We have audited the attached Balance Sheet of UNIVERSAL MEDIA NETWORK
LIMITED as at 31st March, 2002 and also the Profit & Loss Account for
the year ended on that date annexed thereto. These financial statements
are the responsibility of Companys Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
1. As required by the Manufacturing and Other Companies (Auditors
Report) Order 1988, issued by the Company Law Board under Section 227
(4A) of the Companies Act, 1956, we enclose in the annexure a statement
on the matters specified in the said order.
2. Further 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 purpose of our
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 and the Profit & Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in sub-section (3C)
of section 211 of the Companies Act, 1956;
e) Based on information received from Directors and taken on record by
the Board of Directors, none of the Directors is disqualified from
being appointed as a Director in terms of amended Section 274(1)(g) of
the Companies Act, 1956;
f) Subject to Note no. 1B and 1G of Schedule Q regarding certain
expenses and income accounted on cash basis and some investments of
being held in the name of the Company, in our opinion and to the best
of our information and according to the explanations given to us, the
said accounts read together with other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view 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 313 March, 2002.
ii. In the case of the Profit & Loss Account, of the Profit for the
year ended on that date.
Annexure to the Auditors Report referred to in paragraph 1 of our
report of even date
1. The Company has maintained reasonable records to show full
particulars including quantitative details and location of Fixed Assets
which have been physically verified by the management at reasonable
interval and no discrepancies have been noticed on such verification.
2. None of the Fixed Assets have been revalued during the year.
3. According to the explanations and information given to us, the
procedure of physical verification of stock followed by the management
are reasonable and adequate in relation to the size of the Company and
the nature of its business.
4. No discrepancies were noticed on such verification between the
physical stocks and the books records.
5. On the basis of the examination of books & records, we are of the
opinion that valuation is fair and proper and is in accordance with the
generally accepted accounting principles.
6. According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956, in which Directors are interested as
contemplated under Section 299 of the said Act.
7. In respect of the loans and advances in the nature of loans given
by the Company, where stipulations have been made, the parties are
generally repaying the principal amounts as stipulated and have and
also been regular in the payment of interest wherever applicable.
8. The Company has not accepted any deposits from the public within
the meaning of Section 58A of the Companies Act, 1956.
9. The Company dnot have an internal audit system, hence no comments
have been made.
10. According to the information and explanations given to us, and the
records examined by us, no undisputed amounts payable in respect of
Income Tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty were
outstanding as at the end of the year for a period of more than six
months from the date they became payable except for T. D. S. payable of
Rs. 21,795/- and Income Tax Rs. 19,72,347/-.
11. There is adequate internal control procedure commensurate with the
size of the Company and the nature of the business for the purchase and
sale of shares and securities.
12. In our opinion and according to the information and explanations
given to us, the transactions of purchase and sale of shares and
securities made in pursuance of contracts or arrangements entered with
the parties required to be listed under Section 301 of the Companies
Act, 1956 and aggregating during the year to Rs. 50,000/- or more in
respect of each party, have been made at prices which are reasonable
having regard to prevailing market prices for such shares and
securities or the price at which transaction for similar shares and
securities have been made with other parties.
13. According to the information and explanations given to us, no
personal expenses have been charged to the Profit & Loss Account other
than those payable under contractual obligation or in accordance with
generally accepted business practice.
14. The Company has been generally regular in depositing Provident Fund
& E.S.I, dues with the appropriate authorities.
15. According to the information and explanations given to us, the
Company has maintained proper record of transactions and contracts of
dealings in shares and timely entries have been made. However, some of
the investments are not held in the name of the Company.
16. Other provisions of the said order, in our opinion are not
applicable to the Company for the year under report.
For P. K. AJITSARIA & CO.
(Pawan Kr. Ajitsaria)
Dated: The 27th Day of June, 2002