We have audited the attached balance sheet of RADAAN MEDIAWORKS INDIA
LIMITED as at 31st March 2011 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 company''s 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 included
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement. An audit also included
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 paragraph 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 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 accounts 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 standard 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 2011 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 explanation 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 2011,
ii. In the case of Profit and Loss account, of the PROFIT for the year
ended on that date and
iii. In the case of Cash Flow statement, of cash flows for the year
ended on that date
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 INDIA LIMITED on the
accounts for the year ended 31st March 2011.
1. (a) The company is maintaining proper records, showing full
particulars including quantitative details and situation of fixed
(b) The company has done a physical verification of its fixed assets
during the year. Material discrepancies between the book balance and
physical verification have been properly dealt with in the books of
(c) No substantial part of the fixed assets has been disposed off
during the year and the going concern status of the company is not
2. (a) Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
(b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. The
discrepancies noticed on verification between the physical stock and
the book records were not material.
3. The company has neither taken nor given loans, during the year
secured or unsecured from/to companies, firms or other parties listed
in the Register maintained under Section 301 of the Companies Act 1956.
4. In our opinion, and according to the information and explanation
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 explanation
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register to be maintained under that Section.
(b) In our opinion, and according to the information and explanation
given to us, the transaction 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 provision of
section 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 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. There are no undisputed taxes
outstanding beyond 6 months.
(b) Unpaid disputed taxes is as follows.
Nature of Dues Amount Period to which
the amount relates Forum where dispute
Rs. (Financial years)
Service tax 19.30 crores 2004-2007 CESTAT, Chennai
10. The accumulated losses of the company are not more than 50% of net
worth. The company has not incurred cash losses in the current year but
has incurred cash loss 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
(Auditor''s 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. In our opinion and according to the information and explanations
given to us, term loans have been applied for the purposes for which
they were obtained.
17. According to the information and explanation given to us by the
management, the funds raised on short-term basis have not been used for
18. During the year the company has not made any preferential
allotment of shares to the parties and companies covered in the
Register maintained under section 301 of the Companies Act 1956.
Accordingly, clause 4(xviii) of Companies (Auditors'' Report) Order,
2003 is not applicable.
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 given 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 C.N.Gangadaran
Date: 30.05.2011 Partner