ANNUAL REPORT 1998-99
MINTAGE ELECTRO EQUIPMENTS LTD.
TO THE MEMBERS OF MINTAGE ELECTRO EQUIPMENTS LIMITED
We have audited the attached Balance Sheet of M/s.Mintage Electro
Equipments Limited as at 31st March,1999 and also the Profit & Loss Account
of the Company for the year ended on that date, annexed thereto and report
1. As required by the Manufacturing and Other Companies ( Auditors'Report)
Order,1988; issued by the Company Law Board in terms of Section 227 (4A) of
the Companies Act,1956, we annex here to a statement on the matters
specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the foregoing paragraphs we report that:
a) We have obtained all the information and explanations which to the best
of our acknowledge and belief where necessary for the purposes of our
b) In our opinion proper books of account as required by law have been Kept
by the company so far as it appears from our examination of the books.
c) The Balance Sheet dealt with this report is in agreement with books of
d) In our opinion the Balance Sheet & Profit & loss Account dealt with by
this are fairly are in compliance with the Accounting Standards (AS)
referred to in Section 211 (c) of the Companies Act 1956.
e) In our opinion,and to the best of our knowledge and according to the
information and 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 gives a true and fair view:
i) In the case of Balance Sheet of the state of affairs of the Company as
at 31st March,1999.
ii) In the case of Profit and Loss Account of the profit of the Company for
the year ended on that date.
For KAMLESH.B.MEHTA CO.
Date : 25th Nov,1999.
REPORT OF THE AUDITORS TO THE SHAREHOLDERS
ANNEXURE TO THE AUDITORS' REPORT
As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 issued by the Company law Board in terms of Section 22(4A) of
the Companies Act,1956; and on the basis of such checks as we considered
appropriate-and according to the informations and explanations given to us,
we further report that:
1. The Company has maintained Fixed Assets Register showing full
particulars including the quantitative-and location details except Capital
work in progress during the year. A substantial portion of the Fixed Assets
have been physically verified by the management during the year and, to the
best of our knowledge and informations given to us, no serious
discrepancies have been notice on such physical verification.
2. None of the Fixed Assets have been revalued during the year.
3. The stock of finished goods,stores,spare parts have been physically
verified by the management at reasonable intervals.
4. The procedures of physical verification of stocks follows by ,the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. No material discrepancies have been noticed on physical verification of
stock as compared to book records.
6. On the basis of our examination of Stocks,we are satisfied that the
valuation of stocks is fair and proper in accordance with the normally
accepted accounting principles.
7. The Company has not taken any loan from companies, firm or other parties
listed in the register maintained under Section 301 of the Companies Act,
1956. No loans have been taken from companies under the same management as
defined under sub-section (1B) of Section 370 of the Companies Act, 1956.
8. The terms and conditions of interest-free unsecured loan / deposit
granted to a Company listed in the register maintained under Section 301 of
the Companies Act, 1956 are in our opinion, prima facie not prejudicial to
the interest of the Company. No loans have been granted to companies under
the same management's as defined under Sub-section (1B) of Section 370 of
the Companies Act,1956.
9. In respect of interest free loans,and advances in the nature of loans.
i. Employees, the repayment of principal amounts are as per stipulations
ii. To others, there are no terms stipulated for repayment of principal
10. In our opinion there are adequate internal control procedure
commensurate with the size and the nature of the business of the Company
However, It requires to be strengthened in view of expanding business of
11. The transactions of purchase of goods and materials 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 (1 of 1956) and aggregating during the year Rs.50,000/- (Rupees Fifty
Thousand Only) or more in respect of each party have been made at prices
which are reasonable having regard to prevailing market prices for such
goods, materials or services or the prices at which transactions for
similar goods or services have been made with the other parties.
12. The Company has a regular procedure for determination of unserviceable
or damaged stores, raw materials and finished goods.
13. According to the informations and explanations given to us the Company
has not accepted any deposits or advance under Section 58(A) of the
Companies Act, 1956.
14. The Company has no by-products so the question of disposal or records
of the same does not arise.
15. The Company has no internal audit system.
16. We have broadly reviewed the books of account maintained by the Company
pursuant to the Rules made by the Central Government under section 209 (1)
(d) of the Companies Act, 1956 (1 of 1956) and are of the opinion that
prima facie the prescribed accounts and records have been made and
17. According to the Books and records examined by us there were no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Excise
Duty, & Custom Duty outstanding as on 31st March 99, and for a period of
more than six months from the date they become payable except ESIC &
Provident Fund of Rs.20,082/- & Rs.51327/- respectively for a period more
than six month.
18. No personal expenses of employees and directors have been charge to
revenue account to other than those payable under contractual obligations
or in accordance with generally accepted business practice.
19. The Company is not a sick industrial company within the meaning of
Clause (0) of section 3(1) of the Sick Industrial Companies (Special
Provisions) Act, 1985.
20. The Company has reasonable system of recording receipts, issues and
consumed of material and stores, allocation of materials consumed and man-
hours utilised,on the relative jobs, commensurate with its size and nature
of its business.
21. There is a reasonable system of authorisation of proper levels,and an
adequate system of internal control commensurate with the size of the
Company and nature of its business, on issue of stores and allocations of
stores and labour to jobs.
22. In respect of Company's trading activities, we are informed that there
are no damaged stocks.
For KAMLESH.B.MEHTA & CO.
DATE : 25TH NOV,1999.