ANNUAL REPORT 1998-99
M/s Dewan Steels Limited
We have audited the attached Balance sheet of M/s Dewan Steels Limited as
at 30th June.1999 and also the attached Profit and Loss Account of the
Company for the year ended on that date. We report as follows:
1. As required by the manufacturing and other companies (Auditors Report)
order 1975 issued by the Company Law Board in terms of section 227(4At of
the Companies Act.1956. we enclose in annexure a statement on the matters
specified in paragraphs 4to 5 of the said order. subject to notes
i) Attention s invited to note no. 'O' of the notes to accounts regarding
preliminary expenses which have been written off entirely by Rs.13481678.00
due to closure of Tyre & Tube division.
ii) Attention is invited to note no. 'N' of the notes to accounts regarding
dividend for accounting year 1995-96 of Rs.16674240/- which have been
revoked by shareholders in the last AGM.
2 Further to our comments in the annexure referred to paragraph 1 above.
a) We have obtained all the information and explanation which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of accounts as required by law have been
kept by the company so far as appears from our examination of those books.
c) The balance sheet and the profit and loss account and the Balance sheet
comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act. i 956.
d) In our opinion and to the best of our information and according to the
explanations given to us. the said accounts read with the subject to the
notes forming part of the accounts read with and appearing thereon given
the information as required by the Companies Act.1956 in the manner so
required and gives a true and fair view:
i) In the case of the Balance sheet of the affairs of the company as at
ii) In the case of the profit and loss account of the loss of the company
for the year ending 30th June.1999.
FOR ASHOK & COMPANY
PLACE: MEERUT (ASHOK KUMAR )
DATED: 27-11-1999 PROPRIETOR
ANNEXURE TO THE AUDITORS' REPORT
REFERRED TO IN THE PARAGRAPH (1) OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. the fixed
assets of the company have been physically verified by the management
during the year and no material discrepancies between the book records and
physical inventory have been noticed.
2. None of the fixed assets have been revalued during the year.
3. As explained to us the stocks of Finished Goods. Stores spare parts and
raw materials of the company have been physically verified by the
management during the year.
4. In our opinion the procedures for physical verification of stocks
followed by the management are reasonable and adequate in relation to the
size of the company and the nature of its business. The discrepancies
between the physical stocks and the books stocks, which have been properly
dealt with were not material in relation to the size of the company's
5. In our opinion and on the basis of our examination of stocks, records
the valuation of stock is fair and proper in accordance with the normally
accepted accounting principles and is on the same basis as in the previous
6. The company has taken unsecured loans from the Companies, firms,
intercorporate or other parties listed in the register maintained under
section 301 of the Companies, Act,1956 (1 of 1956) and /or from Companies
under the same Management as defined under sub section 1 B of the section
370 of the Companies Act,1956 ( 1 of 1956). In respect of above no terms of
conditions has been determined.
7. The Company has granted unsecured loans to companies, firms,
intercorporate or other companies listed in the register maintained under
section 301 and to the companies under the same management for which no
terms and conditions has been determined. Other parties are repaying the
principal amount as stipulated.
8. In our opinion, according to the information and explanation given to
us, there are adequate internal control procedure, commensurate with its
size and nature of its business for the purchase of stores. raw material
including components, plant and machinery, equipments and other assets and
the sales of goods.
9. In our opinion and according to the information and explanation given to
us, there are no 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 (1 of 1956) and aggregating during the year to
Rs.50000/- (Rs. Fifty thousand only) or more in respect of any party.
10. According to the information and explanation given to us the company
has a regular procedure for the determination of unserviceable and damaged
stores, raw materials and finished goods and adequate provision has been
made in the accounts for the loss arising on the items so determined.
11. The Company has not accepted any deposit from public hence provisions
of Section 58A of the Companies Act are not applicable.
12. In our opinion reasonable records have been maintained by the company
for the sale and disposal of realisable by products and scrap, wherever
13. In our opinion the internal audit system of the company is commensurate
with the size and the nature of its business.
14. The cost records are not applicable to the unit as Tyre and Tube Unit
15. According to the records of the company. The Company is generally
regular in payment of Provident fund and ESI with the appropriate
16. According to information and explanation given to us no undisputed
amount payable in respect of sales tax, customs duty etc. were outstanding
as on 30th June,1999 for a period of more than six months from the date of
becoming payable subject to note no. 'F(iv)' of notes to accounts regarding
a dispute of Rs.7,30,000/- with sales tax authorities.
17. According to the information and explanation given to us and on the
basis of records examined by us no personal expenses or employees or
directors have been charged to Revenue Account other than those payable
under contractual obligation or in accordance with generally accepted
18. The Company is not a sick industrial company with in the meaning of
Clause (O) of Sub Section (1) of section (3) of the Sick Industrial
Companies (Special Provisions) Act,1985 (1 of 1986).
19. There are no damaged trading stocks and question of providing for loss
does not arise.
FOR AHSOK & COMPANY
PLACE: MEERUT (ASHOK KUMAR)
DATED: 27-11- 1999 PROPRIETOR