We have audited the accompanying financial statements of RADAAN MEDIA
WORKS INDIA LIMITED (the Company), which comprise the Balance sheet
as at 31st March 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards referred to in subsection (3C) of section 211
of the Companies Act, 1956 read with the General Circular 15/2013 dated
13 September 2013 of the Ministry of Corporate Affairs in respect of
Section133 of the Companies Act, 2013. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatements of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the entity''s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) in the case of the Statement of Profit and Loss, of the PROFIT for
the year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Companies Act,1956 we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the Order.
2. As required by section 227(3) of the Companies Act, 1956 we report
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 account as required by law have been
kept by the Company so far as appears from our examination of those
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of Ministry of
Corporate Affairs in respect of Section133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of subsection (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditor''s Report
Annexure referred to in paragraph 1 of the report of even date of the
Auditors to the members of RADAAN MEDIA WORKS INDIA LIMITED on the
accounts for the year ended 31st March 2014.
1. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
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. The fixed assets disposed of during the year do not constitute a
substantial part of the fixed assets of the Company and such disposal,
in our opinion has not affected the going concern status of the
2. In respect of its inventories:
a. The inventories have been physically verified during the year by the
management. In our opinion the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the physical verification of inventories followed by the
management are 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. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
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,
4. In our opinion, and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with
regards to purchase of fixed assets and income from operations.
5. In respect of contracts or arrangements referred to in section 301
of Companies Act, 1956
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
b. in our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5 lakhs in
respect of each party during the year have been made at prices which
appear reasonable having regard to the prevailing market prices at the
relevant time, as per information available with the Company.
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 Act and
the rules framed there under does not arise.
7. In our opinion, the company has an adequate internal audit
commensurate with its size and nature of its business.
8. Maintenance of cost records under 209(1)(d) of the Companies
Act,1956 is not applicable to the company.
9. In respect of statutory dues:
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 are as follows.
Nature of Dues Amount Period to which Forum where
Rs. the amount relates dispute is
(Fin. year) pending
Service tax 19,30,27,340 Oct 2004 - Sep 2007 CESTAT, Chennai
4,68,55,299 Oct 2007 - Sep 2010 -do-
3,60,84,169 Oct 2010 - Sep 2012 -do-
Sales tax 48,40,18,098 April 2001 to March Rs.2,28,60,665
2006 before Appellate
- in- terim stay
granted by Hon''ble
High Court of Madras.
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 and
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. According to the information and explanation given to us, the
company has not granted any loans & advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion and to the best of our information and according to
the explanations provided by the management, the Company is not a Chit
Fund or a Nidhi / Mutual Benefit Fund / Society. Therefore the
provisions of Clause 4(xiii) of the Companies (Auditor''s Report) Order
2003 (as amended) do not apply to the Company.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of Companies (Auditor''s
Report) Order, 2003 is not applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, no term
loans have been obtained during the year.
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 (Auditor''s 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. The Company has not raised any money by way of public issue during
the period. Hence, in our opinion Clause 4(xx) of the Companies
(Auditor''s Report) Order 2003 (as amended) is not applicable to the
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 Partner
Date : 30th May 2014 Memb.No.11205