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Rushabh Precision Bearings Ltd.

BSE: 531371 Sector: Engineering
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Rushabh Precision Bearings Ltd. (RUSHABEAR) - Auditors Report

Company auditors report

RUSHABH PRECISION BEARINGS LIMITED AUDITORS' REPORT TO THE MEMBERS OF RUSHABH PRECISION BEARINGS LIMITED We have audited the attached Balance Sheet of M/s. RUSHABH PRECISION BEARINGS LIMITED, as at 31st March, 1998 and also the Profit and Loss Account of the Company for the Year ended on that date, annexed thereto, and 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, we enclose in the annexure a statement on the matters specified in the paragraph 4 and 5 of the said order, on the basis of such checks of the books and records of the company as we considered appropriate and the informations and explanations given to us during the course of audit. 2. Further to our comments in the annexure referred to in the paragraph (1) above: (A) We have obtained all the information and explanation 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 law have been kept by the company so far as appears from our examinations of the books (C) In our opinion and to the best of our information and according to the explanation 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 subject to: (i) Due to heavy recession prevailing in the bearing industry the company has not provided interest on working capital loan from Industrial Development Bank of India, Cash Credit Limit from Union Bank of India, Hire Purchase Finance from Gujarat State Finance Corporation as the company has made application to these Institutions for waiver of interest and for grant of Concessional rate of Interest as per R.B.I. guidelines. (ii) No Tax has been deducted for interest on Bill Discounting facility and Security Deposits from Licencee as the company is advised by leading Tax Consultant that no tax is deducted at sources on such interest payments. (a) In the case of the Balance Sheet, of the State of affairs of the company as at 31st March, 1998 and (b) In the case of the Profit and Loss Account, of the Profit of the Company for the period ended on that date. For S.M.BHAT & ASSOCIATES Chartered Accountants (S.M.BHAT) Proprietor ANNEXURE TO THE AUDITOR'S REPORT Referred to in paragraph 1 of the our Report of even date on the accounts of RUSHABH PRECISION BEARINGS LIMITED for the year ended March 31,1998. 1. The Company has maintained proper records showing full particulars including quantitative details and situation of the fixed assets. The Fixed Assets have been physically verified by the management during the year and no significant discrepancy was noticed on such verification. 2. None of the Fixed Assets have been revalued during the year. 3. The stocks of finished goods, stores, spare parts and raw materials have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. 4. The procedure of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. 5. No material discrepancies have been noticed on physical verification of stocks as compared to books/ record. 6. On the basis of our examination of stock records, we are of the opinion that 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 preceding year. 7. According to information and explanations given to us, the company has taken loans from Directors and Companies in which the Directors are interested and in our opinion the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the Company. 8. The Company has not given any loan to companies in which Directors are interested. 9. In respect of other loans given the Company is recovering the Principal amount and interest wherever stipulated, regularly. 10. In our opinion and according to the information and explanations given to us, there are adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to purchases of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to the sale of goods. 11. As explained to us, the company has a regular procedure for the determination of 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. 12. In our opinion and according to the information and explanations, given to us, the company has not accepted fixed deposits within the meaning of section 58 A of the Companies Act, 1956 and the Companies (Acceptance of Deposits), Rules 1975. 13. In our opinion reasonable records have been maintained by the Company for the sale and disposal of realisable by products and scraps if any. 14. Though the company does not have an Internal Auditor, in our opinion there is adequate internal check and control commensurate with the size of the organisation. 15. We have broadly reviewed the books of account 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 are of the opinion that prima facie the prescribed accounts and records have been maintained and the cost statements are being made up. We have not, however, made a detailed examination of the records, with a view to determining whether they are accurate or complete 16. According to the records of the company the Provident Fund and Employees State Insurance dues have not been regularly deposited during the year with the appropriate authorities. 17. According to the information and explanations given to us the undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty outstanding as at 31st. March, 1998 for a period of more than six months from the date they became payable are as under: a) Tax deducted at Source: Rs.2,62,688.00 (excluding interest) b) West Bengal Sales Tax : Rs. 6,951.00 (excluding interest) 18. According to the information and explanations given to us, no personal expenses of employees or directors have been charged to revenue account, other than those payable under contractual obligations or in accordance with generally accepted business practice. 19. The company is not a sick industrial company within the meaning of clause (0) of sub-section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act. 1985. 20. In respect of trading activities no damaged goods have been determined by the company during the year. For S.M.BHAT & ASSOCIATES Chartered Accountants (S.M.BHAT) Proprietor Place: Mumbai Date : 8th October,1998.