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Intercraft Ltd.

BSE: 521072 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Intercraft Ltd
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Intercraft Ltd. (INTERCRAFT) - Auditors Report

Company auditors report

INTERCRAFT LIMITED ANNUAL REPORT 2000-2001 AUDITORS' REPORT TO THE MEMBERS, INTERCRAFT LIMITED NEW DELHI. We have audited the attached Balance Sheet of INTERCRAFT LIMITED, New Delhi as at March 31, 2001 and the Profit & Loss Account for the year ended on that date together with the notes thereon. We report that in our opinion and as per the information and explanations furnished to us and the books and records examined by us in the normal course of audit: 1. 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. 2. In our opinion, proper books of account as required by law have been kept by the Company so for as appears from our examination of those books. 3. The Balance Sheet and Profit & Loss Account dealt with by the report are in agreement with the books of account. 4. In our opinion, the Profit & Loss Account and Balance Sheet comply with the accounting standard referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956. 5. All the Directors of the Company are disqualified from being appointed as a Director in any other Company in terms of clause (g) of Sub Section(1) of Section 274 of Companies Act, 1956. 6. In our opinion and to the best of our information and according to the explanation given to us, the accounts read together with subjects to the notes no. 5, 7, 14, 15, & 16 and inadequate provision for doubtful debts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view: a) In the case of the Balance sheet of the state of affairs of the Company as at March 31, 2001 and b) In the case of the Profit & Loss Account of the loss for the year ended on that date. 7. i) The Company has not produced proper records of fixed assets to show full particulars including quantitative details and situation thereof. However as explained to us, the Management, at reasonable intervals, has physically verified the fixed assets and no material discrepancies were noticed by the management on such verification. ii) None of the fixed assets has been revalued during the year. iii) The Management at reasonable intervals in respect of finished goods, stores, and raw materials has conducted physical verification. iv) Discrepancies noticed on such verification as compared to book records, which were not material have been properly dealt with in the books of account. v) The procedures followed by the management for such physical verification are, in our opinion, reasonable and adequate in relation to the size of the company and the nature of its business. vi) On the basis of our examination, we are satisfied that the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles, and is on the same basis as followed in the previous year. vii) The Company has not taken any loans, secured or unsecured, from companies, firms of other. parties listed in the register maintained under section 301 of the Companies Act, 1956 and/or from 4 companies Act, 1956 (1 of 1956), and as such no interest is paid. However there exists a credit balance due to firms/companies under the same management, which are in the normal course of business and are not prejudicial to the interest of the Company. viii) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the registers maintained under section 301 and/or to companies under the same management as defined under sub-section (1 B) of section 370 of the Companies Act, 1956 (1 of 1956) and as such no interest is received. However there exists a debit balance due from firms/companies under the same management, which are in the normal course of business and are not prejudicial to the interest of the Company. ix) Loans and advances in the nature of loans have been given to employees and the same are repaid as per stipulations, wherever made, along with interest, where applicable. x) 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, with regard to purchase of stores, raw materials, plant and machinery, equipment and other assets and for sale of goods. xi) According to the information and explanation given to us, the transactions of purchases and sales of goods, materials and services made in pursuance of contracts of arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and aggregating during the year Rs.50,000/- or more in respect to each party, have been made at prices which, in our opinion are reasonable, having regard to prevailing market prices of such goods, materials and services or the prices at which similar transactions have been made with other parties, as the case may be. xii) As explained to us, there exists a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. The Management has certified that there are no such items requiring any provision in the account under review. xiii) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A of Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. xiv) The Company has no by-products. As explained to us, the Company does not maintain records of scrap, as the realizable value thereof in not material. xv) The Company has an adequate internal audit system, commensurate with the size and nature of its business. xvi) The Central Government has not prescribed the maintenance of cost records under Section-209(1)(d) of the Company's Act, 1956 for any of the products of the Company for the year under review. xvii) According to the records of the Company, Provident Fund, Family Pension Fund & Employees State Insurance dues, Sales Tax, TDS have not been paid with the appropriate authorities, please refer Note No. 15. xviii) We are informed by the Management that all undisputed amounts payable in respect of Income Tax, Customs Duty and Excise Duty are paid, levied on this Company. xix) Our review indicated that no personal expenses were charged to revenue account of the Company other than those payable under contractual obligations. xx) The Company is a sick industrial Company within the meaning of clause (o) of sub section-1 of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. For S.P. Marwaha & Company Chartered Accountants New Delhi (A.S. Bajaj) 25th October 2001 Partner