You are here » Home » Companies » Company Overview » Paintex Chemicals (Bombay) Ltd

Paintex Chemicals (Bombay) Ltd.

BSE: 524178 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Paintex Chemicals (Bombay) Ltd. (PAINTEXCHEMICAL) - Auditors Report

Company auditors report

PAINTEX CHEMICALS (BOMBAY) LIMITED ANNUAL REPORT 2003-2004 AUDITORS' REPORT TO THE SHAREHOLDERS 1) We have audited the attached Balance Sheet of PAINTEX CHEMICALS (BOMBAY) LIMITED as at 31st March 2004 and also the Profit & Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. 2) We have conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion and we report that: 3) As required by the Companies (Auditors Report) Order 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 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, on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of our audit. 4) As referred to in note no 2 of schedule `K' the Company has prepared accounts on going concern basis. However in view of the negative networth of the company and continuing losses, company's ability to continue in operations for the foreseeable future is doubtful and therefore, may be unable to realize its assets and discharge its liabilities in the normal course of business. 5) During the year the company has not provided for gratuity and leave encashment liability, as mentioned in the note no 2 of Schedule 'K' Notes to Accounts. 6) 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. 7) In our opinion, proper books of account, as required by law, have been kept by the Company so far, as appears from our examination of the books of account. 8) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account. 9) Subject to Para 4 and 5 above, in our opinion, the Profit & Loss Account and the Balance Sheet of the Company comply with the accounting standards referred to in section 211(3C) of the Companies Act, 1956. 10) On the basis of written representations received from the Directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2004 from being appointed as a director of the Company in the terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. 11) Subject to note no 4 and 5 above, and non-appointment of the Company Secretary as required a/s 383A of the Companies Act, 1956 as mentioned in note no 10 of Schedule 'K' in our opinion and to the best of our information and according to the explanations given to us the accounts read together with the notes thereon, give the information required by the Companies Act, 1956 in the manner so required give a true and fair view in conformity with the accounting principals generally accepted in India: a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2004 b) In the case of the Profit & Loss Account, of the loss for the financial year ended on that date. c) In the case of Cash Flow Statement, of he cash flows of the Company for the year ended on that date. For H.N. MOTIWALLA & CO. CHARTERED ACCOUNTANTS H.N. MOTIWALLA PARTNER PLACE : MUMBAI DATE : November 3, 2004 ANNEXURE TO THE AUDITORS REPORT* (* Referred to our Report of even date on the accounts of PAINTEX CHEMICALS (BOMBAY) LIMITED for the year ended 31st March, 2004) 1. a) The Company has not maintained proper records to show full particulars including quantitative details and situation of fixed assets; b) During the year the Company has not carried out the physical verification of fixed assets. c) During the year, the Company has not disposed off a substantial part, of the fixed assets. 2. a) The inventories have been physically verified by the Management during the year. In our opinion, the frequency of such verification is reasonable. b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. c) The Company has maintained proper records of inventories. No material discrepancies were noticed on physical verification of stocks as compared to book records. 3. a) The company has received unsecured loan from one of the company covered in the register maintained under section 301 of the Act. There has not been any transaction in respect of the said loan during the year. The year end balance of the loan received from the said company is Rs. 3,50,000. The company has not granted loan to any of the parties covered under Section 301 of the Companies Act, 1956. b) The loan received (Prom the company covered in the register maintained under Section 301 of the Companies Act, 1956 is interest free loan. In the absence of any stipulations in respect of the repayment and other terms and conditions of the said loan, we are unable to comment thereof. c) In the absence of any stipulations in respect of the repayment of the above loan, we are unable to comment upon the regularity of the repayment of the same. d) In the absence of any stipulations in respect of the repayment of the above loan, we are unable to comment upon the overdue amounts, if any, and steps taken by the company for payment of the overdue principal. 4. 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 the nature of its business, with regard to the purchase of inventory, fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls. 5. a) In our opinion and according to the information and explanations given to us, transactions that need to be entered into the register maintained in pursuance of section 301 of the Act have been so entered; b) In our opinion and according to the information and explanations given to us, there were no transactions made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and acceding aggregate the value of rupees five lakhs in respect of each party during the year. 6. The company had accepted deposits from the public, the provisions of sections 58A and 58AA of the Act and the rules framed there under, have not been complied with. However, the said deposits have been transferred to security deposits for sale of scrap, materials and assets in future to the said parties. Further, as per the certificate of a Company Secretary, produced to us, the same is not a violation of the aforesaid sections and rules framed thereunder. 7. The company does not have internal audit system during the year. 8. As informed to us, the Central Government has not prescribed the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect of the products manufactured by the company. 9. a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employee's State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty Excise Duty, cess and any other statutory dues have generally not been deposited on time during the year with the appropriate authorities. Arrears of the aforesaid dues as on the date of the Balance Sheet outstanding for a period of more than six months from the date they became payable was Rs. 10,26,468/-. b) According to the records of the Company and according to the information and explanations given to us, there were no dues of sales tax, income tax, custom tax (duty) wealth tax, excise duty, cess which have not been deposited on account of any dispute. 10. Accumulated losses of the Company at the end of the current financial year are more than fifty per cent of its net worth. The Company has incurred cash losses during the financial year covered by our Audit amounting to Rs. 45,75,159/- (Previous Year : Rs 38,86,236/-) 11. The company has defaulted in repayment of dues to a financial institution. Total amount defaulted amounted to Rs. 2,14,65,896/-. The said amount was due in installments starting form November 1998. 12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. In our opinion and according to the information and explanations given to us, the Company is not a chit fund Company or a nidhi / mutual benefit fund / society. 14. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments. 15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions. 16. According to the information and explanations given to us, during the year the Company has not received any amounts against term loans. Therefore, the question of its utilization for any specific purpose does not arise. 17. According to the information and explanations given to us and on an overall examination of the Balance Sheet and Profit and Loss Account of the company we are of the opinion that the funds raised on short term basis have not been used for long term investments and vice versa. 18. In our opinion and according to the information and explanations given to us, during the year the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956. 19. According to the information and explanations given to us the Company has no debenture outstanding as at the year end. Therefore the question of creating a security for the same does not arise. 20. The Company has not raised any money by public issues during the year covered by our report. 21. According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year.