of KMP | |
2015 (unaudited) | 2014 (unaudited) | |
Transactions | ||
Advances given for business purposes | 51,918 | 198,555 |
Settlement of advances given for business purposes /advance received form the director | 235,775 | 60,040 |
Repayment of unsecured loans | 137,721 | 2,794 |
Closing balances | ||
Advances received from Directors (credit bal.) | 29,409 | - |
Advances given for business purposes (debit bal.) | - | 207,238 |
Unsecured loans received (credit bal.) (Refer note below) | 97,525 | 280,114 |
21. | Goodwill | |
Particulars | ||
Goodwill1 | 679,948 | |
Add: Cumulative Translation adjustment | 12,902 | |
Balance as at September 30, 2015 | 692,850 |
1Goodwill arises in the process of acquiring KM Wedding Events Management Private Limited, India (formerly known as "KM Matrimony Private Limited", India). In April 2013, the Company acquired 55.32% interest of KM Wedding Events Management Private Limited, India (formerly known as "KM Matrimony Private Limited", India). As of September 30, 2015, 58.33% of the shares of KM Wedding Events Management Private Limited are being held by the Company. This acquisition has been accounted as a business combination.
Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. It is assigned to reporting units as of the acquisition date. As per ASC 805-20-55-6, the value of an acquired intangible asset which are not identifiable as of the acquisition date is subsumed into Goodwill. The assets and liabilities are acquired at book value as there is no significant deviation from fair value. There are no related contingent consideration arised.
Impairment of Goodwill will be tested on annual basis at the end of the year.
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22. | Employee Benefits | |||||||||
Defined Benefit Plan | ||||||||||
The liability recognized in the balance sheets as at September 30, 2015 is as follows. The obligations are unfunded as on the dates of balance sheets. | ||||||||||
Particulars | As at September 30 | |||||||||
2015 (Unaudited) | 2014 (Unaudited) | |||||||||
(a) | Gratuity liability recognized in the balance sheet | 17,012 | 7,257 | |||||||
Weighted average assumptions used to determine net gratuity cost and benefit obligations: | ||||||||||
For the Six months ended September 30, | ||||||||||
Particulars | 2015 (Unaudited) | 2014 (Unaudited) | ||||||||
(a) | Discount rate | 7.80% p.a. | 8.50% p.a. | |||||||
(b) | Long-term rate of compensation increase | 7.50% p.a. | 10.00% p.a. | |||||||
(c) | Rate of return on plan assets | N.A. | N.A. | |||||||
23. Going Concern
The financial statements have been prepared on the basis that the company is a going concern & thereby no adjustments are required to be made to the carrying amount of assets and liabilities.
24. Film Costs
The amount of unamortized film costs disclosed in the balance sheet pertains to completed and not released films with respect to the television series. The entire amount of unamortized film costs is expected to be amortized during the next one year.
25. Commitments and Contingencies
Statutory Dues
Penalties, if any, on account of delay in payment of service tax and other statutory dues are unascertainable.
26. Previous Period Figures
Figures of previous period have been regrouped / rearranged, wherever required to confirm to the current period presentation.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ TOGETHER WITH THE CONSOLIDATED FINANCIAL STATEMENTS OF KM WEDDING EVENTS MANAGEMENT, INC. AND THE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Overview of Our Business
We have been involved in the wedding services industry in South India since 2004. “KM” is our brand, which is a short form for ‘KalyanaMalai’ meaning ‘Wedding Garland’ in South Indian language. Our services comprise of Matrimonial (Matchmaking) Services (“Matrimonial Services”) and Wedding Services (until June 30, 2015).Considering various business related aspects (including socio-economic aspects), the Company has decided to have a dedicated focus on Matrimonial Services business commencing July 1, 2015.
Matrimonial Services include matchmaking and partner identification, through multiple delivery channels via print and visual media, website, physical centers and events. In order to increase traction in the Matrimonial services business, we started leasing wedding halls (physical infrastructures where a wedding is conducted, similar to banquet halls of hotels). The first wedding hall has already commenced operations.
In India, we currently focus on the geographic locations of Tamil Nadu and Andhra Pradesh (two of the Southern States in India). We believe that we are well positioned to utilize the potential of the Matrimonial Services market because of our early presence in this market since 2004. We have conducted promotional events across the U.S.to capture the market potential. We are continuing our efforts to expand our presence in the US. Our target customers include the Indian high-income group, higher middle-income group, and other affluent individuals both in the U.S. and India. This segment, being upwardly mobile and comfort and service focused, is the right target group for our business strategy.
We, through our subsidiary KM India, have been servicing the Indian Diaspora in the U.S. through our website since 2004 which was followed up by Community Meets (events focused on bringing together individuals who are seeking a life partner and who share similar backgrounds (e.g., profession, socio-economic background, religion, etc.) conducted during the fiscal year 2011 in 5 cities (New York City, South Windsor (Connecticut), Boston, Houston and San Antonio) which was attended by approximately 1,200 prospective matrimonial customers. In October 2013, we also filmed for SUN TV across 6 different US cities (New York, South Windsor Connecticut), New Brunswick, San Jose, Dallas and Houston), which was attended by over 5,400 South Indian community members.
