SAATAL KATTHA & CHEMICALS LIMITED
ANNUAL REPORT 1999-2000
AUDITORS REPORT TO THE MEMBERS
We have audited the attached Balance Sheet of SAATAL KATTHA & CHEMICALS
LIMITED, INDORE, as at 31st March, 2000 and the 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 ( Auditor's report
) Order, 1988, issued by the 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 paragraphs 4 and 5 of the said order
Further to our comments in the Annexure referred to in paragraph 1 above
(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 Account as required by law have been
kept by the company so far as appears from our examination of the book.
(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 and loss account and the balance sheet
comply with the Accounting Standards referred to in sub- section (3C) of
Section 211 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 accounts, Subject to note No. 2 (iii), no
provision for interest on Public Deposits have been made due to which
profit has been overstated by Rs. 13.02 lacs, gives 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 2000.
(ii) In the case of the Profit and Loss Account of the profit for the year
ended on that date.
FOR SODANI & COMPANY
PLACE: UJJAIN (M.D.SODANI)
DATED: 30/06/2000 PARTNER
ANNEXURE TO THE AUDITORS' REPORT
( This is the Annexure to our Report of even date)
In terms of the informations and explanations given to us and the books of
account examined by us in the normal course of Audit and to the best of our
knowledge and belief. we state as under :-
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. All the Fixed
Assets have been physically verified by the Management during the year and
no material discrepancies have been noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. The stocks of finished goods stores & spare parts and Raw Materials have
been physically verified by the Management during the year. In our
opinion, the frequency of verification is reasonable. In the case of stocks
Lying with third parties, certificates for such stocks have been obtained
from the parties.
4. The procedure for physical verification of stocks followed by the
Management are reasonable and adequate in relation to the size of the
company and the nature of its business.
5. The discrepancies noticed on verification as compared to the book
records were not material .
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 any loan, secured or unsecured, from
companies, firms or other parties listed in the register maintained under
section 301 of the Companies Act,1956. We have been informed that there are
no companies under the same Management as defined under section 370 1 B) of
the Companies Act,1956.
8. The company has not granted any loan, secured or unsecured to
companies,firms or other parties listed in the register maintained under
section 301 of the companies Act 1956. As stated above we have been
informed that there are no companies under the same management as defined
under section 370 (1 B) of the Companies Act,1956.
9. In respect of loans and advances in the nature of loans given by the
company to its employees and others, they are generally repaying the amount
10. In our opinion, and according to the information and explanation 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 purchase
of stores,Raw Materials including components, Plant machinery, equipment
and other assets and for the sale of goods.
11. In our opinion and according to the information and explanations given
to us, there are no transactions of purchase of goods, materials and sale
of goods, materials and services, aggregating during the year to
Rs.50,000/- or more in respect of each party made in pursuance of contracts
or arrangements entered in the registers maintained under section 301 of
the companies Act,1956.
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 adequate provisions has been made in the accounts.
13. The company had accepted deposits from public from the public during
the year 1996- 97. However, the directions issued by the Reserve Bank of
India and the provisions of Section 58 A of the Companies Act,1956 and the
rules framed thereunder were applicable, have not been complied with. Refer
note no. 2 (iii) of notes on accounts.
14. As explained to us,the company is maintaining reasonable records for
the sale and disposal of realisable by-products and scrap.
15. In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
16. The Company has maintained cost records as prescribed by the Central
Government under section 209 (1) (d) of the Companies Act, 1956. We have
not, however, made a detailed examination of the records to check their
17. The Company is not regular in depositing Provident Funds dues with the
18. According to the information and explanations given to us, there are no
undisputed amounts payable in respect of income tax, Wealth Tax, Customs
duty and excise duty which are outstanding as on 31st march, 2000 for a
period of more than six months from the date on which they became payable.
19. On the basis of examination of books of Account carried out by us and
in accordance with the generally accepted auditing practices and according
to the information and explanations given to us, no personal expenses of
employees or directors have been charged to the Profit & Loss Account,
other than those payable under contractual obligations or in accordance
with the generally accepted business practices.
20. The company is not a sick industrial company within the meaning of
clause (O) of sub-section I of section 3 of the sick industrial companies
(Special Provisions) Act,1985.
21. The company was engaged in trading activities during the year.
for and on behalf of
SODANI AND COMPANY
PLACE: UJJAIN M.D. SODANI
DATED: 30/06/2000 PARTNER