top telemedia ltd Auditors report

TOP CASSETTES LTD. ANNUAL REPORT 2000-2001 AUDITORS REPORT To, The Members of Top Cassettes Limited. Pune We have audited the attached Balance Sheet of Top Cassettes Limited as at 31st March, 2001 and Profit & Loss Account for the Year Ended on that date, annexed there to and 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] In our opinion, proper books of account as required by law have been kept by the company, so far as appears from our examination of the books of account. 3] The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account. 4] In our Opinion, the Balance Sheet and the Profit and Loss Account dealt with by this report are prepared in compliance with the Accounting standards referred to in section 211(3C) of the Companies Act, 1956. 5] On the basis of confirmation received from the directors and taken on record by the Board of Directors, none of the director is disqualified from being appointed as a director as on 31st March 2001 under Section 274(1) (g) of the Companies Act, 1956. 6] In our opinion and to the best of our information and according to the explanations given to us, the annexed accounts together with notes thereon, 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, 2001. AND ii) In the case of the Profit a& Loss Account of the Profit 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(4-A) of the Companies Act 1956, and on the basis of such checks of the books and records of the company, as were considered appropriate, we further state that 1] The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on comparison with the book records. In our opinion, the frequency of the verification is at reasonable intervals. 2] None of the Fixed assets has been revalued during the year. 3] We have been informed that the stocks of finished goods, packing materials, raw materials, merchanting goods have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable and adequate in relation to the size of the company and nature of its business. 4] According to the information and explanation given to us, in our opinion, the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. 5] No material discrepancies have been noticed on physical verification of stocks as compared to book records. 6] In our opinion, 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. 7] According to the information and explanations given to us, the Company has not, during the year taken any loans, secured or unsecured from companies, firms or other parties listed in the registers maintained under Section 301 of the Companies Act, 1956. In terms of sub-section (6) of section 370 of the Companies Act 1956, provisions of section 370 are no longer applicable to a company since 31st October, 1998. 8] According to the information and explanations given to us, the Company has not, granted any loans, secured or unsecured to companies, firms or other parties listed in the registers maintained under Section 301 of the Companies Act, 1956. In terms of sub-section (6) of section 370 of the Companies Act 1956, provisions of section 370 are no longer applicable to a company since 31st October, 1998. 9] As per the information furnished to us, the company had given loans and advances in the nature of loans. Some parties are not paying the principal and/or Interest, wherever applicable. However company has taken effective steps to recover the amount due to them. 10] In our opinion, and according to the information and explanations given to us, Company has adequate internal control procedures commensurate with the size and nature of its business with regard to purchase of materials, Plant & Machinery, equipment and other assets and for the sale of goods. 11] In our opinion and according to the information and explanations given, to us the company has no transactions of sale of goods, materials and services aggregating during the year Rs.50000/- or more in value from/to any of the party listed in the register maintained under section 301 of the Companies Act, 1956. Company has purchase of software from party covered under section 301 of the Act, this being a technical product made as per need of the company, the prices paid are considered to be reasonable as compared to the prices quoted by other parties. 12] As explained to us stocks were verified by the management with a view to determine unservicable or damaged finished goods end adequate provision has been made in the accounts for the loss arising on the items so determined. 13] The company has not accepted any deposits in contravention of provisions of Section 58-A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975. 14] According to the information and explanations given to us, the company does not have any by-products or scrap. 15] According to informations and explanations given to us and records of the company examined by us, during the year company have not deposited the Employees Provident Fund dues and Employee State Insurance dues, with appropriate authorities. At the close of the year Rs.202085/- and Rs. 195610/- were overdue on account of Provident Fund and Employee State Insurance Contribution respectively. 16] In our opinion the Company has internal audit system commensurate with the size and the nature of its business. 17] We are informed that the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 for the year under review, are not applicable since the company does not have any manufacturing activities. 18] According to the information and explanations given to us, 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 2001 for a period of more than six months from the date they became payable. 19] According to the information and explanation given to us and the records of the company examined by 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 our opinion, 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 (Special Provisions) Act, 1985. 21] In our opinion and according to the information and explanation given to us, the company has maintained proper record of transactions and contracts as to dealing in shares, and timely entries have been made therein. However, no trading stock of shares held as at the year end. For ASHOK KHASGIWALA & CO., CHARTERED ACCOUNTANTS sd/- AHMEDABAD Ashok Khasgiwala DATE : 23.08.2001 (Partner)