LAKSHMI TRADE CREDITS LIMITED
The Shareholders of
LAKSHMI TRADE CREDITS LIMITED, CHENNAI
We have examined the balance Sheet of M/s LAKSHMI TRADE CREDITS LTD
Chennai, as at 31st March, 1998 and the annexed Profit and Loss Account for
the year ended on that date with the books of the Company and report that:
1.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 paragraphs 4 and 5 of the said order.
2.Further to our comments in the Annexure referred to in paragraph 1 above:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
(b) 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 thereon
give the information required by the Companies Act, 1956 in the manner so
required and subject to:
(i) Note No. 2 : On the account regarding certificates of registration
(ii) Note No. 3 : On the accounts regarding confirmation of balances.
(iii)Note No. 6 : Regarding maintenance of liquid assets.
(c) In our opinion, proper books of account, required by law, have been
kept by the Company so far as appears from our examination of those books.
(d) The Company's Balance Sheet and the Profit and Loss Account dealt with
by this report are in agreement with the books of account.
(e) In our opinion, the Balance Sheet gives a true and fair view of the
state of Company's affairs as at 31st March,1998 and the Profit and Loss
Account gives a true and fair view of the Losses of the Company for the
year ended 31 st March 1998.
For K.G. PURUSHOTHAMAN & CO.
Place: Chennai K.G.PURUSHOTHAMAN
Date : 20th,August,1998 Proprietor
ANNEXURE TO THE AUDITORS' REPORT
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing all particulars
including quantitative details and situation of fixed assets. The
equipment on lease have been physically verified by the management in
accordance with a regular programme which in our opinion is reasonable. All
other assets have been physically verified by the management during the
year. No discrepancies were noticed on such physical verification.
2. None of the fixed assets have been revalued during the year.
3. The Company being primarily a Finance Company, the Company does not hold
any finished goods, stores, spare parts or raw materials hence the sub-
clauses (iii), (iv), (v), (xii) (xiv) of paragaraph 4(A) of the
Manufacturing and Other Companies (Auditors Report) Order, 1988 are not
4. The Company has not taken loans, secured or unsecured from Companies,
firms or other parties listed in the Register maintained under Section 301
of the Companies Act, 1956, and or from Companies under the same
management, as defined under Sub-Section (1-B) of Section 370 of the
Companies Act, 1956.
5. The Company has granted loans to Companies/parties listed in the
Register maintained under Section 301 of the Companies Act,1956. On the
basis of explanations furnished by the management the rate of interest and
other terms and conditions of such loans are not prima facie prejudicial to
the interest of the Company.
6. a) Loans and Advances in the nature of loans have been given to
employees and other parties who are repaying the principal amounts as
stipulated and are regular in payment of interest wherever applicable,
except in some loans where there is delay in repayment of principal and
interest as stipulated for which the company has taken reasonable steps for
the recovery of the same.
b) In respect of amounts overdue under financing operations entered into by
the company, in the ordinary course of business, we are of the opinion that
reasonable steps have been taken by the Company for the recovery of the
7. In our opinion and in accordance with the information and explanations
given to us, there are adequate internal control procedures commensurate
with the size of the Company and nature of its business, for purchase of
8. There were no purchase of goods and materials in pursuance of contract
or arrangements entered in the Register maintained under Sec.301 of the
Companies Act,1956. There were sale of services for values aggregating to
Rs.50,000/- or more during the year in respect of companies or other
parties in pursuance of contracts or arrangements which are required to be
entered in the Register maintained under Section 301 of the Companies Act,
1956, and in our opinion, the prices paid for such services are reasonable
having regard to the prevailing market prices of such services and as
compared to the prices similar services supplied to other parties.
9. The provisions of Section 58A except Section 58A (2)(b) d the
Companies Act, 1956, are not applicable to the Company. However, the
Company has accepted deposits from the public in respect of which the
directives issued by the Reserve Bank of India in terms of the Non-Banking
Financial Companies, acceptance of public deposits (Reserve Bank)
Directions, 1998 have not been complied within so far as: Maintenance of
10. The Company has no separate internal audit systems. However, in our
opinion, the existing internal control procedures are sufficient
considering the size and nature of the business of the Company.
11. The Central Government has not prescribed the maintenance of cost
records under Sec.209 (1) (d) of the Companies Act, 1956.
12. The Company is regular in depositing the Provident Fund and the
Employee's State Insurance dues with the appropriate authorities.
13. There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sales tax, Customs duty and Excise duty as on 31st March,1998
for a period of more than six months from the date they became payable.
14. To the best of our knowledge and according to the information and
explanations given to us, there are no expenses of personal nature charged
to the revenue account.
15. Being a Finance Company, the provisions of section 3(1) (o) of the Sick
Industrial Companies (special Provisions) Act, 1985 are not applicable to
16. The Company has maintained necessary documents and records for loans
and advances granted on the basis of security by way of pledge and
17. According to the information and explanations given to us, the
provisions of special status applicable to Chit Fund, Nidhi or Mutual
Benefit Society are not applicable to the Company.
For K.G.PURUSHOTHAMAN & CO.
Place : Chennai K.G.PURUSHOTHAMAN
Date : 20th August, 1998. Proprietor