NUBAL (INDIA) LIMITED
ANNUAL REPORT 1999-2000
To the Members of Nubal (India) Limited, Chennai.
We have audited the attached Balance Sheet of M/s. NUBAL (INDIA) LIMITED as
at 31st March 2000 and the annexed Profit & Loss Account of the Company for
the year ended on that date. In accordance with the provisions of Section
227 of the Companies Act, 1956, we report as under
1. As required by the Manufacturing and other companies (Auditor's Report)
Order, 1988 issued by the Government of India U/S 227 (4A) of the Companies
Act 1956, we enclose in the annexure our report on the matters specified in
paragraphs 4 and 5 of the said Order.
2. Further to our comments in the annexure referred to in paragraph 1 above
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 account as required by law have been
kept by the company, so far as appears from our examination of those books.
c) The Balance Sheet and Profit and Loss Account referred to in this report
are in agreement with the books of account.
d) In our opinion, the Profit and Loss account and the Balance Sheet dealt
with by this report complied with the accounting standards referred to in
sub-section 3(c) of section 211 of the Companies Act 1956.
Attention is invited to the following :
i) Work-in-progress and finished goods are valued on the basis of the
technical officer's estimate. We are unable to comment whether the
valuation of work-in-progress and finished goods are true and fair.
ii) Note (i) of Schedule G in respect of provision for leave Encashment
which has not been made.
iii) Note No.3 Schedule H regarding excise duty, in respect of which we are
unable to express any opinion.
e) Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read together with the accounting policies and the notes thereon
in schedule "G" & "H" give the information required by the Companies Act,
1956 in the matter so required and give a true and fair view :
i) In the case of the Balance Sheet, of the State of Affairs of the Company
as at 31st March, 2000 and
ii) In the case of the Profit & Loss Account, of the profit of the Company
for the year ended on that date.
Place : Chennai For KURUVILLA & KURUVILLA
Date : 29th June 2000 Chartered Accountants
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of our report of even date)
1. The Company is maintaining proper records to show full particulars
including quantitative details and situation of all fixed assets. There is
annual verification of Fixed Assets by the management, which in our opinion
is reasonable having regard to the size of the Company and nature of
assets. No discrepancies have been noticed on such verification. However,
in respect of new items of machinery and equipment purchased during the
year, the said fixed assets register is being updated.
2. None of the fixed assets have been revalued during the year.
3. As explained to us, stocks of finished goods, stores, spare parts and
raw materials have been physically verified by the management at reasonable
intervals during the year.
4. As explained to us, the procedure of physical verification of stocks
followed by the management,are in our opinion, reasonable, and adequate in
relation to the size of the Company and the nature of its business.
5. The discrepancies between the physical stocks and book records were not
material and have been properly dealt with in the books accounts.
6. In our opinion, the valuation of stocks except work-in-progress and
finished goods is fair and proper, in accordance with the normally accepted
accounting principles and is on the same basis as in the preceding year,
work-in-progress and finished goods are valued on the basis of the
technical officer's estimates (Refer para 2(d) (i) of the Report).
7. The Company has not taken any loans, secured or unsecured, from
Companies, Firms, or other parties listed in the Register maintained under
Section 301 of the Companies Act, 1956 except unsecured loans from
directors. The terms and conditions of such loans are prima-facie not
prejudicial to the interest of the Company. As explained to us, there are
no Companies under the same management referred to in sub-section (1 B) of
Section 370 of the Companies Act. 1956.
8. The Company has not granted any loan, secured or unsecured, to
Companies, firms or other parties listed in the register maintained under
Section 301 of the Companies Act 1956 and to Companies under the same
management as defined under Sub section (1 B) of Section 370 of the said
9. The parties to whom loans and advance in the nature of loans have been
given by the Company are generally repaying the principal amounts as
stipulated and also interest where applicable.
10. In our opinion and according to the information and explanations given
to us, there is an adequate internal control procedure commensurate with
the size of the Company and nature of its business, through personal
supervision of the management, in respect of purchases of stores, raw
material including components, trading goods, plant and machinery and other
assets and for the sale of goods.
11. According to the information and explanations given to us, there have
been no transaction of purchases of goods and materials and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies Act,
1956 and aggregating during the year to Rs.50,000/- or more in respect of
12. As explained to us, the Company has an adequate system of determining
unserviceable or damaged stores, raw material and finished goods, trading
13. The Company has accepted certain unsecured loans during the year which
in our opinion would fall under the provisions of Section 58A of the
Companies Act 1956 and the Companies (Acceptance of Deposits) Rules, 1975
which the Company has not complied with.
14. As explained to us, the Company is maintaining reasonable records, of
sale and disposal of realizable scrap. We are informed that the Company has
no realizable by-product.
15. In our opinion, the Company has an internal audit system, which needs
to be strengthened to be commensurate with the nature and size of the
16. The Central Government has not prescribed the maintenance of Cost
records by the Company under section 209 (1) (d) of the Companies Act, 1956
for any of the products of the Company.
17. The Company has not been regular in depositing Provident Fund and
Employees State Insurance dues with the appropriate authorities within the
due dates. The amount of Provident Fund not deposited with the authorities
was Rs.509154.64 as on 31.03.2000. The amount of E.S.I. not deposited with
authorities as on 31.03.2000 was Rs.296,049.89.
18. According to the information and explanations given to us, no
undisputed amounts payable in respect of Wealth Tax, Customs Duty and
Excise Duty were outstanding as at 31st March 2000, for a period of more
than six months from the date they became payable except for the Sales tax
of Rs.36,062 and Income Tax deducted at source and not remitted to the
Department of Rs.43,067/-.
19. 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 the revenue account other than those payable under contractual
obligations or in accordance with the generally accepted business
20. 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 Provisions) Act, 1985.
Place : Chennai For Kuruvilla & Kuruvilla
Date : 29th June 2000 Chartered Accountants