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DHARENDR AGRO FOOD INDUSTRIES LIMITED
ANNUAL REPORT 2002-2003
AUDITORS' REPORT
TO
THE MEMBERS OF
DHARENDR AGRO FOOD INDUSTRIES LIMITED
WE HAVE AUDITED THE ATTACHED BALANCE SHEET OF M/S. DHARENDR AGRO FOOD
INDUSTRIES LIMITED, AS AT 31ST MARCH, 2003 AND ALSO THE BALANCE SHEET AND
PROFIT AND LOSS ACCOUNT OF THE COMPANY FOR THE YEAR ENDED ON THAT DATE
ANNEXED THERETO AND THE CASH FLOW STATEMENT FOR THE YEAR ENDED ON THAT
DATE. THESE FINANCIAL STATEMENT ARE THE RESPONSIBILITY OF THE MANAGEMENT
OF THE COMPANY OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE
FINANCIAL STATEMENT BASED ON OUR AUDIT:
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standard required that we plan and
perform the audit to obtain reasonable about whether the financial
statement are free of material misstatement. An audit includes clause
examining on a test basis, evidence supports the account and disclosures in
the financial statements. An audit also including assessing the accounting
principles used and significant estimates estimates made by management, as
well evaluating the overall presentation of the statements. We believe
that our audit provides a reasonable basis of our opinion.
We report that:
1. As required by the Manufacturing and other Companies (Auditors Report)
Order, 2000, issued by the Company Law Board in terms of sub-section 227
(4A) of the Companies Act, 1956, we give in the Annexure a statement on the
matter specified in paragraphs 4 and 5 of the said order. In our opinion
proper books of Accounts as required by law have been kept by the Company
so far as appears from our examination of the basis.
2. Further to our commensurate in the Annexure referred to in paragraph 1
above, we 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 proper books of accounts as required by law have been kept by
the company so far as appears from our examination of the books of accounts
for the purpose of our audit except for matters referred in above
paragraphs and Notes of the Accounts.
(C) The Balance Sheet referred to in this report is in agreement with the
Books of Accounts.
(D) In our opinion the Balance sheet and Profit & Loss Account comply with
the accounting standard referred to in sub-section (3C) of section 311 of
the companies Act, 1956, to the extent applicable, except note No. 2 of
Schedule - 22 relating to retirement benefits (Accounting standard - 15)
and note No. 3 relating to Accounting for Taxes (Accounting Standards-22).
the said Balance Sheet and Profit & Loss Account are in agreement with the
Books of Accounts.
(E) On the basis of our review of the confirmation received from the
companies in which the Directors of the Company are Director of the
information and explanations given to us, all the directors of the Company
is prime facie as at 31st March 2003 disqualified from being appointed as a
Director as per terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
(F) In our opinion and to the best of our information and according to the
explanation give to us, and subject to our observation stated above the
said Balance sheet and Profit & Loss Account read together with notes there
on give the information required by the Companies Act, 1956 is the manner
so required and give a true and fair view.
1. Note. 2 of schedule-22 relating to retirement benefit which are
accounted for on payment basis, the event of non-compliance in value terms
is not ascertainable.
2. Note No. 3 relating to non-provision of deferred Tax Asset the
Accounting Standard-22, the amount is not ascertainable:
The said accounts read together with notes on accounts, give the
information required by the Companies act, 1956 in the manner so required
and the Balance sheet given true and fair view of the state of company
Affairs as at 31st March 2003, the Profit & Loss Account gives a true and
fair view of the loss for the year ended on that date and cash flow
statement true and fair view of the cash flow of the Company on that date.
For BHARAT PARIKH & ASSOCIATES
Chartered Accountants
(Bharat Parikh)
Partner
Place : Vadodara
Date : 01/09/2003
ANNEXURE TO AUDITORS' REPORT
As required by the Manufacturing and other companies (Auditors Report)
order, 1988 and on the basis of such checks we considered appropriate we
further report that:
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed Assets. The fixed
assets have been physically verified by the management. In our opinion the
frequency of verification is reasonable. No material discrepancies have
been noticed verification.
2. None of the fixed assets have been revalued during the year.
3. The stock and finished goods, stores, spares parts and raw materials
have been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
4. In our opinion, the procedure of physical verification of stocks
followed by the management are reasonable and adequate relation to the size
of the company and the nature of its business.
5. The discrepancies noticed on physical verification of stocks as
compared to books were not material and the same have been properly dealt
with in books of accounts.
6. In our opinion, the valuation of stocks is fair and proper in accordance
with the normally accepted accounting principles and is on the basis as in
the preceding year.
7. The company has not taken any Loan Secured or Unsecured from Companies,
firms or other parties listed in the register maintained under section 301
and / or from the Companies under the same management as defined under
Section 370 (1B) of the Companies Act, 1956.
9. In respect of Loans and Advances in the nature of Loans given by the
company parties have repaid the principal amount as stipulated and also
have been regular in payment of the interest where applicable.
10. In our opinion and according to the information and explanation 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, Plants 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 price paid for purchase of goods and materials & sales of goods
materials and services, made in purchase of contacts or arrangements
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 are reasonable having regard to the prevailing market prices as
transaction for similar goods or services have been made with other
parties.
12. As explained to us, the company has regular procedure for the
determination of unserviceable or damaged stores, Raw materials and
Finished Goods Adequate provision has been made in the accounts for the
loss arising on the items so determined.
13. The Company does not any deposits, to which the provision of section
28A of the companies Act, 1956 and the rules framed there under are
applicable.
14. In out Opinion, reasonable records have been maintained by the company
for the sale and disposal of scrap. the company has no by-products.
15. 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 and other assets.
16. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(D) of the companies act,
1956 in respect of the company products to which the said rules are made
applicable and are of the opinion that prima facie the prescribed records
have been made and maintained. we have however, not made a detailed
examination of the said records with a view to determine whether they are
accurate or complete.
17. According to the records of the Company Employees state Insurance dues
have been regularly deposited during the year with the appropriate
authorities. And the company has compelled with the formalities under the
Provident Fund Act.
18. According to the information and explanation given to us and the
records examined by us no personal expenses have been charged to revenue
account, other that those payable under contractual obligation or in
accordance with generally accepted business practice.
19. According to the records of the Company, there were no undisputed
amounts payable in respect of Income-Tax, Wealth Tax, Sales Tax, customs
duty and Excise Duty outstanding as at 31st March 2003 for a period of more
that Six Months from the date they become payable.
20. In out opinion the company is not a Sick Industrial company within the
meaning of cause (O) of sub-section 3 of the Sick Industrial companies
(Special Provision) Act, 1985.
21. In respect of Trading activities according to information and
explanation given to us there were no damaged goods of significant value.
For BHARAT PARIKH & ASSOCIATES
Chartered Accountants
(Bharat Parikh)
Partner
Place : Vadodara
Date : 01/09/2003
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