| ANNUAL REPORT 2005-2006
AUDITORS' REPORT
To
The Members
Consortex Karl Doelitzsch (India) Ltd.
We have audited the attached Balance Sheet of Consortex Karl Doelitzch
(India) Ltd., as 31st March, 2006 and the Profit and Loss account of the
Company for the Period ended on that dated annexed thereto.
I. As required by the manufacturing and other companies (Auditors Report)
order 1988 issued by the Company law board in terms of the information and
explanations given to us and on the basis of such checks as we considered
appropriate we annex hereto the statement on the matters specified in
paragraphs 4 & 5 of the said order.
II. Further to our comments in the annexure referred to in paragraph I
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 so far as appears from our examination of the books.
c) i) The Company has not compiled quantity particulars for production,
consumption of raw materials.
ii) The Sock of Demo Tools are compiled based on the information available
from the records and physical availability of the tools is subject to
confirmation.
iii) Balance in Sundry Debtors, Sundry Creditors and advances are not
confirmed.
Subject to the foregoing and in our opinion and to the best of our
information and according to the explanation given to us, these said
accounts read together with the accounting policies and notes thereon, give
the information required by the Company's 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 March, 2006
ii) In the case of Profit & Loss account of the Loss for the Period ended
on the date.
For Nataraja Iyer & Co.
Chartered Accountants
Sd/-
Place (Camp): Hindupur E.S. Ranganath
Date : 03.08.2006 PARTNER
ANNEXURE TO AUDITORS REPORT
1. The Company has compiled the fixed assets register. However fixed assets
register need to be updated to incorporate additions made during the year.
We are informed that the assets have not been physically verified by the
management.
Therefore comparison of physical and book balance does not arise.
2. None of the fixed assets have been revalued during the year.
3. The Stock Of finished goods and raw materials have been physically
verified by the management as at the end of the year except of demo tools.
4. In our opinion the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to size
of the company and nature of its business.
5. Subject to paragraph d(ii) of the report no material discrepancies have
been noticed on physical verification of stocks as compared to book
balances in so far as appears from our examination of books.
6. In our opinion 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 earlier year.
7. The Company has not borrowed loans from companies. Firms and other
parties where Directors are interested or from a company under the same
management.
8. The company has not granted any loans to Directors, Companies, Firms or
other persons where Directors are interest including companies under same
management
9. The company has not given loans or advances in the nature of loans to
any person except the advances given in the normal course of business.
10. In our opinion and according to the information given to us there are
adequate internal control procedures to commensurate with the size of the
Company and nature of its business for purchase of raw material components
plant and machinery equipment other assets and sales of goods.
11. In our opinion and according to the information and explanations given
to us there are not transactions of purchase of goods or materials sales of
goods or materials and services made in pursuance 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.
12. The Company is yet to establish a system for determination of
unserviceable and damaged raw material and stores. We are informed that
there are no unserviceable or damaged raw materials as at the end of the
Period. However during the Period the value of the Demo Tools has been
written down and an amount of Rs.17,42,774/- has been written off.
13. The Company has not accepted any deposits from Public.
14. As informed to us not scarp accrued as the company carried only
assembling activity. Hence maintenance of records for sales and disposal of
scrap does not arise. The Company has no by-product.
15. The company is yet to establish internal audit system. However all the
transactions of the company are done with the approval of Directors.
16. The Central Government has not prescribed maintenance of cost records
under Section 209(i)(d) of the Companies Act, 1956 for the product of the
company.
17. The Company has not established any Provident Fund Scheme to its
employees as the provisions of the Provident Fund act do not as yet apply
to this company. The provisions of employees state Insurance Act Does not
apply to the this company.
18 In our opinion and according to the information and the explanations
given to us, there are no undisputed amounts payable in respect of Income
Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty as at the last day
of the accounting period outstanding for a period of more than six months
fogy the date they became payable.
19. According to information and explanations given to us and the records
of the Company examined by us, no personal expenses have been charged to
revenue account other than those payable under contractual obligations are
in accordance with generally accepted business practice.
20. The Company to the information and explanations given to us there were
no damaged goods in the case of goods purchased for resale.
21. According to the information and explanations given to us there were no
damaged goods in the case of goods purchased for resale.
For Nataraja Iyer & Co.
Chartered Accountants
Sd/-
Place (Camp): Hindupur E.S. Ranganath
Date : 03.08.2006 PARTNER | 