ANNUAL REPORT 1999-2000
PROGRESSIVE STEELS (INDIA) LIMITED
To the members of Progressive Steels (India) Ltd.
We have audited the attached Balance Sheet of Progressive Steels (India)
Ltd. as a 31st March, 2000 and also Profit & Loss Account for the year
ended on that date and we report that
1. As required by Manufacturing and other Companies (Auditors' Report)
order 1988 issued by Company Law Board in terms of section 227(4A) of the
Companies Act,1956, we enclose in the annexure a statement on the matters
specified in paragraph 4 and 5 of the said order to the extent applicable.
2. Further to our comments in the annexure referred to in paragraph 1
(a) We have obtained all the information and explanation which to the best
our knowledge and belief were necessary for the purpose of our audit
(b) 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 such books
(c) The Balance Sheet and Profit and Loss account dealt with by this report
are in agreement with the books of account
(d) In our opinion, the Balance Sheet and Profit Loss Account complies
with the requirements of the mandatory accounting standards referred to in
section 211 (3C) of the Companies Act, 1956.
(e) In our opinion and to the best of our information and according to the
explanations given to us the said accounts subject to notes no.1 (h)-
relating to non provision of Gratuity, note no 2- relating to investment in
S.B.I Bonds, note no.3- relating to sales of traded goods note no.7-
relating to inter divisional sales/purchases, note no.11- relating to sale
of Raw Materials and note no 15 relating to old Sundry Debtors of Note on
Accounts forming part of schedule `21' and other notes appearing thereat
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 Balance Sheet of the State of affairs of the company as
at 31st March, 2000
ii. in the case of Profit & Loss Account of the loss of the company for the
year ended on that date
For R. Sinha & Associates.
Place : Patna
Date : 28th day of August 2000 Rajesh Sinha
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS' REPORT ON THE ACCOUNTS
OF PROGRESSIVE STEELS (INDIA) LTD FOR THE YEAR ENDED 31st MARCH, 2000
i) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management at reasonable
intervals., No material discrepancies have been noticed on such
ii) The fixed assets have not been revalued during the financial year.
iii) The stock of finished goods, spare parts and raw materials have been
physically verified b the management during the year. In our opinion, the
frequency of verification is reasonable.
iv) In our opinion, the procedure of physical verification of stocks
followed by the management are reasonable and adequate in relation to the
size of the company and nature of its business
v) The discrepancies noticed on physical verification of stocks as compared
to book record were not material and the same have been properly dealt with
in the books oi account.
vi) In our opinion, the valuation of stock is fair and proper and 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 from Companies, firms or other
parties listed in the register maintained under section 31 of the
Companies Act, 1956 and / or from companies under the same management as
defined under section 370 (1B) of 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 of the Companies Act,1956 and/or to Companies under the same
management as defined under section 370(1B) of the companies Act, 1956
except interest free advances. The terms and conditions of such advances
are not prima facie, prejudicial to the interest of the company.
ix) In respect ot loan and advances in the nature of loan given by the
company, the parties have repaid the principal amounts as stipulated and
also been regular in payment of interest.
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 explanation given
to us, transaction of purchase of goods and materials and sale of goods,
made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of companies Act, 1956 and aggregating during
the financial year to Rs.50,000/- or more in respect of each party have
been made at prices which, in our opinion, are reasonable having regard to
prevailing market price for such goods, materials or services as the prices
on which similar transactions have been made with other parties.
xii) According to information and explanation given to us, the company has
determined 88.250 MT of M.S. Ingot (finished goods) as being of sub-
standard quality as detailed in Para 12 of Schedule '21' forming part of
the Notes on Accounts.
xiii) The company has not accepted any deposits from the public within the
meaning of section 58 A of the Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules,1975.
xiv) In our opinion the company is maintaining reasonable records for sale
and disposal of realisable scrap. As explained to us, the company's
operations do not generate any realisable by products.
xv) In our opinion, the company doesn't have an internal audit system
commensurate with the size and nature of its business.
xvi) The company is maintaining cost records as prescribed by Central
Government under section 209(1)(d) of the Companies Act,1956 and we are of
opinion that prima facie, the prescribed records have been made and
maintained. However, we have not made a detailed examination of said
xvii) According to records of the company, Provident Fund and Employees
State Insurance dues have been regularly deposited during the financial
year with the appropriate authorities but for E.S.I. amounting to Rs.
3,916.45 and P.F. amounting to Rs. 15,445.00 pertaining to the month of
October 1999 which have not been deposited.
xviii) According to records of the company and the information and
explanations given to us, there are no undisputed amounts payable in
respect Sales tax amounting to Rs. 91585/- and Excise duty amounting to Rs.
565631/- outstanding as at 31st March, 2000 for a period of more than six
months from date they become payable.
xix) In our opinion, according to records of the company and the
information and explanations given to us, no personal expenses have been
charged to revenue account.
xx) The Company has become a Sick industrial company within the meaning of
clause (O) of sub section (1) of section 3 of Sick Industrial Companies
(Special Provisions) Act, 1985 but no reference has been made by the
company to the Board for Industrial and Financial Reconstruction under
section 15 of the Act till date
xxi) As informed to us, there were no damaged goods during the year, in the
case goods traded by the company.
For R. Sinha & Associates.
Place : Patna
Date : 8th day of August 2000 Rajesh Sinha