ANNUAL REPORT 1999
SHETH PLASTOMERS LIMITED
We have audited the Balance Sheet of SHETH PLASTOMERS LIMITED as at 30th
June,1999 and the Profit and loss Account of the said Company for the year
ended on that date annexed thereto.
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. We enclose in the Annexure a statement on the
matters specified in the paragraphs 4 and 5 to the extent applicable of the
2. Further to our comments in the Annexure referred to above we report
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 account as required by law have been kept
by the Company as it appears from our examination of such books.
c) The Balance Sheet and Profit & loss Account referred to in this report
are in agreement with the books of account.
d) In our opinion the Profit & loss Account and Balance Sheet comply with
the requirement of the Accounting Standards referred to in sub-section (3C)
of Section 211 of the Companies Act,1956.
e) In our opinion and to the best of our information and according to the
explanations given to us Balance Sheet and Profit and Loss Account read
together with the Notes thereon give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
i) In the case of Balance Sheet of the state of affairs of the Company as
at 31st March,1999.
ii) In the case of Profit and loss Account of the Profit of the Company for
the year ended on that date.
For SINGRODIA GOYAL & CO.
DATE : NOVEMBER 3,1999.
ANNEXURE TO THE AUDITOR'S REPORT
ANNEXURE referred to in Paragraph 1 of our report of even date on the
accounts of SHETH PLASTOMERS LIMITED for the year ended 30th June,1999.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. These fixed
assets of the Company have been physically verified by the management at
reasonable intervals and no material discrepancies between the book records
and the physical assets have been noticed.
2. None of the fixed assets have been revalued during the year.
3. As explained to us the stock of finished goods work-in-progress, stores,
spares parts and raw materials have been physically verified by the
management during the year. In our opinion the frequency of the
verification is reasonable.
4. In our opinion and according to the information and explanations given
to us, the procedures of physical verifications of stocks followed by the
management were found reasonable and adequate in relation to the size of
the Company and the nature of its business.
5. As explained to us, discrepancies noted on verification between the
physical stocks and the book records were not materials in relation to the
operations of the Company and the same have been properly dealt with in the
books of accounts.
6. In our opinion the valuation of stock is fair and proper in accordance
with the normally accepted principles. The basis of valuation of stock as
in the preceeding year.
7. The Company has taken interest free secured loan from Companies, firms
and other parties listed in the register maintained under section 301 of
the Companies Act,1956. However there are no loan from Companies under the
same management as defined under sub-section (1B) of section 370 of the
Companies Act,1956. The rate of interest and other terms and conditions are
not prima facie prejudicial to the interest of the Company.
8. The Company has not granted any loans, secured or unsecured to the
Companies, firms and other parties listed in the register maintained under
Section 301 or to the Companies under the same management as defined under
Section 370 (1B) of the Companies Act,1956 during the year. However
advances to Directors are carried forward from earlier years. The rate of
interest and other terms and conditions are not prima facie prejudicial to
the interest of the Company.
9. The principal amount and interest whereever applicable thereon on
respect of loans and /or advances in the nature of loan given to the
employees and bodies corporate are generally being recovered as stipulated.
10. In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its business
for purchase of raw material, stores, components,plant and machinery,
equipment and other similar assets and for the sale of goods.
11. In our opinion and according to the information and explanations given
to us the transactions of purchase and sale of goods and materials made in
pursuance of contract or arrangement entered in the Register maintained
under Section 301 of the Companies Act,1956 and aggregating to Rs 50,000/-
(Rupees Fifty Thousands Only) or more in respect of each party have been
made at prices which are reasonable and fair having regard to prevailing
market prices for such goods and materials.
12. As explained to us the Company has not determined any unserviceable or
damaged stores, raw material and finished goods and hence no provisions
have been made in the accounts.
13. The Company has not accepted deposits from public and therefore the
directives issued by the Reserve Bank of India and provisions of Section
58A of the Companies Act,1956 are not applicable.
14. In our opinion reasonable records have been maintained by the Company
for the sale and disposal of realisable scrap, where applicable and
significant. As explained to us the Company has no by products.
15. Company does not have formal Internal Audit Departments as such but its
financial and internal checks ensures proper recording of financial
16. We are informed by the Company that the Central Department as such
has not prescribed maintenance of cost records under section 209(1)(d) of
the Companies Act,1956 for the products of the Company.
17. As explained to us provisions of Provident Fund Act and Employees State
Insurance Act,1948 are not applicable to the Company.
18. There was no amount outstanding as on 30th June,1999 in respect of
undisputed income-tax, customs duty and excise duty which were due for more
than six months from the date they became payable.
19. On the basis of examination of (i) the books of account (ii) other
records(iii) the explanations given to us our inquiries, no personal
expenses, other than expenses under service contract obligations with the
Company's employees and/or accepted business practices have been charged ot
20. The Company is not a Sick Industrial company within the meaning of
Section 3(1) (O) of the Sick Industrial Companies (Special Provisions)
21. In respect of a trading activities, we are informed that the Company
does not have damaged goods lying with it at the end of the year. Therefore
no provisions for any loss is required to be made in the accounts.
For SINGRODIA GOYAL & CO.
DATE : NOVEMBER 3,1999.