KUBER FLORITECH LTD.
MANOJ GUPTA & CO. Phone:643042, 649321
Chartered Accountants 51, Bansi Pura
Manoj k. Gupta Suraj Kund Road,
The Members of
M/s Kuber Floritech Ltd.
We have audited the annexed Balance Sheet of M/s Kuber Floritech Ltd., as
at 31st March, 1998 and the Profit and Loss Account of the Company for the
year ended on that date and report that:
1. As required by the Manufacturing and Other Companies (Auditor's Report)
Order, 1988 issued by the Central Government in terms of Section 227(4A) of
the Companies Act, 1956, we give in annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph 1 above
we 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 audit.
b. The Balance Sheet and Profit & Loss Account dealt within the reports are
in agreement with the books of accounts.
c. In our opinion proper books of accounts are required by the Companies
Act, 1956 have been kept by the company so far as appears from our
examination of the books.
In our opinion and to the best of our knowledge and according to the expla
nations given to us, the said accounts read with the significant accounting
policies and other notes thereon, give the information 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 affairs of the compa
ny as at 31st March, 1998 and
(ii) In the case of the profit & loss account, of the loss for the year
ended on that day.
for MANOJ GUPTA & CO.
Place:MEERUT (M.K. GUPTA)
Date : 28.07.1998 PROPRIETOR
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph 1 of our report of even date
(i) The Company has maintained proper records showing full particulars
quantitative details and situation of fixed assets. All the assets have
been physically verified by the management during the year. We are informed
(ii) No fixed assets have been revalued during the year by the company.
(iii) The stocks of finished goods, stores, spare parts and raw-materials
of the company have been physically verified by the management during the
(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 nature of its business.
(v) No material discrepancies were noticed on physical verification of
stocks as compared to book records.
(vi) In our opinion and on the basis of the examination of Stock Records
the valuation of stocks is fair and proper accordance with the normally
accepted accounting principles and is on the same basis as in the preceding
(vii) In our opinion, the rate of interest and other terms and conditions
on which loans have been obtained from Companies listed in the register
maintained under Section 301 of the Companies Act, 1956, are not prima
facie prejudicial to the interest of the Company. We are informed that
secured loan has been taken from Kuber Auto Section 370 of the Companies
(viii) The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties 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.
(ix) Clause (ix) is not, therefore, applicable as above.
(x) In our opinion and in accordance with the informations and explanations
given to us there exists internal control procedures commensurate with the
size of the company and the nature of its business with regard to the
purchase of stores raw materials including components, plant and machinery
and other assets, and for sale of goods.
(xi) In our opinion and according to the information and explanations given
to us, the transactions for purchase of goods and materials and sale of
goods, materials and services made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 and
aggregating during the year to Rs. 50,000/- or more in respect of each
party, have been made at prices which are reasonable having regard to the
prevailing market prices for such goods, materials or services, or the
prices at which transactions for similar goods, or services have been made
with other parties,
or as available with the company.
(xii) As explained to us, the company has a regular procedure for
determination of unserviceable or damaged stores raw materials and
finished goods. Adequate provision has been made in the accounts for the
loss arising on the items so determined.
(xiii) The Company has not accepted fixed deposits from the public during
(xiv) That the company do not produce any by-products.
(xv) The company has an internal audit system commensurate with its size
and nature of its business.
(xvi) That the Central Government has not prescribed maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 as explained to
(xvii) According to the records of the company, provident fund and
employees state insurance dues have generally been regularly deposited
during the year, with the appropriate Authorities.
(xviii) As explained to us, no amount is payable on account of undisputed
Income tax, sales tax, wealth tax, custom duty, and excise duty, which were
due for more than six months from the date they become payable.
(xix) During the course of our examination of the books of account carried
out in accordance with the generally accepted auditing practices, we have
not come across any personal expenses, which have been charged to profit
and loss account.
(xx) That the company is not a Sick Industrial Company within the meaning
of Clause (c) of sub-section (1) of Section (3) of the Sick Industrial
Companies (special provisions) Act, 1985.
(xxi) In relation to the trading activity of the company, we are informed
that there were normal wastages in production as per the nature of the
business, and they are accounted for properly.
for MANOJ GUPTAS & CO.,
Place : Meerut (M.K. GUPTA)
Date : 28.07.1998 PROPRIETOR