| We have Audited the attached Balance Sheet of M/S. RAASHI FERTILIZERS
LIMITED. As on 31st March, 2003 and profit & Loss Account of the
Company for the year ended on that date, and annexed thereto and report
that.
WE REPORT AS FOLLOWS ;
1. As required by the manufacturing and other Companies (Auditors
Report) order 1988 issued by the company law Board in terms of section
227(4A) of the company Act, 1956 on the basis of such checks of the
books and records as we considered appropriate and the information and
explanation given to us during the course of audit. We annex 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
above, we report that:
A. We have obtained all the information and explanation 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 the
Companies Act. 1956 (As amended) have been kept by the company so far
as it appears from our examination of the books.
C. The Balance Sheet & Profit & Loss Account dealt with by this report
are in agreement with the books of accounts.
D. In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in Section 211(3C) of
the Companies Act, 1956.
E. On the basis of the representations from the directors, taken on
record by the Board of Directors, none of the directors is disqualified
as on 31st March, 2003 from being appointed as director under
Section.274(1)(g) of the Companies Act. 1956.
P. In our opinion, to the best of our information and according to the
explanation given to us, the said accounts 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 affair of the company
as at 31st March, 2003.
ii. In the case of profit & Loss account, Loss of the company the year
ended on that date.
iii. In the case of cash flow statement of the cash flow for the year
ended on that date.
FOR B. M. JHAVERI & CO.
CHARTERED ACCOUNTANTS
Place: MUMBAI. BHUPENDRA M. JHAVERI.
Date: 16-05-2003 Proprietor.
Membership No. 15855.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2003 M/S. RAASHI FERTILIZERS
LIMITED
1. The company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets,
according to the information and explanations given to us, no material
discrepancies were reported to have been found in respect of assets
verified as compared to book record.
2. None of the fixed assets have been revalued during the year.
3. Stock of finished goods, stores & spare parts and raw materials have
been physically verified at reasonable intervals during the year by the
management.
4. In our opinion, the procedure of physical verification of stock
followed by the management is reasonable, and adequate in relation to
the size of the company and the nature of its business.
5. According to the records produced to us, for our verification, there
were no material discrepancies noticed on physical verification and
stocks referred to in (iii) above, as compared to book records and the
same have been properly dealt with in the books of Accounts.
6. On the basis of our examination of the stock records, we are
satisfied that the valuation of the stocks is fair and proper in
accordance with the normally accepted accounting principles and is on
the same basis as in the preceding year.
7. The company has given loans to its Employees who are repaying the
principal amount as stipulated and have also been regular in the
payment of interest where applicable.
8. The company has not taken loans from companies, firms or other
parties listed in the register maintained Under Section 301 of the
companies Act. 1956., other than those payable under contractual
obligation or in accordance with generally accepted business practices.
19. The Company is sick industrial company within the meaning of clause
(0) of sub-Section (I) of section 3 of the sick industrial companies
(Special provisions) Act. 1985 (1 of the 1980).
20. The Company does not have service activities.
21. The company does not have any trading activities.
FOR B. M. JHAVERI & CO.
CHARTERED ACCOUNTANTS
Dated: 16-05-2003
Place: Mumbai. BHUPENDRA M. JHAVERI.
Proprietor.
Membership No. 15855.
Notes :-
1. Secured Loans are from State Bank of India and are secured by
Hypothecation of Inventories. Book Debts and Equitable mortgage of
Fixed Assets.
2. Debentures are secured by second charge on fixed assets of the
company and the Trust Deed is executed in favour of State Bank of
India. Trust Deed is executed in favour of State Bank of India.
3. Debentures are redeemable at par in three equal instalments on
01.06.2006,01.06.2007 & 01.06.2008 for series I and
15.01.2007,15.01.2008 & 15.01.2009 for series II as per resolution
passed at meeting of debenture holders on 31st march 2001.
4. Facilities from State Bank of India are further secured by the
personal guarantee of Mr. C.J. Kamsinghani & Mrs. P.C. Ramsinghani.
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