Based on the experience gained from the above activities, we believe that there is a demand and need in the Indian Diaspora in the U.S. for our Matrimonial Services. We believe a customized and focused approach is required to market to this segment. The current plan for exploring this business opportunity includes setting up offices in the U.S. (fiscal 2015), growing Matrimonial Services for weddings to be fixed in India by Indians in the U.S. launching a customized website for Matrimonial Services in the U.S. market (fiscal 2016-17).
Comparison of Three Months Ended September 30, 2015 and Three Months Ended September 30, 2014
Results of Operations
Our financial performance for the three months ended September 30, 2015 compared to the three months ended September 30, 2014 are discussed and analyzed below. For the purpose of comparison, conversion of Indian Rupees to USD is done based on the average exchange rate for the period for Income and Expenditure items and at the closing exchange rate for Balance Sheet items. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
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For the three months ended September 30, 2015, the Company generated revenue of $133,462 compared to $418,818 for the corresponding period in the previous year.
In terms of revenue mix 98% of the revenues were generated from Matrimonial Services (79% for the corresponding three month period in the previous year); Nil from the Wedding Services (21% for the corresponding three month period in the previous year) and 2% of the revenues were generated from wedding infrastructure leasing services (Nil for the corresponding three month period in the previous year).
During the three month period ended September 30, 2015, the Company incurred $287,317 of operating expenses compared to $409,868 for the corresponding three month period in the previous year, which included:
• | Matrimonial Service expenses of $76,032 compared to $93,203 for the corresponding three month period in the previous year, which represents 58% of matrimonial revenues. | |
• | General and Administrative expense of $135,241 ($151,979 for the corresponding three month period in the previous year) which represents 101% of revenues compared to 36% for the corresponding three month period in the previous year. | |
• | Personnel expenses of $66,777 ($82,860 for the corresponding three month period in the previous year) representing 50% of revenues compared to 20% of revenues in the corresponding three month period in the previous year; and | |
• | Depreciation and Amortization expenses of $8,093 ($7,193 for the corresponding three month period in the previous year). |
For the three months ended September 30, 2015, the Company had operating loss of $153,855 compared to income of $8,950 for the corresponding period in the previous year. In addition, for the three month ended September 30, 2015, the Company had a net loss of $77,801 compared to income of $6,720 for the corresponding three month period in the previous year).
Comparison of Six Months Ended September 30, 2015 and Six Months Ended September 30, 2014
Results of Operations
Our financial performance for the six months ended September 30, 2015 compared to the six months ended September 30, 2014 are discussed and analyzed below. For the purpose of comparison, conversion of Indian Rupees to USD is done based on the average exchange rate for the period for Income and Expenditure items and at the closing exchange rate for Balance Sheet items. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
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For the six months ended September 30, 2015, the Company generated revenue of $349,017 compared to $815,168 for the corresponding period in the previous year.
In terms of revenue mix 86% of the revenues were generated from Matrimonial Services (74% for the corresponding six month period in the previous year); 11% from the Wedding Services (26% for the corresponding six month period in the previous year) and 3% of the revenues were generated from wedding infrastructure leasing services (Nil for the corresponding six month period in the previous year).
During the six month period ended September 30, 2015, the Company incurred $612,896 of operating expenses compared to $770,923 for the corresponding six month period in the previous year, which included:
• | Matrimonial Service expenses of $161,873 compared to $182,166 for the corresponding six month period in the previous year, which represents 54% of matrimonial revenues. | |
• | Wedding Service expense of $31,170 ($172,153 for the corresponding six month period in the previous year) which represents 79% of wedding services revenues compared to 81 % for the corresponding six month period in the previous year. | |
• | General and Administrative expense of $235,350 ($237,763 for the corresponding six month period in the previous year) which represents 67% of revenues compared to 29% for the corresponding six month period in the previous year. | |
• | Personnel expenses of $164,323 ($165,214 for the corresponding six month period in the previous year) representing 47% of revenues compared to 20% of revenues in the corresponding six month period in the previous year; and. | |
• | Depreciation and Amortization expenses of $15,885 ($13,627 for the corresponding six month period in the previous year). |
For the six months ended September 30, 2015, the Company had operating loss of $263,879 compared to income of $44,245 for the corresponding period in the previous year. In addition, for the six month ended September 30, 2015, the Company had a net loss of $202,706 compared to income of $27,065 for the corresponding six month period in the previous year).
