SPAN DYESTUFF INDUSTRIES LIMITED
ANNUAL REPORT 1999-2000
The Members of Span Dyestuff Industries Limited,
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
(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,
(ii)In case of Profit & Loss Account of the Loss for the period ended on
Place: AHMEDABAD For AJAY CHHAYA & CO
DATE : 30-06-2000 CHARTERED ACCOUNTANTS
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
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