mintage electro equipments ltd Auditors report

ANNUAL REPORT 1998-99 MINTAGE ELECTRO EQUIPMENTS LTD. AUDlTORS REPORT TO THE MEMBERS OF MINTAGE ELECTRO EQUIPMENTS LIMITED We have audited the attached Balance Sheet of M/s.Mintage Electro Equipments Limited as at 31st March,1999 and also the Profit & 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 ( AuditorsReport) Order,1988; issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act,1956, we annex here to a statement on the matters specified in paragraphs 4 and 5 of the said order. 2. Further to our comments in the foregoing paragraphs we report that: a) We have obtained all the information and explanations which to the best of our acknowledge and belief where necessary for the purposes of our audit. b) In our opinion proper books of account as required by law have been Kept by the company so far as it appears from our examination of the books. c) The Balance Sheet dealt with this report is in agreement with books of account. d) In our opinion the Balance Sheet & Profit & loss Account dealt with by this are fairly are in compliance with the Accounting Standards (AS) referred to in Section 211 (c) of the Companies Act 1956. e) In our opinion,and to the best of our knowledge and according to the information and explanations given to us,the said Accounts read with,the notes thereon,give the information required by the Companies Act,1956 in the manner so required and gives a true and fair view: i) In the case of Balance Sheet of the state of affairs of the Company as at 31st March,1999. ii) In the case of Profit and Loss Account of the profit of the Company for the year ended on that date. For KAMLESH.B.MEHTA CO. Chartered Accountants (KAMLESH MEHTA) Proprietor. Place: MUMBAI Date : 25th Nov,1999. REPORT OF THE AUDITORS TO THE SHAREHOLDERS ANNEXURE TO THE AUDITORS REPORT As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company law Board in terms of Section 22(4A) of the Companies Act,1956; and on the basis of such checks as we considered appropriate-and according to the informations and explanations given to us, we further report that: 1. The Company has maintained Fixed Assets Register showing full particulars including the quantitative-and location details except Capital work in progress during the year. A substantial portion of the Fixed Assets have been physically verified by the management during the year and, to the best of our knowledge and informations given to us, no serious discrepancies have been notice on such physical verification. 2. None of the Fixed Assets have been revalued during the year. 3. The stock of finished goods,stores,spare parts have been physically verified by the management at reasonable intervals. 4. The procedures of physical verification of stocks follows by ,the management are reasonable and adequate in relation to the size of the Company and the nature of its business. 5. No material discrepancies have been noticed on physical verification of stock as compared to book records. 6. On the basis of our examination of Stocks,we are satisfied that the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles. 7. The Company has not taken any loan from companies, firm or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. No loans have been taken from companies under the same management as defined under sub-section (1B) of Section 370 of the Companies Act, 1956. 8. The terms and conditions of interest-free unsecured loan / deposit granted to a Company listed in the register maintained under Section 301 of the Companies Act, 1956 are in our opinion, prima facie not prejudicial to the interest of the Company. No loans have been granted to companies under the same managements as defined under Sub-section (1B) of Section 370 of the Companies Act,1956. 9. In respect of interest free loans,and advances in the nature of loans. i. Employees, the repayment of principal amounts are as per stipulations ii. To others, there are no terms stipulated for repayment of principal amount. 10. In our opinion there are adequate internal control procedure commensurate with the size and the nature of the business of the Company However, It requires to be strengthened in view of expanding business of the Company. 11. The transactions of purchase of goods and materials 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 (1 of 1956) and aggregating during the year Rs.50,000/- (Rupees Fifty Thousand Only) or more in respect of each party have been made at prices which are reasonable having regard to prevailing market prices for such goods, materials or services or the prices at which transactions for similar goods or services have been made with the other parties. 12. The Company has a regular procedure for determination of unserviceable or damaged stores, raw materials and finished goods. 13. According to the informations and explanations given to us the Company has not accepted any deposits or advance under Section 58(A) of the Companies Act, 1956. 14. The Company has no by-products so the question of disposal or records of the same does not arise. 15. The Company has no internal audit system. 16. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government under section 209 (1) (d) of the Companies Act, 1956 (1 of 1956) and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. 17. According to the Books and records examined by us there were no undisputed amounts payable in respect of Income Tax, Wealth Tax, Excise Duty, & Custom Duty outstanding as on 31st March 99, and for a period of more than six months from the date they become payable except ESIC & Provident Fund of Rs.20,082/- & Rs.51327/- respectively for a period more than six month. 18. No personal expenses of employees and directors have been charge to revenue account to other than those payable under contractual obligations or in accordance with generally accepted business practice. 19. The Company is not a sick industrial company within the meaning of Clause (0) of section 3(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. 20. The Company has reasonable system of recording receipts, issues and consumed of material and stores, allocation of materials consumed and man- hours utilised,on the relative jobs, commensurate with its size and nature of its business. 21. There is a reasonable system of authorisation of proper levels,and an adequate system of internal control commensurate with the size of the Company and nature of its business, on issue of stores and allocations of stores and labour to jobs. 22. In respect of Companys trading activities, we are informed that there are no damaged stocks. For KAMLESH.B.MEHTA & CO. Chartered Accountants (KAMLESH MEHTA) Proprietor PLACE: MUMBAI. DATE : 25TH NOV,1999.