ANNUAL REPORT 1997-98
VISHAL LAKTO (INDIA) LIMITED
THE MEMBERS OF VISHAL LAKTO (INDIA) LIMITED
We have audited the Balance Sheet of M/s Vishal Lakto (India) Limited as at
30th June, 1998 and the Profit & Loss Account and Cash Flow Statement 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
our knowledge and belief were necessary for the purpose of our audit.
2) In our opinion proper books of account, as required by law, have been
kept by the company so far as appears from our examination of such books.
3) The Balance Sheet and the Profit & loss Account and the Cash Flows
Statement referred to in this Report are in agreement with the books of
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 notes
thereon, give the information required by the companies Act, 1956, in the
manner so required and give a true and fair view:
a) in so far as it relates to the Balance Sheet, of the state of affairs of
the Company as at 30th June, 1998, and
b) in so far as it relates to the Profit & Loss Account, Profit of the
Company for the year ended on that date.
5. As required by the Manufacturing and other Companies (Auditor's Report)
Order, 1988, issued by the Central Government and on the basis of such
checks as we considered appropriate and according to the information and
explanations given to us, we further report that :
i. The company has maintained proper records,showing full particulars
including quantitative details and situation of its fixed assets. As per
the information and explanations given to us, the fixed assets have been
physically verified by the management at reasonable intervals and no
material discrepancies are stated to have been noticed on such
ii. None of the Fixed Assets have been revalued by the Company during the
iii. As per the information and explanations given to us and in our
opinion, the management has conducted physical verification of finished
goods, stores, spare parts and raw materials at reasonable intervals during
iv. As per the information and explanations given to us and in our
opinion,the procedures followed by the management for physical verification
of stocks are reasonable and adequate, keeping in view the size of the
Company and the nature of its business.
v. The discrepancies noticed by the management on physical verification of
stocks as compared to the book records were not material.
vi. On the basis of our examination of stocks, we find that 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 year.
vii. As per the information and explanations given to us, the terms and
conditions of interest free loans taken by the Company form its directors
are, prima-facie, not prejudicial to the interest of the company. Further,
we have been informed that company has not taken any loan from the
companies under the same management.
viii. As per the information and explanations given to us, the Company has
not given any loans to Companies, firms or other parties listed in the
register(s) maintained under section 301 or to the Companies under the same
management as defined under section 370 of the Companies Act, 1956.
ix. As per the information and explanations given to us, loans and advances
in the nature of interest free loans given by the company to its employees
are being repaid as stipulated.
x. As per 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 for the purchase of stores, raw materials,
including components, plant & machinery, equipment and other assets and for
sale of goods.
xi. As per the information and explanations given to us, the transactions
of purchases of goods and materials in pursuance of arrangements entered in
the register maintained under section 301 of the Companies Act, 1956, as
aggregating during the year to more than Rs. 50,000/- in respect of each
party have been made at reasonable prices.
xii. As per the information and explanations given to us, the Company has a
regular procedure of determining unserviceable or damaged stores, raw
materials and finished goods. Adequate provision has been made in the
accounts for the loss arising on the items so determined.
xiii. The Company did not accept and deposits from public during the year
xiv. As explained to us, the Company does not have any realisable scraps or
xv. In our opinion, the Company has an internal audit system commensurate
with its size and the nature of its business.
xvi. As per the information and explanations given to us, the Company is
maintaining necessary cost records as prescribed by the Central Government
under section 209(1)(d) of the Companies Act, 1956.
xvii. As per the information and explanations given to us, the Company has
been regular in deposit of Provident Fund dues. The Employees State
Insurance Scheme was not applicable to the Company during the year.
xviii. According to the information and explanations given to us, there
were no undisputed amounts payable in respect of income-tax, wealth-tax,
sales tax, custom duty and excise duty which were outstanding as at
30.06.1998 for the period of more than six months from the date they became
xix. According to the information and explanations given to us and on the
basis of books and records examined by us, no personal expenses of
employees or directors have been charged to the revenue account, other than
those payable under contractual obligations or in accordance with generally
accepted business practices.
xx. The Company is not a Sick Industrial Company within the meaning of
clause (0) of sub-section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
xxi. In regard to its trading activities, the Company has determined the
damaged goods during the course of physical verification of such goods and
adequate provision has been made for the loss on this account, wherever
For SEKHRI & VERMA ASSOCIATES
Place: New Delhi (SHASHI VERMA)
Date : 18-11-98 PARTNER