WOOLWAYS (INDIA) LIMITED
We have audited the attached Balance Sheet of Woolways (India) Limited as
at 31 st March, 1997 and the Profit & Loss Account of the Company for the
period 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 Board in terms of Section 227 (4A) of
the Companies Act, 1956 we give in the Annexure hereto 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 in 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 Law have been
kept by the Company, so far as appears from our examination of such books
c) The Balance sheet and Profit & Loss Account referred to in our 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 Profit & Loss Account
read together with the significant accounting policies and other 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 so far as it relates to Balance Sheet, of the state of affairs of
the Company as at 31st March, 1997 and
(ii) In so far as it relates to in the Profit & Loss Account, of the Profit
of the Company for the period ended on that date.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the basis
off information available. According to the information and explanations
given to us most of the fixed assets were physically verified by the
management during the period and no material discrepancies were noticed on
such verification as compared to the available records. In our opinion the
frequency of such verification is reasonable having regard to the size of
the company and nature of its business.
2. None of the fixed assets have been revalued during the period,
3. As explained to us the stock of stores, spare parts, raw materials and
finished goods have been physically verified by the management at
reasonable intervals during the period. In our opinion, the frequency of
such verification is reasonable having regard to the size of the company
and the nature of its business.
4. In our opinion and according to the information and explanations given
to us, the procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
5. As explained to us there were no material discrepancies noticed on
physical verification of stocks of raw materials, stores and spares and
6. The valuation of stocks is fair and proper and is in accordance with the
normally accepted accounting principles.
7. The company has not taken any loans, secured or unsecured from
Companies, Firms or other parties listed in the register maintained under
section 301 of the Companies Act, 1956 or from Companies under the same
management within the meaning of Sub Section (IB) of section 370 of the
Companies Act, 1956.
8. The Company has not granted any loans secured or unsecured, 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 the
same management as define under Sub Section (IB) of section 370 of the
Companies Act, 1956, which are prejudicial to the interest of the company.
9. As per information and explanations given to us there are no such loans
are advances in the nature of loans
10. 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 for the purpose of
stores, raw materials including components, Plant & machinery, equipment
are other assets and for the state of goods .
11. Our Opinion, the transactions of purchase of goods or materials and
sale of goods or materials made under pursuance of contracts/arrangements
enteret in the Register maintained under section 301 of the Companies Act,
1956 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
the prevailing market price for such goods & materials or the prices at
which transactions for similar goods or materials have been made with other
12. As explained to us, the company has a system of determining or damaged
stores, raw materials and finished goods and no profit & loss was
considered necessary during the period.
13. No deposits within the meaning of Section 58A of the Companies Act and
rules framed thereunder have been accepted by the Company.
14. In our opinion reasonable records have been maintained by the company
for the sale and disposal of realisable by-products and scrap wherever
15. In our opinion the internal audit system of the company is commensurate
with its size and the nature of its business.
16. According to the records of the Company, Provident Fund and Employee's
State Insurance dues have been regularly deposited with the appropriate
17. According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth-tax, sales tax,
custom duty and excise duty were outstanding as at the last day of the
financial year for a period of more than six months from the date they
18. During the course of our examination of books of account carried out in
accordance with the generally accepted auditing practices, we have not
come across any personal expenses other than those expenses under
contractual obligations with the company's employees and/or generally
accepted business practices, which have been charged to revenue account.
19. The other provisions of the said order are not applicable to the
For MUNISH CHOPRA & ASSOCIATES
PLACE : NEW DELHI
DATED : 01.04.97