sumex chemicals ltd Auditors report
SUMEX CHEMICALS LIMITED
ANNUAL REPORT 1999-2000
AUDITORS REPORT
The Members of SUMEX CHEMICALS LIMITED, Mumbai-400 053.
I have audited the attached BALANCE SHEET of SUMEX CHEMICALS LIMITED as at
31st March, 2000 and also PROFIT & LOSS ACCOUNT for the year ended on that
date annexed thereto. I report as follows:
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. I annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said order.
2) Further to my comments in the Annexure referred to in paragraph (1)
above:
a) I have obtained all the information and explanations, which to the best
of my knowledge and belief were necessary for the purpose of my audit.
b) In my opinion, proper books of account as required by law have been kept
by the company so far as appears from my examination of the books.
c) The BALANCE SHEET and the PROFIT & LOSS ACCOUNT are in agreement with
the books of account and comply with the accounting standards referred to
in the section 211(3C) of the Companies Act, 1956.
d) Subject to notes in schedule 14 relating to non provisions for disputed
sundry debtors, liability for gratuity and leave encashment tax at source
and debenture redemption fund, in my opinion and to the best of my
information and according to the explanations given to me, the said
accounts SUBJECT to and read with the NOTES to the accounts as given in
schedule 14 give the information 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 31st March 2000 and
ii) In the case of the PROFIT & LOSS ACCOUNT of the LOSS of the company for
the year ended on that date.
For ANAND JAIN & ASSOCIATES
Chartered Accountants
Place: Mumbai Anand Raj Jain
Dated: 30th June 2000 Proprietor
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH (1) OF MY REPORT
OF EVEN DATE:
1) The Company has compiled all the details relating to Fixed Assets except
furnitures, fittings and office equipments showing full particulars
including the quantitative details and situation thereof. It is stated by
the management that physical verification of Fixed Assets has been carried
out once during the year There is no discrepancy noticed by the management
on such verification.
2) None of the fixed assets is revalued during the year.
3) In accordance with the explanations given, the stocks of finished goods,
stores, spare parts and raw materials have been physically verified during
the year by the management. In my opinion, having regard to nature and
location of stock, the frequency is reasonable.
4) The procedure of physical verification of stocks followed by the
management, in my opinion is reasonable and adequate in relation to the
size of the company and the nature of its business.
5) In my opinion and on the basis of the information and explanations
received, the discrepancies noticed between the physical stocks and the
book records as verified by the management were not material and have been
properly dealt within the books of account.
6) In my opinion and on the basis of examination of the stock records, the
valuation of stocks is fair and proper in accordance with the normally
accepted accounting principles and is on the same basis as in the preceding
year except that the unutilized amount of Modvat has been added in the
closing stock of raw materials.
7) According to the information and explanations given to me, loans and
advances in the nature of loans are taken from the companies, firms,
directors etc., as listed in the Register maintained under section 301 of
the Companies Act, 1956 without any stipulation of terms and conditions as
to repayment, security and interest. There are no companies under the same
management as defined under section 370(1 B) of the Companies Act 1956.
8) In my opinion and according to the information and explanations given,
the company has not granted unsecured loans and advances in the nature of
loans to Companies Act as listed in the register maintained under section
301 of the Companies Act, 1956.
9) In my opinion and according to the information and explanations given,
in case of other loans and advances in nature of loans no terms and
conditions are stipulated as to rate of interest, security and repayment as
referred to in note no. 9C(i) of schedule 14. To that extent they are
prejudicial to the interest of the company.
10) In my opinion and according to the information and explanations given
to me, there is adequate internal control procedures commensurate with the
size of the company and the nature of its business for the purchase of
stores, raw materials including components, equipments and other assets and
for the sale of goods.
11) The company has not entered into any transaction of purchase of goods,
materials 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 period to Rs. 50,000/- or more in respect of
each party.
12) In accordance with the information and explanations given to me there
are no unserviceable or damaged stores, raw materials and finished goods at
the end of the year.
13) As per explanations and information given to me company has not
accepted any deposits as contemplated u/s. 58A of the Companies Act, 1956
during the year.
14) In my opinion and on the basis of explanations given, the company has
maintained records for disposal of scrap. The company has no by-product.
15) According to the records of the company and explanations given to me
the dues of the Provident Fund and Employees State Insurance Scheme have
not been deposited. The amount outstanding payable at the end of the year
is Rs. 5.93 Lacs (6.60 Lacs).
16) According to the information and explanations given, the company does
not have any undisputed amount payable in respect of Wealth Tax, Excise and
Customs Duty at the last day of the Financial Year for a period of more
than Six Months from the date they become payable except Income Tax
(T.D.S.) and Sales Tax.
17) In my opinion and according to the information and explanations given
to me and records examined by me, no personal expenses have been charged to
revenue account, other than those payable under contractual obligations or
in accordance with generally accepted business practices.
18) The company has been declared a Sick Industrial Undertaking within
meaning of clause (0) of sub-section (1) of section 3 of the Sick
Industrial Companies (Special Provisions) Act.
For ANAND JAIN & ASSOCIATES
Chartered Accountants
Place: Mumbai Anand Raj Jain
Dated: 30th June 2000 Proprietor