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Usha Iron & Ferro Metals Corporation Ltd.

BSE: 513464 Sector: Metals & Mining
NSE: N.A. ISIN Code: N.A.
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Usha Iron & Ferro Metals Corporation Ltd. (USHAIRONFER) - Auditors Report

Company auditors report

ANNUAL REPORT 1998-99 USHA IRON AND FERRO METALS CORPORATION LIMITED AUDITORS' REPORT The Members of Usha Iron And Ferro Metal Corporation Limited We have audited the attache Balance Sheet of Usha Iron and Ferro Metals Corporation Limited as at 30th June, 1999 and also the Profit and Loss Account for the year ended on that date annexed thereto in which the accounts of branches are incorporated, 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 of books and records of the company as were considered appropriate and the information and explanations given to us during the course of audit. We enclose in the annexure, a statement on the matters specified in the paragraphs 4 & 5 of the said order. 2. Further to our comments referred to in paragraph 1 above. (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 account as required by law have been kept by the company so far as appears from our examination of such books, and proper returns adequate for the purpose of the audit, have been received from the branches not visited by us. (c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account. (d) In our opinion the Balance Sheet and Profit and Loss account complies with the mandatory Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956. (e) In our opinion and to the best of our information and according to explanations given to us, the said accounts, read together with notes 'Schedule O' notes on accounts, 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 Balance Sheet of the state of affairs of the company as at 30th June, 1999 and (ii) In the case of Profit and Loss Account of the Profit for the year ended on that date. For and on behalf of BANSAL & CO. Chartered Accountants Place: New Delhi V.K. GUPTA Date : 27th July, 1999 Partner ANNEXURE TO THE AUDITOR'S REPORT 1. The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. Physical verification of fixed assets was carried out by the management during the year and having regard to the size of the company and nature of the assets, no material discrepancy between the book records and the physical verification have been noticed. 2. None of the fixed assets have been revalued during the year. 3. As explained to us, the stock of stores, spare parts, raw materials and finished goods except lying with third party have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the company and the nature of the business. 4. In our opinion and according to the information and explanations given to us the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. 5. As explained to us there were no material discrepancies noticed on physical verification of stocks of raw materials, stores and spares and finished goods having regard to the size of the operations of the company and the same have been properly dealt with in the books of account. 6. The valuation of stocks of finished goods, stores and spare parts and raw materials is fair and proper and in accordance with normally accepted accounting principles and is on the same basis as in the previous year. 7. The company has not taken any loans, secured or unsecured, from companies/firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, and/or from Companies under the same management as defined under section 370 (1 B) of the Companies Act, 1956. 8. The company has not granted any loans, secured or unsecured, to companies/firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and/or to the companies under the same management as defined under section 370 (1B) of the Companies Act, 1956. 9. There are no loans or advances in the nature of loans given by the company other than interest free advances Rs. 6039/- given to the employees of the company who are repaying the principal amounts as stipulated. 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 stores, raw materials including components, plant and machinery, equipments and other assets and for the sale of goods. 11. The transactions of the purchase/and sale of goods, materials and services 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 party have been made at prices which, in our opinion, are reasonable, having regard to prevailing market prices for such goods, materials or services or prices at which transactions for similar goods or services have been made with other parties. 12. According to the information and explanations given to us, the company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. 13. The company has not accepted any deposit from the public during the year and the provisions of section 58A of the Companies Act, 1956 are not applicable. 14. In our opinion the company has maintained reasonable records for the sale and disposal of realisable scrap. The company has no by-product. 15. In our opinion the company has an adequate internal audit system commensurate with the size and nature of its business. 16. Maintenance of cost records have not been prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956. 17. The company has been regular in depositing Provident Fund and Employees State Insurance dues with the appropriate authorities during the year. 18. There was no undisputed amount in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty outstanding as at the end of the financial year for a period of more than six months from the date they became payable. 19. According to the information and explanations given to us, we have not come across any personal expenses which have been charged to Profit and Loss Account other than those payable under contractual obligations or in accordance with prevailing business practice. 20. The Company is not a sick industrial company within the meaning of clause (O) of subsection (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. 21. In respect of the company's service activity, in our view, considering its nature the system of allocation of the materials and man hours consumed on the job is reasonable. The system of recording of receipts, issues and consumption of materials and allocation thereof is reasonable. In our opinion, the system of authorisation at proper levels is reasonable and the system is adequate for internal control in respect of such service activity commensurate with the size of the company and nature of its business. 22. In respect of trading activities, we are informed that the company does not have damaged goods at the end of the year. Therefore, no provision for any loss is required to be made in the accounts. For and on behalf of BANSAL & CO. Chartered Accountants Place: New Delhi V.K. GUPTA Date : 27th July, 1999 Partner