scan organics ltd share price Auditors report

SCAN ORGANICS LIMITED AUDITORS REPORT TO THE MEMBERS OF SCAN ORGANICS LIMITED We have audited the Balance Sheet of SCAN ORGANICS LIMITED as at 30th June 1998 and 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 Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we annex hereto statement on the matters specified in paragraphs 4 and 5 of the said order. 2) Further to the comments in the Annexure referred to in paragraph 1 above, we report that: (a) We have obtained all the information & explanation 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 the law has been kept by the Company, so far as it 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 of the Company; (d) Subject to Note number seven, in our opinion and to the best of our information and the explanations given to us, the said Balance Sheet and Profit & Loss Account read with notes thereon, give the information as 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 30th June,1998; and (ii) In the case of the Profit & Loss Account for the period ended on that date. For PARAS JAIN & COMPANY Chartered Accountants Place: Mumbai PARAS JAIN Date: 24th October, 1998 Proprietor ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE ACCOUNT FOR THE PERIOD ENDED 30TH JUNE, 1998 OF SCAN ORGANICS LIMITED. On the basis of such checks as we considered appropriate and as per the information and explanations given to us, we state that: 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 by the management during the year at reasonable intervals. No material discrepancy has been noticed on such verification. 2) None of the fixed assets have been revalued during the year. 3) The physical verification of stocks of finished goods, spare parts and raw materials has been conducted by the management during the year at reasonable intervals. 4) The procedure of physical verification of stocks followed by the management, in our opinion, is reasonable and adequate in relation to the size of the Company and the nature of its business. 5) As per the information and explanations given to us, the discrepancies noticed on physical verification of stocks as compared to book records, which were not material have been properly dealt with in the books of account. 6) On the basis of examination of the stock records, we are of the opinion that the valuation of stock is fair and proper in accordance with the normally accepted accounting principles. 7) The Company has taken interest-free unsecured loans from the parties listed in the register maintained under section 301 of the Companies Act, 1956 and from the Companies under the same management as defined under sub- section (1B) of section 370 of the Companies Act, 1956 and the terms and conditions are not prima facie, prejudicial to the interest of the Company. 8) The Company has not granted loan to the parties listed in the register maintained under the Section 301 of the Companies Act 1956, As explained to us,there is no Company under the same Management on the company within the meaning of section 370 (1-B) of the Companies Act,1956. 9) 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, equipment and other assets and for the sale of goods. 10) Loans and advances in the nature of Loans have been given to employees who are repaying the principal amounts wherever stipulated and no interest is charged thereon. In case of other loans, the repayment of principal and/or interest is regular wherever stipulated. 11) In our opinion and according to the information and explanations given to us, the transactions of purchase of goods, materials or services made in pursuance of contracts or arrangements entered in the registers maintained under Section 301 and aggregating during the year to Rs. 50,000/- or more in respect of each party have been made at prices (Including other arrangements) which are reasonable having regard to market prices at which transactions of goods, materials or services have been made with other parties. 12) According to the information and explanations given to us the Company did not have any unsaleable or damaged stores and raw materials during the year. 13) In our opinion and according to the information and explanations given to me, the Company has not accepted any deposits under the provisions of Section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975. 14) The Company has maintained reasonable records for the disposal of scrap and by-product. 15) The Company has an adequate internal audit system commensurate with the size of the Company and the 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 any of the products of the Company. 17) According to explanations given to us, the Provident Fund is applicable to the Company but paid after due date and Employees State Insurance Scheme is not applicable to the Company. 18) According to the information and explanations given to us, the Company does not have any undisputed amounts payable in respect of Income-tax, Wealth-tax, Customs Duty and Sales tax at the last day of the Financial year, 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 have been charged to revenue account, other than those payable under contractual obligations or in accordance with generally accepted business practice. 20) In respect of the trading activities of the company we are informed that there are no damaged goods. 21) In our opinion and according to the information and explanations given to us the Company has a reasonable system of recording receipts, issues and consumption of materials and stores and allocating material consumed to the relative jobs commensurate with its size and nature of its business. 22) In our opinion and according to the information and explanation given to us the company has a reasonable system of authorisation at proper levels and adequate system of internal control commensurate with the size of the Company and nature of its business on issue of stores to jobs. 23) The Company is not a Sick Industrial Unit within the meaning of Clause (o) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. For PARAS JAIN & COMPANY Chartered Accountants Place: Mumbai PARAS JAIN Date: 24th October, 1998 Proprietor