We have audited the attached Balance Sheet of Dharmadeep Powerdive
Industries Limited as at 30th June 2001 and the annexed Profit & Loss
Account of the Company for the year ended on that date.
We report as under :
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 Companies Act, 1956 (hereinafter referred to as the
Act), we enclose in the Annexture 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
(1) above :
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes 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
those books;
c. The said Balance Sheet and the Profit and Loss Account are in
agreement with the books of account.
d. In our, opinion, the Profit and Loss Account and the Balance Sheet
comply with the accounting standards referred to in Sub-section (3C) of
section 211 of the Companies Act, 1956;
e. In our opinion and to the best of our information and according to
the explanations 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 the Balance Sheet, of the state of the Companys
affairs as at 30th June 2001 : and
II. In the case of the Profit and Loss Account, of the Loss of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph (1) of our report of even date)
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed axxets. According
to the information and explanations given to us, the fixed assets have
been physically verified by the management in accordance with a phased
programme, which in our opinion is considered reasonable having regards
to the size of the company & the nature of its assets. During the year
no materials discrepancies were noticed on such verification.
2. The fixed assets have not been revalued during the year.
3. .As explained to us, stock of finished goods, stores, spare parts
and raw materials have been physically verified by the management at
reasonable intervals during the year.
4. The procedures of physical verification of stocks followed by the
management are, in our opinion Reasonable and adequate in relation to
the size of the company and the nature of its business.
5. The discrepancies noticed on physical verification of stocks as
compared to book records were not material.
6. In our opinion, the valuation of stocks is fair and proper in
accordance with normally accepted Accounting Principles and the basis
of valuation of stocks is the same as in the previous year.
7. The company has not taken any loans, secured or unsecured from
Companies, firms or other parties under section 301 of the Companies
Act, 1956. As explained, there are no companies under the same
management as defined under sub-section (IB) of section 370 of the
companies Act, 1956.
8. The discrepancies noticed on physical verification of stocks as
compared to books, records are not material.
9. In our opinion, the valuation of stocks is fair and proper in
accordance with normally accepted accounting principles and the basis
of valuation of stocks is the same as in the previous year.
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 bussiness for the
purchase of stores, raw materials plant and machinery, equipment and
other assets and for the sale of goods.
11. There are 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 year to Rs. 50,000/-
or more during the year in respect of each party.
12. According to the information and explanations given to us, the
Company has a regular procedure for the determination of unserviceable
or damage stores, raw materials and finished goods. As explained to us
by the Company, no material unserviceable or damaged stores, raw
materials or finished goods were found during the year.
13. The Company has not accepted any deposits from the public during
the year.
14. According to the information and explanations given to us, the
Company dose not generate any by-product. Reasonable records are
maintained for sale and disposal of realizable scrap.
15. The company has an internal audit system commensurate with the
size of the company and the Nature of its business.
16. We are informed that the central government has not prescribed
maintenance of cost records under Section 209(1) (D) OF THE Act for any
of the products manufactured by the Company.
17. According to information and explanations given to us, there are
no undisputed amounts payable In respect of Income-tax, Wealth tax,
Customs duty and excise duty that are outstanding as at the date they
become repayable.
18. During the course of our examination of the books of account
carried out in accordance with generally accepted auditing practices,
we have not come across any personal expenses other than the expenses
under contractual obligations and/or generally accepted business
practices.
19. The Company is not a sick industrial company within the meaning of
clause (O) of subsection (1) of section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
20. Excise Duty liability on manufactured goods is accounted for on
removal of the goods from the place of manufacture for Sale.
Hosur, November 26, 2001. For G. Shantharam & Associates
Chartered Accountants
(G. Shantharam)
Proprietor
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