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AKASH AGRO INDUSTRIES LIMITED
ANNUAL REPORT 2002-2003
AUDITORS' REPORT
TO
THE MEMBERS,
AKASH AGRO INDUSTRIES LIMITED
1. We have Audited the attached BALANCE SHEET OF AKASH AGRO INDUSTRIES
LIMITED AS AT 31/03/2003. AND THE PROFIT & LOSS ACCOUNT for the year ended
on that date and 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.
2. 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 by management as well as evaluating the overall
financial statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. 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 Am,1958, We annex hereto a statement on the matters specified
in paragraphs 4 & 5 of the said order to the extent applicable.
4. Further to our comments in the annexure referred to in paragraph (3)
above, We report that :-
(i) We have obtained all the information and explanation which to the best
of our knowledge and belief were necessary for the purpose of our Audit.
(ii) In our opinion proper books of accounts as required by law has been
kept by the Company so far as appears from examination of such books.
(iii) The BALANCE SHEET AND PROFIT & LOSS ACCOUNT Referred to in report are
in agreement with the books of accounts.
(iv) In our opinion the Profit and Loss Account and Balance Sheet Comply
with the Accounting Standards referred to in sub-section (3C) of Section
211 of the Companies Act, 1956 to the extent applicable Subject to remarks
in Notes Forming Part of Accounts.
(v) On the basis of the written representation from the directors, taken on
record by the Board of Directors, none of the directors is disqualified as
on March 31, 2003 from being appointed as a director under section
274(1)(g) of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to the
explanation given to us, the said statement of accounts read with notes on
account and Notes forming part of audit report give a TRUE AND FAIR VIEW:
(a) In the case of BALANCE SHEET, Of the STATE OF AFFAIRS of the Company as
at 31st March, 2003,
(b) In the case of PROFIT & LOSS ACCOUNT of the PROFIT for the year ended
on that date.
FOR ASHOK JETHANAND GIDWANI
CHARTERED ACCOUNTANTS
PLACE : AHMEDABAD (ASHOK J. GIDWANI)
DATE : 27/08/2003 (PROPRIETOR)
ANNEXURE TO THE AUDITORS REPORT
AKASH AGROI INDUSTRIES LIMITED
(REFERRED TO IN PARAGRAPH (1) OF OUR AUDIT REPORT OF EVEN DATE)
1. The company has maintained, but not updated, records showing ful
particulars including quantitative details and situation of fixed assets.
The fixed assets of Company have been physically verified by the management
during the year and in absence of updated record it is difficult to comment
whether there is any material discrepancies between book record and
physical inventory have been noticed.
2. Fixed assets have not been revalued during the year
3. The stock of finished goods, stores & raw material have been physically
verified during the year by management and in our opinion the frequency of
verification is reasonable.
4. In our opinion and according to the information and explanation given to
us the procedures of physical verification of stocks followed by the
management were found reasonable and adequate in relation a the size of the
company and nature of its business.
5. No material discrepancies have been noticed on physical verification of
stocks as compared to books record so far as it appears from our
examination of the books.
6. The valuation of stock is fair and proper in accordance with normally
accepted Accounting Principles.
7. The company has taken Secured Loan From The Jammu & Kashmir Bank Limited
for Working Capital. The rate of interest and the terms on which this loan
have been raised are not primafacie prejudicial to the interest of the
Company.
8. The Company has granted unsecured loans to Companies, firms or other
parties listed it the Register maintained under Section 301 of the
Companies Act, 1956, or to Companies under the same management within the
meaning of the Section 370(1B) of the companies Act, 1956 and the terms on
which these loans granted are not primafacie prejudicial to the interest of
the company.
9. In respect of loans and advances in the nature of loans given by the
Company to others, where stipulations have been made, they are generally
repaying the price amounts as stipulated and have also been regular in the
payment of interest where applicable.
10. That in our opinion and according to the information and explanation
given to us #w Company has an internal control procedure in general
commensurate with size of Company and nature of its business for purchase
of raw materials and other assets during the year.
11. According to the information and explanations given to us, the Company
has not purchased during the year any material exceeding Rs.50000/- in
value from subsidiaries firms or other parties in which Directors are
interested As listed in register maintained under section 301 of Companies
Act, 1956 hence question of unreasonbitity of prices does not arise.
12. According to the information and explanation given to us, no part of
stores raw material were determined as unserviceable or damaged during the
period under review.
13. The company has not accepted any deposits from public and consequently
the provisions of section 58A of the Companies Act, 1956 and The Companies
(Acceptance of Deposits) Rules, 1985 are not applicable.
14. The Company has no by product but production process generates oil
wastage which is a realisable material arid during the year company has
sold the same and included in other income. Value of Wastage is very low
hence no Quantitative record relating to by product or oil wastage to
maintained.
15. The Company does not have a formal internal Audit department, but
during the year company has appointed one Chartered Accountant Firm for
Internal Audit. Internal Auditor has submitted his report according to his
working scope and suggested measures to improve the working system.
16. The central Government has not prescribed the maintains of cost records
under section 209 (1) (d) of the Companies Act.
17. According to information given to us, Provident fund and employees
state insurance scheme is applicable to the Company and Competent person is
looking after the compliance of respective rules hence we have been relied
on their calculations and compliance of rules.
18. According to the information and explanations given to us there were no
undisputed amounts payable in respect of income tax Wealth-tax, safes-tax,
Custom Duty, Excise Duty which have remain outstanding as at 31st March,
2003 for a period of more than six months from the date they became
payable.
19. According to the information and explanations given to us and records
of company examined by us, no personal expenses have been charged to
revenue account other than those payable under contractual. obligation; or
in accordance with generally accepted business practices.
20. The company is not a sick industrial Company within the meaning of
clause (O) of sub section (1) of section 3 of sick industrial Companies (
Special Provision) Act, 1985.
FOR ASHOK JETHANAND GIDWANI
CHARTERED ACCOUNTANTS
PLACE : AHMEDABAD (ASHOK J. GIDWANI)
DATE : 27/08/2003 (PROPRIETOR)
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