INDO-FRENCH BIO-TECH ENTERPRISES LIMITED
ANNUAL REPORT 2000-2001
We have audited the attached Balance Sheet as on and Profit & Loss Account
for the period ended on 31st March, 2001 of Indo French Bio-tech
Enterprises Limited and report that:-
1. We have obtained all the information and explanations which to the best
of our knowledge and belief, are necessary for the purpose of our audit.
2. In our opinion, proper books of accounts, as required by law have
been kept by the Company so far it appears from our examination of such
3. Subject to Note No. 1 A of schedule 16 annexed to the financial
accounts regarding "Going concern Principle" as required by Accounting
standards 1, we are of the opinion that the company, in view of its
negative net worth, outside liabilities and its recurring losses and the
fact that its application under SICA as a BIFR company was not accepted,
may not be able to carry on its activities, and Notes No. 1B (5) regarding
non provision of gratuity and leave encashment as per Account standard 15 "
Accounting of Retirement Benefit" the Balance Sheet and Profit and Loss
Account are prepared as per the accounting statements referred to in
section 211 (3C) of the companies Act, 1956 to the extent applicable.
4. On the basis of the written representation received from the Directors
and taken on record by the Board of Directors, we report that none of the
said Directors are disqualified as on 31st March, 2001 from being appointed
as Directors in terms of clause (g) of subsection (1) of section 274 of the
Companies Act, 1956.
5. The Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
6. The Cash Flow Statement forming part of Annual Report has been prepared
in accordance with the requirements of clause 32 of the listing agreement
of the Bombay Stock Exchange.
7. In the opinion and to the best of our information and according to the
explanations given to us, the said accounts subject to.
(A) Our Remarks in para 3 above.
(B) Note 2(b) of Schedule 16 regarding Non Provision of Interest on Inter
Corporate Deposits and Project Grape Investors, Note 12 of Schedule 16
regarding non provision for Bad and Doubtful Debts and other notes there
on. And read together with other notes thereon give the information
required by the Act in the manner so required & present a true & fair view.
(i) In case of the Balance Sheet, of the state of affairs of the Company as
on 31st March, 2001 and
(ii) In the case of the Profit & Loss Account, of the loss for the year
ended on that date.
8. As required by the Manufacturing and Other Companies (Auditors' Report)
Order 1988, issued by the Central Government and on the basis of such
checks as we considered appropriate, we further state that:-
i) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets. As
explained to us, all the assets have been physically verified by the
management at reasonable intervals and no material discrepancies between
book records and physical inventory were noticed. In our opinion the
frequency of verification is reasonable having regards to the size of the
Company and the nature of its assets.
ii) None of the fixed assets have been revalued during the year.
iii) The stock of finished goods, stores and spare and raw materials have
been physically verified by the management at reasonable intervals during
iv) The procedures of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
v) The discrepancies noticed on physical verification of stock as compared
to Books of Accounts were not material and have been properly dealt with in
the books of accounts.
vi) In our opinion the valuation of stocks is fair and proper and in
accordance with normally accepted accounting principles and the basis of
valuation of stocks is same as in the previous year.
vii) The company has not taken any loans from companies, firms or to the
parties listed in the register maintained under section 301 of the
Companies Act, 1956 or from Companies under the same management as defined
under section 370 (1B) of the Companies Act, 1956.
viii) Except for advances in the course of regular trade, the Company has
not granted any loans to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956 or from
Companies under the same management within the meaning of Section 370 (1B)
of the Companies Act, 1956.
ix) The Company has adequate internal control procedures commensurate with
the size of the Company and the nature of its business for purchase of
stores, raw material, plant and machinery, equipment and other assets and
for sale of products.
x) As explained to us, the Company has a regular procedure for the
determination of unserviceable or damaged stores and raw materials and
finished products. Adequate provision has been made in the accounts for the
loss arising on the items so determined.
xi) The Company has not accepted any deposit from the public within the
meaning of section 58-A Company's Act 1956 and the Companies (Acceptance of
Deposits) rule 1975.
xii) The Company is maintaining reasonable records for the sale and
disposal of realisable by product.
xiii) The Company does not have an internal audit system commensurate with
the size and nature of its business.
xiv) According to the records of the company, PF dues have been paid
regularly during the year with the appropriate Authorities.
xv) There are no undisputed amounts payable in respect of income tax,
wealth tax, sales tax, customs duty and excise duty as at 31st March, 2001
which were outstanding for a period more than 6 months from the date they
xvi) According to the information and explanation given to us no personal
expense have been charged to the revenue account other than those payable
under contractual obligations or in accordance with generally accepted
xvii) The damaged goods arising out of trading activities has been
determined and adequate provision has been made for the loss arising
xviii) Clause ix, xi, xvi, and xx of para 4(A) of the said order are not
applicable to the Company.
For RAO SRINIVASAN & ASSOCIATES
PLACE: MUMBAI Ramesh Iyer
DATED: 30.30.2001 (Partner)