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Somani Cement Company Ltd.

BSE: 518071 Sector: Industrials
NSE: SOMANICEM ISIN Code: INE536F01014
BSE 05:30 | 01 Jan Somani Cement Company Ltd
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Somani Cement Company Ltd. (SOMANICEM) - Auditors Report

Company auditors report

SOMANI CEMENT COMPANY LIMITED ANNUAL REPORT 2003-2004 AUDITORS' REPORT TO THE MEMBERS OF SOMANI CEMENT COMPANY LTD. We have audited the attached Balance Street of SOMANI CEMENT COMPANY LTD. as at 31st MARCH, 2004 and the Profit & Loss Account for the year ended on that date annexed thereto and report that: 1. As required by the Manufacturing and Other Companies (Auditors' Report) Order 1988, issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in the said Order. 2. Further to our comments in the Annexure referred to in paragraph 1 above, we state that :- 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 accounts as required by law have been kept by the Company, so far as appears from our examination of the books of accounts. C. The Balance sheet and Profit & Loss Account referred to in this report are in agreement with the books of accounts. D. On the basis of the written representations received from. the Directors as on 31st March, 2004 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2004 from being appointed as a Director in terms of Clause (g) of sub section (1) of Section 274 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 said Balance sheet and Profit & Loss Account, subject to the following: No-provision has been made for penalty & interest that may be levied on the company for the delay/default in remitling money to various auditors. and read with other-notes thereon and attached thereto and accounting policies of the company, give the information required by the Companies Act, 1956 in the manner so required and give a true & fair view: i) In the case of the Balance sheet, of the state of the affairs of the company as at 31st March, 2004, and ii) In the case of the Profit & Loss Account, of the 'Loss' of the company for the year ended on that date. For Mandaowara & Associates Chartered Accountants Place : Jhabua C.H. Mandaowara Date : 25th June, 2003 Partner ANNEXURE 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. As informed to us the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification as compared with the available records. 2. None of the fixed assets have been revalued during the year. 3. As informed to us, the stocks of finished goods, stores, spare-parts and raw materials have been physically verified at reasonable intervals by the management. 4. In our opinion and as explained to us, the procedures of physical verification of stacks followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. 5. As informed to us, the discrepancies noticed on physical verification of stocks 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 earlier years. 7. The company has taken unsecured loans from companies and other parties as listed in the register maintained under Section 301 of the Companies Act, 1956. In our opinion and According to the information given to us, the rate of interest and other terms and conditions of such loans are Prima- facie, not prejudicial to the interest of the company. 8. The company has given unsecured loans to the companies and other parties as listed in the register maintained u/s 301 of the Companies Act, 1956. In our opinion and according to the information and explanations given to us, in certain cases the rate of interest and other terms and conditions of such loans are prima-fade, prejudicial to the interest of the company, since the loans have been given interest free. 9. In our opinion and as explained to us, the parties to whom the loans have been given by the company are repaying the principal amounts as stipulated and are also regular in payment , of interest, wherever such stipulations are being made. 10. In our opinion and according to the information & 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 purchases of stores, raw materials including components, plant & machineries, equipments, and other assets and also for the sale of goods. 11. In our opinion and according to the information and explanations given to us, the transactions of purchases of goods and materials and for sale of goods made in pursuance of 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 such party, have been made at prices which are reasonable having regard to the prevailing market prices for such goods or with regard to prices at which transactions for similar goods have been made with other parties. 12. As explained to us, the company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. In our opinion, adequate amounts have either been written off or adjusted in the accounts. 13. The company has accepted deposits from the public. In our opinion and according to the information and explanations given to us, it has not complied with certain provisions of Section 58-A of the Companies Act, 1956 and the rules framed there under. 14. In our opinion, reasonable records have been maintained for the sale and disposal of realisable scrap. As informed to us, the company has no by- product. 15. In our opinion and according to the information and explanations given to us, the Company has an internal audit system commensurate with the size and nature of its business. 16. We have broadly reviewed the books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1)(d) of the Companies Act, 1956 and are of the opinion that prime facie, the prescribed accounts and records have been maintained. We have not however, made a detailed examination of these records. 17. As per the information and explanations given, the company is regular in payment of provident fund dues. No deduction is made on account of Employees' State Insurance, as the company is of the opinion that the same is not applicable to it an therefore question of payment of dues in this respect in time does not arise. 18. According to the information and explanations given to us, the company did not have undisputed amounts payable in respect of wealth tax, custom duty and excise duty outstanding as at 31st March, 2004 for a period of more than six month from the date they became payable, however had Rs. 3,70,959/- in respect of income tax, Rs. 13,38,222/- in respect of Income- Tax Deducted at source, and Rs.93,71,872/- in respect of Sales-Tax payable, outstanding as such. 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 general business practices. 20. The company is a sick industrial company within the meaning of section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985, and as informed to us, necessary reference has already been made to the Board for Industrial ant Financial Reconstruction. 21. In respect of the trading activities of the company, according to the information and explanations given to us, the quantity o damaged goods have been ascertained and properly dealt with in the books of accounts. For Mandaowara & Associates Chartered Accountant Place : Jhabua C.H. Mandaowara Date : 25th June, 2004 Partner