|
HAMCO STEELS AND ALLOYS LIMITED
AUDITORS' REPORT
To the Members of HAMCO STEELS AND ALLOYS LIMITED
We have audited the attached Balance Sheet of HAMCO STEELS AND ALLOYS LTD
as at 31st March, 1998 and also the Profit and Loss Account of the Company
for the year ended on that date annexed thereto and report that:
1. As required by the Manufacturing and other Companies (Auditors' Report)
Order, 1988 issued by the Company Law Board in terms of Section 227 (4-A)
of the Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to us,
we give in the annexure 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:
a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of the books;
c) The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of accounts:
d) i) Note No.2.3 regarding excise duty claims
ii) Note No.2.4 regarding excise claims receivable.
iii) Note No. 2.5 regarding suspension of production and depreciation.
Subject to above, in our opinion and to the best of our information and
according to the explanations given to us, the said accounts 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:
(i) in case of the Balance Sheet, of the state of affairs of the Company as
at 31st March, 1998 and
(ii) in case of the Profit and Loss Account of the Profit for the year
ended on that date
For K. S. MEHTA & ASSOCIATES
Chartered Accountants
Place: Mumbai, K. S. MEHTA
Dated: 20th August, 1998 Proprietor
ANNEXURE TO THE AUDITORS' REPORT
(i) The Company has maintained proper records showing full particulars
including quantitative details and situation of the fixed assets. The fixed
assets of the Company have been physically verified by the management at
the end of the year and no material discrepancies were noticed on such
verification.
(ii) None of the fixed assets of the Company have been revalued during the
year
(iii) As explained to us the stock of finished goods, stores, spare-parts
and raw materials have been physically verified at year end by the
management. In our opinion the frequency of the verification is reasonable.
(iv) As explained to us, the procedures of physical verification of stocks
followed by the management are in our opinion, reasonable and adequate in
relation to the size of the Company and nature of its business
(v) As per information and explanation given to us no material
discrepancies have been noticed on physical verification of stocks as
compared to the book records
(vi) In our opinion, and on the basis of our examination of stock records
the valuation of stock is fair and proper in accordance with normally
accepted accountant principles and, is on the same basis as in the
preceding year
(vii) According to the information and explanation given to us, the company
has not taken any loan, Secured and Unsecured from companies, firms or
parties listed in the registers maintained under Section 301 of the
Companies Act 1956 and the Companies under the same management, where the
rate of interest and/or other terms and conditions of such loans are prima
facie prejudicial to the interest of the company
(viii) According to the information and explanations given to us, the
Company has not given during the year any loans to the companies, firms or
parties listed in the registered maintained under Section 301 of the
Companies Act, 1956 and Companies under the same management.
(ix) In respect of the loans to employees the principal amount has been
repaid as stipulated
(x) In our opinion and according to the information and explanations give
to us, there are adequate internal control procedures commensurate with the
size of the company and the nature of its business for the purchase of
stores, raw materials, plant and machinery, equipment's and other assets
and for the sale of goods
xi) There are no transactions of purchase of goods and materials and sale
of goods, materials and services aggregating during the year to Rs.
50,000/- or more in respect of each party in pursuance of contract or
arrangement entered in the register maintained under section 301 of the
Companies Act 1956, except in case of two companies for sale of services in
which directors are interested. The rate fixed by the company for sale of
such services is reasonable having regard to specified nature of such
services and non-availability of alternative source of supply
(xii) As explained to us, the Company has reviewed its stock of raw
materials, stores and finished goods at the time of physical verification
for the purposes of determination of unserviceable and/or damaged items and
on this basis, no provision is considered necessary by the management as no
loss is anticipated.
(xiii) The Company is of the view that the provision of Section 58 A of the
Companies Act, 1956 and Companies (Acceptance of Deposit) Rules, 1975, are
not applicable to the Company since the Company has not accepted any
deposit from the public during the year and the balance lying in the Fixed
Deposit Account represents unclaimed deposits
(xiv) As the Company has not undertaken any manufacturing operations during
the year the question of maintaining records for sale and disposal of
realizable by-products and scraps does not arise
(xv) The Company did not have any formal Internal Audit System during the
year under review. However, the Company has explained that its internal
control procedures involved reasonable internal checking of its financial
records which is considered adequate under the present circumstances.
(xvi) During the year under review the Company has not maintained cost
records under Section 209(1)(d) of the Companies Act, 1956, refer note 2.5
(a) of Schedule 12
(xvii) According to the records of the Company, Provident Fund dues have
been regularly deposited during the year with the appropriate authorities
(xviii) There are no undisputed amounts payable in respect of income tax,
wealth tax, custom duty and excise duty as at 31st March 1998, which are
outstanding for a period of more than six months from the date they became
payable
(xix) According to the information and explanation given to us, no personal
expenses have been charged to Revenue account other than those payable
under contractual obligations or in accordance with generally accepted
business practices.
(xx) The Company is not a sick industrial company within the meaning of
clause (O) sub-section (I) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985
(xxi) As informed to us there were no damaged, goods in the case of goods
traded in by the Company
(xxii) In our opinion and to the best of our information and according to
explanation given to us, the nature of the services rendered by the company
is such that it does not give rise to any jobs involving allocation of man
hours and materials (stores not being consumed for such services)
For K. S. MEHTA & ASSOCIATES
Chartered Accountants
Place: Mumbai, K. S. MEHTA
Dated: 20th August, 1998 Proprietor
|