ANNUAL REPORT 1999-2000
TANFAC INDUSTRIES LIMITED
AUDITORS' REPORT TO THE MEMBERS
We have audited the Balance Sheet of TANFAC INDUSTRIES LIMITED as at 31st
March, 2000 and the Profit and Loss Account of the said Company for the
year ended on that date, both attached hereto and report that:
1. In our opinion and to the best of our information and according to the
explanations given to us the said accounts, subject to
i) Note No. 4 of "Schedule 19" regarding change in the method of valuation
of closing Inventories to comply with the mandatory Accounting standard - 2
as a result of which the Profit for the year as well as the Current Assets
are stated higher to the tune of Rs. 44.82 lacs.
ii) Note No. 5 regarding non provision of Excise duty on closing stock of
finished goods to the tune of Rs. 104.90 lacs.
and read with other Notes thereon give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
(a) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March, 2000 and
(b) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date.
2. We have obtained all the information and explanations which to the best
of our knowledge and belief, were necessary for the purposes of our audit.
3. In our opinion, proper books of account as required by the Companies
Act, 1956 have been kept by the Company so far as appears from our
examination of those books.
4. The Balance Sheet and Profit and Loss Account are in agreement with the
books of Account and comply with the Accounting Standards referred to in
subsection (3C) of Section 211 of the Companies Act, 1956 to the extent
5. As required by the Manufacturing and Other Companies (Auditor's Report)
Order 1988 issued by the Central Government and on the basis of such checks
as we considered appropriate, we further state that:
(i) The Company has maintained proper records to show full particulars
including quantitative details and situation of its Fixed Assets. The Fixed
Assets have been physically verified by the Management wherever possible at
the close of the year as confirmed by the Management. No material
discrepancies have come to notice on such physical verification.
(ii) No revaluation of Fixed Assets of the Company has been made during the
(iii) The Stock of finished and other goods, spare parts and raw materials
of the Company have been physically verified by the Management at the close
of the year.
(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 nature of its business.
(v) The discrepancies between the physical stocks and book stocks which
have been properly dealt within the books of account were not material.
(vi) The valuation of stock of finished and other goods, stores, spare
parts and raw materials has been fair and proper in accordance with the
normally accepted accounting principles and is on the same basis as in
earlier year, except for the change in the basis of valuation of Stock of
Finished and other goods, in order to comply with the requirements of
(vii) The Company has not taken any loan from companies, firms or other
parties during the year.
(viii) The Company has not granted any loan to companies, firms or other
parties during the year.
(ix) Loans/Advances have been given to the employees and they are repaying
the amounts as well as interest wherever applicable as stipulated.
(x) On the basis of checks carried out during the course of audit and as
per explanations given to us, there is adequate internal control procedure
commensurate with the size of the Company and the nature of its business
for the purchase of stores, raw materials, goods, plant and machinery,
equipment and other assets and for the sale of Goods.
(xi) There are no purchases during the year of stores, raw materials or
components and sale of goods and services aggregating during the year to
Rs. 50,000/- or more in each type from/to the firm or companies or other
parties in which Directors are interested as listed in the Register
maintained under Section 301 of the Companies Act, 1956.
(xii) There were no unserviceable or damaged raw materials and finished
goods held by the Company at the close of the year as informed to us. Hence
no provision is required to be made for the same.
(xiii) The Company has not accepted any deposits from the public, during
this year, under Section 58A of the Companies Act 1956 and the rules framed
(xiv) The company has maintained reasonable records for the sale and
disposal of process waste.
(xv) The Company has appointed a firm of Chartered Accountants for carrying
out Internal Audit. In our opinion, the same is commensurate with the size
and nature of the business of the Company.
(xvi) The Company has maintained proper cost records as prescribed by the
Central Government under Section 209 (1) (d) of the Companies Act, 1956 for
the manufacture of Sulphuric Acid, but no detailed examination of such
records has been carried out by us.
(xvii) During the year the Company was generally regular in depositing the
Provident Fund dues and as explained to us the provisions of Employees
State Insurance Act,1948 are not applicable to the Company.
(xviii) There are no undisputed amounts payable in respect of Income Tax,
Wealth Tax, Sales Tax, Customs Duty and Excise Duty as at 31st March, 2000
which are outstanding for a period more than six months from the date they
(xix) In our opinion and according to the information and explanations
given to us and as certified by the Wholetime Director personal expenses
have not been charged to revenue account.
(xx) The Company is not a Sick Industrial Company within the meaning of
Clause (O) of sub section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985 (1 of 1986).
(xxi) In respect of the Trading Activities of the Company, it has a system
of determining during the physical verification, the damaged goods and of
providing for the losses for the same. However, as there were no damaged
goods at the close of the year, no provision is required to be made in the
For SINGHI & CO., For BHASKARAN & KRISHNAN
Chartered Accountants Chartered Accountants
Place : Chennai (SUDESH CHORARIA) (B. GOPALAKRISHNAN)
Date : 8th April, 2000 Partner Partner