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Chhabra Spinners Limited,
Annual Report 1998-99
AUDITOR'S REPORT
The Shareholders,
Chhabra Spinners Limited,
Dhamnod Dist.Dhar (M.P).
We have audited the attached Balance Sheet of CHHABRA SPINNERS LIMITED, as
at 31st March,1999 and also the Annexed Profit & Loss Account of the
Company for the year ended on that date and we report that:
A) 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 paragraph 4 and 5 of the said order
B) Further to our comments in annexure referred to in paragraph (A) above,
we also report 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 by law have been kept
by the Company so far as appears from our examination of those books.
c) The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account
D) In our opinion, the Balance Sheet and the Profit & 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 the
explanations given to us, the said accounts read with other notes thereon
given in Schedule 20, gives 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,1999. and
ii) In the case of the Profit & Loss Account, of the Profit of the Company
for the year ended on that date.
for RAJENDRA S. GOYAL & CO.
CHARTERED ACCOUNTANTS
Place: Indore
Date : 25th August, 1999 (RAJENDRA GOYAL)
Proprietor
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph (A) of the even dated Auditor's Report to the
shareholders of CHHABRA SPINNERS LIMITED on the Accounts for the year ended
on 31st March, 1999. On the basis of such checks as we considered
appropriate and in terms of information and explanations given to us, we
state that :-
1. The Company has maintained proper records showing full particulars
including quantitative details and situation, in respect of Fixed Assets.
All the assets have been physically verified by the Management at
reasonable intervals during the year. According to the information and
explanations given to us, no material discrepancies were noticed on such
physical verification as compared to the book records.
2. None of the fixed assets have been revalued during the year.
3. As explained to us, stocks of Raw materials, Finished Goods, Stores &
Spares has been physically verified during the year by the management. In
our opinion, the frequency of verification is reasonable.
4. According to the information and explanations given to us, 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 it's business.
5. As per the explanations given to us, no material discrepancies have been
noticed on verification between the physical stocks and the book records.
6 On the basis of our examination of stock records, we are of the opinion
that 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
previous year.
7 The Company has not taken any loan, secured or unsecured from companies,
firms or other parties listed in the register maintained U/S 301 of the
Companies Act,1956 and/ or to the companies under same management as
defined under Section 370(1B) of the Companies Act,1956.
8 The Company has not granted any loan, secured or unsecured to companies,
firms or other parties listed in the register maintained U/S 301 of the
Companies Act, 1956 and/ or to the companies under same management as
defined under Section 370(1B) of the Companies Act,1956.
9 The parties including employees to whom loans and advances in the nature
of loans have been given by the Company are repaying the principal amount
as stipulated and are regular in payment of interest where applicable
10 In our opinion and according to the information and explanations given
to us general/y there are adequate internal control procedure commensurate
with the size of the Company and the nature of it's business with regard to
purchase of stores, Raw Materials including components, plant & machinery,
equipments, other assets and with regard to sale of goods.
11. In our opinion and according to the information and explanations given
to us, the transactions of purchases and sale of goods and materials and
rendering services made in pursuance of contracts or agreements entered in
the register maintained under section 301 of the Companies Act,1956
aggregating during the year to Rs 50,000/ - or more in respect of each
party have been made at prices which are reasonable having regard to
prevailing market prices for such materials where such market prices are
available with the Company or the prices at which transactions for similar
goods or services have been made with other parties.
12 As explained to us, the Company has a regular procedure for the
determination of unserviceable or damaged stores and raw materials.
Adequate provision has been made in the Accounts for the Loss arising on
the items so determined.
13 According to the information and explanations give to us, the Company
has not accepted any deposit from public.
14 In our opinion, reasonable records have been maintained by the Company
for the sale of scrap
15 In our opinion, the Internal Audit system is generally adequate and
commensurate with the sire of the Company We are informed that steps are
being taken to make internal audit more effective by gearing it to the
concurrent needs and nature of the business of the Company
16 The Central Government has prescribed maintenance of cost records under
section 20911?(d) of the Companies Act,1956 for the products of the
Company. We are unable to review such records of the Company since certain
prescribed record are yet to be prepared
17. According to the records of the Company, provident fund dues, have been
regularly deposited with appropriate authorities with slight delay during
the year. The Arrears as at 31st March,1999 amounting to Rs.1,396/- in
respect of Provident Fund dues have been deposited on 18/06/1999 As per the
information and explanations given to us, Employees State Insurance Act was
not applicable to the Company during the year.
18 According to the information and explanations given to us, no undisputed
amounts payable in respect of Income Tax, Sales Tax, Customs Duty and
Excise Duty were outstanding as at 31st March, 1999, for a year of more
than six months from the date they become payable
19 According to information and explanations given to us, no personal
expenses of employees or directors have been charged to Revenue account,
other than those payable under contractual obligation or n accordance with
generally accepted business practice.
20 The Company is not a Sick Industrial Company within the meaning of
clause (0) of sub-section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
for RAJENDRA S. GOYAL & CO.
CHARTERED ACCOUNTANTS
Place: Indore (RAJENDRA GOYAL)
Date : 25th August, 1999 Proprietor
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