Zee News

1.  We have audited the attached Balance Sheet of Zee News Limited
 (the Company) as at 31st March, 2009 and also the Profit and Loss
 Account and the Cash Flow Statement of the Company for the year ended
 on that date, annexed thereto. These financial statements are the
 responsibility of the Companys management. Our responsibility is to
 express an opinion on these financial statements based on our audit.
 
 2.  We conducted our audit in accordance with the 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.
 
 3.  As required by the Companies (Auditors Report) Order, 2003 (the
 Order) issued by the Central Government of India in terms of sub
 section (4A) of Section 227 of the Companies Act, 1956, (the Act) and
 on the basis of such checks as we considered appropriate and according
 to the information and explanations given to us during the course of
 audit, we annex hereto a statement on the matters specified in
 paragraphs 4 and 5 of the said Order.
 
 4.  Further to our comments in the annexure referred to in paragraph
 (3) above, 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
 audit;
 
 b) In our opinion, proper books of account as required by law have been
 kept by the Company, so far as appears from our examination of those
 books;
 
 c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
 dealt with by this report are in agreement with the books of account;
 
 d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
 Flow Statement dealt with by this report comply with the accounting
 standards referred to in Section 211(3C) of the Act;
 
 e) On the basis of written representations received from the directors
 and taken on record by the Board of Directors, we report that none of
 the directors is disqualified as on 31st March, 2009 from being
 appointed as a director in terms of clause (g) of sub section (1) of
 the Section 274 of the Act;
 
 f) In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts read together with
 significant accounting policies and notes to accounts as per Schedule
 16, 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:
 
 i) In the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2009;
 
 ii) In the case of the Profit and Loss Account, of the profit for the
 year ended on that date; and
 
 iii) In the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 Annexure referred to in Paragraph (3) of our report to the members of
 Zee News Limited on the accounts for the year ended 31st March, 2009.
 
 (i) (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of its fi xed
 assets.
 
 (b) According to the information and explanations given to us, the
 fixed assets, except lying with third parties, have been physically
 verified by the management as per the phased program of verification
 and no material discrepancies were noticed on such verification. In our
 opinion, the frequency of such verification is reasonable having regard
 to the size and nature of its assets.
 
 (c) In our opinion, the fixed assets disposed off during the year were
 not substantial.
 
 (ii) (a) The inventory has been physically verified by the management
 (copyright of programs/ films rights verified with reference to title
 documents/agreements) at reasonable intervals during the year.
 
 (b) In our opinion, the procedures of physical verifi cation of
 inventory followed by the management are reasonable and adequate in
 relation to the size of the Company and the nature of its business.
 
 (c) In our opinion, the Company has maintained proper records of
 inventory and no discrepancies were noticed on physical verification as
 compared to the book records.
 
 (iii) (a) The Company has not granted any loans, secured or unsecured,
 to companies, firms or other parties covered in the register maintained
 under Section 301 of the Act.
 
 (b) The Company has not taken any loan, secured or unsecured, from
 companies, firms or other parties covered in the register maintained
 under Section 301 of the Act.
 
 (iv) In our opinion and according to the information and explanations
 given to us, there is an adequate internal control systems commensurate
 with the size of the Company and the nature of its business for the
 purchase of inventory, fixed assets and sale of goods and services.
 During the course of our audit, we have not observed any continuing
 failure to correct major weaknesses in the internal control system in
 respect of the aforesaid areas.
 
 (v) According to the information and explanations given to us, there
 are no contracts or arrangements the particulars of which are required
 to be entered into the register in pursuance of Section 301 of the Act.
 
 (vi) The Company has not accepted any deposits from the public during
 the year.
 
 (vii) The Company has an internal audit system commensurate with the
 size and nature of its business.
 
 (viii) We are informed that the Central Government has not prescribed
 the maintenance of cost records under Section 209 (1) (d) of the Act in
 respect of the Company’s activities.
 
 (ix) According to the records of the Company examined by us and
 information and explanations given to us:
 
 (a) The Company has been generally regular in depositing its statutory
 dues including Provident Fund, Investor Education and Protection Fund,
 Employees State Insurance, Income Tax, Sales Tax, VAT, Wealth Tax,
 Service Tax, Customs Duty, Excise Duty, Cess and others as applicable.
 There are no undisputed amounts payable in respect of the aforesaid
 dues which have remained outstanding as at 31st March, 2009 for a
 period of more than six months from the date they became payable.
 
 (b) There is no disputed amounts on account of Income Tax, Wealth Tax,
 Sales Tax, VAT, Custom Duty, Service Tax, Excise Duty and Cess which
 have not been deposited.
 
 (x) The Company does not have accumulated losses at the end of the
 financial year and has not incurred cash losses during the current
 financial year or in the immediately preceding financial year.
 
 (xi) On the basis of our examination of records and according to the
 information and explanations given to us, the Company has not defaulted
 in repayment of dues to banks and financial institutions.
 
 (xii) According to the information and explanations given to us, the
 Company has not granted any loans or advances on the basis of security
 by way of pledge of shares, debentures and other securities.
 
 (xiii) The Company is not chit fund or a nidhi/ mutual benefit fund/
 society.
 
 (xiv) The Company has not dealt in or traded in shares, securities,
 debentures and other investments during the year.
 
 (xv) According to the information and explanations given to us, the
 Company has not given any guarantees for loans taken by others from
 bank and financial institution.
 
 (xvi) According to the information and explanations given to us, the
 term loan raised during the year has been applied for the purposes for
 which they were raised.
 
 (xvii) On the basis of overall examination of Balance Sheet and the
 cash flows of the Company and related information as made available to
 us, we report that no short term funds have been utilized for long term
 investments.
 
 (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) The Company has not issued any secured debentures during the
 year.
 
 (xx) The Company has not raised money by way of public issue during the
 year.
 
 (xxi) Based on the audit procedures and according to the information
 and explanations given to us, no fraud on or by the Company has been
 noticed or reported during the year.
 
 
 L. K. Shrishrimal
 Membership No. 72664 
 Partner
 
 For MGB & Co.
 Chartered Accountants
 
 Place : Noida
 Date   : 18th June, 2009