jaimata industries ltd Auditors report

JAI MATA INDUSTRIES LIMITED ANNUAL REPORT 1998-99 AUDITORS REPORT We have audited the attached Balance Sheet of Jai Mata Industries Limited as on March 31,1999 and Profit and Loss Account annexed thereto for the year ended on that date which are in agreement with the books of account maintained by the Company. We have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion proper books of account as required by law have been maintained by the Company so far as appears from our examination of those books. In our opinion books of account have been maintained in accordance with accounting standards prescribed by Institute of Chartered Accountant of India. In our opinion and according to the information and explanation given to us, the accounts, read together with notes and accounting policies thereto, give the information required by the Companies Act, 1956 in the manner so required and gives a true and fair view. In case of the Balance Sheet of the state of affairs of the Company as at March 31, 1999; and In case of the Profit and Loss Account, of the loss of the Company for the year ended on that date. In accordance with 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 hereby give our comments on matters specified in paragraph 4 of the said order: i) The Company is maintaining proper records showing full particulars including quantitative details and situation of its fixed assets. The fixed assets were physically verified by the management at reasonable intervals during the year and no discrepancy was noticed on such verification as compared to book records. ii) The fixed assets were not revalued during the year. iii) The inventory of finished goods, stores, spare parts and raw materials were physically verified by the management at reasonable intervals during the year. iv) In our opinion, the procedures for physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of the business. v) In accordance with the information and explanation given to us, no material discrepancy was noticed on such physical verification of stock as compared to the book records. vi) In our opinion and according to the information and explanation given to us, the valuation of inventories is fair and proper and is in accordance with the normally accepted accounting principles. The valuation of stocks is on the same basis as in the previous year. vii) According to the information and explanations given to us, the Company has taken interest free unsecured loans from a Company listed in the register maintained under Section 301 of the Companies Act, 1956 and also also under the same management as defined under sub-section (IB) of section 370 of the Companies Act,1956, the terms and conditions whereof are prima facie not prejudicial to the interest of the Company. The Company has not taken any loans from any firm or other party. viii) The company has not granted any loans to the 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 sub section (IB) of Section 370 of the Companies Act, 1956. ix) Interest free loans or advances in the nature of loans have been given by the Company to its employees only, who are repaying the principle amount as stipulated. x) In our opinion and according to the information and explanations given to us, there is an adequate internal control procedure commensurate with the size of the Company and nature of its business for the purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for sale of goods. xi) According to the information and explanations given to us, there are no transactions of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs 50,000.00 or more in respect of each party. xii) As explained to us, the Company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. xiii) The Company has not accepted any deposits from the public. xiv) The Company has maintained reasonable records for the sale and disposal of saleable scrap and there are no by product as informed to us. xv) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. xvi) On the basis of records produced, we are of the opinion that prima facie, the cost records and accounts prescribed by the Central Government under Section 209(1 ) (d) of the Companies Act, 1956 have been maintained. However, we are not required to and have not carried out any detailed examination of such accounts and records. xvii) The Company has been regularly depositing the dues under Employees Provident Fund Act, 1952, with the appropriate authorities except for some delays. Employees State Insurance Act, 1948, is not applicable to the company. xviii) 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 a March 31,1999, for a period of more than six months from the date, they became payable. xix) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices, we have not come across any personal expenses which have been charged to the Profit and Loss Account nor have we been informed by the management of any such expenditure having been charged to Profit and Loss Account. xx) 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. xxi) In respect of trading activities of the Company, we are informed that there are no damaged goods. EC-13, Inderpuri B. Bhushan & Co. New Delhi Chartered Accountants By the hand of Date : May 31, 1999 Kamal Ahluwalia Partner