AUDITORS' REPORT 1997-98
The Members of
RADHIKA POLYESTERS LIMITED
We have audited the attached Balance Sheet of "RADHIKA POLYESTERS LIMITED"
as at 31st March, 1998 and the Profit & Loss Account for the year ended on
that date annexed thereto and report that:
1. As required by Manufacturing and other companies (Auditors' 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 paragraph 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1 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 appears from our examination of such books;
c) The Balance Sheet and Profit & Loss Account dealt with by 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 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, and
ii) In the case of the Profit and Loss Account, of the Loss of the Company
for the year ended on that date.
FOR S.M KAPOOR & CO,
Place : Mumbai
Dated : 31 st JULY, 1998.
Referred to in paragraph 1 of the report of even date of the Auditor's to
the members of Radhika Polyesters limited.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. These fixed
assets of the Company have been physically verified by the management at
reasonable intervals and no material discrepancies between the book records
and inventory have been noticed.
2. None of the fixed assets have been revalued during the Year.
3.. The stock of raw materials, semi-finished goods, finished goods, stores
and consumable, have been physically verified during the year by the
management at reasonable intervals. In our opinion the frequency of
verification is reasonable.
4. In our opinion and according to the information and explanations given
to us, the procedures of verification of stock followed by the Management
are reasonable and adequate in relation to the size of the company and the
nature of its business.
5. The discrepancies noticed between the physical stocks as verified and
book records were not material and the same have been properly dealt with
in the books of account.
6. The company did not have stock at the end of the year and hence the
question of reporting with regard to valuation of stock does not arise.
7. The rates of interest and other terms and conditions of loans taken by
the company from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956 are in our opinion
prima facie not prejudicial to the interest of the company.
8. According to the information and explanations given to us, and the
records of the company examined by us, the Company has not given any
loans/advances to companies, firms or other parties listed in the register
maintained U/s 301 of the Companies Act, 1956.
9. In respect of loans & advances in the nature of loans given by the
company, where stipulations have been made, parties have generally repaid
the principal amounts as stipulated and have also been generally regular in
payment of interest . In our opinion, having regard to the nature of the
loans, reasonable steps have been taken for recovery.
10. In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to purchase
of stores, raw materials, including components, Plant & Machinery,
equipment and other assets and for the sale of goods.
11. In our opinion and according to the information and explanations given
to us, where transactions have been made with different parties, the
transactions of purchases & sales 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 or more in respect of each party have been made at prices
which are reasonable having regard to the prevailing market price for such
goods, materials or services, where such market price are available or the
prices at which transactions for similar goods or materials have been made
with other parties.
12. As explained to us, the Company has a regular procedure for the
determination of unserviceable or damaged stores and raw materials.
Adequate provisions has been made in the accounts of loss arising on the
items so determined.
13. According to the information and explanations given to us and records
of the company examined by us, the Company has not accepted deposits from
14. In our opinion, reasonable records have been maintained by the company
for the sale and disposal of scrap. We are informed that there is no by-
15. In our opinion, the Company has an adequate Internal Audit system
commensurate with its size and nature of its business.
16. The Central Government has not prescribed maintenance of cost records
for the company under section 209(1)(d) of the Companies Act, 1956 for its
17. According to the information and explanations given to us, the
Provisions of Employees' Provident Fund and Employees' State Insurance
Scheme and the rules framed thereunder are not applicable.
18. In respect of undisputed Wealth Tax, Income Tax Sales Tax, Customs
Duty and Excise Duty, there were no amount outstanding as on 31st March
1998 which have remained unpaid for more than six months from the date on
which they become payable.
19. According to the information and explanation given to us, and the
records of the Company examined by us, no personal expenses have been
charged to revenue account other than those payable under contractual
obligation or in accordance with generally accepted business practice.
20. The Company is not a Sick Industrial Company with the meaning of clause
(0) of the Sub-section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985. (1 of 1986).
21. In our opinion, in respect of the trading activities the company, we
are informed that there are no damaged stocks.
22. In respect of the Service activities, the company has. a reasonable
system of recording receipts, issues and consumption of materials and
stores and allocating materials consumed to relative jobs, commensurate
with its size and nature of its business. The company has a reasonable
system of authorisation at proper levels, and adequate system of internal
control commensurate with the size of the company and the nature of its
business on issue of its stores and allocation of stores and Labour to
FOR S M KAPOOR & CO,
Dated: 31st July, 1998.
FOR S. M. KAPOOR & CO