regent chemicals ltd Auditors report

REGENT CHEMICALS LIMITED ANNUAL REPORT 2002-2003 AUDITORS REPORT TO THE MEMBERS OF REGENT CHEMICALS LIMITED We have audited the Balance Sheet of M/s REAGENT CHEMICALS LIMITED as at 31st March 2003 and Profit & Loss account of the Company for the year ended on that date both annexed herewith. These financial statements are the responsibility of the Companys management. Our responsibility is to express our opinion on these financial statements based on our audit. 1. We conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan & perform the audit to obtain reasonable assurance about whether the financial statements are free from any material misstatement. An audit includes, examining on a test basis evidence supporting the amounts and disclosures in the financial statements. An Audit also includes, assessing the accounting used and significant estimates made by the management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion. 2. As required by the Manufacturing & other Companies (Auditors Report) Order 1988 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956. we enclose in the Annexure a statement on the matters specified in the said order to the extent applicable and on the basis of such checks as we considered appropriate. 3. Further to our comments in the Annexure referred to in paragraph 2 above. 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 the law have been kept by the company so far as it appears from our examination of the same. c. The Balance Sheet and Profit & Loss Account dealt with by the report are in agreement with the books of accounts. d. In our opinion, the Balance Sheet and Profit & Loss Account comply with Accounting Standards referred to in section 211(3C) of the Companies Act, 1956. e. On the basis of the written representation received from the Directors of the Company and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31.03.2003 from being appointed as a Director in terms of clause (g) of subsection (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 statement of account, read together with the notes appearing in Schedule 13 give the information required by the Companies Act, 1956 in the manner so required and give a true & fair view. i) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2003 and ii) in the case of the Profit and Loss Account of the loss of the Company for the year ended on that date. For B.G. Majithia & Co., Chartered Accountants Place : Mumbai, Dated : 30th August, 2003. ANNEXURE TO THE AUDITORS REPORT i) The Company was maintaining proper records to show full particulars including quantitative details & situation of its fixed assets upto 31st March, 1995. These records have been misplaced while shifting the registered office of the Company. Presently, the Company has prepared brief records of its Fixed Assets. The fixed assets have been physically verified by the management wherever possible at the close of the year as confirmed by the management. Physical discrepancies have been noticed during such verifications have not been accounted for during the year. ii) The fixed assets of the Company have not been revalued during the year. iii) As there is no stick of finished & other goods. Spare parts & raw materials of the company, the clause No iii, iv, v and vi of the manufacturing and other companies (Auditors Report) order, 1988 relating to verification procedure, discrepancies and valuation are not applicable. iv) The company has not taken loan from a Company listed in the register maintained under Section 301 of the Companies Act, 1956. v) The company has not granted any loan to companies firm or other parties listed in the register maintained under section 301 of the Companies Act, 1956. vi) There are no Loans and advances in the nature of interest free loans to employees as on 31.3.2003. vii) On the basis of checks carried out during the course of audit and as per explanations given to us, there is proper internal control procedure commensurate with the size of the company and the nature of its business. viii) There were no purchase of Raw materials, Stores or Components made from subsidiaries, firms or Companies or other parties listed in register maintained under section 301 of the Companies Act, 1956. ix) As per explanation given to us there were no serviceable and damaged stores, raw materials and finished goods determined by the company at the close of the year. x) The company has not accepted any deposits from the public to which provisions of section 58 (A) of the Companies Act, 1956 and rules made there under apply. xi) The company has not maintained reasonable records for the sale & disputed of scrap. The Company has no by-products. xii) The Company has internal audit system. However, in our opinion the same is to be improved upon to make it commensurate with the size and nature of the business of the Company. We are informed that the Central Government has not prescribed maintenance of cost records under section (1) of the Companies Act, 1956 for the products of the Company. xiv) According to the records of the Company, there is no Provident Fund dues and there is no employee state insurances dues during the year. xv) As per records of the company and according to the information and explanation given to us, there were no undisputed amounts payable in respect to Income tax, Wealth tax, Customs Duty & Excise Duty as at 31st March, 2003 except sales tax demand for Rs. 3,65,910 which are outstanding for the period more than six months from the date they became payable. xvi) In our opinion and according to the information and explanations given to us no personal expenses have been charged to revenue account. xvii) As explained and informed to us the Company is not covered by the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. xviii) There were no goods traded by the Company, as explained to us and there were no damaged goods. For N.G.Majithia & CO. Chartered Accountants N.G. Majithia Proprietor Place : Mumbai Dated : 30th August, 2003.