ANNUAL REPORT 1998-99
BETA NAPHTHOL LIMITED AUDITORS REPORT
M/s Beta Naphthol Limited.,
We have audited the attached Balance Sheet of M/s. Beta Naphthol Ltd., as
on 31st March, 1999 and the Profit and Loss Account for the period ended on
that date annexed thereto and report that:
1. As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 issued by the Company Law Board in terms of section 227 (4A) of
the Companies Act, 1956 we give in the Annexure hereto 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 in paragraph (I)
above, we state that:
a) We have obtained all the informations and explanations which to the best
of our knowledge & the belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account, as required by law have been
kept by the Company, so far as appears from our examination of such books.
c) The Balance Sheet and Profit and Loss Account referred to this report
are in agreement with the books of account.
d) In our opinion the Balance-sheet and Profit & Loss account comply with
the Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
e) In our opinion, and to the best of our information and according to the
explanations given to us, the said accounts read together with the other
notes thereon give the information required by the Companies Act 1956 in
the manner so required and give a true and fair view:
i) In the case of the Balance Sheet of the state of affairs of the company
as at 31st March, 1999, and,
ii)In the case of the Profit and Loss Account of the loss of the Company
for the period ended on that date.
For NARENDRA MANGWANI & CO.
PLACE: INDORE NARENDERA KUMAR
DATED: 9th August,1999 Proprietor
1. ANNEXURE TO AUDITORS REPORT REFERRED TO IN PARAGRAPH 1 OF OUR REPORT Of
i) The Company has maintained proper records to show full particulars
including quantitative details and situation of its fixed Assets. The fixed
Assets have been physically verified by the management during the year. We
are informed that no material discrepancies were noticed on physical
verification as compared to the records maintained by the Company.
ii) None of the Fixed Assets have been revalued during the year.
iii)The stock of finished goods, stores, spare parts and raw materials have
been physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
iv) 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.
v) The discrepancies noticed on verification between the physical stocks
and book records were not material and have been properly dealt with in the
books of account.
vi) 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 the
vii) The Company has not accepted any loans, secured or unsecured from
companies, firms or other parties listed in the register maintained under
section 301.The company has not taken loans unsecured from the Companies
under the same management as defined under Section 370 (IB) of the
Companies Act, 1956.
viii) In our opinion, the terms and conditions on which loans/advances have
been granted to the companies. firms or other parties listed in register
maintained under section 301 of the Companies Act, 1956 and to the
companies under the same management as defined under Section 370 (IB) of
the Companies Act, 1956 are not prima facie prejudicial to the interest of
ix) Company has not given interest free advances in the nature of loans to
any party other than employees of the company wherever stipulations are
made the principal amounts are being re-paid as scheduled.
x) In our opinion and according to the 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 purchase
of stores, raw materials including component. plant & machinery, equipment
and other assets and with regard to the sale of goods.
xi) In our opinion and according to the information and explanation given
to us the transaction of purchase of goods and materials and sale of goods,
materials and services, made in pursuance of contracts or agreements
entered in registers maintained under section 301 and aggregating during
the year to Rs.50(K)0/- or more in respect of each party have been made at
prices which are reasonable having regard to prevailing market prices for
such goods, material or services.
xii) According to the informations and explanations given to us, the
company has a regular procedures for determination of un-serviceable or
damaged stores, raw material, finished goods. Adequate provision has been
made in accounts for the loss arising on the items so determined.
xiii) In our opinion and according to informations and explanations given
to us, there has been default in payment of dues on account of Interest and
principal to Fixed deposit holders. In some of the cases the depositers
have adopted legal course.
xiv) In our opinion, reasonable records have been maintained by the company
for the sale and disposal of realisable by products and scraps.
xv) In our opinion, the company has an internal audit system commensurate
with its size and the nature of its business.
xvi) The maintenance of cost records has been prescribed by the Central
Government under Section 209 (1) (d) of the Companies Act, 1956 for dyes
and dye stuffs products of the company for the period under report and
proper records as laid down in the law has been maintained by the Company.
xvii) According to the records of the company, the company is not regular
in depositing the Provident fund and E.S.I.C dues, with the appropriate
authorities during the period.
xviii)According to the information and explanations given to us no
undisputed amounts were payable in respect of Income-tax, wealth-tax, sales
tax, customs duty and excise duty were outstanding as at 31 st March, 1999
for a period of more than six months from the date they became payable.
xix) According to the 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.
xx) The company is a sick industrial company within the meaning of clause
(O) of sub-section( I ) of Section 3 of the Sick Industrial Companies
(Special) Provisions) Act 1985. Reference has been made to the Board for
Industrial & Financial Reconstruction under section 15 of the Act. The
accounts have been prepared on the concept that the company will continue
as a going concern.
xxi) In respect of the company's trading activities we are informed that
the company have damaged goods lying with it at the end of the year and
proper provision for loss has been made in the books of accounts.
For NARENDRA MANGWANI & CO.,
PLACE :INDORE NARENDRA KUMAR
DATED :9th August, 1999 Proprietor