SHUKLA DATA TECHNICS LIMITED
We have audited the attached Balance Sheet of M/s. Shukla Data Technics
Ltd. as at 31st March, 1997 and the annexed Profit and Loss Account of the
Company for the year ended on that date, and report as under:
As required by the Manufacturing and Other Companies (Auditor's Report)
Order 1988, issued by the Central Government in terms of Section 227(4A) of
the Companies Act, 1956, we enclose in the Annexure, a Statement on the
matters to be specified in paras 4 & 5 of the said Order, to the extent
applicable, and based on such checks as are considered appropriate.
Further to our comments in the Annexure referred to above;
1. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of Audit;
2. 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 books;
3. The Balance Sheet and the Profit and Loss Account dealt with by this
report, are in agreement with the books of account;
4. In our opinion and to the best of our information and according to the
explanations given to us, the accounts, read in conjunction with other
Notes on Accounts, gives the information required by the Companies Act,
1956, in the manner so required, and give a true and fair view:
a) In the case of the Balance Sheet, of the state of affairs of the
Company, as at 31st March, 1997
b) In the case of the Profit and Loss Account of the profit for the year
ended on the date.
ANNEXURE TO THE AUDIT REPORT
(Referred to in paragraph (1) of our Report of even date)
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. The assets
have been physically verified once in the year. The frequency of
verification is reasonable. No material discrepancy has been noticed on
2. None of the fixed assets have been revalued during the year.
3. We have been informed that inventories have been physically verified by
the Management at reasonable intervals during the year.
4. The procedures of physical verification of hire purchase inventories
followed by the management are adequate in relation to the size of the
Company and the nature of its business.
5. The discrepancies noticed on verification of inventories have not been
significant as compared to the books and records and have been properly
dealt with in the books of account.
6. In our opinion, the valuation of inventories is fair and proper, in
accordance with the normally accepted accounting principles and is on the
same basis as in the preceding year.
7. The Company has not taken any secured or unsecured loans from companies,
firms or other parties as shown by the register maintained under Section
301 or from the companies under the same management, as defined under Sub-
Section (1B) of Section 370 of the Companies Act, 1956.
8. The Company has not granted unsecured loans to the companies listed in
the register maintained under Section 301 of the Companies Act, 1956. The
Company has not granted any loan, secured or unsecured, to the companies
under the same management as defined under sub-section (1-B) of Section 370
of the Companies Act, 1956.
9. In respect of loans and advances given, including to the employees,
principal instalments and interest are being recovered according to
10. 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 the nature of its business for the purchase of
components, plant and machinery, equipments, and other assets.
11. In our opinion and according to the information and explanations given
to us, the prices for purchase of goods and material and prices charged for
sale of goods and materials made in pursuance of the contracts or
arrangements entered in the Register maintained under Section 301 of the
Companies Act, 1956 and aggregating during the year to Rs. 50,000/- or more
in respect of each party, have been made at prices which are reasonable as
compared to the market prices for such goods and materials or prices for
which transactions for similar goods have been made with other parties.
12. The Company does not have stores, raw materials and finished goods.
Hence the question of determination of unserviceable and damaged goods and
the provision for the same does not arise.
13. In our opinion and according to the information and explanations given
to us, the Company has complied with the provisions of Section 58-A of the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public.
14. As the activity of the Company does not generate any by-product or
scrap, the question of maintaining records for the sale and disposal of the
same does not arise.
15. The Company has appointed an outside agency for internal audit. In our
opinion, the scope of the work is reasonable as compared to the size of the
16. The maintenance of cost records has not been prescribed under Section
209(1)(d) of the Companies Act, 1956 for the nature of business the Company
is engaged in.
17. Provided Fund and Employees State Insurance regulations are not
applicable to the Company.
18. According to the information and explanations given to us, there are no
disputed amounts payable in respect of wealth tax, sales tax, customs duty
and excise duty as at 31st March, 1997 for a period of more than six months
from the date they became payable, except income tax liability for last
19. According to the information and explanations given to us, no personal
expenses have been charged to revenue account, other than those payable
under contractual obligations or in accordance with generally accepted
20. The Company is not a sick industrial Company within the meaning of
clause (o) of Sub-section (1) of Section 3 of the Sick industrial Companies
(Special Provisions) Act, 1985.
21. We are informed that the provisions of any special statue applicable to
Chit funds, nidhi or mutual benefit society do not apply to the Company.
FOR DIPAK B. PARIKH & CO.
DIPAK B. PARIKH
Place : Mumbai
Date : 24th June, 1997.