1. We have audited the attached Balance Sheet of SPLASH MEDIA WORKS
LTD. as at 31sMarch, 2009 and also the Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date
annexed there to 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 auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonale assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidences 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
3. As required by the Companies (Auditors Report) Order, 2003; issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act,1956, -we give in an Annexure attached
hereto a statement on matters specified in the said Order.
4. Further to our comments in the Annexure referred to above, we report
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
b) In our opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears form our examinations of
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 sub-section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable.
e) On the basis of the written representations received form the
Directors and taken on record the Board
of Directors, we report that none of the directors is disqualified as
on 31s March, 2009 form being appointed as a Director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies 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 the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31 st March, 2009
ii) In the case of the Profit and Loss account, of the profit of the
Company for the year ended on that date, and
iii) In the case of Cash Flow Statement of the Casti Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors Report th the
Members of SPLASH MEDfA WORKS LTD. for the year ended 31st March,
(i) (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of fixed
(b) As per Companys policy, verification of fixed assets is being
conducted in a phased programme by the management designed to cover all
assets over a period of one year, which in our opinion is reasonable
having regard to the size of the Company and the nature of assets. The
verification of assets as per this programme has been carried out. The
discrepancies noticed on such verification were not material and have
been properly dealt with in the books of account.
(c) As the Company has not disposed off any Fixed Assets during the
year, paragraph 4(i)(c) of the Companies (Auditors Report) Order, 2003
(hereinafter referred to as the Order) is not applicable.
(d) There was no inventories during the year so the question of
physically verification of inventories, the procedures of physical
verification of inventories followed by the management and maintenance
of proper records of inventories does not arise.
(iii) (a) According to the information and explanations given to us,
the Company has not taken loan form companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956 during the year. The Company had also not given any loan to
any party covered in the register maintained under section 301 of the
Companies Act, 1956.
(b) As the company has not taken or given any loans form/to parties
covered in the register maintained under section 30f of the Companies
Act, 1956, the timely repayment of loans, the compliance with terms and
conditions regarding repayment of loan and overdue amount etc. does not
(iv) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchases of
inventories, fixed assets, and with regard to the sale of goods, if
(v) According to the information and explanations given to us, there
were no transactions with related parties, therefore the question of
entering the same into the register maintained in pursuance of section
301 of the Companies Act, 1956 and comparison of prices of the
transactions with the transactions entered into with other parties does
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any Deposits from Public in
contravention of provision of section 58Aand 58AAof the Companies Act,
1956 and the Companies (Acceptance of deposits) Rules, 1975. We are
informed, thatno order has been passed by the National Company Law
(vii) The Company has an in house internal audit system, Which in our
opinion, is reasonable considering size and nature of it business.
(viii) As informed to us, the Central Government has not prescribed the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 in respect of the activities of the Company and therefore
such accounts and records have not been made and maintained by the
(X) (a) According to the records of the company and information and
explanations given to us and as certified by Directors, the Company has
been generally regular in depositing the undisputed statutory tax and
duties with the appropriate authorities. There are no undisputed
statutory dues as referred to above as at 31st March, 2009 which are
outstanding for a period of more than six months from the date they
(b) According to the records of the company and information and
explanations given to us, there are no dues in respect of income tax,
wealth tax, excise duty, customs duty and cess, which have not been
deposited on accountof any dispute.
The Company has neither accumulated losses as at March 31,2009 nor has
it incurred any cash losses* during the financial year ended on that
date or in the immediately preceding financial year
(xi) As no loan has been taken by the company form any banks, financial
institutions or Debenture holders, the question of repayment of dues to
banks, financial institutions or Debenture holders does not arise.
(xii) As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments so clause (xiv) of the said order is
applicable to the company.
(xv) The Company has not given any guarantee in respect of loans taken
by others from banks of financial institutions.
(xvi) The Company has not taken any Term Loan during the year.
(xvii) No funds have been raised by the Company for Short Term or Long
(xvi/j) As the Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year, paragraph 4(xviii) of the Order is not
(xx) As the Company has not issued any debentures during the year,
paragraph 4(xix) of the Order is not applicable.
(xx) Since the Company has not raised money by way of public issue
during the year, paragraph 4(xx) of the Order is not applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
during the year.
FOR ABN & CO.
(Seizes. C. KABRA)
DATE : 30th June, 2009