ANNUAL REPORT 1998-99
SHREE NEELACHAL LABORATORIES LIMITED,
AUDITORS' REPORT
TO
THE MEMBERS
SHREE NEELACHAL LABORATORIES LIMITED,
We have audited the attached BALANCE SHEET of SHREE NEELACHAL LABORATORIES
LIMITED at 31st March, 1999 and we report that :
1. As required by the Manufacturing and other Companies (Auditor's Report )
order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of
the Companies Act, 1956 on the basis on the basis of such checks of the
books and records as we consider appropriate and the information and
explanations given to us during the course of Audit we annex hereto a
Statement on the matter specified in paragraph 4 and 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 our audit.
b. In our opinion proper books of Accounts as required by law have been
kept by the Company so far as it appears from our examination of these
books.
c. The Balance Sheet and Profit & Loss Account dealt with this report are
in agreement with the books of account.
d. In our opinion, the Balance Sheet complies with the mandatory accounting
standards referred to in section 211 (3C) of the Companies Act, 1956.
e. In our opinion and to the best of our information and according to the
explanations furnished to us, subject ot Accounting Policy (E) (ii)
relating to interest on Allotment Money in arrears being accounted for by
the Company as and when received and Note No. 5 of Notes forming part of
Accounts regarding non provision of gratuity liability and the accounts
read inconjunction 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 the case of Balance Sheet the State of Affairs of the company as at
31st March, 1999 and
ii. In the case of Profit and Loss Account of the Loss of the Company for
the year ended on that date.
For AMARKANTA & ASSOCIATES
Chartered Accountants
Place : Berhampur. (A. K. PADHY)
Date : 6.9.1999 Partner
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDIT REPORT OF EVEN DATE
I. The Company has generally maintained records of Fixed Assets showing
full particulars including quantitative details and situation of Fixed
Assets. The assets have been physically verified by the Management at
reasonable intervals and no material discrepancies were noticed on such
verification. As regards Capital Work-In-Progress, the same will be
verified by the management on completion of assets.
II. None of the Fixed Assets have been re-valued during the year.
II. The Stocks of Stores, Spare Parts, Finished Goods and Raw Materials of
the Company have been physically verified by the management during the year
at reasonable intervals.
IV. The procedures of physical verification of followed by the management
are reasonable and adequate in relation to the size of the Company and the
nature of its Business.
V. The discrepancies noticed on physical verification Stock as compared to
Books and Records, which in our opinion were not material, have been
properly dealt within the Books of Accounts.
VI. In our opinion and on the basis of our examination, the valuation of
stocks is fair and proper in accordance with the normally accepted
accounting principles during the year under review.
VII. The Company has not taken advances in the nature of loan from parties
listed in the registers maintained under section 310 and 370 (1C) of the
Companies Act, 1956.
VIII. The Company has given interest free loans and advances in the nature
of loans to parties listed in the register maintained under section 310 of
the Companies Act, 1956.
IX. The Company has given loans and advances in the nature of interest free
loans and advance to the employees who have been repaying the principal as
stipulated/ restipulated. In respect of other Loans and Advances in the
nature of loans given by the company, no stipulations have been made
regarding recovery.
X. 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 the nature of its Business with regard to purchase
of Stock, Row Materials, Components, Plant and Machinery, Equipment and
other assets.
XI. In the opinion and according to the information and explanations given
to us, the transactions of purchase of materials and sale of goods and
services, made in pursuance of Contracts or arrangements entered in the
Registers maintained under section 301 of the Companies Act, 1956 and
aggregating during the year to Rs. 50,000/- (Rupees Fifty Thousand only) or
more in respect of each party, have been made at prices which are
responsible having regard to prevailing market price at which transaction
for similar goods, materials or services have been made with other parties.
XII. It has been explained to us, the unserviceable or damaged stores, Raw
Materials and finished goods have been determined and have been properly
dealt with in the accounts of the Company. Adequate provision has been made
in the accounts for the loss arising on the items so determined.
XIII. According to the information and explanations given to us, the
Company has not accepted any deposits covered by the provision of Section
58 A of the Companies Act, 1956.
XIV. The Company has no by-product and as per the information and
explanations given to us, by the management reasonable records have been
maintained for sale and disposal of the realisable scrap.
XV. In our opinion and according to the information and explanations given
to us, the Company has not appointed/ developed an internal audit system
during the year under review.
XIV. We broadly reviewed, without carrying out detailed examinations of
the books of the accounts maintained by the Company pursuant to the order
made by the central government for the maintenance of Cost records under
the Section 209 (1) (d) of the Companies Act, 1956 and report that the
Company as started maintaining such a records but as at the date of the
review, they were not completed.
XVII. In our opinion and according to the information and explanations
given to us, the provided fund act is not applicable to the Company at this
stage.
XVIII. According to the information and explanations given to us there are
no undisputed amounts payable in respect of customs duty and excise duty
which are outstanding for a period of more than six months from the date
they become payable.
XIX. According to the information and explanations given to us, no personal
expenses of the employees or Directors have been charged revenue account
other than those payable under contractual obligations and in accordance
with generally accepted business practice.
XX. The Company is not a sick industrial Company within the meaning of
clause (O) of sub section (1) of Section 3 of the Sick Industrial Company
(Special Provision ) Act, 1985.
For AMARKANTA & ASSOCIATES
Chartered Accountants
Place : Berhampur. (A. K. PADHY)
Date : 6.9.1999 Partner
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