ANNUAL REPORT 1998-99
DYNA LAMPS AND GLASS WORKS LIMITED
To the Members of Dyna Lamps and Glass Works Limited
We have audited the attached Balance Sheet of Dyna Lamps ad Glass Works
Limited as on 31st March 1999 and the Profit and Loss Account of the
Company for the year ended on that date annexed thereto and report that:
1. As required by the Manufacturing and other Companies (Auditors Report)
Order 1988 issued by the Company law Board in terms of Section 227 (4A) of
the Companies Act 1956, we annex hereto a statement on the matters
specified in paragraph 4 and 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph 1
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 appears from our examination of the books.
c) The Balance Sheet and Profit and Loss Account dealt with by
this report are in agreement with the books of accounts.
d) Subject to non-provision of depreciation as per Accounting standard - 6
issue(l by ICAI, the Balance Sheet and Profit & Loss Account referred to in
this report are drawn up in accordance with sub-section (3C) of section 211
of the Companies Act, 1956.
e) Confirmation of Debtors of Rs.1,30,19,148 included in schedule VII and
under Creditors of Rs.3,,68,95,574 included in schedule Xll are not
obtained and hence taken as correct as per Books of Accounts.
f) SubJect to the above, in our opinion and to the best of our information
and according to the explanations given to us, the accounts give the
information required by the Companies Act, 196 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
on 31st March 1999 and
ii) In the case of Profit and Loss Account, Or the loss of the Company for
the year ended on that date.
For KARRA & CO
Chennai K.PREM KUMAR
Date: 29.11.99 Partner
Annexure referred to in Paragraph l of the Auditors' Report to the members
of Dyna Lamps and Glass Works Limited on the Accounts for the year ended
31st March 1999.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
The fixed assets have been physically verified by the Management during the
year. We are of the opinion that the frequency of verification is
reasonable having regard to the size of the Company and the nature of its
fixed assets. The discrepancies noticed on verification were not material.
2. None of the fixed assets have been revalued during the year.
3. The stock of raw materials, packing materials and finished goods have
been physically verified by the Management at reasonable intervals during
the year. 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. The discrepancies
noticed on physical verification of stocks as compared to the book records
were not material and the same have been properly dealt with in the books
4. on the basis of our examination of stock records, we are of the opinion
that the valuation of stocks is fair and proper and is in accordance with
the normally accepted accounting principles and is on the same basis as in
the preceding year.
5. The Company has taken unsecured loans from Companies, firms and other
parties listed in the register maintained under Section 301 of the
Companies Act, ] 956 and these are not prejudicial to the interest of the
6. The Company has not ranted any loans secured-or unsecured to Companies,
firms or other parties listed in the register maintained under Section 301
of the Companies Act, 1956.
7. In respect of loans and advances in the nature of loans given by the
Company including staff advances, the parties are repaying the amount as
8. 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, materials and services made in pursuance of contracts; or
arrangement entered in the register maintained under Section 301 of the
Companies Act, 1956 and aggregating during the year Rs.50,000/- or more in
respect of each party were responsible and are in accordance with the rates
prevailing in the market.
9. 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 for purchase of raw
materials, packing materials, plant and machinery, equipment and other
assets and for the sale of goods.
10. As explained to us, the Company has regular procedure for the
determination of unserviceable or damaged raw materials, stores and
11. In-our opinion- reasonable record have been maintained by the Cornpany
for the sale and disposal of realisable scrap. As explained to us, the
Company's operations do not generate any realisable by-product:.
12. The Internal audit system needs to be strengthened.
13. The Central Government has prescribed under Section 209(1) (d) of the
Companies Act 1956, maintenance of cost records and whilst we have not made
a detailed examination of these records, prima facie it appears that the
prescribed accounts and records have generally been maintained.
14. The Company has not accepted any deposits .rom the public attracting
the provisions of Section 5A of the Companies Act, 1956 and the Companies
(Acceptance of Deposit) Rules 1975.
15. The provisions of the Provident Fund Act applied to the Company.,
According to the records of the Company there are arrears of contribution
under the Provident Fund Act and ESI Act.
16. 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 on 31 st March 1999
for a period of more than six months from the date they became payable.
17. According to the information and explanations given to us and the
records of the Company examined by US, no personal expenses have been
charge to Revenue account other than those payable under contractual
obligations or in accordance with generally accepted business practice.
18. The Company is a Sick Industrial Company as defined under section
3(i)(o) of the Sick Industrial Companies special Provisions) Act, 1985.
For KARRA & CO
Chennai K. PREM KUMAR
Date: 29-11-99 Partner