PREMIER VINYL FLOORING LTD
AUDITORS' REPORT TO THE MEMBERS
We have examined the attached Balance Sheet of PREMIER VINYL FLOORING
LIMITED as at 31st March, 1997 and the annexed Profit & Loss Account for
the year ended on that date which are in agreement with the books of
As required by the Manufacturing and other Companies (Auditors' Report)
Order, 1988, and on the basis of such examination of the books and records
of the Company as we considered appropriate and the information and
explanations given to us during the course of our audit, we report that in
i) The Company has maintained proper records showing full details including
quantitative details and situation of fixed assets. The fixed assets have
been physically verified by the management during the period and the
reconciliation of quantities with records have been done. No discrepancies
between the book record and the physical inventory have been noticed by the
ii) No revaluation of any of the assets of the Company has been made during
iii) The stocks of finished goods, stores and spares and raw materials were
physically verified by the management during the period. No discrepancies
between the physical stock and book stock have been noticed. In our
opinion, the valuation of the above mentioned stocks is fair and proper in
accordance with the normally accepted principles and is on the same basis
as in the previous year.
iv) The Company has not taken any loans from Companies, Firms or other
parties listed in the register maintained under section 301 and 370 (1-C)
of the Companies Act, 1956.
v) Advances in the nature of loans have been given to the employees free of
interest and the same have been recovered generally as per stipulations,
vi) On the basis of checks carried out during the course of audit and as
per explanations given to us there is an adequate internal control
procedure commensurate with the size of the Company and the nature of its
business of the purchase of stocks, raw materials including components,
plant machinery, equipments and other assets.
vii) No stores, raw material or components were purchased from Companies in
which any of the Director is interested as listed in the register of
contract maintained under section 301 of the Companies Act, 1956.
viii) As explained to us, there is no unserviceable or damaged goods during
ix) The Company has accepted deposits from the public, and directions
issued by the Reserve Bank of India and the provisions of Section 58A of
the Companies Act, 1956 and the Rules framed thereunder have been complied
x) In our opinion, reasonable records have been maintained for the sale and
disposal of scraps.
xi) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
xii) According to the explanations given to us the Company has not been
prescribed by the Central Govt. under se ion 209(1)(d) of the Companies
Act, 1956 to maintain cost records.
xiii) The Company is regular in depositing Provident Fund and Employees
State Insurance dues with the appropriate authorities.
xiv) There were no undisputed amounts payable in respect of Income-tax,
Wealth-tax, Sales-tax, Customs Duty and Excise Duty as at 31st March, 1997
which were outstanding for a period of more than six months from the date
they became payable.
xv) In our opinion and according to the information and explanations given
to us, personal expenses other than those payable under contractual
obligations or in accordance with the generally accepted business practice
have not been charged to revenue account.
xvi) 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.
We further report that in our opinion, proper books of accounts have been
kept by the Company as required by law so far as appears from our
examination of those books. We have obtained all the information and
explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit and in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts read in conjunction with the Schedules give the information
required by the Companies Act, 1956, in the manner so required and the
Balance Sheet gives a true and fair view of the state of the Company's
affairs as at 31st March, 1997 and the Profit and Loss Account gives a true
and fair view of the Profit for the year ended on that date.
For De & Bose
Durga Das De
Place : New Delhi,
Date : 28th June, 1997.