satkar electronics ltd Auditors report

SATKAR ELECTRONICS LIMITED ANNUAL REPORT 2000-2001 AUDITORS REPORT To, The Members of SATKAR ELECTRONICS LTD. MUMBAI We have audited the, attached Balance Sheet of SATKAR ELECTRONICS LIMITED as at 31st March, 2001 and also the Profit and Loss Account of the Company for the year ended on that date annexed thereto and report that- (1) As required by the Manufacturing and other Companies (Auditor Report) Order, 1988, issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 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 best of our knowledge and belief were necessary for the purpose of the audit. (b) In our opinion , proper books of account as required by law have been kept by the Company so far as it appears from our examination of the books. (c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement, with the books of accounts. (d) In our opinion explanation given to us the Profit and Loss account and Balance Sheet complied with the accounting standards referred to in clause (c) of sub section 3 of section 211 of the companies Act, 1956, subject to note no.11 in respect of retirement benefits of Part B of schedule 19 to the Balance Sheet. (e) On the basis of the written representation received from the directors of the company as at 31st March 2001 and taken on record by the Board. and as per information and explanation given, none of the directors, of the company is disqualified as on 31st March, 2001 from being appointed as a Director of the Company under clause (g) of Sub-Section (I) of Section 274 of the Companies Act. 1956. (f) In our opinion and to best of our information and according to the explanations given, to us, subject to the note No.3 in respect of non provision of Bank interest amounting to Rs. 59.96 lacs and note no. 14 nil balance in Public Share Application Money Refund A/c with U.B.I. and note no. 5,6,8,13 & 14 of part of B Schedule 19 of 1he Balance Sheet , the said Balance Sheet and Profit and Loss Account read together with the notes thereon, give the information required and give a true and fair view. (i) In case of the Balance Sheet of the state of the companys affairs as at 31st March, 2001 and (ii) In the case of the Profit and Loss Account of the Profit for the year ended on that date. FOR GUPTA SHYAM & COMPANY Chartered Accountants SD/- Munbai: MUMBAI (SHYAM S. GUPTA) Date: 20th August,2001 Proprietor ANNEXURE TO AUDITORS REPORT Referred to in paragraph (1) of our report of even date - 1. The Company has maintained proper records, showing full particulars Including quantitative details and situation of its fixed assets. As explained to us the fixed assets have been physically verified at the end of the year by the management. In our opinion, the frequency of the verification is reasonable having regard to the size of the Company and the nature of its assets. We are informed that no material discrepancies have been noticed by management on such verification as compared with the aforesaid records of fixed assets. 2. None of the fixed assets have been revalued during the year. 3. The physical verification of finished goods, semi-finished goods, stores and spares, tools and equipments and raw material 1have been conducted by the management at the end of the year. In our opinion, the frequency of verification is reasonable as per the size and nature of business of the company. 4. In our opinion and according to explanation given to us 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 stock and book records were not material and have been properly dealt. with in the books of account. 6. According to the information and explanations given to us, we are of the opinion that the basis of valuation of the stock is fair, and proper and in accordance with normally accepted accounting principals, and is on the basis as in the preceding year. 7. The Company has not taken loans, secured or unsecured, foreign Companies, firms or other parties as listed in the register maintained under Section 301 of the Companies Act, 1956. We have been informed that there are no Companies under the same management as defined under Section 370 (1B) 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 the Companies Act, 1956. We have been informed that there is no Company under the same management as defined under Section 370 (1B) of the Companies Act, 1956. 9. Company has not given loans and advances in the nature of loans to outside parties. Further Company has given interest free loans to some of the staff of the company. 10. In our opinion and according to the information and explanations given to us, the internal control procedure adopted by the Company are to be strengthened in commensurate with the size of the Company and the natures of its business with regard to purchase sales of goods. 11. As per the information & Explanation given to us there were no material unserviceable or damaged goods of raw Material, Finished Goods & Trading goods and same have been properly dealt within the books of accounts. 12. In our opinion and as per the information and explanations given to us, the transaction of sale of goods to the parties entered into the register maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs. 50,000/- or more in respect of each party are made at the prices prevailing in the market or at the price at which transaction of similar goods in entered with the other parties. 13. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit form public during the year hence the provision of Section 58(A) of the companies 1956 & rules made thereunder are not applicable to the Company. 14. As explained to us the Companys operations do not generate any significant realisable scrap. 15. As per the information & Explanation given to us the company do not have any formal Internal audit system. 16. We have been informed that the central Government has not prescribed the maintenance of cost records under Section 209 (i) (d) of the Companies Act, 1956 for the year. 17. According to the records of the Company,and information given to us, the Company is not generally regular in payment of provident fund dues, and Rs.3,48,202/- (Rs. 3,79,858/-) were arrears on this Account as on date. 18. According to the information and explanations given to us, there are no undisputed amounts payable (subject to the note no. 7 of part B of the Schedule 19 in respect of Income Tax, Wealth - Tax, Sales Tax, Custom duty and Excise Duty outstanding at the end of the financial year for a period exceeding six months from the date they become payable. 19. According to the information and explanations given to us no personal expenses of the Employees and Directors have been charged to revenue account other than those payable tinder 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) sub-Section (1) of Section 3 of Sick Industrial Companies (Special Provision) Act, 1985. FOR GUPTA SHYAM & COMPANY Chartered Accountants Sd/ Mumbai: MUMBAI (SHYAM S.GUPTHA) Date : 20th August,2001 Proprietor