RELIABLE PLASTICS LIMITED.
THE SHARE HOLDERS OF
RELIABLE PLASTICS LTD.
We have audited the attached Balance Sheet of RELIABLE PLASTICS LTD. as at
31st March, 1998 and also the Profit and Loss A/c of the Company for the
year ended on that date annexed there to and reports that :-
1. As required by the Manufacturing and other Companies (Auditors Report)
Order 1988 issued by the Central Government in terms of Section 227 (4A) of
the Companies Act, 1956. We give in the Annexure a statement on the matter
specified in paragraph 4 of the said order.
2. 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 purposes of 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 books.
c. The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the above books of account.
d. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with other notes thereon
give the information required by the Companies Act 1956 in the manner so
required and give a true and fair view. :-
ln the case of Balance Sheet and state of affairs of the Company as on 31st
March, 1998 and
ii In the case of Profit and Loss Account, of the loss for the year ended
on that date.
ANNEXURE TO THE AUDIT REPORT
Referred to in Paragraph of Our Report of Even Date On the Accounts For The
Year Ended 31st March, 1998.
The Company has maintained proper records showing particulars including
quantitative details and situation of fixed Assets.However the same has not
been updated. A portion of the Assets has been physically verified by the
Management in accordance with a phased programme of verification adopted by
2. None of the fixed assets have been revalued during the year.
3. The stock of finished goods, stores and spare parts and raw material
have been physically verified during the year by the Management. In our
opinion, the frequency of verification is reasonable.
4. 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.
5. No material discrepancies have been noticed on physical Verification of
stocks as compared to books & records.
6. 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 the
normally accepted accounting principles and is on the same basis as in the
7. The company has taken loans, secured or Unsecured from companies, Firms
or other parties listed in register Maintained under Section 301 of the
companies Act, 1956 or from companies under the same Management within the
meaning of Section 370 (1-B) of the companies Act, 1956, and according to
the informations and explanations given to us, the rate of interest and
other terms and conditions are not prejudicial to the interest of the
8. The company has granted loans to companies, firms or other parties
listed in the register maintained under Section 301 of the companies Act,
1956 and / or to the companies under the same management as defined under
section 370 (1 -B) of the companies Act, 1956 and terms and conditions of
such loans are not prejudicial to the interest of the company.
9. In respect of loans and advances in the nature of loans given by the
Company to the employees and others, principal amount and interest wherever
applicable, have recovered as stipulated.
10. In our opinion and according to the Information and Explanations given
to us adequate Internal control procedures exists to commensurate with the
size of the company and the nature of its business with regard to purchase
of stores including components, Raw-Materials Plant Machinery, Equipments
and other assets and for the sale of goods.
11. In Our opinion and according to the information and explanations given
to us, the transactions for purchase of goods materials and services and
sale of goods,Materials and services made in pursuance of contracts or
agreement entered in the registrar maintained under Section 301 of the
Companies Act,1956 and aggregating during the year to Rs. 50000/- or more
in respect of each party have been made at the prices which are reasonable
having regard to prevailing market prices for such goods, materials or
services and the prices at which transactions for similar goods, Materials
or services have been made with other parties.
12. According to the information and explanations given to us, the Company
has a procedure for determination of unserviceable or damaged stores,raw
materials and finished goods Provision has been made in the accounts for
the loss arising on the items so determined.
13. The company has not accepted deposits from the public.
14. In our opinion, reasonable records have been maintained by the Company
for sale and disposal of realizable Scrap. We are informed that the company
does not generate any by product.
15. In our opinion the Company has an Internal Audit system commensurate
with its size and nature of its business.
16. According to the informations and explanations given to us, the Central
Government has not prescribed the maintenance of Cost Records for any of
the products of the company under section 209 (1) (d) of the Companies Act,
1956 for the year.
17. According to the information and explanations given to us the
provisions of Provident Fund Act, are not applicable to the company for the
year. However Employees State Insurance Scheme is applicable and the
Company has been generally regular in depositing E.S.I. dues.
18. According to the information and explanations given to us,no undisputed
amounts payable in respect of Income - Tax, Wealth - Tax, Sales Tax, Custom
duty and excise duty were outstanding as at 31st March, 1998 for a period
of more than six months from the date they become payable.
19. According to the information and explanations given to us, no personal
expenses of employees or directors have been charged to revenue
accounts,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. The company has maintained proper records of the transactions and
contracts of the shares securities, and other investments dealt with and
has made timely entries regarding the same. The shares, securities, and
other investments are yet to be registered in the name of the company.
For: VIJAY K. JAIN & ASSOCIATES
Place : Indore
Date : 05-08-1998