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Montari Industries Ltd.

BSE: 500286 Sector: Agri and agri inputs
NSE: MONTARIND ISIN Code: INE407C01015
BSE 05:30 | 01 Jan Montari Industries Ltd
NSE 05:30 | 01 Jan Montari Industries Ltd

Montari Industries Ltd. (MONTARIND) - Auditors Report

Company auditors report

MONTARI INDUSTRIES LIMITED AUDITORS' REPORT To the Shareholders We have audited the attached Balance Sheet of Montari Industries Limited as at 30th September.1998 and also the annexed profit and loss account of the Company for the year ended on that date 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 appears from our examination of the books: 3. The balance sheet and profit and loss account dealt with by this report are in agreement with the books of account: 4. As required by the manufacturing and other Companies (Auditors' Report) order, 1988 issued by the Central Government in terms of Section 227 (4A) of the Companies Act,1956 and on the basis of such checks as we considered appropriate, we further report that: (i) The Company maintains records showing particulars including quantitative details and situation of the fixed assets which are being updated. The management has stated that some of the assets covering significant values have been physically verified during the year which are being reconciled with the books of account. In our opinion, the frequency of physical verification is reasonable; (ii) There has been no revaluation of fixed assets during the year; (iii) The stocks of finished goods, spare parts, raw materials and major items of stores have been physically verified during the year at reasonable intervals by the management; (iv) The procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business; (v) The discrepancies noticed on verification between physical stocks and book records were not material and the same have been properly dealt with in the books of account; (vi) In our opinion, the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year; (vii) The Company has not taken any loans secured or unsecured from Companies, firms or other parties listed in the register maintained under section 301/ bodies Corporate under the same management as defined under section 370 (1B) of the Companies Act, 1956; (viii) The Company has not granted any loans, secured or unsecured to Companies, firms or other parties listed in the register maintained under section 301/ bodies Corporate under the same management as defined under section 370 (1 B) of the Companies Act, 1956; (ix) In our opinion and according to the information and explanations given to us, the loans and advances in the nature of loans made by the Company amounting to Rs.7.81 crores are interest free and without stipulation as to repayment in addition to interest free loans to subsidiary Companies amounting to Rs. 33.36 crores as at 30th September 1998: (x) In our opinion and according to 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 stores, raw materials including components, plant and machinery, equipment and other assets and for sale of goods; (xi) In our opinion and according to the information and explanations given to us, there were no transaction for the purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements required to be entered in the register maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs.50,000 or more in respect of each party; (xii) As explained to us unserviceable or damaged stores, raw materials and finished goods are determined by the Company and adequate provision for the loss has been made in the accounts; (xiii) The Company has not accepted any deposits from the public during the year and accordingly the provisions of Section 58 A of the Companies Act,1956 and the Companies (Acceptance of Deposits) Rules,1975 are not attracted; (xiv) The Company is maintaining proper records for sale and disposal of scrap and by-product; (xv) According to the information and explanations given to us internal audit has been conducted by an outside agency and the internal audit system is commensurate with the size of the Company and nature of its business; (xvi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order by the Central Government for maintenance of cost records under section 209 (1) (d) of the Companies Act,1956 and are of the opinion the prima facie, the prescribed accounts and records have been made and maintained. However, we are not required to and have not carried out any detailed examination of such accounts and records; (xvii) According to the records of the Company Provident Fund and Employees State Insurance dues have generally been regularly deposited during the year with the appropriate authorities; (xviii) According to the information and explanations given to us, there were no material undisputed amounts payable in respect of Income tax, Wealth tax, Sales tax, Customs duty and Excise duty which were due for more than six months on the last day of the financial year; (xix) On the basis of the examination of the books of account carried-out by us in accordance with generally accepted auditing practices and according to the information and explanations given to us, no personal expenses of employees or directors have been charged to the Profit and Loss Account other than those payable under contractual obligations or in accordance with generally accepted business practice; (xx) The Company is a sick industrial company within the meaning of section 3(1) (o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and reference has been made to the Board for Industrial and Financial Reconstruction under section 15 of the Act; (xxi) In respect of trading activities, we are informed that there are no damaged goods included in the stocks and accordingly no provision is required; 5. In our opinion and to the best of our information and according to the explanations given to us, the accounts read together with the significant accounting policies and notes and subject to note 20 regarding non provision of interest/discounting charges amounting to Rs.1834.81 lacs, upto 30th September. 1998 (Rs. 1761.71 lacs upto 30th September,1997) in Schedule 19 and consequent thereto the loss for the year is lower by Rs. 73.10 lacs comply with the accounting standards referred to in sub-section (3c) of section 211 of the Companies Act, 1956 and give the information required by the Act, in the manner so required and give a true and fair view (a) in the case of the balance sheet of the state of affairs of the Company as at 30th September, 1998; and (b) in the case of profit and loss account, of the loss for the year ended on that date. for Walker, Chandiok & Co., Chartered Accountants New Delhi Vinod Chandiok 4.03.1999 Partner