Vinsari Fruitech Ltd Auditors Report.

VINSARI FRUITECH LIMITED ANNUAL REPORT 2000-2001 AUDITORS REPORT To The Members of VINSARI FRUITECH LIMITED We have audited the attached Balance Sheet of VINSART FRUITECH LIMITED as at 30th June, 2001 and also the Profit and Loss account of the company for the period of fifteen months ended on that date annexed thereto: We 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 Companies Act, 1956 and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us during the course of audit, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order. 2. Further to out comments in the annexure referred to in paragraph 1 above. a) We have obtained all the information and explanations which to the best of our knowledge and belief was necessary for the purpose of our audit. b) In our opinion, proper books of account 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 and Profit and Loss Account referred to, in this report are in agreement with Books of Account. d) In our opinion, the Profit & Loss Account and the Balance Sheet comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 e) In our opinion and to the best of our information and according to the explanations given to us, the said Balance Sheet and Profit and Loss account read together with the 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, the state of affairs of the company as at 30th June, 2001 and ii) In the case of profit and loss account, the profit of the company for the period of fifteen, months ended on that date. f) On the basis of the written representations received from the directors as on 30th June 2001 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th June, 2001 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies Act, 1956". For E. Phalguna Kumar & Co., Chartered Accountants Sd/- E. PHALGUNA KUMAR Partner Place : Tirupati Date : 29.09.2001 AMNEXURE TO THE REPORT OF THE AUDITOR 1. The Company is maintaining proper records to show full particulars including quantitative details and situation (if fixed assets, but the same was not updated as on 30-06-2001. We are informed that fixed assets have been physically verified by the management and no material discrepancies were noticed. 2. None of the fixed assets have been revalued during the year. 3. As explained to us, the stocks of finished goods, stores, components, spare parts and raw-materials have been physically verified by the management during the year. 4. In our opinion and according to the information and explanations given to us, 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. 5. No material discrepancies have been noticed during the physical verification of stocks as compared to book records. 6. On the basis of our examination of stock records, we are of the opinion that the valuation of stocks is fair and proper, in accordance with the normally accepted accounting principles and basis of valuation of stocks is same as in the preceding year. 7. The company has taken unsecured loans from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956, the terms and conditions of which are prima facie not prejudicial to the interests of the company. 8. The company has not granted any loans, secured or unsecured to companies, firms car other parties in the register maintained under section 301 of the companies act, 1956 and to companies under the same management as defined under sub section (1B) of section 3?0 of the Companies Act, 1956. 9. The company has not granted any loans & advances in the nature of loans 10. In our opinion and according to their information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of its business, with regard to the purchase of stores, raw materials including components, plant and machinery,, equipment and other assets and with regard to sale of goods. 11. In our opinion and according i o the information and explanations given to us, the transactions for purchase of goods, material and services and for sale of goods, material and services in pursuance of contracts or arrangement entered in register U/s 301 of the Companies Act, 1956 and aggregating during the year to Rs.50,000 or more in respect of each party have been made at prices which are reasonable having regal d to prevailing market prices for such goods, materials and services or the prices at which transaction for similar goods and materials have been made with other parties. 12. As explained to us, the company has a regular procedure for the determination of unserviceable or damaged components, raw materials spare parts and finished goods and necessary adjustments for the loss have been made in the accounts. 13. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits as defined under section 58A of the Companies Act 1956, and the rules framed there under. 14. In our opinion the company is maintaining reasonable records for sale and disposal of scrap. We are informed that the company has no by - products. 15. The company has adequate Internal Audit System, commensurate with its size and nature of its business. 16. Maintenance of Cost Records under section 209-(1) (d) of the Companies Act 1956, is not applicable to this company. 17. The company is regular in depositing the provident fund dues with the appropriate authority. 18. According to the books and records examined by us and the information and explanations given to, there were no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty which have remained outstanding as at June 30th 2001 for a period exceeding six months from the date they became payable. 19. According to the information and explanations given to us, no personal expenses of employees or directors have been charged to revenue account, other than those payable under contractual obligations or in accordance with generally accepted business practice. 20. The company is not c sick industrial company within the meaning of clause (o) of subsection (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act. 1985. For E. Phalguna Kumar & Co., Chartered Accountants Sd/- E. Phalguna Kumar Partner Place : Mumbai Date : 29.09.2001