piyush steels ltd Auditors report

PIYUSH STEELS LTD. AUDITORS REPORT TO THE MEMBERS OF PIYUSH STEELS LIMITED We have audited the attached Balance Sheet of PIYUSH STEELS LIMITED as at 31 st March 1998 and also the profit and loss Account of the Company for the year ended on that annexed there to. We report as follows: 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, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us during the course of audit. we annex hereto a statement on the matters specified in paragraph and 5 of the said order to the extent applicable. 2. Further to our comments in the Annexure referred to in paragraph 1 above we state 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 our audit; b) In our opinion, proper books of accounts as required by law have been kept by the company, so for as appears from our examination of such books; c). The Balance Sheet and the profit and loss Accounts are in agreement with the books of account; d) Reference is invited regarding; i) Non compliance with the provision of the companies (Appointment and qualification of Secretary) Rules, 1958 ii) Non provision of Gratuity liability, the amount is unascertained. 3. In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet read with the schedules and notes to the Accounts, 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 31st March, 1998 and ii) In the case of the Profit and Loss Account, of the profit, of the company for the year ended on that date FOR AKSHAY SHAH & CO CHARTERED ACCOUNTANTS AKSHAY SHAH PARTNER Date : 25th August, 1998 Place : Vadodara ANNEXURE TO THE AUDITORS REPORT ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR AUDITORS REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH,1998 OF PIYUSH STEELS LIMITED. 1. The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets. As informed to us physical verification of Fixed Assets has been carried out by the Management and no material discrepancies were noticed on such verification. 2 None of the fixed assets have been revalued during the year. 3. The company has not taken any Secured or Unsecured Loans from companies, firms or other parties listed in the register maintained U/s 301 of the Companies Act 1956. We are informed that there are no companies covered by the definition of companies under the same Management within the meaning of section 370(1 B) of the companies Act,1956. 4. The Company has not granted any loans,secured or unsecured to a companies, firms or other parties listed in the register maintained under section 301 of the Companies Act,1956. We are informed that there are no companies under the same management as defined in section 370(1 B) of the Companies Act,1956. 5. In respect of the loans or advances including advances for fixed assets given by the company: (i) Inter corporate deposits of Rs.2,53,397 has not been recovered, against which legal step have been taken for the recovery. (ii) Interest free advances to employee have been recovered regularly. (iii) In respect of other advances in the nature of loans & advances there are no stipulations as to interest rate and re-payment. (iv) We are unable to express our opinion regarding the recoverability or purpose in respect of other advances including advance for Capital Assets. 6. On the basis of test checks carried out by us and according to the information and explanations given to us, we are of the opinion that internal control procedures relating to purchase of trading goods components/Plant and Machinery/Equipment and other assets and or for sale of goods are commensurate with the size of the company and nature of the business. 7. During the year there were no purchases of goods materials and sale of goods, materials or services made in pursuance of contracts or arrangements entered in the register maintained u/s 301 of the Companies Act,1956 as aggregating during the year to Rs.50,000 or more. 8. The company has not accepted any deposit from the public attracting the provisions of section 58 A of the Companies Act,1956 and the Rules framed thereunder. 9. In our opinion, the company has an internal Audit System, carried out by the companys own staff, commensurate with the size and nature of its business. 10. As informed to us, the provisions of the Provident Fund Act and Employee State Insurance Scheme are not applicable to the company. 11. To the best of our knowledge and beliefs and according to the informations and explanations given to us there were no undisputed amount of Income Tax,Wealth Tax Sales Tax, Custom duty & Excise duty, except Tax deduction at source Rs.2,61,918 have remained outstanding as on 31 st March 1998 for a period of more than six months from the date they become payable 12. According to the information and explanations given to us and on the basis of the records of the company examined by us, we are of the opinion that no personal expenses have been charged to the accounts of the company except those which are payable in accordance with the normally accepted business practices. 13. The other provisions of the Manufacturing and other companies into (Auditors Report) order, 1998 are not applicable as the company has not commenced manufacturing operations. 14. In respect of the companys trading activity, we are informed that there are no stocks Iying at the year end. FOR AKSHAY SHAH & CO. CHARTERED ACCOUNTANTS AKSHAY SHAH PARTNER Date : 25th August,1998 Place : Vadodara.