shree yaax pharma and cosmetics ltd Auditors report

SHREE YAAX PHARMA AND COSMETICS LIMITED ANNUAL REPORT 2002-2003 AUDITORS REPORT To, The Shareholders of M/s. Shree Yaax Pharma and Cosmetics Limited We have audited the attached Balance Sheet of SHREE YAAX PHARMA AND COSMETICS LIMITED, Ahmedabad as at 31st March, 2003 and the profit and loss account for the year ended on that date and we report as under. 1. We have audited the attached Balance Sheet of SHREE YAAX PHARMA AND COSMETICS LIMITED, Ahmedabad as at 31st March, 2003 and also the Profit and Loss Account for the period ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation, We believe that our audit provides reasonable basis for our opinion. 3. We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit; 4. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books; 5. In our opinion, the Profit and Loss account and Balance Sheet comply with the Accounting Standard referred to in sub-section 3(C) of section 211 of the Companies Act, 1956; 6. The Balance Sheet and the Profit and Loss account dealt with by this report are in agreement with the books of accounts; 7. On the basis of information given to us and records presented before us, no director is disqualified from being appointed as a director of the company under clause (g) of sub-section(1) of section 274 of the Companies Act, 1956. 8. In our opinion and to the best of our information and according to the explanation given to us, the said accounts, referred to above, and read together with the schedules and other notes annexed to the accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view: (a) in the case of Balance Sheet, of the state of affairs of the company as at 31st March, 2003; and (b) in the case of Profit and Loss account, of the Profits 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 we consider appropriate, we further state that: 1. The company is maintaining proper records to show full particulars including quantitative details and situation of fixed assets. The management has physically verified most of the fixed assets of the company. As informed to us, no material discrepancies were noticed on such verification. 2. None of the fixed assets has been revalued during the year. 3. As informed to us, the stock of raw material and finished goods held by the company, have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. 4. 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. As informed to us, there were no discrepancies noticed on physical verification of stocks. 6. In our opinion, the valuation of stock is fair and proper in accordance with the normally accepted accounting principles. 7. As per the information given to us, during the year under review, the company has not taken any loans, secured/unsecured from companies/firms/parties listed in register maintained under section 301 of the Companies Act, 1956 and as explained to us, there are no companies under the same management within the meaning of section 370(1B) of the Companies Act, 1956. 8. As per the information given to us, during the year under review, the company has not granted any loans, secured/unsecured, to companies/firms/parties listed in the register maintained under section 301 of the Companies Act, 1956 and as explained to us, there are no companies under the same management within meaning of section 370(1B) of the Companies Act, 1956. 9. In respect of Loans and Advances of the nature of loans given by the company, parties have not generally repaid the principal amount as stipulated and have been regular in payment of interest, wherever applicable. 10. On the basis of checks carried out during the course of audit and as per explanation given to us, there is adequate internal control procedure commensurate with the size of the company and nature of its business. 11. According to the information and explanation given to us, the transaction for the purchases during the year of goods and materials or components and sales of goods and services made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 as aggregating during the year Rs.50000 or more in respect of each of the firms or companies or other parties in which directors are interested, have been made at the prices which are reasonable having regard to the prevailing market prices for such goods. 12. There are no unserviceable or damaged stores, raw materials or finished goods items for the year under review, 13. As per the information given to us and on the basis of records presented before us, the company has not accepted any public deposits during the year. 14. The company has no realizable by-products, and/or scraps during the year under review. 15. According to the information and explanations given to us, there is adequate internal audit system corresponding to size and nature of business of the company. 16. As informed to us, there are no cost records prescribed by the Central Government in pursuant to section 209(1)(d) of the Companies Act, 1956. 17. As per the information and explanation given to us, provident fund and employees state insurance payments are not applicable to the company. 18. According to the information and explanation given to us, there were no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty which have remained outstanding as at 31st March, 2003 for a period of more than six months from the date they become payable. 19. According to the information and explanation given to us, and as certified by the management, personal expenses have not been charged to revenue account other than payable under contractual obligations or in accordance with normal business practice. 20. The company is not sick industrial company within the meaning of clause (o) of sub-section 3 of the Sick Industrial companies (Special Provision) Act, 1985 (1 of 1986). For NAIMISH K. SHAH & CO. Chartered Accountants Date : 04/09/2003 NAMISH K. SHAH Place: Ahmedabad Proprietor