new india industries ltd Auditors report

THE NEW INDIA INDUSTRIES LIMITED AUDITORS REPORT TO THE MEMBERS OF THE NEW INDIA INDUSTRIES LIMITED We have audited the attached Balance Sheet of The New India Industries Limited as at 31st March, 1999, and also the annexed Profit and Loss Account of the Company for the year ended on that date and report that: 1. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956 and on the basis of such checks of the books and record of the Company as we considered appropriate and according to the information and explanations given to us during the course of the audit, we enclose in the Annexure a statement on the 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 (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 account as required by law have been kept by the Company so far as appears from our examination of such books. (c) The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of account. (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, to the extent applicable. (e) In our opinion and to the best of our information and according to the explanations given to us, the said Balance Sheet and the Profit and Loss Account read together with the Note No.1 K(ii) of Schedule "21" regarding Leave Encashment and other notes thereon give the informations 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, 1999, and (ii) in the case of the Profit and Loss Account, of the Profit for the year ended on that date. For N.M. RAIJI & CO. Chartered Accountants Place : Mumbai M. N. THAKKAR Date : 25 August, 1999. Partner Annexure to the Auditors Report Referred to in paragraph 1 of our report of even date. (i) The Company has compiled itemwise list of all its fixed assets. The total value shown by these lists has been agreed with gross value of all the assets (except furniture fixtures and electrical installations). The Company has maintained proper records (except itemwise value of the assets acquired prior to 1.1.1956) for these assets showing the quantitative details and the situation of the assets. We are informed that the items of plant and machinery were physically verified during the year which in our opinion is reasonable having regard to the size of the Company and nature of its assets and no material discrepancies were noticed by the Management on such verification as compared with the aforesaid records of the fixed assets. (ii) None of the fixed assets have been revalued during the year. (iii) The stocks of finished goods, stores, spare parts and raw materials have been physically verified by the management during the year. In our opinion, frequency of verification is reasonable. (iv) In our opinion, the procedures of physical verification of the stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (v) The discrepancies noticed on verification between physical stocks and book records were not material in relation to the operations of the Company and have been properly dealt with in the books of account. (vi) On the basis of our examination of stock records, we are of the opinion that the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles and is on the same. basis as in the preceding year. (vii) The Company has not taken any loans from Companies, from firms or other Parties, listed in the register maintained under Section 301 of the Companies Act, 1956. There are no companies under the same Management as this Company within the meaning of Section 370(1 -B) of the Companies Act,1956. (viii) The Company has not granted any loans, secured or unsecured, to companies, Firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. There are no companies under the same management as this Company within the meaning of Section 370(1 -B) of the Companies Act, 1956. (ix) The parties including employees and ex-employees, to whom loans have been given by the Company are repaying the principal amount and interest, wherever applicable, as stipulated, or rescheduled from time to time. (x) In our opinion, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to the sale of goods. (xi) In our opinion and according to the information and explanation given to us the transactions of Purchase of Goods and Sale of Goods, made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50,000 or more in respect of each party have made at prices which are reasonable having regard to the prevailing market prices for such goods, where such market price are available with the company or the price at which transactions for similar goods have been made with other parties. (xii) The Company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. Adequate provisions have been made in the accounts for the loss arising on the items so determined. (xiii) In our opinion, the Company has complied with the provisions of Section 58A of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975, with regard to deposits accepted from the Public. (xiv) In our opinion, the Company has maintained reasonable records for the sale and disposal of realisable scrap. The Company has no realisable by products. (xv) In our opinion, the Company has an internal audit system, which is commensurate with the size and nature of its business. (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) The Company has been regular in depositing during the year, the Provident Fund and Employees State Insurance dues with the appropriate authorities. (xviii) No undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales-Tax, Customs duty and Excise duty were outstanding as at 31st March, 1999, for a period of more than six months from the date they become payable. (xix) According to the information & 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 practice. (xx) The Company is not a sick industrial company within the meaning of Clause (O) of section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. (xxi) In relation to the trading activities, we are informed that there were no damaged goods. For N.M. RAIJI & CO. Chartered Accountants Place : Mumbai M. N. THAKKAR Date : 25 August, 1999. Partner