bonanza biotech ltd Auditors report

RELIABLE PLASTICS LIMITED. AUDITORS REPORT TO, THE SHARE HOLDERS OF RELIABLE PLASTICS LTD. We have audited the attached Balance Sheet of RELIABLE PLASTICS LTD. as at 31st March, 1998 and also the Profit and Loss A/c of the Company for the year ended on that date annexed there to and reports that :- 1. As required by the Manufacturing and other Companies (Auditors Report) Order 1988 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956. We give in the Annexure a statement on the matter specified in paragraph 4 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 purposes of 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 examination of the books. c. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the above books of account. d. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with other notes thereon give the information required by the Companies Act 1956 in the manner so required and give a true and fair view. :- ln the case of Balance Sheet and state of affairs of the Company as on 31st March, 1998 and ii In the case of Profit and Loss Account, of the loss for the year ended on that date. ANNEXURE TO THE AUDIT REPORT Referred to in Paragraph of Our Report of Even Date On the Accounts For The Year Ended 31st March, 1998. The Company has maintained proper records showing particulars including quantitative details and situation of fixed Assets.However the same has not been updated. A portion of the Assets has been physically verified by the Management in accordance with a phased programme of verification adopted by the Company. 2. None of the fixed assets have been revalued during the year. 3. The stock of finished goods, stores and spare parts and raw material have been physically verified during the year by the Management. In our opinion, the frequency of verification is reasonable. 4. In our opinion the procedures of physical 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. No material discrepancies have been noticed on physical Verification of stocks as compared to books & records. 6. On the basis of our examination of stock records, we are of the opinion 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 preceeding year. 7. The company has taken loans, secured or Unsecured from companies, Firms or other parties listed in register Maintained under Section 301 of the companies Act, 1956 or from companies under the same Management within the meaning of Section 370 (1-B) of the companies Act, 1956, and according to the informations and explanations given to us, the rate of interest and other terms and conditions are not prejudicial to the interest of the company. 8. The company has granted loans to companies, firms or other parties listed in the register maintained under Section 301 of the companies Act, 1956 and / or to the companies under the same management as defined under section 370 (1 -B) of the companies Act, 1956 and terms and conditions of such loans are not prejudicial to the interest of the company. 9. In respect of loans and advances in the nature of loans given by the Company to the employees and others, principal amount and interest wherever applicable, have recovered as stipulated. 10. In our opinion and according to the Information and Explanations given to us adequate Internal control procedures exists to commensurate with the size of the company and the nature of its business with regard to purchase of stores including components, Raw-Materials Plant Machinery, Equipments and other assets and for the sale of goods. 11. In Our opinion and according to the information and explanations given to us, the transactions for purchase of goods materials and services and sale of goods,Materials and services made in pursuance of contracts or agreement entered in the registrar maintained under Section 301 of the Companies Act,1956 and aggregating during the year to Rs. 50000/- or more in respect of each party have been made at the prices which are reasonable having regard to prevailing market prices for such goods, materials or services and the prices at which transactions for similar goods, Materials or services have been made with other parties. 12. According to the information and explanations given to us, the Company has a procedure for determination of unserviceable or damaged stores,raw materials and finished goods Provision has been made in the accounts for the loss arising on the items so determined. 13. The company has not accepted deposits from the public. 14. In our opinion, reasonable records have been maintained by the Company for sale and disposal of realizable Scrap. We are informed that the company does not generate any by product. 15. In our opinion the Company has an Internal Audit system commensurate with its size and nature of its business. 16. According to the informations and explanations given to us, the Central Government has not prescribed the maintenance of Cost Records for any of the products of the company under section 209 (1) (d) of the Companies Act, 1956 for the year. 17. According to the information and explanations given to us the provisions of Provident Fund Act, are not applicable to the company for the year. However Employees State Insurance Scheme is applicable and the Company has been generally regular in depositing E.S.I. dues. 18. According to the information and explanations given to us,no undisputed amounts payable in respect of Income - Tax, Wealth - Tax, Sales Tax, Custom duty and excise duty were outstanding as at 31st March, 1998 for a period of more than six months from the date they become payable. 19. According to the information and explanations given to us, no personal expenses of employees or directors have been charged to revenue accounts,other than those payable under contractual obligations or in accordance with generally accepted business practices. 20. The Company is not 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. 21. The company has maintained proper records of the transactions and contracts of the shares securities, and other investments dealt with and has made timely entries regarding the same. The shares, securities, and other investments are yet to be registered in the name of the company. For: VIJAY K. JAIN & ASSOCIATES Chartered Accountant (V.K. JAIN) Proprietor Place : Indore Date : 05-08-1998