NAGARJUNA GRANITES LIMITED
ANNUAL REPORT 1998-99
The Members of
NAGARJUNA GRANITES LIMITED
We have audited the attached Balance Sheet of NAGARJUNA GRANITES LIMITED as
at 31st March, 1999 and the Profit & Loss Account for the year ended on
that date and annexed thereto 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 enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order wherever
2. Further to our comments in the annexure referred to in paragraph above
a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of the audit
b) In our opinion proper books of account, as required by law have been
kept by the Company so far as it appears from the examination of such
c) The Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion the Balance Sheet and the Profit and Loss Account
complies with the mandatory Accounting Standards referred in Section 211
(3C) of the Companies Act, 1956.
e) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with and subject
to the notes thereon, give the information as required by the companies
Act, 1956 in the manner so required and give a true and fair view:
i)In the case of Balance Sheet of the state of affairs of the company as at
31st March, 1999 and
ii)In the case of Profit & Loss Account of the Loss for the year ended on
for A.M. REDDY & CO.,
Place: Hyderabad (K.V. JAGAN MOHAN REDDY)
Date: 24-06-1999 PARTNER
ANNEXURE TO THE 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 its Fixed Assets, The
Assets of the Company have been physically verified by the management
during the year as per a programme of verification, which in our opinion is
reasonable having regard to the size of the company and the nature of its
assets. No material discrepancies were notice on such verification.
2) None of the Fixed Assets has been revalued during the year.
3) The stocks of finished goods and raw materials have been physically
verified during the year 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 its business .
5) The discrepancies noticed on verification between the physical stock and
the book records were not material.
6) On the basis of our examination of stock records, we are of the opinion
that the valuation of stocks is fair and proper in accordance with the
normally accepted accounting principles and is on the same basis as in the
7) The company has not taken any loans from the Companies, firms or other
parties listed in the Register maintained under section 301 and 370 (1 -C)
of the Companies Act,1956.
8) According to the information and explanations given to us the company
has not granted any loans to the Companies, firms or other parties listed
in the register maintained under section 301 and 370 (1 -C) of the
Companies Act, 1956.
9) The company has not granted any loans or advances in the nature of
10) In our opinion and according to the information and explanations given
to us, there is an adequate internal control procedures commensurate with
size of the company and the nature of its business with regard to purchase
of stores, raw materials, including components plant & machinery, equipment
and other assets and with regard to the sale of goods.
11) According to the information and explanations given to us, the company
has not made any transactions of purchase and sale of goods and materials
in pursuance of contracts, or arrangements entered in the register
maintained under section 301 and aggregating during the period to Rs.50,000
or more in respect of each party.
12) According to the information and explanations given to us, there are no
unserviceable or damaged stores, raw materials or finished goods.
13) The company has not accepted any deposits from the public covered by
the provisions of section 58A of the Companies Act, 1956.
14) We are informed by the Management that the manufacturing process of
product does not give rise to any by-product or realisable Scrap.
15) The company has no Internal Audit System.
16) The maintenance of cost records has not been prescribed by the Central
Government under section 209 (1)(d) of the Companies Act, 1956.
17) The provisions of Employees Provident Fund Act is applicable to this
company and advised to comply the same. The Employees State Insurance Act
do not apply to this Company.
18) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Customs
Duty Excise Duty were outstanding as on 31 st March,1999 for a period of
more than six months from the date they became payable. The provisions of
Wealth Tax Act are not applicable to this company.
19) According to the information and explanations given to us, no personal
expenses of employees or directors have been charged to revenue account,
other than those payable under contractual obligations.
20) The company is a sick industrial company within the meaning of clause
(o) of sub-section (1) of section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
for A.M.REDDY & CO.,
Place: Hyderabad (K.V.JAGAN MOHAN REDDY)
Date : 24-06-1999 PARTNER