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PRIMUS CHEMICALS LIMITED
AUDITORS REPORT
To,
The Members
Primus Chemicals Limited,
UJJAIN.
We have audited the attached Balance Sheet of PRIMUS CHEMICALS LIMITED,as
at 31st March, 1998, and the Preliminary & Pre-operative Expenses Account
for the year ended on that date annexed thereto and report that:
01. As required by the Manufacturing and other Companies (Auditors Report)
Order 1988 Issued by the Company Law BOard in terms of Sec. 227 (4A) of the
Companies Act,1956, we enclose in the Annxure a Statement on related
matters specified in paragraph 4 & 5 of the said order.
02. Further to our comments in the Annexure referred to in paragraph 1
above, we state that:
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 appears from our examination of such books;
c) The Balance Sheet and Preliminary & Pre-operative Expenses Account
referred to in this report are in agreement with the books of account;
d) In our opinion and to the best of our information and according to the
explanations given to us, the said Balance Sheet and Preliminary & Pre
operative Expenses Account 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 Balance Sheet, of the state of affairs of the Company as
at 31/03/98
ii) in the case of Preliminary & Pre-operative Expenses of the Company for
the year ended on that date.
For V. K. LADHA & ASSOCIATES
CHARTERED ACCOUNTANTS
Place : Ujjain V. K. LADHA
Date : 29/07/1998. [Partner]
ANNEXURE TO THE AUDITORS REPORT
The annexure, as referred to in our report dated 29/07/1998 is made in
terms of the information and explanations given to us and the books and
records examined by us in the normal course of Audit, Further in our
opinion and to the best of our knowledge and belief, we state that:
01. The Company is in process of updating its records to show full
particulars including quantitative details and situations of Fixed Assets.
As explained to us, the Fixed Assets have been physically verified by the
management at the end of the year. The frequency of verification is
reasonable. In absence of complete records, no reconciliation of physical
inventory of fixed assets is done.
02. None of the Fixed Assets of the Company have been revalued during the
year.
03. Point No. 3, 4, 5 & 6 which are related with stocks are not applicable
as Company has not started its Production.
04. As per information and certificate provided to us, the Company has
taken unsecured loan from a Company listed in the Register maintained under
Section 301 of the Companies Act, 1956 the term o loan is not prima face
prejudice to the interest of the Company and it is informed to us that
there is no Company under the same management.
05. As per information and certificate provided to us, the Company has not
granted any secured/ unsecured loan to Companies listed in the Register
maintained u/s 301 of the Companies Act,1956 and there is no Company under
the same management.
06. In respect of the parties to whom the loans or advances in the nature
of loans have been given, no formal stipulations as to the rate of interest
and repayment of principal have been specified, hence, we are unable to
state whether the Company has taken reasonable steps for recovery of
principal and interest. Though, these advances are given to employees of
the Company only.
07. There are adequate internal control procedure commensurate with the
size of the Company and the nature of its business with regard to purchase
of stores, components, Plant & Machinery, equipment and other assets. The
Company has not purchased raw materials and sold goods, as it has not
started production.
08. The transactions of purchase of goods and material and sale of goods,
material and services made in pursuance of contract or agreement,
aggregating during the year Rs. 50,000/- or more in respect of each party
have been made at prices which are reasonable having regards to prevailing
market prices. As per explanations and certificate given to us the Company
has not purchased any goods stores/Plant and Machinery from Firm/Companies
which are listed in the Register maintained under section 301 of the
Companies Act, 1956.
09. As the Company has not commenced production, no internal auditor was
appointed.
10. The Central Government has not prescribed the maintenance of Cost
records u/s. 209 (l) (d) of the Companies Act, 1956, as the Company has not
commenced its production.
11. No undisputed amounts are payable in respect of income tax, wealth tax,
customs, duty and excise duty as at the end of the year, for a period
exceeding six months from the date they become payable.
12. No personal expenses of employees or directors have been charged to
revenue account, other than those payable under contractual or in
accordance with generally accepted business practice.
13. The Company is not sick industrial Company within the meaning of clause
(O) of subsection (l) of section 3 of the Sick Industrial Companies
(Special Provision) Act, 1985.
For V. K. LADHA & ASSOCIATES
CHARTERED ACCOUNTANTS
Place : Ujjain V. K. LADHA
Dated : 29/07/1998. [Partner]
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