P. C. I. CHEMICALS AND PHARMACEUTICALS LIMITED
The Members of
P.C.I. Chemicals And Pharmaceuticals Ltd.
We have audited the attached Balance Sheet of P.C.I. CHEMICALS AND
PHARMACEUTICALS LIMITED, as at 31 st March, 1993 and also the Profit & Loss
Account of the Company for the year ended as on that date annexed hereto
and report that:
a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion. proper Books of Accounts as required by the law have
been kept by the Company so far as appears from our examination of such
c) The Balance Sheet and Profit & Loss Account dealt with by the report are
in agreement with the Books of Account.
d) In our opinion and to the best of our information and according to the
explanations given to us, the said balance sheet and the profit and loss
account, read together with the notes thereon,Particularly Note No.10,give
the information as required by The 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 Affairs of the Company
as at 31st March, 1998;
ii) In the case of the Profit And Loss Account, of Profit 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, we further report that:
1. The Company has maintained proper records to show full particulars
including quantitative details, situation of Fixed Assets and Depreciation
written off to date. The Fixed Assets of the company were physically
verified by the Management during the year and no discrepancies were
noticed on such verification.
2. None of the Fixed Assets have been revalued during the year.
3.The Stock of Finished goods, Raw materials and Packing materials have
been physically verified by the Management during the year. The
discrepancies noticed on such verification between the physical stocks and
the book records were not significant. In our opinion, the valuation of the
above mentioned stocks is fair and proper in accordance with the normally
accepted accounting Principles and is on the same basis as in the previous
4.The Company has not taken any loan from concerns in which Directors of
the Company are interested and are listed in the Register maintained u/s.
301 and 370(1-C) of the Companies Act, 1956.
5. The Loans and Advances In the nature of loans given by the Company
includes interest-free loans to its employees. The recovery of principal
amount is regular, except in some cases where no recovery was made during
6.In our opinion, purchases and sales of goods, materials and services made
in pursuance of contracts or arrangements entered in the Register
maintained under_ 1 1 13 14 1 ! 16. 17 Section 301 of the Companies Act, 1
956, 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
the prevailing market prices for such goods, materials and services or the
prices at which transactions for similar goods, materials or services have
been made with the other parties.
7. In our opinion and according to the information and explanations given
to us, during the course of the audit there are adequate internal control
procedures commensurate with the size of the Company and the nature of its
business for the purchase of raw materials. However the procedures need to
8. As explained to us, unserviceable or damaged raw materials are
determined by the Company and adequate provision for loss has been made in
9. In our opinion and according to information and explanations given to
us, the Company; Has complied with the provisions of Section 58A of the
Companies Act,1956 and the Companies (Acceptance of Deposits) Rules, 1975
with regard to the Deposits.
10. The Company has no by-products or scrap during the year.
11. The Company has no internal audit system commensurate with its size and
the nature of its business.
12. We are given to understand by the management that cost records
prescribed by the Central Government under section 209 (1)(d) of of the
Companies Act,1956 are not applicable to the Company. This is because, as
was explained to us,the turnover of the product namely injectables which is
covered under the said section does not exceed the limit prescribed and
that the company falls under the category of Small Scale Industrial Unit.
13. The Company is generally regular in depositing Provident Fund and
E.S.I. S dues with the appropriate authorities .
14.According to the information and explanations given to us, there v,were
no undisputed amounts payable in respect of Income Tax, Sales Tax, Customs
Duty and Excise Duty, which have remained outstanding as on 31st March,
1998 for a period of more than six months from the date they became
15. According to the information and explanations given to us, no personal
expenses of employees or Directors have been charged to revenue account
other than those payable under contractual obligations or in accordance
with generally accepted business practice.
16. The Company is not a sick industrial company within the meaning of
Clause (O) of the Sub-Section (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
17. As explained to us, there were no damaged stocks with the Company as on
31st March, 1998.
FOR BALSEKAR & DESAI
(S. D. DESAI)
DATE : 30th September,1998.