divine entertainment ltd Auditors report

ANNUAL REPORT 1998-99 DENIM ENTERPRISES LIMITED AUDITORS REPORT We have audited the attached balance sheet of DENIM ENTERPRISES LIMITED as at 31st March,1999 and also the profit and loss account of the company for the year ended on that date annexed thereto 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 annexe hereto a statement on the matters specified in paragraphs 4 and 5 of the said order. (2) Further to our comments in the Annexure referred to in paragraphs 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 purposes of the 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 the books: (c) The balance sheet and profit and loss account dealt with by this report are in agreement with the books of account: (d) In our opinion and to the best of our information and according to the explanations given to us the said accounts read together with notes thereon give the information require by the companies Act,1956 in the manner so required and give a true and correct view: (i) in the case of the Balance sheet, of the state of affairs for the year ended on March 31.1999 and (ii) in the case of the profit and loss account of the profit of the company for the year ended on that date. Place: Ahmedabad For, Vipul N.Shah & Associates Date : June 26, 1999 (Chartered Accountants) (V.N.Shah) Proprietor ANNEXURE TO THE AUDITORS REPORT (Refereed to in paragraph 1 of the report of even date on the accounts for the period ended on 31st March,1999 of Denim Enterprises Ltd. (1) The company does not have any fixed assets except land therefore question of maintaining of proper records does not arise. (2) None of fixed assets have been revalued during the year. (3) The Company has done only trading activity and there is no stock therefore question of physical verification of stock does not arise. (4) The company has taken interest free unsecured loans from other parties listed in the register maintained under section 301 of the companies Act,1956.The company has not taken any loans from companies under the management as defined under section 310 (1B) of the comPanies Act,1956. (5) The company has granted interested free unsecured loans to a firm listed in the register maintained under section 301 of the companies Act,1956. Since the loans granted are interest free they may be deemed to be prima facie prejudicial to the interest of the company. The company has not granted any loans from companies under the same management as defined under section 310 (1 B) of the companies Act,1956. (6) The parties to whom the loans or advances in the nature of loans have been given by the company are repaying the principal amounts as stipulated wherever applicable. (7) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of Its business for the purchases of stores, raw materials including components,plant and machinery, equipments and other assets an for the sale of goods. (8) The company has not accepted any deposit within meaning of section 58A of the companies Act,1956.and rules thereunder are of applicable to the company. (9) In our opinion the company 17as an adequate internal audit system commensurate with its size and nature of its business. (10) As informed to us the company is not required to maintain cost records. (11) According to the records of the company providand fund and employees & staff insurance provision is not applicable to the Company. (12) According to the information and explanation given to us there are no undisputed amounts payable in respect of Income tax,Wealth tax,Sales Tax,Customs duty and excise duty outstanding as at period of more than six months from the date they become payable. (13) According to the information and explanation given to us no personal expenses have been charged to revenue account. (14) The company is not a sick industrial company within the meaning of clause (0) of sub-section (1) of section 3 of the sick industrial companies (special provisions) Act,1985. (15) In respect of the companys trading activity,we are informed that there are no damaged stocks. (16) None of the matters contained in clauses (iv),(v),(vi),(xi),and (xii) of para 4A,para 4B,& para 4D of the said order applicable to the company. Place: Ahmedabad For, Vipul N.Shah & Associates Date: June 26, 1999 (Chartered Accountants) (V.N.Shah) Proprietor