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ANNUAL REPORT 1998-99
RAJENDRA MINING SPARES COMPANY LIMITED
AUDITOR'S REPORT
TO
THE MEMBERS OF
RAJENDRA MINING SPARES COMPANY LIMITED
We have audited the attached Balance Sheet of RAJENDRA MINING SPARES
COMPANY LIMITED as at 31st March,1999 and the Profit & 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 (Auditor's 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, we report that:
a) We have obtained all the informations and explanations which to the best
of our knowledge and belief were necessary for the purposes 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 such
books.
c) The Balance Sheet and Profit & Loss Account referred to in this report
are in agreement with books of accounts.
d) In our opinion the Balance Sheet and the Profit & Loss Account complies
with the Mandatory Accounting standards referred to in section 211(3C) of
the companies Act, 1956.
e) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts subject to
i) Note No. G relating to interest on Term Loan and Working Capital.
ii) Note No. H relating to damage of goods due to fire. And read together
with other notes thereon, give the true and fair view:
i. In the case of Balance Sheet of the State of affairs of the Company as
at 31st March,1999 and
ii. In the case of Profit & Loss Account, of the Loss of the Company for
the year ended on that date.
For G. R. SHETTY & CO.
CHARTERED ACCOUNTANTS
( G.R. SHETTY )
PROPRIETOR
PLACE: MUMBAI
DATE: 27.08.1999
ANNEXURE TO AUDITOR'S REPORT
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. We are
informed that most of the assets have been physically verified by the
management during the year and that no material discrepancies were noticed
on such verification In our opinion, the frequency of such verification is
reasonable having regard to the size of the Company and the nature of its
assets.
2. None of the Fixed Assets have been revalued during the year
3. According to the information and explanations given to us, the stock of
raw materials have been physically verified by the management at the end of
the year. In our opinion, the frequency of such verification is reasonable.
4. In our opinion, the procedure of physical verification of stocks
followed by the management are reasonable and adequate in relation to the
size of the Company and the nature of its business.
5. As explained to us, there were no material discrepancies noticed on
physical verification of the stocks .
6. In our opinion, and on the basis of our examination of stock and other
records, the valuation of stocks is fair and proper and is in accordance
with the normally accepted accounting principles and is on the same basis
as in the preceding year.
7. The Company has not taken any loans, secured or unsecured from the
Companies Firms or other parties listed in the register maintained under
section 301 of the Companies Act, 1956 and/or from Companies under the same
management as defined under sub-section (1-B) of section 370 of the said
Act.
8. The Company has not granted any loans, secured or unsecured to Companies
firms, or other parties listed in the register maintained under section 301
of the Companies Act, 1956 or to Companies under the same management within
the meaning of section 370(1 -B) of the Companies Act,1956.
9. The parties to whom the loans or advances in the nature of loans have
been given by the Company are generally repaying the principal amounts as
stipulated and are also regular in the payment of interest wherever the
same is stipulated.
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
and sale of goods.
11. In our opinion and according to the information and explanations given
to us, there are no transactions of purchase of goods or 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,and aggregating during the year to Rs. 50,000/- [Rupees
fifty Thousand only] or more in respect of each party.
12. As explained to us, in the opinion of the management the raw materials
are not damaged or unserviceable and hence no provision is made for the
same.
13. Since the Company has not accepted any deposits within the meaning of
the Companies (Acceptance of Deposits) Rules, 1975, the directives issued
by the Reserve Bank of India, the provisions of section 58A and the rules
framed thereunder are not applicable.
14. As explained to us, the Company does not have any by-product or
production scrap.
15. In our opinion the Company has an adequate internal audit system
commensurate with the size and nature of business.
16. As explained to us, the Central Government has not prescribed
maintenance of cost records under section 209(1)(d) of the Companies Act,
1956 in the case of the Company.
17. According to the records of the company, company is regular in
depositing ESI dues with the appropriate authorities, we have been informed
that, Provident Fund is not applicable to the Company.
18. According to information and explanations given to us, no undisputed
amounts payable in a respect of the Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty were outstanding as on 31.03.199 for a period
of more than six months from the date of becoming payable.
19. According to the information and examinations given to us and on the
basis of records examined by us, no personal expenses of employees or
directors have been charged to revenue account other then those payable
under Contractual obligations or in accordance with generally accepted
business practice.
20. The Company is not a sick industrial Company within the meaning of
clause (O) of sub-section (1) of section 3 of the sick Industrial Companies
(Special Provisions) Act,1985.
21. In respect of service activities of the Company, as per the information
and explanations given to us and taking into consideration the nature of
the business of the Company, it is not required to have a system of:
a) Recording of receipts, issue and consumption of materials and stores.
b) Allocation of man-hour utilised and
c) Authorisation at proper levels and internal control on issue of stores
and allocation of stores and labour to jobs.
Accordingly this report does not include a statement on the matters
specified above.
For G. R. SHETTY & CO.
CHARTERED ACCOUNTANTS
( G.R. SHETTY )
PROPRIETOR
PLACE: MUMBAI
DATE : 27.08.1999
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