AUDITORS' REPORT TO THE SHAREHOLDERS
We have audited the attached Balance Sheet of SINGHAL CEMENT AND ALLIED
INDUSTRIES LIMITED as at 31.03.1997 and Profit & Loss Account of the
Company 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.
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 said Balance Sheet and Profit & Loss Account dealt are in agreement
with the books of account.
4. 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 significant accounting policies in schedule
17' and the other notes appearing thereon, give the information required by
the Companies Act, 1956, give in the manner so required and give a true and
a. In the case of the Balance Sheet of the State of affairs of the Company
as at 31.03.1997
b. In the case of the Profit 8 Loss Account of the Loss for the year ended
on that date. 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 and on the basis of such checks
as we considered appropriate, we report that:
1. The company has maintained proper records to show full particulars
including quantitative details and situation of fixed assets. The fixed
assets of the Company have been physically verified by Management at
reasonable intervals and no discrepancies have been noticed on such
2. None of the fixed assets has been revalued during the year
3. The stocks of Finished goods and Raw materials, Packing material, Stores
& Spare parts have been physically verified by the Management during the
year at reasonable intervals.
4. The procedures 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. No material discrepancies have been
noticed on physical verification of stocks as compared to book records.
5. In our opinion the valuation of Stocks is fair and proper in accordance
with the normally accepted accounting principles.
6. In our opinion, the rates of interest and the terms and conditions of
Unsecured Loans, taken by the Company during the year, from the Companies
listed in the register maintained under Section 301 of the Companies Act,
1956, are not prima facie prejudicial to the interest of the Company. Some
of the Loans taken are free of interest and are not, prima facie,
prejudicial to the interest of the Company.
7. The Company has granted Unsecured Demand Loans to Companies, firms or
other parties not listed in the register maintained under section 301
and/or to the Companies under the same management as defined under Section
370 (IB) of the Companies Act, 1956. In some cases, no interest has been
charged. Keeping the fact in view that interest free loans are also
accepted in some cases. we are unable to comment whether these loans are
prejudicial to the interest of the Company or not.
8. 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 Material including components, plant and machinery,
equipment and other assets.
9. In our opinion and according to the information and explanations given
to us, the transaction or purchase of goods and materials and sale of goods
materials and services made in the pursuance of contracts or arrangements
entered in the registers 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 for such goods, materials or services
or the prices at which transactions for similar goods materials or services
have been made with other parties.
10. As explained to us the Company has a regular procedure for the
determination of unserviceable or damaged stores and raw materials.
Adequate provision has been made in the account for the loss arising on the
items so determined.
11. in our opinion and according to the information and explanation given
to us. the Company has complied with thre provisions of Section 58 A of the
Companies Act,1956. the Companies (Acceptance of Deposits) Rules, 1975 and
directives issued by Reserve Bank of India with regard to the deposits
accepted from the public.
12. In our opinion, reasonable records have been maintained by the Company
for the sale and disposal of scraps. The Company has no by-products.
13. In our opinion. the Company does not have a formal internal audit
system though its internal control | ;. systems are commensurate
with its size and nature of its business.
14. The Company has not maintained Cost Accounts and records as prescribed
by the Central Government under section 209(1)(d) of the Companies Act,
15. Employees State Insurance and Provident fund do not apply to the
16. According to the books and records examined by us and the information
and explanations given to 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 31.03.97 for a period exceeding six
months from the date of they became payable by the Company.
17. According to the information and explanations 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
obligations or in accordance with generally accepted business practice.
18 The Company is not a Sick Industrial Company within the meaning of
clause (0) of Section3(1) of the Sick Industrial Companies (Special
Provisions) Act, 1985.
19. In respect of goods traded by the Company, there is no damaged stocks.
For JAIN SANCHETY & CO.
Place : Jodhpur (A.R. Sanchety)
Date : 04.11.97 Partner