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Kolar Biotech Ltd.

BSE: 532148 Sector: IT
NSE: N.A. ISIN Code: INE365A01027
BSE 05:30 | 01 Jan Kolar Biotech Ltd
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Kolar Biotech Ltd. (KOLARBIOTECH) - Auditors Report

Company auditors report

KOLAR BIOTECH LIMITED ANNUAL REPORT 2002-2003 AUDITORS' REPORT To the Members, KOLAR BIOTECH LIMITED We have attached the audited Balance Sheet of Kolar Biotech Limited, as at 30th June, 2003 and the Profit and Loss Account, for the year ended on that date annexed thereto and the Cash Flow Statement for the period ended on that date. The financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements, based on our audit. 1. We conducted our audit, in accordance with the Auditing Standards 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. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 2. As required by the Manufacturing and other Companies (Auditors' Report) Order, 1988, issued by the Central Government of India, in terms of sub section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure hereto, a statement on the matters specified in paragraphs 4 and 5 of the said order. 3. Further to our comments in the Annexure referred to in paragraph 2 above, we report that: - a. We have obtained all the information and explanations, which, to the best of our knowledge and belief were necessary for the purposes 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. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account; d. In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report, comply with the mandatory Accounting Standards, referred to in sub section (3C) of Section 211 of the Companies Act, 1956. e. In our opinion and based on the information and explanations given to us, none of the directors are disqualified as on 30th June, 2003, from being appointed as directors, in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956. f. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements, read together with the Significant Accounting Policies and other notes thereon, give the information required by the Companies Act, 1956, in the manner so required and present a true and fair view, in conformity with the accounting principles, generally accepted in India. i) In so far as it relates to the Balance Sheet, of the state of affairs of the Company, as at 30th June, 2003; ii) In so far as it relates to the Profit and Loss Account, of the profit of the Company, for the year ended on that date; and iii) In so far as it relates to the Cash Flow Statement, of the cash flows of the company, for the year ended on that date. For V. Subramanian & Co. Chartered Accountants V. Subramanian Proprietor Place : Mumbai Dated : 10th November, 2003 Annexure to the Auditors' Report 1. 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 and no material discrepancies were noticed on such verification. 2. None of the fixed assets have been revalued during the year. 3. Physical verification of finished goods and stores have been conducted by the management at reasonable intervals during the year. In our opinion frequency of physical verification is reasonable. 4. 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. 5. No material discrepancies have been noticed on physical verification of stocks, as compared to book records. 6. In our opinion and on the basis of our examination of stocks, we are satisfied that valuation of the stocks is fair and proper in accordance with normally accepted accounting principles. The basis of valuation of stocks is same as in the previous year. 7. The Company has not taken loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and/or from the companies under same management under sub-section (1B) of section 370 of the Companies Act, 1956. 8. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register(s) maintained under section 301 and/or to the companies under same as defined under sub- section (1B) of section 370 of the Companies Act, 1956. 9. The parties to whom the interest free loans, or advances in the nature of loans, have been given by the Company are repaying the, principal amounts as stipulated. 10. In our opinion and according to the information and explanation given to us, there are adequate internal control procedures, commensurate with the size of the Company and the nature of business, for the purchase of finished goods. 11. According to the information and explanations given to us, the transaction of purchase of finished goods, stores, sale of goods and services, made in pursuance of contracts or agreements entered in the Registers maintained under section 301 and aggregating to Rs. 50,000 or more during the year, in respect of each party, have been made at prices, which are reasonable, having regard to their prevailing market prices or prices at which transactions for similar goods or services have been made with other parties, wherever made available to us. 12. Unserviceable or damaged goods have been determined and adequately dealt with in the accounts. 13. The Company has accepted deposits from the public and the directives issue by Reserve Bank of India and the provisions of section 58A of the Companies Act, 1956 and the rules framed there under, where applicable, have been complied with. 14. The Company has an internal audit system commensurate with its size and nature of business. 15. The Central Government has not prescribed the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956. 16. In our opinion, the provisions related to Provident Fund and Employees' State Insurance is not applicable to the Company. 17. No undisputed amounts payable in respect of income-tax, wealth-tax, sales tax, customs duty and excise duty were outstanding, as at 30th June, 2003, for a period of more than six months from the date they became payable. 18. No personal expenses have been charged to revenue account, other than those payable under contractual obligation or in accordance with generally accepted business practices. 19. The Company is not 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. 20. As explained to us, in respect of the trading activity of the Company, damaged goods have been determined by the Company and necessary provision has been made in the accounts for the loss arising thereon. For V. Subramanian & Co. Chartered Accountants V. Subramanian Proprietor Place : Mumbai Dated : 10th November, 2003