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Fortune Foods Ltd.

BSE: 519187 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE712V01018
BSE 05:30 | 01 Jan Fortune Foods Ltd
NSE 05:30 | 01 Jan Fortune Foods Ltd

Fortune Foods Ltd. (FORTUNEFOODS) - Auditors Report

Company auditors report

FORTUNE FOODS LIMITED ANNUAL REPORT 2007-2008 AUDITORS' REPORT To The members of Fortune Foods Limited 1. We have audited the attached balance sheet of Fortune Foods Limited as at March 31, 2008 and also the Profit and Loss Account for the year ended on that date annexed thereto both of which we have signed under reference to this report. These financial statements are the responsibility is to express an opinion on there financial statements based on our audit. 2. We have conducted our audit 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 the management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. 3. In our opinion and to the best of our information and according to the explanations given to us, the said accounts together with the notes thereon and attached thereto and the statement on significant accounting policies, give in the prescribed manner the information required by the companies act, 1956 of India (the 'Act') and on the profit for the year and the year end net assets to the extent indicated therein also 'give, a true and fair view in conformity with the accounting principles generally accepted in India:ln case is the Balance Sheet, of the state of affairs of the Company as at March 31, 2008; and 4. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of audit. In our opinion, proper books of account have been kept by the Company as required by law so far as appears from our examination of these books and the aforementioned Balance Sheet and Profit and Loss Accounts in agreement therewith. 5. Read with Note 12 on Schedule 21, regarding related party disclosures being identified and certified by the management, in our opinion these accounts have been prepared in compliance with the applicable accounting standards referred to in Section 211 (3C) of the Act. 6. On the basis of written representations received from the directors as on 31st March 2008, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2008 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. 7. As required by the Companies ( Auditor's Report) Order, 2003 [ as amended by Companies Auditor's Report) (Amendment) Order, 2004] and issued by the Central Government of India in terms of Section 227 (4A) of the Act and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we further report that: i. As follows: a. The Company has maintained proper records to show full particulars, including qualitative details and situation of its fixed assets. b. The fixed assets of the Company are physically verified by the management according to a phased programme designed to cover all the items over a period of three years. Pursuant to the programme, a physical verification was carried out during the year and this revealed no material discrepancies. ii. The fixed assets of the Company have not been revalued during the year. iii. The stocks of finished goods, work -in progress, stores, and spares and raw material of the Company at all its locations, have been physically verified by the management during the year. iv. 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 nature of its business, v. Consequent to the large volumes leading to the non recording of individual issues of raw materials and components, book balances are not available at factory for comparison with physical balances of these items. However, since the inventory is valued on the basis of adjusted physically verified stocks, the discrepancies have been adjusted in the accounts. vi. In our opinion, the valuation of stocks of finished goods, work -in progress, stores and spares and raw material has been fair and proper in accordance with normally accepted accounting principles in India and is on the same basis as in the preceding year. vii. The company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Act. viii. In our opinion, there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business for purchase of stores, raw material, including components, plant and machinery equipment and similar assets and for the sale of goods ix. The company has not paid deferral Sales Tax in the year 2007-08 as per Sales Tax NPV discounted payable scheme. Hence R,s. 0.23 cr. Expenses has been reversal in the Balance Sheet 2007-08 the company has to pay Rs. 2.51 Cr. And Rs. 3.24 Cr as income has been shown more as the reversal of Safes Tax Benefits in the Balance Sheet as on 31st March 2008. x. In our opinion, purchase of goods, materials and sale of goods, materials as services, made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Act and aggregating during the year to Rs. 50,000 or more in value in respect of each party have been made at prices which are reasonable having regard to prevailing market prices for such goods, materials, or services, or the prices at which transactions for similar goods or services have been made with other parties. xi. The Company has a system of determining unserviceable or damaged stores, raw materials, packing material or finished goods on the basis of technical evaluation and on such basis, in our opinion, adequate amounts have been written off from such stocks in the accounts. xii. The company has not accepted any public deposits during the year. xiii. The company has not generated any scrap having realizable value. The company does not have any by- products. xiv. Central Govt. has not prescribed maintenance of Cost Records under Section 209 (1) (D) of the Companies Act for the Company. xv. In our opinion, the Company is present internal audit system in commensurate with its size and nature of business. xvi. At the last day of the financial year there was no amount outstanding in respect of undisputed Income Tax, Wealth Tax, Sales Tax, Customs Duty and excise duty which were due for more than six months from the day become payable except tax deducted at source payable of Rs.18,78,048/-. xvii. During the course of our examination of the books of accounts carried out in accordance with the generally accepted auditing practices in India, we have not come across any personal expenses which have been charged to a Profit and Loss Account nor have we been informed for such case by the management other than those payable under contractual .obligation and I or excepted business practices. xviii. The company is not a Sick Industrial Company within the meaning of clause (o) of Section 3 (1) of the Sick Industrial Companies (Special Provision) Act, 1985 of India. for SHRIKANT L. JAJOO & CO. CHARTERED ACCOUNTANTS Place: Nashik Sd/- Date: 30.06.2008 (SHRIKANT L. JAJOO) (PROPRIETOR)