shivgarh resorts ltd Auditors report

SHIVGARH RESORTS LIMITED AUDITORS` REPORT The Share holders, Shivgarh Resorts Limited Lucknow We have audited the attached Balance Sheet of M/S SIIVGARH RESORTS LIMITED, LUCKNOW, as at 315 march, 1998 and also the Profit & Loss Account for the year ended on that date annexed thereto and report that: 1. As required by the Manufacturing and Other Companies (Auditors Reports) Order, 1988, issued by the Company Law Board in terms of Section 227(4-A) of the Companies Act, 1956, we enclose in the annexure hereto a statement on the matters specified in paragraph 4 & 5 of the said order. 2. Further to our comments in the Annexure referred to in the preceeding para. b) 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. c) In our opinion, proper books of accounts as required by Law have been kept by the Company so far as appears from our examination of the books. d) The Balance Sheet and Profit & Loss Account dealt with this report are in agreement with the books of accounts. e) In our opinion and to he best of our information and according to the explanations given to us, the said accounts subject to read with notes there on give the information required by the Companies Act. 1956, in the manner so required and give a true and fair view: in the case of the Balance Sheet, of the state of Affairs of the Company as at 31st March, 1998 and in the case of the Profit & Loss Account, of the profit of the company for the year ended on that date. FOR S.TULI & CO. CHARTERED ACCOUNTANTS (P.K.UPPAL) PARTNER PLACE: LUCKNOW DATE : 03.09.199 ANNEXURE TO THE AUDITORS REPORT Annexure referred to in paragraph I of the Auditors Report to the Shareholders of M/S SHIVGARH RESORTS LIMITED, LUCKNOW on the accounts for the year ended 31g March,1998. 1. The Company has maintained proper records showing full particulars including quantitative details and location of the f xed assets. Fixed Assets have been physically verified by the management at reasonable intervals during the year. As explained to us, no discrepancies were noticed on such verification as compared to book records. 2. None of the fixed assets have been revalued during the year. 3. The Stock of stores, spare parts and raw materials etc. lying at its location have been physically verified by the management at reasonable intervals. 4. In our opinion and according to the information and explanations given to us, the procedures followed by the management for physical verification of stocks are reasonable and adequate in relation to the size of the company and nature of its business. 5. The discrepancies noticed on physical verification of stocks as compared to the books and records were not significant and the same have been properly dealt with in the books of account. 6. In our opinion, the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year. 7. On the basis of our examination of the records, we are of the opinion that the company has not taken any loans from Companies, firms or other parties listed in the register maintained under section 301 and 370(1-B)of the Company Act, 1956, where the terms and conditions were prima facie prejudicial to the interest of the company. 8. The company has not granted any loans to Companies, firms, and other parties listed in the register maintained under section 301 and 370(1-B) of the Companies Act, 1956, where the terms and conditions were prima facie prejudicial to the interest of the company. 9. The parties (including employees) to whom loans are advances in the nature of loans have been given by the company are not repaying the principal amounts in few cases, as stipulated and are also not regular in the payment of interest, wherever applicable. 10. In our opinion and according to the 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 purchases of stores, raw materials (including components), plant and machinery, equipments and other assets, and for the sale of goods/services. 11. In our opinion and according to information and explanations given to us, the company has not purchased any goods & materials and sold any goods & materials exceeding Rs. 50,000/- in value for each type thereof during the year from / to firms, companies or other parties in which directors are interested as listed in the register maintained Under Section 301 of the Companies Act, 1956, Further the company has sold the service exceeding Rs. S0,000/- during the year to company in which directors are interested U/S 301 and the prices charged have been reasonable for the services exclusively provided to the company, made in pursuance of contracts or arrangements entered with the Company listed in the register maintained under section 301 of the Companies Act,1956. 12. As explained to us, the company has a regular procedures for the determination of the unserviceable or damaged stores, and raw materials etc. Adequate provision has been made in the books of accounts in respect of the items so determined. 13. As explained to us, the companys operations do not generate any by products and scrap. 14. As informed to us the company has not accepted deposits from the public to which the provisions of Section 58-A of the Companies Act, 1956, and the rules made thereunder would apply. 15. In our opinion, the company does not have an effective internal Audit system commensurate with its size and nature of its business and it need to be strengthen . 16. We are informed that maintenance of cost records has not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 in respect of the companys products / activities. 17. According to the records of the company, the company was not regular in timely depositing the Provident Fund and Employees State Insurance dues with the appropriate Authorities. 18. As informed to us, there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty as at 31 st March, 1998, which are outstanding for a period of more than six months from the date they become payable. 19. In our opinion and according to the information and explanations given to us, personal expenses have not been charged to the revenue account other than those payable under contractual obligations or in accordance with generally accepted business practices. 20. The company is not a sick industrial company with in the meaning of clauses (0) of sub section (I) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. 21. In respect of the services and other activities, the company has reasonable system of recording receipts issues and consumption of materials and stores commensurate with the size and nature of its business and the system provides for a reasonable allocation of materials man-hours consumed to the relatives jobs. In our opinion and according to the information and explanations given toG us, there is reasonable system of authorization at proper levels with necessary controls on the issue of stores and allocation of stores and labour to jobs commensurate with size and nature of its business. 22. As explained to us in case of trading activity, there were no damaged goods in respect of goods dealt in by the company. for S. TULI & CO. CHARTERED ACCOUNTANTS (P.K.UPPAL) PARTNER PLACE: LUCKNOW DATE : 03.09.1998