Annual Report 1998-99
ALANG MARINE LIMITED
Sub : Auditor's Report on the Accounts for the year ended on 31st March
We have audited the attached Balance Sheet of Alang Marine Limited as at 3l
st March 1999 and also the Profit and Loss Account of the company for the
year ended on that date annexed thereto.
WE REPORT THAT :-
1) We have obtained all the informations 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 the law have been
kept by the company so far as it appears from our examination of the books.
3) The balance sheet and Profit & Loss account of the company dealt with
the report are in agreement with the books of account.
4) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read 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 Balance Sheet of the state of affairs of the company as
at 31st March '99 and
ii) in the case of Profit and Loss account of the profit of the company for
the year ended on that date.
As required by the Manufacturing and other Companies (Auditor's Report)
Order, 1988 issued by the Central Government in the terms of section 227(4)
(A) of the Companies Act, 1956, we report that :-
i) The company has maintained proper records showing the full particulars,
including the quantitative details and situation of its fixed assets. The
fixed assets have been physically verified by the management at reasonable
intervals during the year and we are informed by the management that no
material discrepancies were noticed on such verification as per the records
maintained and submitted by the company.
ii) There is no case of revolution of its fixed assets.
iii) Management has conducted the physical verification at reasonable
intervals in respects of finished goods, stores, spare parts and raw
iv) The procedure of physical verification of stock followed by the
management is as per our opinion reasonable and adequate in relation to the
size of company and nature of business of the company.
v) No material discrepancies have been noticed on physical verification of
stock as compared to books/ records maintained by the company.
vi) The valuation of stock is fair and proper and is in accordance with
normally accepted accounting principles. vii) During the year company has
taken secured/unsecured loans from companies, firms or other parties listed
in the register maintained under section 30l of the Companies Act, 1956
and/or from the companies under the same management as defined under the
sub section l B of section 37U of the Companies Act, l 956. In our opinion
the rates of the interest and other terms and conditions of the loans are
not prima facie prejudicial to the interest of company.
viii) During the year company has granted secured/unsecured loans to the
companies, firms or other parties listed in the register maintained under
section 301 of companies Act,1956 and/or to the companies under the same
management as defined under section 1B of section 370 of Companies act, l
956. In our opinion the rate of the interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
ix) On the examination of the books and records of the company, we have
noticed that the amount of loan and advances in the nature of loans have
been given by the company to parties are repaying the principal amounts as
stipulated and are also regular in payment of interest.
x) In our opinion there is adequate internal control procedure commensurate
with the size of the company and the nature of its business for the
purchase of stores, raw materials including components, plant and
machineries equipments and other assets and for sale of the goods.
xi) In our opinion and according to the informations and explanations given
to us the transactions of purchase and sale of goods and materials in
pursuance of contract or arrangements entered in the register maintained
under section 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 regard to the prevailing Market prices
for such goods, materials at which transaction of similar goods and
materials have been made with other parties.
xii) As explained to us the company has a regular procedure for
determination of unservicable or damaged, stores, raw materials and
finished goods. Adequate provision has been made in the accounts.
xiii) In our opinion and according to the information & explanations given
to us, the company has compiled with the provisions of section 58A of the
Companies Act,1956 and the company (acceptance of deposit) Rules.
xiv) In our opinion reasonable records have been maintained by the company
for the sale and disposal and realisation of by products and scraps.
xv) In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
xvi) The provision of section 209 (I) (d) of the Companies Act, 1956 (10 of
195) as to maintenance of cost records is not applicable to the company.
xvii) As we are informed by the management that Provident Fund and E.S.I.
dues have been paid at regular intervals.
xviii) According to the information & explanations given to us that there
were undisputed no outstanding dues for the period of more than six months
as at the last day of the financial year, with regard to Income-Tax, Sales
Tax and Central Excise duty.
xix) Company is no a sick company within the meaning of clause (o) of Sub
Section (I) of Section (3) of the Sick Industrial Companies (Special
Provisions) Act, 1985.
xx) As explained to us no personal expenses have been debited to revenue
account except those paid by virtue of contractual obligation under the
agreement of employment.
Place: Bhavnagar FOR, D. HARIYANI & CO.
Dated: 15.11.99 CHARTERED ACCOUNTANTS