filaments india ltd Auditors report

ANNUAL REPORT 1998-99 ALERT PETROGAS LIMITED AUDITORS REPORT To, The Members of ALERT PETROGAS LIMITED We have audited the attached Balance sheet of Alert PETROGAS LIMITED as at 31st March,1999 and also the Profit and Loss Account 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, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order to the extent applicable. 2. Further to our comments in the annexure referred to in paragraph 1 above: a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purposes of our audit; b) In our opinion, proper books of account as required by law have been kept by the Company, so far as it appears from our examination of the book; c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account; d) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with Notes No. 1A & 1B 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 affair of the Company as at 31st March,1999 and ii) in the case of the Profit and loss Account of the loss for the year ended on that date. e) In our opinion the profit and loss account and the balance sheet comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act,1956. For P.R.GANDHI & CO. Chartered Accountants P.R.GANDHI Partner Place: MUMBAI Date : 25th August,1999. ANNEXURE TO DIRECTORS REPORT Referred to in paragraph 1 of our report of even date on the accounts for the year ended 31st March,1999 of ALERT PETROGAS LIMITED. 1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. As explained to us the fixed assets were physically verified by the management during the year. No material discrepancies were noticed on such physical verification. 2. None of the fixed assets have been revalued during the year. 3. In respect of stocks of liquid petroleum gas, stores and consumables and finished goods, physical verification has been conducted by the management at reasonable intervals. 4. In our opinion and according to the information and explanations given to us the procedure of physical verification of stocks followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business. 5. The discrepancies if any noticed on physical verification of book records which were not material have been properly dealt with in the books of account. 6. In our opinion on the basis of our examination of the stock records the valuation of stocks is fair and proper in accordance with the normally accepted business principles. 7. The Company has not taken loans during the year from companies,firms or other parties listed in the register maintained under section 301 of the Companies Act,1956 except unsecured loans from directors the rate of interest and the terms and conditions of such loans are prima prima facie not prejudicial to the interest of the Company. As explained to us there is no company under the same management as defined under sub-section (1-B) of Section 370 of the Companies Act,1956. 8. The Company has not granted any loans secured or unsecured to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act,1956. As explained to us there is no company under the same management as defined under sub-section (1-B) of section 370 of the Companies Act,1956. 9. The Companies has given interest free loan to a corporate body. As informed to us there is no stipulation regarding repayment of the same loan. The Company has also given interest free loan to employees who are regular in repaying the principle amount wherever stipulated. 10. 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 purchase of liquid petroleum gas, stores, and consumables, plant and machinery ,equipment and other assets and for sale of liquid petroleum gas and assets. 11. The Company has entered into transactions with a Company in which some of the directors and/or their relatives are interested for hiring vehicles by the Company aggregating to Rs 50,000/- or more. According to information and explanations given to us we are of the opinion that the rates at which the transactions are made are reasonable. 12. As explained to us the Company has a regular procedure for the determination of unserviceable or damaged stores and finished goods. 13. The Company has not accepted any deposits from the public within the provisions of section 58A of the Companies Act,1956 except a loan from a Co-operative Credit Society in respect of which the relevant rules of Companies (Acceptance of Society) Rules are not compiled with. 14. Maintenance of cost records has not been prescribed by the Central Government under section 209(1)(d) of the Companies Act,1956 during the year under review. 15. As explained the provisions of Provident Fund Act and Employees State Insurance Scheme are not applicable to the Company during the year under review. 16. According to the information and explanations given to us and the books of accounts and records examined by us except sales tax of Rs 4,09,879/-, there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom duty outstanding as at 31st March,1999 for the period exceeding six months from the date they became payable. 17. According to the information and explanations given to us no personal expenses of employees or directors have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice. 18. The Company is not a sick Industrial company within the meaning of section 3(1) (o) of the sick Industrial companies (Special Provisions) Act,1985. 19. In our opinion and having regard to the nature of business the Company has a reasonable system of recording receipts, issues and consumption of liquid petroleum gas, stores and components. For P.R.GANDHI & CO. Chartered Accountants P.R.GANDHI Partner PLACE: MUMBAI DATED: 25TH AUG,1999.