SUVARNA AQUA FARM EXPORTS LIMITED
The Members of
M/s Suvarna Aqua Farm & Exports Limited.
We have audited the attached Balance Sheet of M/s SUVARNA AQUA FARM &
EXPORTS LIMITED as at 31st March '98 and the Profit and Loss Account for
the year ended on that date annexed thereto and report that:
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 paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to the paragraph 1
above, we state that:
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 the law have been
kept by the Company so far as appears from our examination of such books.
c) The Balance Sheet and Profit and Loss Account referred to in this report
are in agreement with the books of account.
d) In our opinion and to the best of our information and according to the
explanations given to us, the said Balance Sheet and the 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
In so far as it relates to the Balance Sheet, of the state of affairs of
the Company as at 31st March, 1998.
In so far as it relates to the Profit and Loss account of the PROFIT of the
Company for the year ended on that date.
for KARVY & COMPANY,
(K. AJAY KUMAR)
DATE : 23.04.1998
I. The company is maintaining proper records showing full particulars
including quantitative details and situation of all its fixed assets. As
per the phased programme designed by the company the Fixed Assets have been
physically verified by the management at reasonable intervals. No material
discrepancies have been noticed on such verification.
II. None of the fixed assets have been revalued during the year.
III. The stocks of finished goods, spare parts and raw materials have been
physically verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
IV. The procedures of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
V. The discrepancies noticed on verification between the physical stocks
and the book records were not material.
Vl. On the basis of our examination of stock records, we are of the opinion
that the valuation of,stocks is fair and proper in accordance with the
normally accepted accounting principles, and is on the same basis as in the
Vll. The company has not taken any loans secured or unsecured from
companies, firms or other parties listed in the registers maintained under
Section 301 of the companies Act, 1956. As explained to us, there are no
companies under the same management as defined under sub-section (1B) of
Section 370 of the Companies Act, 1956.
Vlll. The company has not granted any loans to companies, firms or other
parties as listed in the register maintained under Section 301 of the
Companies Act, 1956. As explained to us, there are no companies under the
same management within the meaning of Section 370 (1B) of the Companies
IX. The company has not given any loans or advances in the nature of loans
during the year.
X. 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 and the nature of its business with regard to purchases
of stores, raw materials including components, plant and machinery,
equipment and other assets and with regard to the sale of goods.
Xl. In our opinion, and according to the information and explanations given
to us, the transactions of purchase of goods and materials and sale of
goods, materials and services, made in pursuance of contracts or
arrangements 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 where such
market prices are available with the company or the prices at which
transactions for similar goods, materials or services have been made with
Xll. Unserviceable or damaged stores, raw materials or finished goods, are
determined and provision for the loss has been made in the accounts.
XIII. The company has not accepted any deposits from the public under
section 58A of the Companies Act, 1956.
XIV. The company has no by-products and it has maintained reasonable
records for the sale and disposal of realisable scrap.
XV. In our opinion, the company has an Internal Audit Department
commensurate with the size and nature of its business.
XVI. In respect of this company, maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956.
XVII. As explained to us, the provisions of Employees Provident Fund and
other miscellaneous provisions Act and the Employees State Insurance Act
are not applicable to the company for the time being.
XVIII. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-tax, Wealth-tax, Sales-tax,
Customs duty and Excise duty were outstanding, as at 31-3-1998 for a period
of more than six months from the date they became payable.
XIX. According to the information and explanations given to us, no personal
expenses of employees or directors have been charged to revenue account.
XX. The company has become a sick industrial company as on 31-3-98 within
the meaning of clause (O) of sub-section (1) of section 3 of the Sick
Industrial Companies (Special Provisions) Act, 1985.
for KARVY & COMPANY,
(K. AJAY KUMAR)
DATE : 23.04.1998