DATABASE FINANCE LIMITED
ANNUAL REPORT 2003-2004
The Members of,
Database Finance Ltd.
We have audited the attached Balance Sheet of M/s. Database Finance Ltd. as
at 31st July, 2004 and the Profit and Loss Account for the year ended on
that date annexed thereto. 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.
1. 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 the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of subsection (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure hereto a statement
on the matters specified in paragraphs 4 and 5 of the said order.
3. Further to our comments in the Annexure, referred to in paragraph (2)
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
c) The balance sheet and Profit & .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 & Loss Account and Cash Flow
Statement dealt with by this report comply with the mandatory Accounting
Standard referred in sub section (3C) of section 211 of the Companies Act,
e) We are unable to comment as we have not received written representation,
from the Directors of the company, as on 31st July, 2004, regarding
disqualification as a directors of the company in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act. 1956.
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
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so required,
and present a true and fair view, in conformity with the accounting
principles generally accepted in India
(i) In the case of the Balance Sheet, of the "State of Affairs" of the
Company as at 31st July, 2004 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.
Place : Mumbai
Date : 23rd September 2004
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 bases
of available information.
b. As explained to us, the fixed assets have been physically verified by
the management during the year in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and nature
of its assets. No material discrepancies were noticed on such physical
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the Company is
2. In respect of its inventories :
a. As explained to us, inventories have been physically verified by the
management at regular intervals during the year.
b. In our opinion and according to the information and explanation and
explanations given to us, the procedures of 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 inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
a. The Company has not granted loans and has not taken loans from the
parties covered in the register maintained u/s. 301 of the Companies Act,
b. In our opinion and according applicable and other terms and conditions
are not prima facie prejudicial to the interest of the Company.
c. In respect of loans granted by the Company to one party, the amount has
been repaid of loans granted by the Company to one party, the amount has
been repaid during the year. In respect of the other party, a wholly owned
subsidiary of the Company, the loan is interest free and is repayable on
demand. In respect of loans taken by the Company,, the interest payments
are regular and the principal amount is repayable on demand.
d. There is no overdue amount in respect of loans taken by the Company. In
respect of loans given by the Company, these are repayable on demand and
therefore the question of overdue amounts does not arise.
4. In our opinion and 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 for the purchase of
inventory, fixed assets and also for the sale of goods. During the course
of our audit, we have not observed any major weaknesses in internal
5. In respect of transactions covered under Section 301 of the Companies
a. In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements,
that needed to be entered into 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, there are no transactions in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies Act
1956 aggregating during the year to Rs. 500000/- or more in respect of any
6. The Company has not accepted any deposits from the public.
7. In our opinion, the internal audit system of the Company is commensurate
with its size and nature of its business.
8. The Central Government has prescribed maintenance of Cost Records under
Section 209 (1) (d) of the Companies Act, 1956 in respect of certain
manufacturing activities of the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have been
made maintained. We have not, however, made a detailed examination of the
9. In respect of statutory dues
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-Tax, Sales tax, Wealth Tax, Customs
Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable in
respect of the aforesaid dues were outstanding as at 31st July 2004 for a
period of more than six months from the date of becoming payable.
b. There are no undisputed statutory dues except Income tax liability for
A. Y. 2001-02, Rs. 13310 for which matter is pending with the C.I.T
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. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
12. In our opinion and according to the information and explanation given
to us, no loans and advances have been granted by the Company on the basis
of security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Thereof, clause-4 (xiii) of the Companies (Auditor's
Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transactions and contracts
in respect of trading in securities, debentures and other investments and
timely entries have been made therein. All shares, debentures and other
investments have been held by the Company in its own name.
15. The Company has given guarantees for loans taken by other from banks or
financial institutions. According to the information and explanations given
to us, we are of the opinion that the terms and conditions thereof are not
prima-facie prejudicial to the interests of the Company.
16. The Company has not raised any new term loans during the year. The term
loans outstanding at the beginning of the year were applied for the
purposes for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilized any amount from short term
sources towards repayment of long-term borrowings and acquisition of fixed
18. During the year, the Company has not made any preferential allotment of
shares to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19. The Company has not issued debentures and hence the question of
securities does not arise.
20. The Company has not raised any money by way of public issue during the
21. In our opinion and according to the information and explanations given
to us, no fraud on or by the Company has been noticed or reported during
the year, that causes the financial statements to be materially misstaked.
FOR M. A. DARJI & CO.
Place : Mumbai
Date : 23rd September