options chain Auditors report

HITECHI JEWELLERY INDUSTRIES LIMITED ANNUAL REPORT 2000-2001 AUDITORS REPORT To The Members Hitechi Jewellery Industries Limited Mumbai - 400 002. We have audited the attached Balance Sheet of Hitechi Jewellery Industries Limited as at 31st March, 2001and also Profit & Loss account of the Company for the year ended on that date 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 purpose of our audit. 2. In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books. 3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account. 4. In our opinion and to the best of our information and according to the explanations given to us the said Balance Sheet and Profit and Loss accounts read together with the notes thereon and attached thereto, comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. 5. In our opinion, and based on information and explanations given to us, none of the Directors are disqualified as on 31st March, 2001 from being appointed as Directors in terms of Clause (g) of subsection (1) of section 274 of the Companies Act, 1956. 6. In our opinion and to the best of our information and according to the explanations given to us the said accounts read with the notes in Schedule `P and particularly the sub-note 2 to 11 regarding impractacability of furnishing certain quantitative information, 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, 2001 and ii) In the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date: 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 as were considered appropriate and according to the information and explanation given to us during the course of audit, we further state that: 1. The Company is in the process of updating its record to show full particulars including quantitative details and situation of fixed assets. As explained to us the assets have been physically verified by the management at regular intervals. Discrepancies, if any, will be accounted during the course of updating the fixed assets register. Frequency of the verification in our opinion is reasonable. 2. None of the Fixed Asserts have been revalued during the year. 3. In our opinion and according to the information and explanations given to us, the physical verification of finished goods and raw materials was conducted at the year end. In our opinion considering the nature of the business, physical verification of stock should be more frequent. 4. In our opinion and according to the information and explanations given to us, the Procedure of physical verification of stock followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business. 5. As informed, there were no material discrepancies noticed on physical verification of stock as compared to book records wherever applicable considering the operations of the Company and the same have been properly dealt with in the books of account. 6. In our opinion and according to the information and explanations given to us, the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year. 7. In our opinion, the rate of interest and the terms and conditions on which loans have been taken from companies, firms or other parties listed ire the register maintain under section 301 and 370(1C) of the Companies Act, 1956, wherever applicable, are not prima facie prejudicial to the interest of the company. 8. The company has not granted any loans to parties listed in the register maintained U/s 301 of the Companies Act, 1956, We have been informed that there is no company under the same management within the meaning of section 370 (1B) of the Companies Act 1956. 9. The company has not given any loans or advances in the nature of loans. 10. The company does not have adequate system of internal control for the purchase of raw materials, plant and machinery, equipment and other similar assets and sale of goods, commensurate with the size of the company and nature of its business. The existing system needs to be strengthened, organised and formalised. 11. In our opinion and according to the information and explanations given to us, the transaction of purchase of goods and materials and sales of goods, materials and services, made in pursuance of contract or arrangement entered in the register maintained U/s 301 of the Companies Act, 1956, and aggregating during the year to Rs.50,000/- or more in respect of each party, have been made at prices which are reasonable having regard to prevailing market price for such goods, materials or services, where such market prices available with the Company or the prices at which transaction for similar goods, or services have been made with other parties. 12. As explained to us, the Company has regular procedure for determination of unserviceable or damaged raw materials and finished goods. According to information and explanations given to us, adequate provision has been made in accounts for the loss arising on the items so determined. 13. We are informed that the company has not accepted any deposit from the public. 14. According to information and explanation given to us, their are no by- products arising from the manufacturing activity of the company. As explained to us, the value of realisable scrap being insignificant, quantitative records are maintained. 15. The company does not have any internal audit system. 16. We are informed that the Central Government has not prescribed maintanence of cost record under Section 209(1)(d) of the Companies Act, 1956. 17. As per information and explanation given to us by the Company, the Employees provident Fund and Miscellaneous Provisions Act, 1952 and the Employees State Insurance Act 1948 are not applicable to the Company. 18. As per information and explanation given to us, there was no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty and Central Excise duty which have remained outstanding as on 31st March 2001 for a period of more than six months from the date they became payable. 19. According to information and explanation given to us no personal expenses 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 not a Sick Industrial Company within the meaning of Clause `O of sub-section (1) of section 3 of the Sick Industrial Companies (Special) Provisions Act, 1985. For K.P. Joshi & Co. Chartered Accounts Place : Mumbai K.P. Joshi Date : 31st August, 2001 Proprietor