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Vintage Foods & Industries Ltd.

BSE: 531940 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Vintage Foods & Industries Ltd
NSE 05:30 | 01 Jan Vintage Foods & Industries Ltd

Vintage Foods & Industries Ltd. (VINTAGEFOODS) - Auditors Report

Company auditors report

VINTAGE FOODS & INDUSTRIES LIMITED ANNUAL REPORT 1999-2000 AUDITORS' REPORT TO THE MEMBERS OF VINTAGE FOODS & INDUSTRIES LIMITED We have audited the attached Balance Sheet of Vintage Foods & Industries Limited as at 31st December, 20W-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 Central Government in terms of Section 227 4(A) of the Companies Act, 1956, we annexe a statement on the matters specified in the said order. 2. Further to our comments in the Annexure referred to in Paragraph 1 above, 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 our audit. (b) In our opinion, proper books of accounts as required by Law have been kept by the Company. (c) The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the books of accounts. (d) The Company has changed the rate of charging depreciation from the rate mentioned as per Companies Act, 1956 to the rate as per Income Tax Act 1961. However the Company continued to follow the written down value method of charging depreciation in Its accounts. On account of change in the rate of depreciation, it has resulted in under statement of profits by Rs.14,810,015/-. (e) The Company has changed Its accounting policy on valuation of inventories during the current year from cost or market value whichever is lower, to cost value. This teas resulted in over valuation of closing stock by Rs.109,519,833/- and over statement of profit by Rs.109,519,833/-. (f) No provision has been made in respect of retirement benefits of employees. The amount of provision is required in this behalf could not be ascertained. (g) The development expenditure amounting to Rs.64,715,020/- that are revenue in nature have been classified and grouped under Fixed Assets instead of deferred revenue expenditure. (h) In our opinion subject to para (d),(e),(f) & (g) above the Profit & Loss Account and the Balance sheet comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956. (i) We further report that without considering item mentioned in (f) above the effect of which could not-be quantified had the observation made by in (d) & (e) above been considered the loss for the year would have been Rs.64,517,103/- (as against the reported profit after tax of Rs. 30,192,715/-) reserves & surplus would have been Rs.39,484,124/- (as against the reported figure of Rs.134,193,942/-) and total Inventories would have been Rs.132,571,588/- (as against the reported figure of Rs.242,091,421/-) (j) Subject to the above, in our opinion and to the best of our knowledge and according to the information and explanations given to us, the said Balance Sheet and Profit and Loss Account 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 view:- (I) In the case of Balance Sheet, of the State of Affairs of the Company as at 31st December 2000 and (II) In the case of Profit and Loss Account, of the Profit for the year ended on that date. 3. Based on representation made by all the Directors of the Company and the information & explanation as made available all the Directors of the Company do not primafacie have any disqualification as referred to in clause (g) of sub-section (1) to Section 274 of the act. For A RAMMOHAN & CO. Chartered Accountants Place: Bangalore A R ARINAYA Date : 26th May, 2001 Proprietor ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2000 OF VINTAGE FOODS AND INDUSTRIES LIMITED. On the basis of such checks as we considered appropriate and in terms of information and explanation given to us, we state that:- 1. The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. Management has physically verified the fixed assets at reasonable intervals arid no discrepancy was noticed on such verification. 2. None of the fixed assets have been revalued during the year. 3. The stock of finished goods, stores and raw materials have been physically verified by the management. In our opinion, the frequency of verification is to be increased. 4. The procedure 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. 5. In our opinion, the discrepancies noticed on physical verification of stocks as compared to book records have been properly dealt with in the books of account. 6. The Company has changed the method of valuation of inventories from cost or realisable value whichever is lower to cost value, which is not in accordance with the normally accepted accounting principles. 7. The Company has taken unsecured loan from holding Company for which there is no stipulation for repayment of the Loan. The Company has not taken any other loan, secured or unsecured from Companies, Firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956. 8. The Company has not granted any loan to Companies. Firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956. 9. The Parties to whom then loans or advances in the nature of loans have been given by the Company are repaying the principal amounts as stipulated and are also regular in payment of interest wherever applicable. 10. There is adequate internal control procedure commensurate wit t the size of the Company and the nature of its business for the purchase of raw materials, components, store, capital equipments and for sale of goods. 11. According to information and explanations given to us, the Company has not purchased goods & materials & sold goods, materials & services aggregating to Rs.50,000/- or more in i value from / to any of the parties listed in register maintained U/s 301 of the Act. 12. As explained to us, the Company has a regular procedure to determined unserviceable or damaged stores and raw materials and finished goods and adequate provision has been made in the accounts for the losses arising on the items so determined. 13. The Company has not accepted deposits from the public during the year. 14. In our opinion, the Company is maintaining reasonable records for the sale and disposal of realisable by-products According to the information and explanations given to us, the Company did not generate any scrap during the year. 15. In our opinion, the Internal Audit System needs to be strengthened to make it commensurate with the size of Company and the nature of Its business. 16. The Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956. 17. The Company has been regular in making over Providend Fund and Employees State Insurance dues to the appropriate authorities during the year. 18. Dividend Tax of Rs. 662,700/- is outstanding for a period of more than six months from the day it become payable. Apart from this in our opinion, there are no undisputed amounts of Income Tax, Wealth Tax, Sales Tax, Customs duty and Excise Duty outstanding as at the last day of the financial year concerned for a period of more than six months from the date they became payable. 19. In our opinion, and according to the information and explanations given to us, personal expenses have not boom charged to revenue account, other than those payable under contractual obligations are in accordance with prevailing business practices. 20. The Company is not a sick Industrial Company within the meaning of clause (D) of the Sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. For A RAMMOHAN & CO. Chartered Accountants Place: Bangalore A.R. ARINAYA Date : 26th May,2001 Proprietor
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