sarda information technology ltd Auditors report

SARDA INFORMATION TECHNOLOGY LIMITED ANNUAL REPORT 2001-2002 AUDITORS REPORT To, The Members We have audited the attached Balance Sheet of SARDA INFORMATION TECHNOLOGY LIMITED, as at 31" March, 2002 and also the Profit and 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 auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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 principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1) As required by the Manufacturing and other Companies (Auditors Report) Order, 1988, issued by the Central Government Of India in terms of Sub- Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure statement on the matters specified in paras 4 and 5 of the said Order. 2) Further to our Comments in Annexure referred to in paragraph 1 above: i) 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; ii) In our opinion, proper books of accounts, as required by law have been kept by the Company, so far as It appears from our-examination of these books; iii) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the books of account iv) In our opinion, SUBJECT TO NOTE No. 5, 10 AND 12 OF SCHEDULE -19, the Balance sheet and the Profit & Loss Account dealt with by this report comply with the accounting standards referred to in sub- section (3C) of section 211 of the Companies Act , 1956; v) On the basis of written representations received from the directors of the company, and taken on the record by the Board Of Directors we report that none of the director is disqualified as at 31" MARCH, 2002 from being appointed as a director in terms of clause (g) of sub section 274 of the Companies Act, 1956. vi) In our opinion and to the best of our information and according to the explanations given to us, the said Balance Sheet and Profit and Loss Account read together with the Significant Accounting Policies and other rotes thereon, SUBJECT TO NOTE No. I (b) OF SCHEDULE -19 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view (a) In so far as it relates to Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and (b) In so far as it relates to the Profit and Loss Account, of the Loss of the Company for the year ended on that date. For N. B. MUNDADA & CO. Chattered Accountants N. B. MUNDADA Place :- Ahmednagar Proprietor Date:- 06/5/2002. ANNEXTURE TO THE AUDITORS REPORT Referred to in paragraph 1 of our report of even date 1) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. According to the information and explanations given to us the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. No material discrepancies were noticed on such verification. 2) None of the fixed assets have been revalued during the year. 3) As explained to us, the stock of finished goods, raw materials, consumables, stores and spares and trading of cloth have been physically verified by the Management at reasonable intervals during the year. In our opinion, the frequency of such Verification is reasonable having regard to the size of the Company and the nature of its business. Production and consumption are taken as certified by the Management: 4) In our opinion and according to the information and explanations given to us, the procedures of physical verification of stock followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. 5) As explained to us, there were no material discrepancies noticed on physical verification to the stocks of raw materials, stores and spares and finished goods and trading of cloth having regard to the size of the operations of the Company. 6) The valuation of stock is fair and proper and is in accordance with the normally accepted accounting principles and is on same basis as in the preceding year. 7) The Company has not taken any loans, secured or unsecured from companies, firms or other parties listed in the register maintained under Sec. 301 of the Companies Act, 1956 or from the Companies under the same management within the meaning of Section 370 (1 B) of the Companies Act, 1956, where the rate of interest and other terms and conditions of such loans are prima facie prejudicial to the interest of the company. 8) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, or to Companies under same management within the meaning of section 370 (1B) of the companies Act 1956, where the rate of interest and other terms and condition of such loans are prima facie prejudicial to the interest of the company. 9) In respect of loans and advances given by the company, the patties have repaid the principal amounts and interest as stipulated, wherever stipulations have been made, or as rescheduled. 10) In our opinion and according to information and explanations given to us, there are adequate internal control, procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials, including consumable parts, plant and sale of goods. 11) In our opinion and according to the information and explanations given to us, the transaction of purchase of goods, material and service, made in pursuance of contracts or arrangements entered in the register maintained u/s 301 of the Companies Act, 1956 and aggregating during the year to RS. 50,000/- or more in respect of each party have been made to prices which are reasonable having regard to prevailing market prices as available with the Company for such goods, materials or services or transactions made with other parties. 12) According to the information and explanations given to us, the Company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods, adequate provision has been made in the accounts for the loss arising on the items so determined. 13) According to the information and explanations given to us, the Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 58A of the Companies Act, 1956 and rules made thereunder are not applicable. 14) In our opinion, reasonable records have been maintained by the company for the sale and disposal of realisable scrap. The Company has no by- products. 15) In our opinion, the internal audit system of the Company is commensurate with its size and nature of its business. 16) As informed to us; the Central Govt. has not prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 in respect of Companys products. 17) According to the records of the Company the provident fund and employees state insurance scheme dues were generally been regularly deposited during the year with appropriate authorities. 18) According to the information and explanations given to us, there are no undisputed amounts payable in the respect of Income Tax, Sales Tax, Customs Duty and Excise Duty, except custom duty Rs. 1133345/- & excise cess Rs. 217562/- were outstanding as on 310 March, 2002 for a period of more than six months from the date they become payable. 19) According to the information and explanations given to us, and records examined by us, no personal expenses have been charged to Revenue Accounts other than those payable under contractual obligations or in accordance with generally accepted business practice. 20) The Company has become a sick industrial unit within the meaning of clause (O) of Sub Section (I ) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. 21) In respect of trading activities, we are informed that there were no damaged goods during the year. For N. B. MUNDADA & CO. Chartered Accountants N.B. MUNDADA Place: Ahmednagar Proprietor Date :06/5/2002. CASH FLOW NOTES Previous years figures are shown in the bracket. AUDITORS CERTIFICATE We have examined the cash flow statement of Sarda information Technology Limited for the year ended 31" March 2002. The statement has been prepared by the company in accordance with the requirement of clause 32 of the listing agreement with the Mumbai, Pune, & Jaipur Stock Exchange and is based on and in agreement with the corresponding Profit & Loss Account and Balance Sheet of the company covered by our report as on 6th May, 2002. For N. B. MUNDADA & CO. Chartered Accountants Place: Ahmednagar Date : 06/05/2002. N. B. MUNDADA (Proprietor)