patels widecom india ltd Auditors report

1995 PATELS WIDECOM (INDIA) LIMITED AUDITORS REPORT We have audited the attached Balance Sheet of PATELS WIDECOM (INDIA) LIMITED, as at 30th June, 1995 and also the annexed profit & loss Account for the period of 15 months ended on that date and report that: 1. Fixed Assets: a) All the major fixed assets were stated to be in the possession of the previous management or has been classified as machineries in transit (please refer note - to account). Hence no physical verification has been conducted by the auditors. b) Present management is of the opinion that part of Fixed Assets shown as the opening balance (stated to be in possession of previous management) may not have been purchased at all. No provisions has been made against such items. Amount unascertained pending inquiry/investigation. 2. Goods-in-Transit Rs. 16659800 (a) These shipments consist of imported raw-material and electronic components have been stated to be lying at Bombay Port since 1993. (b) No provision in the accounts have been made on account of any demurrage etc. to be payable on such consignments or on account of their being unserviceable or damaged during this transit period. (c) Such components / raw materials have not been physically verified by the Auditors or by management. 3. Preoperative Expenditure: (a) Interest received on fixed deposits of the company has been deducted from the pre-operative expenditure and no provision for Income tax has been made. (b) It includes Rs. 333705 being the provision against bad and doubtful debts and advances which in the opinion of the management are doubtful of realization. (c) Company has started its production on the basis of and from sharing the premises, work force, stores and the equipments and machineries of the associate companies at NEPZ w.e.f. May 15, 1995. Expenditure before that period have been included in the pre-operative expenditure. (d) Common Expenditure incurred on components /stores consumed have been booked into various Companies as decided by the Managing Director. 4. Subject to our comments above: 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 the 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 referred to in this report are in agreement with the books of accounts. d) Subject to the foregoing and read with Note no. 7 : Relating to non reconciliation of refund account. Note no. 8 : Relating to issue of shares and machinery in-transit. Note no. 9 : Relating to capital work in progress. Note no. 14 : Relating to advance recoverable from ex directors. Note no. 15 : Relating to advances to associate companies. Note no. 16 : Relating to goods in transit lying at custom ports. Note no. 17 : Relating to pre-operative expenditure and other notes and accounting policies to the accounts, in our opinion and to the best of our information and according to explanations given to us, the said Balance Sheet and Profit & Loss Account 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 the Balance Sheet of the state of affairs of the company as at 30th June, 1995 and ii) In the case of the Profit & Loss Account of the net deficit incurred during the period ended on that date. For N. C. Maheshwari & Co. Chartered Accountants N. C. Maheshwari, F.C.A,A.C.S. Partner Place : New Delhi Date : 30th November, 1995.