BARODA ELECTRIC METERS LIMITED
ANNUAL REPORT 1999-2000
The Shareholders of
Baroda Electric Meters Limited
We have audited the attached Balance Sheet of the Baroda Electric Meters
Limited as at 31st March, 2000 and also Profit & Loss Account for the year
ended on that date annexed thereto and report that:
 As required by the Manufacturing and Other Companies [Auditors'
Report] Order,1988 issued by the Company Law Board, Government of India
under Section 227 [4A] of the Companies Act, 1956 we annexure to a
statement on the matters specified in paragraphs 4 and 5 of the said order.
 Further, to our comments in the Annexure referred to in Paragraph 1
above we 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 account as required by law have been
kept by the Company so far as appears from our examination of the book.
[c] The Balance Sheet and the Profit & Loss Account referred to in this
report are in agreement with the books of account.
[d] In our opinion, the Balance Sheet and Profit and Loss account dealt
with by this report are in compliance with the Accounting Standards
referred to in Section 211 [3C] of the companies Act 1956, in so far as
they are applicable to the company.
 Regarding non-provision of balance of gratuity liability of
Rs.55,63,369/- yet to be funded to Life Insurance Corporation of India.
[Refer Note No.5] 141 In our opinion and to the best of our information and
according to the explanations given to us, the accounts subject to
paragraph 3 above and read together with significant accounting policies
and notes on account thereon, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
[i] In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2000.
A N D
[ii] In the case of the Profit & Loss Account of the `Loss' for the year
ended on that date.
For Kantilal Patel & Co.
Place : Ahmedabad A . K . Patel
Date : June 30, 2000 Partner
ANNEXURE TO THE AUDITOR'S REPORT TO THE MEMBERS OF BARODA ELECTRIC METERS
LTD. ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2000.
 The Company has maintained records showing particulars of its fixed
assets. The fixed assets of the company have been not physically verified
by the management during the year and hence discrepancies, if any on such
verification cannot be ascertained.
 None of the fixed assets have been re-valued during the year.
 [a] The stocks of finished goods, stores, spare parts, components and
raw materials have been physically verified by the management during the
year at reasonable intervals. The discrepancies noticed on such
verification between the physical stocks and the book records, which were
not material, have been properly dealt with in the books of account.
[b] 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 and the nature of its business.
[c] In our opinion, the valuation of stocks is fair and proper in
accordance with the normally accepted accounting principles and is on the
same basis as in the preceding year.
 The company has not taken any loans from the companies, firms or other
parties as listed in the register maintained under Section 301 of the
Companies Act, 1956. The provisions of Section 370 are not applicable to a
company on or after 30-10-1998.
 The Company has not granted any loans to the companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956. Advance in the nature of loan given to erstwhile
subsidiary company has been fully provided in the books of account. The
provisions of section 370 are not applicable to a company on or after 30-
 The Company has not granted any loans to any parties.
 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 nature of its business for the purchases of
stores, raw materials, components, plant and machinery, equipment and other
assets and for sale of goods.
 According to the information and explanations given to us, the Company
has neither purchased any raw materials, stores and components nor sold
goods,materials and services in excess of Rs.50,000/- in value for each
type thereof from/to companies, firms or other parties as listed in the
register maintained under Section 301 of the Companies Act, 1956.
 Unserviceable or damaged stores, raw materials and finished goods have
been determined during the year, and adequate provision in respect of the
same has been made in the accounts.
 The Company has not accepted deposits from the Public.
 The Company has maintained reasonable records for the sale and
disposal of realisable scrap. The Company has no by-products.
 The Company has an Internal Audit System i.e. the company has
appointed a firm of Chartered Accountants, but the scope and coverage of
internal audit needs to be widened to make it commensurate with the size
and nature of the Company's business.
 According to the information given to us, the Central Government has
not prescribed maintenance of cost records under Section 209  [d] of the
Companies Act, 1956 for any of the products of the Company.
 According to the records of the Company, Provident Fund have been
regularly deposited with the appropriate authorities. We are informed that
the provisions of Employees' State Insurance are not applicable to the
 According to the books and records examined by us and as per the
information and explanations given to us, except the amounts mentioned
hereunder no undisputed amounts payable in respect of Income Tax, Wealth
Tax, Sales Tax, Custom Duty and Excise Duty were outstanding as at 31st
March, 2000 for a period exceeding six months from the date they became
Sales Tax Rs. 21, 540/-
 During the course of our audit of the books of account carried out in
accordance with generally accepted auditing practices, we have not come
across any personal expenses which have been charged to Profit & Loss
Account other than those payable under contractual obligations or in
accordance with generally accepted business practice.
 The Company is not a Sick Industrial Company within the meaning of
Clause 'o' of Sub-section [i1 of Section '3' of the Sick Industrial
Companies [Special Provisions] Act, 1985.
For Kantilal Patel & Co.
Place : Ahmedabad A . K . Patel
Date : June 30,2000 Partner