siddhi vinayak metal ltd Auditors report

SIDDHI VINAYAK METAL COMPANY LIMITED AUDITORS REPORT The Shareholders M/S. SIDDHI VINAYAK METAL CO. LTD. We have audited the attached Balance Sheet of M/s. Siddhi Vinayak Metal Co. Ltd., as at 31st March, 1998 and also the profit & Loss Account of the Company for the year ended on that date, annexed thereto and report that: a) We have obtained all the informations 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 accounts as required by law have been kept by the company. So far as it appears from our examination of such books. c) The Balance Sheet, Profit & Loss Account dealt with by the report are in agreement with the books of the company. d) In our opinion and to the best of our information and according to the explanations given to us, the accounts subject to notes and schedules thereon give the information required by companies Act, 1956 in the manners so required and present a true and fair view. a) In the case of Balance Sheet of the State of affairs of the company as at 31st March, 1998; and b) In the case of the Profit & Loss Accounts of the profit for the year ended on 31st March, 1998. FOR V.K. MOONDRA & CO. CHARTERED ACCOUNTANTS (V.K. MOONDRA) PROPRIETOR PLACE: AHMEDABAD DATE : 18.06.1998. ANNEXURE TO THE AUDITORS REPORT As required by 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 terms of such check as we considered appropriate and according to the confirmation and explanation given to us during the course of our Audit, we further state that: i) The Company has maintained proper records showing full particulars including quantitative and situation of fixed assets. As informed to us by the Management the fixed Assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. ii) None of Fixed assets of the company have been revalued during the year. iii) The Stock of finished goods, stores, spare parts and raw materials have been physical verified by the management during the year. In our opinion, the procedures followed by the management with regard to physical verification of stocks as aforesaid are adequate in relation to the size of the company and the nature of its business. There were no material discrepancies noticed between the stocks as per physical verification and stocks as per books records. In our opinion the valuation of the above mentioned stocks is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the earlier year. iv) The rate of the interest and other terms and conditions of loans taken from 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 to of the company. As informed to us, there are no companies under the same management as defined under sub section (1-B) at section 370 of the companies Act, 1956. v) The company has not given unsecured loans to the companies firms or other parties listed in register maintained under section 370 and companies under same management as defined under section 370 (1-B) of the companies Act, 1956. vi) The principal amounts and interest thereon wherever applicable in respect of loans and advances in the nature of loans given by the company have been recovered regularly wherever stipulated. vii) In our opinion and according to the information and explanation given to us, there are adequate internal control procedure commensurate with the size of the company and nature of its business with regards to purchase of stores and spares, raw materials, plant and machinery equipments and other assets and for the sales of goods. viii) According to the information and explanations given us the transaction of sale and purchase of goods and materials made in pursuance of contracts or arrangements entered in register maintained under section 301 of the companies Act, 1956 and aggregating during the year to Rs.50000/- or more in respect of each party have been made at prices which are reasonable having regard to prevailing market prices for such, and materials or the prices at which transactions for similar goods have been made with other parties. ix) In our opinion and according to the information and explanation given to us the company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods and adequate provision has been made in the accounts for the loss arising on the items so determined. x) In our opinion and according to the information and explanations given to us the company has prima facie complied with the provisions of section 58A of the companies Act, 1956 and the companies (Acceptance of deposits) rules 1975 with regard to the deposits accepted from the public. xi) In our opinion reasonable records have been maintained by the company for the sale and disposal of scraps. We are informed that the company does not have any by-products. xii) In our opinion the company has an adequate internal audit system commensurate with the size of the company and nature of its business. xiii) We are informed that the Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for any of the companys products. xiv) P.F. and E.S.I. dues are generally paid in time to the concerned authorities. xv) There are no undisputed amount payable in respect of Income Tax, Sales Tax, Custom Duty and Excise duty outstanding for more than six months as at the end of the year. xvi) According to information and explanation given to us, no personal expenses of employees, Directors have been charged to revenue account other than those payable under contractual obligations and incurred during the normal courses of business. xvii) 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 (Under Special Provisions Act, 1985). xviii) According to the information and explanation given to us. In respect of trading activities, there was no damaged goods as on 31.03.1998. FOR V.K. MOONDRA & CO. CHARTERED ACCOUNTANTS (V.K. MOONDRA) PROPRIETOR PLACE : AHMEDABAD DATE : 18.06.1998.