PERSIAN CARPET & TEXTILES LTD.
ANNUAL REPORT 1999-2000
The Members of
Persian Carpet & Textiles Ltd.
We have audited the attached Balance Sheet of Persian Carpet & Textiles
Ltd., as at 31st March, 2000 and also the attached Profit and Loss Account
of the company for the year ended on that date and report that
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 enclose in Annexure 1, a statement on the
matters specified in paragraphs 4 & 5 of the said order.
2) Subject to and in terms of our comments in the Annexure referred to in
paragraph 1 above, we further report that:
a) 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.
b) In our opinion, Proper books of accounts as required by Law have been
kept by the Company except stock record so far as appears from the
examination of such books.
c) The Balance Sheet and Profit and Loss Account referred to in this Report
are in agreement with the books of account
d) In our opinion, the profit & loss Account and Balance Sheet by and large
comply with the Accounting Standards referred to in Sub-Section (3C) of
e) In our opinion, and to the best of our information and according to
explanations given to us, the said statements of account, subject to notes
no. B-3 of Schedule 17 regarding non provisioning of penal interest on
Secured Loans, Note no. B-4 regarding non-confirmation of Balances and B-5
regarding non-provisioning of Doubtful Loans and Advances of RS.18.63 Lacs,
Note no. B-7 regarding non provisioning of interest payable to Syndicate
Bank of RS.70,00,000/-(Rs. Seventy Lacs only) App. As against the Bank
claims of RS. 1,58,00,000 (Rupees One Crore Fifty Eight Lacs only) and
other notes to accounts appearing in schedule 17 and their effect on Profit
& Loss Account And Balance-Sheet of the company, give the information
required by the Companies Act,1956 in the manner so required and give a
true and fair view :-
I) In so far as it relates to the Balance Sheet, of the state of affairs of
the Company on 31st March, 2000 and,
II) In so far as it relates to profit & Loss Account, of the Loss of the
Company, for the Year ended on that date.
For DEEPAK KUMAR & ASSOCIATES,
Date : 21.08.2000
Persian Carpet & Textiles Ltd.
Referred to in Paragraph 1 of our report of even date.
1. The company has maintained records showing full particulars including
quantitative details and situation of its fixed assets except that these
are not in proper format. Most of the Fixed Assets have been physically
verified by the management during the Year and it is explained that no
major discrepancies were noticed on such verification.
2. None of the fixed assets has been revalued during the year.
3. The stocks of finished goods, major items of stores, spare parts and
raw materials lying at its location have been physically verified by the
management at reasonable intervals.
4. The procedures followed by the management for physical verification of
stocks are reasonable and adequate in relation to the size of the company
and the nature of its business. In the case of materials lying with third
parties, certificates confirming stocks at the year end have been received
in respect of a major portion of stocks.
5. The discrepancies noticed on physical verification of stocks as compared
to the book record were not material and have been properly dealt with in
the books of account.
6. 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 previous year.
7. The company has not taken loans from companies, firms or other parties
listed in the register maintained under section 301 of the companies Act,
1956, where the terms and conditions were primafacie prejudicial to the
interest of the company.
8. The company has not granted any loans to companies, firms or other
parties listed in the register maintained under section 301 of the
companies Act,1956, where the terms and conditions were primafacie
prejudicial to the interest of the company.
9. The parties to whom loans or advances in the nature of loans have been
given by the company are repaying the principal amounts, as stipulated and
are also regular in the payment of interest where applicable.
10. In our opinion and according to the information and explanation given
to us, there are adequate internal control procedure commensurate with the
size of the company and nature of its business with regard to purchase of
stores, raw material including components, plant and machinery, equipment
and other assets and with regard to the sale of goods.
11. In our opinion and according to the information & explanation given to
us, the transactions of purchase of goods and materials and sale of goods,
materials and services made in pursuance of contracts or arrangements
falling under section 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
price which are reasonable having regard to the facts and circumstances of
12. As explained to us, the company has a regular procedure for the
determination of unserviceable or damaged stores, raw-materials and
finished goods and in our opinion adequate amounts have been written off
from such stocks in the accounts.
13. In our opinion and according to the information and explanation given
to us the company has not accepted any deposit from the public to which the
provision of section 58 A of the Companies Act, 1956, an : the rules made
thereunder would apply.
14. The company's operations do not generate scrap and by-products.
15. In our opinion, during the current year, the Company had an adequate
internal audit system commensurate with the size, volume and nature of its
16. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956, in respect of the company's products.
17. The Company has not deducted Provident Fund and Employees State
Insurance during the year.
18. According to the information and explanations given to us, there are no
un-disputed amounts payable in respect of income-tax, Wealth tax, sales
tax, custom duty and excise duty as at 31st March, 2000 which are
outstanding for a period of more than six months from the date they became
19. According to the information and explanation given to us, personal
expenses have not been charged to the revenue account other than those
payable under contractual obligations or in accordance with generally
accepted business practice.
20. The company is a sick industrial company within the meaning of clause
(o) of subsection (1) of section 3 of the Sick industrial Companies
(Special Provisions) Act,1985. The company has already filed it's
references with Board of Industrial & Financial Reconstruction (BIFR) In
this regard on 4.5.1999 and matter is pending before BIFR for declaration
of company as sick.
For DEEPAK KUMAR & ASSOCIATES,
Place:Amritsar (DEEPAK KUIVIAR)
Date : 21.08.,2000 PROP.