SHRI BHAGAVATI BRIGHT BARS LIMITED
ANNUAL REPORT 2004-2005
The Shareholders of
SHRI BHAGAVATI BRIGHT BARS LIMITED
SHAPAR DIST.: RAJKOT.
We have audited the attached Balance Sheet of SHRI BHAGAVATI BRIGHT BARS
LTD. SHAPAR, as at 31st March, 2005 and its Profit & Loss Account for the
Period of Fifteen Month ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of materiel misstatements. An Audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes accessing the accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 issued by
the Department of Company affairs in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement an the matters
specified in paragraphs 4 end 5 of the said Order.
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
of our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion proper books for accounts as required by law have been
kept by the company as far as appears from our 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 accounts.
(d) In our opinion, the Balance Sheet and Profit & Loss Account referred to
in this report comply with the accounting standard referred to in sub-
section (3C) of Section 211 of the Companies Act, 1956, to the extent
applicable, except Accounting Standard-15 regarding provision for liability
for Leave encashment and retirement benefits.
(e) On the basis of written representation received by us from the
Directors of the Company as at 31st March, 2005 and taken on record by the
Board of Directors, we report that no Director is prima-facie disqualified
form being appointed as Director of the company under clause (g) of sub-
section (1) of section 274 of the companies Act, 1956.
f) Account read together with the notes thereon give the information
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, 2005 and.
ii) In the case of the profit and Loss Account, the Profit of the company
for the period ended on that date.
iii) In the case of Cash Flow statement of the cash flows for the period
ended on that date.
For P.T. MAKADIA & CO.
PLACE : RAJKOT
DATE : 29-08-2005
Annexure referred to in paragraph 1 of our report of even date for period
ended on 31st March, 2005.
1(a) The Company is in process to maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
1(b) The Fixed Assets were physically verified by the management at
reasonable intervals having regard to the size of the company and the
nature of its assets. No materials discrepancies were noticed on
1(c) Company has disposed off Plant and Machineries of Rs. 1.43 Cores
during the period under review and as per explanation and representation
given by the management it does not effect to going concern.
2(a) The Inventory has been physically verified by the Management regularly
during the period at reasonable intervals and in our opinion, the frequency
of verification is reasonable.
2(b) The procedure of physical verification of Inventory followed by the
Management is considered reasonable and adequate in relation to the size of
the company and the nature of its business.
2(c) The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
3(a) The Company has taken unsecured loans from companies, firms or other
parties covered in the Register maintained Under Section 301 of the
Companies Act, 1956.
3(b) The rate of interest and other terms and conditions are prima facie
not prejudicial to the interest of the Company.
3(c) Repayment of principal Amount and interest on the said loan does not
3(d) The Company has taken unsecured loans from others and no terms and
conditions specified for overdue amount and reasonable steps of recovery of
principal amount and interest.
4. In our opinion and according to the information and explanation given to
us during the course of audit there are adequate internal control
procedures commensurate with the size of the company and the nature of its
business for the purpose of Inventory and Fixed Assets and also for the
Sale of Goods under the supervision of directors and management and there
is no major weaknesses or its continuous failure.
5(a) As per explanation and information provided by the management and
examination of records by us, there were no transactions which attracts the
provisions of section 301 of the companies Act, 1956.
5(b) There is no such transactions and hence question regarding the
reasonable prices are not arise.
6. The company has accepted unsecured loans of Rs.44.78/- lacs and has not
complied with the provisions of section 58A of the Companies Act, 1956.
7. As per explanation & Information given to us the company does not have
any formal Internal Audit system but company has employed experienced staff
and follow informal Internal Audit system under the supervision, management
& control of the directors of the Company
8. The Central Govt. has not prescribed maintenance of cost records u/s.
209(1)(d) of the companies Act, 1956, in respect of products manufactured
by the company.
9(a) As per information & explanation given to us, company is regular in
depositing undisputed statutory dues applicable to the company in case of
Income tax, Sales tax, Wealth tax, Custom Duty, Excise Duty, Cess,
Provident Fund and other dues with the appropriate authorities except the
pending demand of MAT For A.Y. 1997-98 of Rs.723141/-. and provisions
relating to the Investor Education and protection Fund and Employees State
Insurance are not applicable to the company.
9(b) As per explanation and information there is no disputed amounts except
shown in note no. 16 of the report with regards to payment of dues to sales
tax, Income tax, Custom Duty, Excise Duty, Wealth Tax and Cess.
10. The accumulate losses as on 31.03.05 are not less than fifty per cent
of its net worth and the company has incurred loss in the financial Period
under audit but has incurred losses in the financial year immediately
preceding this financial period.
11. The company has defaulted in repayment of dues to bank of Baroda for
Rs.4.28 Crores. The company has approached for OTS Scheme and the approval
for the same is received on 18-03-2005 after that the company is regular to
pay the dues as per terms & conditions of the Bank. Company does not have
any debenture holders.
12. Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence no
records are maintained.
13. Company does not have any Chit Fund and hence no special statute
applicable to the Company and also Company does not have any Nidhi/Mutual
Benefit Funds/Societies and hence this clause not applicable to the
14. Company is not doing trading in shares, securities, debentures and
other investments and hence question of maintenance of records does not
15. Company has not given any guarantee for loans taken by others from
Bands or Financial Institutions and hence this clause not applicable to the
16. Company dies not have any Term Loan and hence this Clause does not
17. In our opinion and on the basis of information and explanation given to
us the company does not have used the funds raised on short Term basis for
Long-term Investment and funds raised on Long-term basis for short-terms
18. The company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained under section 301
of the Companies Act, 1956 and hence this clause not applicable to the
19. Company dies not have any debenture issue and hence question of
creation of security does not arise.
20. Company does not have any public issue and hence this clause is not
applicable to the company.
21. In our opinion and on the basis of examination of records and
explanations and information given by the directors, no fraud on or by the
company has been noticed or reported during the period under audit.
For P.T. MAKADIA & CO.
PLACE : RAJKOT
DATE : 29-08-2005