ARUN MANTEX LIMITED
ANNUAL REPORT 2000-2001
REPORT OF THE AUDITORS TO THE SHAREHOLDERS OF ARUN MANTEX LIMITED
We have audited the attached Balance Sheet and Income & Expenditure Account
of Arun Mantex Limited as at 31st March 2001 and have to report that :
1. The Accounts are prepared on "Going Concern Basis".
2. As required by the manufacturing and other Companies (Auditor's Report)
Order 1975 issued by the Company Law Board in terms of Section 227 (4A) of
the Companies Act, 1956, and on basis of such checks as we considered
necessary and information and explanation given to us, we enclose in the
annexture a statement of matters specified in paragraphs 4 and 5 of the
3. 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.
4. In our opinion, proper books of account, as required by law have been
kept by the company so far as it appears from our examinations of the
5. The Balance Sheet dealt with by this report are in agreement with the
books of accounts.
6. The Profit and Loess and the Balance Sheet comply with the accounting
standards prescribed under section 211 (3) of the Companies Act, 1956.
7. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, are in manner so required and give a true and
fair view: -
a) In the case of the Balance Sheet of the state of affairs of the Company
as at 31st March 2001.
b) In the case of the Profit & Loss Accounts of the Loss for the year ended
as on 31st March, 2001.
For V.B. SHAH & CO
Annexure as referred to para 1 of the report of even date :-
1. The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets. We are
informed by the management that they has carried out the physical
verification during the year and no discrepancies between the books records
and the physical inventory has been noticed.
2. There has been no revaluation of any of the fixed assets during the
3. Physical verification has not been conducted by the management in
respect of work in progress and raw materials.
4. The procedure for physical verification of sticks, followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
5. The discrepancies noticed on verification between the physical stocks
and the book records were not material.
6. On the basis of our examination of stock records, we are of the opinion
that the valuation of stock is fair and proper in accordance with the
normally accepted accounting principles and is no the basis as in the
7. In our opinion, the rate of interest and other terms and conditions on
which the loans have been taken from the parties listed in the registers
maintained under section 301 of the Companies Act, 1956, are not, prima
facie, prejudicial to the interest of the company.
8. In our opinion the rate of interest and other terms and conditions on
which the loans have been granted to companies, firms or other companies
listed in the registers maintained under section 301 and to the companies
under the same management are not, prima facie, prejudicial to the interest
of the company.
9. Parties to whom loans and advances in the nature of loans have been
given are repaying the principal amount as stipulated and are also regular
I payment of interest, where applicable.
10. In our opinion and according to the information and explanations given
to us, there are adequate internal control procedure commensurate with the
size of the company and the nature of its business with regard to purchases
of stores, raw materials including components, plant and machinery,
equipments and other assets with regard to the sale of goods.
11. In our opinion and according to the information and explanations given
to us, the transactions of purchases and sale of goods and materials in
pursuance of contracts or arrangements entered in the register maintained
under section 301 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 prices at which transactions of similar goods and materials
have been made with other parties or quoted by the other parties except
where comparable quotation are not available having regard to the
specialized nature of materials purchased by the company.
12. As explained to us, the company has a regular procedure for the
determination of unserviceable or damaged stores, raw materials and
finished good. Subject to our note No. 16 od schedule "Q" to the accounts,
adequate provision has been made in the accounts for the loss so
13. In our opinion and according to the information and explanation given
to us, the company has complied with the provisions of section 58-A of the
Companies Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975.
The Company has not accepted deposits from public.
14. The Company has maintained reasonable records in respect of sale and
disposal of scrap. We are informed that the manufacturing process of the
company does not give rise to any by products.
15. In our opinion the company has an internal audit system commensurate
with the size and nature of its business.
16. The Central government has not prescribed, maintenance of cost records
under section 201 (1) (d) of the Companies Act, 1956 for any of the
products of the company.
17. Provident Fund / Employees' State Insurance dues relating to the year
and aggregating to Rs.3,27,531/-which has fallen due for deposit with the
appropriate authorities has not been deposited.
18. According to the information and explanations given to us, no
undisputed amounts payable in respect of Wealth Tax, Custom Duty and Excise
duty were outstanding as on March 2001 for a period of more than six months
they became payable, as regards to liability of Excise Duty of Rs.
4,70,281/- is concerned the same is contested by the Company, however there
are outstanding dues of Income Tax for Rs. 8,38,802/- and of Sales Tax for
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 obligation.
20. The company has become a Sick Industrial Company within the meaning of
the clause (0) of the sub-section (1) of section 3 of the Sick Industrial
Companies (Special) Provisions Act, 1985. Reference has been made to the
Board for Industrial and Financial Reconstruction under section 15 of the
Act which was rejected by Board in Appeal. Company is making fresh
21. In respect of the trading activity of the company there are no damaged
goods in closing stock.
For V.B. SHAH & CO.
PLACE: BOMBAY V.B. SHAH
DATE: 12/04/01 PROPRIETOR