EBERS PHARMACEUTICALS LIMITED
ANNUAL REPORT 2000-2001
To the Members of
EBERS PHARMACEUTICALS LIMITED
We have audited the attached Balance Sheet of Ebers Pharmaceuticals Limited
as at 31st March, 2001 and the annexed Profit & Loss Account for the year
ended on that date and report that :-
1. 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.
2 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.
3. The Balance Sheet and Profit & Loss Account referred to in this report
are in agreement with the books of account.
4. In our opinion, the Profit and Loss Account and Balance Sheet comply
with the accounting standards referred to in sub-section (3C) of Section
211 of the Companies Act, 1956.
5. On the basis of the written representations received from the directors
and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March, 2001 from being appointed as a
director in terms of clause (g) of sub-section (1) of section 274 of the
Company Act. 1956.
6. In our opinion and to the best of our information and according to
explanations given to us, the said Balance Sheet and Profit & Loss Account
subject to (i) note No. 2 in Schedule 18 regarding non provision of the
doubtful debts and advances to the extent of Rs. 60.60 lacs. ii) Guarantees
given by the company referred in note no.3 are in excess of the limits
specified in Section 372A of the Companies Act 1956 to the extent of
Rs.10.00 crores iii) the Cash on hand of Rs. 4,13,590/- as on 31.3.2001 as
shown in Schedule - 9 to the Balance Sheet was not verified by us: and read
with other notes thereon, give the information required by the Companies
Act. 1956, in the manner so required and give a true and fair view
a) in the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2001 and
b) in the case of the Profit & Loss Account, of the loss for the year ended
on that date.
7. As required by the Manufacturing & Other Companies (Auditor's Report)
Order 1988. issued by the Central Government and on the basis of such
checks as we considered appropriate and according to the information and
explanations given to us, we report as under :-
i) The Company has maintained records showing full particulars including
quantitative details and situation of fixed assets except for the Plant &
Machineries and Furniture and Fixtures installed at Company's Plant
situated at Rabale, Thane Belapur Road, Thane. We were informed that the
fixed assets have been physically verified by the management at reasonable
intervals and no material discrepancies have been noticed on such
verification. However Plant & Machineries and Furniture & Fixtures have
been kept in dismantled condition, the same could not be verified by us.
ii) None of the fixed assets of the company have been revalued during the
iii) Physical verification has been conducted by the management at
periodical intervals in respect of finished goods and raw materials.
iv) The procedures followed by the Management for such physical
verification are, in our opinion, needs to be strengthened as to its
frequencies so as to be commensurate with its size and nature of its
v) The material discrepancies noticed on such verification between the
physical stock and the book records have been properly dealt with ire the
books of account.
vi) In our opinion, 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 preceeding year.
vii) The Company has taken unsecured loans from companies, firms or other
patties listed in the register maintained under Section 301 of the
Companies Act, 1956. The terms and conditions of such loans are not prima
facie prejudicial to the interest of the Company. As explained to us there
are no companies under the same management as defined under Sub-section
(IB) of Section 370 of the companies Act, 1956.
viii) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties listed in the register maintained under
section 301 of the Companies Act, 1956. As explained to us, there are no
Companies under the same management as defined under Sub-section (IB) of
Section 370 of the Companies Act, 1956.
ix) In respect of loans or advances in the nature of loans given by the
Company, to the employees as interest free advance the employees are
generally repaying the principal amounts as stipulated. As regards advances
given to others to the extent of Rs. 3.77 lacs no amount is repaid during
the year and is considered doubtful of recovery.
x) There are adequate internal control procedures commensurate with the
size of the Company and nature of its business for the purchase of raw
material, equipment and other assets and sale of goods.
xi) According to the information and explanations given to us, there have
been no transactions entered into during the year with different parties
for purchase and sale of goods in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies Act.
1956 and aggregating during the year to Rs.50,000 or more in respect of
xii) The Company has neither determined nor made any provision tot the loss
on account of any unserviceable or damaged raw material or finished goods.
xiii) The Company has not accepted deposits during the year.
xiv) The Company's operations do not generate any realisable by products.
In our opinion reasonable records have been maintained by the company for
the sale and disposal of scrap.
xv) The internal audit system of the Company needs to be strengthened as to
its scope and frequency so as to be commensurate with size and nature of
xvi) The Company has not maintained cost records as prescribed by the
Central Government under Section 209(1)(d) of the Companies Act. 1956.
xvii) According to the information made available to us there have been
delays in depositing Provident fund and Employees State Insurance dues with
xviii)According to the information and explanations given to us and the
books and records examined by us, there are no undisputed amounts payable
in respect of income tax, sales-tax, customs and excise duty outstanding as
at the Balance Sheet date for a period exceeding six months from the date
they become 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) We were informed that the Company being in the SSI sector, the
provisions of the Sick Industrial Companies (Special Provisions) Act. 1985
are not applicable as provided in Section 3(1)(f) of the said Act.
xxi) In respect of Company's trading activity, according to the
explanations given to us, no damaged goods have been determined.
for J. D. PADWAL & CO.
J. D. PADWAL