GILT PACK LIMITED
ANNUAL REPORT 2002-2003
THE MEMBERS OF M/S GILT PACK LTD.
We have audited the attached Balance Sheet of Gilt Pack Ltd as at 31st
March 2003 and also the Profit and Loss Account 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 statements
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 presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Manufacturing and Other Companies(Auditor's Report)
Order,1998 issued by the Central Government of India in terms of sub-
section(4A) of section 227 of the Companies Act,1956,we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the
Further to the comments in the Annexure referred to above,we report that:
(i) 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;
(ii) In our opinion,proper books of account as required by law have been
kept by the company so far as appears from our examinations of those books.
(iii)The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
(iv) In our opinion,the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section(3C) of section 211 of the Companies Act,1956.
(v) On the basis of representations received from the directors,as on 31st
March 2003 and taken on record by the Board of Directors,we report that
none of the directors is disqualified as on 31st March 2003 from being
appointed as a director in terms of clause (g) of sub-section(1) of section
274 of the Companies Act,1956.
(vi) In our opinion and to the best of our information and according to the
explanations given to us,the said accounts subject to the note no. A (iii)
& H,other notes thereon give the information required by the Companies
Act,1956,in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet of the state of affairs of the Company
as at 31st March 2003,and
b) In the case of the Profit and Loss Account of the loss for the year
ended on that date.
c) In the case of cash flow,statement of cashflow for the year ended on
Annexure to the Auditor's Report:
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 and
no material discrepancies between the book records and the physical
inventory have been noticed on such verification.
2) None of the Fixed Assets have been revalued during the year.
3) In our opinion and according to the information and explanations given
to us the physical verification of the finished goods,stores,spare parts
and Raw Materials was conducted by the management at reasonable intervals
during the year.
4) In our opinion and according to the information and explanations given
to us the procedure of physical verification of stocks followed by the
management were found reasonable and adequate in relation to the size of
the Company and the nature of its business.
5) The discrepancies noticed on such verifications as compared to book
records,which were not significant have been properly dealt with in the
books of account.
6) In our opinion,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 previous year.
7) During the year,no loans have been taken from Companies,firms or other
parties listed in the Register maintained u/s 301 of the Companies
8) In our opinion and according to the information given to us the company
has not granted any loans secured or unsecured to companies,firms or other
parties listed in the Companies Act, 1956 or to Companies under the same
management with the the meaning of section 370(1B) of the Companies
9) In respect of loans and advance in the nature of loans given by the
Company are being recovered as stipulated and have also been regular in
payment of interest.
10.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 nature of its business with regard to purchase of
stores,raw materials including the components,plant and machinery,equipment
and other assets and for the sale of goods.
11. According to the information and explanations given to us ,transactions
of purchase of goods and materials and sale of goods,materials and services
,made in pursuance of contract or arrangement falling under Section 301 of
the Companies Act,1956 and aggregating to Rs 50,000/- or more during the
year in respect of each party have been made at prices which are reasonable
having regards to the prevailing market prices for such goods,materials
or services at the prices of which transactions for similar goods or
materials or services have been made with other parties.
12. As informed to us the Company has regular procedure for the
determination of unserviceable or damaged stores and raw materials.
Adequate provisions have been made in the accounts for the loans arising on
the items so determined.
13) The Company has not accepted any deposits from the public during the
14) In our opinion and as per explanations given to us,reasonable records
have been maintained by the company for the sale and disposals of
15) In our opinion,the company has an adequate Internal Audit System
commensurate with the size and nature of its business.
16) We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1)(d) of the Companies
Act,1956 for product of the Company.
17) The Company is regular in depositing Provident Fund and Employees State
Insurance dues with the appropriate authorities.
18) According to the information and explanations given to us there were no
any undisputed amounts payable in respect of Income tax, Sales Tax,Customs
Duty and Excise Duty were outstanding as at the last date of the financial
year concerned for a period of more than six months from the date they
19) According to the information and explanations given to us and the
records of the Company examined by us no personal expenses have been
charged to the revenue account,other than those payable under contractual
obligation or in accordance with the generally-accepted business practice.
20) The Company is a Sick Industrial Company within the meaning of
clause(0) of Sub-section(1) of Section 3 of the Sick Industrial
Companies(Special Provisions) Act,1985.
21) In respect of goods traded,the company has a system of determination of
damaged goods and providing for losses on the same.
For ADESHWAR C.JAIN & CO.
Place : Indore A.C.JAIN
Dated : 19th August,2003 Proprietor