western industries ltd Auditors report

WESTERN INDUSTRIES LTD., ANNUAL REPORT 2000-2001 AUDITORS REPORT To The Members of M/S. WESTERN INDUSTRIES LTD., 2-12-66, West Marredpally, SECUNDERABAD. We have audited the attached Balance Sheet of M/s. WESTERN INDUSTRIES LTD., West Marredpally, Secunderabad as at 31st March 2001 and the Profit and Loss Account for the year ended on that date, annexed thereto and report that: 1. As required by 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 (herein after referred to as the ACT) we annex hereto 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 we report that : a). We have obtained all the information and explanation which to the best of our knowledge and belief were necessary of the purpose of our Audit. b). No provision has been made for Rs.35.27 lakhs towards the Foreign Travelling expenses of the company Executives, as referred in Note No.6 in Schedule No. M to the Balance Sheet. c). In our opinion, proper books of accounts are required by Law have been kept by the company so far as it appears from the examination of Books. d). The said Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts of the Company. e). In our opinion, the Balance Sheet and Profit and Loss A/c. dealt with by this report have been prepared in compliance with the accounting standards referred to the subsection (3C) of Section 211 of the Act, to the extent possible. f). On the basis of the confirmations received from the Directors and taken record by the Board of Directors, none of the Directors is disqualified as on 31.03.2001 from being appointed as director of the company under section 274(1)(g) of the Act. g). In our opinion and to the best of our information and according to the explanations given to us, the said accounts and other notes to the Accounts and those appearing elsewhere in the accounts give the information required by the act in the manner so required and give a true and fair view: i. In the case of Balance Sheet of the State of affairs of the Company as at 31st March 2001 and ii. In the case of Profit and Loss Account, of the Profit of the Company for the year ended that date. For ALLAMSETTI & CO., Chartered Accountants Place: Secunderabad (A. KESAVA RAO) Date : 23.08.2001 Partner ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITORS REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2001 OF M/S WESTERN INDUSTRIES LIMITED. On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we state that :- 1. As required by Manufacturing and other Companies (Auditors Report) order, 2000 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956 and in terms of the information and explanations given to us and on the basis of such checks as we considered appropriate we further state as under: i) The Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets. The Fixed Assets have been physically verified by the Management at the year-end and no discrepancies have been noticed on such verification. ii) Non of the Fixed Assets have been revalued during the year. iii) We are informed that the Stocks of Raw Material and components of the Company have been physically verified by the Management as at the close of the year. iv) 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. v) No discrepancies have been reported as noticed on physical verification: of stocks as compared to book records. vi) In our and on the basis of our examination, the valuation of stocks is fair and proper in accordance with normally accepted accounting principals and is on the same basis as in the preceding year. The closing stock as ascertained and certified and valued by the Management are adopted; which are found to be in agreement with stock records. vii) The Company has not taken any loans, Secured or unsecured from Companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 or from the companies under the same management as defined under Sub Section (1 B) of Section 370 of the companies Act, 1956. viii) The Company has not granted any loans Secured or unsecured to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 and to the Companies under the same management under Sub Section (1 B) of the Section 370 of the Companies Act, 1956. ix) Loans and advances in the nature of loans have been given to certain parties and the terms & conditions including rate of interest pertaining to the loans are not prejudicial to the interest of the Company. x) In our opinion and according to information and explanation given to us there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of raw materials, components, plant & Machinery, Equipment, other assets and for sale of goods. xi) During the year under audit no damaged or unsaleable goods are reported as noticed by the management. xii) The Company has neither invited not accepted deposits from the public. xiii) In the normal course of business the company has no by-products and saleable scrap. xiv) The Company has instituted an Internal Audit System, which is commensurate with its size and nature of its business. xv) The maintenance of cost records has not been prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956. Hence no such records have been maintained by the company. xvi) During the year under report no undisputed amount in respect of Income Tax, Sales Tax, Customs Duty and Excise Duty were outstanding for period of more than six months. xvii) In our opinion and according to the information and explanation given to us personal expenses have not been charted to revenue account. xviii) The TDS outstanding as on 31.03.2001 relate to deduction from Salary payments and payments to Professional Services aggregate being Rs.288198/- which were remitted to the concerned department subsequently in the months of April 2001 to 30th June 2001. xix) The PF, ESI dues relate to deduction from salary payments to the employees of the Company aggregating to Rs.252143/- and same has not been remitted to the respective departments for the year. xx) The Company is not a sick Industrial Company within the meaning of Section (o) of the sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986). For ALLAMSETTI & CO., Chartered Accountants Place: Secunderabad (A. KESAVA RAO) Date : 23.08.2001 Partner