ANNUAL REPORT 1998-99
SHAKTI RODS & WIRES LIMITED
Shreeji Vihar, Bldg. No. 2,
Opp. Telephone Exchange,
S. V. Road, Kandivali (West)
Mumbai - 400 067.
The Members of
Shakti Roads and Wires Ltd.
We have audited the attached Balance Sheet of SHAKTI RODS AND WIRES LIMITED
as at 31st December, 1998 and also the Profit & Loss Account of the company
for the eighteen months period ended on the that date annexed there to and
report as under:
We have obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of audit,
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 such books.
The excise records of the company could not be vouched and compared with
the existing sale and purchase records, as the same is seized and yet not
fully released by the department. The Balance relates to excise has been
provided and certified by-the Management of the company. Except this the
Balance Sheet and Profit and loss Account dealt with by this report are in
agreement with the books of account of the company.
in our opinion and to the best of our information and according to the
explanations given to us the said accounts read with notes thereto give the
information required by the company Act, 1956, in the manner so required
and present a true and fair view:- (a) In the case of Balance Sheet of the
state of the affairs of the company as at 31st December, 1998; AN D
(b) In the case of Profit and Loss Account of the LOSS 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, we further report that:
(1) As explained to us the records of the quantitative details and
situation of fixed assets are yet to be updated. The fixed assets were
physically verified by the management with available records at reasonable
intervals. No material descrepancies were noticed in respect of assets
(2) None of the fixed assets have been revalued during the year.
(3) The stocks of finished goods, stores, spare parts and raw materials are
physically verified by the management at the year end. in our opinion the
frequency of such verification is reasonable.
(4) in our opinion according to the information and explanations given to
us the procedure of physical verification of stock followed by the
management appears to be reasonable and adequate in relation to the-size of
the company and nature of its business.
(5) As informed to us the discrepancies noticed by the management between
physical stock and record as verified and compiled by the management were
(6) In our opinion the valuation of stock is fair and proper and in
accordance with the normally accepted accounting principles and is on the
same basis as in the preceeding year.
(7) The company has not taken any loans, secured or unsecured from
companies or other parties listed in the Register maintained under section
301 of the companies Act, 1956. There are no companies as defined under sub
section (1 B) of section 370 of the said Act.
(8) The company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in Register maintained under
section 301 of the companies Act, 1956.There are no companies under the
same management as defined under sub section (1 B) of section 370 of the
(9) In respect of loans and advances in the nature of loans given by the
company, the parties have repaid the principal amount as stipulated and
have also been regular in payment of interest and terms and condition of
such loans are not prima facie prejudicial to the interest of the company.
(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 regards to the
purchase of stores, raw materials including components, plant and
machinery, equipment and other assets and with regards to the sale of
(11) According to the information and explanation given to us, the
transaction of purchase and sale of goods and materials made in persuance
ot contracts or arrangements 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 respect of each party have been made at prices
which are reasonable having regard to prevailing market prices for such
goods and materials or at the prices at which transaction for similar goods
and materials have been made with other parties.
(12) As explained to us, the company has regular procedure for the
determination of unserviceable or damaged stores, raw materials, and
finished goods, Adequate provisions has been made in the accounts for loss
arising on the items so determined.
(13) In our opinion and according to the information and explanations given
to us the provisions of section 58A of the companies Act,1956 and the
companies (Acceptance of Deposits) Rules 1975 have been complied with.
(14) In our opinion reasonable records are maintained by the company for
the sale of realisable scrap and by-products.
(15) A firm of chartered Accountants were appointed as Internal Auditors
during the year. In our opinion the internal system is commensurate with
its size and nature of the business.
(16) As informed and explained to us the provisions relating to section 209
(1)(d) of the companies Act, 1956 are not applicable to the company.
(17) As informed to us the Employees Provident Fund Act,1952 was applicable
to the company from 1st April 1997 and all dues have been deposited by the
(18) There are no undisputed amounts payable in respect of income tax,
wealth tax, sale tax, and custom duty except excise duty as at the last day
of the financial year for a period of more than six months from the date on
which they become payable.
(19) According to the information and explanations given to us and as per
books and records of the company examined by us no personal expenses have
been charged to revenue account other than those payable under contractual
obligations or in accordance with generally accepted business practice.
(20) The company is a sick Industrial company with in the meaning of clause
(0) of sub section 1 of section 3 of sick industrial Companies (Special
Provisions) Act, 1985.
(21) In respect of the Company's trading activity, we are informed that
there are no damaged stock.
For S. CHANDULAL & COMPANY
Mumbai. Date 3rd March 2000.