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Gujarat Cypromet Ltd.

BSE: 530467 Sector: Metals & Mining
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Gujarat Cypromet Ltd. (GUJCYPROM) - Auditors Report

Company auditors report

GUJARAT CYPROMET LIMITED ANNUAL REPORT 2002-2003 AUDITORS' REPORT TO, The Members of, GUJARAT CYPROMET LIMITED. We have audited the attached Balance Sheet of M/S GUJARAT CYPROMET LIMITED AS AT 31ST MARCH 2003, AND also the annexed profit & loss Account of the Company for the 9 months ended 31st March 2003. These financial statements are the responsibility of Company's management. Our responsibility is to express an opinion on these financial statements used or our Audit. We conducted our audit in accordance with a editing standards generally accepted in India. Those Standards require than 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 statement. An Audit also includes assessing the accounting principles used and significant estimates mode by management, as well as evaluating the overall financial Statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and other Companies (Auditor's report) Order, 1988,, issued by the central government in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in Para 4 and 5 of the said order to the extent applicable and based on such checks is are considered appropriate. Further to our comments in the Annexure erred to above: 1. We have obtained all the information and explanations, which to the best of our knowledge are belief were necessary for the purpose of Audit. 2. In our opinion, proper books of accounts as required by this have been kept by the company so Far as appears from our examination of the books. 3. The Balance Sheet and Profit & loss account dealt with by this Report are in Agreement with the books of accounts. 4. In our opinion Balance Sheet and profit & loss Account comply with the Accounting Standards referred in sub-section (3C) of section 211 of the companies Act, 1956 to extent applicable. On the basis of written representation received from the Directors other than three nominee Directors (Nominee of IDBI, GIIC and GSFC) and taken on records by the Board of Directors, we report that none of the Directors from whom representations have been received, is disqualified as on 31st March, 2003 from being appointed as a director in terms of clause (a) of sub-section (1) of section 274 of the Companies Act, 1956. 6) (i) As stated In note 14 of Schedule 14, we have relied upon management certificate/ representation In respect of type & quantum and valuation of inventories of work-in progress as at 31/03/2003. (ii) As stated in note-12 of schedule - 14, the balances of debtors, creditors, deposits, And loans and advances as weft as certain transactions are subject to confirmation and have been accepted by us as certified & recorded in tire books of accounts of the company. (iii) Provisions for doubtful debts of Rs. 348/- lakhs, has been made in accounts. Subject to above, in our opinion and to the best of our information and according to the explanations given to us, the accounts read wit notes 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 of the company as at 31st march, 2003. And (ii) In the case of Profit & loss Account, of the loss for the year ended at 31st March 2003. For, Naimish K Shah & Co. Chartered Accountant. (N.K.SHAH) Proprietor Date : 1st May 2004 Place : Ahmedabad. ANNEXURE TO THE AUDIT REPORT AS REQUIRED BY THE MANUFACTURING AND OTHER COMPANIES (AUDITOR' REPORT) ORDER 1988. 1. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. The management during the year has physically verified the fixed assets of the company and no material discrepancies were noticed on verification. 2. None of the Fixed Assets have bean revalued during the year. 3. The stocks of finished goods, stores, spare parts and raw materials have boon physically verified by the management during the year at reasonable intervals. The stock of trading goods have not been physically verified. 4. In our opinion and according to the informations and explanations given to us, the procedures of physical verification of the stocks followed by the management are reasonable and adequate in relation to the size of the company and nature of its business. 5. Discrepancies noticed on physical verification of stocks as compared to books records were not material and the same have been properly dealt with in the books of accounts. 6. On the basis of our examination of stock records, in our opinion, the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles and is on the some basis as in the preceding year. 7. The company has not taken any loan from companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956, As per the informations and explanations given to us, there is no company under the some management as defined under section 370(1-B) of the Companies Act, 1956. 8. As per the information and explanation given to us the company has not granted any loan, secured or unsecured to the Companies under the same management as defined under sub section 370 of the Companies Act, 1956. 9. In respect of loans and advances given, including to the employees, principal and interest installments ore being recovered as stipulated. 10. 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 for the purchase Plant and machineries, equipments and other assets and for the sale of goods. 11. As per the information and explanations given to us, the company has not entered in ho transaction in pursuance of contracts or arrangements made under section 301 of the Companies Act, 1956. 12. As explained to us, there were no unserviceable damaged raw materials, stores and finished goods. 13. As explained to us, the company has not accepted any deposits from the public as we are explained that the deposits raised are in pursuance of stipulation of financial institution by way of promoters' contribution, which does not fall under the purview of section 58A of the Companies Act, 1956. 14. The Company has maintained reasonable records for the sale and disposal of scrap. The Company has no By-Products. 15. The Company does not have any formal internal Audit System. 16. As per the information and explanation given to us the Company is not required to maintain the Cost records in the manner and as proscribed by the Central Government under section 209(1) (d) of the Companies Act, 1956. 17. Provident Fund dues have not been deposited with the appropriate authorities during the year and arrears as on 31/03/2003, were Rs. 3.68 lakhs. Provisions of Employees state insurance are not applicable to the Company. 18. According to the Information and explanations given to us, there were no undisputed amounts payable in respect of Income-Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty as at March 31, 2003 were outstanding for a Period of more than six months from the date they became payable except for Income tax including tax deducted at source of Rs. 25.74 lakhs. 19. The Company is a sick industrial Company within the meaning of clause (o) of sub section (1) of the Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and registration has been obtained by the company with the Board for Industrial and Financial Reconstruction (BIFR), New Delhi. For Naimish K. Shah & Co. Chartered Accountants N. K. Shah Proprietor Place : Ahmedabad Date : 1st May, 2004