CHAKAN VEGOILS LIMITED
ANNUAL REPORT 1999-2000
Report to the Members of CHAKAN VEGOILS LIMITED.
I have audited the attached Balance Sheet of CHAKAN VEGOILS LIMITED as at
30th Sept. 2000 and the Profit and Loss Account of the Company for the
period ended on that date annexed thereto, 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(4A) of
Companies Act, 1956, I enclose in the Annexure a Statement on the matters
specified in paragraph 4 and 5 of the said Order.
2. Further to my comments in the annexure referred to in paragraph 1
(a) I have obtained all the information and explanation which to the best
of my knowledge and belief were necessary for the purpose of my audit.
(b) In my opinion, proper books of account as required by law have been
kept by the Company so far as it appears from my examination of such books.
(c) The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account.
(d) In my opinion the Profit & Loss account and the said Balance Sheet
comply with the Accounting Standard as referred to in Sub Section (3C) of
Section 211 of the Companies Act, 1956.
(e) In my opinion, and to the best of my information and according to the
explanation given to me, the said Balance Sheet & the Profit & Loss Account
are subject to (1) note No. 6 of Notes to Accounts regarding non provision
of retirement benefits, the effect of which on loss for the year, reserves
and assets as on 30.09.2000, cannot be quantified, (2) Note 4 of Notes to
Accounts regarding receivable from Nav Maharashtra Chakan Oil Mill
Ahmednagar, (3) Note 3 of Notes to Accounts regarding Loan from Sicom
Limited, and read together with other notes thereto 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 30th Sept., 2000 and
ii) in case of the Profit and Loss Account, of the Loss for the period
ended on that date.
Place: Pune R.C.DOSHI
Date : 01/03/2001 Chartered Accountant
ANNEXURE TO THE AUDITOR'S REPORT
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, I further report that:
(1) The Company has maintained records showing full particulars including
quantitative details and situation of Fixed Assets. The Company's programs
of physical verification of its fixed assets is, in my opinion reasonable
having regard to the size of the Company and the nature of its assets. As
explained to me, no material discrepancies have been noticed on such
(2) None of the fixed assets of the Company have been revalued during the
(3) The stock of finished goods and raw materials have been physically
verified at reasonable intervals during the year by the agreement.
(4) In my opinion and according to the information and explanation given to
me, the procedures of physical verification of stock 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 physical verification of the stock as
compared to book records were not material and have been properly dealt
with in the books of account.
(6) In my opinion the valuation of stock, is fair and proper in accordance
with the normally accepted accounting principles and is on the same basis
as in the previous year.
(7) The terms and conditions of the loans taken from the parties listed in
the register maintained under Section 301 of the Companies Act,1956, and/or
from the Companies under the same management within the meaning of Section
370 (1 B) of the Compares Act, 1956 are not prima facie prejudicial to the
interest of the Company.
(8) According to the information arid explanation given to me, the Company
has granted loans to Companies and other parties listed in the register
maintained under Section 301 of the Companies Act, 1956, and the terms and
conditions are not prejudicial to the interest of the Company except in the
case of amounts receivable from Nav Maharashtra Chakan Oil Mills,
Ahmednagar referred to in Note 4 of notes to Accounts.
(9) The parties to whom loans or advances in the nature of loans have been
given by the Company are repaying the principal amounts as stipulated
excepting the advances made to employees who have left the Company in
respect of which as explained the Company has taken necessary steps for
(10) In my opinion and according to the information and explanation given
to me, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to purchases
of stores, raw materials including components, plant and machinery,
equipment and other assets, and with regard to sale of goods.
(11) The Company purchases as well as sells, goods and materials in normal
course of business exceeding Rs.50,000/- in value to/ from parties listed
in the register maintained under Section 301 of the Companies Act, 1956, at
the prices which as explained are reasonable as compared to the prices
prevailing at the time of transaction or with the quotations and other
relevant data furnished for these items.
(12) As explained to me, there is no unserviceable or damaged stores, raw
materials and finished goods other than those for which necessary provision
has been made in the books of accounts.
(13) In my opinion and according to the information and explanation given
to me the provisions of Section 58A of the Companies Act, 1956, and the
Companies (Acceptance of Deposits) Rules, 1975, are not applicable.
(14) In my opinion, the Company has an adequate internal audit system
commensurate with the nature of its business.
(15) The Company has maintained reasonable records for sale of realisable
by-products. We are informed that, no scrap is generated in the
manufacturing process and therefore no record in respect thereof is Kept.
As and when the miscellaneous scrap is sold the same is accounted for.
(16) As required under the rules made by the Central Government U/S
209(1)(d) of the Companies Act, Company is required to maintain records in
respect of activities of Vanaspati Unit Since however during the period
cost records are under preparation. I have not been able to review the
records maintained under the said rules.
(17) According to the information & explanation given the company is not
regular in depositing Provident Fund dues in time & the provisions of ESI
Act are not applicable to the Company.
(18) According to the information and explanation given to me, the
undisputed amounts payable in respect of Income Tax, Sales Tax, Profession
Tax were outstanding as at 30.09.2000 for a period of more than six months
from the data they became payable are :
(a) Income Tax - Rs. 2,75,361.93
(b) Sales Tax - Rs. 8,14,135.73
(c) Profession Tax Collected - Rs. 1,26,946.74
(19) According to the information and explanation given to me and on my
examination of the books of account carried out in accordance with the
generally accepted auditing practice, no personal expenses have been
charged to revenue account other than those payable under contractual
obligation or in accordance with generally accepted business practices.
(20) The Company has become a Sick Industrial Company within the meaning
Clause (O) of Sub section (1) of Section 3 of the Sick Industrial Companies
(Special Provision) Act, 1985.
(21) In relation to trading activity of the Company, damaged goods have
been determined and provision for loss wherever necessary, has been made in
Place: Pune R.C.DOSHI
Date : 01.03.2001 Chartered Accountant