TEEM LABORATORIES LIMITED
ANNUAL REPORT 2002-2003
THE MEMBERS OF
TEEM LABORATORIES LIMITED
We have audited the attached Balance Sheet of Teem Laboratories Lined as on
31st March 2003 and annexed Profit and Loss Account of the Company for the
year ended on that date.
These financial statements are the responsibility of the management of the
company. Our responsibility is to express an opinion on these financial
statements based on our audit
We conducted our audit n 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 mis-statement. An audit includes, examining on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes the accounting principles used and
significant estimates made by the management, as well as evaluating the
overall presentation of the financial statements. We believe that our audit
subject to notes thereon provides a reasonable basis for our opinion.
We report as follows
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 of India and on the basis of such checks of the
books and records of the company as we considered appropriate and according
to the information and explanations given to us during the course of audit,
we give in the Annexure a statement on the matters specified in the
paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1 and
subject to notes to the accounts we report 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 the audit
b) 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 books
c) the Balance Sheet and Profit and Loss Account dealt with-by this report
are in agreement with the books of account
d) in our opinion, the Profit and Loss Account and Balance Sheet of the
Company, read with the notes and significant Accounting Policies vide
schedule 11, and subject to notes to accounts comply with the Accounting
Standards referred to in Sub-Section (3C) of Section 211 of the Companies
e) As per the information explanations and certificate given to us by the
management of the company, and relied upon by us, none of the directors of
the company are prima facie as of 31st March 2003, disqualified from being
appointed as Directors of the company under clause (g) of sub-section (1)
Section 27 of the Companies Act 1956.
f) In our opinion and to the best of our information and according to the
explanations given to us, the accounts, read with the notes and significant
accounting policies thereon, give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view
i) in the case of the Balance Sheet, of the state of affairs of the company
at 31st March 2003; and
ii) in the case of the Profit and Loss Account, of the Loss of the company
for the year ended on that date.
For Jitendra Chandulal Mahta & Co.
Annexure to the Auditor's Report
We reference to the Annexure referred to in paragraph 1 of the report, of
the Auditors to the Members of Teem Laboratories Limited on the accounts
for the year ended 31st March 2003, we report that :-
1. The company is maintaining proper records to show full particulars
including quantitative details and situations of fixed assets. As per
explanations given to us, the fixed assets have been physically verified by
the management and no serious discrepancies were noticed.
2. None of the fixed assets have been revalued during the year.
3. As explained to us, the physical verification has been conducted by the
management at the and of the year in respect of the finished goods, Work in
progress, stores, spare parts, raw materials and blocks and cylinders.
4. In, our opinion and according to the information and explanations given
to us the procedure physical verification of stocks followed by the
Management is reasonable and adequate relation to the size of the company
and nature of its business.
5. The discrepancies noted on the physical verification of stocks as
compared to book records have been adjusted in the books of accounts.
6. In our opinion and on the basis of our examination of inventory of
stocks, the valuation Is fair and proper.
7. The company has taken unsecured loans from parties listed in the
register maintained under Section 301 of the Companies Act, 1956. There are
no specific terms and conditions on which such loans are taken, as such we
are unable to comment whether such loan is prejudicial to the company or
8. The company has granted loan to firms listed in the register maintained
under Section 301 of the Companies Act, 1956. There is no company under the
same management as entered in the register maintained under Section 370 (1
B) of the Companies Act, 1956. There are no specific terms and conditions
on which loans are granted and as such we are not in a position to comment
whether it is prejudicial to the company or not.
9. The company has not given any loans and advances to its employees during
10. In our opinion and according to information and explanation given to
us, there is an adequate Internal control procedures commensurate with the
size of the company and nature of its business for the purchase of store,
raw materials, components, plant and machinery, equipments and other assets
and for the sale of goods. However, during the year under review, there are
no purchase or sale transactions.
11. As per Information and explanations given to us, there were no
transactions of purchase of goods and materials and sale of goods and
materials and services aggregating during the year of Rs. 50,000/- or more
in respect of each party.
12. As explained to us, the company has a regular procedure for
determination of unserviceable or damaged/deteriorated stores and raw
13. During the year, the company has not accepted any new fixed deposits
from the public. Also, we are informed that as there are no public
deposits, the company has not filed returns of fixed Deposits with the
Registrar of Companies.
14. In our opinion and according to information and explanations given to
us, as there was no trading activity during the year the company has not
kept an adequate internal audit system commensurate with its size and
nature of its business.
15. As Certified by the management, no scrap was generated during the year
and therefore, no record for the sale and disposal of scrap has been
16. We are informed that the maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1)(d) of the
Companies Act, 1956 for the year under consideration.
17. We report that management states that as there were no employees, the
P.F. ACT and E.S.I.C. Act are not applicable for the year under review for
18. According to information and explanations given to us there are more
than six months disputed amount of income Tax, as on 31st March 2003. There
are no disputed liabilities for sales tax, wealth tax, as on custom duties
and excise duties.
19. As per information and explanations given to us, there are no personal
expenses which have been charged to revenue account except incurred in the
ordinary course for the purpose of business of the company.
20. The Company, subject to notes on depreciation, is not sick industrial
company within meaning of Section 3(1)(o) of the Sick Industrial Companies,
(Special Provisions) Act, 19$5.
For Jitendra Chandutal Mehta & Co.