Liquidity and Capital Resources
Overview
At September 30, 2015, the Company had cash equivalents of $106,606 and accumulated deficit of $391,242. At September 30, 2015, the Company had a positive working capital (including current portion of long-term debt) of $92,918 compared to positive working capital of $370,459 at March 31, 2015, resulting from:
• | Accounts Receivable of $527,317 at September 30, 2015 compared to $551,575 at March 31, 2015, which represents a 4% decrease; | |
• | Account Payable and accrued liabilities relating to accrued interest expense, unpaid professional fees, and unpaid general expenditures of $245,485 at September 30, 2015 compared to $190,087 at March 31, 2015, representing 29% increase; | |
• | Statutory liabilities of $259,517 at September 30, 2015 compared to $247,731 at March 31, 2015, representing 5% increase; | |
• | Personnel expenses of $164,323 ($165,214 for the corresponding six month period in the previous year) representing 47% of revenues compared to 20% of revenues in the corresponding six month period in the previous year; and. | |
• | Short-term loans and current portion in long-term debt of $179,888 at September 30, 2015 compared to $217,843 at March 31, 2015, representing a decrease of 17%; |
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• | Unsecured loans of $126,934 at September 30, 2015 compared to $85,933 at March 31, 2015, representing a 48% increase; | |
• | Other current liabilities of $268,686 at September 30, 2015 compared to $140,796 at March 31, 2015, representing a 91% increase; and | |
• | Non-current liabilities of $273,538 at September 30, 2015 compared to $300,355 at March 31, 2015, representing a reduction of 9%. |
Cash flows from Operating Activities
During the six month period ended September 30, 2015, net cash provided by operating activities was $17,470 compared to net cash provided by operations $7,010 during the corresponding period in the previous year.
Cash flows from Investing Activities
During the six month period ended September 30, 2015, net cash used in investing activities was $7,329 compared to $63,518 cash used for the corresponding period in the previous year.
Cash flows from Financing Activities
During the six month period ended September 30, 2015, net cash provided by financing activities was $3,464 compared to $40,163 provided by financing activities for the corresponding period in the previous year.
Future Capital Needs
At September 30, 2015, our working capital surplus was $92,918. We had $106,606 in cash and cash equivalents. We have evaluated our expected cash requirements over the next twelve months, and have determined that our existing cash resources are not sufficient to meet our anticipated needs during the next twelve months, and that additional financing is required to support current operations. In addition, we anticipate that further additional financing may be required to fund our business plan subsequent to that date, until such time as revenues and related cash flows become sufficient to support our operating costs.
The successful implementation of our business plan is dependent upon us receiving sufficient funds from the sale of securities and/or additional funding from management, the issuance of equity or debt, or through obtaining a credit facility. In additional, substantial expenditures will be required to enable us to expand and scale up our operations and quality of services. We will require additional financing from issuance of equity or debt, or through obtaining a credit facility, to execute our plan of operations. Our established bank-financing arrangements will not be adequate. Although management believes that the additional required funding will be obtained through the sale of securities, there is no guarantee we will be able to obtain the additional required funds in the future or that funds will be available on terms acceptable to us, if at all. If such funds are not available, management will be required to curtail its investments in additional sales and marketing and product development resources, and capital expenditures, which may have a material adverse effect on our future cash flows and results of operations, and its ability to continue operating as a going concern.
Brief Disclosure of Long Term Contractual Obligations
As at September 30, 2015, the Company has long term debts in the form of secured loans amounting to $276,860 and repayable as under:
Less Than One Year | $11,597 |
One to Three Years | $79,744 |
More than Three Years | $185,519 |
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Recent Accounting Pronouncements
As of September 30, 2015, there are no other recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements.
Off-Balance Sheet Arrangements
We do not have any off-balance arrangements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not required.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
The SEC defines the term “disclosure controls and procedures” to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. “Disclosure controls and procedures” include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures are designed to provide reasonable assurance that such information is accumulated and communicated to our management. Our management (with the participation of our Chief Executive Officer and Chief Financial Officer) has conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act). Based on such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.
Changes in Internal Controls over Financial Reporting
During the quarter ended September 30, 2015, there were no material changes in our internal control over financial reporting identified in connection with the evaluation performed during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we have disputes that arise in the ordinary course of business. Currently, there are no material legal proceedings to which we are a party, or to which any of our property is subject.
ITEM 1A. RISK FACTORS
Not applicable.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Nil.
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS
The following exhibits are filed as part of this Report
Exhibit No. | Description
| |
10.1 | Termination Agreement.* | |
31.1 | Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
31.2 | Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * | |
32.1 | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * | |
32.2 | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
101.INS | XBRL Instance Document* | |
101.SCH | XBRL Taxonomy Extension Schema* | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase* | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase* | |
101.LAB | XBRL Taxonomy Extension Label Linkbase* | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase* | |
* Filed herewith |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
KM WEDDING EVENTS MANAGEMENT, INC. | |
| |
Date: November 23, 2015 | By:/s/ Meera Nagarajan |
Meera Nagarajan, Chief Executive Officer |
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