VENTRON POLYMERS LIMITED
ANNUAL REPORT 2001-2002
The Members of
VENTRON POLYMERS LIMITED
We have audited the attached Balance Sheet of M/s. Ventron Polymers Limited
as at 31st March 2002, and the annexed Profit and Loss Account for the year
ended on that date, 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 give 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 1
above, we report that:
(a) We have obtained ail the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(b) In our opinion, proper books of account have been kept by the Company
as required by law so far as appears from our examination of those books.
(c) The Balance Sheet and Proft & toss Account referred to in this report
are in agreement with the books of account.
(d) In our opinion, the Balance Sheet and Profit & Loss accounts comply
with the requirements of accounting standards specified in sub-section 3C
of section 211 of the Companies Act, 195&.
(e) On the basis of the written -representations received from the
directors and taken on record by the board of directors, we report that
alone. of the directors are disqualified as on 31st March 2002 from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the companies Act, 1956.
(f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, read together with notes
thereon give the information required by the Companies Act, 1956, in the
mannerso required and give a true and fairview:
a. In the case of Balance Sheet, of the state of affairs of the Company as
at 31st March 2002 and
b. In the case of Profit & Loss Account, of the Loss of the Company for the
year ended on that date.
for NARESH SHARMA & CO.
Place : Mumbai
Date : 30th August 2OO2
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 of our report of even date on the accounts for
the year ended 31st March 2002 of Ventron Polymers Limited.
1. The Company is maintaining proper record showing full particulars
including quantitative details and situation of Fixed Assets. We are
informed that the Fixed Assets of the Company have been physically verified
by the Management through their representatives during the year and that no
serious discrepancies have been noticed on such verification.
2. None of the Fixed Assets have been re-valued during the year.
3. Physical verification was conducted by the Management at reasonable
intervals during the year in respect of finished goods, stores and spare
parts. The discrepancies noticed on such verification as compared with the
book records were not significant and the same have been properly dealt
with in the books of Accounts.
4. In our opinion and according try the information and explanations given
to us, the procedures of 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. The discrepancies noticed on verification between the physical stocks
and the book records were not material in relations to the operations of
the company and have been properly dealt with in the books of accounts.
6. In our opinion, on the basis of our examination of stock records, the
valuation of stocks is fair and proper in accordance with the normally
accepted accounting principles and is on the same basis as in the preceding
7. The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained under
section 301 of the Companies Act, 1950 or from companies under the same
management as defined under section 370 (1B).
8. The company has not granted any loans secured or unsecured to the
companies, firms and other parties listed in the register maintained under
section 301 of the Company's Act 1956.
9. The parties to whom Loan and Advances in the nature of loans were
granted by the company including staff advances are repaying the loan
except in one case of inter-corporate deposit where the company has taken
reasonable steps for recovery of the principal and interest.
10. In our opinion and according to the information and explanations given
to us, where transactions have been made with different parties, the
transactions of purchase of goods and 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,
1958, 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 prices for such goods, materials or services,
where such market prices are available or the prices at which
transactions for similar goods or materials have been made with other
11. In our opinion and according to the information and explanations given
to us it appears that there are adequate internal control procedures
commensurate with the size of the company and the nature of its business
with regard to purchase of Plant and Machinery and other assets and for the
sale of goods.
12. As explained to us, unserviceable or damaged Stores and Raw Materials
are determined by the company and adjustment for loss on such materials
wherever. necessary have been made in the accounts. .
13. In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from the public, to which
the provisions of section 58-A are applicable.
14. In our opinion, reasonable records have been maintained by the company
for the sale and disposal of realisable scrap.
15. We are informed that there are no by-products generated by the
manufacturing operations of the Company.
16. The Company has an internal audit system commensurate with the size of
the company and nature of its operation.
17. The Provisions of section 208 (1)(d) of the Companies Act, 1956,
regarding maintenance of cost records are not applicable to the Company.
18. We are informed that due to financial difficulties, the company has not
been regular in paying its PF and ESIC dues in time.
19. According to the information and explanation given to us there were no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Customs
Duty and Excise Duty which have remained outstanding as on 31st March 2002.
20. According to the information and explanations given to us, no personal
expenses have been charged to the Expenditure Account of the company other
than those payable under contractual obligations or in accordance with
generally accepted business practices.
21. The company is a Sick Industrial Company within the meaning of clause
(0) of sub section (1) of section 3 ofthe Sick Industrial Units/Companies
(Spl: Provisions) Act, 1985 (1 of 1386)
22. The company has no trading activities.
For NARESH SHARMA& CO.
Place : Mumbai
Date : 30th August 2002