RENCAL CHEMICAL (INDIA) LTD
AUDITOR' S REPORT TO THE SHARE-HOLDERS OF RENCAL CHEMICALS (INDIA) LTD
1.We have audited the attached Balance sheet of RENCAL CHEMlCALS LIMITED
as at 31st March, 1999 and also the Profit and loss account of the Company
for the year ended on that date annexed thereto and report that
2. As required by the Manufacturing and other Companies (Auditor's Report)
Order,19B issued by the Company Law Board in terms of Section 227 (4A) of
the Companies Act, 1956 and on the basis of such check of books and records
as we consider appropriute, and according to the information and
optimisations given to us during the normal course of Audit, which were
necessary to the best of our knowledge and belief,we annex thereto a
statement on the matters specified in paragraph and of the said order.
3. Further to our comments in the Annexure referred in paragraph 2 above,
we state that:
a. We have obtained all the information and explanations which to the best
of our knowledge and belief were necesary for the purpose of our audit.
b. In our opinion, proper books of accounts, as required by law, have been
kept by the Company a far appears from our examination of those book.
C. The Balance Sheet and Profit loss Account referred to in this report are
in amount with the books of account.
d. In our opinion and according to the information and explanation given
the Balance sheet and profit and Loss Account Complied within mandatory
Accounting Standards referred to in sub-section(3C) of Section 211 of
the Companies Act, 1956.
e. In our opinion and to the best of our information and according to
the explanation given to us the said accounts read together with
Schedule, Notes and significant accounting policies give the information
required by the Companies Act,1956 in the manner so required and give
a true and fair view:-
i) In the case of the Balance Sheet, of the state of affair of the Company
a at 1st March. 1999 and
i) In the case of profit and loss Account of the profit of the company
for the year ended on that date.
For KRISHNA KUMAR THAKKAR & CO
Date : 30th August,1999.
ANNEXURE TO AUDITOR S REPORT IN PARAGRAPH (2) OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including Quantitative details and situation of fixed assets on the basis
of information available. As explained to us all the fixed assets have been
verified by the management during the year end and as informed to us no
material discrepancie were noticed on such verifications.
2. None of the fixed assets of the Company have been revalued during the
3. As explained to us, the physical verification has been conducted by the
management at the year end in respect of raw materials, work- in-
progress, finished goods, fuel and packing materials.
4. In our opinion and according to the information and explanation given
to us the procedure of physical verification of stock followed by the
mangement is reasonable and adequate in relation to the size of the Company
and nature of its business.
5. As explained to there were no material discrepancies noticed on such
verifications of Stock having regard to the size of the Company and nature
of its business.
6. The valuation of stocks is fair and proper in accordance with the
normally accepted Accounting Principles and is on the same basis as in the
7. According to the information and explanation given to us, the Company
has not taken loans from Companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act 1956 and / or
from the Companies same management a defined under Section 370 (lB) of the
Companies Act, 1956.
8. The Company has granted loans to Companies, firms or other parties
listed in the Register maintained under section 301 of the Companies Act,
19S6 or to Companies under the same management a defined under section 370
(1-B) of the Companies Act, 1956.
9. Parties including employee to whom loans or advances in the nature of
loans have been given by the Company are repaying the principal amounts
wherever such stipulations exists.
10. In our opinion and according to the information and explanations given
to us during the coure of the audit,there ars adequate internal control
procedures commenurste with the size of the Company and nature of its
businers with regard to purchases of stores, raw material including
components, plant and machinery, equipment and other assets, and with
regard to the sale of goods.
11. As explained as we can ascertain on the basis of elective checking and
according to the information and explanation given to us, there were no
transactions of purchases of goods and materials, and sale of goods,
materials and services mado in pursuance of contracts or arrangement
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 value in
respect of each party.
12. As explained to us, the Company has a regular procedure of or
determining unserviceble or damaged material, stores or finished goods.
13. The Company has not invited deposit from the public during the year.
14. The Company is maintaining reasonable record for sale and disposal of
realizable significant by-product and it has been explained to us no scrap
was generated during the year.
15. According to the information and explanation given to us, there is no
internal audit system in existence.
16. As explained to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies Act,
17. According to the records of the Company Provident Fund and Employees
State Insurance dues have been regularly deposited with the appropriate
18. According to the information given to us there are no undisputed
amount outstanding for a period of more than six months in respect of
Income tax, Wealth Tax, Sales Tax, Customs duty and Excise duty from that
data of becoming payable, as on 31 st March, 1999.
19. During the course of our examination of the Book of account carried out
in normal course of audit we have not come across any personal expense
which have been charged to profit and loss account other than those
payable under contractual obligations or in accordance with normal business
practice nor have we been informed of such case by the management.
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 lndustrial
Companies (Special Provisions) Act, 1985.
For KRISHNAKUMAR THAKKAR & CO
DATE : 30TH AUGUST,1999.