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J M D Alloys Ltd.

BSE: 531765 Sector: Metals & Mining
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan J M D Alloys Ltd
NSE 05:30 | 01 Jan J M D Alloys Ltd

J M D Alloys Ltd. (JMDALLOYS) - Auditors Report

Company auditors report

JMD ALLOYS LIMITED ANNUAL REPORT 1999-2000 AUDITORS' REPORT To The members of JMD ALLOYS LIMITED We have audited the attached Balance Sheet of JMD ALLOYS LIMITED as at 31st March, 2000 and the Profit & Loss Account for the year ended on that date annexed thereto and we report that :- 1. 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 we enclose in the annexure, a statement on that matters specified in paragraphs 4 & 5 of the said order. 2. Further to our comments in the annexure referred to in paragraph 1 above:- (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 such books; (c) The Balance Sheet and the Profit & Loss Account dealt with by this report are in agreement with the books of account: (d) In our opinion, the Balance Sheet and the Profit & Loss Account dealt with this report are in compliance with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956; (e) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes 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 the Balance Sheet of the state of affairs of the Company as at 31st March. 2000: and ii. In the case of the Profit & Loss Account of the Loss for the year ended on that date. For SUNIL BANKA & ASSOCIATES Chartered Accountants Sd/- PATNA, (SUNIL AGARWAL) THE 4TH DAY OF SEPTEMBER, 2000 Proprietor. ANNEXURE TO THE AUDITORS' REPORT ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS' REPORT OF EVEN DATE ON THE ACCOUNTS OF JMD ALLOYS LIMITED FOR THE YEAR ENDED 31 ST MARCH, 2000 i. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.The Fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification. ii. None of the Fixed assets have been re-valued during the financial year. iii. The stock of stores, spare parts and other goods have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. 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 the nature of its business. v. The discrepencies noticed on physical verification of stocks as compared to book records were not material and the same have been properly dealt with in the books of account. vi. In our opinion, valuation of stocks is fair and proper and in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year. vii. The Company has taken interest free unsecured loans from the relatives of the Director of the Company, who are parties listed in the registers maintained under section 301 of the Companies Act, 1956. No loans have been taken from the Companies under the same management within the meaning of section 370(1-B) of the Companies Act, 1956 except advances made in the normal course of business. viii. In our opinion, the terms and conditions of the loans are not prejudicial to the interests of the Company. ix. The parties to whom loans or advances in the nature of loans have been given by the Company are generally repaying the principal amounts as stipulated and are also generally regular in payment of the interest wherever applicable. x. In our opinion and according to the information & 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 of stores, raw materials including components, Plant & Machinery, equipments and other assets and for the sale of the goods. xi. In our opinion and according to the information & explanations given to us, the transactions of purchase of goods and materials and sale of goods, materials and services given in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50000/- or more 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, materials or services have been made with other parties. xii. The Company has a regular procedure for determining unserviceable or damaged stores, raw materials and finished goods and in our opinion adequate provision for the loss has been made in the accounts. xiii. In our opinion and according to the information & explanations given to us, the Company has not accepted any deposits from public within the meaning of section 58 A of the Companies Act, 1956 and Companies (Acceptance of deposits) Rules, 1975. xiv. In our opinion, reasonable records have been maintained by the company for the sale and disposal of realisable by-products and scrap. xv. In our opinion, the company's present internal audit system is commensurate with its size and nature of business. xvi. We have broadly reviewed the books of account maintained by the Company pursuant to the order of the Central Government for maintenance of Cost records under Section 209(1 )(d) of the Companies Act, 1956, in respect of certain products and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have not however, made a detailed examination of the record with a view to determine whether they are accurate and complete. xvii. According to the records of the Company, provident fund dues have been regularly deposited. The Company is regular in depositing the other statutory dues with appropriate authorities. xviii. As per information and explanations given to us, there were no undisputed amounts payable in respect of income-tax, sales tax, customs duty and excise duty out standing as at 31 st March, 2000 for a period of more than six months from the date they became payable. However, the company has not deposited advance income tax relating to the year under audit. xix. In our opinion, according to the records of the Company and the information and explanations given to us, no personal expenses have been charged to revenue account other than those payable under contractual obligation or in accordance with prevailing practices. xx. The Company is not a sick industrial company within the meaning of clause (O) of subsection (1 ) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. xxi. In respect of trading activities, the company has determined the damaged goods and the requisite provision has been made. For SUNIL BANKA & ASSOCIATES Chartered Accountants Sd/- PATNA, (SUNIL AGARWAL) THE 4 TH DAY OF SEPTEMBER, 2000 Proprietor
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