ace laboratories ltd share price Auditors report

ACE LABORATORIES LIMITED. AUDITORS REPORT. TO THE MEMBERS OF ACE LABORATORIES LIMITED We have audited the attached Balance Sheet of ACE LABORATORIES LIMITED as on June 30, 1998, and also the annexed Profit & Loss Account for the year ended on that date and report that :- 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 give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 2. Subject to and in terms of our comments in the Annexure referred to in paragraph 1 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 maintained 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 accounts produced before us. d) In our opinion and to the best of our information and according to the explanations given to us, the said Balance Sheet and Profit & Loss Account, together with other notes appearing in Schedule (19) gives the information required by the Companies Act, 1956, in the manner so required & give a true and fair view :- i) in the case of Balance Sheet, of the state of Affairs of the Company as at June 30,1998. ii) in the case of Profit & Loss Account, of the PROFIT for the year ended on that date. for GYAN CHANDRA & CO., Chartered Accountants Place : New Delhi (G.C. Mehrotra) Dated : 28th July, 1998 Partner ANNEXURE TO THE AUDITORS REPORT [REFER TO PARAGRAPH 1 OF OUR REPORT OF EVEN DATE:] i. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The assets have been physically verified by the management during the year as per a programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its asset. No material discrepancies were noticed on verification. ii. None of the fixed assets of the company have been revalued during the year. iii. As per information and explanation given to us, the stock of Finished Goods, Raw Materials, Packing Materials and other stores have been physically verified by the Management at reasonable intervals during the year. The stocks in possession of the third parties have been verified by the Management with reference to documents obtained from them. The company is yet to introduce perpetual system with necessary documentation. iv. The procedures followed by the Management for such physical verification in our opinion, are reasonable and adequate in relation to the size of the company and the nature of its business. v. According to explanation given to us, the discrepancies on the verification between physical stocks and the book records were not material in relation to the operation of the Company and the same have been properly dealt within the books of account. vi. In our opinion, the valuation of stock is fair and proper in accordance with normally accepted accounting principle and is on the same basis as in the previous year. vii. The company has not taken Unsecured Loans from Companies, firms or other parties listed in the register maintained under Section 301 of the companies Act, 1956 and/or from the Companies under the same management as defined under Section 370 (1B) of the Companies Act, 1956. viii. The Company has not granted any loans,secured or unsecured to companies,firms or other parties listed, in the register maintained under Section 301 and 370(1B) of the companies Act, 1956. ix. Loans and/or Advances in the nature of interest free given by the company to its employees are being repaid as stipulated. x. In our opinion and according to the information and explanations given to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of Raw Materials, Packing Materials and other stores, Plant & Machinery, equipment and other assets and with regard to sale of goods. xi. In our opinion and on the basis of test checking and as per explanation given to us, the transaction of purchased goods and materials and sale of goods, materials and services in course of the business activities aggregating during the year of Rs.50,000/- or more in value of each party entered in the register maintained under Section 301 of the companies Act, 1956 have been made on the prices which appears to be reasonable as compared to the prices or services on similar items supplied by the other parties. xii. As explained to us, the Company has a regular procedure for determination of unserviceable or damaged stores and spares, Raw Materials and finished goods and an adequate provision has been made in the accounts for the loss arising on the items so determined. xiii. In the case of Public deposits, the directions issued by the Reserve Bank of India and the provisions of Section 58A of the Companies Act, 1956 and the applicable rules framed there under has been complied with. xiv. As explained to us, the Company has no by-products and the Companys operation do not generate any significant realisable scraps. xv. In our opinion the Company has an internal audit system which required to further strengthen to commensurate with its present size and nature of its business. xvi. We have broadly reviewed the accounts and records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of Companies Act, 1956, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records of the Company with a view to determine whether they are accurate or complete. xvii. According to the records, the Company is regularly depositing `Provident Fund and Employees State insurance dues with Appropriate Authority. xviii. According to information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Customs Duty and Excise Duty, were outstanding as on June 30, 1998, for period of more than six months from the date they became payable. xix. In our opinion and according to the information and explanations given to us, no personal expenses of employees or Directors have been charged to Revenue Account, other than those payable under the contractual obligations or in accordance with generally accepted business practices. xx. The Company is not a Sick Industrial Company within the meaning of Clause (O) of Sub-Section (1) of Section 3 of Sick Industrial Companies [Special Provisions] Act, 1985. xxi. In respect of trading activities of the company, there was no damaged goods during the year for GYAN CHANDRA & CO. Chartered Accountants Place : New Delhi (G. C. Mehrotra) Dated : 28th July, 1998. Partner