| We have audited the attached Balance Sheet of Database Finance Ltd. as
at 31st July, 2003 and also the Profit and Loss Account for the year
ended on that date annexed thereto and the cash flow statement for the
period 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 audit.
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 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.
1. As required by the Manufacturing and other Companies (Auditors
Report) order, 1988 issued by the Company Law Board in terms of section
227(4A) of the companies Act 1956, we annex hereto a statement on the
matters specified in paragraph 4 & 5 of the said order to the extent
applicable to the company.
2. Further to our comments in the Annexure, referred to in paragraph
(1) 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 accounts, as required by law have
been kept by the company, so far as, it appears from our examination of
these books.
c) The balance sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion, the Profit & Loss Account and the Balance Sheet
complied with mandatory accounting standard referred in sub section
3(C) of section 211 of the Companies Act, 1956.
e) We are unable to comment as we have not received written
representation, from the Directors of the company, as on 31st July,
2003, regarding disqualification as a directors of the company under
clause (g) of sub section (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, give the information
required by the companies Act, 1956, in the manner, so required and
give a true & fair view:
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st July, 2003 please refer item No. 2 of notes on
accounts and
(ii) In the case of the Profit & Loss Account of the "Profit" of the
Company for the Year ended on that date.
(iii) In the case of cash flow statement of the cash flows for the year
ended on that date.
FOR M. A. DARJI & CO.
Chartered Accountants
Place : Mumbai MAHESH DARJI
Date : 3rd September 2003 (Proprietor)
(Referred to in paragraph 1 of our Report of even date)
In terms of the informations and explanations given to us and the books
& records examined by us in the normal course of audit and to the best
of our Knowledge and belief, we state that :
1. The Company has maintained proper record full particulars including
quantitative details and situation of fixed assets. All such assets
have been physically verified by the management at regular intervals,
during the Year and no material discrepancies have been noticed on such
verification. In our opinion, the frequency of such verification is
reasonable and adequate in relation to the size of the company and the
nature of its business.
2. None of the fixed assets have been revalued during the Year.
3. The Company has not taken any loans from the Companies listed in the
register maintained under Section 301 of the Companies Act, 1956 and/or
from Companies under the same management as defined under Section
370(1B) of Companies Act, 1956. Where the rates of interest other terms
and condition of such loans are prima facie prejudicial to the interest
of the Company.
4. The Company has not given any loans and advances, in the nature of
loans to Companies/parties listed in the register maintained under
Section 301 of Companies Act, 1956 and/or of Companies under the same
management, as defined under Section 370(1B) of Companies Act, 1956.
Where the rate of interest and other terms and conditions of such loans
are prima facie prejudical to the interest of the Company.
5. In our opinion and according to the information and explanations
given to us, it appears that the company has internal control
procedures commensurate with the size of the company and nature of it's
business with regard to purchase of assets.
6. The Company has not entered into any transactions of Purchases and
sales of stores, raw materials including components in excess of Rs.
50,000/- in value from firms, subsidiaries or companies or other
parties in which directors are interested as listed in the register
maintained under Section 301 of the companies Act. 1956, which are not
prima facie made at prices which were reasonable having regard to
prevailing market prices.
7. The Company has no formal internal audit system, but in our opinion
there existed . reasonable control commensurate with the size and the
nature of the activities of the company.
8. We are informed that the Provident Fund Act are not yet applicable
to the company.
9. According to the information and explanations given to us, there are
no undisputed amount payable in respect of Income Tax, Wealth Tax,
Sales Tax, Custom Duty and Excise Duty which were outstanding as at the
balance sheet date, for a period of more than six months from the date
they become payable.
10. According to the information and explanations given to us, no
personal expenses have been charged to revenue account other than those
payable under contractual obligations or in accordance with the
generally accepted business practices.
11. The Company is not a sick Industrial Company within the meaning of
clause (O) of sub-section (1) of section 3 of the Sick Companies
(Special Provisions) Act, 1985.
12. The Company has not granted any loans and advances on the basis of
securities by way of pledge of Shares, debentures and other securities.
13. The Provisions of any special statue applicable to Chit Fund, Nidhi
or mutual benefit society do not apply to the company.
14. The Company has maintained proper records of transactions and
contracts in shares, securities and other investments and timely
entries have been made therein.
15. Since comments on the facts of other clauses of the said order not
called for, same herewith not given.
FOR M. A. DARJI & CO.
Chartered Accountants
Place : Mumbai MAHESH DARJI
Date : 3rd September 2003 (Proprietor) |