BALARAM CEMENTS LIMITED
REPORT OF THE AUDITORS TO THE SHAREHOLDERS
We have audited the annexed Balance Sheet as at 315' March 1998 and Profit
& Loss A/C for the year ended 315' March 1998 of Balaram Cements Limited
and report that.
1. We have obtained all the informations and explanations which to the best
of our knowledge,were necessary for the purpose of our Audit.
2. 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 the
3. The Balance Sheet and profit and loss account dealt with by the report,
are in agreement with the Books of Account.
4. In our opinion and to the best of our informations and according to the
explanations given to us, the accounts read with the notes thereon, give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view, subject to Note No. 15 of Notes on
Accounts regarding Interest due to Institutions, in the case of the Balance
Sheet of the state of affairs of the Company as at 31S' March, 1998 and in
the case of profit Loss Account, of the Profit for the year ending on 315'
As required by the Manufacturing and other Companies (Audit Report) Order,
1975, issued by the Central Government under Section 227 (4-A) of the
Companies Act, 1956, we report on the matters specified in paragraph 4 of
the said order, as far as applicable to the Company that:
1. The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. The Fixed
Assets have been physically verified by the Management and no discrepancies
2. None of the Fixed Assets have been revalued during the year.
3. We have been informed that physical verification has been conducted by
the management at reasonable intervals in respect of finished goods, spare
parts, stores and raw materials.
4. On the basis of information and explanation given to us, it seems that,
the procedure of the physical verification of stocks followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. It is informed that no material decrepancies has been noticed on
physical verification of stocks as compared to Book records
6. Valuation of the said stock is fair and proper in accordance with the
normally accepted principles.
7. The Company has not taken any loans from Companies, firms, or other
parties to which Section 301 (I) (C) of the Companies Act 1956 apply.
8. The Company has not granted any secured or unsecured loans to the
Companies. firms or other parties listed in the Register maintained under
section 301 (I) (C) and or the Companies under the same management as
defined under section 370 (I) (B) of the Companies Act, 1956.
9. Interest free loans are given by the Company to its employees and they
are repaying principal amount regularly.
10 In our opinion and according to the information and explanation given to
us, there is an adequate internal control procedure commensurate with the
size of the company and nature of its business with regard to purchase of
stores, raw materials, including components plants, plant & machinery
equipments and other assets and for the sale of goods.
11. In our opinion and according to the information and Explanation given
to us, the company has not purchased any stores and other materials during
the year from firms or companies or other parties in which the Directors of
the company are interested (exceeding Rs 50,000/- in value or more) as per
provision of Section 301 of the Companies Act, 1956.
12. Unserviceable or damaged stores, raw materials or finished goods are
not noticed by the Management.
13. According to the information and explanation give to us, the Company
has accepted the deposit from public to which the provision of Section 58-A
of Companies Act 1956 apply the provisions of the said section is not
14. There is no by-product, hence maintenance of records for the the same
are not applicable.
15. The Company has an internal audit system, commensurate with its size
and nature of the business,
16. It is informed that cost records are required to be maintained by the
Company under section 209 (1 ) (d) of the Companies Act, 1956 and also cost
accounts and records are made and maintained
17. The Company has voluntary impemented P.F. Scheme and Statutory dues are
regularly paid to P. F. Authorities. ESI act is not applicable.
18. There are no undisputed liabilities in respect of income tax, Sales
tax, wealth tax, Custom duty and Subject to Note No. 11 In respect of
Income tax and Sales tax for which appeals are preferred with appropriate
19. On Verification of records and information and explanation given to us,
no personal expenses have been charged to revenue account.
20. On the basis of information and explanation given to us, the company is
covered by the provisions of Section 3 (1) (0) of Sick Industries Companies
(Special Provision) Act.
FOR AJAY R. MODY & CO.
PALCE : AHMEDABAD AJAY R. MODY
DATE : 02-09-1998 PROPRIETOR