KABRA AGRO INDUSTRIES LIMITED
ANNEXURE REPORT TO THE SHAREHOLDERS
We have audited the attached Balance Sheet of M/s KABRO AGRO INDUSTRIES
LIMITED, PIPARIYA as at 31st March, 1998 and Profit and Loss Account for
the year ended on that date annexed thereto and we report as follows:
1. As required by the manufacturing and other companies (Auditors Report)
Order 1988 issued by the Company Law Board in terms of Section 227 (440 of
the Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraph 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph 1
(a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of the audit.
(b) in our opinion proper books of account as required bylaw have been kept
by the company so far as appears from our examination of the books of the
(c) The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account of the company.
(d) In our opinion and to the best of our information and according to
explanations given to us the said accounts together with and subject to
significant accounting policies and other notes thereon give the informa
tion required by companies Act, 1956 in the manner so required and give a
true and fair view:-
i) in the case of the Balance Sheet of the State of the affairs of the
Company as at 31.03.98 and
ii) in the case of the Profit and Loss Account of the Profit of the year
ended on that date.
For R.C. BAHETI & CO.,
ANNEXURE TO THE AUDITOR REPORT
Annexure referred to in paragraph (1) of the report of even date of the
Auditor of the Member of M/s KABRA AGRO INDUSTRIES LIMITED, PIPARIA as on
31st March, 1998.
1. The Company has maintained records showing full particulars including
quantitative details and situation of Fixed Assets. All the Fixed Assets
have been physically verified by the management till the date of acquisi
tion by M.P.A.V.N.
2. None of the Fixed Assets have been revalued during the year.
3. Physically verification has been conducted by the management at reasona
ble interval in respect of finished goods, stores & spare and raw materi
4. The procedures of physical verification of stock followed by the manage
ment are reasonable and adequate in relation to the size of the company and
the nature of its business.
5. The discrepancies noticed during the physical verification were not
material as compared to book records.
6. In our opinion, the valuation of stock is fair and proper and in accord
ance with the normal accepted accounting policies and is on the same basis
is as in the earlier year.
7. Except interest free loans arranged by the promoters in pursuance of the
stipulation imposed by the Financial Institution in fulfillment of the
obligation cast upon them, the Company has not taken any loan from compa
nies, firms or other parties listed in the register maintained under sec
tion 301 of the Companies Act, 1956. The terms of the said loans are not
prima facie prejudicial to the interest of the company. As explained to us
there is no Company under the same management as defined under sub-section
(1-B) of Section 379 of the Companies Act, 1956.
8. The Company has not granted any loan secured or unsecured to companies,
firms other parties listed in the register maintained under section 301 of
the Companies Act, 1956. As explained to us there is no company under the
same management as defined under Section 370 (1-B) of the Companies Act.
9. The Company has not advanced any loans or advances in the nature of loan
during the year under review except temporary advance to staff which is not
prima facie prejudicial to the interest of the Company.
10. On the basis of checks carried out during the course of Audit and as
per explanation given to us there is an adequate internal control procedure
commensurate with size of the company and nature of its business with
regards to purchase of store, plant & machinery equipment and other assets
and with regard to sale of goods.
11. In our opinion and according to the information and explanations given
to us there were no transaction for purchase of goods, materials and sale
of goods, materials and service made in pursuance of the contracts or
arrangements entered in the register maintained u/s 301 of the Companies
Act, 1956 during the year.
12. As explained to us the Company has a regular procedure for the determi
nation of unserviceable or damaged stores, raw materials and finished
13. The Company has not accepted any deposit from public.
14. In our opinion reasonable records have been maintained by the Company
for sale and disposals of bye-products and scrap.
15. The company has an internal audit system conducted by the member of the
management which in our opinion is not appropriate with the size and nature
of its business.
16. As informed to us, the Central Government has prescribed for mainte
nance of cost records u/s 209(1)(d) of the Companies Act. The same are not
made available for our review & examination.
17. According to the records of the company provident fund dues have not
been generally regularly deposited with appropriate authorities. It has
been explained to us that the State Government has not provided facilities
under Employee State insurance scheme at the place where factory is situat
18. According to the information and explanations given to us, no undisput
ed amount payable in respect of Income Tax, Custom Duty and Excise Duty
were outstanding as on 31st March, 1998 for a period of more than six
months from the date they become payable except sales tax and entry tax
amount to Rs. 8,547 thousand (Previous Year Rs. 6,300 thousand).
19. During the course of examination of books of account carried out in
accordance with the generally accepted business needs and exigencies, we
have not come across any expenses regarded personal expenses charted to
revenue account, other than expenses under contractual obligations with the
20. According to the information and explanation given to us and in our
opinion the Company has become a sick Industrial company within the meaning
of clause (o) of Sub-Section (1) of Section 3 of the sick industrial compa
nies (special provisions) Act, 1985.
21. In respect of trading activities of the Company we are informed that
there are no damaged goods.
For: R.C. BAHETI & CO.
Place: Bhopal (R.C. BAHETI)