HITECHI JEWELLERY INDUSTRIES LIMITED
ANNUAL REPORT 2000-2001
Hitechi Jewellery Industries Limited
Mumbai - 400 002.
We have audited the attached Balance Sheet of Hitechi Jewellery Industries
Limited as at 31st March, 2001and also Profit & Loss account of the Company
for the year ended on that date annexed thereto and report that:
1. 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.
2. In our opinion, proper books of accounts as required by law have been
kept by the Company so far as it appears from our examination of those
3. The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account.
4. In our opinion and to the best of our information and according to the
explanations given to us the said Balance Sheet and Profit and Loss
accounts read together with the notes thereon and attached thereto, comply
with the Accounting Standards referred to in sub-section (3C) of section
211 of the Companies Act, 1956.
5. In our opinion, and based on information and explanations given to us,
none of the Directors are disqualified as on 31st March, 2001 from being
appointed as Directors in terms of Clause (g) of subsection (1) of section
274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to the
explanations given to us the said accounts read with the notes in Schedule
`P' and particularly the sub-note 2 to 11 regarding impractacability of
furnishing certain quantitative information, give the information required
by the companies Act, 1956 in the manner so required and give a true and
i) In the case of the Balance Sheet, of the state of affairs of the company
as at 31st March, 2001 and
ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date:
As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956 and on the basis of such checks as were considered
appropriate and according to the information and explanation given to us
during the course of audit, we further state that:
1. The Company is in the process of updating its record to show full
particulars including quantitative details and situation of fixed assets.
As explained to us the assets have been physically verified by the
management at regular intervals. Discrepancies, if any, will be accounted
during the course of updating the fixed assets register. Frequency of the
verification in our opinion is reasonable.
2. None of the Fixed Asserts have been revalued during the year.
3. In our opinion and according to the information and explanations given
to us, the physical verification of finished goods and raw materials was
conducted at the year end. In our opinion considering the nature of the
business, physical verification of stock should be more frequent.
4. In our opinion and according to the information and explanations given
to us, the Procedure of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of the
Company and nature of its business.
5. As informed, there were no material discrepancies noticed on physical
verification of stock as compared to book records wherever applicable
considering the operations of the Company and the same have been properly
dealt with in the books of account.
6. In our opinion and according to the information and explanations given
to us, 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
7. In our opinion, the rate of interest and the terms and conditions on
which loans have been taken from companies, firms or other parties listed
ire the register maintain under section 301 and 370(1C) of the Companies
Act, 1956, wherever applicable, are not prima facie prejudicial to the
interest of the company.
8. The company has not granted any loans to parties listed in the register
maintained U/s 301 of the Companies Act, 1956, We have been informed that
there is no company under the same management within the meaning of section
370 (1B) of the Companies Act 1956.
9. The company has not given any loans or advances in the nature of loans.
10. The company does not have adequate system of internal control for the
purchase of raw materials, plant and machinery, equipment and other similar
assets and sale of goods, commensurate with the size of the company and
nature of its business. The existing system needs to be strengthened,
organised and formalised.
11. In our opinion and according to the information and explanations given
to us, the transaction of purchase of goods and materials and sales of
goods, materials and services, made in pursuance of contract or arrangement
entered in the register maintained U/s 301 of the Companies Act, 1956, and
aggregating during the year to Rs.50,000/- or more in respect of each
party, have been made at prices which are reasonable having regard to
prevailing market price for such goods, materials or services, where such
market prices available with the Company or the prices at which transaction
for similar goods, or services have been made with other parties.
12. As explained to us, the Company has regular procedure for determination
of unserviceable or damaged raw materials and finished goods. According to
information and explanations given to us, adequate provision has been made
in accounts for the loss arising on the items so determined.
13. We are informed that the company has not accepted any deposit from the
14. According to information and explanation given to us, their are no by-
products arising from the manufacturing activity of the company. As
explained to us, the value of realisable scrap being insignificant,
quantitative records are maintained.
15. The company does not have any internal audit system.
16. We are informed that the Central Government has not prescribed
maintanence of cost record under Section 209(1)(d) of the Companies Act,
17. As per information and explanation given to us by the Company, the
Employees provident Fund and Miscellaneous Provisions Act, 1952 and the
Employee's State Insurance Act 1948 are not applicable to the Company.
18. As per information and explanation given to us, there was no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Custom Duty and Central Excise duty which have remained outstanding as on
31st March 2001 for a period of more than six months from the date they
19. According to information and explanation given to us no personal
expenses have been charged to revenue account, other than those payable
under contractual obligations, or in accordance with generally accepted
20. The Company is not a Sick Industrial Company within the meaning of
Clause `O' of sub-section (1) of section 3 of the Sick Industrial Companies
(Special) Provisions Act, 1985.
For K.P. Joshi & Co.
Place : Mumbai K.P. Joshi
Date : 31st August, 2001 Proprietor