ALOK DEEPAK & CO. 288/7, Thaper Nagar
CHARTERED ACCOUNTANTS Meerut- 250001
phone: 5222585, 528224
Kuber Auto General Finance & Leasing Limited,
Ladies & Gentlemen,
We have audited the annexed. Balance Sheet of Kuber Auto General Finance IL
Leasing Limited as at 31st March, 1998 together with the profit and Loss
Account of the company for the year ended on that date alongwith the Notes
& schedules annexed thereto, and report that:-
(a) We have obtained all the informations and explanations which to the
best of our Knowledge and belief were necessary for the purpose of our
(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 such books;
(c) The Balance Sheet and the Profit and Loss Account dealt with in this
report are in agreement with the books of accounts:
(d) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with notes
thereon, and subject to the remarks as contained in Notes forming part of
the accounts appearing thereon, give the information as required by the
Companies Act, 1956, in the manner so required and give a true and fair
(i) In the case of the Balance sheet, of the state of company's affairs as
at 31st March,1998; and
(ii) In the case of the Profit and Loss Account, of the loss of the company
for the year ended 31st March, 1998.
(e) As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 issued by the company Law Board in terms of Section 227 (4A) of
the Companies Act, 1956 and on the basis of such checks as we consider
appropriate, and according to the informations and explanations given to us
during the course of the audit , we further state that :-
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed assets. The fixed
assets of the Company are reported to have been physically verified by the
management at reasonable Internals and no material discrepancies were
noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. The Company does not have any stock of finished goods, spare parts and
raw material. But in respect of running stock shown in the Balance Sheet,
we have been informed by the management that it has conducted physical
verification of such running stock at reasonable intervals.
4. In our opinion, the procedures of physical verification of stock
followed by the management are reasonable and adequate in relation to the
size of the Company and nature of its business.
5. As we are informed, no materials discrepancies have been noticed on
physical verification of stocks as compared to the book records:
6. In our opinion and on the basis of our examination of stock records, we
are of the opinion that the valuation of stock is fair and proper In
accordance with normally accepted accounting principles and there is no the
basis deviation in the basis of valuation.
7. As per records maintained and information given by the Company, the
Company has not taken any bank, secured or unsecured, from companies, firm
or other parties listed in the register maintained under Section 301 of the
Companies Act, 1958 and/or from the companies under the same management as
defined under sub section (1B) of Section 370 of the Companies Act, 1956.
8. As per records maintained and information given by the Company, the
company has granted loan, secured as well as unsecured, to Companies listed
In the register maintained under Section 301 and/or to the Companies under
the same management as defined under sub-Section (1B) of Section 370 of the
Companies Act, 1956 and such loans, prima-facie, are, not prejudicial to
the Interests of the Company.
9. As explained to us, in respect of loans and advances in the nature of
loans given by the Company, the repayment of the principal amounts and
interest are as per the stipulation and that the management has taken
reasonable steps for the recovery of loans and interest thereon.
10. As explained to us there is an adequate internal control procedure
commensurate with its size and nature of its business for the purchase of
stores, raw materials including component, plant & machinery, equipment and
11. The transactions of purchase of raw materials and services during the
year aggregating to Rs, 50,000/- or more with the firms, companies or other
parties In which directors are interested and are to be listed in the
register to be maintained under Section 301 of the Companies Act,1956, have
been made at prices which appears to be reasonable having regard to
prevailing market. prices for such goods, materials and services.
12. As explained to us, the Company, has a regular and adequate procedure
for the determination of unservicable or damaged stores, raw materials and
finished goods and adequate provisions have been made in the accounts for
the loss arising on the items so determined.
13. The Company is working under the guidelines for Hire Purchase & Leasing
Companies as issued by Reserve Bank of india, though the Reserve Bank of
India continues to classify it as a loan Company. As explained to us, the
Company has represented time & again for its reclassification as a Hire
Purchase & Leasing Company and has fulfilled the critaria for its
classification as Hire Purchase & Leasing Company. The registration U/S 45
1.4 of The Reserve Bank of India Act, 1934 is awaited.
14. We are informed that there is no by-product or scrap.
15. As informed to us the Company has an internal audit system commensurate
with the size and nature of its business, but, in our opinion, the extent
of checking still requires to be strengthened.
16. The Company is not required to maintain cost records under Section 209
(1)(d) of the Companies Act,1956.
17. According to the informations and explanations given to us, there was
no amounts outstanding as on 31st March 1998 in respect of undisputed
income tax, wealth tax, customs duty and excise duty which were due for
more than six months from the date they became payable.
18. As explained to us the Company is generally regular in depositing
Provident Fund and Employees's State Insurance dues with the appropriate
authority during the Year.
19. According to the informations and explanations given to us,no personal
expenses of the employees or directors have been charged to revenue account
other than those payable under contractual obligations or in accordance
with the generally accepted business practice.
20. The Company is not a sick industrial company within the meaning of
clause (O) of sub-section 3(1) of the Sick Industrial Companies (Special
Provisions) Act, 1985.
21. The Company has maintained adequate documents and records in respect of
the loans and advances disbursed on the basis of security by way of pledge
of shares, debentures or other similar securities.
22. The provisions of special statute to chit fund, nidhi or mutual fund
society are not applicable to the Company.
23. Proper records have been maintained by the Company, of the transactions
and contracts regarding Investment in shares and timely entries have been
For Alok Deepak & Co