alpic finance ltd Auditors report

ALPIC FINANCE LTD ANNUAL REPORT 2000-2001 AUDITORS REPORT To The Shareholders Alpic Finance Ltd We have audited the attached Balance Sheet of Alpic Finance Ltd as at 30th June 2001 and Profit & Loss Account of the Company for the year ended on that date annexed thereto and,report that : 1. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board, in terms of Section 227(4A) of the Companies Act, 1956, on the basis of such checks as we considered appropriate and to the best of our knowledge and according to the information and explanations given to us, 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: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. b) In our opinion, proper Books of Account, as required by the law, have been kept by the Company, so far as appears from our examination of such books. c) The Balance Sheet and Profit & Loss Account referred in this Report are in agreement with the Books of Account. d) In our opinion the Balance Sheet and Profit & Loss Account are in confirmity with the accounting standards prescribed in sub section (3c) of section 211 of the Companies Act, 1956 and guidelines issued by Reserve Bank of India. e) On the basis of written representation received from the directors of the Company as on 30th June,2001 and taken on record by the Board of Directors we report that no director is disqualified from being appointed as directors of the Company under section 274(1)(g) of the Companies Act, 1956. f) ATTENTION IS INVITED TO THE FOLLOWINGS IN SCHEDULE -T i) Re. Pending effect of de-merger of "CSD Division" under scheme of arrangement for which the Company is in the process to file the appeal (vide note no B-2) ii) Re : The recoverability of Overdue charges and realisability of the residual value of assets given on lease depends upon ultimate realisation. (vide Note No : B-12) Subject to the foregoing, 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 the Notes thereon as per Schedule T annexed, 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 of the Company as at 30th June, 2001 ; and II. In so far as it relates to the Profit & Loss Account, of the LOSS of the Company for the year ended on that date. For R.Kothari & Co. Chartered Accountants Mumbai (Sanjeeb Agarwal) November 30th 2001 Partner Annexure to the Auditors Report Annexure referred to in paragraph 1 of the Auditors Report to the Shareholders of ALPIC, FINANCE LIMITED on the Accounts for the year ended 30th June, 2001. 1. The company is maintaining records showing particulars, including quantitative details and situation of Fixed Assets and are in the process of being updated from time to time. As explained to us, all the owned Fixed Assets have been physically verified by the Management during the year and in respect of the Lease Assets, the Management has followed standard confirmation procedure to verify the physical existence of the selected Fixed Assets, at their own/clients organisation, except in cases where the primary period of the lease has expired. In our opinion, the frequency of verification is reasonable. We are informed by the Management that the discrepancies, if any. will be identified and written off after the records are updated. 2. Fixed Assets were not revalued during the year. 3. The Company did not hold any closing stock as stock in trade at the Balance Sheet date We are, therefore, not required to comment on their physical verification and valuation. 4. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from parties listed in the register maintained under Section 301 and Section 370 (1B) of the Companies Act, 1956, are not prima facie prejudicial to the interest of the Company. 5. In our opinion, the rate of interest and other terms and conditions on which loans have been granted to parties listed in the register maintained under Section 301 and Section 370 (1B) of the Companies Act, 1956, are not prima facie prejudicial to the interest of the Company. 6. The parties/employees to whom loans or advances in the nature of loans have been given by the Company are generally repaying the principal amount, Wherever stipulated, and are also regular in payment of interest, where applicable. We are informed that where there is a delay in repayment of principal, the Company is taking reasonable steps for the recovery of the same. 7. The frequency and the periodicity of inter office reconciliations and bank reconciliations needs to be improved. Subject to the above in our opinion and according to the information and explanations given to us, there are adequate internal control procedure commensurate with the size of the Company and nature of its business for the purchase and sale of shares securities & other assets. 8. In our opinion and according to the information and explanations given to us, the transaction of sale and purchase of shares & securities and services made in pursuance of a contract or arrangement entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year Rs. 50,000/- or more in respect of each party, are at reasonable prices having regard to the prevailing market prices at which similar transactions have been made with other parties. 9. In our opinion and according to the information and explanations given to us, the Company has generally complied with the directives issued by the Reserve Bank of India, in respect of the deposits accepted from the public and the provisions of Section 58A of the Companies Act, 1956, wherever applicable. 10. The Internal Audit system of the Company requires to be further strengthened and scope and coverage need to be enlarged. 11. Provident Fund and ESIC dues have generally been deposited regularly by the Company with appropriate authority 12. According to the information and explanations given to us and based on the verification of the records of the Company, there are no undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty, which were outstanding as at the year end, for a period of more than six months from the date they became payable. 13. According to the information and explanations given to us, and based on the verification of the records of the Company carried by us in accordance with generally accepted auditing practices including test checks and as certified by the Management no personal expenses, other than those payable under contractual obligations or in accordance with generally accepted business practice, were charged to the Revenue Account. 14. According, to the information and explanations given to us, the nature of the business of the Company and its mode of charging for services rendered by it, does not necessitate the maintenance of records of receipts, issue. and consumption of stores and system for reasonable allocation of materials and man-hours consumed to the relative jobs: However, there exists a reasonable internal control system commensurate with the size of the Company of the nature of its business. 15. In our opinion and according to the information and explanations given to us, the Company has maintained timely entries in respect of transactions and contracts of dealing or trading in shares, securities, debentures and other investments in accordance with general practice. The shares, debentures, securities and other investments have been held by the Company in its own name or to the extent of exemption granted under Section 49 of the Companies Act, 1956, as applicable. 16. Our comments on Paragraph 4 & 5 of MAOCARO have been given above to the extent applicable to the Company. For R.Kothari & Co. Chartered Accountants Mumbai (Sanjeeb Agarwal) November 30th 2001 Partner