ANNUAL REPORT 1998-99
AROCHEM SILVASSA LIMITED
AUDITORS REPORT TO THE MEMBERS OF AROCHEM SlLVASSA LIMITED
We have audited the attached Balance Sheet of M/s. Arochem Silvassa Limited
as at 31st March, 1999 and also the Profit and Loss Account the company for
the year ended as on that date annexed hereto and report that.
As required by the manufacturing and Other Companies (Auditor's Report)
Order, 1988 issued by the Company Law Board, in terms of section 227 (4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said Order.
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 the audit.
b) In our opinion, proper books of account as required by law, have been
kept by the Company as far as appears from our examination of books of the
c) In our opinion, the Balance Sheet and Profit & Loss Account dealt with
by this report are in compliance with the accounting standards referred to
in Section 211 (3C) of the Companies Act, 1956 and are in agreement with
the books of account.
d) The Balance Sheet and profit and Loss Account dealt with by this report
are in agreement with the books of account.
In our opinion and according to the explanations given to us, the said
accounts give a true and fair view subject to Note No. 13 (a in schedule 19
for Non Provision of Doubtful Debts amounting to Rs.86,16,228/-,
consequently the loss for the year has been understated to that extent, and
other notes thereon give the information as required by the Companies Act,
a) In the case of Balance Sheet of the state of affairs of the Company as
at 31st March, 1999, and
b) In the case of the Profit and Loss Account, of the Loss for the year
ended as on that date.
As per our report of even date
For Gupta Saharia & Co
Date : 30-07-99.
ANNEXURE TO AUDITOR'S REPORT
Referred to in paragraph 1 of our report of even date of the Accounts for
the year ended 31st March 1999.
1. The Company has maintained proper records show full particulars, includ-
ing quantitative details and situation of fixed assets. The fixed assets
have been physically verified by the management at reasonable intervals
during the period and no material discrepancies have been noticed on such
2. None of the Fixed Assets have been revalued during the year.
3. The stock of finished goods, raw materials and packing material and
except stock in transit and stock Iying with third parties have been
physically verified by the management at reasonable intervals.
4. In our opinion 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. The discrepancies noticed on such verification between the physical
stocks and the books and 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 preceding year.
7. The Company has taken unsecured loans from parties listed in the re
ister maintained U/S 301 of the companies Act, 1956, where the rat of
interest and other terms and conditions are in our opinion, prima facie not
prejudicial to the interest of the Company.
8. The Company has not ranted loan to companies listed in the register
under section 301 of the Compaies Act, 1956 during the year and the Company
under the same manaement as defined under sub-section (1B) of section 370
of the Companies Act 1956.
9. In respect of loans and advances in the nature of loans given to company
where stipulation have been made, the parties are generally repaying the
principal amounts as stipulated or as rescheduled and for also been regular
in the payment of interest where applicable.
10. In our opinion and according to information and explanations given to
the Company is having adequate internal of control procedure commensurate
with the size of the Company and nature of its business purchases of
stores, raw materials, including components, plant and machinery, equipment
and other assets and for the sale of goods.
11. In our opinion and according to the information and explanations given
to us, the transactions of purchase and sale of goods, material of ser-
vices, made in pursuance of contracts or arrangements entered in register
maintained U/s 301 of the Companies Act, 1956 and aggregating during the
year to Rs. 50000/- or more in respect of each party, have been made at
prices which are reasonable having regard to prevailing market prices for
such goods, materials or services.
12. Unserviceable or damaged goods, raw materials and finished goods, are
determined and provision for loss if any have been made in the accounts.
13. The Company has not accepted Deposits from the Public within the
meaning of Section 58 A of the Companies Act, 1956.
14. In our opinion reasonable record have been maintained by the Company
for realisable by-products and scraps.
15. The company has an adequate internal audit system commensurate with the
size and nature of its business.
16. The Central government has not prescribed the maintenance of cost
records U/S 209 (1) (d) of the Companies Act, 1956.
17. We are informed that the company is not covered under the SIC Act and
has been regular in depositing the Provident fund.
18. According to the information and explanations given to us, there were
no undisputed amounts payable in respect of Sales Tax, Customs Duty and
Excise Duty which have remained outstanding as at 31st March, 1999 for a
period of more than six months from the date they became payable, except
for Income Tax of Rs. 1,04,798/-.
19. During the course of our examination of books of accounts carried out
in accordance with the generally accepted auditing practices, we have not
come across any personal expenses of Directors and employees which have
been charged to Profit & Loss Account.
20. The Company is not a Sick Industrial Unit within the meaning of Clause
(0) of Sub-Section (I) Section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
For Gupta Saharia & Co.
Place: Mumbai (PAWAN GUPTA)
Date: 30-07-99 Partner