SANJIVANI AGRO INDUSTRIES LIMITED
To the Members of
Sanjivani Agro Industries Limited
We have audited the attached Balance Sheet of SANJIVANI AGRO INDUSTRIES
LIMITED as at 31st March, 1999 and Profit & Loss Account of the Company for
the year ended on that date and report as under:
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, 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 the audit, we give in the
annexure a statement on the matters specified in paragraphs 4 and 5 of the
2. Further to our comments in the Annexure referred to in Paragraph 1
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 it appears from our examination of such
c) The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of accounts;
d) In our opinion the Balance Sheet and Profit and Loss Account dealt with
by this report are prepared in compliance of the applicable 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
explanation given to us, the accounts subject to Note No. 4 regarding non
creation of Lease Equalization Account in earlier years resulting into the
Loss for the year being overstated by Rs. 3603196, read with other notes
thereon give information required by the Companies Act 1956, In the manner
so required and present a true and fair view
(i) in the case of Balance Sheet of the State of affairs of the Company as
on 31 st March; 1999 and
(ii) in the case of Profit and Loss Account, of the loss for the year ended
on that date.
For SURESH C. MANIAR & CO.
Place: MUMBAI R. K. Seth
Dated: 31st May, 1999. Partner
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph I of our report of even date)
1. The Company is in process of creating the necessary records showing the
particulars including quantitative details and situation of Fixed assets.
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 during the year by the management. In our
opinion, the frequency of verification is reasonable.
4. In our opinion and according to the information and explanations given
to us, the procedures of 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. No Material discrepancies have been noticed on physical verification of
stocks as compared to the book records.
6. On the basis of our examination of stock records, we are of the opinion
that 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
7. The Company has taken interest free loans from Directors and other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 without any stipulation for repayment of the same. We
are informed that there are no Companies under the same management as
defined under Sub-section (lB) of section 370 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. We are informed that there are no Companies
under the same management as defined under Sub-section (lB) of section 370
of the Companies Act, 1956.
9. The Company has not given any loans and advances in the nature of loans.
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, equipment and other assets and with regard to the
sale of goods.
11. The Company has not made any purchases of goods and materials & sale of
goods, materials and services to the parties listed in the register
maintained under section 301 of the Companies Act, 1956 exceeding Rs.
50000/- in aggregate in respect of each party.
12. The Company has a regular procedure for the determination of
unserviceable or damaged stores, raw materials and finished goods. Adequate
provisions have been made in the accounts for the loss arising on the items
13. The Company has complied with the provisions of Section 58-A of the
Companies Act 1956 for the deposits accepted.
14. The Company has maintained reasonable records for the sale and disposal
of realisable by-product and scrap.
15. The Company has not yet introduced the internal audit system.
16. The Central Government has not prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956 for the products of
17. The Company has been regular in depositing the provident Fund dues
during the year with the appropriate Authorities. As explained to us the
provisions of Employees State Insurance Act, 1948 are not applicable to the
18. According to the informations and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Custom Duty and Excise Duty as at 31st March, 1999, were outstanding for a
period of more than six months from the date they became payable.
19. According to the information and explanations given to us, no personal
expenses have been charged to revenue account.
20. The Company is a Sick Industrial Company within the meaning of caluse
(o) of sub-Section (1) of Section 3 of the Sick Industrial Companies
(special Provisions) Act, 1985 and a reference has not yet been made to the
Board for Industrial and Financial Reconstruction under Section 15 of that
21. In respect of the trading activities of the Company, the damaged goods
have been determined and necessary provisions for loss has been made in the
For SURESH C. MANIAR & CO.
Place: MUMBAI R. K. Seth
Dated: 31st MAY, 1999 Partner