gujarat arth ltd Auditors report

GUJARAT ARTH LIMITED ANNUAL REPORT 2002-2003 AUDITORS REPORT To, The Members of GUJARAT ARTH LIMITED. Ahmedabad. We have audited the attached Balance Sheet of M/s. GUJARAT ARTH LIMITED as at 31st March, 2003 and the Profit and Loss Account of the company for the year ended as on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility of 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 standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued in terms of section 227 (4A) of the Companies Act, 1956, we annex hereto Annexure A on matters specified in paragraphs 4 and 5 of the said order. 2. Further to our comments in the Annexure referred to in paragraph 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 purpose of our audit. b. In our opinion proper books of accounts as required by law have been kept by the Company so far as appears from r examination of these books. c. The Balance-Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of accounts of the Company. d. In our opinion, the Profit and Loss Account and the Balance Sheet comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act,1956. e. On the basis of our review of the confirmation made available and explanation and information given to us, none of the Directors of the Company are prima facie disqualified from being appointed as Director of the Company u/S. 274(1)(9) of the Companies Act, 1956. 3. In our opinion and to the best of o information and according to explanation given to us, the accounts read together 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: 1. In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2003. 2. In the case of the Profit & Loss Account of the Loss for the year ended as on 31st March, 2003. For A. L. Thakkar & Co. Chartered Accountants Place : Ahmedabad (Sanjiv V. Shah) Date : 23-08-2003 Partner ANNEXURE -A TO THE AUDITORS REPORT Referred to in Paragraph (1) of the Auditors Report on the Accounts of GUJARAT ARTH LIMITED for the year ended 31st March, 2003. 1. The Company has maintained proper cords showing full particulars including quantitative details and situations of its fixed assets, the assets have been physically verified by the management during the year. No material discrepancies were noticed on Such verification. 2. None of the fixed assets have been revalued during the year. 3. As per information and explanation given to us, physical verification has been conducted by the management at reasonable intervals in respect of goads (shares). 4. As per explanation and information given to us, the procedures of physical verification of stock followed by the management is reasonable and adequate in relation to the size of the company and nature of its business. 5. As per explanation and information given to us, no discrepancies have bean noticed on physical verification of stock. 6. As per explanation and information given to us, the valuation of stock is made at cost of purchase and the basis of valuation is same as in the proceeding year. No provision has been made for the fall in the value of stock. 7. The Company has not taken any secured or unsecured loans from Companies, firms or other parties listed in the register maintained under Section 301 and to the Companies Act, 1956 and the Companies under the same management as defined under sub-section (1B) of Section 370 of the Companies Act, 1956. 8. The Company granted unsecured loans to Companies, Firms or other parties listed in the registers maintained under Section 301 of the Companies Act, 1956 and or to companies covered under Section 370 1(B) of the Companies Act, 1956. As per our examination we found that some of the unsecured loans are given free of interest charges. The other terms and conditions of such loans are not prima facie prejudicial to the interest of the company. 9. The parties to whom loans and advances in nature of loans have been given by the company, where stipulation are made the parties are repaying the principal amount and are also regular in payment of interest wherever applicable. 10. In our opinion and according to the into rmaticn and explanations given to us there are adequate internal control procedure commensurate with the size and nature of the business. 11. The Company has not entered into the transactions of purchase of goods in of Rs. 50,000/- in value from parties under Section 301 of the Companies Act, 1956. 12. The Company has not accepted any deposits from the public U/s. 58A of the Companies Act, 1956. 13. According to the information and explanations given to us, company has an internal audit system commensurate with size and nature of its business. 14. According to the information and explanations given to us, there are no undisputed amounts payable in respect of income tax, sales lax, customs duty and Excise duty as at 31st March, 2003 which are outstanding for a period of more than six months from the date they become payable. 15. According to the information and explanations given to us and records of the Company examined by us no personal expenses have been charged to the revenue account other than those payable under contractual obligation. 16. The Company is not a Sick Industrial unit within the meaning of Section 3(1)(c) or the Sick Industrial Company (Special Provision) Act, 1985. 17. According to the information and explanation given to us, Company has maintained adequate document. and records for granting the loans. 18. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other Securities. 19. According to the information and explanations given to us, Company has maintained proper records for investments made by the Company and timely entries are made therein and the same is held by the Company in its own name. 20. Clause No. (xii), (xiv), (xvi) and (xvii) of para 4A are not applicable to the Company. For A. L. Thakkar & Co. Chartered Accountants Place : Ahmedabad (Sanjiv V. Shah) Date : 23-08-2003 Partner