btw industries ltd Auditors report

BTW INDUSTRIES LIMITED Annual Report 1998-99 AUDITORS REPORT To the Shareholders of BTW Industries Ltd. We have audited the attached Balance Sheet of B~W Industries Ltd., as at 31st December, 1999 and the annexed Profit & Loss Account for the year ended 31st December, 1999 and report as Under:-- I. 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 annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order. II. Further to our comments on the Annexure referred to in paragraph 1 above we report that: a] We have obtained all the informations 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) In our opinion, the Profit and loss Account and Balance Sheet of the Company complies with the accounting standards referred to in Sub Section (3c] of Section 211 of the Companies Act, 1956. d) The Balance Sheet and Profit & Loss Account dealt with by this report, are in agreement with the Books of account. e] In our opinion and to the best of our information and according to explanations given to us, 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. i) in the case of Balance sheet, of the State of affairs of the Company as at 31st December, 1999 and ii] in the case of the Profit & Loss Account, of the loss for the year ended on that date. For P. K. Himmatsinghka & Co. (Chartered Accountants) Place: Calcutta Dated: 28th April, 2000 P. K. Himmatsinghka (Proprietor) ANNEXURE TO THE AUDITORS REPORT [Referred to in Paragraph 1 of our report of even date on the accounts for the year ended 31st December 1999] 1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The fixed assets of the Company have been physically verified during the period by the management and there is no material discrepancies have been noticed on such physical verification. 2. The Fixed Assets of the Company have not been revalued during the period. 3. The stock of finished goods, Work in process, stores, spare parts and raw materials of the Company at all its locations have been physically verified by the management during the period. In our opinion, the frequency of verification is reasonable. 4. In our opinion, the procedure 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. 5. The discrepancies between the physical stock and the book stock, which have been properly dealt with, were not material. 6. In our opinion 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 period. 7. The Companies has not taken any 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. 8. The Company has not granted any loans whether secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 and / or to the companies under the same management 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 by the company, parties are repaying the principal amounts as stipulated and not regular in payment of the interest. 10. In our opinion, there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business for purchase of raw materials, including components, Plant and machinery, equipment and similar assets and for the sale of goods. 11. The Company has a system of determining unserviceable or damaged stores, raw materials and finished goods on a regular basis. There is no such stock as on the Balance Sheet date and as such there is no need to make provision thereof. 12. The Company has not accepted any deposits during the period from public. 13. In our opinion, proper records have been maintained by the Company for the sale of scrap. There are no by-products. 14. In our opinion, the Company has an internal audit system commensurate with its size and nature of the business. 15. The Central Government has not prescribed the maintenance of cost records by the Company under Section 209(1) (d) of the Companies Act, 1956 for any of its products. 16. The Company has been generally regular except few cases delay occured in payment during the period in depositing Provident fund. 17. According to the information and explanations given to us the records examined by us, there were no undisputed amounts payable in respect of Wealth Tax, Customs duty and Excise duty except sales tax amounting to rs. 387.65lacs outstanding as at 31st December,1999 for a period exceeding six months from the date they became payable. 18. 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 contractual obligation or in accordance with generally accepted business practices. 19. The Company is not a sick industrial unit within the meaning of clause [O) of sub section I section 3 of the Sick Industrial ComPanies [Special Provisions] Act, 1985. 20. Other provisions of the Order do not appear to be applicable to the company for the period under review. For P. K. Himmatsinghka & Co. [Chartered Accountants] Place: Calcutta P. K. Himmatsinghka Date: 28th April, 2000 [Proprietor]