BATHINA TECHNOLOGIES (INDIA) LIMITED
ANNUAL REPORT 2003-2004
M/s Bathina Technologies (India) Limited,
We have audited the attached Balance Sheet of M/s Batbina Technologies
(India) Limited as at 31st March 2004 and the Profit and Loss Account along
with notes to accounts for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial results
are free of material misstatement. An Audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement preparation. We believe that our audit provides
a reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003, issued by the
Central Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, we attach here to our report on the matters
specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report that:
1. 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.
2. In our opinion, proper books of account as required by law have been
kept by the company so far as it appears from our examination of the books;
3. The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of accounts.
4. In our opinion, the Balance sheet and Profit a Loss Account dealt with
by this Report have be drawn up in accordance with the accounting standards
referred to in Section 211 (3C) of the Companies Act, 1956.
5. On the basis of the written representation from directors, taken on
record by the Board of Dire q none of the Directors is disqualified as on
31st March 2004 from being appointed as a director under section 274(1)(g)
of the Companies Act, 1956.
A. In our opinion, Debtors are not being realize though the debts have
become overdue. Hence, the Company is required to make pro vision for Rs
29,22,66,062 towards irrecoverable and doubtful debts.
B. The Company is required to make a provision for loans and advances that
are irrecoverable to a tune of Rs 17,00,000.
C. In our opinion, capital work in progress of Rs. 2,34,40,460 does not
have a realizable value and deserves to be considered at NIL value.
D. Share Warrants Forfeited for value of R 45,83,710 should not have been
credited Profit and Loss Account.
6. Subject to above, in our opinion and to the best our information and
according to the explanation given to us, the said accounts read together
with the schedules and other notes thereon, give the information required
by the Companies Act, 1956 in the manner prescribed and give a true and
fair view in conformity with the accounting principles general accepted in
A. In the case of the Balance Sheet, of the state of affairs of the company
as at 31st March 2004.
B. In the case of Profit & Loss Account, of the Profit for the year ended
31st March 2004.
For JBRK & Co.
(P. JITENDRA KUMAR)
Place : Hyderabad
Date : 4 August 2C04
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
As required by the Companies (Audit Report) Order, 1988 issued under
Section 227 (4A) of the Companies Act, 195&, we further report that:
i) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. Fixed assets
have not been verified by the management during the year.
ii) According to the information and explanations given to us, the company
has not disposed off substantial part of fixed assets during the year.
iii) Company did not have inventory at the year-end hence physical
verification was not carried out.
iv) In our opinion, the Company has not granted any loans, secured or
unsecured, 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 U/s 370(1B) of the Companies
Act 1956. The company has taken interest free unsecured demand loans from
directors to tune of Rs 1,77,69,017.
v) In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business for
the purchase of Plant and Machinery, Equipment and other assets and for the
sale of products.
vi) In our opinion and according to the information and explanation given
to us, the company has not accepted any deposits from the public to which
the provisions of section 58A and 58AA of the Companies Act, 1956, and the
rules framed thereunder are applicable.
vii) The Company is presently managing the internal audit through Audit
Committee, which requires appointment of a separate agency.
viii) In our opinion, the maintenance of cost records as prescribed by the
Central government U/s 209(1)(d) of the Companies Act, 1956, is not
applicable to the company, as such no accounts and records have been made
ix) The Company is irregular during the year in depositing Provident Fund
and Employees' State Insurance dues with the appropriate authorities and
the amount payable as on the date of our report is Rs. 2,50,202.
x) There are no undisputed amounts payable in respect of Wealth Tax,
Customs duty and excise duty except income Tax and sales Tax were
outstanding as at 31st March 2004, for a period of more Than six months
from the date they became payable. The Income Tax liability in respect of
Dividend Tax of Rs 16,53,247/-, Income Tax of Rs. 26,90,406/- and Sales,
Tax liability of Rs 4,76,903/- is due by the company.
xi) The company has not defaulted in the repayment of dues to financial
institutions or banks.
xii) The Company has not granted any loans and advances on the basis of
security of way of pledge of shares, debentures and other securities.
xiii) In our opinion and according to the information given to us, the
company has debts that are outstanding for more than six months amounting
to Rs. 29,22,66,062.
xiv) The provisions of any special statute as applicable to Chit Fund,
Nidhi, or Mutual Benefit Society are not applicable to the company.
xv) In our opinion and according to the information and explanation given
to us, the company is not a dealer or trader in securities.
xvi) The Company has not even any guarantees for loans taken by others from
banks or financial institutions, the terms and conditions, whereof, in our
opinion are prima facie prejudicial to the its cost of the Company.
xvii) The Company has not certained at term loans hence utilization does
xviii) Based on the informaties and examinations given to us and on an
overall examination of the valance sheet of the company in our opinion,
there are no funds raised on a short term basis which have been used for
long term investment, and vice versa.
xix) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
xx) In our opinion and according to the information and explanation given
to us the Company did not issue any debenture and as such, no securities
have been created in respect of the debentures.
xxi) The company has not raised any public issue during the year.
xxii) According to the information and explanations given to us no fraud by
the company has been noticed or reported during the year.
xxiii) In our opinion and according to the best of our knowledge and
information give to us, company's accumlated losses are less than 50% of
its worth and the Company would have incurred cash loss during the year if
the forfeited share warrants are not routed through profit and loss
For JBRK & Co.
(P. JITENDRA KUMAR)
Place : Hyderabad
Date : 4 August 2004.