ANNUAL REPORT 1998-99
AKAR LAMINATORS LTD
AKAR IAMINATORS LTD.
We have examined the attached Balance Sheet of AKAR LAMINATORS LIMITED as
on 30th June. 1999 together with the annexed Profit and Loss Account for
the year ended on that date and report that:
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, we give in the Annexure a statement on the matters
specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to in paragraph I above.
we report that
(a) We have obtained all the information and explanation which to the best
of our knowledge and belief were necessary for the audit.
(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 the books.
(c) In our opinion, the Balance Sheet and Profit & Loss Account dealt with
this report are as per the books of accounts produced for our verification.
d) In our opinion. the Profit & Loss account and Balance Sheet comply with
the accounting standards referred to in sub section (3C) of Section 211 of
the Companies Act, 1956.
c) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, subject to Note No. 2
regarding third party Balance confirmations and others and read with other
notes and accounting policies thereon, give the information required by the
Companies Act, 1956 in the manner so required and present a true and tair
(i) In the case of Balance Sheet. of the state of affairs of the Company as
at 30th June. 1999 and
(ii) In the case of Profit & Loss Account, of the Profit of the Company for
the year ended on that date.
For MEHTA LODHA & CO.
Date: 3rd December, 1999
ANNEXURE REFERRED TO IN PARAGRAPH I OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS FOR THE YEAR ENDED 30TH JUNE. 1999 OF AKAR LAMINATORS LTD.
1. The Company has maintained records showing full particulars including
quantitative details and situation of fixed assets except in case of
additions which is being updated. According to information and explanations
given to us the fixed assets in the possession of the Company have been
physically verified by the management in a phased periodical manner which
in our opinion is reasonable having regard to the size of the Company and
the nature of' the assets. As informed to us, the discrepancies noticed on
such verification are not material and have been properly dealt with in the
books of accounts.
2. None of the fixed assets have been revalued during the year .
3. As per explanations and information given to us. the stock of finished
goods semifinished goods. stores, spares parts. raw materials have been
physically verified by the management at the year end.
4. In our opinion and according to he information and explanation given to
us. the procedure of physical verification of stocks followed by the
management were found to be reasonable and adequate in relation to the size
of the Company and the nature of its business.
5. As informed to us, the discrepancies noticed on verification between
physical stocks and books records were not material in relation to the
operations of the Company.
6. In our opinion, the valuation of stock is fair and proper and in
accordance with the generally accepted accounting principles and is on the
same basis as in the earlier year.
7. The Company has taken unsecured loan from Companies. firms or other
parties listed in the register maintained under Section 301 of' the
Companies Act, 1956 and from the Companies under the same management as
defined under sub Scction 1B of the Section 370 of the Companies Act, 1956.
The terms of repayment and interest have not been specified.
8. The Company has granted unsecured loans in the ordinary course of
business to the Companies listed in the register nmintained under Section
301 of the Companies Act, 1956 and to the Companies under the same
management as defined under Sub Section 1B of Section 370 of the Companies
Act, 1956. The terms of repayment and interest have not been specified .
9. The Company has granted advance in the nature of loans to staff on free
of interest. The same being realised as stipulated and other terms and
conditions of' such loans are not prima-facie prejudicial to the interest
of the company.
10) In our opinion the internal control procedure of the Company relating
to purchase of stores ,raw material and components plant and machinery,
equipment and other similar assets and for the sale of goods are adequate
commensurate with its size and nature of business.
11).The Company has entered into the transactions of purchase and sale of
goods and materials aggregating to Rs. 50,000/- or more during the year
during the year in respect of each party listed in the register-
maintained under Section 301 of' the Companies Act. 1956. In our opinion
and according to the information and explanations given to us, prices
contacted were reasonable having regard to the prevailing market prices for
such goods or materials for such prices at which transactions for similar
goods or materials were made with other parties, if comparable prices are
12. As. explained to us, the Company has regular procedure for the
determination of unserviceable or damaged stores raw materials. components
or finished goods. Adequate provisions has been made in the accounts for
the loss arising on items determined .
13. As informed to us, the Company has not accepted any deposits from the
public during the year.
14. In our opinion. reasonable records have been maintained by the Company
for the sale and disposal of scrap. The Company has no by-products.
15. The Company has an internal audit system which is further required to
be strengthened so as to commensurate with the size and its nature of the
business of the Company.
16. As informed to us the Central Government has not prescribed rules for
the maintenance of cost records by the Company under Section 209(1) (d) of
the Companies Act,1956.
17. Provident Fund and Employees State Insurances dues have generally been
regularly deposited with the appropriate authorities though there has
been delay in few cases.
18. According to the information and explanations given to us there are no
undisputed amount in respect of Wealth Tax,Custom Duty and Excise duty
except Sales tax of Rs 0.65 lakhs and Income tax of Rs 9.08 lakhs
outstanding for a period of more than six months as at June 30th 1999.
19. According to the information and explanations given to us and the
records of the Company examined by us no personal expenses have been
charged to revenue account other than payable under contractual obligations
or in accordance with the generally accepted business practices.
20. The Company is not sick industrial company within the meaning of
Clause(O) of the Sub-section 3 of the Sick Industrial Companies (Special
Provisions) Amendment Act,1994.
21. In respect of the trading activities of the Company it has been
explained to us that there were no damaged goods during the year.
22. In respect of service contracts executed the Company has a reasonable
system of recording receipts,issues and consumption of material and stores
commensurate with the size and nature of its business.
23. The question of allocation of material,stores and man hours (labour)
consumed to relative jobs have not been considered by the Company since the
service rendered are billed to customers on fixed rate basis.
For MEHTA LODHA & CO
Date : 3rd December,1999.