VISION ORGANICS LIMITED
ANNUAL REPORT 2002-2003
The Members of Vision Organics Ltd.
We have audited the attached Balance Sheet of Vision Organics Ltd. as at
31st March,2003 and also the Profit and Loss Account of the Company for the
year ended on that date. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the 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 statement. An audit also includes examining,on a test
basis,evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principle used
and significant principle used and significant estimates made by the
management, as well as evaluating the over all financial statements
presentation. We believe that our audit provides a reasonable basis for our
As required by the Manufacturing and other Companies (Auditor's Report)
Order,1988 issued by the Central Government under Section 227(4A) of the
companies Act.,1956, We enclose in the annexure of statement on the matters
specified in paragraphs 4 & 5 of the said order.
We further report that:
1. 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;
2. 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 those books;
3.The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account of the company.
4. In our opinion the Profit & Loss Account and Balance Sheet dealt with by
this report comply with the Accounting standards referred to in section
211(3C) of the Companies Act,1956 except for AS 6 and AS 10 as stated in
5. On the basis of written representations received from the directors as
on 31st March,2003,and taken on record by the Board of Directors,we report
that none of the directors is disqualified from being appointed as a
director as on 31st March 2003,in terms of clause(g) of subsection(1) of
Section 274 of the Companies Act, 1956.
6.(a) The company's profit and loss account debit balance is presently not
ascertainable for the reasons mentioned in the respective notes:
i) The company has not made a provision for interest on working capital
demand loan and term loan from banks as mentioned in note No 14.
ii) Modvat accounting as mentioned in note no 13.
iii) The outstanding amount of Rs 331445808 receivable as on 31 March,2003
from debtors,Based on written off bad debts to the extent of Rs 345519983
during the year,we are unable to comment upon the outstanding
debtor's,corresponding impact of which however could be material on the
Company's loss is not presently ascertainable.
(b) Debtors and creditors are subject to reconcillation and Confirmation.
(c) The Company has not provided for depreciation for the year amounting to
Rs. 15203611 (P.Y. 16566815).Accordingly,the loss for the year has been
shown lower by Rs. 15203611 (P.Y. Rs 16566815) and accordingly the fixed
assets have been shown higher by Rs 31770426.
7.Subject to matters mentioned above in paragraph 6.in our opinion and to
the best of our information and according to the explanations given to
us,the said Balance Sheet and Profit and Loss Account read together with
notes thereon,give the information required by the Companies Act 1956 in
the manner so required and give a true and fair view in confirmity with the
accounting principles generally accepted in India.
i) In the case of the Balance Sheet,of the state of affairs of the Company
as at 31st March,2003.
ii) In the case of the Profit and Loss Account,of the loss for the year
ended on that date.
iii) In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
For Dilip K.Thakkar & Co.
PLACE : Vadodara (Dilip Thakkar)
DATE : 30.06.2003 Proprietor
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to our Report of even date on the Accounts for the year ended on
31st March,2003 of vision organics Ltd).
In our opinion,and on the basis of such checks of the books and records as
we considered appropriate and according to the information and explanations
given to us during the normal course of audit,which were necessary to the
best of our knowledge and belief we report that:
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. As explained
to us that the fixed assets have been physically verified by the Management
at reasonable intervals and no material discrepancies were noticed on such
2. None of the Fixed Assets of the company have been revalued during the
3. Physical verification has been conducted by the Management,at reasonable
intervals in respect of finished goods,stores,spare parts and raw
4. In our opinion and according to information and explanations given to
us,the procedure of physical verification of stocks followed by the
Management are reasonable and adequate in relation to then size of the
Company and the nature of its business.
5. The discrepancies noticed on verification between the physical stocks
and the books records were not material in relation to the operations of
6. On the basis of our examination of stock records,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 previous year.
7. We are informed that the Company has taken loans,secured or unsecured
from the companies,firms or other parties,listed in the register maintained
under Section 301 of the Companies Act,1956,or from the Companies under
same management within the meaning of Section 370(1-B) of the Companies
Act,1956 and the rate of interest and other terms and conditions of such
loans are not prima facie,prejudicial to the interests of the company.
8.The Company has not granted loans,to the Companies,firms or other
parties,listed in the register maintained under section 301 of the
Companies Act 1956 and/or to the Companies under same management within the
meaning os section 370(1-B) of the Companies Act,1956.
9. The Company has not given loans and advances in the nature of loans.
10. In our opinion and according to the information and explanations given
to us, there is an adequate internal control procedure commensurate with
the size of the company and the nature of its business,for the purchase of
stores,raw materials,including components,plant & machinery,equipment and
other assets and with regard to the sale of goods.
11. In our opinion and according to the information and explanations given
to us,the transaction of purchase of goods and material,and sale of
goods,materials and services made in pursuant of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act,1956 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 and services or the
prices at which transactions for similar goods,materials or services have
been made with other parties.
12. As explained to us,the Company has a regular procedure for the
determination of unserviceable or damaged stores,raw materials and finished
goods. In our opinion adequate provision has been made in the books of
accounts for the loss arising on items so determined.
13. In our opinion and according to the information and explanations given
to us,the company has complied with the provisions of Section-58A of the
Companies Act,1956 and the Companies(Acceptance of Deposits)Rules,1975 with
regard to the deposits accepted from the public during the year.
14. As explained to us, the company has maintained reasonable records for
sale and disposal of realisable by products and scraps.
15. The Company has an Internal Audit System However there is a scope for
increasing the coverage so as to be commensurate with the size and nature
of its business.
16. We have been informed that Central Government has not prescribed
maintenance of cost records under Section 208(1)(d) of the Companies
17. According to the informations and explanations given to us,The
Employees (Provident Fund & Misc Provisions) Act, 1958 and Employees State
Insurance Act is not applicable to the Company.
18. According to the information and explanations given to us,there are no
undisputed amounts payable in respect of Income Tax,Wealth Tax,Sales
Tax, Custom Duty and Excise Duty which are outstanding as on 31st March
2003 for a period of more than six month from the date they become payable.
19. On the basis of examination of books of account carried out by us in
accordance with generally accepted auditing practices and according to the
information and explanation given to us,no personal expenses of the
employees or directors have been charged to the profit and loss
account,other than those payable under contractual obligations or in
accordance with the generally accepted business practices.
20. The Company is a sick industrial company within the meaning of
clause(0) of Sub-Section(1) of Section 3 of the Sick Industrial
Companies(Special Provision) Act,1985 as amended by the Sick Industrial
Companies (Special provisions) Amendment Act 1993.
21. As explained to us,in respect of trading activity,the company has a
regular procedure for determination of damaged goods,However we are
informed that there is no loss arising on such items during the year.
For Dilip K.Thakkar & Co,
PLACE : Vadodara (Dilip Thakkar)
DATE : 30.06.2003 Proprietor