sanyo impex ltd Auditors report

SANYO IMPEX LIMITED ANNUAL REPORT 2001-2002 AUDITORS REPORT TO THE MEMBERS OF SANYO IMPEX LTD. We have audited the attached Balance Sheet of M/S SANYO IMPEX LIMITED., as at 31st March,2002 and also the Profit & Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with and standards generally accepted in India. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required, by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act;1958 (hereinafter referred to as the Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure reffered to in paragraph (1) above, we report 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 out audit; b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; c. The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account; d. In our opinion, the said Balance Sheet and the Profit and Loss Account, have been prepared in Compliance with the accounting standards as prescribed under the provisions of Section 211(3C) of the Act to the extent applicable; e. On the basis of written representations received from the Directors, as on 31st March,2002 and taken do record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March,2002 from being appointed as a Director of the Company M terms of Section 274(1)(g) of the Act; f. In our opinion and to the best of our information and according to the explanations given to us the said accounts read together with the Significant Accounting Policies and other notes as appearing in Schedule 18, in the manner so required and give a true and fair view in confirmity with the accounting principles generally accepted in India: (i) In the case of the Balance Sheet, of the state of the Companys affairs as at 31st March,2002; 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 J P S & COMPANY CHARTERED ACCOUNTANTS PLACE : NEW DELHI SANDEEP ARORA DATED : 02/09/02 PARTNER ANNEXURE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE, MEMBERS OF M/S SANYO IMPEX LIMITED ON THE ACCOUNT FOR THE YEAR ENDED 31st MARCH,2002. 1. The Company has been maintaining a fixed asset register giving quantitative particulars of assets, which is being updated by the company. We are informed that during the year most of the faced assets have been physically verified by the management and that no material discrepancies have been noticed on such verification. 2. None of the fixed assets have been revalued during the year. 3. The stocks of finished goods, Raw material has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable: 4. In our opinion, the procedure of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. 5. The discrepancies noticed on physical verification of stocks as compared to book records were not material in relation to the operation of the company and the same have been properly dealt with in the books of accounts. 6. In our opinion, the valuation of stocks is fair and proper and in accordance with the normally accepted accounting principles and is on the same basis as in the previous year. 7. The Company has not taken loans, secured or unsecured from Companies, Firms or other parties listed in the register maintained U/s 301 of the Companies Act,1956. 8. The Company, has not granted loans, secured or unsecured to Companies, Firms or other parties listed in the register maintained U/s 301 of the Companies Act, 1956. 9. The company has not given advances in the nature of loans to employees and other. 10. In our opinion and according to the information and explanations given to us there are adequate internal procedures commensurate with the size of the company and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other similar assets and for the sale of goods. 11. According to the information and explanations given to us, there are no transactions of purchase and sales of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs.50,000/ - or more. 12. As explained to us, the company has a regular procedure for the determination of unserviceable or damaged Purchases goods, raw materials and finished goods. No such items have been determined by the company during the year. 13. The company has not accepted any deposits from the public. 14 In our opinion, and as explained to us the company has not any disposable scrap and by-products. 15. In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business. 16. The Central Government has not prescribed the maintenance of cost records U/s 209 (1) (d) of the Companies Act, 1956, for any of the companys product. 17. As explained to us the provision of provident fund and Employees State Insurance are not applicable to the Company. 18. According to the information and explanations given to us, there are no undisputed amount payable in respect of Wealth Tax, Sales Tax, Custom Duty and Excise Duty outstanding for a period of more than six months. 19. During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices, we have neither come across any personal expenses have been charged to Profit and Loss Account nor we have been informed of such a case by the Management. 20. The Company is not a Sick Industrial Company within the meaning of clause (O) of Section 3(1) of the Sick Industrial Companies (Special Provisions) Act 1985. 21. In respect of the Companys trading activity, we are informed that there are no damaged stocks. For J P S & COMPANY CHARTERED ACCOUNTANTS PLACE: NEW DELHI SANDEEP ARORA DATED: 02/09/02 PARTNER