TO THE MEMBERS OF DATT MEDIPRODUCTS LIMITED
1. We have audited the attached Balance Sheet of DATT MEDIPRODUCTS LIMITED,
as at 31st March, 2004 and also the Profit and Loss Account and the Cash Flow Statement
for the year ended on that date 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 the 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 made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central
Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Act,
1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and
5 of the said Order.
4. Further to our comments in the Annexure referred to above, we report that
(i) We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purposes of our audit;
(ii) 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 those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Row Statement dealt with by
this report are in agreement with the Books of Account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report comply with the accounting standards except Accounting Standard
22 regarding accounting for Taxes on Income (refer point no.5 of Notes on accounts In
Schedule 15) referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts subject to note no. 5 of Notes on accounts In
Schedule 15 regarding non provision of deferred tax liability, give the information
required by the Companies Act 1956, in the manner so required and give a true and fair
view in confirmity with the accounting principles generally accepted in India;
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st
(b) In the case of the Profit and Loss Account, of the Profit for the year ended on
that date; and
(c) In the case of the Cash Flow Statement, of the Cash flows for the year ended on
||For K. L. CHATRATH & COMPANY
|New Delhi Camp,the 25th June 2004
ANNEXURE TO THE AUDITOR'S REPORT
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF DATT
1. The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
2. The assets have been physically verified by the management during the year and there
is a regular programme of verification, which in our opinion, is reasonable having regard
to the size of the company and nature of its assets. No material discrepancies were
noticed on such verification.
3. During the year, the company has not disposed of a major part of the plant and
machinery based on the information and explanation given by the management and on the
basis of audit procedures performed by us.
4. The inventory has been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
5. The procedures of physical verification of inventories followed by the management
are reasonable and adequate in relation to the size of the company and nature of its
6. On the basis of our examination of the records of the inventory, we are of the
opinion that the company is maintaining proper records of inventory.
7. The Company has taken secured and/or unsecured loan from two companies covered in
the Register maintained under Section 301 of the Companies Act, 1956. The year end balance
of the loans taken from such companies was Rs. ('000) 86.400.00.
8. The company has not granted any secured and/or unsecured loans to companies, firms
and other parties covered in the Register maintained under Section 301 of the Companies
9. In our opinion the rate of interest and other terms and conditions on which loans
have been taken from companies, firms or other parties listed in the registers maintained
under Section 301 are not prima facie, prejudicial to the interest of the company.
10. The company is regular in repaying the principal amounts as stipulated and has been
regular in the payment of interest.
11. There is no overdue amount of loans taken from or granted to companies, firms or
other parties listed in the registers maintained under Section 301 of the Companies Act,
12. In our opinion and according to the information and explanations 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 purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
13. Based on the audit procedures applied by us and according to the information
explanations provided by the management, we are of the opinion that the transactions that
need to be entered into the register maintained under Section 301 have been so entered.
14. In our opinion and according to the information and explanations given to us, no
transactions have been made in pursuance of contracts or arrangements with companies,
firms or other parties covered in the registers maintained under Section 301 exceeding the
value of five lakh rupees in respect of any party during the year.
15. In our opinion and according to the information and explanations given to us, the
company has not accepted any deposit from public.
16. In our opinion, the company has an internal audit system commensurate with the size
and nature of its business.
17. The Central Government has not prescribed maintenance of Cost Records under Section
209 (1)(d) of the Companies Act, 1956.
18. According to the records of the company, the company is regular in depositing with
appropriate authorities undisputed statutory dues including provident fund, investor
education protection fund, employees' state insurance, income-tax, sales tax, wealth tax,
custom duty, excise duty, cess and other statutory dues applicable to it.
19. According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty were
outstanding, as at 31st March, 2004 for a period of more than six months from the date
they became payable.
20. According to the records of the company, there are no dues of sales tax,
income-tax, customs duty/wealth tax, excise duty/cess which have not been deposited on
account of any dispute.
21. The company does not have accumulated losses as at 31st March 2004 and has not
incurred cash losses during the financial year ended on that date or in the immediately
preceding financial year.
22. Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that the company has not defaulted in repayment of dues
to a financial institution or bank.
23. Based on our examination of documents and records, the company has not granted
loans and advances on the basis of security by way of pledge of shares, debentures and
24. The company has not given any guarantee for loans taken by others from bank or
25. Based on our examination of documents and records, the company has not taken any
26. Based on our examination of the balance sheet of the company as at 31st March,
2004, we are of the opinion that the company has not used funds raised on short term basis
for long term purposes and vice-versa.
27. The company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the Act during the year.
28. The Company has not issued any debentures.
29. The Company has not raised any money by public issue during the year.
31. Based upon the audit procedures performed and information and explanations given by
the management, we report that no fraud on or by the company has been noticed or reported
during the course of our audit.
||For K. L. CHATRATH & COMPANY
|New Delhi Camp,the 25th June 2004