SHIVANI VANASPATI LIMITED
ANNUAL REPORT 2001-2002
SAMANTRY & CO.
DAS SAHI, BISINABAR
Ph. No.: 0671-314343
SHIVANI VANASPATI LTD.
We have audited the attached Balance Sheet of SHIVANI VANASPATI LTD.,
Kapursingh, Po - Oranda, Dist - Cuttack as at 30th June, 2002 and the
annexed Profit & Loss Account for the year ended on that date signed by us
under reference to this report.
WE REPORT AS FOLLOWS:-
A. We conduct 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 statement
are free to material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosure in the financial
statement. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
B. As required by Manufacturing and other Companies (Auditor's Report)
Order, 1988 issued by Company Law Board in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in Annexure a statement of matters
specified in the said order.
C. The Attention of the members is also drawn to the following:
1. Note No -10 regarding import of Raw Materials through RSIL.
2. Note No -11 Relating to Provisions of Rs. 140 Lakhs made in accounts in
respect of supply of Raw Materials by RSIL.
3. Note No -15 Contingent Liability in respect of Sales Tax amounting Rs.
D. Further to our comments in the Annexure referred to in paragraph "B" and
"C" above we report that:
1. We have obtained all information and explanations which to be best of
our knowledge and belief were necessary for the purpose of our audit.
2. In our opinion proper books of accounts as required by law have been
kept by the Company so as far appears from our examination of those books.
3. The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of account.
4. In our opinion, the Balance Sheet and Profit & Loss Account dealt with
by this report are in compliance with accounting standard referred to in
Section 211(3C) of the Companies Act, 1956.
5. According to the information and explanations given to us, we report
that none of the Directors is disqualified as on 30th June, 2002 from being
appointed as a Director in terms of clause (g) of sub-section(1) of
section-274 of the Companies Act, 1956.
6. In our opinion and to the best our information and according to the
explanations given to us, the said Balance Sheet & the Profit & Loss
Account together with the notes there on, give the information as required
by the Companies Act, 1956 in the manner so required and give a true and
i) In the case of the Balance Sheet of the State of Affairs of the Company
as at 30th June, 2002.
ii) In case of Profit & Loss Account, of the Loss incurred by the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Statement referred to the Para-B of our report of even date)
Observations on matters specified in Para-4 & 5 of Manufacturing and other
Companies (Auditors Report) Order, 1988.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. The Company
has regular programme of physical verification of Fixed Assets, which in
our opinion is reasonable having regard to size of the Company and the
nature of its assets. Accordingly, the physical verification of part of the
Fixed Assets have been carried out by the management during the year and no
material discrepancies have been noticed on such verification.
2. None of the Fixed Assets of the Company have been revalued during the
3. The stock of finished goods, spare parts and raw materials have been
physically verified by the management at reasonable interval. In our
opinion, the frequency of verification is reasonable.
4. The procedure of the physical verification of stocks followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. The discrepancies between the physical stock and book stocks were not
material and dealt with properly in the books of account.
6. In our opinion, the valuation of stock of finished goods, stores, work-
in-progress, spare parts and raw materials has been fair and proper in
accordance with the normally accepted accounting principles.
7. The company has not taken any loans, secured or unsecured, from
Companies, Firms or other parties listed in the register maintained u/s.
301 of the Companies Act, 1956 and/or from the companies under the same
management as defined under sub-section(1B) of Section 370 of Companies
Act, 1956 except receiving loans from promoters/directors. However, the
same is interest free and hence not detrimental to the interest of the
8. The company has not granted any loans or advances in nature of loans
secured or unsecured to companies, firms or other parties listed in the
register maintained tinder Section 301 of the Companies Act 1956 and/or to
the companies under the same management as defined under sub-section(1B) of
section 370 of the Companies Act, 1956.
9. The company has not given any loan or advances in nature of the loan
except advances to suppliers of raw materials and employees which are being
adjusted regularly as per stipulation.
10. In our opinion there is adequate internal control procedure
commensurate with the size of the company and the nature of its business,
for purchase of stores, raw materials, plant & machinery, equipments and
other assets and for the sale of goods.
11. According to the information and explanations given to us, there were
no purchase of goods, materials, and services, exceeding Rs.50,000/- in
pursuance of the contracts or arrangements in which Directors of the
company are interested required to be maintained under section 301 of the
Companies Act, 1956.
12. As explained to us, the company has reasonable system of determination
of unserviceable or damaged goods, raw materials and finished goods. The
company has confirmed that there were no such materials requiring provision
at the end of the year.
13. The Company has not accepted any deposits from the public within the
meaning of Section 58A of the Companies Act, 1956.
14. The company has not generated any scrap during the year. However,
adequate records are maintained for sale and disposal of by-products.
15. It is necessary that the books of account should be maintained by the
company in respect of the manufacture of vanaspati and other by-products
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 in our
opinion the prescribed accounts are maintained, though, we have not made a
detailed examination of such accounts and records.
16. The company is contributing towards E.P.F. W.E.F. 6.7.2000. The arrear
amount of Rs.49,510/- for the period from 6th July, 2000 to 30th November,
2000-has remained unpaid as on 30.6.2002. Further E.P.F. relating for the
period from January, 2002 to July, 2002 amounting to Rs.1,35,662/- is also
remaining unpaid as on 30.6.2002. As explained to us the arrear amount is
being paid in installments in current year. As on now the E.S.I. Act is not
applicable to the company.
17. There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax and Customs Duty out standing as at 30.6.2002 for a period of
more than six months from the date they became payable except Sales Tax,
the matter of which pending with the Government of Orissa and the Hon'ble
High Court of Orissa.
18. In our opinion and according to the information and explanations given
to us, no personal expenses have been charged to revenue account, other
than those payable under contractual obligation or in accordance with the
generally accepted business practice.
19. The company is having suitable internal control system in commensurate
with its nature and size of business.
20. Insurance Claim logged by the company with New India Assurance Co. Ltd.
against damage/loss of Fixed Assets and stocks due to Super Cyclone
occurred on October, 1999 amounting to Rs.146.35 Lakhs is yet to be
21. The Company has not carried on any trading activity during the year and
hence, the information relating to damaged goods need not be furnished
except Crude Palm Oil of 895.275 MT which has been otherwise utilized by
the supplier Ruchi Soya Industries Ltd. the details of which are not
22. The Company is a Sick Company as per meaning of the Sick Industrial
Companies (Special Provisions) Act, 1985 under section 3(1)(O). The Board
of Directors has already made a reference to BIFR, New Delhi u/s. 15(1) of
SICA and the matter is subjudice.
SAMANTRY & CO.
Place: Cuttak C.S. Sanmantry
Date : 31.08.2002 Chartered Accountant