SHREE YAAX PHARMA AND COSMETICS LIMITED
ANNUAL REPORT 2002-2003
The Shareholders of
M/s. Shree Yaax Pharma and Cosmetics Limited
We have audited the attached Balance Sheet of SHREE YAAX PHARMA AND
COSMETICS LIMITED, Ahmedabad as at 31st March, 2003 and the profit and loss
account for the year ended on that date and we report as under.
1. We have audited the attached Balance Sheet of SHREE YAAX PHARMA AND
COSMETICS LIMITED, Ahmedabad as at 31st March, 2003 and also the Profit and
Loss Account for the period ended on that date annexed thereto. These
financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation, We believe that our audit
provides reasonable basis for our opinion.
3. 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;
4. 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 those books;
5. In our opinion, the Profit and Loss account and Balance Sheet comply
with the Accounting Standard referred to in sub-section 3(C) of section 211
of the Companies Act, 1956;
6. The Balance Sheet and the Profit and Loss account dealt with by this
report are in agreement with the books of accounts;
7. On the basis of information given to us and records presented before us,
no director is disqualified from being appointed as a director of the
company under clause (g) of sub-section(1) of section 274 of the Companies
8. In our opinion and to the best of our information and according to the
explanation given to us, the said accounts, referred to above, and read
together with the schedules and other notes annexed to the accounts give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view:
(a) in the case of Balance Sheet, of the state of affairs of the company as
at 31st March, 2003; and
(b) in the case of Profit and Loss account, of the Profits for the year
ended on that date.
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 such checks as we consider
appropriate, we further state that:
1. The company is maintaining proper records to show full particulars
including quantitative details and situation of fixed assets. The
management has physically verified most of the fixed assets of the company.
As informed to us, no material discrepancies were noticed on such
2. None of the fixed assets has been revalued during the year.
3. As informed to us, the stock of raw material and finished goods held by
the company, have been physically verified by the management during the
year. In our opinion, the frequency of verification is reasonable.
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. As informed to us, there were no discrepancies noticed on physical
verification of stocks.
6. In our opinion, the valuation of stock is fair and proper in accordance
with the normally accepted accounting principles.
7. As per the information given to us, during the year under review, the
company has not taken any loans, secured/unsecured from
companies/firms/parties listed in register maintained under section 301 of
the Companies Act, 1956 and as explained to us, there are no companies
under the same management within the meaning of section 370(1B) of the
Companies Act, 1956.
8. As per the information given to us, during the year under review, the
company has not granted any loans, secured/unsecured, to
companies/firms/parties listed in the register maintained under section 301
of the Companies Act, 1956 and as explained to us, there are no companies
under the same management within meaning of section 370(1B) of the
Companies Act, 1956.
9. In respect of Loans and Advances of the nature of loans given by the
company, parties have not generally repaid the principal amount as
stipulated and have been regular in payment of interest, wherever
10. On the basis of checks carried out during the course of audit and as
per explanation given to us, there is adequate internal control procedure
commensurate with the size of the company and nature of its business.
11. According to the information and explanation given to us, the
transaction for the purchases during the year of goods and materials or
components and sales of goods and services made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of the
Companies Act, 1956 as aggregating during the year Rs.50000 or more in
respect of each of the firms or companies or other parties in which
directors are interested, have been made at the prices which are reasonable
having regard to the prevailing market prices for such goods.
12. There are no unserviceable or damaged stores, raw materials or finished
goods items for the year under review,
13. As per the information given to us and on the basis of records
presented before us, the company has not accepted any public deposits
during the year.
14. The company has no realizable by-products, and/or scraps during the
year under review.
15. According to the information and explanations given to us, there is
adequate internal audit system corresponding to size and nature of business
of the company.
16. As informed to us, there are no cost records prescribed by the Central
Government in pursuant to section 209(1)(d) of the Companies Act, 1956.
17. As per the information and explanation given to us, provident fund and
employees state insurance payments are not applicable to the company.
18. According to the information and explanation given to us, there were no
undisputed amounts payable in respect of income tax, wealth tax, sales tax,
customs duty and excise duty which have remained outstanding as at 31st
March, 2003 for a period of more than six months from the date they become
19. According to the information and explanation given to us, and as
certified by the management, personal expenses have not been charged to
revenue account other than payable under contractual obligations or in
accordance with normal business practice.
20. The company is not sick industrial company within the meaning of clause
(o) of sub-section 3 of the Sick Industrial companies (Special Provision)
Act, 1985 (1 of 1986).
For NAIMISH K. SHAH & CO.
Date : 04/09/2003 NAMISH K. SHAH
Place: Ahmedabad Proprietor