We have audited the attached Balance Sheet of Floatglass India Limited
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 Company's
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 a 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, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis of our opinion.
As required by the Manufacturing and Other Companies (Auditors' Report)
Order, 1988 issued by the Central Government in terms of section 227
(4A) of the Companies Act, 1956, we give 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
(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
(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 the
(c) the Balance Sheet and the Profit and Loss Account dealt with by
this report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet and the Profit and Loss Account
comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
(e) on the basis of written representations received from the directors
as on 31St March, 2002 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2002 from being appointed as a director in terms 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 accounts read with significant
accounting policies and notes thereon give the information required by
the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2002 and
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
Re: Floatglass India Limited Referred to in Paragraph- 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
fixed assets have not been physically verified by the management during
the year. We are informed that no material discrepancies were noticed
on such verification.
2. None of the fixed assets has been revalued during the year.
3. The stocks of finished goods, stores, spare parts and raw materials
have been physically verified by the management during the year. In our
opinion, the frequency of verification is reasonable.
4. 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.
5. The discrepancies noticed on verification between the physical
stocks and the book records have been properly dealt with in the books
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 principles and is on the same
basis as in the preceding year.
7. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms and other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 and from a company under the same management within the
meaning of section 370(1 B) of the Companies Act, 1956 are not prima
facie prejudicial to the interest of the Company. 8. 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 or to companies under the same management
within the meaning of section 370(1 B) of the Companies Act, 1956.
9. The employees to whom loans have been given by the Company are
regular in repayment of principal amounts as stipulated and are also
regular in payment of interest, where 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 for the purchase of stores, raw materials including
components, plant and machinery, equipment and other assets and for the
sale of goods.
11. In our opinion and according to the information and explanations
given to us, the transactions 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 of
the Companies Act, 1956 and aggregating during the year to Rs.50,000 or
more in respect of each party have been made at prices which are
reasonable having regard to the prevailing market prices for such
goods, materials or services or the prices for which transactions for
similar goods, materials or services have been made with the other
12. The Company has a regular procedure for the 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.
13. The Company has not accepted any deposit from the public within the
meaning of Section 58A of the Companies Act, 1956 and the rules framed
14. In our opinion, reasonable records have been maintained by the
Company for the sale and disposal of realizable scrap. The Company does
not generate any by-products.
15. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business. 16. The
maintenance of cost records has not been prescribed by the Central
Government 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
authority. We are informed that the provisions of Employees State
Insurance Act, 1948 are not applicable to the Company.
18. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty were outstanding as at 3l~~ March,
2002 for a period of more than six months from the date they became
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 not a sick industrial company within the meaning of
section 3(1)(o) of the Sick Industrial Companies (Special Provisions)
21. In respect of the trading activities of the Company, we are
informed that there were no damaged goods.
For Deloitte Haskins & Sells
Dated: July 29, 2002.