femnor minerals ltd Auditors report

FEMNOR MINERAL (INDIA) LIMITED ANNUAL REPORT 1999-2000 AUDITORS REPORT To The Shareholders of M/S FEMNOR MINERAL (INDIA) LIMITED We have audited the attached Balance Sheet of M/S. FEMNOR MINERAL (INDIA) LIMITED as on 31st December 2000 and the Profit and Loss Account for the period ended on that date and report that: 1) As required by the Manufacturing and other Companies (Auditors Report) Order, 1988 issued by the Company Law in terms of sections 227(4A) of the Companies Act, 1956, based on the information and explanation given to us and upon such checks which we considered appropriate and necessary, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order. 2) Further to my comments in the Annexure referred to in paragraph 1 above, We state that : (a) We have obtained all the information of 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 appears from our examination of such books. (c) The Balance Sheet and Profit & Loss Account referred to in this Report are in agreement with the books of accounts. (d) In our opinion the Balance Sheet and Profit and Loss Account referred to in this report are drawn up so as to comply with the requirements of the Accounting Standards referred to in SubSection (3C) of section 211 of the Companies Act, 1956. (e) Dividend of Rs. 196.50 lacs having been unpaid for more than one year as on 31-12-2000 due to Pendancy of case, we report that none of the director is disqualified as on 31-12-2000 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 Balance Sheet and Profit & Loss Account 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: (i) In the case of Balance Sheet, of the state of affairs of the company as at 31st December 2000 and (ii) In the case of the Profit and Loss Account, of the LOSS of the Company for the period ended on that date. for BURUGANUDEEN & CO. CHARTERED ACCOUNTANTS Place: Alathur Sd/- Date : 18-05-2001 (A.BURUGANUDEEN) Chartered Accountant ANNEXURE REFERRED TO IN PARAGRAPH 1 OF MY REPORT OF EVEN DATE 1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The Company has the procedure for verification assets in a phased manner which on my opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on verification. 2. None of the fixed Assets has bean revalued during the year. 3. The Stocks of finished goods, spare parts and raw materials have been physically verified during the year by the management. In my opinion, the frequency of verification is reasonable. 4. The procedures for physical verification of stocks followed by the management are reasonable and adequate commensurate with 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. 6. In our opinion, 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. 7. The company has not taken any loans secured or unsecured from the parties listed in the registers maintained under section 301 and from the companies under the same management with in the meaning of section 370(1B) of the Companies Act, 1956. 8. The company has not grants any loans secured or unsecured from the parties listed in the registers maintained under section 301 and from the companies under the same management within the meaning of section 370(1B) of the Companies Act, 1956. 9. In respect of loans and advances in the nature of loan given to employees and others, the principle amounts and interest thereon, wherever applicable, have been repaid as stipulated. 10. In my 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 equipments its business with regard to purchase of stores, raw materials including components, plant and machinery and other assets and with regard to the sale of goods. 11. There are transactions of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements entered with the parties listed in register 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 has been made at prices which are reasonable having period to prevailing market price for such goods, materials or the services have been made with other parties. 12. As explained to me, the Company has a regular procedure for the determination of unserviceable or damaged stores, Adequate provision has been made in the accounts for the loss arising on the items so determined. 13. The Company has not accepted fixed deposits from the public during the period. 14. In my opinion, the company has maintained reasonable records for the sale and disposal of scraps. The Company has no by-products. 15. In my opinion, the Company has an internal audit system commensurate with the size and nature of its business. 16. The Central Government has not prescribed maintenance of any cost records under section 209(1)(d) of the Companies Act, 1956 for any of the the products of the Company. 17. Provident Fund and Employees State Insurance dues have been regularly deposited during the year with appropriate authorities. 18. According to the information and explanations given to me, no undisputed amounts payable in respect of Income tax, Sales tax, Customs Duty and Excise Duty wherever applicable were outstanding, as on 31.12.2000 for a period of more than six months from the date these became payable. 19. According to the information and explanations given to me, no personal expenses of employees or directors have been changed to revenue account, other than those payable under contractual obligations or in accordance with generally accepted business practice. 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. In respect of goods traded in by the Company, as explained to us damaged goods have been determined and adequate provision has been made there for. for BURUGANUDEEN & CO. CHARTERED ACCOUNTANTS Sd/- Place: Alathur (A. BURUGANUDEEN) Date : 18-05-2001 Chartered Accountants