1 The Company has maintained proper records to show full particulars including quantitative details and situation of fixed assets. All the fixed assets have been physically verified by the management once during the year, which is in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancy was noticed on verification.

2 The Company is principally engaged in production, distribution and exhibition of motion pictures. As such, the Company does not carry any finished goods, raw materials and spare parts and hence, the question of physical verification of the same does not arise. Inventories in the books represent picture rights and internet film rights.

3 The Company has neither taken nor granted any loans, secured or unsecured from 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 explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with the regard to the purchases of inventory and fixed assets and with regard to the sale of film rights.

5 According to the information and explanations given to us, the Company has entered into a transaction with a company which is entered in the register maintained under Section 301 of the Companies Act, 1956. The transaction is prima-facie not prejudicial to the interests of the company.

6 The Company has not accepted any deposits from public.

7 The company has an internal audit system, commensurate with its size and nature of its business.

8 The Provision of Section 209(1)(d) of the Companies Act, 1956 regarding maintenance of Cost Records is not applicable to the company.

9 According to the records of the company, Provident Fund and Employees State Insurance dues have been generally been regularly deposited with the appropriate authorities. Amount involved in appeal in respect of Sales Tax _ Rs.11.86 lacs (before Appellate Assistant Commissioner)