GREENIELD CORP LIMITED
M/s Greenfield Corp Limited
217, Civil Line,
Ladies & Gentlemen,
We have audited the annexed Balance Sheet of M/S GREENFlELD CORP LIMITED.,
MEERUT as on 31-3-98 and the Profit and Loss Account of the Company for the
year ended on that date. We have to 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 accounts as required by law have been
kept by the Company so far as appears from our examination of the books.
(c) The Balance Sheet and Profit and Loss Account dealt with in the report
are in agreement with the book of accounts.
(d) In our opinion and to the best of our information and according to the
explanations given to us, the said account read with and subject to the
notes on depreciation, inventories verification of certain transactions &
contingent liability forming part o1 the accounts appearing thereon, give
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 Balance Sheet of the state of affairs as at 31st March,
ii) in the case of Profit Loss Account of the Loss for the year ended on
31 st March, 1998.
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 and on the basis of such checks of the books and
records as we considered appropriate and according to the information and
explanations given to us during the course of the audit, we state as under:
1. The fixed assets register was not made available to us for our
verification. Management could not furnish any certificate whether the
assets of the company have been physically verified by the management
during the year at reasonable intervals.
2. None of the fixed assets of the company have been revalued during the
3. Proper physical verification in respect of finished goods, stores, and
raw materials has been conducted by the management at reasonable intervals
during the year.
4. 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.
5. All material discrepancies noticed on physical verification of stocks as
compared to book records have been properly dealt with in the Stocks
records except those mentioned in Notes on Account
6. In our opinion, the valuation of stocks have been fair and proper in
accordance with the normally accepted accounting principles and is on the
same basis as in the earlier year.
7. No loans secured or unsecured has been taken by the Company from
Companies, Firms or other parties listed in the register maintained under
section 301 of the Companies Act 1956 (1 of 1956) and/or from the Companies
under the same management as defined under Sub Section (1-B) of section
370 of the Companies Act, 1956 (1 of 1956).
8. The company has not granted any bans to Companies, Firms or other
companies listed in the register maintained under section 301 and/or to the
Companies under the same management as defined under section 370(1-B) of
the Companies Act,1956.
9. No loans or advance in the nature of loan has been given to any party by
10. In our opinion and according to the information and explanations given
to us, through there are adequate internal control procedures commnensurate
with the size of the company and the nature of its business for the
purchase of sores, raw materials, plant and machinery and other assets, and
for the sale of goods, the systems require to be strengthened.
11. There are no transaction of purchase of goods and materials and sale of
goods made in pursuance of contracts or arrangements entered in the
register(s) maintained under section 301 of the Companies Act, 1956 (1 of
1956) and aggregating during the year to Rs. 50,000/- or more in respect
of each party.
12.As explained to us, the company has a regular procedure for the
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provisions have been made in the accounts.
13. As explained to us the Company has not accepted deposits from Public
and therefore, the compliance with the provisions o section 58(A) of the
Companies Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975
does not apply.
14. The company has an internal control system commensurate with the size
and nature of its business but it needs to be further strengthened.
15. The Company is maintaining reasonable records for the sale and disposal
of realisable scrap. As informed to us, the manufacturing process of the
Company does not give rise to any By-Product.
16. The Company is not required to maintain cost accounts and records as
prescribed by the central Government under section 209(1)(d) of the
Companies Act, 1956 (1 of 1956).
17. According to the records of the Company, Provident Fund dues have
generally been regularly deposited during the year with the appropriate
authorities. As explained by the management the Company is not required to
deposit Employees' State Insurance dues as this Act is not applicable to
18. No undisputed amount payable in respect of income tax, wealth tax, sale
tax, customs duty and excise duty were outstanding as at the last day of
the financial year concerned for a period of more than six months from the
date they become payable.
19. The company is not a Sick Industrial Company within the meaning of
clause (0) of Sub-section (1) of Section 3 of the Sick(Industrial Companies
(Special Provisions) Act,1985 (2 of 1986).
20. No personal expenses have been charged to revenue account other than
expenses under service contract obligations and/or accepted business
For NEM CHAND & CO.,
DINESH CHAND JAIN