gujarat filaments ltd Auditors report

Gujarat Filaments Limited AUDITORS REPORT We have audited the attached Balance Sheet of M/s. GUJARAT FILAMENTS LTD. as at 31st March, 1998 and also the Profit & Loss Account for the year ended on that date and annexed thereto and 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 the audit. 2. The books of accounts of cement division of the Company have been audited by Branch Auditor, whose report on the same has been considered by us in making this report. 3. In our opinion, proper books of accounts as required by law have been kept by the Company sc far as appears from our examination of books. 4. The Balance Sheet and Profit & Loss account dealt with by this Report are in agreement with the books of accounts., 5. In our opinion and to the best of our information and explanations given to us, Balance Sheet and the Profit & Loss Account read with 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 the Balance Sheet, of the state of affairs of the Company as at 31st March, 1998 ii) in the case of the Profit 8 Loss Account, of the loss for the year ended on that date. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Central Government in terms of section 227(4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate, we further state that: i) The Company is in the process of updating records showing full particulars including quantitative details and situation of fixed assets. The fixed assets have been physically verified by the management during the period and no material discrepancies have been reported on such verification. ii) No fixed assets of the Company has been revalued during the year. iii) Physical verification of stock has been conducted by the management at reasonable intervals in respect of finished goods. stores, spare parts and raw materials. iv) The procedure of physical verification of stocks followed by the management, in our opinion is reasonable and adequate in relation to the size of the Company and the nature of its business. v) As per the information and explanations given to us, no material! discrepancies have been noticed on physical verification of stocks as compared to book records. vi) On the basis of our examination of the stock records, we are satisfied that the valuation of stocks is fair and proper and in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year. vii) According to the information and explanations given to us, the rates of interest and the terms and conditions of the loans taken during the year from the Companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima facie prejudicial to the interest of the Company. As per the Informations given to us there is no Company under the same management as defined under Section 370(1B) of the Companies Act. 1 956. viii) According to the information and explanations given to us, the rates of interest and the terms and conditions of the loans given by the Company to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima facie prejudicial to the interest of the Company. As mentioned earlier, there is no Company under the same management. ix) According to the information and explanations given to us, the Company has given loans to the employees who are re-paying the same with interest, as stipulated. Company has also given loan to various other parties who are not regular in payment of principal and interest. x) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of t e Company and the nature of its business with regard to purchase of stores, raw material including components, plant and machinery, equipment and other assets and for the sale of goods. xi) The Company has not entered into any transaction of purchase 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 as aggregating during the period to Rs.50,000/- or more in respect of each party. xii) According to the information and explanations given to us, the Company did not have any unsaleable or damaged stores, and raw materials during the year. xiii) As per explanations & informations given to us Company has not accepted any deposits as contemplated under section 58A,of the Companies Act 1956 during the year. xiv) The Company has maintained reasonable records for the sale and disposal of the scrap. Company does not have any by-product. xv) During the year Company did not have formal internal audit system. xvi) The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for any of the products of the Company. xvii) According to the records of the Company, Provident Fund and.Employees State Insurance dues have been regularly deposited with the appropriate authorities except in few cases where there are minor delays. xviii) According to the information and explanations given to us, except Sales Tax amounting to Rs.31,21,608/- there are no other undisputed amounts payable in respect of Income tax, Sales tax, Wealth tax, Customs duty and Excise duty which were outstanding as at 31st March, 1998 for a period of more than six months from the date they become payable. xix) 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 obligations or in accordance with generally accepted business practices. xx) The Company is not a Sick Industrial Unit 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 trading activity,-we are informed that there are no damaged goods. For M.M.CHATURVEDI & CO. Chartered Accountants Bombay (M.M. CHATURVEDI) Date: 28th November, 1998 Partner