BESTAVISION ELECTRONICS LIMITED
ANNUAL REPORT, 1999 - 2000
The shareholders of Bestavision Electronics Limited.
We have audited the attached Balance Sheet of Bestavision Electronics
Limited as at 31st March, 2000 and the Profit & Loss Account for the year
ended on that date annexed thereto and report that:-
1. 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 Act,1956 and on the basis of such checks as We considered
appropriate and according to the information and explanations given to us
during the course of our audit, we enclose in the Annexure a statement on
the matters specified in paragraph 4 and 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph
1.above, we report that:-
a) We have obtained all the informations and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper book of accounts as required by the law have been
kept by the company so far as it appears from our examination of such
c) The Balance sheet and Profit & Loss account referred to in this report
are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Profit and Loss account comply
with Accounting Standards referred to in section 211(3C) of the Companies
Act, 1956, to the extent applicable except unless otherwise disclosed in
the notes to accounts in Schedule T.
e) In our opinion and to the best of our information and according to
explanations given to us, the said accounts read together with the
Significant Accounting Policies and Notes to Accounts (Schedule No.T) and
subject to :-
Note No. 2 & 3 regarding non-confirmation / reconciliation of certain Loans
from Banks, Financial Institutions & others and sundry debtors, loans and
advances and sundry creditors etc. and impact of the consequential
Note No 4 (a) regarding provision for doubtful debts the adequacy of which
has been assessed by the Management and we are unable to express our
opinion on the adequacy of the provisions made for doubtful debts.
Note No.6 regarding change in the accounting policy for valuation of goods
for re-sale, Work-in-progress and goods-in-transit.
Note No.7 regarding of non-provisions of penal interest charges, amount not
Note No.8 regarding the accounts of the company have been prepared on a
going concern basis inspite of erosion of the net worth of the company.
Note No 12 regarding transaction of Rs.995 lacs shown as advance to M/s.
Zircon Electronics & Electricals Pvt. Ltd. for which we have no opinion to
express as the matter is subjudice.
Note No 15 regarding non provision of interest of on certain loans of
Rs.17.38 lacs for the year (cumulative Rs.47.80 lacs).
Note No.24 regarding non-compliance of section 293 of the Companies Act,-
1956 and other notes thereon in Schedule T give the information required by
The Companies Act ,1956 in the manner so required, and give a true and fair
In the case of Balance-sheet, of the state of affairs of the Company as at
31st March 2000. and
In the case of the Profit and Loss Account, of the Loss of the company for
the year ended on that date.
for BHATIA BEHL & ASSOCIATES
Date: 22nd May, 2000
Place: New Delhi
ANNEXURE TO AUDITORS' REPORT
(Referred to in paragraph (1) of our report of even date)
1. Proper record showing particulars of fixed assets are still under
compilation. According to the informations and explanations given to us
physical verification of the fixed assets has been carried out as per the
phased programme of verification of fixed assets adopted by the company. In
our opinion the frequency of verification is reasonable having regard to
the size of the company & nature of its business. As explained to us, no
material discrepancies have been noticed on such verification.
2. None of the fixed Assets have been revalued during the year.
3. The stock of finished goods, raw materials, components, stores & spare
parts other than lying in the units at NOIDA have been physically verified
regularly during the year by the management except material in transit . In
our opinion the frequency of verification is reasonable. Physical
verification of the stock of the units at NOIDA could not be made due to
in acessability of the factory premises as the same are sealed by the NOIDA
TRADE TAX AUTHORITY, as explained in Note No.11 of Schedule T .
4. The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
5. The discrepancies noticed on physical verification of stocks as compared
to book records were not material and the same have been properly dealt
with in the books of accounts .
6. On the basis of our examination of stock records, we are of the opinion
that the valuation of stocks is fair and proper in accordance with normally
accepted accounting principles and is on the same basis as in preceding
year, except in the case of goods for re-sale, Work-in-progress and goods-
in-transit which have been valued at the lower of cost or realisable value
as against the cost price in earlier years.(Refer Note No. 6 of Schedule
7. In our opinion, the rate of interest and terms & conditions on which
loans have been obtained from Companies, firms and other parties listed in
the register maintained under section 301 and /or from the Companies under
the s~me management as defined in section 370 (1 -B) of Companies Act, 1956
are prima-facie not prejudicial to the interest of the Company.
8. In our opinion the rate of interest and terms and conditions on which
loans have been granted to companies, firms and other parties listed in
register maintained under section 301 of the Companies Act 1956 and / or to
the Companies under the same management are not prejudicial to the interest
of the Company
9. The loans a nd advances in the nature of loans have been given to the
employees and other parties. Who at times had not returned the amount as
stipulated specifically in case of employees who had left the services of
the company. No interest has been charged and provided on such loans.
10. In our opinion and according to the informations and explanations given
to us and subject to reconciliation of creditors and debtors balances and
other current assets and liabilities, there,there are generally adequate
internal control procedures commensurate with the size of the company and
the nature of its business for the purchase of stores, raw materials
including components, plant & machinery, equipment and other assets and for
the sale of goods.
11. In our opinion and according to information and explanation given to
us, the transactions of purchase of goods and materials and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies Act
1956 as aggregating during the year to Rs. 50,000/- or more in respect of
each party have been made at price which are reasonable having regard to
prevailing market price of such goods, materials or services or the prices
at which transactions for similar goods, materials or services have been
made with other parties.
12. As explained to us, the company has a regular procedure for the
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provision for loss has been made in the books of
accounts on items so determined.
13. The company has complied with directives issued by Reserve Bank of
India and provisions of Section 58-A of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rule, 1975 with regard to deposits
accepted from the public.
14 In our opinion reasonable records have been maintained by the company
for the sale and disposal of realisable scrap, where significant. There are
no By products.
15. During the year, the Company does not have internal audit system
commensurate with the size of the company and the nature of the business.
16. We are informed that the maintenance of cost records has not been
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act,1956, in respect of the company's products.
17. The company is not regular in Depositing the Provident Fund and
Employees State Insurance dues with the appropriate authorities.
18. According to information and explanations given to us no undisputed
amount is payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom
Duty and Excise Duty was outstanding as on 31st March 2000, for a period of
more than six months from the date they become payable except Sales Tax
amounting to Rs.47,20,397/- and TDS amounting to Rs.11,689/-
19. According to information and explanations given to us, no personal
expenses of employees or directors have been charged to revenue account,
other than those payable under contractual obligations or in accordance
with generally accepted business practice.
20. The company has become 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.
21. As explained to us by the management, there were no damaged goods which
are traded in by the company.
for BHATIA BEHL & ASSOCIATES
Date : 22nd May, 2000 (ASHOK BHATIA)
Place : New Delhi Partner