SARASH INDIA MINES AND MARINES LIMITED
REPORT OF THE AUDITORS TO THE MEMBERS OF
SARASH INDIA MINES AND MARINES LIMITED
We have audited the Balance Sheet of Sarash India Mines and Marines Limited
as on 31st March 1998 together with the annexed Profit and Loss Account for
the period ended on that date and report that.
1. We have obtained all the information and explanation 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 such books.
3. The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of accounts.
4. In our opinion, and to the best of our information and according to the
explanation given to us, the books of accounts read with notes thereon
given the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view
-in the case of Balance Sheet, of the state of affairs of the Company as at
31st March 1998.
- in the case of Profit and Loss Account of the profit of the company for
the period ended on that date
As required by the Manufacturing and other companies (Auditor's Report)
order 1988 and on the basis of such checking of the books and records of
the company as we considered appropriate and according to the information
and explanations given to us during the course of audit, we report that,
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The
Management has physically verified the fixed assets during the year and no
discrepancies were noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. The Stock 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, 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. The discrepancies noticed on verification between the physical stocks
and the records maintained were not material.
6. In our opinion, valuation of the above mentioned stock is fair and
proper and in accordance with the normally accepted accounting principles.
7. The company has not taken loan from companies, firms and parties listed
inn the register maintained under Section 301 of the Companies Act.
8. The company has not granted loans to companies, firms and parties listed
in the register maintained under section 301. No company is under the same
management of the company as defined under section 370 (1-B) of the
Companies Act, 1956.
9. Loans and Advances in the nature of loans have been given to the
employees of the company without interest. The recovery of principal
amount was regular.
10. In our opinion, according to the information and explanation 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 including components, Plant & Machinery, Equipment
and other amenities and for the sale of goods.
11. In our opinion and according to the information furnished to us, there
were purchase of goods and sale of goods, materials and services in
pursuance of a contract or agreement entered in the register maintained
under section 301 of the Companies Act, 1956 aggregating Rs. 50,000/- or
more in value in respect of each party have been made at a price which are
reasonable having regard to the prevailing market prices of such goods and
12. As explained to us the company has regular procedure for the
determination of unservicebable or damaged stores and raw materials. Since
the value of unserviceable or damaged stores is negligible no provision has
been made in accounts in respect of such items.
13. The company has complied with the provisions of section 58 A of the
Companies Act, 1956 and the rules made thereunder in respect of deposits
accepted by the company.
14. During the period under review the company did not have any by-product
or scrap and hence the question of maintaining records does not arise.
15. In our opinion, the company an internal audit system commensurate with
the size of the company and the nature of its business.
16. The Central Government has not prescribed the maintenance of cost
records by the company under section 209 (1) (d) of the Companies Act,
17. According to the records of the company and information and
explanations given to us, no undisputed amounts payable in respect of
Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty were
outstanding for a period of more than six months from the date they become
18. As explained to us the company has filed an application with the
Provident Fund Commissioner and has obtained clearance and has started
remitting the amount with the concerned authorities. The company has its
own scheme to reimburse medical expenses to the employees since ESI is not
applicable in its area of operation.
19. On the basis of checks out during the course of audit and according to
the explanation given to us, no personal expenses other than those payable
under contractual obligation or in accordance with generally accepted
business practices, appear to have been charged to revenue account.
20. In our opinion the company is not a Sick Industrial Company within the
meaning of Section 3 (1)(o) of the Sick Industrial Companies (Special
Provision) Act, 1985.
for MAHADEV & CO.,
Place : Chennai Mr. C. Mahadevan
Date : 29-06-1998 Partner.