RMI FOOD LIMITED
RMI FOODS LIMITED
We have audited the attached Balance Sheet of RMI FOODS LIMITED as at 31st
March 1998 and also the Profit & Loss Account of the Company for the year
ended on that date annexed thereto.
We report as follows :-
1. As required by the Manufacturing and other Companies (Auditors Report
order 1998), we enclose in the annexure statement on the matter specified
in paragraphs 4 & 5 of the said order.
2. Further to our observations in the annexure referred to in paragraph I
above we state that:
a) We have obtained all the information explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit.
h) 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 the books of
account of the Company.
c) The Balance sheet and the Profit & Loss Account dealt with by the report
are in agreement with books of accounts of the Company.
d) In our opinion and to the best of our information and according to the
explanation given to us the said Balance Sheet and Profit & Loss Account
subject to Note II of the schedule 19 regarding Non-Provision of gratuity
liability and Note 15 regarding Public Issue Suspense Account 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 affairs of the Company
as at 31st March 1998 and:
ii) In the case of the Profit & Loss Account of the Loss of the Company
for the year ended on that date.
For V.GUPTA & ASSOCIATES
PLACE: NEW DELHI (V.K.GUPTA)
DATE : 28.10.98 PARTNER
ANNEXURE TO AUDITORS REPORTS (REFERRED TO IN PARAGRAPH I OF OUR REPORT OF
1.a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) All the fixed assets of the Company have been physically verified during
the year by the Management and no material discrepancies between the book
records and physical inventory have been noticed.
2. The Fixed assets of the Company have not been revalued during the year.
3. The Stocks of finished goods, store, spare parts and raw material of the
Company have been physically verified by the Management once in the year
4. In our opinion, the procedure 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. The discrepancies between the physical stocks and the book stock which
have been properly dealt with in the books of account were not significant.
6. In our opinion the valuation of stock of finished goods, store and spare
parts in raw materials has been fair and proper in accordance with the
normally accepted accounting principles and is on the same basis as in the
7. In our opinion, the rate of interest and terms and conditions on which
loans have been taken from the Parties listed in the register maintained
under section 301 of the Companies Act, 1956 are not prima-facie
prejudicial to the interest of the Company. No interest is paid payable on
8. The Company has not granted any loans, secured or un-secured to
Companies, firm or other parties listed in the Registers maintained under
section 301 and/or to the Companies under the same management as defined
under sub-section (1B) of the section 370 of the Companies Act, 1956.
9. No Loans or Advances in the nature of loans except interest free loans &
advances to employees have been given by the Company. Employees are
repaying the principal amount of Loans & Advances as stipulated.
10. In our opinion there is an adequate internal control procedure
commensurate with the size of the Company and nature of its business for
purchase of stores, raw materials including components, plant and
machinery, equipment and other similar assets and for the sale of goods.
11. In our opinion and according to the information and explanations given
to us there was no purchase of goods and material and sale of goods,
material and services made in pursuance of contract or arrangement entered
in the register maintained under section 301 respect of each party.
12. On the basis of information made available to us there was no un-
serviceable or damaged stores, raw materials or finished goods
13. The Company has neither accepted nor renewed any deposits defined under
Section 58 A of the Companies Act, 1956, and rules framed thereunder.
14. In our opinion, reasonable records have been maintained by the Company
for the sale and disposal of by-product.
15. The Company has internal audit system commensurate with the size and
the nature of its business. However in our opinion, the same needs to be
16. According to the record of the Company, there has been some delays in
deposit Provident fund and Employees State Insurance dues during the year
with appropriate authorities. However there are no arrears in respect of
year ended 31st March 1998, as on the date.
17. We have broadly reviewed hooks of accounts maintained by the Company
pursuant to the order made by the Central Government for the maintenance of
cost records under section 209 (1)(d) of the Companies Act, 1956 and we are
of the opinion that prima facie prescribed accounts and records have been
maintained. We have not however, made a detailed examination of the said
18. There was no amount outstanding on 31st March, 1998 in respect of un-
disputed income tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty
which were due for more than six months from the date they became payable.
19. During the course of our examination of the books of accounts of
accepted auditing practices, have neither come across any personal expenses
which have been charged to Profit & Loss Account nor we have been informed
of such case by the Management.
20. The Company is a Potentially Sick Industrial Company within the meaning
of Section 23 (1) of the Sick Industrial Companies (Special Provisions)
21. As explained to us there is no damaged goods in the case of goods
purchased for resale.
For V.GUPTA & ASSOCIATES
PLACE: NEW DELHI
DATE : 28.10.98