ESENES FORGINGS LIMITED
ESENES FORGINGS LIMITED
We have audited the attached Balance Sheet of ESENES FORGINGS LIMITED AS AT
31st March' 1998 and also the annexed Profit and Loss account of the
company for the year ended on that date and report as under :
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. We are
informed that the assets have been physically verified by the management at
reasonable intervals having regard to the size of the Company and the
nature of its assets. We are also informed that no materials discrepancies
were noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. The stocks of raw materials, finished goods, stores and spares parts
have been physically verified by the management at reasonable intervals
during the year.
4. In our opinion and according to the information and explanations given
to us, 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.
5. No discrepancies noticed on physical verification of stocks as compared
with book records.
6. In our opinion and on the basis of our examination of stock records,
the valuation of stocks is fair and proper in accordance with normally
accepted accounting principles.
7. The Company has not taken unsecured loans from companies, firms and
other parties listed in the register required to be maintained under
Section 301 or from companies under the same management as defined under
Section 370 (1 B) of the Companies Act, 1956.
8. The Company has not granted loans to companies, firms and other parties
listed in the register required to be maintained under Section 301 of the
Companies Act, 1956.
9. The Company has not given any loans or advances in the nature of loans.
10. In our opinion and according to the information and explanations given
to us, there are reasonable internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase of
raw material, components, stores, plant and machinery, equipment and other
assets and with regards to the sale of goods.
11. The Company has not entered into transactions of purchase of goods and
services and of 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 and aggregating during the year to
Rs.50,000/- (Rupees Fifty Thousand Only) or more in respect of each party.
12. As explained to us, there were no unserviceable or damaged stores, raw
materials or finished goods during the year.
13. The Company has not excepted any deposits within the meaning of
Section 58 A of the Companies Act, 1956.
14. The Company has maintained reasonable records for sale and disposal of
15. There is no formal internal audit system existing in the company.
16. We are informed that the Central Government has not prescribed the
Company to maintain the cost records under Section 209 (1)(d) of the
Companies Act, 1956.
17. We are informed that the provisions of the Employees Provident Fund
and Miscellaneous provision Act, 1952 and Employees' State Insurance Scheme
do not apply to the Company.
18. We are informed that there were no undisputed amounts payable in
respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty
outstanding as at 31st March, 1998 for a period of more than six months
from the date they become payable.
19. As appears from our examination of the records, no personal expenses
have been charged to the Company's account other that those payable on
account of contractual obligations or in accordance with generally accepted
20. The Company is not a sick industrial company within the meaning of
Section 3(1)(o) of the Sick Industrial Companies (Specials Provisions) Act,
21. In relation to trading activity of the Company, since the Company does
not have any damaged goods lying with it at the end of the year, no
provision for such loss has been made in the accounts.
II. Further to our comments in paragraph I above, we have to state that:
(i) We have obtained all the informations and explanations which to the
best of our knowledge and belief were necessary for the purpose of audit.
(ii) 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 these
(iii) The Balance Sheet dealt with by this report is in agreement with
the books of account;
(iv) 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 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, 1998.
ii) in the case of the Profit and Loss account of the Loss for the
year ended on that date.
For PARIKH JOSHI & KOTHARE
Place : Mumbai (B.R. RANADE)
Date : 29th August,1998 Partner