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SYP AGRO FOODS LIMITED
AUDITOR'S REPORT
We have audited the attached Balance sheet of SYP AGRO FOODS LIMITED as on
30th September,1998 and Profit & loss Account of the Company for the period
ended on 30th September,1998 annexed there to 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) a statement of the matters for the purpose of our audit.
(2) Further to our comments in the Annexure "A" referred to in the
paragraph I above we report as under.
(a) We have obtained all the information and explanations which to the best
of our Knowledges and belief were necessary for the purpose of our
audit.
(b) 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 such books
of accounts.
(c) The Balance Sheet and the Profit & loss Account referred to in this
report are in agreement with the books of accounts.
(d) In our opinion and to the best of our information and according to the
explanations given to us the said Balance sheet and Profit & Loss Account
read together with 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 so far as it relates to the Balance Sheet of the state of affairs as
on 30th September,1998.
(ii) In so far as it relates to the Profit & loss Account of the Profit
during the period ended on 30th September,1998.
For S.HEMAL & ASSOCIATES
CHARTERED ACCOUNTANTS.
(HEMAL DESAI)
Proprietor.
Place: Ahmedabad
Date : 3rd March,1999
Annexure "A" referred to in the Auditor's Report to the members of SYP
AGRO FOODS LIMITED for the period ended on 30th September,1998.
(i) As informed to us the Company is in the process of compiling fixed
assets have physically verified by the management at reasonable
intervals. No materials descrepancies were noticed on such verification.
(ii) None of the fixed assets were revalued during the accounting period.
(iii) As per information supplied to us by the management had conducted
physical verification at reasonable intervals in respect of finished
goods, stores, spare parts and raw materials.
(iv) The procedure for physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
(v) No material discrepancies have been noticed on physical verification on
stock as compared to book records.
(vi) On the basis of our examinations of stock we are satisfied that
such valuations is fair and proper in accordance with the normally
accepted accounting principles. The basis of valuations of stock is the
same as in the preceding year.
(vii) The rate of interest and other terms and conditions of loans if any
secured or unsecured to companies,firms and other parties listed in the
register maintained under section 301 of the companies Act,1956 (1 of
1956) and from the companies under the same management as defined under
section 370(1B) are not prima facie prejudicial to the interest of the
company.
(vii) The rate of interest and other terms and conditions of loans if any
secured or unsecured to Companies,firms and other parties listed in the
register maintained under section 301 of the Companies Act 1956(1 of 1956)
and to the companies under the same management as defined under section
370 (1B) of the Companies Act,1956 are not prime facie prejudicial to the
interest of the company.
(ix) As informed to us the parties to whom loans or advances in the nature
of loans have been given by the company are repaying the principal
amounts as stipulated. However written contract for such contract of such
loans and advances are not made by the Company.
(x) There is an adequate internal control procedure commensurate with the
size of the company and the nature of its business for the purchase of
stores raw materials including components plant and machinery equipments
and other assets and for the sale of goods.
(xi) The transactions of purchase of sale of goods, materials and
services made in pursuance of contract or arrangement entered in the
register (s) maintained under section 301 of the Companies Act,1956 (1 of
1956) and aggregating during the year to Rs 50,000 (Rupees fifty thousand)
or more in respect of each party have been made prices which are
reasonable having regard to prevailing market prices for such goods
materials or services or the prices at which transactions for similar
goods or services have been made with other parties.
(xii) As per information supplied by the management there were no
unservicable or damaged stores,raw materials or finished goods at the year
end loss on account of unserviceable or damaged stores,raw materials or
finished goods during the year has been duly accounted in the books of
accounts.
(xiii) As per information and explanations given to us by the management,
barring some aspects the company has generally compiled with the
directives issued by the Reserve Bank of India and the provisions of
section 58A of the Companies Act,1956 and the rules framed thereunder
where applicable in respect of deposits from the public. The Company has
accepted share application money exceeding deposits acceptable as per said
regulation for which allotment is pending for the want of compliance with
legal formalities.
(xiv) As informed to us the Company is in the process of establishing an
internal audit system commensurate with its size and nature of its
business to take care of some area of operations which were identified to
have need for the better internal control and check.
(xv) It was informed to us that the Central Govt has not prescribed
maintenance of cost records under section 209(1)(d)of the Companies
Act,1956 (1 to 1956).
(xvi) There were no realisable scraps and by products. Hence this clause
is not applicable to the company.
(xvii) As per the information supplied to us by the management the
provisions of Employees State Insurance Act are not applicable to the
company. It was further informed that the provisions of Employee's
Provident fund had become applicable to the company w.e.f. May 95 and
necessary formalities for several compliances were under process.
(xviii) As on last day of financial year except for some cases pertaining
to income tax and tax deducted payable in respect of Wealth tax, Sales
tax, Customs Duty and Excise Duty outstanding for a period of more than
six months from the date they become payable.
(xix) No personal expenses have been charged to revenue accounts except
managerial remuneration and other payments persuant to relevant employment
contracts.
(xx) The company is not sick industrial company within the meaning of
clause (o) of subsection (1) of section 3 of the sick industrial companies
(special provision) Act,1985.
(xxi) There were no damaged goods.Hence questions of its determinations and
provisions for any loss does not arise.
For S.HEMAL & ASSOCIATES
CHARTERED ACCOUNTANTS
Place: Ahmedabad (HEMAL DESAI)
Date : 3rd March,1999. Proprietor.
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