KUNAL OVERSEAS LIMITED
We have audited the attached Balance Sheet of M/S KUNAL OVERSEAS LIMITED,
Mumbai, as at 31st March 97 and also the Profit & Loss Account annexed
thereto or the year ended on that date. We report as follows:
1. As required by the Manufacturing and other Companies (Auditor's report)
Order 1988 issued by the Company Law Board in Terms of Sec 227(4A) of
Companies Act, 1956. We enclose in the annexure a statement on the matters
specified in Paragraph 4 & 5 of the said order
2. Further to our comments as referred to above, we hereby state:
A. We have obtained all the information and explanation 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 the books of
C. The Balance Sheet and Profit & Loss referred to in this report are in
agreement with the books of account.
D. In our opinion & to the best of our information and according to
explanation given to us the said Balance Sheet and Profit & Loss Account
read together with NOTES appearing thereon give the information required by
the Companies Act,1956 in the manner so required and present a true & fair
i. In the case of Balance Sheet of the State of Affairs of the Company as
at 31st March 1997.
ii. In case of Profit & Loss Account of the Company for the year ended on
ANNEXURE TO AUDIT REPORT
(Referred to in Paragraph (1) of our Report of even date to the member of
Kunal Overseas Ltd as at & for the year ended 31st March, 1997)
i. The Company has maintained proper records of Fixed Assets showing full
particulars including quantitative details and Locations thereof. We are
informed by the management that Fixed Assets have been physically verified
during the year and discrepancies so far noticed between the books, records
and the physically inventory, which was not material having regards to the
size of company and the nature of its business been duly adjusted in the
ii. None of the Fixed Assets of the Company has been revalued during the
iii. The stock of finished goods & raw materials have been physically
verified by the management at reasonable intervals during the year. There
is no stock of stores, spares and tools.
iv. In our opinion & according to information given to us the procedure
followed by the management for physical verification of stock is reasonable
and adequate in relation to the size of the Company and nature of its
v. No material discrepancies were noticed on such physical verification of
stock as compared to books of account.
vi. In our opinion, the basis of valuation stock is fair and proper in
accordance with the normally accepted accounting principles.
vii. The Company has not obtained any loans from the companies, firm or
other parties listed in the register maintained u/s 301 and 370 (1 -B) of
the Companies Act, 1956.
viii. The Company has not granted any loans to Companies, firms or other
parties mentioned u/s 301 of the Companies Act,1956. As informed to us
there is no Company under the same management within the meaning of Sec.370
(1-B) of the Companies Act,1956.
ix. In respect of loans & advances in the nature of loan given to other
parties and to employees the same are interest free, however the parties
are regular in repaying principal amount as stipulated.
x. As per the information & explanation given to us there is adequate
internal control procedure commensurate with the size of the company and
nature of its business for the purchase,e of raw material, plant &
machinery, equipment and other assets and for the sale of goods.
xi. In our opinion and according to information & explanation given to us
the transaction of purchase of goods & material & services made in
pursuance of contract or arrangement entered in the Register Maintained u/s
301 of the Companies Act, 1956 and aggregating during the year Rs.50,000/-
or more in respect of each party, have been made It 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
have been made with other parties.
xii. The company has no unserviceable goods or damaged stores, raw material
& finished goods.
xiii. As informed to us, the company has not accepted any deposit from
public within the purview of Section 58A of the Companies Act, 1956, and
the Companies (Acceptance of Deposits) Rules, 1975.
xiv. As informed to us, the company dose not have any scrap or any
xv. According to the information and explanation given to us the company
has an internal audit system commensurate with its size & nature of
xvi. As informed to us, the central government has not prescribed
maintenance of Cost records u/s 209(1)(d) of the Companies Act, 1956 in
respect of the Company's products.
xvii. It is explained to us that Employees Providend Fund & Employees State
Insurance Scheme is not applicable to the company for the period under
xviii. According to the information & explanation given to us and the
records of the company examined by us there were no undisputed amount
payable in respect of Income Tax, Wealth Tax, Custom Duty and Excise Duty
which have remained outstanding as at 31st March 97 for a period for more
than six months from the date they become payable.
xix. According to information & explanation given to us and on examination
of Books of Accounts carried out in accordance with the generally accepted
auditing practices we have not come across any personal expenses which have
been charged to revenue a/c other than those payable under contractual
xx. 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 Provision) Act, 1985.
xxi. In our opinion and according to information and explanation given to
us in respect of the trading activities of the company, there were no
damaged goods during the year.
M/s. Alwani & Ramchandani
Sanjay B. Ramchandani
Place : Mumbai
Dated : 5th August, 1997.