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ANNUAL REPORT 1998-99
NOBLE BROTHERS IMPEX LIMITED
AUDITOR'S REPORT
The Shareholders,
M/s Noble Brothers Impex Ltd.
5, Community Centre, Mezzanine Floor
Naraina Industrial Estate, Phase-I
New Delhi 110028.
We have audited the attached Balance Sheet of M/s NOBLE BROTHERS IMPEX LTD.
as at 31st March,1999 and also the Trading & Profit and Loss Account of the
company for the year ended on that date annexed hereto and report that:-
1. 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.
2. In our opinion proper books of accounts as required by the law have been
kept by the Company so far as appears from our examination of those books.
3. The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account, and comply with the accounting
standards as specified by the Institute of Chartered Accountants of India.
4. In our opinion and to the best of our information and according to
explanations given to us the said accounts give the information required,
by the companies Act, 1956 in the manner so required subject to Notes on
Accounts as per Schedule XX and give a true and fair view.
a) In the case of the Balance Sheet of the Company's State of affairs as at
31st March, 1999.
b) In the case of the Profit and Loss Account, of the loss for the year
ended 31st March, 1999.
5. As required by the Manufacturing and Other Companies (Auditor's Reports)
Order, 1988, issued in terms of Section 227 (4A) of the Companies Act,
1956, we give in the annexure a statement on the matters specified in
paragraph 4 and 5 of the said order.
For MOHINDRA ARORA & COMPANY
Chartered Accountants
Sd/-
Place : New Delhi (M. G. ARORA)
Date : July 12,1999. Partner
ANNEXURE
ANNEXURE TO THE AUDITOR'S REPORT REFERRED TO IN PARAGRAPH 5 OF OUR REPORT
OF EVEN DATE.
a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets. As informed
to us, the assets have been physically verified by the management at the
year end which is considered reasonable and no material discrepancies have
been noted on such verification.
b) None of the fixed assets have been revalued during the year.
c) The stock of finished goods, stores, spare parts and raw materials have
been physically verified by the management except stock in transit, stock
lying with fabricators and processors.
d) In our opinion, the procedures for physical verification of stocks
followed by the management are not reasonable and adequate in relation to
the size of the Company and nature of its business.
e) We are not certain whether there were any discrepancies noticed on
physical verification of stocks as stock records were not available for our
verification.
f) The valuation of stock is fair and proper in accordance with normally
accepted accounting principles and on the same basis as in the preceding
year.
g) The company has taken unsecured loans from parties listed in the
register(s) maintained under Section 301 of the Companies Act 1956 or from
the Companies under the same Management as defined in Section 370 (IB) of
the said Act. The terms & conditions of such loans are not prima facie
prejudicial to the interest of the company.
h) The company has given advances in the nature of loans to the company's
under the same management as defined in Section 370 (IB) of the Companies
Act 1956, No terms & conditions or agreements were shown to us therefore we
are unable to comment on the reasonableness of such loans/advances.
i) In our opinion and according to the information and explanations given
to us internal control procedures are not commensurate with the size of the
company and the nature of business with regard to purchase of stores raw
materials including components, plants and machinery, equipment and other
assets and the same needs strengthening.
(j) According to the information and explanation given to us, the
transaction of purchase of goods and materials and sale of goods and
materials and services made in pursuance of contract or arrangements enter
in the register maintained under section 301 of the Companies Act, 1956 and
aggregating during the year to Rs. 50,000.00 or more in respect of each
party have been made at the then prevailing market price however, in
certain cases we are unable to comment in the absence of sufficient
information.
k) As informed to us, there are no unserviceable or damaged stores, raw
materials or finished goods as on the Balance Sheet date.
l) The company has not accepted any deposits from the public within the
meaning of Section 58A of Companies Act, 1956 and the rules framed
thereunder.
m) As informed to us the company does not have any realisable by-Products
and scraps.
n) As informed to us the Central government has not prescribed for the
maintenance of cost records by the company under section 209 (1) (d) of the
companies Act, 1956.
o) The company is irregular in depositing provident fund, E.S.I. and
Pension dues with the appropriate authorities.
p) There is no internal auditors of the company. Fresh appointment of
internal auditors were not made during the year .The company is required to
appoint an Internal auditor as per the provision of Section 227 of the
Companies Act, 1956 covered by the Manufacturing and other Companies
(Auditor's Report) Order, 1988.
q) According to the information and explanations given to us and records
examined by us no undisputed amount payable in respect of income tax,
wealth tax, sales tax, custom duty and excise duty were outstanding as at
31st March, 1999 for a period exceeding six months from the date they
became payable.
r) According to the information and explanations given to us and the
records of the company examined by us no personal expenses have been
charged to Profit & Loss Account, except those payable under contractual
obligations or in accordance with generally accepted business practices.
s) In respect of trading items according to the information & explanations
given to us there were no damaged goods.
t) The Company is a potentially Sick industrial Company with in the meaning
of Section 23 of the Sick Industrial Companies (Special Provisions) Act,
1985, as more than 50% of the peak net worth (preceeding four Financial
Year) of the company has been eroded.
For MOHINDRA ARORA & COMPANY
Chartered Accountants
Sd/-
Place: New Delhi (M. G. ARORA)
Date : July 12,1999. Partner
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