amison foods ltd Auditors report

AMISON FOODS LIMITED ANNUAL REPORT 2000-2001 AUDITORS REPORT TO THE MEMBERS We have audited the Balance Sheet of M/s. AMISON FOODS LIMITED as at 31st March, 2001 and the Profit and Loss Account of the said Company for the year ended on that date, both attached hereto and report that: 1. in our opinion and to the best of our information and according to the explanations given to us, and subject to clause (vi) of the Manufacturing and Other Companies (Auditors Report) Order, 1988, the said accounts read 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:- a) In the case of the Balance Sheet, of the State of affairs of the Company as at 31st March, 2001 and b) In the case of Profit & Loss Account, of the Loss of the Company for the year ended on that date. 2. 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. 3. In our opinion, proper books of accounts as required by the Companies Act, 1956, have been kept by the Company so far as it appears from our examination of those books. 4. The Balance Sheet and Profit and Loss Account are in agreement with the books of account, and comply with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable. 5. On the basis of the written representations received from the directors of the Company as on 31st March 2001, and taken on record by the Board of Directors, we report that none of the directors is disqualified from being appointed as director of the company in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. 6. As required by the Manufacturing And Other Companies (Auditors Report) Order, 1988, issued by the Central Government and on the basis of such checks as we considered appropriate, we further state that: (i) The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets. The Fixed Assets have been physically verified by the management wherever possible at the close of the year as confirmed by the Management. No material discrepancies have come to our notice on such physical verification. (ii) No revaluation of Fixed Assets of the Company has been made during the year. (iii) The Stock of finished goods and raw materials of the Company have been destroyed by the Management at the close of the year as they were said to be not fit for consumption and hence have been fully written off as on the Balance Sheet date. (iv) The procedures of physical verification of stock followed by the Management are reasonable and adequate in relation to the size of the company and the nature of its business. (v) The discrepancies between the physical stocks and book stocks have been properly dealt with in the books of account. (vi) The valuation of Stock of finished and other goods, stores, spare parts and raw materials are not applicable since the company does not hold any closing stock at the year end. (vii) The Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 and 370 (1C) of the Companies Act, 1956. (viii) The Company has not granted any loan to companies, firms or other parties listed in the register maintained under Section 301 and 370 (1C) of the Companies Act, 1956. (ix) Loans/ Advances have been given to the employees and they are repaying the amounts as well as Interest wherever applicable as stipulated. (x) On the basis of checks carried out during the course of audit and as per explanations given to us, there is adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of stores, raw materials, goods, plant and machinery, equipment and other assets and for the sale of Goods. (xi) There are no purchases of stores, raw materials or components and sale of goods and services aggregating during the year to Rs.50000 or more in each type from / to the firm or companies or other parties in which Directors are interested as listed in the Register maintained under Section 301 of the Companies Act, 1956. (xii) There were no unserviceable and damaged raw materials and finished goods held by the Company at the close of the year as informed to us. (xiii) The Company has not accepted any deposits from the public, during this year, under Section 58A of the Companies Act, 1956 and the rules framed thereunder. (xiv) The Company has maintained reasonable records for the sale and disposal of process waste. (xv) The Company has an Internal Audit System commensurate with its size and nature of its business. (xvi) Maintenance of cost records u/s.209 (1)(d) of the Companies Act are not mandatory to the Company. (xvii) During the year, the Company has not been regular in remitting its Providend Fund and Employees State Insurance Contributions. (xviii) There are no undisputed amounts payable in respect of Income Tax, Wealth Tax and Sales Tax as at 31st March, 2001 which are outstanding for a 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 have been charged to revenue account. (xx) The Company is 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 (1 of 1986), and has been registered under case No.32/2000 by the Board for Industrial and Financial Reconstruction under Section 15 of that Act. (xxi) In respect of the Trading Activities of the Company, it has a system of determining during the physical verification, damaged goods and of providing for the losses for the same. The damaged goods have been dealt with by the Company appropriately. For P. T. JOSEPH & Co., Chartered Accountants Sd/- Ernakulam P. T. JOSEPH 5th December, 2001 Proprietor