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SURYACHAKRA SEAFOODS LIMITED
ANNUAL REPORT 2002-2003
AUDITORS' REPORT
To
The Members of
SURYACHAKRA SEA FOODS LIMITED
We have audited the attached Balance sheet of SURYACHAKRA SEA FOODS LIMITED
as at 31st March, 2003 and also the Profit and Loss Account of the Company
for the year ended on that date annexed thereto. These financial statements
are the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
1. As required by the Manufacturing and other Companies (Auditor's Report)
Order, 1988 issued by the Central Government in terms of Sub-section(4A) of
227 of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
2 Further to our comments in the Annexure referred to in paragraph i above,
we report that:
a) We have obtained all the information and explanations, which to the beat
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 examinations of such books.
c) The Balance Sheet and Profit and Loss account dealt with by this report
are in agreement with the books of account.
d) In our opinion the Balance Sheet and the Profit and Loss account dealt
with by this report comply with the applicable Accounting Standards
referred to in Section 211(3C) of the Companies Act 1956.
e) On the basis of written representations received from the Directors of
the company as at 31st March, 2003, and taken on record by the Board of
Directors of the Company, we report that prima facie none of the Directors
are disqualified as at 31st March, 2003, from being appointed as a Director
in terms of clause (g) of sub-section(1) of section 274 of the Companies
Act, 1956.
f) The company has drawn its accounts on a Going Concern Basis. We are of
the opinion that the going concern basis is questionable in view of the
uncertainties associated with the actions initiated as explained in note
no. 8 of schedule 15, adverse financial and operating indications and also
due to on continuation of operations for substantial period. We are unable
to express an opinion in this regard and also it's likely, impact on the
operations and on the assets and liabilities of the company.
g) No Provision has been made for balances under loans and advances
amounting to Rs.6,25, 000. These balance along with certain liabilities
under current liabilities and provisions are being carried forward for more
than 5 years. We are unable to express an opinion on reliability/existence
of the same and their adverse impact on the financial position of the
company.
h) As stated in note no 3 of schedule 15 regarding the reference made to
larger Bench of the Honorable Supreme Court Of India and pending the
pronouncement its final order, we are unable express an opinion of its
impact on the operations and financial of the company,
i) Subject to paragraphs (f), (g) and (h) above, in our opinion and to the
best of our information and according to the explanations given to us, the
said Balance Sheet and Profit and Loss account made together with Note No
4, 5, 6 and 8 of Schedule 15 and other Notes there on as stated in Schedule
15 together with Significant Accounting Policies give the information
required by the Companies Act, 1956, in the manner so required and give a
true and fair view in conformity with the accounting principles generally
accepted in India:
i. In so far as it relates to the Balance Sheet, the stale of affairs of
the Company as at 31st March, 2003; and
ii. In so far as it relates to the Profit and Less account, of the Loss of
the company for the year ended on that date.
For K.S.S. Gangadhar & Co.
Chartered Accountants
Place: Hyderabad (K.S.S. Gangadhar)
Date : 28-8-2003 Proprietor
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph one of our Report of even date)
1. The Company has not updated its Fixed Assets Register. The management
has not physically verified the fixed assets hence we are unable to express
any opinion on discrepancies, if any.
2. None of the fixed assets have been revalued during the year.
3. Since the Company does not have any stock of finished goods, stores
spare parts and raw materials, the question of conducting the Physical
verification and valuation does not arise. Hence no comments are offered on
matters specified in clause (iii), (iv), (v), (vi) of Clause 4A of
Manufacturing and Other Companies (Auditor's Report) Order, 1988.
4. The company has not taken any unsecured loans from, the parties listed
in the Register maintained under section 301 of the Companies Act, 1956. As
Section 370 of the Companies Act, Re: loans etc., from companies, under the
same management has been made inoperative on and after 31st October, 1998
by the Companies (Amendment) Act, 1999, no comments are offered.
5. The Company has not granted any loans to the companies firms or other
parties listed in the register maintained under section 301 of the
Companies act, 1956. As section 370 of the Companies Act, Re: loans etc.,
from companies, under the same management has been made :,operative on and
after 31st October, 1998 by the Companies (Amendment) Act, 1999, no
comments are offered.
6. The Company has not granted any loans or advances in the nature of loans
to it's employees during the year.
7. According to the information and explanations given to us, in our
opinion internal control procedures need to be strengthened to make it
commensurate with the size of the company and the nature of its business
with regard to purchase of stores including components, plant and
machinery, equipment and assets and for sale of goods.
8. There are no contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 and hence
requirement of reporting regarding transactions of Purchase of goods
materials and services made in pursuance of such contracts aggregating
during the financial year to Rs.50000/- or more in respect of each party
does not arise.
9. There are no unserviceable or damaged stores, raw materials and finished
goods in the inventory.
10. The Company has not accepted any deposits from the public.
11. In our opinion reasonable records have been maintained by the Company
for the sale and disposal of realisable by products and scrap.
12. The Company does not have internal audit system in vogue for the year
ending 31st March, 2003.
13. We are informed that the Central Government has not prescribed the
maintenance of cost records under Section 209(1)(d) of Companies Act, 1956
for the products of the Company.
14. According to the information and explanation given to us the provisions
regarding Provident Fund and Employees State Insurance Acts are not
applicable to the company at present.
15. According to the information and explanations given to us, the Company
does not have any undisputed amounts payable in respect of income-tax,
wealth tax, sales tax, customs duty and excise duty which have remained
outstanding as on 31st March, 2003 for a period of more than six months
from the date they became payable. b) The company has not deposited
Rs.7,97,513 raised by department of Customs and Central excise towards de
bonding of assets, as the same is disputed by the company. The company has
gone for appeal, and the same is pending before the Commissioner (Appeals)
of Customs and Central excise, Hyderabad. The company has deposited
Rs.1,10,780/- against the said disputed liability.
16. According to the information and explanation given to us no personal
expenses have been charged to revenue account other than those payable
under contractual obligations or in accordance with the generally accepted
business practice.
17. According to the information and explanations given to us the
provisions of Sick industrial Companies (Special Order) Act, 1985 are not
applicable to the Company.
For K.S.S. Gangadhar & Co.
Chartered Accountants
Place: Hyderabad (K.S.S. Gangadhar)
Date : 28-8-2003 Proprietor
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