ANNUAL REPORT 1998-99
GUJARAT FISCON LIMITED
GUJARAT FISCON LTD.
I have audited the attached Balance Sheet of " GUJARAT FISCON LIMITED " as
at 31st March, 1999 and the Profit and Loss Account for the year ended on
that date annexed thereto and report that:
1. As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 and on the basis of such checks as I considered necessary and
information and explanations given to me, l enclose in the annexure a
statement on the matters specified in Para 4 and 5 of the said Order.
2. Further to my comments in the Annexure referred to in Paragraph 1 above,
l state that :-
a) I have obtained all the information and explanations which to the best
of my knowledge and belief were necessary for the purpose of my audit.
b) In my opinion proper books of accounts as required by Law have been kept
by the Company so far as appears from my examination of such books.
c) The Balance Sheet and Profit & Loss Account referred to in this report
are in agreement with the books of accounts.
d) In my opinion, the Balance Sheet and Profit & Loss Account complied with
the requirements of the accounting standards referred to in Sub Section
(3C) of Section 211 of the comPanies Act. 1956.
e) In my opinion and to the best of my information and according to the
explanations given to me, the said Balance Sheet and the Profit & Loss
Account read together with the notes thereon give the information required
by the Companies Act, 1956 in the manner so required and give a true and
i) In case of the Balance Sheet of the state of affairs of the Company as
at 31st March, 1999 and
ii) In case of Profit and Loss Account, of the Profit of the Company for
the year ended on that date.
FOR PARIKH & TALATI
PLACE: Baroda S. R. PARIKH
DATE : 31st May, 1999 PARTNER
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. I have been
informed that these assets have been physically verified by the Management
during the year and that no material discrepancies were noticed on such
2. The fixed assets have not been revalued during the year.
3. The stocks of shares have been physically verified by the management
during the year. In my opinion the frequency of the verification is
4. In my opinion, procedures of physical verification of stocks followed by
the Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
5. No discrepancies have been noticed on the verification between physical
stock and book records.
6. In my opinion, the valuation of stock of shares is fair and proper and
in accordance with the normally accepted accounting principles.
7. The Company has not taken any loans secured or unsecured from Companies,
Firms or Other Parties listed in the Register maintained under Section 301
of the Companies Act, 1956.
8. The Company has not granted any loan, secured or unsecured, to
Companies, Firms or Other Parties listed in the Register maintained under
Section 301 of the Companies Act, 1956. 1 am informed that there are no
Companies under the same management as defined under Section 370(1-B) of
the Companies Act, 1956.
9. The patties, to whom loans or advances in the nature of loans have been
given are repaying the principal amounts as stipulated and are also regular
in payment of interest where applicable, except in respect of few parties
where there have been delays. The Company is taking reasonable steps
against these parties to recover the amount overdue including interest
10. In my opinion and according to the information and explanations given
to me, there are adequate internal control procedures commensurate with the
size of the Company and nature of its business for the purchase of plant &
machinery, equipment and other assets and also for sale of shares and
11. According to the information and explanations given to me, there are no
transactions for purchase and sale of goods, materials and services made in
pursuance of contracts or arrangements entered in the register maintained
under Section 301 of the Companies Act, 1956 aggregating during the year to
Rs. 50,000/- (Rupees Fifty Thousand Only) or more in respect of any Party.
12. In my opinion and according to the information and explanations given
to me, the direction issued by the Reserve Bank of India (RBI) and the
provisions of Section 58A of the Companies Act, 1956 and rules framed
thereunder are being complied with.
13. According to the information and explanations given to me, there were
no undisputed amounts, payable in respect of Income Tax, Sales Tax, Custom
Duty and Excise Duty which have remained outstanding as at 31st Match, 1999
for a period of more than six months from the date its became payable.
14. As per the information and explanations given to me, the nature of the
business of the Company does not necessitate the maintenance of the records
of receipts, issues and consumption of stores and the system for reasonable
allocation of materials and man hours consumed o the relative jobs.
15. As explained to me, the nature of the Company's business is such that
the question oi having a system ot authorisation at proper levels with
necessary control on the issue and allocation of stores, labour jobs and
any system of internal control commensurate with the size of the Company
and the nature of its business does not arise.
16. As per information furnished by the management and during the course of
examination of the books of account carried out, I have not come across any
personal expenses which have been charged to Profit & Loss Account other
than those payable under contractual obligations or in accordance with
generally accepted business practice.
17. Proper records have been maintained for the transactions relating to
trading in shares, securities, debentures and other investments and entries
therein have been made generally on a timely basis. Investments are held
in the name of the Company. Securities held by the Company as Stock-in-
trade" are generally sent for transfer in the name ot the Company unless
they are held with the intention ot selling prior to registration in its
own name. Subsequent to the transfer, securities are held in the name of
the Company, except for securities under objection.
18. The Company has an Internal audit system commensurate with the size and
nature of its business.
19. As informed to me, the Employees Provident Fund Scheme and the
Employees State Insurance Act are not applicable to the Company.
20. As required by the Non Banking Financial Companies Auditors Report
(Reserve Bank) Directions, 1998, we further state that we have submitted a
Report to the Board of Directors of the Company containing a statement on
the matters of supervisory concern to the Reserve Bank of India as
specified in the said Directions, namely the following :-
i) The Company, incorporated prior to January 9, 1997, had applied for
registration as provided in Section 451A of the Reserve Bank of India Act,
1934 (2 of 1934), and has not received any communication from Reserve Bank
of India, about the grant or refusal of Certificate of Registration as on
ii) The Board of Directors of the Company has passed a Resolution for non-
acceptance of any public deposits.
iii) The Company has not accepted any public deposits.
iv) The Company has complied with the prudential norms relating to income
recognition accounting standards. asset classification and provisioning of
bad and doubtful debts as applicable to it.
FOR PARIKH & TALATI
PLACE: Baroda S. R. PARIKH
DATE : 31st May, 1999. PARTNER