padmini technologies ltd Auditors report

Annual Report 1999-2000 Padmini Technologies Limited AUDITORS REPORT To The Members of Padmini Technologies Limited We have audited the attached Balance Sheet of Padmini Technologies Limited as at 30th June, 2000 and the Profit and Loss account of the company for the period 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 Company Law Board in term of section 227(4A) of the Companies Act, 1956. We annexed hereto 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 those books. c) The Balance Sheet and Profit and Loss account dealt with by this/report are in agreement with the books of account d) In our opinion, the profit and loss account and balance sheet read together with Notes thereon complies with the accounting standards referred to in section 211(3C) of the Companies Act, 1956 except accounting standard -15 issued by ICAI. Subject to the foregoing, in our opinion and to the7 best of our information and according to the explanations given to us, the said accounts subject to 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 balance-sheet, of the State of affairs of the company as at 30th June 2000; and ii) In the case of profit and loss account,of the profit of the company for the period ended on that date. for ASHOK AMAR & ASSOCIATES Chartered Accountants Dated: 28.08.2000 Kailash Chandra Agrawal Place: New Delhi (Partner) ANNEXURE TO THE AUDITORS REPORT Annexure reffered to in paragraph (1) of the Auditors Report to the members of Padmini Technologies,Limited on the accounts for the period ended on 30th June, 2000. 1. The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. As explained to us, the company has a programme of physically verifying all its Fixed Assets over a period of three years. In accordance with this programme, some of its fixed assets were physically verified by the management during the period. In our opinion, the programme of verification is reasonable having regard to the size of the company and the nature of its fixed assets. The discrepencies noticed on such verification between the physical balance and fixed assets were not material and have been properly dealt with in the books of account. 2. None of the Fixed Assets has been revalued during the period. 3. According to the information and explanations given to us, the stock of finished goods, stores, spare parts and raw materials have been physically verified by the management during the period at reasonable intervals. 4. In our opinion and according to the information and explanations given to us, the procedure of the physical verification of sock followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. 5. The discrepancies noticed between the physical stock as verified and book records were not material having regard to the size of the operations of the company and have been properly dealt with in the books of account. 6. In our opinion, the valuation of stores 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 terms and conditions on which loans have been taken from the companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are prima facie not prejudicial to the interest of the company. We are informed that there are no companies under the same management as defined under section 370 (IB) / 372A of the Companies Act, 1956. 8. 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 Companies Act, 1956 or to companies under the same management as defined under section 370(1B) of the Companies Act, 1956. 9. In respect of interest free temporary loans given by the company to the employees repayment of principal amount is being made as stipulated. 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 the purchases of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to the sale of goods. 11. In our opinion and according to the information and explanations given to us, the transaction of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangement 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 been made at prices which are reasonable having regard to the prevailing market price of such goods, materials and services. 12. As explained to us, unserviceable or damaged stores, raw materials and finished goods are determined by the Company and adequate provisions have been made in the accounts for loss so determined. 13. According to the information and explanations given to us, the company has not accepted any deposits from the public in contravention to section 58A of the Companies Act, 1956 and the rules made thereunder. 14. In our opinion, the company has maintained reasonable records for sale and disposal of scrap. As explained to us the manufacturing process of the Company does not give rise to any by-product. 15. According to the information and explanations given to us, the company has in house internal audit system. However in our opinion the same is required to be strengthen to make it commensurate with the size and nature of its business . 16. The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the product of the company. . 17. According to the records of the company, Provident Fund & Employees State Insurance dues have generally been regularly deposited during the period with the appropriate authorities although there were slight delays in some case. The arrears of P F. Rs. 3.23 lacs and ESI Rs. 2.34 lacs as at June 30, 2000 have been deposited upto 28.08.2000. 18. According to the information and explanations given to us, there was no undisputed amount payable in respect of Income-tax/ Wealth-tax, Sales-tax, Custom Duty as at June 30, 2000 for the period of more than six months from the date they become payable except sales tax Rs. 6.23 lacs (Deposited upto 28.08.2000), Interest on TDS Rs. 2.89 lacs (Deposited upto 28.08.2000), Corporate Dividend Tax (CDT) and interest on CDT. The liability towards Income-tax for pending assessments is yet to be ascertained. 19. According to the information and explanations given to us, no personal expenses of employees and 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 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. 21. According to the information and explanations given to us, there were no damaged goods in the case of goods purchased for resale. for ASHOK AMAR & ASSOCIATES Chartered Accountants Dated: 28.08.2000 Kailash Chandra Agrawal Place: New Delhi Partner