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Vipras Corporation Ltd.

BSE: 522106 Sector: Engineering
NSE: N.A. ISIN Code: N.A.
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Vipras Corporation Ltd. (VIPRASCORPN) - Auditors Report

Company auditors report

VIPRAS CORPORATION LIMITED ANNUAL REPORT 2003-2004 AUDITORS' REPORT TO THE MEMBERS OF VIPRAS CORPORATION LIMITED 1. We have audited the attached Balance Sheet of VIPRAS CORPORATION LIMITED as at 31st March, 2004 and the Profit and Loss Account for the year ended on that. date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those Standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An audit includes examining on a Test Basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides the reasonable basis for our opinion. 3. As required by The Companies (Auditor's Report) order, 2003 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 the books and records of the company as we considered appropriate and according to the information and explanations given to us during the course of the audit, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable to the Company. 4. Further to our comments in Annexure referred to in paragraph 3 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 account as required bylaw have been kept by the Company so far as appears from our examination of the books of the Company. (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 & Loss Account comply with the Accounting Standards prescribed under section 211(3)(c) of the Companies Act, 1956. (e) On the basis of the written representation received from the directors as on 31st March, 2004, and taken or record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2004 from being appointed as a directors in terms of clause (g) of sub- section(1) of section 274 of the Companies Act, 1956. (f) (i) Despite continued losses, the accounts for the year have been prepared on the assumptions of a Going concern basis in view of the ongoing efforts being made by the Company for revival. The Draft Rehabilitation Scheme, as directed by the BIFR is under finalisation.(Refer note 1 of Schedule-T). (ii) The Company has not complied with the requirements of the Listing Agreement relating to Corporate Governance. (g) Subject to the forgoing, in our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the 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 the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2004; and (ii) in the case of Profit and Loss Account of the Loss of the Company for the year ended on that date. For V.P. MEHTA & COMPANY CHARTERED ACCOUNTANTS Place: MUMBAI (VIPUL P. MEHTA) Dated: 25th August, 2004 PROPRIETOR ANNEXURE Re: VIPRAS CORPORATION LIMITED Referred to in paragraph 1 of our report of even date. (i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) As certified by the management the fixed assets have been physically verified during the year and no material discrepancies were noticed on such verification. (c) During the year the Company has not disposed off any substantial fixed assets (ii) (a) The stocks of finished goods, stores, spare parts and raw materials have been physically verified during the year by the management and the stock with third parties are subject to confirmation from parties. However, we have relied on book records. In our opinion, the frequency of verification is reasonable. The consumable stores and spares are, however, charged to production at the point of procurement. (b) Based on 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. (c) Based on the information and explanations given tons, no material discrepancies have been noticed on physical verification of stocks as compared to the took . records. (iii) (a) In our opinion, the rate of interest and other terms and conditions on which (cans have been taken from Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and from the Companies under the same management are, prima facie, prejudicial to the interest of the Company. (b) In our opinion, the rate of interest and other terms and conditions on which unsecured loans and advances have been granted by the Company to the Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and to the Companies under the same management are, prima facie, prejudicial to the interest of the Company. (c) In respect of loans and advances in the nature of loan given by the Company except in case of employees, there are no stipulations as to repayment of principal and interest in most of the cases. In case of employees, the repayment is generally regular or as per rescheduling and no interest is stipulated. (d) There is overdue amount of loans granted. (iv) 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 with regard to purchase of stores, raw materials including components, plant and machinery, equipment, other assets and for the sale of goods. (v) In our opinion and according to the information and explanations furnished to us, transactions 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 of the Companies Act 1956 and aggregating during the year to Rs.5,00,000/- or more in respect of each party, have been made at terms which are reasonable having regard to, the prevailing market prices and terms, for such goods, materials, or services, or the prices at which transactions for similar goods have been made with other parties. (vi) The Company has not accepted any deposit from the public under section 58A and Section 58AA of the Companies Act, 1956. (vii) The Internal Audit System of the Company needs to be strengthened. (viii) The maintenance of cost records has not been made as prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956. (ix) (a) The Company is yet to pay Sales tax Rs.23913367, T.D.S. Rs.563701, and Profession Tax Rs.214666 and provident fund Rs.13,496. (b) Company has received show cause notice from Excise Authorities for reversal of modvat claim for Rs.57,95,207 (Previous Year 57,27,241/-). However, Company has preferred available legal options against the same. Company is advised that no liability on this account is likely to accrue to the Company. (x) The Accumulated losses as on 31st march,2004 is Rs. 83.32 crores. The Company has incurred cash losses of Rs.9.26 crores (inclusive of Provision for interest of Rs.9.71 crores) during the financial year. (xi) Loan from financial institution and interest on loan outstanding as on 31st March, 2004 is as follows: Name of Financial Loan Interest Institution I.C.I.C.I. 3,17,70,715 14,70,57,485 I.D.B.I. 3,20,14,068 19,08,90,854 I.F.C.I. 1,53,53,462 9,51,07,504 S.I.C.O.M. 10,62,016 45,74,191 (xii) Based on our examination of the records and the information and explanations given to us,the Company has not granted any loans and advances on the basis of security by way of pledge of shares,debentures and other securities. (xiii) Clause xiii is not applicable as company is not a Chit fund company. (xiv) The Company has mentioned proper records of transactions and contracts in respect of dealing and trading in shares, securities and debenture and other investments and that timely entries have generally made therein. (xv) According to information and explanation given to us the company has not given any guarantee for loan taken by others from bank and financial institution. (xvi) According to information and explanation given to us, no term loan has been raised during the year. (xvii) Based on our examination of the Balance Sheet of the company as at 31st Mar 04. We find that the Company has 18.83 crores Long term sources of funds as on date. And 9.59 crores of long term application of funds. Company has not availed of new loan facility, short term or long term during the year. (xviii) The company has not made any preferential allotment of shares during the year. (xix) The company has not made any allotment of debentures during the year. (xx) The company has not raised any money by issue of public shares during the year. (xxi) According to information and explanation given to us, no fraud on or by the company had been noticed or reported during the year. For V.P. MEHTA & COMPANY CHARTERED ACCOUNTANTS Place: MUMBAI (VIPUL P. MEHTA) Dated: 25th August, 2004 PROPRIETOR