ANNUAL REPORT 1999-2000
BETA CORPORATION LIMITED
Beta Corporation Limited,
We have audited the attached Balance-Sheet M/s. BETA CORPORATION LIMITED,
Indore as at 31st March, 2000 and Profit and Loss Accounts for the period
ended on that date annexed there to, we report as follows:
1. As required by the manufacturing and other companies (Auditor's report)
order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of
the companies Act, 1956 we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order
2. Further to our comments in the Annexure referred to in paragraph
a) We have obtained all the information and explanations which to the best
of our knowledge & 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 such books.
c) The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account.
d) In our opinion the Balance-sheet and Profit & Loss Account dealt with by
this report complies with the requirement of Accounting Standards as
referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.
e) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together 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 the Balance Sheet of the state of affairs of the Company
as at 31st March. 2000 and
ii) In the case of the Profit and Loss Account of the loss of the Company
for the period ended on that date.
For V.N.R. VARMA ASSOCIATES
PLACE: INDORE V.N.R. VARMA
DATE : 16th August, 2000 Proprietor
ANNEXURE TO THE AUDITORS ' REPORT
Referred to in Paragraph 1 of our report of even date.
I. As informed and explained to us the Company is in the process of
maintaining records showing full particulars including quantitative
detail1s and situation of its fixed Assets. As informed and explained to us
the fixed assets have been physically verified by the management
Periodically and no material discrepancies were noticed on physical
verification as compared to the records maintained by the company.
II. None of the Fixed Assets have been revalued during the year.
III. The stock of finished goods, stores, spare parts and raw materials
have been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
IV. The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
V. The discrepancies noticed on verification between the physical stocks
and book records were not material and have been properly dealt with in the
books of account.
Vl. On the basis of our examination of stock records, we are of the opinion
that the valuation of stocks is fair and proper in accordance with normally
accepted accounting principles.
VII. The Company has not accepted any loans, secured or unsecured from
companies, firms or other parties as required in the register to be
maintained under section 301. The company has not taken any loans, secured
or unsecured from the companies under the same management as defined under
section 370 (IB) of the Companies Act 1956.
VIII. In our opinion, the terms and conditions on which loans/advances have
been granted to the Companies, firms or other parties listed in register
maintained under section 301 of the Companies Act, 1956 and to the
Companies under the same management as defined under section 370( l B) of
the Companies Act, 1956 are not prima facie prejudicial to the interest of
IX. Company has not given interest free advances in the nature of loans to
any party other than employees of the company wherever stipulations are
made, the principal amounts are being repaid as scheduled .
X. 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 goods, assets and with regard to the sale of goods and services.
Xl. In our opinion and according to the information and explanation given
to us the transaction of purchase of goods and material. Sale of goods,
material c services, made in pursuance of contracts or agreements entered
in register maintained under section 301 and aggregating during the year to
Rs.50,00(.7/- or more,in respect of each party have been made at prices
which are reasonable having regard to prevailing market prices for such
goods. material or service.
XII. According to the information and explanations given to us, the company
has a regular procedures for determination of unservicable or damaged
stores,raw material, finished goods. Adequate provision has been made in
accounts for the loss arising on the items so determined
XTII. The provisions of section 58 (A) of the Companies Act, 1956 and
companies (acceptance of deposits) Rules, 1975 are not applicable in this
case, since the company has not accepted any deposits from public.
XTV. In our opinion, reasonable records has been maintained by the company
for the sale and disposal of realisable by products and scraps.
XV. In our opinion, the company has an adequate internal audit system
commensurate with its size and the nature of its business
XVI. The maintenance of cost records has not been prescribed by the central
government under section 209(1)(d) of the companies Act, 1956 for any of
the products of the company for the period under report.
XVII. According to the records of the Company, the company is not regular
in depositing the providend fund dues, with the appropriate authorities
during the year.
XVlll. According to the information and explanations given to us no
undisputed amounts payable in respect of income-tax, wealth-tax, sales tax,
customs duty and excise duty were outstanding as at 31st March, 2000 for a
period of more than six months from the date they became payable except
Income Tax of Rs. l 46.82 Lacs.
XIX. 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 obligations or in accordance
with generally accepted business practice.
XX. The company is a sick industrial company with in the meaning of clause
(o) of sub-section (l) of section (3) of the Sick Industrial Companies,
(special provisions) Act, 1985 and registered with Board for Industrial and
Financial Reconstruction (BlFR) vidd registration no 186/98 dated
20.07.1998. However he accounts have been prepared on the assumption that
the company is a going concern.
XXI. In respect of the company's trading activities we are informed that
the company does not have damaged goods lying with it at the end of the
year. There fore no provision for any loss is required to be made in the
XXII. The Company has not granted any loans and advances on the basis of
security by way of pledge of Shares Debentures and other securities.
XXIII. Proper records have been maintained for the transactions relating to
trading in Shares, Bonds, Debentures and other investment and entries have
been made generally on a timely basis therein, the investments other than
those classified as stock in trade are held in the name of the Company or
is in the process of transfer to the Company's name.
For V N.R. VARMA ASSOCIATES
Place: INDORE V.N.R. VARMA
Date : 16th August, 2000 Proprietor.