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Span Dyestuff Industries Ltd.

BSE: 530223 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Span Dyestuff Industries Ltd
NSE 05:30 | 01 Jan Span Dyestuff Industries Ltd

Span Dyestuff Industries Ltd. (SPANDYESTUFF) - Auditors Report

Company auditors report

SPAN DYESTUFF INDUSTRIES LIMITED ANNUAL REPORT 1999-2000 AUDITORS REPORT To, The Members of Span Dyestuff Industries Limited, AUDIT REPORT We have audited the attached Balance Sheet of SPAN DYESTUFF INDUSTRIES LIMITED, as at 31st March, 2000 and the annexed Profit & Loss Account for the period from 01.04.1999 to 31.03.2000 and report that:- 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(4-A) of the Companies Act, 1956, we enclose in the annexure & statement on the matter specified in paragraphs 4 and 5 of the said order. 2. Further to our comments in Annexure referred to in paragraph I above (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 of account as required by the law have been kept by the Company so far as appears from our verification of the books. (c In our opinion, the Balance Sheet and Revenue Account dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 in so far as they are applicable to the Company. (d) Attention is invited to: 1) Note No.12 in Scheduled 20 for non provision of Profit/Loss of Partnership Firm, amount unascertainable. (e) Subject to the forgoing, in our opinion and to the best of our information and according to the explanation given to us, the said accounts together with the accounting policies and 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 case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2000, and (ii)In case of Profit & Loss Account of the Loss for the period ended on that date. Place: AHMEDABAD For AJAY CHHAYA & CO DATE : 30-06-2000 CHARTERED ACCOUNTANTS (AJAY CHHAYA) PROPRIETOR. ANNEXURE TO THE AUDIT REPORT OF SPAN DYESTUFF INDUSTRIES LIMITED REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE 1. The fixed register showing full particulars including quantitative details and situation of fixed assets is under preparation. We are informed by the management that physical verification was carried out during the year and no material discrepancies were noticed on such verification as compared to the records maintained by the company. 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 explanation given to us, the procedure of verification of stocks followed by the management is reasonable and adequate in relation to the size of the company and nature of its business. 5. The discrepancies noticed on such verification of stock between the physical stock and book records (Excise) were not significant and the same have been properly dealt with in the books of accounts. 6. On the basis of our examination of stock records, (Excise) we are of the opinion that the valuation of stocks is fair and proper in accordance with the normally accepted accounting principle, and is on the same basis as in the preceding previous year. 7. In our opinion the rate of interest and other terms and condition on which loans have been taken from companies, firms or other parties listed in the registers maintained under section 301 of the Companies Act, 1956, are not prima facie prejudicial to the interest of the company. The company has not taken any loans from the company under the same management, as defined u/s.370(1-B) of the Companies Act, 1956. 8. The company has not given loans to companies, firms or other companies listed in the register maintained under section 301 of the Companies Act, 1956 or to the companies under the same management as defined u/s.370(1-B) of the Companies Act, 1956. 9. No specific stipulation has been fixed as regards to the repayment of principal amount of interest free loan given by the company and hence adherence to the terms of repayment do not apply to the Company. 10.In our opinion, the company is not having any formal system of internal control over purchases of stores, raw materials, plant and machinery, equipments and other assets and with regard to sale of goods. However, we are informed that Managing Director/Jt. Managing Director personally supervises such purchases and sale. 11.In our opinion and according to the information and explanations given to us, the transaction of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the registers maintained under section 301 and aggregating during the year to Rs.50,000 or more in respect of each party have been made at prices which are reasonable having regards to prevailing market prices for such goods, materials or services or the prices at which transactions for similar goods, materials or services have been made with other parties. 12.As informed to us, there were no unservicable or damaged stores, raw materials and finished goods. 13.The company has not accepted the deposits from the public. 14.In our opinion, the company requires to strengthen the internal audit system to commensurate with the size and nature of its business. 15.The Central Government has not prescribed for maintenance of cost records u/s.209(1)(d) of the Companies Act, 1956 for any of the products. 16.According to the records of the company, there was delay in depositing provident fund with the appropriate authorities. There were arrears of Rs.1,17,928/- as on 31st March, 2000 (including Administrative & other charges) in respect of such dues. As informed to us, provisions of Employees State Insurance Act; are not applicable to the company. 17.According to the information and explanation given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty were outstanding as at 31.03.2000 for a period of more than six month from the date they became payable. 18.According to the information and explanation given to us, no personal expenses of employees or directors have been charged to revenue account, other than those payable under contractual obligations or in accordance with generally accepted business practice. 19.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. 20.The Clauses not mentioned herein above are not applicable to the Company. Place : Ahmedabad For AJAY CHHAYA & CO DATE : 30-06-2000 CHARTERED ACCOUNTANTS (AJAY CHHAYA) PROPRIETOR