electric control gear india ltd Auditors report

ELECTRIC CONTROL GEAR (INDIA) LIMITED ANNUAL REPORT 2001-2002 AUDITORS REPORT To The Members, Electric Control Gear (India) Ltd. We have examined the attached Balance Sheet of ELECTRIC CONTROL GEAR (INDIA) LIMITED as at 30th September, 2002 and also the Profit & Loss Account of the Company for the year ended on that date both annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in india.Those Stndards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation.We belive that our audit provides a reasonable basis for our opinion, (A) As required by the Manufacturing and other Companies (Auditors Report) Order, 1988 issued by the Central Government of India,under Section 227 (4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. (B) Further to our report as stated above in para-(A) of this report and subject to notes on account, we further report that: 1. 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. 2. In our opinion, proper books of accounts have been kept by the Company as required by law so far as appears from our examination of those books. 3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the Books of Account. 4. In our opinion the Balance Sheet and the profit & Loss Account comply with the Accounting Standards referred to in Sub-Section (3C) of section 211 of the Companies Act, 1956 to the extent applicable, except note No.3 of schedule-K, as to retirement benefits (Accounting Standard-15). 5. On the basis of the written repesentations received from Directors as on 30th September, 2002, and taken on record by Board of Directors, we report that none of the directors is disqualified as on 30th September, 2002, from being appointed as director under clause (g) of sub-section (1) of section 274 of the companies act, 1956. Disqualified as on 30th September,2002,from being appointed as director under clause (g) Of Sub-section (1) of section-274 of the companies act, 1956. 6. In our opinion and to the best of our information and according to the explanations given to us, and subject to; (i) Note No. 1 of schedule-K relating to Non-provsion of Inter Corporate Deposits of Rs.686.07 which are doubtful of recovery resulting into overstatement of advances and understatement loss by the same amount; (ii) Note No.2 of schedule-K relating to Third party balance and confirmation arid others; (iii) Note No.3 of schedule-K relating to retirement benefits which are accounted for on payment basis. The extent of none compliance in value term, s is not ascertainable; the said accounts read together with statement of significant accounting policies and notes forming part of accounts, give the information required by the Companies Act, 1956 in the manner so required and the Balance Sheet gives a true and fair view of the state of companys affairs as at 31st March,2002 and the Profit & Loss Account gives a true and lair view of the LOSS for the year ended on that date. FOR MEHTA LODHA & CO. Chartered Accountants Sd/- Place: Ahmedabad (ASHWINI DEVPURA) Date : 01-11-2002 Partner ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph (A) thereof) 1. The Company has maintained proper records showing full particulars including quantitive details and situation of fixed assets. As informed to us, Fixed Assets of the company have been physically verified by the management at the end of the year, which in our opinion is reasonable having regard to the size of the company arid nature of its business. As informed to us, no material discrepancies were noticed on such verification. 2. The fixed assets of the company have not been revalued during the year. 3. As informed to us, the Company has not taken unsecured loans from the parties listed in the register maintained under section 301 of the Companies Act, 1956 or from the companies under the same management as defined under Sub-Section (1-B) of Section 370 of the Companies Act, 1956. 4. As informed to us, the Company has not granted loans to the parties listed in the register maintained under section 301 of the Companies Act, 1956 or from the companies under the same management as defined Under Sub- Section (1-B) of Section 370 of the Companies Act, 1956. 5. As Informed to us, the parties to whom the loans or advances in the nature of loans have been given by the Company are not repaying the principal and interest where applicable. 6, As informed to us, during the year, the company has not accepted deposits from the public to which Section 58-A of the Companies Act 1956 of the Companies Acceptance of Deposits) Rules 1975, apply. 7. The Company has no Internal audit system. 8. As informed to us, Provident fund Act and Employees State Insurance Act is not applicable to the Company. 9. 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 as at 30th September, 2002, and which are outstanding for a period of more than six months from the date they became payable. 10. During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices, we have not come across any personal expenses which have been charged to profit and loss account except those payable under contractual obligations or in accordance with the generally accepted business practices. 11. 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. 12. As informed to us,the provisions of any special statute applicable to chitfund, nidhi or Mutual benefit society are not applicable to the company. 13. As informed to us and as per information and explanations furnished to us we are of the opinion that the other clauses of paragraph 4A the the order, are not applicable to the company. FOR MEHTA LODHA & CO. Chartered Accountants Sd/- Place: Ahmedabad (ASHWINI DEVPURA) Date : 01-11-2002 Partner