CONDEQUIP ENGINEERS (INDIA) LIMITED
ANNUAL REPORT 1998-99
3/910-L, Navjivan Society
Lamington Road, Mumbai 400008
Phone (O) 3073538, 8360916 Fax: 3072760
TO THE MEMBER OF CONDEQUIP ENGINEERS (INDIA) LTD
We have audited the attached Balance Sheet of the CONDEQUIP ENGINEERS
(INDIA) LTD as at 31st March 1999 and the Profit and loss account for the
year ended on that date annexed there to and report that:
1. Though the Company has incured losses far in excess of Paid Up Capital
and Reserves, the accounts have been prepared on going concern basis as the
Company is making an application for registration with the Board for
industrial and Financial Reconstruction (BIFR).
2. As required by manufacturing and other Companies (Auditor's Report)
order 1988, issued by the Central Government in the terms of section
227(4A) of the paragraph 4 and 5 of the said order is as per annexure.
3. Further to our comments the annexure referred to in paragraph I above,
we state 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 accounts as required by law have been
kept by the Company so far as it appears from our examinations of such
c. The Balance Sheet and Profit and Loss account dealt with by this report
are in accordance with the books of account maintained by the Company.
d. Liability for gratuity has been actuarially determined, nor any
provision has been made in accordance with Accounting Standard 15 issued by
the Institute of Chartered Accountants Of India.
e. No independent confirmation of balance of sundry debtors, sundry
creditors, loand and advance loan from Financial Institutions and other
parties has been produced before us and consequental impact, if any, could
f. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with notes thereon, given
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 Balance Sheet of the state of affairs of the Company as
at 31st March 1999 and
ii. In the case of Profit and Loss account of the Loss of the Company for
the year ended on that date.
For SHYAM C.AGRAWAL & CO.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph I of our report on the accounts for the year ended
31st March 1999 of Condequip ENGINEERS (INDIA) LTD.
1. The Company has maintained proper records showing full particulars
including quantitative details a situation of Fixed Assets. Fixed Assets
were physically verified by the management during the year. We were
informed that no material discrepancies were noticed by management on such
2. None of the fixed assets has been revalued during the year.
3. The stock of finished goods, stores spare parts and raw materials have
been physically verified by the management during the year.
4. In our opinion, the procedure of physical verification of stock followed
by the management are 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
such stocks as compared to book record.
6. On the basis of our examination of stock record, we are of the opinion
that the valuation of stores, spare parts and raw materials is fair and
proper in accordance with the normally accepted accounting principles.
7. The Company has not taken loans from firm or other parties listed in the
register maintained under section 301 and 370(1B) of the Companies Act,
8. The Company has granted loans to companies. firm or other parties listed
on the register maintained under section 301 and 370(1B) of the Companies
Act 1956. Loans granted by the Company are interest free.
9. In respect of Loans and advances in the nature of Loans, given by the
Company the principal amount is generally being repaid as stipulated and
payment of the interest wherever stipulated is also regular.
10. The company has adequate system of internal control with regards to
purchase of stores, raw materials including components, plant and
machinery, equipment and other assets and for the sale of goods
commensurate with size of the Company.
11. In our opinion and according to the information and explanations given
to us, the transactions of purchase of goods and materials and sale of
goods, made in pursuance of contracts entered in the register maintained
under section 301 of Companies Act, 1956 and aggregating during the
financial year of Rs. 50000/- or more in respect of each party have been
made at price that are reasonable having regard to prevailing market prices
for such goods, material or services have been made with other parties or
as available with the Company.
12. According to the information and explanations given to us Company has a
procedure for determination of unserviceable or damaged stores and raw
materials. Adequate provision has been made in the accounts for the loss
arising on the items so determined.
13. The Company has not accepted any deposits from the public during the
year within the meaning of section 58A of the companies Act, 1956 and the
Companies (acceptance of Deposits) Rule 1975.
14. The Company did not generate any realisable scrap during the period.
15. In our opinion the Company has not an adequate internal audit system
commensurate with the size and nature of its business.
16. The maintenance of cost record have not been prescribed by the Central
Government under section 209(1)(d) of the Companies Act, 1956 for the
financial year under review.
17. According to the information and explanations given to us and according
to the record of the Company the Provident Fund have been deposited during
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 at last date of financial year
for a period of more than six months from the date they become payable.
(Ref. Note No. 6&7 )
19. According to the information and explanations given to us, no personal
expenses have been charged to the revenue account there than those payable
under contractual obligations or in accordance with generally accepted
20. The Company is a Sick Industrial Company within the meaning of clause
(O) of sub section (I) of section 3 of the Sick Industrial Companies
(Special Provision) Act, 1985 and reference would be made to The Board for
Industrial And Financial Reconstruction ( BIFR ).
21. In respect of service activities.
i. The company has a reasonable system of recording receipts, issues and
consumption of material and stores and allocating, material consumed to the
relative job, commensurate with its size and nature of its business.
ii. There is reasonable system of authorisation at proper levels and
adequate system of internal control on issue of stores an allocation of
stores and labour to jobs, commensurate with the size of the company and
the nature of its business.
22. In respect of the Companies trading activity, we are inform that there
are no damaged stock.
For SHYAM C. AGRAWAL & CO.
Place : Mumbai
Dated : 27.05.99 S.C. AGRAWAL