We have audited the attached Balance Sheet of RADAAN MEDIAWORKS (I)
Limited as at 31st MARCH 2006 and also the Profit and Loss Account of
the Company for the year ended on that date. These financial statements
are the responsibility of the Companys management Our responsibility
is to express an opinion on these financial statements based on our
We conducted our audit in accordance with auditing standards generally
accepted in India. These 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
As required by the Companies (Auditors Report) Order, 2003 issued by
the Department of Company Affairs, in terms of sub-section 4(A) of
section 227 of the Companies Act, 1956 we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order to the extent applicable to the company.
Further to our comments in the Annexure referred to above, we report
a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
b) In our opinion, proper books of account as required by the law have
been kept by the Company, so far as appears from our examination of
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
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 2006 from being
appointed as a director in terms of Clause (g) of Subsection (1) of
Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the 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 Balance Sheet, of the state of affairs of the Company
as at 31st March 2006.
ii) In the case of Profit and Loss Account, of the Profit for the year
ended on that date, and in) In the case of cash flow statement, of the
cash flows for the year ended on that date.
For CNGSN & ASSOCIATES
Place: Chennai Partner
Date : 31.07.2006 Memb. No. 11205
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the report of even date of the
Auditors to the members of RADAAN MEDIAWORKS (I) LIMITED on the
accounts for the year ended 31st March 2006.
1) (a) The Company is maintaining proper records, showing full
particulars including quantitative details and situation of fixed
(b) All the assets have not been physically verified by the management
during the year but, according to the information and explanations
given to us, there is a regular program of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
(c) No substantial part of the fixed assets have been disposed off
during the year and the going concern status of the company is not
2) In our opinion, clause 4 (ii) is not applicable to the company since
its nature of business is not as such.
3) The Company has neither taken nor given loans, during the year
secured or unsecured from/to companies, firm or other parties listed
in the Register maintained under Section 301 of the Companies Act,
4) In our opinion, and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business with
regards to purchase of fixed assets and for the sale of teleserial/game
shows and feature film.
5) In respect of transactions covered under section 301 of the
Companies Act, 1956
(a) In our opinion, and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register to be
maintained under that Section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangement have been made at prices which are reasonable having regard
to prevailing market prices at the relevant time.
6) The Company has not accepted any Fixed Deposits from the public
during the year and therefore, the question of compliance with the
directives issued by the Reserve Bank of India and the provisions of
section 58A and 58AA or any other relevant provisions of the Act and
the rules framed there under does not arise.
7) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8) Maintenance of cost records under section 209(1) (d) of the
Companies Act, 1956 is not applicable to the company.
9) (a) According to the records of the company, undisputed statutory
dues including Provident fund, employees state insurance fund,
income-tax, wealth tax, service tax, sales tax, customs duty, excise
duty and other statutory dues have been deposited regularly during the
year with the appropriate authorities.
(b) The disputed statutory dues aggregating to Rs.2,86,256/- that have
not been deposited on account of matters pending before the appropriate
authorities are as under:
S. No. Name of the statute Forum where dispute Amount
1. Income Tax Act, 1961 Dy. Commissioner of
Income tax Media Circle II, Rs. 2,86,256
Chennai A.Y: 2001-2002
10. The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11. On the basis of examination of books of accounts carried out by us
and according to information and explanations given to us, the company
has not defaulted in repayment of dues to banks during the year.
12. No loans or advances have been granted by the company against
pledge of securities.
13. In our opinion the company is not a chit fund or a nidhi, mutual
benefit fund/society. Therefore clause 4(xiii) of the companies
(auditors report) order, 2003 is not applicable to the company.
14. Clause 4(xiv) of companies (auditors report) order 2003 is not
applicable to the company as it is not dealing or trading in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given any corporate guarantee during the year.
16. During the year, the company has applied term loans for which the
loans were obtained.
17. According to the information and explanations give to us by the
management, the funds raised on short term basis have not been used for
long term investment
18. During the year the company has not made any preferential allotment
to parties and companies covered in the register maintained under
section 301 of the companies act, 1956.
19. The company has not issued any debentures during the year and
therefore the question of creation of securities does not arise.
20. During the year, the company has not raised any money by way of
public issue and the question of disclosing the end use of money by the
management does not arise.
21. According to the information and explanations give to us, no fraud
on/by the company was noticed/reported during the year that causes
the financial statements to be materially misstated.
For CNGSN & ASSOCIATES
Place: Chennai Partner
Date : 31.07.2006 Memb. No. 11205