GUJARAT CYPROMET LIMITED
ANNUAL REPORT 2002-2003
The Members of,
GUJARAT CYPROMET LIMITED.
We have audited the attached Balance Sheet of M/S GUJARAT CYPROMET LIMITED
AS AT 31ST MARCH 2003, AND also the annexed profit & loss Account of the
Company for the 9 months ended 31st March 2003. These financial statements
are the responsibility of Company's management. Our responsibility is to
express an opinion on these financial statements used or our Audit.
We conducted our audit in accordance with a editing standards generally
accepted in India. Those Standards require than 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
statement. An Audit also includes assessing the accounting principles used
and significant estimates mode 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, 1988,, issued by the central government in terms of section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in Para 4 and 5 of the said order to the extent
applicable and based on such checks is are considered appropriate.
Further to our comments in the Annexure erred to above:
1. We have obtained all the information and explanations, which to the best
of our knowledge are belief were necessary for the purpose of Audit.
2. In our opinion, proper books of accounts as required by this have been
kept by the company so Far as appears from our examination of the books.
3. The Balance Sheet and Profit & loss account dealt with by this Report
are in Agreement with the books of accounts.
4. In our opinion Balance Sheet and profit & loss Account comply with the
Accounting Standards referred in sub-section (3C) of section 211 of the
companies Act, 1956 to extent applicable.
On the basis of written representation received from the Directors other
than three nominee Directors (Nominee of IDBI, GIIC and GSFC) and taken on
records by the Board of Directors, we report that none of the Directors
from whom representations have been received, is disqualified as on 31st
March, 2003 from being appointed as a director in terms of clause (a) of
sub-section (1) of section 274 of the Companies Act, 1956.
6) (i) As stated In note 14 of Schedule 14, we have relied upon management
certificate/ representation In respect of type & quantum and valuation of
inventories of work-in progress as at 31/03/2003.
(ii) As stated in note-12 of schedule - 14, the balances of debtors,
creditors, deposits, And loans and advances as weft as certain transactions
are subject to confirmation and have been accepted by us as certified &
recorded in tire books of accounts of the company.
(iii) Provisions for doubtful debts of Rs. 348/- lakhs, has been made in
Subject to above, in our opinion and to the best of our information and
according to the explanations given to us, the accounts read wit notes
thereon give 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, 2003.
(ii) In the case of Profit & loss Account, of the loss for the year ended
at 31st March 2003.
For, Naimish K Shah & Co.
Date : 1st May 2004
Place : Ahmedabad.
ANNEXURE TO THE AUDIT REPORT AS REQUIRED BY THE MANUFACTURING AND OTHER
COMPANIES (AUDITOR' REPORT) ORDER 1988.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The
management during the year has physically verified the fixed assets of the
company and no material discrepancies were noticed on verification.
2. None of the Fixed Assets have bean revalued during the year.
3. The stocks of finished goods, stores, spare parts and raw materials have
boon physically verified by the management during the year at reasonable
intervals. The stock of trading goods have not been physically verified.
4. In our opinion and according to the informations and explanations given
to us, the procedures of physical verification of the stocks followed by
the management are reasonable and adequate in relation to the size of the
company and nature of its business.
5. Discrepancies noticed on physical verification of stocks as compared to
books records were not material and the same have been properly dealt with
in the books of accounts.
6. On the basis of our examination of stock records, in our opinion, the
valuation of stocks is fair and proper in accordance with the normally
accepted accounting principles and is on the some basis as in the preceding
7. The company has not taken any loan from companies, firms, or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956,
As per the informations and explanations given to us, there is no company
under the some management as defined under section 370(1-B) of the
Companies Act, 1956.
8. As per the information and explanation given to us the company has not
granted any loan, secured or unsecured to the Companies under the same
management as defined under sub section 370 of the Companies Act, 1956.
9. In respect of loans and advances given, including to the employees,
principal and interest installments ore being recovered as stipulated.
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 the nature of its business for the purchase Plant
and machineries, equipments and other assets and for the sale of goods.
11. As per the information and explanations given to us, the company has
not entered in ho transaction in pursuance of contracts or arrangements
made under section 301 of the Companies Act, 1956.
12. As explained to us, there were no unserviceable damaged raw materials,
stores and finished goods.
13. As explained to us, the company has not accepted any deposits from the
public as we are explained that the deposits raised are in pursuance of
stipulation of financial institution by way of promoters' contribution,
which does not fall under the purview of section 58A of the Companies Act,
14. The Company has maintained reasonable records for the sale and disposal
of scrap. The Company has no By-Products.
15. The Company does not have any formal internal Audit System.
16. As per the information and explanation given to us the Company is not
required to maintain the Cost records in the manner and as proscribed by
the Central Government under section 209(1) (d) of the Companies Act, 1956.
17. Provident Fund dues have not been deposited with the appropriate
authorities during the year and arrears as on 31/03/2003, were Rs. 3.68
lakhs. Provisions of Employees state insurance are not applicable to the
18. According to the Information and explanations given to us, there were
no undisputed amounts payable in respect of Income-Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty as at March 31, 2003 were outstanding for
a Period of more than six months from the date they became payable except
for Income tax including tax deducted at source of Rs. 25.74 lakhs.
19. The Company is a sick industrial Company within the meaning of clause
(o) of sub section (1) of the Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985 and registration has been obtained by the
company with the Board for Industrial and Financial Reconstruction (BIFR),
For Naimish K. Shah & Co.
N. K. Shah
Place : Ahmedabad
Date : 1st May, 2004