gujarat fiscon ltd Auditors report

ANNUAL REPORT 1998-99 GUJARAT FISCON LIMITED AUDITORS REPORT To, The Members, GUJARAT FISCON LTD. I have audited the attached Balance Sheet of " GUJARAT FISCON LIMITED " as at 31st March, 1999 and the Profit and Loss Account 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 and on the basis of such checks as I considered necessary and information and explanations given to me, l enclose in the annexure a statement on the matters specified in Para 4 and 5 of the said Order. 2. Further to my comments in the Annexure referred to in Paragraph 1 above, l state that :- a) I have obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purpose of my audit. b) In my opinion proper books of accounts as required by Law have been kept by the Company so far as appears from my examination of such books. c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the books of accounts. d) In my opinion, the Balance Sheet and Profit & Loss Account complied with the requirements of the accounting standards referred to in Sub Section (3C) of Section 211 of the comPanies Act. 1956. e) In my opinion and to the best of my information and according to the explanations given to me, the said Balance Sheet and the Profit & Loss Account 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 i) In case of the Balance Sheet of the state of affairs of the Company as at 31st March, 1999 and ii) In case of Profit and Loss Account, of the Profit of the Company for the year ended on that date. FOR PARIKH & TALATI Chartered Accountants PLACE: Baroda S. R. PARIKH DATE : 31st May, 1999 PARTNER ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS 1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. I have been informed that these assets have been physically verified by the Management during the year and that no material discrepancies were noticed on such verification. 2. The fixed assets have not been revalued during the year. 3. The stocks of shares have been physically verified by the management during the year. In my opinion the frequency of the verification is reasonable. 4. In my opinion, procedures of physical verification of stocks followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. 5. No discrepancies have been noticed on the verification between physical stock and book records. 6. In my opinion, the valuation of stock of shares is fair and proper and in accordance with the normally accepted accounting principles. 7. The Company has not taken any loans secured or unsecured from Companies, Firms or Other Parties listed in the Register maintained under Section 301 of the Companies Act, 1956. 8. The Company has not granted any loan, secured or unsecured, to Companies, Firms or Other Parties listed in the Register maintained under Section 301 of the Companies Act, 1956. 1 am informed that there are no Companies under the same management as defined under Section 370(1-B) of the Companies Act, 1956. 9. The patties, to whom loans or advances in the nature of loans have been given are repaying the principal amounts as stipulated and are also regular in payment of interest where applicable, except in respect of few parties where there have been delays. The Company is taking reasonable steps against these parties to recover the amount overdue including interest thereon. 10. In my opinion and according to the information and explanations given to me, there are adequate internal control procedures commensurate with the size of the Company and nature of its business for the purchase of plant & machinery, equipment and other assets and also for sale of shares and securities 11. According to the information and explanations given to me, there are no transactions for purchase 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 aggregating during the year to Rs. 50,000/- (Rupees Fifty Thousand Only) or more in respect of any Party. 12. In my opinion and according to the information and explanations given to me, the direction issued by the Reserve Bank of India (RBI) and the provisions of Section 58A of the Companies Act, 1956 and rules framed thereunder are being complied with. 13. According to the information and explanations given to me, there were no undisputed amounts, payable in respect of Income Tax, Sales Tax, Custom Duty and Excise Duty which have remained outstanding as at 31st Match, 1999 for a period of more than six months from the date its became payable. 14. As per the information and explanations given to me, the nature of the business of the Company does not necessitate the maintenance of the records of receipts, issues and consumption of stores and the system for reasonable allocation of materials and man hours consumed o the relative jobs. 15. As explained to me, the nature of the Companys business is such that the question oi having a system ot authorisation at proper levels with necessary control on the issue and allocation of stores, labour jobs and any system of internal control commensurate with the size of the Company and the nature of its business does not arise. 16. As per information furnished by the management and during the course of examination of the books of account carried out, I have not come across any personal expenses which have been charged to Profit & Loss Account other than those payable under contractual obligations or in accordance with generally accepted business practice. 17. Proper records have been maintained for the transactions relating to trading in shares, securities, debentures and other investments and entries therein have been made generally on a timely basis. Investments are held in the name of the Company. Securities held by the Company as Stock-in- trade" are generally sent for transfer in the name ot the Company unless they are held with the intention ot selling prior to registration in its own name. Subsequent to the transfer, securities are held in the name of the Company, except for securities under objection. 18. The Company has an Internal audit system commensurate with the size and nature of its business. 19. As informed to me, the Employees Provident Fund Scheme and the Employees State Insurance Act are not applicable to the Company. 20. As required by the Non Banking Financial Companies Auditors Report (Reserve Bank) Directions, 1998, we further state that we have submitted a Report to the Board of Directors of the Company containing a statement on the matters of supervisory concern to the Reserve Bank of India as specified in the said Directions, namely the following :- i) The Company, incorporated prior to January 9, 1997, had applied for registration as provided in Section 451A of the Reserve Bank of India Act, 1934 (2 of 1934), and has not received any communication from Reserve Bank of India, about the grant or refusal of Certificate of Registration as on date. ii) The Board of Directors of the Company has passed a Resolution for non- acceptance of any public deposits. iii) The Company has not accepted any public deposits. iv) The Company has complied with the prudential norms relating to income recognition accounting standards. asset classification and provisioning of bad and doubtful debts as applicable to it. FOR PARIKH & TALATI Chartered Accountants PLACE: Baroda S. R. PARIKH DATE : 31st May, 1999. PARTNER