Somani Swiss Industries Ltd Auditors Report.

SOMANI SWISS INDUSTRIES LIMITED AUDITORS REPORT TO THE SHAREHOLDERS OF SOlANI SWISS INDUSTRlES LIMITED We have audited the attached Balance Sheet of As. SOMANI SWISS INDUSTRIES LIMITED. as at 31st March, 1998 and the Profit & Loss Account for the year ended on that date annexed thereto and report that:- A. As required by The Manufacturing and other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227 (4-A) of the Companies Act, 1956 and on the basis of information and explanations given to us and on such checks as we considered appropriate in normal course of audit, we state that:- 1. The Company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. The fixed assets of the Company have been physically verified by the Management and no discrepancies have been noticed on such verification . 2. None of the fixed assets have been revalued during the year. 3. (a) The Stock of finished goods, stores, spare parts and raw materials have been physically verified by the Management at reasonable intervals during the year. (b) 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. (c) The discrepancies noticed on verification between the physical stocks and the book records are not material. (d) In our opinion, based on such verification of stocks as deemed necessary the valuation of stocks is fair and proper and in accordance with normally accepted accounting principles and on the same basis as in preceding year. 4. The terms and conditions on which the loans have been obtained from parties listed in the Register maintained under section 301 and 370(1-B) are not prima facie prejudicial to the interest of the Company. 5. The loans and advances in the nature of loans given by the Company are repayable on demand alongwith interest wherever applicable and interest thereon have been paid during the year. 6. As explained to us and in our opinion the Company has an adequate internal control procedure commensurate with the size of the Company and the nature of its business for purchase of stores, raw materials including components, plant & machinery, equipment and other assets and for the sale of goods. 7. As per information given to us, the transactions for purchase of goods and services made in pursuance to contracts or arrangements entered in the Register maintained under Section 301 of the Company Act, 1956 and aggregating during year to Rs. 50,000/- or more in respect of each party, have been made at prices which are reasonable having regard to prevailing market prices for such goods. material or services or the prices at which transactions for similar items have been made with other parties. 8. The Company has not accepted any deposit from the public within the meaning of Section 58 A of the Companies Act, 1956 and Rules framed thereunder. 9. As explained to us, there is no significant by-products and scraps. 10. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. 11. Provident Fund and Employees State Insurance dues generally have been regularly deposited with the appropriate authority. 12. To the best of our information and explanations given to us, there was no amount outstanding as on 31st March, 1998 in respect of undisputed Income Tax, Sales Tax, Custom Duty which were due for more than six months from the day become payable. 13. On the basis of our examination of records and according to the information and explanations given to us, no personal expenses have been charged to revenue account. 14. The other provisions of the aforesaid order are not applicable to the Company. In respect of Service Activities 1. In our opinion, the Company has a reasonable system of recording receipts, issue and consumption of materials & stores and allocating materials consumed to related jobs commensurate with the size and nature of its business. 2. In our opinion, there is an adequate system of authorization at proper levels with necessary control on issue of the Company and the nature of its business. In respect of Trading Activities We are informed there have been no damaged goods, hence making of provision, if any, does not arise. B. Further to our comments in paragraph "A" above, we report that :- 1. 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. 2. Proper books of accounts as required by law have been kept by the Company so tar as appears from our examination of such books. 3. The Balance Sheet and Profit Loss Accounts referred to in this report are in agreement with the books of accounts. 4. In our opinion and to the best of information required by the Company Act, 196 in the manner so required and give a true and fair view - (a) In so far as it relates to balance Sheet of the State of affairs of the Company as at 31st March, 1998. (b) In so far as it relates to Profit & Loss Account of the profit of the Company for the year ended on that date. 209, Gupta Tower, For PRAMOD KUMAR & CO., Azadpur Commercial Complex, CHARTERED ACCOUNTANTS Near Akash Cinema, Azadpur, Delhi - 110 033 Date 27th June, 1998 SANDEEP GOEL PARTNER