MANIYAR PLAST LIMITED ANNUAL REPORT 2002-2003 AUDITORS' REPORT TO THE MEMBERS OF MANIYAR PLAST LIMITED REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 30TH SEPTEMBER,2003 IN COMPLIANCE WITH SECTION 227(2) OF THE COMPANIES ACT, 1956. We have examined the attached Balance Sheet of MANIYAR PLAST LIMITED as at 30th September, 2003 and the annexed Profit and Loss Account for the year ended on that sate which are in agreement with the Company's books of account. This Financial Statement are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statement based on our audit. We conducted our audit in accordance with 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 misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and other Companies (Auditor's Retort) 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 of the books and records as we considered appropriate and according to the information and explanations given to us during the normal courses of audit we state on the matters specified in Paragraph 4 and 5 of the said Order as under. 1. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. As explained to us these fixed assets have been physically verifies by the management at reasonable interval and no material discrepancies mere noticed on such verification as compared to book records. 2. None of the fixed assets have been revalued during the year. 3. The stock of finished goods, stores spare parts and raw materials rave been physically verified by the management at reasonable intervals. 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 is business. 5. The discrepancies noticed on physical verification of stock as compared to book records were not material and the same have been property dealt with in the books of account. 6. We are of the opinion that the valuation of above mentioned stock considering the accounting method adopted for accounting of Excise Duty as referred to in AS-10 Schedule 18 is fair and proper and in accordance with the normally accepted accounting principles and s on the same basis as in the proceeding year. 7. It was informed that the Company has not taken any loans from the companies, firms or other parties listed in the register maintained under Sections 301 and 370 (1-C) of the Companies Act, 1956. 8. The Company has not granted any unsecurd loans to the companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956. 9. In respect of loans and advances in the nature of loans given by the Company where stipulations have been made,parties are repaying the principal and interest, wherever applicable as stipulated. 10. There are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchases of stores, raw materials, including components, plant and the machinery, equipment and other assets and for the sale of goods. 11. In our opinion and according to the explanation given to us the transactions of purchases of goods and materials from and sale of goods, materials and services to the parties during the year aggregating to Rs.50,000/- or more in respect of each party listed in the register maintained under Section 301 of the Companies Act, 1956 have been made at the prices which are reasonable having regard to the prevailing market prices for such goods, materials rang services or' tire prices ,at which the transaction for similar goods, materials and services have been made with the other parties. 12. The Company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. Adequate provision has been made in the books of accounts for the loss arising on the items so determined. 13. It was informed to us that the Company has not accepted any deposits from the public within the provisions of section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975. 14. In our opinion, the Company has maintained reasonable records for the sale and disposal of realisable scrap. As explained to us, the Company's manufacturing activities do not give rise to any by-products. 15. The company being public limited company & since the paid up capital of the Company being above Rs. 5 crores, the company has constituted a Audit Committee U/s 292 A of the Companies Act, 1956 consisting of total 3 Directors under the chairmanship of Mr. Yogesh Malpani (Executive Director) 16. It was informed that the Central Government has not prescribed the maintenance of Cost Records under section 209(1) (d) of the Companies Act, 1956 for any of the products of the Company. 17. As informed to us, there have been slight delays in depositing the amount of Provident Fund and Employee's State Insurance dues with the appropriate authorities. 18. According to the information given to us, no undisputed amounts payable in respect of Income-Tax, Wealth-Tax, Sales-Tax, Customs Duty and Excise Duty are outstanding as at 30th September, 2003 (Except Income Tax payable on MAT basis for previous years in respect of which provision has already been made) for a period of more than six months from the date they become payable. 19. The Company has become a Sick Industrial Company within the meaning of clause (0) of Sub-section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 w.e.f. 30/09/2000. As per the requirements the Company has filed a reference with BIFR within the prescribed time limit. 20. According to the information and explanation given to us, no personal expenses of employees or directors have been charged to revenue accounts other than those payable under the contractual obligations or in accordance with generally accepted business practice. 21. On the basis of the information obtained, none of the Directors of the Company are disqualified as on 30th September, 2003, from being appointed as Directors of the Company in terms of clause (g) of Sub section (1) of section 274 of the Companies Act, 1956. Further to the above, we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion the Balance Sheet and Income and Expenditure Account dealt with by this report comply with the accounting standards referred to in sub section (3C) of section 211 of the Companies Act, 1956: In our opinion, and to the best of our information and according to the explanations given to us, the said accounts together with the notes thereon in general and in particular Note No. B-5 & 12 in respect of charge of depreciation and deferred Taxation, give the information required by the Companies Act. 1956 in the manner so required and give a true and fair view: [a] In the case of Balance Sheet, of the state of affairs of the Company as at 30th September, 2003. AND [b] in the case of the Profit and Loss Account, of the loss for the year ended on that date. For S.G.DESHPANDE & ASSOCIATES Chartered Accountants Place : JALGAON Date : 29th November, 2003 (S.G. DESHPANDE) Chartered Accountant M. No. 33125.