spl technochem ltd Auditors report

ANNUAL REPORT 1999 SHETH PLASTOMERS LIMITED AUDITORS REPORT To The Members, We have audited the Balance Sheet of SHETH PLASTOMERS LIMITED as at 30th June,1999 and the Profit and loss Account of the said Company for the year ended on that date annexed thereto. 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. We enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 to the extent applicable of the said order. 2. Further to our comments in the Annexure referred to 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 purpose of our audit. b) In our opinion proper books of account as required by law have been kept by the Company as it appears from our examination of such books. c) The Balance Sheet and Profit & loss Account referred to in this report are in agreement with the books of account. d) In our opinion the Profit & loss Account and Balance Sheet comply with the requirement of the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act,1956. e) In our opinion and to the best of our information and according to the explanations given to us Balance Sheet and Profit and Loss Account read together with the Notes thereon 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 Balance Sheet of the state of affairs of the Company as at 31st March,1999. ii) In the case of Profit and loss Account of the Profit of the Company for the year ended on that date. For SINGRODIA GOYAL & CO. CHARTERED ACCOUNTANTS SURESH MUKARKA (PARTNER) PLACE: MUMBAI DATE : NOVEMBER 3,1999. ANNEXURE TO THE AUDITORS REPORT ANNEXURE referred to in Paragraph 1 of our report of even date on the accounts of SHETH PLASTOMERS LIMITED for the year ended 30th June,1999. 1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. These fixed assets of the Company have been physically verified by the management at reasonable intervals and no material discrepancies between the book records and the physical assets have been noticed. 2. None of the fixed assets have been revalued during the year. 3. As explained to us the stock of finished goods work-in-progress, stores, spares parts and raw materials have been physically verified by the management during the year. In our opinion the frequency of the verification is reasonable. 4. In our opinion and according to the information and explanations given to us, the procedures of physical verifications of stocks followed by the management were found reasonable and adequate in relation to the size of the Company and the nature of its business. 5. As explained to us, discrepancies noted on verification between the physical stocks and the book records were not materials in relation to the operations of the Company and the same have been properly dealt with in the books of accounts. 6. In our opinion the valuation of stock is fair and proper in accordance with the normally accepted principles. The basis of valuation of stock as in the preceeding year. 7. The Company has taken interest free secured loan from Companies, firms and other parties listed in the register maintained under section 301 of the Companies Act,1956. However there are no loan from Companies under the same management as defined under sub-section (1B) of section 370 of the Companies Act,1956. The rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the Company. 8. The Company has not granted any loans, secured or unsecured to the Companies, firms and other parties listed in the register maintained under Section 301 or to the Companies under the same management as defined under Section 370 (1B) of the Companies Act,1956 during the year. However advances to Directors are carried forward from earlier years. The rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the Company. 9. The principal amount and interest whereever applicable thereon on respect of loans and /or advances in the nature of loan given to the employees and bodies corporate are generally being recovered as stipulated. 10. In our opinion, there is an adequate internal control procedure commensurate with the size of the company and the nature of its business for purchase of raw material, stores, components,plant and machinery, equipment and other similar assets and for the sale of goods. 11. In our opinion and according to the information and explanations given to us the transactions of purchase and sale of goods and materials made in pursuance of contract or arrangement entered in the Register maintained under Section 301 of the Companies Act,1956 and aggregating to Rs 50,000/- (Rupees Fifty Thousands Only) or more in respect of each party have been made at prices which are reasonable and fair having regard to prevailing market prices for such goods and materials. 12. As explained to us the Company has not determined any unserviceable or damaged stores, raw material and finished goods and hence no provisions have been made in the accounts. 13. The Company has not accepted deposits from public and therefore the directives issued by the Reserve Bank of India and provisions of Section 58A of the Companies Act,1956 are not applicable. 14. In our opinion reasonable records have been maintained by the Company for the sale and disposal of realisable scrap, where applicable and significant. As explained to us the Company has no by products. 15. Company does not have formal Internal Audit Departments as such but its financial and internal checks ensures proper recording of financial transactions. 16. We are informed by the Company that the Central Department as such has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act,1956 for the products of the Company. 17. As explained to us provisions of Provident Fund Act and Employees State Insurance Act,1948 are not applicable to the Company. 18. There was no amount outstanding as on 30th June,1999 in respect of undisputed income-tax, customs duty and excise duty which were due for more than six months from the date they became payable. 19. On the basis of examination of (i) the books of account (ii) other records(iii) the explanations given to us our inquiries, no personal expenses, other than expenses under service contract obligations with the Companys employees and/or accepted business practices have been charged ot revenue. 20. The Company is not a Sick Industrial company within the meaning of Section 3(1) (O) of the Sick Industrial Companies (Special Provisions) Act,1985. 21. In respect of a trading activities, we are informed that the Company does not have damaged goods lying with it at the end of the year. Therefore no provisions for any loss is required to be made in the accounts. For SINGRODIA GOYAL & CO. CHARTERED ACCOUNTANTS SURESH MURARKA (PARTNER) PLACE: MUMBAI DATE : NOVEMBER 3,1999.