LOHIA POLYSTER LIMITED
A. i) Proper records showing full particulars including quantitative
details and situation of fixed assets have been maintained. Physical
verification has been conducted by the management and no discrepancy has
been noticed on such verification
We have audited the attached Balance Sheet of Lohia Polyester Ltd. as at
31st March, 1999 and the Profit and Loss Account for the year ended on that
date annexed thereto 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 purpose of our audit.
2. 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 the books.
3. The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of accounts .
4. In our opinion the Profit and Loss account and Balance Sheet of the
company complies with the accounting standard referred to in subsection
(3C) of section 211 of the Companies Act. 1956.
5. In our opinion and to the best of our information and according to the
explanations given to us the accounts read together with other notes
thereon, give the information required by the Companies Act, 1956 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, 1999 and
Il. In the case of the Profit & Loss Account of the Loss for the year ended
on that date.
6. As required by the Manufacturing And Other Companies (Auditors' Report)
Order, 1988, issued by the Company Law Board in terms of section 227 (4A)
and on the basis of such checks as we considered appropriate, we further
ii) None of the fixed assets have been revalued during the year.
iii) The stocks of finished goods, stores, spare parts and raw materials
have been physically verified by the management at reasonable intervals
during the year.
iv) In our opinion and according to the information and explanation given
to us. The procedure, of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of the
v) No material discrepancies have been noticed on physical verification of
stocks as compared to book records.
vi) In our opinion and on the basis of our examination of the valuation of
stocks, such valuation is fair and proper in accordance with the normally
accepted accounting principles and is on the same basis as in the preceding
vii) The Company has not taken any loan from companies,firms and other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 As explained to us there is no Company under the same
management within the meaning of section 370 (1-B) of the Companies Act,
viii) The Company has not given loans to Companies, firms and other parties
listed in the register maintained under section 301 of the Companies Act,
1956. As explained to us there is no Company under the same management
within the meaning of section 370(1-B) of the Companies Act, 1956.
ix) The company has not given any loans or advance in the nature of loans.
x) In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of its business
with regard to the purchase of stores, raw materials including components,
plant and machinery, equipment and other assets and with regards to the
sale of goods.
xi) In our opinion and according to the explanations given to us, the
transaction of purchases 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) as aggregating during the year to Rs.50 000/- or more in
respect of each party have been made at prices which are reasonable having
regard to prevailing market price for such goods, materials or services or
the prices at which transaction for similar goods or services have been
made with other parties.
xii) In our opinion, the company has regular procedures for the
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provision has been made in the accounts for the
loss arising on the items so determined.
xiii) The company has not accepted any deposit from the Public.
xiv) There has been no generation of any scrap or by products except for
yarn waste which is not of substantial quantity.
xv) In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
xvi) The Central Government has not prescribed maintenance of Cost Records
under section 209(1)(d) of the Companies Act, 1956 for any of the products
of the Company.
xvii) The company has been regular in depositing Provident Fund dues with
appropriate authorities. As explained to us Employees'State Insurance
Scheme is not applicable to the company.
xviii) According to the information and explanations given to us and
records of the Company examined by us, there were no undisputed amounts
payable in respect of Income tax, Wealth tax, Sales tax, Customs Duty and
Excise Duty which have remained outstanding as at 31st March, 1999 for a
period of more than six months from the date they become payable.
xix) According to the information and explanations given to us and records
of the company examined by us no personal expenses have been charged to
revenue account other than those payable under contractual obligations
accordance with generally accepted business practice.
xx) The company is not a sick industrial Company with the meaning of the
clause (O) of the sub-section (1) of th section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
B. In respect of Trading activities, we are informed that the Company does
not have damaged goods Iying with it at the end of the year. Therefore, no
provision for any loss is required to be made in the accounts.
C. The Company has a reasonable system of recording receipts of customers
material in respect of Texturising Twisting Jobs which it undertakes. We
are informed that specific authorisation and allocation of material & store
consumed to relative job's is not made since it forms insignificant part of
For MITTAL RAJEEV & ASSOCIATES
Date : 9th August,1999.