| We have audited the attached Balance Sheet of DEV FASTENERS LIMITED as
at 30th September 2002 and also the Profit and Loss Account 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 theses financial Statements based on our
audit.
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 misstatement. 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 the management presentation. We believe that our audit provides a
reasonable base(s) for our opinion.
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 enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
1. We have obtained all the information and explanations which, to the
best of our knowledge and belief, we necessary for the purpose of our
audit:
2. 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
such books;
3. The Balance Sheet, Profit and Loss Account referred to in this
report are in agreement with the books of accounts;
4. In our opinion, the Balance Sheet, Profit and Loss Account comply
with the accounting standards referred to in subsection (3C) of Section
211 of the Companies Act.
5. On the basis of the written representations received from the
directors, as on 30~ September 2002, and taken on record by the Board
of Directors, we report that non of the directors is disqualified from
being appointed as in terms of Clause (g) of sub section(d)) of section
274 of the Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Profit and
Loss account read together with the notes on accounts thereon give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view; subject to our observations in
paragraph 5 of the annexures to his report.
(i) In so far as it relates to the Balance sheet, of the state of
affairs of the company as at 30th September 2002 and
(ii) In so far it relates to the Profit and Loss Account of the
Company, the Loss of the company of the period ended on that date.
ANNEXURE referred to in para I of our report of even date
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. All the
assets have been physically verified by the management during the year.
No material discrepancies were noticed on verification. The liquidator
has verified has not reported material difference.
2. None of the fixed assets has been revalued during the year.
3. The Stock of raw materials, stores, spare parts and finished goods
have been physically verified during the year by the Management. In our
opinion, the frequency of verification is reasonable.
4. The procedures of physical verification of stocks followed b the
Management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. The discrepancies noticed on verification between the physical stock
and book records were found to be material. Please refer note of
accounts. (Paragraph (vii)
6. On the basis of our examination of stock records, we are of the
opinion that the valuation of stocks is fair and proper in accordance
with the normally accepted accounting principals and is on the same
basis as in the previous year.
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. There are no Companies
under the same Management as defined under sub section 1 B of Section
370 of the said Act.
8. The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties listed in the Register maintained
under section (IB) of section 370 of the said Act.
9. In respect of loans and advances in the nature of staff advances
given by the company, parties have repaid the principal amounts as
stipulated and have also been regular in the payment of interest
wherever applicable.
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 with regard to purchase of stores, raw materials including
components, plant and 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, there are no transaction of purchase 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 and aggregating during the year to Rs. 50,000/- or more.
12. The Company has a regular procedure of determination of
unserviceable or damaged stores, raw materials and finished goods.
13. The Company has not accepted deposits from public as defined under
Section 58A of the Companies Act, 1956 and the Rules framed there
under.
14. In our opinion, reasonable records have been maintained by the
Company for the sale and disposal of scrap. The Company has no by-
products.
15. In our opinion, the Company had and internal audit system
commensurate with the size and nature of its business until 31.03.2002.
16. The Company has not been required by the Central Government to
maintain cost records under Section 209 (1)(d) of the Companies Act,
1956.
17. According to the records of the Company, Provident Fund dues have
been regularly deposited during the year with the appropriate
authorities. As explained to us there were no dues in respect of
Employees State Insurance as the same is not applicable to the
Company.
18. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Customs
Duty and Excise Duty were outstanding as on 30th September, 2002 for a
period of more than six months from the date they became payable.
19. According to the information and explanations given to us, no
personal expenses of employees or directors have been charged to
revenue account, other than those payable under contractual obligations
or in accordance with generally accepted business practice.
20. The Company is a Sick Industrial Company within the meaning of
clause (o) of Sub Section (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
For Revathi & LATHA
Chartered Accountants
S. REVATHI
Partner | 