pertech computers ltd Auditors report

1996 PERTECH COMPUTERS LIMITED AUDITORS REPORT We have audited the attached Balance Sheet of PERTECH COMPUTERS LIMITED as at 31st December, 1996 and the annexed Profit & Loss Account for the period ended on that date. We 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 enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order to the extent applicable to the Company. 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 the books. c. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account. d. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 subject to note 8 regarding the provision for taxation which is made on the basis of income of the year ending 31st March, 1996 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 December, 1996 and ii) In the case of Profit and Loss Account, of the profit of the Company for the year ended on that date. ANNEXURE TO AUDITORS REPORT 1. The Company has maintained proper records, showing full particulars including quantitative details and situation of fixed assets. The fixed assets have been physically verified according to the phased programme designed to cover all the items over a period of 4 years over all locations. Pursuant to the programme, a physical verification was carried out during the year and this revealed no serious discrepancies. 2. The Company has not revalued any of the fixed assets. 3. Physical verification has been conducted by the management at reasonable periods in respect of finished goods and stores and spare parts. 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. The discrepancies noticed on such verification as compared to the book records which were not significant, have been properly dealt within the books of account. The valuation of these stocks is fair and proper in accordance with normally accepted accounting principles and is on the same basis as in the previous year. 4. In our opinion the rates of interest and other terms and conditions of loans taken by the Company during the year from companies, firms and other parties listed in the register maintained under Section 301 and 370 (1-C) of the Companies Act, 1956 or which are otherwise under the same management as this company, are not prima facie prejudicial to the interests of the company. 5. In respect of loans and advances in the nature of loans given by the company to staff and other parties, the repayment of principal and interest, where charged are in accordance with the stipulated terms. Apart from the above the company had given advances to certain parties where no terms have been stipulated. Such loans are not prima facie prejudicial to the interest of the Company. 6. In our opinion the internal control procedures of the Company relating to purchases of stores, raw materials including components, plant and machinery, equipment and other similar assets and sale of goods are commensurate with the size and nature of business of the company. 7. The prices paid for the purchase of stocks, raw materials of components, services or received for sales of goods exceeding Rs. 50,000/- in value of each party thereof, from firms or companies or other parties in which Directors are interested as listed in the register maintained under Section 301 of the Companies Act, 1956 are reasonable as compared to the prices of similar items supplied by other parties or as available with the company. 8. As explained to us, unserviceable or damaged stores and raw materials and finished goods are determined by the company in a systematic manner on the basis of technical evaluation and on such basis, in our opinion, adequate amounts have been written off such stock in the accounts. 9. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A of the Companies Act, 1956 with regard to deposits accepted from the public. 10. The company has no by-product pr significant disposable realisable scrap requiring the maintenance of separate records. 11. The company has an internal audit system commensurate with its size and nature of its business. 12. Maintenance of cost records has not been prescribed by the Central Government under Section 209(1) (a) of the Companies Act, 1956 for any of the products of the Company. 13. According to the records of the Company, the Provident Fund and Employees States Insurance dues have been regularly deposited with the appropriate authorities. 14. Personal expenses except contractual obligations have not been debited to Profit & Loss Account. 15. According to the information and explanations given to us there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty as, at 31st December, 1996. 16. The company is not a Sick Industrial Company within the meaning of Clause (O) of sub-Section (I) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. 17. The nature of services rendered is such that it does not involve consumption of stores/materials and man-hours. 18. In the case of trading activities of the Company, damaged goods have been determined at the time of physical verification and properly dealt with in the books of account. For G.S. JOHAR & CO. Chartered Accountants GURJEET SINGH JOHAR Partner Place : New Delhi Dated : 27th May, 1997.