JMD ALLOYS LIMITED
ANNUAL REPORT 1999-2000
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
(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:
ii. In the case of the Profit & Loss Account of the Loss for the year ended
on that date.
For SUNIL BANKA & ASSOCIATES
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
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
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
PATNA, (SUNIL AGARWAL)
THE 4 TH DAY OF SEPTEMBER, 2000 Proprietor