viral syntex ltd Auditors report

ANNUAL REPORT FOR THE YEAR 1998-99 VIRAL SYNTEX LIMITED To, The Members of VIRAL SYNTEX LIMITED AUDITORS REPORT We have audited the Balance Sheet of M/s. VIRAL SYNTEX LIMITED as at 31st March, 1999 and also the Profit & Loss Account of the Company for the year ended on that date and report that: 1. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1998 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956 we give in the Annexure hereto a statement on the matters specified in Paragraphs 4 and 5 of the said Order. 2. Further to our comments in the Annexure Referred to in Paragraph I above we state 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 so far as it appears from our examination of those books. (c) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account. (d) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with other notes thereon, give the information required by Companies Act, 1956 in the manner so required and gives 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 & Loss Account, of the Profit for the year ended on that date. For GANESH TOSHNIWAL Chartered Accountants Sd/- PROPRIETOR Place: Mumbai Dated: 01.09.99 Annexure to Auditors Report Referred to in paragraph 1 of our report of even date. 1. We have been informed by the management that the proper records showing full particulars including quantitative details and situation of fixed assets have been maintained. As explained to us most of the assets have been physically verified by the management during the year. Having regard to the size of the operations and on the basis of explanations received, in our opinion, no material discrepancies have been noticed. 2. None of the Fixed Assets have been revalued during the year. 3. The stocks of finished goods, stores, spare parts and raw materials have been physically verified during the year, by the management. In our opinion the frequency of verification is reasonable having regard to the size of the company and the nature of its business. 4. In our opinion and according to the information and explanation given to us the procedures of verification of stocks followed by the management are generally reasonable and adequate in relation to the size of the company and the nature of its business. 5. As explained to us the discrepancies noticed on verification between the physical stocks and book records were not material, in relation to size and nature of operations of company and same have been properly dealt with in the books of accounts. 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 preceding year. 7. In our opinion, the rate of interest and terms and conditions on which loans have been obtained from Companies, Firms or other parties listed in the Register maintained under Section 301 and 370(1-C) of the Companies Act, 1956, wherever applicable, are not prima-facie prejudicial to the interest, of the Company. 8. The company has not granted any secured or unsecured loans to the companies or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 and to the companies under same management as defined under Section 370 (13) of the said Act. 9. In respect of loans and advances in the nature of loans given by the Company, repayment of principal and interest have been recovered as stipulated 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 the purchase of raw materials, components, stores and spare parts, plant and machinery, equipment, other assets and/or the sale of goods. 11. In our opinion and according to the information and explanations given to us the transaction of purchase of goods and materials and sale of goods, materials and services in pursuance of contracts or arrangements entered in the Registers maintained under Section 301 of the Companies Act, 1956 aggregating to Rs.50,000/- or more during the period 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. 12. As explained to us, the company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods and adequate provisions have been made in accounts for the loss arising in the items so determined. 13. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public. 14. In our opinion reasonable records have been maintained by the Company for the sale and disposal of scrap wherever applicable and significant and there are no by-products. 15. We have been informed by the company that efforts are made to develop internal audit system commensurate with its size and nature of business. 16. We are informed by the management that, the Central Government has not prescribed maintenance of cost records by the company under Section 209(1) (d) of the Companies Act, 1956 for any of the products. 17. According to the information and explanation given to us and according to the records of the company, Provident Fund dues and Employees State Insurance dues have generally not been regularly deposited during the period with appropriate authority. 18. There is no undisputed amounts payable in respect of Income Tax, Sales Tax, Custom Duty and Excise Duty outstanding as at 31st March, 1999 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, no personal expenses have been charged to revenue account. 20. We have relied upon the certificate given by the Management that, there is no Legal case pending against the Company. 21. The Company is not a Sick Industrial Company within the meaning of clause (O) of Sub-Section (I ) of Section 3 of the Sick Industrial Companies (Special Provisions), 1985. For GANESH TOSHNIWAL Chartered Accountants sd/- PROPRIETOR Place: Mumbai Dated: 01.09.99