oasis textiles ltd Auditors report

UNIPON (INDIA) LIMITED AUDITORS REPORT To, The Shareholders of UNIPON (INDIA) LIMITED We have audited the attached Balance Sheet of Unipon (India) Limited as at 31st March, 1998 and also the Profit & 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 issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we give in the annexure a statement on the matters specified in paragraphs 4 & 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 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 appears from our examination of the books. c. The Balance Sheet and the Profit & Loss Account dealt with by this report are in agreement with the books of accounts. d. Attention is invited to the following notes in Schedule "R": i. Note 5 regarding change in method of depreciation on all assets acquired since inception from SLM to WDV method. Consequently, charge for depreciation for the year is lower by Rs. 18,39,960/- loss carried to Balance Sheet as on 31.3.1998 is higher by Rs. 3,47,04,526/- and net block of fixed assets as on 31.3.1998 is decreased by the like amount. ii. Note 8: Confirmations from parties for amount due to them /from them have not been called for. Subject to foregoing, in our opinion and to the best of our information and according to the explanations given to us, the accounts read with other 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 the affairs of the Company as at 31st March, 1998 and ii. In the case of Profit & Loss Account, of the loss for the year ended on that date. For C.C. CHOKSHI & CO. Chartered Accountants Place: Ahmedabad H.P. SHAH Dated: 17th April, 1998 Partner ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 1 of our report of even date on the accounts for the year ended on 31st March,1988 of Unipon (India Limited) [1] The Company has maintained proper showing full particulars including quantitative details and situations of its fixed assets. The fixed assets have been physically verified by the management during the year. We are informed that no material discrepancies have been noticed by the management on such verification. [2] None of the fixed assets have been revalued during the year under review. [3] The stocks of finished goods, store,spare-parts and raw materials have been physically verified during the year by the management .In our opinion, the frequency of verification is reasonable. [4] The 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] The discrepancies noticed on verification between the physical stocks and the book records were not material. [6] On the basis of our examination of stock records, we are 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. [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 companies Act, 1956 or from a Company under the same management as defined under sub section (1B) of Section 370 of the Companies Act, 1956. [8] During the year the Company has given interest free unsecured loans to a Company under the same management as defined u/ss (1B) of section 370 of the Companies Act, 1956 and the same has been repaid. [9] The parties including employees to whom loans or advances in the nature of loans have been given by the Company, are repaying the principal amounts as stipulated except in case of four employees. We are informed that reasonable steps have been taken for recovery of the principal amounts. Interest is recovered where applicable. [10] In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of stores, raw materials including components, plant and machinery, equipments and other assets and with regard to the sale of goods. [11] There are no transactions for purchase of goods and materials and sale of goods, materials and services made by the Company in pursuance of contracts or arrangements entered in the Registers maintained u/s 301 and aggregating during the year to Rs. 50,000/- or more in respect of each party. [12] As explained to us, the Company has a procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. We are informed by the management that no such unserviceable or damaged materials were determined during the year under review. [13] The Company has not accepted any deposits from the public within the meaning of Section 58-A of the Companies Act, 1956, and the Rules framed thereunder during the year under review. [14] In our opinion, reasonable records have been maintained by the Company for the sale and disposal of realisable by products and scrap (waste). [15] The Company has appointed a firm of Chartered Accountants as its internal auditors for the year under review. On the basis of the reports made by the internal auditors to the management, in our opinion, the Internal Audit System is commensurate with the size and nature of the business of the Company. [16] The Central Government has not prescribed maintenance of cost records u/s 209(1)(d) of the Companies Act, 1956 for the products of the Company. [17] According to the records of the Company, PF and ESI dues have been generally regularly deposited with the appropriate authorities. [18] According to the information and explanations given to us, no undisputed amounts payable in respect of Income-tax, Wealth-tax, Sales-tax, Customs Duty and Excise Duty were outstanding as at 31st March, 1998 for a period of more than six months from the date they became payable. [19] According to the information and explanations given to us, no personal expenses of the employees or Directors have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice. [20] The Company is a Sick Industrial Company within the meaning of Section 3(1)(O) of Sick Industrial Companies (Special Provisions) Act, 1985 and as informed to us a reference will be made to the BIFR u/s 15 of the said Act. [21] The Company has maintained record of the transactions and contracts of dealing or trading in shares and timely entries have been made therein. For C.C. CHOKSHI & CO. Chartered Accountants Place: Ahmedabad H.P. SHAH Dated: 17th April, 1998 Partner