GLOBAL SYNTEX (BHILWARA) LTD.
ANNUAL REPORT 1999-2000
AUDITORS' REPORT TO THE MEMBERS
To the Shareholders,
We have audited the attached Balance Sheet of GLOBAL SYNTEX (BHILWARA)
LIMITED as at 31st March, 2000 and Profit & Loss Account of the company for
the year ended on that date, both annexed hereto and report that :-
1. As required by the manufacturing and other company's (Auditors' Report)
Order, 1988 issued by the Company Law Board in terms of section 227 (4A) of
the Companies Act, 1956 we enclose in Annexure 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 informations and explanation 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 the law have
been kept by the company so far as appears from our examination of these
(c) The Balance Sheet and Profit & Loss account are in agreement with the
books of accounts.
(d) In our opinion, the Profit and Loss account and Balance sheet comply
with the requirments of the accounting standards referred to in sub-section
(3c) of section 211 of the Companies Act, 1956
(e) i) The company has capitalised under Fixed Assets, the interest for the
entire period of loans, during the year 1985-86 in the books resulting in
the gross block of fixed assets being higher by Rs. 70,27,450/-. Further
the Company has provided depreciation during the year under review
amounting to Rs.2694341/- includes Rs. 53138/- on capitalised interest
(Refer note 4 & 6 of schedule 16).
The method of accounting of interest adopted by the company is based on the
legal opinion in the matter how ever which is not in accordance with the
method recommended by the institute of chartered Accountants of India.
ii) The Company has not followed accounting policy No.1 (G) of schedule 16
relating to accounting of retirement benefits on cash basis which is not in
accordance with Accounting Standared 15 issued by the Institute of
Chartered Accountants of India.
iii) The provision for income tax is based on the computation made by the
company's tax advisors which is shorter by Rs. 61384/- as per provisions
of minimum alternate tax as such the profit after tax is higher to that
iv) Subject to the foregoing, in our opinion and to the best of our
informations and according to explanations given to us, the account read
together with notes thereon give information required by the Companies
Act,1956 in the manner so required and give a true and fair view.
a) In case of Balance Sheet of the State of affairs of the company as at
31st March, 2000.
b) In case of the Profit & Loss Account, Profit of the company for the year
ended on that date.
FOR P. MEHTA & ASSOCIATES
Place: Bhilwara PRAVEEN MEHTA
Date: 12.08.2000 PROPRIETOR
ANNEXUE TO AUDITORS' REPORT
REFERRED TO IN PARAGRAPH 1 OF THE AUDITOR'S REPORT OF EVEN DATE ON THE
ACCOUNT OF GLOBAL SYNTEX (BHILWARA) LIMITED FOR THE YEAR ENDED ON 31st
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The updation
of the fixed assets register for the year under completion. The fixed
assets has been physically verified by the management during the year under
review and as informed to us no serious discrepancies were noticed.
2. The fixed assets of the company have not been revalued during the year.
3. As explained to us, the stocks of finished goods have been physically
verified by the management at the end of the financial year. The stock of
stores, spare parts and raw materials have also been physically verified by
the management during the financial year. In our opinion, the frequency of
such verification is reasonable
4. 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. The discrepancies noticed on physical verification of stocks as compared
to book records which in our opinion, were not material and these have been
properly dealt with in the books of accounts.
6. In our opinion and on the basis of our examination, the valuation of
stock is fair and proper in accordance with the normally accepted
accounting principles and is on the same basis as in the earlier year.
7. In our opinion, the rates of interest and other terms and conditions on
which loans have been obtained from parties listed in the registers
maintained under section 301 are not prima facie prejudicial to the
interest of the company. The provision of section 370 of companies Act,1956
has been omitted w.e.f. 31.10.1998.
8. The company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained under
section 301 of the companies Act, 1956. The provision of section 370 of
companies Act,1956 has been omitted w.e.f. 31.10.1998.
9. In respect of loans and advances in the nature of loans given to
employees, bodies corporate and others recovery of Principal amount and
interest, wherever applicable, have been as stipulated.
10. In our opinion and according to the information and explantion given to
us during the course of Audit, there is an adequate internal control
procedure commensurate with the size of the company and the nature of its
business for the purchase of stores, raw materials including components,
plant and machinery, equipments and other assets and for the sale of goods.
11. In our opinion and according to the explanations given to us, the
prices of goods and materials purchased and of sales of goods, materials
and services made pursuant to contracts entered in register maintained
under section 301 of the Companies Act, 1956 aggregating to Rs.50,000/- or
more in respect of each party, are reasonable having regard to prevailing
market prices for such goods, materials or services of the parties at which
the transaction for similar goods or services have been made with other
12. Unserviceable or damaged stores, raw materials or finished goods are
determined and provision for the loss wherever necessary has been made in
13. The company has not accepted any deposit from the public attracting the
provisions of section 58 A of the Companies Act,1956 and the rules framed
14. In our opinion, the company has maintained reasonable records for sale
and disposal of the realisable scraps.
15. In our opinion, the company has an internal audit system commensurate
with its size and nature of its business. However the scope of the same
needs to be further enlarged.
16. The Cost accounts and records as prescribed by the central Government
under Section 209(1) (d) of the companies Act, 1956 are under compilation.
17. The company is regularly depositing the employee state insurance &
provident fund except a sum of Rs. 325989/- with the appropriate
18. There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sales Tax and Excise duty as at 31st March,2000 which were
outstanding for a period of more than six months from the date they become
19. In our opinion and according to the informations and explanations given
to us personal expenses have not been charged to revenue account other than
those payable under contractual obligations or in accordance with generally
accepted business practice.
20. The company is not 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 the trading activities, there is a procedure for the
determination of damaged goods and provision for the loss wherever
necessary, is made in the accounts.
For P. MEHTA 8 ASSOCIATES
Place: Bhilwara (PRAVEEN MEHTA)
Date: 12.08.2000 PROPRIETOR