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Arihant Cotsyn Ltd.

BSE: 514122 Sector: Industrials
NSE: ARIHANTCOT ISIN Code: INE925B01018
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NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
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Arihant Cotsyn Ltd. (ARIHANTCOT) - Auditors Report

Company auditors report

ARIHANT COTSYN LIMITED AUDITORS' REPORT The Members of Arihant Cotsyn Limited, We have audited the attached Balance Sheet of Arihant Cotsyn Limited as at 31st March 1998 and Profit and Loss Account for the year ended on that date annexed thereto both signed by us under reference to this report and report that a) We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purpose of our audit. b) In our opinion, proper books of accounts as required by law have been kept by the Company so for as appears from our examination of the books of accounts. c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts d) In our opinion and to the best of our information and explanation given to us the said accounts subject to Note No. 4 regarding capitalisation of interest on debentures to fixed assets upto 31 st March 1995 resulting in understating the revaluation reserve and loss by Rs. 1,20,64,384/- and the depreciation overstating by Rs. 589100/-, Note No. 6 regarding non confirmation of balances, the effect thereof in Profit and Loss Account cannot be reflected, Note No.7 regarding allocation of debenture issue expenses to fixed assets upto 31 st March, 1995 resulting in understating the revaluation reserve and deferred revenue expenditure by Rs.7137486/- and the depreciation overstating by Rs. 334495/- and the charge of deferred revenue expenditure understating by Rs. 869529/-, Note No. 8 regarding non reconciliation and non confirmation of the amounts under the head cash and bank balances and stated to be lying in Share Application Money refundable account with Allahabad Bank, New Delhi, Note No.9 regarding treating the plant by company as continuous process plant resulting in understating the charge for depreciation by Rs. 28728410/- (previous year Rs. 27481819/-) and understating the loss and overstating reserves and surplus by Rs. 28728410/- (Previous year Rs.27481819/-), Note No.10 regarding increase in rupee liability of the Company in respect of FCL as a result the plant & machinery has been overstated by Rs.10868267/-, and the revalution reserve has been overstated by Rs. 9673168/-, Note No.12 regarding capitalisation of interest for the Dyed Unit from the period 1996-97 during which assets were used in commercial production, resulting in understating loss for the year by Rs.33193607/- and understating the revaluation reserve by Rs.47175369/- and overstating the gross block of fixed assets by Rs.52012586/ and the depreciation has been overstating by Rs.2511507/-, Note No.13 regarding revaluation of fixed assets, and read together with other notes as per Annexure 'S', give information required by the Companies Act, 1956, in the manner so required and give the true and fair view. i) In the case of the Balance Sheet of the state of affairs of the company as at 31st March,1998 and ii) In the case of Profit and Loss Account of the Loss for the Year ended on that date. As required by the Manufacturing and Other Companies (Auditors' Report) Order,1988, issued by the Central Government in exercise of the powers conferred by Section 227(4A) of the Companies Act, 1956 and according to the information and explanation given to us and on the basis of such check as we considered appropriate we further state that: 1. Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. All the assets have been physically verified by the Management during the year and there is regular programme of verification which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. 2. Plant & Machinery, Land and building have been revalued during the year at their fair rental value on the basis of the valuer's report. The difference arising on the re-valuation have been separately disclosed in the Balance Sheet. 3. The Stock of trading goods and raw material have been physically verified during the year by the Management in our opinion the frequency of verification is reasonable. 4. The procedures of physical verification of stock followed by the Management are reasonable and adequate in relation to the size of the company and nature of its business. 5. No discrepancies were found during the physical verification of stocks. 6. On the basis of our examination of stock records, we are of the opinion that valuation of stocks is fair and proper in accordance with the normally accepted accounting principles. 7. 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 (1 of 1956) and from Companies under the same management as defined under Sub- Section (1 B) of Section 370 of the Companies Act,1956 (1of 1956). 8. 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 (1 of 1956) and the Companies under the same management as defined under sub-section (1B) of Section 370 of the Companies Act,1956 (1 of 1956). 9. In respect of loans and advances in the nature of loans given by the company to employees,the principal amount are recovered as stipulated but no interest is being charged. The Company has also made advances to the concerns which are repayable on demand. However, the company has charged interest on these advances. 10. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of stores, raw material including components, plant and machinery,equipment and other assets,and also with regard to the sale of goods. 11. In our opinion and according to the information and explanations given to us,the transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of Companies Act, 1956 as aggregating during the year amounting to Rs.50000/ 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 or services or the prices at which transactions for similar goods materials or services have been made with other parties. 12. During the year under review, no part of the stores, raw materials and other goods was determined as unserviceable or damaged by the Management. 13. The Company has not accepted any deposits from the public under the Companies (Acceptance of Deposits) Rules,1975. 14. In our opinion, reasonable records have been maintained by the Company for the sale and disposal of its realisable by-products and scraps. 15. In our opinion, the company has Internal Audit system commensurate with its size and nature of its business. 16. We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for the maintenance of cost records u/s209(1)(d)of the Companies Act,1956 and are of the opinion that prima facie the prescribed accounts and records have been maintained. 17. The scheme of Provident Fund has been made applicable to company during the year. According to records of the company Provident Fund dues has been regularly deposited during the year with the appropriate authorities. 18. According to the information and explanation given to us no undisputed amount payable in respect of Income Tax, Wealth Tax. Sales Tax, Customs Duty and Excise Duty was outstanding as at 31st March, 1998 for a period of more than six months from the date it became payable. 19. According to 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 practices. 20. The Company is not a sick industrial company within the meaning of Clause (o) of Sub section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act,1985. 21. In respect of trading activities of the Company, there are no stocks of damaged goods. FOR DASS KHANNA & CO. CHARTERED ACCOUNTANTS Sd/- PLACE: Dhuri RAKESH SONI DATED: 28.11.98 (PARTNER)

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