arochem silvassa ltd Auditors report

ANNUAL REPORT 1998-99 AROCHEM SILVASSA LIMITED AUDITORS REPORT TO THE MEMBERS OF AROCHEM SlLVASSA LIMITED We have audited the attached Balance Sheet of M/s. Arochem Silvassa Limited as at 31st March, 1999 and also the Profit and Loss Account the company for the year ended as on that date annexed hereto and report that. 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 paragraphs 4 & 5 of the said Order. Further to our comments in the Annexure referred to in paragraph 1 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 the audit. b) In our opinion, proper books of account as required by law, have been kept by the Company as far as appears from our examination of books of the company. c) In our opinion, the Balance Sheet and Profit & Loss Account dealt with by this report are in compliance with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 and are in agreement with the books of account. d) The Balance Sheet and profit and Loss Account dealt with by this report are in agreement with the books of account. In our opinion and according to the explanations given to us, the said accounts give a true and fair view subject to Note No. 13 (a in schedule 19 for Non Provision of Doubtful Debts amounting to Rs.86,16,228/-, consequently the loss for the year has been understated to that extent, and other notes thereon give the information as required by the Companies Act, 1956. a) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 1999, and b) In the case of the Profit and Loss Account, of the Loss for the year ended as on that date. As per our report of even date For Gupta Saharia & Co Chartered Accountants Sd/- (PAWAN GUPTA) Partner Place: Mumbai Date : 30-07-99. ANNEXURE TO AUDITORS REPORT Referred to in paragraph 1 of our report of even date of the Accounts for the year ended 31st March 1999. 1. The Company has maintained proper records show full particulars, includ- ing quantitative details and situation of fixed assets. The fixed assets have been physically verified by the management at reasonable intervals during the period and no material discrepancies have been noticed on such verification. 2. None of the Fixed Assets have been revalued during the year. 3. The stock of finished goods, raw materials and packing material and except stock in transit and stock Iying with third parties have been physically verified by the management at reasonable intervals. 4. In our opinion the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. 5. The discrepancies noticed on such verification between the physical stocks and the books and records were not material. 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 the preceding year. 7. The Company has taken unsecured loans from parties listed in the re ister maintained U/S 301 of the companies Act, 1956, where the rat of interest and other terms and conditions are in our opinion, prima facie not prejudicial to the interest of the Company. 8. The Company has not ranted loan to companies listed in the register under section 301 of the Compaies Act, 1956 during the year and the Company under the same manaement as defined under sub-section (1B) of section 370 of the Companies Act 1956. 9. In respect of loans and advances in the nature of loans given to company where stipulation have been made, the parties are generally repaying the principal amounts as stipulated or as rescheduled and for also been regular in the payment of interest where applicable. 10. In our opinion and according to information and explanations given to the Company is having adequate internal of control procedure commensurate with the size of the Company and nature of its business 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 transactions of purchase and sale of goods, material of ser- vices, made in pursuance of contracts or arrangements entered in register maintained U/s 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50000/- 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. 12. Unserviceable or damaged goods, raw materials and finished goods, are determined and provision for loss if any have been made in the accounts. 13. The Company has not accepted Deposits from the Public within the meaning of Section 58 A of the Companies Act, 1956. 14. In our opinion reasonable record have been maintained by the Company for realisable by-products and scraps. 15. The company has an adequate internal audit system commensurate with the size and nature of its business. 16. The Central government has not prescribed the maintenance of cost records U/S 209 (1) (d) of the Companies Act, 1956. 17. We are informed that the company is not covered under the SIC Act and has been regular in depositing the Provident fund. 18. According to the information and explanations given to us, there were no undisputed amounts payable in respect of Sales Tax, Customs Duty and Excise Duty which have remained outstanding as at 31st March, 1999 for a period of more than six months from the date they became payable, except for Income Tax of Rs. 1,04,798/-. 19. During the course of our examination of books of accounts carried out in accordance with the generally accepted auditing practices, we have not come across any personal expenses of Directors and employees which have been charged to Profit & Loss Account. 20. The Company is not a Sick Industrial Unit within the meaning of Clause (0) of Sub-Section (I) Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. For Gupta Saharia & Co. Chartered Accountants Place: Mumbai (PAWAN GUPTA) Date: 30-07-99 Partner