You are here » Home » Companies » Company Overview » Eastern Mining & Allied Industries Ltd

Eastern Mining & Allied Industries Ltd.

BSE: 500127 Sector: Metals & Mining
NSE: EASTMINING ISIN Code: N.A.
BSE 05:30 | 01 Jan Eastern Mining & Allied Industries Ltd
NSE 05:30 | 01 Jan Eastern Mining & Allied Industries Ltd

Eastern Mining & Allied Industries Ltd. (EASTMINING) - Auditors Report

Company auditors report

1998 EASTERN MINING & ALLIED INDUSTRIES LIMITED STATUTORY AUDITORS' REPORT To The Members of Eastern Mining & Allied Industries Limited Nongrim Hills, Shillong (Meghalaya) Dear Sirs, We have audited the attached Balance Sheet of M/s Eastern Mining & Allied Industries Limited, Nongrim Hills, Shillong (Meghalaya) as at the 31 st day of March, 1998 and also the Profit and Loss Account for the year ended on that date as annexed thereto. We report as follows - 1. As required by the Manufacturing and Other Companies (Auditors' Report) Order, 1988 issued by the Company Law Board, in terms of section 227(4A) of the Companies Act, 1956 as specified in Para 4 & 5 of the said Order to the extent they are applicable and in terms of the records examined by us in the normal course of audit, and to the best of our knowledge and belief, we state that; i. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. As explained to us, the management has a regular program of physical verification of these assets at periodical intervals which in our opinion is reasonable having regard to the size of the Company and nature of the assets. Certain material discrepancies were noticed on verification and have been duly taken care of in accounts for the year under audit. ii. As explained to us and subject to note (i) above, none of the fixed assets have been revalued during the year under audit. iii. In accordance with the information and explanation given to Audit, and to the best of our knowledge and belief, the procedures of the physical verification of stocks of finished goods, stores etc. as carried out by the management are reasonable and adequate having regard to the size of the company and the nature of its business. iv. As examined by us during the course of Audit and in relation to the operations of the Company, the discrepancies noticed on verification between the Physical stocks and the book records were not material and the same have been properly dealt with in accounts. v. On the basis of our examination of stock records, and in accordance with the information and explanations given to us we are satisfied that such valuation of stocks is fair and proper in accordance with the normally accepted accounting principles and the basis of valuation is the same as was in the preceding year. vi. In accordance with the information and explanations given to us, and as examined by us from the records, the company has not taken any loans from Companies, Firms or other parties listed in the register maintained under Sec. 301 of the Companies Act, 1956. As has been reported to us by the management, there are no companies under the same management within the meaning of Sec. 301 (l-B) of the Companies Act, 1956. vii. In accordance with the information and explanations given to us and as examined by us from the records, the Company has not granted any loans, secured or unsecured, to Companies, Firms or other Parties listed in the register (s) maintained under the Sec. 301 of the Companies Act, 1956. As has been reported to us by the management, there are no companies under the same management within the meaning of Sec.370 (1-B) of the Companies Act, 1956. viii.In terms of the records examined by us during the course of Audit, we are of the opinion that the parties to whom the loans or advance in the nature of loans have been given by the company are repaying the principal amount as stipulated and are also regular in payment of interest if applicable. ix. As observed by us during the course of Audit and in accordance with the information and explanations given to us, we are of the opinion that there is an adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to the purchase of stores, raw materials including components, plant & machinery, equipment and other assets and with regard to the sale of goods. x. In our opinion and according to the information and explanations given to us and to, the best of our knowledge and belief, the transactions of purchase and sale of goods and materials made in the pursuance of contracts or arrangements entered in the register maintained under Sec. 301 of the Companies Act, 1956, as aggregating during the year to Rs. 50,000/- (Rupees fifty thousand) or more in respect of each party, have been made at prices which are reasonable having regard to prevailing market prices for such goods and materials or the prices at which transactions of similar goods and materials have been made with other parties or quoted by other parties. We withhold our comment in cases where comparable quotations are not available having regard to the specialised nature of materials purchased by the Company. xi. As explained to Audit and in accordance with the records examined by us, we are of the opinion that the Company has a regular programme for determination of unserviceable or damaged stock. As explained to us, unserviceable, damaged or lost stock found, if any, during the year under audit was not material and has been properly dealt with in the accounts. xii. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of Sec.58A of the Companies Act ,1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposits accepted from the public, except that a sum of Rs. 4,11,000/- (Rupees four lacs eleven thousand) only towards fixed deposits were already due for repayment during the year under audit but not repaid till 31.03 .98 . Interest on such fixed deposit appearing as interest accrued and due but not paid was to the tune of Rs.21,887/-(Rupees twenty one thousand eight hundred eighty seven) only pertaining to the period since maturity till 31.03.98. xiii. As explained to Audit by the management, the Company does have an internal audit system. However in our opinion,the scope of the audit has to be enlarged to make it commensurate with the size & nature of company's business. xiv. In accordance with the explanation given by the management, the Central Government has not prescribed maintenance of Cost Records under Sec. 209 (l)(d) of the Companies Act, 1956 for any product of the Company. xv. According to the information and the explanations given to us during the course of Audit, the Company was made subject to liability under Provident Fund Act with retrospect and it is submitted to us that liability for PF has been provided in books as ascertained by concerned authorities. However, against the liability for Provident Fund in respect of deduction from employees and employer's contribution to PF etc. a sum of Rs.3,55,358.65 was outstanding as at 31.03.98 as per Books. As reported to us, the Employee's State Insurance Act is not applicable to the Company. xvi. In accordance with the information and explanations given to us during the course of Audit and to the best of our knowledge and belief, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, and Excise Duty were outstanding in books as at the last day of the financial year concerned for a period of more than six months from the date they became payable except that a sum of Rs.9,600/- (Rupees nine thousand six hundred only) towards Income Tax Deducted by the Company at source during the year 1995-96 remained undeposited as on 31.3.98. A sum of Rs. Rs.35,522/- (Rupees thirty five thousand five hundred twenty two) only towards Assam General Sales Tax for the period ended 31.03.97 was also unpaid on 31.03.98 pending assessment. xvii. In accordance with the information and explanations given to us and on the basis of records examined by us, we are of the opinion that no personal expenses have been charged to revenue other than those payable under contractual obligations. viii. The Company is not a sick industrial company within the meaning of Clause (o) of Sub-Sec.(l) of Section 3 of the Sick Industrial Companies (Special Provisions) Act,1985. xix. According to the information and explanations given to us in respect of the trading activities of the Company, there were no material damage to goods. 2. Further to our comments in Para 1 above, we report that; a) We have obtained all the information and the 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 Accounts as required by law have been kept by Company so far as appears from our examination of these Books. c) The Balance Sheet and the Profit & Loss Account dealt with by this Report are in agreement with the Books of Accounts. d) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to and read with the Notes on Accounts as per Schedule 17 give the information as so required by the Companies Act,1956 and subject to our reliance on stock and cash as taken, valued, verified and certified by the management and also subject to our reliance on movement of stock and cash, give a true and fair view: i) In so far as they relate to the Balance Sheet of the State of Affairs of the Company as at the 31st day of March, 1998 AND ii) In so far as they relate to the Profit & Loss Account, of the Profit of the Company for the year ended 31st day of March, 1998, subject however to the under statement of profit by a sum of Rs. 48,75,677.84 charged to revenue as "Earlier Year Adjustments". FOR RATAN & ASSOCIATES Chartered Accountants Place: Shillong (RATANKUMAR AGARWALA) Date : 10.08.98 Proprietor B.Com.,FCA