PASHUPATI SEOHUNG LIMITED
ANNUAL REPORT 1998-99
We have audited the Balance Sheet of M/S. PASHUPATI SEOHUNG LIMITED as 31st
March, 1999 and also the attached Profit & Loss Account of the Company for
the 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 & Loss account dealt with by the report
are in agreement with the books of account;
4) In our opinion, subject to our comments in the following paragraphs,
the Balance Sheet and the Profit & Loss Account, comply with the Accounting
Standards as referred to in Sub-section (3c) of Section 211 of the
Companies Act, 1956 (as amended)
5) In our opinion to the best of our information and according to the
explanations given to us, the said Balance Sheet and Profit & Loss Account,
read together with the Schedules and Notes attached thereto, give the
information required by the Companies Act, 1956, in the manner so required
and subject particularly to notes on schedule '18' regarding (i) non-
consideration of stock of scrap out of manufacturing activity (not No,4)
(ii) accrued unprovided liability of gratuity Rs.1.11 lacs (note No,6) and
(iii) dues to SSI Unites (note No,8), 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, 1999 and
ii) in the case of Profit & Loss Account of the profit of the year ended on
6) As required by the Manufacturing and Other Companies (Auditors' Report)
Order, 1988, and on the basis of such checks, as were considered
appropriate, we state that:
a) As informed, the records showing full particulars including quantitative
details and situation fixed assets are being updated by the Company. The
fixed assets, as informed, have been physically verified by the management
at reasonable intervals during the year and no material discrepancy was
noticed on such verification.
b) None of the fixed assets has been revalued during the year.
c) The stocks stores, raw materials and finished goods have been physically
verified by the management during the year at reasonable intervals.
d) In our opinion, the procedure of physical verification of stock followed
by the management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
e) The discrepancies noticed on verification of stocks as compared to book
records were not material and the same have been property dealt with the
books of account.
f) On the basis of our examination, we are satisfied that the valuation of
stock is fair and proper in accordance with the normally accepted
accounting principles and is on the same basis as in the preceding year.
g) In our opinion, the rate of interest and other terms and conditions in
respect of unsecured loans taken from companies and other parties listed in
the register maintained U/s. 301 of the Companies Act, 1956 are, prima
facie, not prejudicial to the interest of the Company. As informed, there
is no loan from companies under the same management as defined U/s. 370
(1B) of the Companies Act, 1956.
h) The Company has not granted any loan, secured or unsecured, to the
companies, firms and other parties listed in the register maintained U/s.
301 of the Companies Act, 1956 or to the companies under the same
management as defined in section 370(1B) of the Companies Act, 1956.
i) Parties, including employees, to whom loans or advances in the nature of
loans have been given by the Company, are repaying the principal amounts as
per stipulation, wherever such stipulation exist and are also regular in
payment of interest, where applicable.
j) 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 with regard to purchase of
stores, raw materials, plant & machineries, equipments and other assets and
for the sale of goods.
k) In our opinion and according to the information and explanations given
to us, the transaction of purchase of goods and materials and sale of
goods, materials and services, wherever made in pursuance of contracts or
arrangements entered in the registers maintained U/s. 301 of the Companies
Act, 1956 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 or
services or the prices at which transactions for similar goods or services
have been made with other parties.
l) As explained to us, the Company has a regular procedure for
determination of damaged stores, raw materials, finished goods and adequate
provisions for the loss as determined has been made in the accounts.
m) As per the information made available to us, the Company has complied
with the provisions of section 58A of the Companies Act, 1956 and the rules
framed thereunder in respect of the deposits accepted from the public
except the provisions of Rules 3A and 10 of the Companies (Acceptance of
Deposits) Rules, 1975.
n) In our opinion, the Company is maintaining reasonable records for the
sale and disposal of realisable scraps. The Company has no by-product.
o) In our opinion, the Company has a formal internal audit system
commensurate with the size and nature of its business.
p) The Company has generally not been regular in depositing Provident Fund
dues with the appropriate authorities. There was arrear of Rs. 1,24,361/-
at the close of the year. As informed, the provisions of Employees State
Insurance Act is not applicable to the Company.
q) According to the information and explanation given to us, no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom
duty and Excise duty were outstanding, as at the last day of the financial
year concerned, for a period of more than six months from the date they
become payable, except tax at source Rs. 91,020/-, works contract tax
(including interest) Rs. 2,17,264/- and Sales tax Rs. 49,330/-.
r) During the course of our audit of the books of accounts carried out in
accordance with generally accepted auditing practices, we have not come
across any personal expense which has been charged to revenue account.
s) Provisions of clauses (xvi), &(xx) of paragraph 4A of the Manufacturing
and Other Companies (Auditor's Report) Order, 1988 are not applicable to
For B. Chhawchharia & Co.
75, Park Street, Chartered Accountants
Calcutta- 700 016
Dated : 7th August, 1999 Partner