varun polymol organics ltd Auditors report

VARUN POLYMOL ORGANICS LIMITED ANNUAL REPORT 2002-2003 AUDITORS REPORT To The Members VARUN POLYMOL ORGANICS LIMITED We have audited the attached Balance Sheet of M/s VARUN POLYMOL ORGANICS LIMITED as at 31st March, 2003 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements all the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 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 as about assurance about the financial statements are free of material statements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in the it financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, a well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and other Companies (Auditors Report) Order 1988 issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order. 2. Further to our comments in the Annexure referred to in paragraph 1 above. (a) In our opinion the Company cannot be said to be a going concern as the measures to revive it do not seem to be getting the necessary results. Consequently in our opinion adjustments are required to be made to the amount at which assets and liabilities are recorded and classified. The financial statements (and notes thereto) do not disclose this fact. (b) 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 these books. (c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account. (d) The accounts have been prepared on principles applicable to a going concern despite significant erosion in net worth. (e) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies act, 1956. (f) On the basis of written representations received from the directors as on 31st March, 2003 and taken on record by the Board of Directors is disqualified as on 31st March 2003 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. (g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required and give a true and fair view in conformity with the accounting principles generally accepted in India. i) In the case of the Balance Sheet, of the state of affairs of affairs of the company as at 31st March, 2003; and ii) In the case of the Profit & Loss Account, of the LOSS for the year ended on that date. For and on behalf of THANAWALA & COMPANY Chartered Accountants Place: Mumbai V.K. Thanawala Date : 14.7.2001 Proprietor ANNEXURE TO AUDITORS REPORT The Annexure referred to in paragraph 1 of the auditors report to the members of Verun Polymol Organics Limited for the year ended March 31, 2003. We report that 1. The company has maintained proper records showing full particulars inducing quantitative details and situation of fixed appeals. None of the fixed assets have been physically verified by the Management during the year 2. None of the fixed assets have been revalued during the year. 3. The company has taken unsecured interest free loans tram company, firms or other ponies listed in the register, maintained u/s 301. The terms & conditions on which loans have been obtained are not prima facie, prejudicial to the interest of the company. 4. The company has not granted any loans secured or unsecured to companies, firms or other panes listed in the register maintained under section 301 of the Companies Act, 1956. 5. In respect of interest free Loans & Advances in the nature of Loan given by the company to the employee repayments of the principal amount as stipulated are not being done. 6. The Company has not made any Purchase of goods and material and sale of goods, materials & services aggregating to more than Rs. 50,000/- during the year from a company in which Directors are interested as listed in Register maintained U/s 301 of the Companies Act, 1956. 7. In our opinion and according to the information and explanation given to us, the Company has complied with the provision of section 58 A of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975, with regard to the deposits accepted from the public. 8. No Internal Audit of the company is carried out as the Company has been referred to BIFR and operations remain suspended during the year. 9. According to the books and records examined by us and the information and explanations given to us, them 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 became payable. 10. The company has not maintained any inventories during the year and consequently, paragraph 4(a) (iii) to 4(A) (vi), 4(A) (xii) 4(A)(xiv) and 4(A) (vi) at the Manufacturing and Other Companies [Auditors Report] Order, 1988, are not applicable in relation to its activities. 11. The Company is a tick industrial Company within the meaning of Clause (o) of Section 3 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985. For and on behalf of THANAWALA & COMPANY Chartered Accountants sd/- V.R. Thanawala Place : Mumbai Proprietor Date : 28.4.2003