| 1. We have audited the attached Balance Sheet of CHIPLUN FINE CHEMICALS
LTD. as at 31st March, 2002 and also the Profit and Loss Account of the
Company for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility Is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in 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 misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures In the financial statements. An audit also Includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the over all presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3; 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 Companies Act, 1956, we annex hereto a statement on the
matters specified in paragraphs (4) and (5) of the said Order, to the
extent applicable to the Company.
4. Further to our comments referred to in paragraph (1) above, we
REPORT as under :-
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 the Profit & Loss Account death with by this
Report are In agreement with the Books of Account.
d. In our opinion, the Balance Sheet and Profit & Loss Account comply
with the Accounting Standards referred to In sub-section 3(c) of
section 211 of the Companies Act, 1956.
e. On the basis of information & explanations given to us, and
representations obtained by the Company, there are no directors of the
Company, who are disqualified under Section 274(1) (g) of the Companies
Act, 1956, from being appointed as directors as on 31st March, 2003.
f. 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 notes thereon, give the Information
required by me 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 as on 31st March, 2002 and
ii) In the case of the Profit & Loss Account, of the PROFIT for the
year ended on that date.
For SANZGIRI ACHARYA & ASSOCIATES
Chartered Accountants
Place: Mumbai M. K. SANZGIRI
Dated: 23rd June, 2003 (Partner)
ANNEXURE TO THE AUDITORS REPORT (REFPERED TO PARAGRAPH 1 THEREOF)
AS REQUIRED BY THE MANUFACTURING AND OTHER COMPANIES [AUDITORS REPORT]
ORDER, 1988 ISSUED BY THE CENTRAL GOVERNMENT UNDER SECTION 227(4A) OF
THE COMPANIES ACT. 1956 AND ACCORDING TO THE INFROMATION AND
EXPLANATIONS GIVEN TO US AND ON THE BASIS OF SUCH CHECKS AS WE
CONSIDERED APPROPRIATE, WE FURTHER REPORT THAT:-
I. The Company has maintained proper records of its fixed assets with
quantitative details & situation of fixed assets. We are Informed that
fixed assests have been physically verified at reasonable intervals
during the year by the management and that no material discrepencies
were noticed between the book records and physical verification.
ii. None of the Fixed Assets have been revalued during the year.
iii. Inventories have been physically verified by the company at
reasonable Intervals.
Iv. In our opinion and according to the explanations given to us, the
procedure followed by the management tor such physical verification Is,
reasonable and adequate in relation to the size of the Company and the
nature of its business.
v. The discrepancies noticed on verification between the physical
stocks and the book records, which are not significant, have been
properly dealt with In the Books of Account.
vi. In our opinion, the valuation of stocks of finished goods, stores
and spare-parts and raw materials Is fair and proper and Is In
accordance with the normally accepted accounting principles and is on
the same basis as In the preceding year.
vii. In our opinion and according to Information and explanation given
to us and read with Item No. 5 of schedule 24, forming part of
financial statement, the Company has not taken secured or unsecured
loan from Companies, firm or other parties listed in the register
maintained under Section 310 and 370 [1B] of the Companies Act.1956.
viii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956. As informed to us. There
are no companies under the same management as defined under Section 370
(1B) of the Companies Act.1956.
ix. The Company has not granted any loans and/or advances In the nature
of loans to anybody.
x. 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 with regard to the purchase of stores, raw materials, packing
materials Including components, plant & machinery, equipment and other
assets and with regard to the sale of goods.
xi. In our opinion and according to the information and explanations
given to us, there are no transactions of purchases of goods and
materials and sale of goods, materials and services made in pursuance
of contracts or arrangements entered 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 any party.
xii. As explained to us, the Company has a regular procedure for
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provision has been made In the accounts for
the loss arising on the items so determined.
xiii. The Company has not accepted deposits from the Public.
xiv. In our opinion, reasonable records have been maintained by the
Company for the sale and disposal of scrap. There are no by-products so
far, as explained to us.
xv. In our opinion, the Company has an internal audit system
commensurate with size of the company and nature of its business.
xvi. We are Informed that the company is taking opinion about the
maintenance of cost accounting records under section 209 (1) (d) of the
Companies Act, 1956, In respect of Companys products. Such records
have not been maintained so far.
xvii. Provident Fund has been applied to the Company by the respective
authority with retrospective effect from 1.4.1995. The Company has
made part payment during the year. The Company Is not regular in
depositing Provident Fund dues with the appropriate authority.
xviii. 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 outstanding as on 31st March
2003 for a period of more than six months from the date they became
payable.
xix. During the course of our examination of the Books of Account,
carried out In accordance with the generally accepted auditing
practices, we have not come across any personal expenses being charged
to revenue accout.
xx. The Company to not a sick Industrial unit within the meaning of
Section 3(1)(0) of Sick Industrial Companies (Special Provisions) Act,
1985.
For SANZGIRI ACHARYA & ASSOCIATES
Chartered Accountants
Place: Mumbai M. K. SANZGIRI
Dated: 23rd June, 2003 (Partner) | 