avon industries ltd Auditors report

AVON INDUSTRIES LIMITED (Formerly known as Avon Containers Printers Ltd.) ANNUAL REPORT 1999-2000 AUDITORS REPORT To The Members of AVON INDUSTRIES LIMITED We have audited the attached Balance Sheet of Avon Industries Limited as at 31st March, 2000 and also the annexed Profit and Loss Account of the Company for the year ended on that date and report as under : 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 we annexe hereto a statement on all matters specified in paragraphs 4 & 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 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 Accounts as required by law, have been kept by the Company so far as it appears from our examination of the books. c) The Balance Sheet acrd the Profit and Loss Account dealt with by this report are in agreement with the books of accounts. d) In our opinion the Profit and Loss Account and Balance Sheet comply with accounting Standard specified by the Institute of Chartered Accountants of India refer to in Sub Section 3 (C) of Section 211 of Companies Act, 1956. e) In our opinion and to the best of our information and according to the explanations given to us, the said Accounts 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 31st March, 2000 and ii) In so far as it relates to the Profit and Loss Account, of the Loss of the Company for the year ended on that date. For Ratnakara & Associates Chartered Accountants M. Ratnakara Rao Proprietor Hyderabad 22nd July, 2000 ANNEXURE TO AUDITORS REPORT Annexure Referred to in Paragraph 1 of our Auditors Report of even date on the Accounts for the year ended 31st March, 2000, of Avon Industries Limited. 1. The Company has maintained proper records showing full particulars including quantitative details and situation of all fixed assets. All the assets of the Company have not been physically verified by the Management during the year but there is a regular programme of verification which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on verification. 2. None of the fixed assets have been revalued during the period. 3. The inventory consists of only finished goods which have been physically verified at reasonable intervals by the management during the period. The finished goods pertaining to earlier years. 4. The procedures for the physical verification of finished goods followed by the management are reasonable and adequate in relation to the size of the Company. 5. The Company has not taken any loans, secured or unsecured from Companies, firms or other parties listed in the registers maintained under section 301 of the Companies Act, 1956 or from the Companies under the same management as defined under Sub Section (1B) of Section 370 of the Companies Act, 1956. 6. The Companies has not granted any loans, secured or unsecured, to Companies, firms or other parties listed in the registers maintained under Section 301 of the Companies Act, 1956 or to the Companies under same management as defined under Sub Section (1B) of Section 370 of the Companies Act, 1956. 7. Loans and Advances in the nature of loans have not been given by the Company to any party. 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 components, plant and machinery, equipment and other assets and with regard to the sale of goods. 9. In our opinion and according to the information and explanations given to us the transactions of the purchase of goods and materials and sale of goods, materials and services, made in 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 not been made by the Company. 10. The Company has not accepted any deposits from the public. 11. The Company had no internal audit for the period under audit. 12. During the period under audit there was no sale of scrap. The Company has no by-products. 13. The Central Government has not prescribed the maintenance of cost records by the Company under Section 209(1)(d) of the Companies Act, 1956. 14. The Company does not have arrears of Provident Fund and Employees State Insurance. 15. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty except for the Sales tax of Rs. 21,02,340/- were outstanding at 31.03.2000 for a period of more than six months from the date they became payable. 16. No personal expenses have been charged to revenue account during the year under audit. 17. The Company has become a sick Industrial Company within the meaning of clause(O) of Sub Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. For Ratnakara & Associates Chartered Accountants M. Ratnakara Rao Proprietor Hyderabad 22nd July, 2000