We have audited the attached Balance Sheet of ANUSHA INTERNATIONAL
LIMITED as at 31st March 2002 and the Profit & 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.
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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
1. As required by the Manufacturing and other companies (Auditors
Report) Order, 1988 issued by the Central Government of India 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 & 5 of
the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
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
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
c) The Balance Sheet and Profit and Loss account dealt with by this
report are in agreement with the books of account.
d) Subject to the matters stated in para (f) below, regarding deferred
tax and provision of interest to Banks and Financial Institutions, the
companys profit and loss account and Balance Sheet comply with
accounting standards referred to in sub section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of the written representation received from the
directors of the Company as at 31st March, 2002 and taken on record by
the board of directors, we report that none of the directors is
disqualified from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Companies Act, 1956.
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 and
Loss Accounts give the information required by the Companies Act 1956,
in the manner so required and subject to note 10 & 18 of Schedule 13
regarding deferred tax and interst to Financial Institutions and Banks,
give a true and fair view in conformity with the accounting principles
generally accepted in India:
i. In so far as it relates to the Balance Sheet of the state of
affairs of the company as at 31st March, 2002;
ii. In so far as it relates to the Profit and Loss Account of the Loss
of the company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (1) OF THE AUDIT REPORT OF EVEN DATE
TO THE SHAREHOLDERS OF ANUSHA INTERNATIONAL LIMITED ON THE ACCOUNTS FOR
THE PERIOD ENDED 31 ST MARCH, 2002.
i. The company has maintained proper records showing particulars
including quantitative details and situation of fixed assets. However
the records maintained requires updating. As explained to us, the
management has physically verified its fixed assets during the period
and no serious discrepancies were noticed on such verification. In our
opinion, the frequency of physical verification of fixed asset is
reasonable having regard to size of the company and nature of assets.
ii. None of the fixed assets have been revalued during the period.
iii. The stock of finished goods, stores, spare parts and raw material
have been physically verified by the management at reasonable intervals
during the period.
iv. In our opinion, 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.
v. Material discrepancies were noticed on physical verification of
stocks as compared to book records and the same have been properly
dealt with in the books of accounts.
vi. On the basis of our examination of stock records, we are of the
opinion that the valuation of stocks is fair and proper and is in
accordance with the normally accepted accounting principles and the
basis of the valuation is same as in the preceding year.
vii. The company has not obtained any loans secured or unsecured to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. According to the
information given to us on loans have been taken from the companies
under the same management.
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 and/or to the companies under the same management as
defined under sub-section (1 B) of the section 370 of the Companies
ix. The company has not granted any loans or advances in the nature of
loans to any party.
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, for the purchase of stores, raw materials, plants and
machinery, equipment and the assets and for the sale of goods.
xi. In our opinion and according to the information and explanations
given to us, there were no transactions of purchase of goods, 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
period to Rs. 50,000 or more in respect of each party.
xii. According to the information given to us, the company has a
regular procedure for determination of unserviceable or damaged stores,
xiii. The company has not accepted deposits from the public during the
year within the meaning of section 58-A of the Companies Act, 1956.
And the rules made thereunder.
xiv. In our opinion, the company has maintained reasonable records for
the sale and disposal of scraps. According to information furnished
to us, the company has no realisable by-products.
xv. Even though the companys paid up capital exceeds Rs. 25,00,000/-
the company has no internal audit system at present. However, the
existing internal control is adequate considering the size of the
company and the nature of its business.
xvi. The Central Government has not prescribed maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 for any of
the products of the company.
xvii. According to the records of the Company, the Provident Fund and
ESI dues have not been regularly deposited with appropriate
authorities. Arrears of PF and ESI amounting to Rs. 18,68,403/- was yet
to be paid as on the date on the Balance Sheet.
xviii. According to the information and explanations given to us the
following undisputed amounts were outstanding at 31.03.2002 for a
period of more than six months from the date they became payable.
Professional Tax Rs. 11,412
Tax Deducted at Source Rs. 2,82,668
Income Tax liability Rs. 3,98,153
xix. No personal expenses of the Employees or Directors have been
charged to revenue account, other than those payable under contractual
obligations or in accordance with generally accepted business practice.
xx. 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. The company has been
registered with BIFR as a sick company and has submitted a draft
proposal for rehabilitation to IDBI, the operating agency appointed by
For VENKATESH & CO
Chennai V. DASARATY
2nd September 2002 Partner