M/S MUKUND SYNTEX LTD
The Share Holders,
M/s. Mukund Syntex Ltd.
We have audited the attached Balance Sheet of MUKUND SYNTEX LIMITED as at
31st March 1998 and the Profit & Loss Account for the year ended on that
date and report that:
1. As required by the Manufacturing and Other Companies (Auditors Report)
Order 1988 issued by the Company Law Board in terms of section 227 (4A) of
the Companies Act, 1956, We endorse, 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 para 1 above, we
report that :
a) We have owned all the information and explanations 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 Company so far as appears from our examination of the books of
c) The Balance Sheet and Profit & Loss Account dealt with by 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 accounts read together with the notes on
Schedule P regarding 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 view.
1. In the case of Balance Sheet of the state of affairs of the Company as
at 31st March, 1998 and
2. In the case of Profit & Loss Account, of the Loss of the Company for the
year ended on that date.
For BHUWANIA & AGRAWAL ASSOCIATES
Date : 28th August, 1998
ANNEXURE TO AUDITORS REPORT
(Referred to in Paragraph 1 of our Report of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of the fixed assets However it
was not available to us for verification. As explained to us, the fixed
assets have been physically verified by the management during the year and
no discrepancy was noticed on such verification.
2. None of the fixed assets have been revalued during the year.
3. The stock of Finished goods, Stores & spare parts and Raw material have
been physically verified by the management during the year ln our opinion
the frequency of 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 nature of its business.
5. The discrepancies noticed on physical verification of stock are not
material as compared to the book records and have been properlY dealt with
in the books of accounts.
6. In our opinion the valuation of stocks is fair and proper and in
accordance with the normally accepted accounting policies and is on the
same basis as in the previous year.
7. In our opinion the rate of interest and other terms and conditions on
which loans have been obtained from the Companies, Firms or other parties
listed in register maintained under section 301 of the Companies Act 1956
and or from the Companies under the same management as defined under
section 370 (1B) of the Companies Act 1956 are not prima facie prejudicial
to the interest of the Company However the repayment period thereon has not
been stipulated .
8. The Company has granted unsecured loans 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 Subsection (1B) of
section 370 of the Companies Act. In our opinion interest and other terms
and conditions of such loans are not prima facie prejudicial to the
interest of the Company . We have been informed that the same are on
9. In respect of loan and advances in the nature of loans given by the
Companies, the parties are repaying the principal amounts and interest
thereon, wherever applicable as stipulated
10. In our opinion and according to the information and explanations given
to us there are adequate internal control procedure commensurate with the
size of the company and nature of its business with regard to the purchase
of stores, Raw materials including components, Plant & machinery,
equipments and other assets and for the sale of goods.
11. In our opinion and according to the information and explanations given
to us the prices paid for purchase of goods, material and sale of goods,
material and services made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies Act,
1956 and y aggregating during the year to Rs. 50,0001 or more in respect of
each party. However the reasonableness is of the same could not be
ascertained in the absence of similar transaction with of other parties.
12. As explained to us, the Company has the regular procedure for the
determination of unserviceable or damaged stores, Raw material and finished
goods and adjustment in respect of loss arising from such items has been
13. In our opinion and according to the information and explanations given
to us, the Company has not taken any deposits from the public as per
provision of section 58A of the Companies Act, 1956
14. In our opinion reasonable records have been maintained by the Company
for sale and disposal of realisable scrap. The Company has no by products
15. Company has no formal internal audit system but has internal control
system commensurate with the size and nature of its business.
16. We are informed by the Company that maintenance of cost records has not
been prescribed by the Central Government under section 209 (1 ) (d) of the
Companies Act, 1958.
17. The company has deducted and deposited provident fund during the year
with the appropriate authorities. Balance payable as on -31.03.98 was Rs
10,149/ESIC has not been deducted or deposited during the year as informed
ESIC is not applicable.
18. According to information and explanations given to us, there are no
undisputed amounts payable in respect of Sales tax, Customs duty, Excise
duty and Income tax which are outstanding as on 31st March 1998 for a
period of more than than six months from the date they became payable.
19. During the course of our examination of the books of accounts carried
out in accordance with the generally accepted auditing practices, we have
not come across with any personal expenses other that those payable,under
contractual obligations charged to revenue accounts.
20. The company is not a sick industrial Company within the meaning of
clause (0) of subsection 1 of section 3 of the Sick industrial Companies
(Special Provisions), Act, 1985.
For BHUWANIA & AGRAWAL ASSOCIATES
Date : 28th August,1998