E-METALS INDIA LIMITED
ANNUAL REPORT 2002-2003
to the Members of
E-Metals India Limited formerly known as Daudayal Finvest Limited.
We have audited the attached Balance Sheet of E-METALS INDIA LIMITED
formerly known as DAUDAYAL FINVEST LIMITED, INDORE, as at 31st March, 2003
and also the Profit and Loss Account for the year ended on that date
annexed thereto and the Cash Flow Statement for the year ended on that
date. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statement based on our audit.
We conducted our audio in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance. about whether the financial
statements are free of material misstatement. 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, a well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
1. As required by the Manufacturing and Other Companies (Auditor's Report)
Order 1988, issued by the Central Government of India in terms sub-section
4(A) of section 227 of the Companies Act, 1954 we enclose in the Annexure -
A a statement on the matters specified in paragraph 4 and 5 of the said
order to the extent applicable to the company.
2. Further to our comments in the Annexure-A referred to above, we report
i) We have obtained all the information and explanations, which to the host
of our knowledge and belief were necessary for the purpose of our audit.
ii) 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.
iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet and Loss Account dealt with by this
report comply generally with the Accounting Standards referred to in sub-
section 211 of the Companies Act, 1956 except current investment in
unquoted shares which are stated at cost.
v) On the basis of written representations received from the directors, as
on 31st March, 2003, and take on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2003
from being appointed as the director in terms of clause (g) of sub section
(1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted
i) In the case of the Balance Sheet of the state of affairs of the Company
as at 31st March, 2003 and
ii) In the case of Profit and Loss Account of the profit for the year ended
on that date.
iii) In the case of Cash Flow Statement, of the cash flow of the company
for the year ended on that date.
For ABN & Co.
Indore (B.M. Bhandari)
Date: 12.08.2003 Partner
ANNEXURE TO AUDITOR'S REPORT
(Referred to in paragraph 1, of our report of even date on the accounts for
the year ended 31st March, 2003 of E-Metals India Limited formerly known as
Daudayal Finvest Limited)
i) The proper records showing all particulars including quantitative
details and situation of fixed assets is in under preparation. We are
informed that the most of the fixed assets were physically verified during
the year by the management and reconciliation of the same with books
records is in progress.
ii) None of the fixed assets have been revalued during the year.
iii) In our opinion, the valuation of stocks is fair and proper in
accordance with the normally accepted accounting principles except current
investment in unquoted shares which are stated at cost.
iv) The company has not taken loans, secured or unsecured from companies or
other parties listed in the registers maintained under section 301 and/or
to the companies under the same management as defined under section (1B)
of section 370 (non-operative) of the Companies Act, 1956.
v) The company has not given loans do companies, firms or other parties
listed in the register maintained under section 301 and/or to the companies
under the same management as defined under sub-section (1B) of the section
370 (non-operative) of the Companies Act, 1956. Rate of interest and other
terms and conditions of such loans are prima facie not prejudicial to the
interest of the company.
vi) Certain parties, to whom loans or advances in the nature of loans have
been given by the company, are defaulting in repayment of principal and
payment of interest. In our opinion, the process of recovery needs to be
vii) The company has not accepted deposits from public to which the.
provisions of section 58A of the Companies Act, 1956 and rules framed
there-under including directives issued by Reverse Bank of India apply.
viii) As explained to us provisions of Provident Fund Act and Employees
State Insurance Act, are not applicable.
ix) No undisputed amount payable in respect of Income Tax, Wealth Tax,
Sales Tax, Custom Duty and Excise Duty, were outstanding for a period
exceeding six months from the date they become payable as on 31st March,
x) In our opinion, the Company has an internal audit system, commensurate
with the size and nature of its business.
xi) According to the information and explanations given to us, no personal
expenses have been charged to revenue account other then those payable
under contractual obligation or in accordance with generally accepted
xii) In respect of the investments made by the Company in shares,
securities, debentures etc., proper records have been maintained.
For ABN & Co.
Indore (B.M. Bhandari)
Date: 12.08.2003 Partner