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Priyadarshini Fabs Ltd.

BSE: 532050 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Priyadarshini Fabs Ltd
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Priyadarshini Fabs Ltd. (PRIYADARFABS) - Auditors Report

Company auditors report

Priyadarshini Fabs Ltd. AUDITORS' REPORT TO THE MEMBERS OF M/s PRIYADARSHINI FABS LTD., MALLIPUDUR We have audited the attached Balance Sheet of M/s. PRIYADARSHINI FABS LTD., 361, Mallipudur, Malli - 626 141, Virudhunagar District, Tamil Nadu as on 31st March. 1998 and the Profit and Loss Account of the Company for the year ended 31 st March, 1998. WE REPORT AS FOLLOWS: 1. As 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 and on the basis of information and explanations given to us in the normal course of audit and to the best of our knowledge and belief, we attach herewith an Annexure on the matters specified in paragraph 4 and 5 of the aforesaid order to the extent they are applicable to the company. 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 our audit b. In our opinion, proper books of accounts as required by the law have been kept by the company so far as it appears from our examination of such books. c. The Balance Sheet and Profit and Loss account as dealt with in this Report for the year under review are in agreement with the Books of accounts. d. In our opinion and to the best of our knowledge and according to the information and explanations given to us, the said accounts read together with the notes thereon give the information required by the Companies Act,1956, in the manner so required and give a true and fair view, (i) In so far as it relates to the Balance Sheet, of the state of affairs of the company as at 31st March, 1998 and (ii) In so far as it relates to the Profit and Loss account, of the profit of the company for the year ended 31st March, 1998. For M/s. L. CHARLES, B.Sc., F.C.A. CHARTERED ACCOUNTANTS PLACE: MALLIPUDUR L. CHARLES, B.Sc., F.C.A. DATED: 16.11.1998 PROPRIETOR ANNEXURE TO THE AUDITORS' REPORT 1. The company has maintained proper records showing full particulars including quantitative details and situation of Fixed assets. All the assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification. 2. None of the fixed assets of the company have been revalued during the year. 3. Physical verification has been conducted by the management at reasonable intervals in respect of finished goods, stores, spare parts and raw materials and no material discrepancies were noticed on such verification. 4. 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. 5. No material discrepancies have been noticed on physical verification of stocks as compared to book records. 6. On the basis of examination of stocks, we are satisfied that such valuation is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year. 7. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and/or from the Companies under the same management as defined under sub- section (1B) of section 370 of the Companies Act,1956 are not prima facie prejudicial to the interest of the company. 8. In our opinion, the rate of interest and other terms and condition on which loans have been granted to companies, firms or other parties listed in the register maintained under section 301 and to the companies under the same management as defined under sub-section (1 B) of section 370 of the Companies Act, 1956 are not prima facie prejudicial to the interest of the Company. 9. The Company has given advances in the nature of loans to the employees which are interest free and are being recovered regularly. 10. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures 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. 11. In our opinion and according to the information and explanations given to us, the transactions for purchase 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 each party, have been made at prices which are reasonable having regard to prevailing market prices for such goods, materials or services or the prices at which transactions for similar goods, materials or services have been made with other parties. 12. As explained to us, the company has a regular procedure for determination of the unserviceable or damaged stores, raw materials and finished goods. Adequate provision has been made in the accounts for the loss arising on the items so determined. 13. In our opinion and according to the information and explanations given to us, the company has not accepted any deposit from the Public and hence the provisions of section 58 A of the Companies Act, 1956 and the Companies [Acceptance of Deposits] Rules, 1975 with regard to the deposits accepted from the public does not apply to the company. 14. The company has maintained proper records for the sale and disposal of realisable by-products and scarps. 15. The company has an internal audit system commensurate with the size and nature of its business. 16. The company has maintained Cost Accounting Records under the Cost Accounting Records [Cotton Textiles] Rules, 1977 for the year. However, we have not made detailed examination of these records. 17. During the year the company has regularly deposited with the appropriate authorities, the dues relating to Provident Fund, Employees State Insurance, whenever applicable. 18. According to the information and explanations given to us there were no undisputed amounts payable in respect of Income-tax, Wealth tax, Sales tax, Customs Duty and Excise Duty which were outstanding as at 31st March 1998 for a period of more than six months from the date they became payable. 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 Revenue Account. 20. The Company is not a Sick Industrial Company within the meaning of Clause (o) of the sub-section (1) of section 3 of the Sick Industrial Companies [Special Provisions] Act, 1985. For M/s. L. CHARLES, B.Sc., F.C.A. CHARTERED ACCOUNTANTS PLACE: MALLIPUDUR L. CHARLES, B.Sc., F.C.A. DATED: 16.11.1998 PROPRIETOR