sun polytron industries ltd Auditors report

SUN POLYTRON INDUSTRIES LIMITED ANNUAL REPORT 2002-2003 AUDITORS REPORT To, The Members of SUN POLYTRON INDUSTRIES LIMITED We have audited the attached Balance Sheet of SUN POLYTRON INDUSTRIES LIMITED, as at 31st March, 2003 and 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. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. 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 principals 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 Manufacturer and Other companies (Auditors Report) Order, 1988 issued by the company Law Board in terms of Section 227 (4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company, as we considered appropriate and the information and explanations given to us during the Bourse of our audit, we enclose the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. 2. Further to our comments an the annexure referred to in paragraph 1 above, we state as follows: a) We have obtained all 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 law, have kept by the Company, so far as appears from our examination of such books. c) The Balance Sheet and the Profit and Loss Account referred to in this report are in agreement with the books of accounts. d) In our opinion the Balance Sheet and the Profit and Loss Account read with and subject to Notes to the Accounts, comply with the Manditory Accounting Standards referred to Section 211 (3C) of the companies Act, 1956. e) On the basis of written representations received from the directors, as on 31st march, 2003 and taken on record by the Board of Directors, we report that in our opinion none of the Directors are disqualified as on 31st March, 2003 from being appointed as Directors in terms of section 274 (1) (g) 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 balance sheet and profit and loss account read together with significant Accounting Policies and subject to Notes to the Accounts, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view: (i) In so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2003, and (ii) 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 Rohit Chandan & Co. Chartered Accountants Mumbai Rohit Chandan Dated: 8th day of September, 2003 Proprietor ANNEXURE TO THE AUDITORS REPORT Re: SUN POLYTRON INDUSTRIES LIMITED Referred to in paragraph 1 of our report of even Date for the Twelve Months period ended on 31st march, 2003. 1. The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets on the basis of information available. According to the information and explanations given to us, most of 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 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, the Management at regular intervals during the said year has physically verified Stores, Spare Parts and Raw Materials. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of the business. 4. In our opinion and according to the information and explanations given to us, the procedure for physical verification of Stock followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business. 5. As explained to us, there were on material discrepancies noticed on physical verification of the Stock of raw materials, stores & spares and finished goods having regard to the size of the operations of the Company. 6. On the basis of our examination of stock records and other records, we are of the opinion that the valuation of Stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding Year. 7. According to the information and explanations given to us, no Loans, secured or unsecured, have been taken from companies, firms or other parties listed in the register maintained under section 301 of the companies Act, 1956 or from the companies under the same management within the meaning of sub Section (1B) of Section 370 of the Companies. Act, 1956,except interest free unsecured loan taken from a Director, the terms and condition of which in our opinion are not prima facie prejudicial to the interest of the Company. 8. According to the information and explanations given to us, no Loans, secured or unsecured, have been taken from companies, firms or other parties listed in the register maintained under section 301 of the companies Act, 1956 or from the companies under the same management within the meaning of sub Section (1B) of Section 370 of the Companies. Act, 1956. 9. According to the information and explanations given to us, no Loans or Advance in the nature of Loans have been given by the Company. 10. In our opinion and according 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 in respect of the purchases of Stores, Raw Materials including Components, Plant and Machinery, Equipment and other Assets and for the sale of goods. 11. In our opinion and according to the information and explanations given to us, the transaction for Purchases of Goods and Material and Sales of Goods, Materials and Services, made in pursuance of contracts or arrangement entered in the Register maintained under Section 301 of the Companies Act, 1956, as aggregating during the Year to Rs. 50,000/- or more in respect of each party, have been made at prices which are reasonable having regard to prevailing market prices, for such goods, materials or services or the prices at which transactions for similar goods, materials or services have been made with other parties. 12. According to the information and explanation given to us, no unserviceable or damaged Stores, Raw Materials or Finished Goods have been determined by the Company during the year. 13. According to the information and explanations given to us, the Company has not accepted any deposits from the public during year. 14. In our opinion and according the information and explanations given to us, reasonable records have been maintained by the Company for the sale of Scraps. However, the Company has extracted no realizable Byproduct during the Year. 15. In our opinion and according the information and explanations given to us, the Company has reasonable Internal Audit System commensurate with the size Company and the nature of its Business. 16. We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for the maintenance of the Cost Records under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. 17. According to the records of the Company, Provident Fund and Employee State Insurance dues have generally been regularly deposited during the year with the appropriate authorities. 18. According to the records of the Company, no undisputed amount payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty were outstanding as at 31st March 2003 for a period of more than six month from the date they become payable. 19. According to the information and explanations given to us, no personal expenses of employee or directors have been charged to 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 within the meaning of Clause (o) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions)Act, 1985. 21. According to the information and explanations given to us, on Damaged Goods have been determined by the Company in the case of goods purchased for resale during the Year. 22. According to the information and explanations given to us, the Company has reasonable system of recording, issue and consumption of Materials and Stores and allocating Material consumed to the relative jobs, if any, commensurate with its size and nature of its business. 23. According to the information and explanations given to us, the system of allocating man-hours utilized to the relative jobs, if any, is being strengthened by the Company to make it commensurate with its size and nature of its business. 24. According to the information and explanations given to us, there is a reasonable system of authorization at proper levels and there is an adequate system of internal control commensurate with the size of the Company and the nature of its Business, on issue of Store. However, such system is being strengthened for allocation of Stores and Labour to the relative jobs, if any. For Rohit Chandan & Co. Chartered Accountants Mumbai Rohit Chandan Dated: 8th day of September, 2003 Proprietor