burr brown india ltd share price Auditors report

ANNUAL REPORT 1998-99 BURR BROWN (INDIA) LIMITED AUDITORS REPORT TO, THE SHAREHOLDERS, BURR BROWN (INDIA) LIMITED We have audited the attached Balance Sheet of Burr Brown (India) Limited as at 31st December, 1999 and also the Profit and Loss Account for the year ended on that date annexed thereto in which the accounts of branches are incorporated, 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 and on the basis of such checks of books and records of the Company as were considered appropriate and the information and explanations given to us during the course of audit, we enclose in the annexure, a statement on the matters specified in paragraphs 4 & 5 of the said order: 2 Further to our comments referred to in paragraph 1 above: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. b) In our opinion, proper books of account, as required by law have been kept by the Company so far as appears from our examination of such books, and proper returns adequate for the purposes of our audit, have been received from the branches, not visited by us. c) The balance sheet and profit and loss account dealt with by this report are in agreement with the books of accounts. d) In our opinion, the profit and loss account and the balance sheet comply with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 to the extent they are applicable. e) In our opinion and to the best of our information and according to the explanations given to us the said accounts, read together with Schedule O on Notes on Account, 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 profit and loss account of the profit for the year ended on that date. For and on behalf of Bansal & Co. Chartered Accountants S.K. Bansal (Partner) Place: New Delhi Date: 28th April, 2000 ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE (i) In our opinion the company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. Physical verification of fixed assets was carried out by the management during the year and having regard to the size of the company and nature of the fixed assets, no material discrepancy have been noticed, in respect of the asset which have been physically verified during the year. (ii) None of the fixed assets of the Company has been revalued during the year. (iii) Physical verification of stocks have been conducted by the management during the year It reasonable intervals. (iv) In our opinion the procedure of physical verification of stocks followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business. (v) No discrepancies noticed on verification between the physical stocks and book records (vi) The company does not have any stock at Balance sheet date. (vii) The company has not taken any loans, secured or unsecured from the companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Section 370 (1-B) of the Companies Act, 1956 containing definition of companies under the same management has been made inapplicable w.e.f. 31.10.98. (viii) The company has not granted any loans secured or unsecured to the companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Section 370 (1-B) of the Companies Act, 1956 containing definition of companies under the same management has been made inapplicable w.e.f. 31.10.98. (ix) The company has granted interest free loans or advances in the nature loans amounting to Rs. 131.34 lacs for which there are no stipulation for repayment of loan/advances. (x) The internal control procedure are commensurate with the size of the company and the nature of its business, for the purchases including components, plant and machinery, equipments and other assets and for the sale of goods, however these require further strengthening. (xi) The transactions of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements entered In the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50,000 or more in respect of each party have been made at prices which are reasonable having regard to prevailing market price for such goods, materials or services or the prices at which transactions for similar goods, material or services have been made with other parties. (xii) The company has no unserviceable or damaged stores and raw material or finished goods. (xiii) The company has not accepted any deposit from the public and the provisions of Section 58-A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposits accepted from the public are not applicable. In respect of equipment leasing business the directives issued by the Reserve Bank of India (RBI) and the rules framed thereunder, where applicable, have been complied with. (xiv) The company has no by product and there is no realisable scrap. (xv) In our opinion the company has an adequate internal audit system commensurate with the size and nature of its business. (xvi) Maintenance of Cost Records have not been prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956. (xvii) The company has applied for registration with Provident Fund and Employees State Insurance authorities and dues with the appropriate authorities will be deposited after getting the registration. (xviii) There were no undisputed amount payable in respect of income tax, wealth tax, sales tax, excise duty and customs duty outstanding as at 31st December 1999 for a period of more than six months from the date they became payable. (xix) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices and according to the information and explanations given to us, we have not come across any personal expenses which have been charged to profit and loss account other than those payable under contractual obligations or in accordance with prevailing 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 the Sick Industrial Companies (Special Provisions) Act, 1985. (xxi) In respect of the companys service activity, in our opinion, the system of allocation of the materials and man hours consumed on the jobs are not in existence. The system of recording of receipts, issues and consumption of materials and allocation thereof and the system of authorization at proper levels are adequate for internal control in respect of such service activity commensurate with the size of the company and nature of its business. (xxii) In case of trading activity, we were informed that there were no damaged goods. The company has not granted loans and advances on the basis of securities by way of pledge of shares, debentures and other securities. (xxiii) In respect of investments and financial activity of the company, adequate documents and records have been maintained and the investments are held by the company in its own name except to the extent of exemptions granted Under Section 49 of the Companies Act, 1956. For and on behalf of Bansal & Co. Chartered Accountants S.K. Bansal (Partner) Place: New Delhi Date. 28th April, 2000