PERTECH COMPUTERS LIMITED
We have audited the attached Balance Sheet of PERTECH COMPUTERS LIMITED as
at 31st December, 1996 and the annexed Profit & Loss Account for the period
ended on that date.
We report that:
1. As required by the Manufacturing and other Companies (Auditors' Report)
order, 1988 issued by the Company Law Board in term 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 to the extent
applicable to the Company.
2. Further to our comments in the Annexure referred to in paragraph 1
a. 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.
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 the books.
c. The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account.
d. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956 subject to note 8 regarding the provision for
taxation which is made on the basis of income of the year ending 31st
March, 1996 in the manner so required and give a true and fair view:
i) In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st December, 1996 and
ii) In the case of Profit and Loss Account, of the profit of the Company
for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
1. The Company has maintained proper records, showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified according to the phased programme
designed to cover all the items over a period of 4 years over all
locations. Pursuant to the programme, a physical verification was carried
out during the year and this revealed no serious discrepancies.
2. The Company has not revalued any of the fixed assets.
3. Physical verification has been conducted by the management at reasonable
periods in respect of finished goods and stores and spare parts. 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. The discrepancies noticed on such verification as
compared to the book records which were not significant, have been properly
dealt within the books of account. The valuation of these stocks is fair
and proper in accordance with normally accepted accounting principles and
is on the same basis as in the previous year.
4. In our opinion the rates of interest and other terms and conditions of
loans taken by the Company during the year from companies, firms and other
parties listed in the register maintained under Section 301 and 370 (1-C)
of the Companies Act, 1956 or which are otherwise under the same management
as this company, are not prima facie prejudicial to the interests of the
5. In respect of loans and advances in the nature of loans given by the
company to staff and other parties, the repayment of principal and
interest, where charged are in accordance with the stipulated terms. Apart
from the above the company had given advances to certain parties where no
terms have been stipulated. Such loans are not prima facie prejudicial to
the interest of the Company.
6. In our opinion the internal control procedures of the Company relating
to purchases of stores, raw materials including components, plant and
machinery, equipment and other similar assets and sale of goods are
commensurate with the size and nature of business of the company.
7. The prices paid for the purchase of stocks, raw materials of components,
services or received for sales of goods exceeding Rs. 50,000/- in value of
each party thereof, from firms or companies or other parties in which
Directors are interested as listed in the register maintained under Section
301 of the Companies Act, 1956 are reasonable as compared to the prices of
similar items supplied by other parties or as available with the company.
8. As explained to us, unserviceable or damaged stores and raw materials
and finished goods are determined by the company in a systematic manner on
the basis of technical evaluation and on such basis, in our opinion,
adequate amounts have been written off such stock in the accounts.
9. In our opinion and according to the information and explanations given
to us, the Company has complied with the provisions of Section 58A of the
Companies Act, 1956 with regard to deposits accepted from the public.
10. The company has no by-product pr significant disposable realisable
scrap requiring the maintenance of separate records.
11. The company has an internal audit system commensurate with its size and
nature of its business.
12. Maintenance of cost records has not been prescribed by the Central
Government under Section 209(1) (a) of the Companies Act, 1956 for any of
the products of the Company.
13. According to the records of the Company, the Provident Fund and
Employees States Insurance dues have been regularly deposited with the
14. Personal expenses except contractual obligations have not been debited
to Profit & Loss Account.
15. According to the information and explanations given to us there are no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty as, at 31st December, 1996.
16. The company is not a Sick Industrial Company within the meaning of
Clause (O) of sub-Section (I) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
17. The nature of services rendered is such that it does not involve
consumption of stores/materials and man-hours.
18. In the case of trading activities of the Company, damaged goods have
been determined at the time of physical verification and properly dealt
with in the books of account.
For G.S. JOHAR & CO.
GURJEET SINGH JOHAR
Place : New Delhi
Dated : 27th May, 1997.