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Skip Plastics Ltd.

BSE: 532043 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Skip Plastics Ltd
NSE 05:30 | 01 Jan Skip Plastics Ltd

Skip Plastics Ltd. (SKIPPLASTICS) - Auditors Report

Company auditors report

SKIP PLASTICS LIMITED ANNUAL REPORT 2001-2002 AUDITOR'S REPORT To the members of Skip Plastics Limited We have audited the attached Balance Sheet of SKIP PLASTICS LIMITED as at 31st March, 2002 and also the Profit and Loss Account for the year 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. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and other Companies (Auditor's report) Order, 1988 issued by the Central Government of India in terms of sub- section (9A) of section 227 of the Companies Act, 1956, we enclose in the Annexure 2 a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to above, we report that: (i) We have audited all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; (ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books. (iii) In our opinion, the Balance Sheet and Profit and Loss Account dealt with this report comply with the accounting standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956; (v) On the basis of written representation received from the directors, as on 31st March, 2002, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2002 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes in Schedule 'T' thereon, and subject to note No.13 and 1 (v) (a) to give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India; a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and b) in the case of the Profit and Loss Account, of the loss for the year ended on that date. For T.M. Parikh & Co. Chartered Accountants T.M. Parikh Proprietor Place: Pune Date : 27th July 2002 ANNEXURE TO THE AUDITOR'S REPORT Referred to in Paragraph 1 of our report of even date, 1. The Company has maintained proper records showing full particulars including quantitative details and situation of all Fixed Assets. The Fixed Assets lave been physically verified by the management during the year, as per its system of physical verification of all its Fixed Assets once in every year. No material discrepancies have been noticed on such verification. In our opinion the frequency of verification is reasonable. 2. None of its Fixed Assets have been revalued during the year.. 3. The stock of Finished Goods, Work - in Progress, Spare Parts and Raw and Packing 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. The discrepancies noticed on verification between the physical stocks and the book records were not material and the same has been property dealt with in the books of accounts. 6. On the basis of our examination of stock records, We are of the opinion that 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. The Company has taken interest free unsecured loam from Directors and Shareholders, the terms and conditions of which are not prima facie prejudicial to the interest of the Company. 8. The Company has not granted any loans to Companies listed in the register maintained under Section 301 of the Companies Act, 1956 or to the Companies under the same management as defined under Section 307 (1B) of the Companies Act, 1956. 9. In respect of loans and advances in the nature of interest free loans given to Employees of the Company, the same are being generally repaid as stipulated. 10, In our opinion and according to information and explanations given to us, there is adequate internal control procedures commensurate with the size of the Company and the nature of its business with regards to purchase of stores, raw materials including components, Plant & Machinery, equipments and other assets and with regards to the Sale of Goods. 11. In our opinion and according to information & explanations given to us, there are no transactions for purchase of goods and materials and sale of goods, materials and services, with parties entered in the registers maintained under section 301 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, materials or services or prices at which transactions for similar goods, materials or services have been made with other parties. 12. 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 item so determined. 13. The Company has not accepted any deposit from public. 14. 1n our opinion, reasonable records have been maintained by the Company for the sale and disposal of realisable scrap. The Company has no By- Product. 15. In our opinion the Company has an adequate Internal Audit System commensurate with the size of the business. The Company has appointed an Internal Auditor and we have received a report from Internal Auditor. 16. We have been informed that no cost records are prescribed by the Central Government under Section 209(1) (d) of the Companies Act, 1956 for the products of the Company. 17. In our opinion and according to the information and explanations given to us, the Company is generally been regular in depositing Provident Fund and Employees State Insurance dues with the appropriate authority. 18. According to the information and explanations given to us, no undisputed amounts it, respect of Income Tax, Wealth Tax, Customs Duty and Excise Duty is outstanding, as at 31st March 2002. for the period of more than six months from the date they became payable. Except Sales Tax to the amount of Rs. 14.55 lacs & Excise Duty to the amount of Rs.16.24 Lacs is outstanding for the above period. 19. According to the Information and explanations given to us, no personal expenses employees or directors have been charged to the revenue account, other than those payable under under contractual obligations or in accordance with the generally accepted business practice. 20. The Company is a sick industrial company within the meanings of Clause (0) sub-section (1) of section 3 of Sick Industrial Companies (Special provisions) Act, 1985. 21. In respect of trading activities of the Company which form an insignificant part of its income, there were no damaged goods during the year. For T.M. Parikh & Co. Chartered Accountants T.M. Parikh Proprietor Place: Pune Date : 27th July 2002