JEM INDUSTRIES LIMITED
ANNUAL REPORT 2004-2005
JEM INDUSTRIES LIMITED.
REPORT ON THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH, 2005 IN COMPLIANCE
WITH SECTION 227(2) OF THE COMPANIES ACT, 1956:
We have examined the attached Balance sheet and Profit & Loss Account
annexed thereto which are in agreement with Company's books of account.
1. We carried out audit in accordance with Auditing Standard generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements.
2. As required by the Companies (Auditors Report) Order 2003 issued by the
Central Government of India in terms of Provisions of section 227(4A) of
the Companies Act, 1956, in our opinion, and on the basis of such checks of
the books and records as we considered appropriate, and according to the
information and explanations given to us during the normal course of the
audit, which were necessary to the best of our knowledge and belief, we
1. FIXED ASSETS:
a) The Company has maintained proper records to show full particulars,
including quantitative details and situation of Fixed Assets on the basis
of available information.
b) As explained to us, the fixed assets have been physically verified by
the management during the year in a periodical manner, which in our opinion
is reasonable having regard to the size of company and nature of its
c) No material discrepancies were noticed on such physical verification.
d) In our opinion, the company has not disposed off substantial part of
Fixed assets during the year & the going concern status of the company is
a) As explained to us, Inventory have been physically verified by the
management at regular intervals during the year.
b) In our opinion & according to the information & explanation given to us,
the procedures of physical verification of inventories followed by
management are reasonable & adequate in relation to the size of the company
& nature of its business.
c) The company has maintained proper records of Inventory. As explained to
us, there were no material discrepancies noticed on physical verification
of inventories as compared to the book record.
3. In respect of Loans, secured or unsecured, granted or taken by the
company to/from Companies firms or other parties covered in register
maintained pursuant to section 301 of the Companies Act, 1956.
a) The company has taken loan from Shri Rahul N. Amin aggregating to
b) In our opinion & according to information & explanation given to us, the
rate of interest and other terms & conditions are not prima facie
prejudicial to the interest of the company.
c) In our opinion, payment of principal amount & interest are regular.
d) There is no overdue amount in respect of loan taken by the company.
4. In our opinion & according to information & explanation given to us,
there are adequate internal control procedures commensurate with the size
of the company and nature of its business for purchase of inventory, fixed
assets and with regard to sale of goods. During the course of audit, we
have not observed any major weaknesses in internal control.
5. a) In our opinion & according to information & explanation given to us,
the transactions that needed to be entered in to the register maintained
under section 301 have been so entered.
b) In our opinion & according to information & explanation given to us,
there were no such transactions exceeding Rs. 5 lakhs each which are not
6. The Company has not accepted any Deposits from the public.
7. In our opinion, the company has an Internal audit system commensurate
with the size of the company and nature of its business.
8. The Central Government has prescribed maintenance of cost records under
Section 209(1)(d) of the Companies Act, 1956.
9. a) According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues including
Provident fund, E.S.I. Income tax, Sales tax, Wealth tax, Custom duty
Excise duty, Cess and other statutory dues applicable to it.
b) As at 31-3-2005, according to the records of the company, following are
the particulars of Disputed Dues.
No. Name of the Statute Amount (Rs.) Forum where dispute is pending
1. Income Tax 129965/- Appellate Tribunal
10. The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the immediately
preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to the financial institution, banks or
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The Company has not a Chit Fund or a Nidhi/Mutual Benefit
14. The Company is not a dealer or trader in securities.
15. The Company has not given any guarantee for loans taken by others from
Bank or financial Institution.
16. The Term loans obtained by the company have been applied for the
purpose for which they were raised.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the company, we report that no
funds raised on short term basis have been used for long term investment by
18. The Company has not made any preferential allotment of shares to the
parties and companies covered in the register maintained under section 301
of the Companies Act, 1956 during the year.
19. The Company has not issued any Debentures.
20. The Company has not raised any money by Public Issue during the year.
21. In our opinion and according to the information and explanation given
to us, no fraud on or by the Company has been noticed or reported during
Further to the above:
a) We have obtained all the information and explanations which to the best
of our knowledge and belief of were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those books;
c) In our opinion, the Balance Sheet and the Profit & Loss Account comply
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956.
d) On the basis of written representations received from the directors of
the company as at 31st March, 2005 and taken on record by the Board of
Director of the company, we report that none of the Director is
disqualified as at 31st March, 2005 from being appointed as a director in
terms of clause (g) of sub section 274 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 with the notes thereon
give the information required by the Companies Act,1956 in the manner so
required and give a true and fair view:
1. in the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2005 and
2. in the case of the Profit & Loss Account, of the profit of the Company
for the year ended on that date.
For AMIN PARIKH & COMPANY
Vadodara. (SAMIR R. PARIKH)
Date: 29 June, 2005 Partner