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KIEV FINANCE LIMITED
ANNUAL REPORT 1998-1999
AUDITORS' REPORT
We have audited the attached Balance Sheet of M/s Kiev Finance Limited as
at 31st March, 1999 Profit and Loss Account for the Year ended on that date
annexed thereto and report that:
1. As required by the Manufacturing and Other Companies (Audited Report)
Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956. We enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. Further to our comments in the annexure referred to in paragraphs 1
above:
a) (i) We have obtained the information and explanations which is to the
best of our knowledge and belief were necessary for the purpose of our
audit; It is informed that with regard to the books of accounts of the Head
Office, according to the management's information to transaction has been
dealt during the same financial year, hence on the basis of the Directors'
declearation the same opening balance are incorporated with books of
account of Mumbai Branch;
b) (ii) In our opinion and subject to note to the accounts para 10, books
of accounts have been kept by the Company so far as appears from our
examination of the books of accounts except Head Office;
b) The Balance Sheet of Profit and Loss Account dealt with by this report
are in agreement with the Books of Account, subject to note to the accounts
para 10;
c) In our opinion and to the best of our information and according to the
explanations given to us, the Mumbai Branch accounts, subject to the note
to the accounts para 10 and other notes appearing in the schedules and
elsewhere in the accounts as also the Significant Accounting Policies in
the Schedule 'L' gives the information required by the Companies Act, 1956,
in the manner so required and present a true and fair view:
1. In the case of the Balance Sheet of the state of affairs as 31st March,
1999.
2. In the case of Profit and Loss Account of the Loss for the year ended on
that date.
For SAHALOT & CO.
Chartered Accountants
Place: Bhayander Rakesh Sahalot
Date : 1st September, 1999 Proprietor
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF M/S KIEV FINANCE LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST
MARCH, 1999:
1. According to the explanations given by the management the Company's
branch has maintained adequate records to show full particulars, including
quantitative details and situations of fixed assets, the records of Fixed
Assets and situation of Fixed Assets were verified by the management itself
in terms of a phased program. Further the Company has leased assets with
various parties which is not confirmed by the management with regard to the
physical verification of fixed assets. The same is not verified by at the
time of audit.
2. None of the fixed assets of the Company have been revalued during the
year.
3. Physical verification of stock of securities has been conducted by the
management at reasonable intervals and no discrepancies were noticed on
such verification. The procedures followed by the management for the
physical verification are, in our opinion, reasonable and adequate in
relation to size of the Company and the nature of its business. In our
opinion, the valuation of such shares and securities is fair and proper, in
accordance with the normally accepted accounting principles and is on the
same basis as in the proceeding year. All shares in stock are delisted from
the market.
4. The Company has not taken any loan, secured or unsecured from/to given
any loans to Companies, firms or other parties listed in the Register
maintained under section 301 of the companies Act, 1956 or covered by the
definition of companies under the same management under section 370(IB) of
the Companies Act, 1956, except its subsidiary.
5. The principal amount and interest wherever stipulated thereon in respect
of loans and advance in the nature of loans given by the company to
parties/employees partly have been recovered and partly are in recoverable
the balance confirmation from parties/employees has not been confirmed.
6. In our opinion and in accordance with the information and explanations
given to us, there are no adequate internal control.
7. As informed by the management the transaction of purchase and sale made
in pursuance of contracts or arrangements, entered in the register
maintained under section 301 of the Companies Act, 1956 and aggregating
during the to Rs.50000/- or more in respect of each party have been made
at price which are reasonable having regard to prevailing market price.
8. In our opinion and according to the information and explanations given
to us, the Company's branch has compiled with the directives issued by the
Reserve Bank of India and the provisions of Section 58A of the Companies
Act, 1956 and rule framed thereunder, in respect from public accepted by
the company.
9. According the information and explanations given to us there are no
undisputed amounts payable in respect of Income Tax, Custom Duty and Excise
Duty outstanding as at 31st March, 1999 for a exceeding six months from
the date they became payable.
10. The Company has no policy of authorising expenditure based on
reasonable checks and balances. The policy is intended to ensure that
expenses are authorised on the basis of contractual obligations are
accepted business practices having regard to the Company's business needs
and exigencies. In terms of these observations, we have not come across any
expenses charged to Revenue Account which is, In our opinion and judgment
and to the best of our knowledge and belief, could be regarded as personal
expenses, nor have any such expenses been reported to us.
11. The Company is not a Sick Industrial Company within the meaning of the
Sick Industrial Companies (Special Provisions) Act, 1985.
12. The Company has in shares & securities during the year.
13. AS informed to us the Company's branch has not granted any loans or
advances on the basis of security by way of pledge of shares, debentures
and other similar securities.
14. We are informed that the provisions of any special statue applicable to
Chit funds Nidhi, or Mutual Benefit Society do not apply to the Company.
15. In our opinion and on the basis of information given to us, the
services rendered by the company do not required any allocation of man-
hours.
16. The bank account of Subsidiary's Company M/s Topaz Securities Limited
has been forzen by Bank Authorities.
17. Other items of aforesaid Order are, in our opinion not applicable to
the Company.
For SAHALOT & CO.
Chartered Accountants
Place: Bhayander Rakesh Sahalot
Date : 1st September, 1999 Proprietor
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