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ACQUAINT EXPORTS LIMITED
ANNUAL REPORT 2000-2001
AUDITOR'S REPORT
To
The Members
Acquaint Exports Limited
We have audited the attached Balance Sheet of Acquaint Exports Limited as
at 31st March,2001 and the Profit & Loss Account of the Company for the
period ended 31st March,2001 annexed hereto and report that:
1. As required by the Manufacturing and other Companies (Auditors' Report)
Order, 1988 issued by the Central Government in terms of Section 227 (4A)
of the Companies Act,1956, we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to 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 account as required by law have been
kept by the Company so far as it appears from our examination of the books.
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 and to the best of our information and according to the
explanations given to us,the said accounts read with notes thereon and
accounting policies, give the information required by the Companies Act,
1956, in the manner so required and give a true and fair view:
i) In so far as it relates to the Balance Sheet, the state of affairs of
the Company as at 31st March, 2001; and
ii) In so far as it relates to Profit and Loss Account, the profit for the
year ended on that date.
e) In our opinion and based on the information and explanation given to us
none of the directors are disqualified as on 31-03-2001 from being
appointed as Director in terms of section 274(1)(g) of the Companies Act
1956.
For Chowdary & Rao
Chartered Accountants
Place: Visakhapatnam (K. Venkata Rao)
Date : 10.08.2001 Partner
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 of our report of even date)
1. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As per the
information and explanations given to us, the company has physically
verified its assets during the year. No material discrepancies were noticed
on such physical verification.
2. The fixed assets of the Company have not been revalued during the year.
3. The management has physically verified the stores and spares during the
year. In our opinion the frequency of verification is reasonable.
4. In our opinion and according to the information and explanations given
to us the clause regarding the procedures of physical verification of
stocks which are required to be followed by the Management were not
applicable to this company.
5. The Company has not taken any loans which are secured or unsecured from
the Companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956. We are informed that there
are no companies under the same Management within the meaning of Sub-
Section (1-B) of Section 370 of the Companies Act, 1956 during the year.
6. The Company has riot given any loans to the Companies, Firms or other
parties listed in the Register maintained under Section 301 of the
Companies Act, 1956. We are informed that there are no companies under the
same Management within the meaning of Sub-Section (1-B) of Section 370 of
the Companies Act, 1956.
7. In our opinion and according to information and explanation given to us,
there are adequate internal control procedures commensurate with the size
of the company and the nature of its business with regard to the purchase
of stores including components, plant and machinery, equipment and other
as-sets and for the carrying of processing activities.
8. In our opinion and according to the information and explanations given
to us, the transactions relating to the carrying of processing activities
made in pursuance of contracts or arrangement failing under Section 301 of
the Companies Act, 1956 and aggregation during the year to Rs.50,000/- or
more in respect of each part, have been made at prices which were
reasonable having regard to the prevailing market price for such services
or the prices at which transactions for such services have been made with
other parties. As explained to us, the Company had service activity during
the year in the form of allowing the companies to carry out the processing
activities in relation to the marine shriny.
9. According to the information and explanations given to us, the Company
has a regular procedure for the determination of unserviceable or damaged
stores. As explained to us by the Company management stock of packing
materials at the beginning of the year were completely damaged.
10. As explained, the Company has not accepted deposits from the public.
11. The Company has no internal audit system.
12. The Central Government has not prescribed maintenance of cost records
under Section 209 (i)(d) of the Companies Act,1 956 for the products of the
Company.
13. According to information and explanations given to us provisions of
Provident Fund Act are applicable to the Company from the last year and the
reqUired amounts have been deducted and remitted to the concerned
authorities.
14. According to the information and explanations given to us, there were
no statutory dues payable by the company as on the date of Balance Sheet.
15. During the course of our examination of books of account carried out in
accordance with the generally accepted auditing practices, we have not come
accross any personal expenses other than the expenses under contractual
obligations and/or generally accepted business practices, which have been
charged to revenue.
16. The Company is not a sick industrial company within the meaning of
clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
For Chowdary & Rao
Chartered Accountants
Place: Visakhapatnam (K. Venkata Rao)
Date : 10.08.2001 Partner
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