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Prestige HM-Polycontainers Ltd.

BSE: 507707 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Prestige HM-Polycontainers Ltd
NSE 05:30 | 01 Jan Prestige HM-Polycontainers Ltd

Prestige HM-Polycontainers Ltd. (PRESTIGEHMPOLY) - Auditors Report

Company auditors report

PRESTIGE HM-POLYCONTAINERS LIMITED ANNUAL REPORT 2002-2003 AUDITORS' REPORT TO THE SHAREHOLDERS OF PRESTIGE HM-POLYCONTAINERS LIMITED We have audited the attached Balance Sheet of M/s. Prestige HM- Polycontainers limited as at 31st March, 2003 end also the Profit and Loss Account for year ended en that date enhanced thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our Audit. We have conducted our audit In accordance with auditing standards generally accepted In India. Those Standards require plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining. on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also Includes assessing the accounting principles used and significant estimates made by management. as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As per information and explanation given to us, & Audit Report 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 statement on matters specified In paragraph 4 & 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 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 accounts 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 Lose Account referred to in this report are in agreement with the books of accounts. d) In our opinion the attached Balance Sheet as at 31st March, 2003 and the Profit and Loss Account for the year ended on that date comply with the Accounting standards Referred to to Sub Section 3(c) of Section 211 of the Companies Act. 1956. e) On the basis of written representations received from the directors, as on 31st March, 2003. and taken an record by the Board of Directors, We report that none of the directors is disqualified as on 31st March. 2003 from being appointed as a director In terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956. f) Note no. 12(A) & 12(B) regarding outstanding of State Bank of India & Financial Institutions, which self-explanatory. g) Note No.6(i) regarding balances of Debtors, Creditors, Advances and Loans from Financial Institutions, Banks,/ Other Parties which are subject to reconciliation/ conformation. 2. Note no. 11(i) regarding provision for depreciation and no,provision of Interest relating to Noida Unit. 3. Non-Provision of Interest of of Rs. 10.40 Lacs In case of Stale Bank of India for the period from 1st April, 2002 to 31st March, 2003 (refer clause 1.(d)In Notes to Accounts contingent liabilities) To this extent the loss for the current year is understand. 4. Write off in the Financial year 2000-2001. in respect the amount standing the credit of State Bank of India Rs. 780.20 Lacs Financial Institutions Rs. 498.40 Lacs under law of limitation. To this extent are accumulated losses are understated. 5. Note No. 13, regarding the Company being registered as a Sick company BIFR. h) Subject to the foregoing Clause 'g' above, in our opinion and to the best of our Information and according to the explanations given to me the said accounts. read together with significant accounting policies and other notes thereon give the Information required by Companies Act. 1956 (AS amended) in the manner so required to give a true and fair view * In the case of the Balance sheet of the state of affairs of the company as at 31st March, 2003. * In the case of the Profit & Loss Account of the Loss of the Company for ate year ended on that date. For Jayesh Sanghrajka & Co., Chartered Accountant Jayesh Sanghrajka (Partner) CAMP : Mumbai The 11th Day 0f August, 2003. ANNEXURE REFERRED TO IN PARAGRAPH (1) OF THE AUDIT REPORT OF EVEN DATE TO THE SHAREHOLDERS OF PRESTIGE HM POLYCONTANERS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2003. i) The Fixed Assets Register with some other records had been lost in transit during shifting of office. FIR for the lodged with Sihivaji Park police station -Dadar, MUMBAI. However the Fixed Assets have been physically verified by the Management during the year with the help of available records No. material discrepancies were noticed on verification. ii) The Fixed Assets of the Company have not been raveled during the year. iii) The stock of finished goods, raw material work-In-process and stores & spare parts have been physically verified by the management at reasonable intervals. iv) The procedures of physical verification of stocks followed by the Management wherever done is reasonable and adequate in relation to the size of the company and the nature of its business. v) No Material difference have been noticed on physical verification of stocks as compared to book records. vi) In our opinion, the valuation or finished goods, raw materials, stores & spares have been fair and proper and is In accordance with the normally accepted accounting principles and, is on the same basis as per last year except excise duty on stocks of finished good not cleared from the factory at the year end end is not considered for such valuation as per past practice, though not in accordance with the guidelines Issued by the Institute of Chartered Accountants of India. However the same does not afraid the Profit & Loss Accounts for the year. (Refer Note No.5 of Schedule-R) vii) The Company has net taken unsecured loan/ deposits from companies listed In Register maintained under Section 301, and/ or from the Companies under the same management as ranted under Section 370 (1B) of the Companies Act, 1956. viii) The Company has not granted any loan to Companies. firms or other Parties listed in register maintained under Section 301 and/ or to the Companies under the same management as defined under 370 (1B) of the Companies Act. 1956. ix) The Company has given interest free advances in the nature of loans to its employees and the repayment wherever stipulated have been paid regularly. x) 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 for the purchase of stores, raw materials including components. plant and machinery equipment and other assets and for the sale of goods however the internal control procedure needs to be further strengthened. xi) There are no transaction of purchases of goods and materials and sale of goods material & services aggregating during the year Rs. 50,000/- or more in respect of each party is pursuance of contracts or Management entered in the register maintained under section 301 of the companies Act, 1956. xii) There were no unserviceable or damaged goods stores or raw materials as explained to us, except to the extent otherwise shown, xiii) According to the information and explanation given to us, the company has not accepted any deposits from the public. xiv) In our opinion, reasonable records have been maintained by the Company for the sales and the disposal of realisable scrap. The company has no by-products. xv) There was no internal audit system during the year, as explained by the management. xvi) The Central Government has not prescribed maintenance of cost records under section 209 (1) (d) of the companies Act, 1956 for the products manufactured by the company. xvii) According to the records of the Company. Provident Fund dues have not been deposited in time however there are no arrears as on date. We are informed that the Employees state Insurance scheme is not applicable to the company. xviii) AS par Information and explanation given to us, there were no undisputed amount payable in respect if income-Tax, wealth-tax, Custom Duty & Excise Duty were Outstanding as at last day of fantail year concerned for a period of more than six months from the date they become payable. xix) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices we have not come across any personal expenses which have been charged to the profit and loss account other than those payable under contractual obligation or in accordance with the generally accepted business practices. xx) The Company is a Sick Industrial Company with in the meaning of clause (O) of sub-section (1) of section (3) of the Sick Industrial Companies (special Provisions) Act, 1985. However in view of Note No. 13 the status is required to be re-examined. For Jayesh Sanghrajka & Co., Chartered Accountant Jayesh Sanghrajka (Partner) CAMP : Mumbai The 11th Day 0f August, 2003.