SUBHLAXMI EXPORTS LIMITED
The Members of
SUBHLAXMI EXPORTS LIMITED
We have audited the attached Balance Sheet of SUBHLAXMI EXPORTS LIMITED as
at 31st March, 1999 and the Profit & Loss account of the Company for the
year ended on that date annexed thereto and report that:
A. 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 and on the basis of such checks of books and
records as we considered appropriate and according to the information and
explanation given to us we report that:
1. The Company is in process of preparing proper records showing full
particulars, including quantitative details and situation of all fixed
assets. As per information given to us the all the fixed assets have been
physically verified by the Management. No 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, Work in Process, Stores and Spare parts and
Raw Materials have been physically verified by the management at reasonable
intervals during the year
4. In our opinion, the procedures 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 physical verification of stocks as compared
to book records were not material and have been properly dealt with in the
books of account.
6. In our opinion, on the basis of our examination of the stock records
produced before us the valuation of stock is fair and proper and is in
accordance with the normally accepted accounting principles and is on the
same basis as in the preceding year.
7. The Company has not taken any loans secured or unsecured from the
Companies, firms or other parties listed in the Register maintained under
section 301 of the Companies Act 1956 and /or from Companies under the same
management as defined under sub section (1 B) of section 370 of the
Companies Act, 1956.
8. According to the information and explanations given to us, the Company
has not granted any loans to Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act 1956
9. The principal amounts and/or interests wherever applicable, in respect
of Loans and advances in the nature of loans given by Company to the
employees and/ or others have generally been recovered as per stipulations.
10. In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the Company with regard to purchase of raw materials, Fixed assets
and for sale of goods.
11. In our opinion, the transactions of purchase of goods and materials and
sales of goods and materials made in the pursuance of 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 the prevailing market prices for such goods and materials
or the prices at which transactions for similar goods and materials have
been made with other parties.
12. Unserviceable or damaged stock or raw material are determined and
provision of loss, wherever necessary, has been made in the accounts.
13 The company has not accepted any deposits, under the provisions of
Section 58A of the Companies Act, 1956.
14. The company has an in-house internal audit system which is commensurate
with its size and nature of the business.
15. As explained, the requirement of maintenance of Cost records under
section 209 (1) (d) of the Companies Act, 1956 is not applicable to the
16. As explained, the provisions of Employees Provident Fund Act and other
allied Acts are not applicable to the Company .
17. There is no undisputed amounts payable in respect of Income Tax, Wealth
Tax, Sales Tax etc., as at 31 st March 1999 for a period of more than 6
months from the date they become applicable.
18. According to the Information and explanation given to us no personal
expenses have been charged to revenue account.
19 The Company is not a sick company within the meaning of clause (O) of
the Section 3(1) of the Sick Industrial Companies (Special Provisions) Act,
20. Payments against supplies from small scale and ancillary undertakings
are made in accordance with the agreed terms where ever applicable and to
the extent ascertained from available information, there was no amount
overdue as on 31st March 1999.
21. In respect of Trading activities of the Company there are no damaged
goods for which provisions for loss is required at the year-end.
Further to above,
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.
The Balance Sheet and Profit & Loss Account dealt with by this report are
in agreement with the books of accounts.
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.
In our opinion and to best of our information and according to the
explanations given to us together with significant accounting policies and
notes in schedule N given in the prescribed manner the information required
by the Companies Act, 1956, give a true and fair view:
i) In the case of Balance Sheet, of state of affairs of the Company as at
31st March 1999;
ii) In the case of Profit & Loss account, of the Profit for the Year ended
on that date
For RAJENDRA N. AGARWAL & CO.
Place: Mumbai. R. P. AGARWAL
Date: 31st May, 1999 PROPRIETOR.