We have audited the attached Balance Sheet of GUJARAT REFRACTORIES
LIMITED as at March 31, 2001 and the Profit and Loss Account annexed
thereto for year ended on that date and report that:
1. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Central Government under Section
227(4A) of the Companies Act, 1956, we give in the Annexure a statement
on the matters specified in paragraph 4 and 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 where necessary for the purposes of
(b) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the Books of Account maintained by the
(c) 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
(d) In our opinion, the Balance Sheet and the Profit & Loss Account
comply with the mandatory Accounting Standards referred to in Section
211 (3C) of the Companies Act, 1956 ;
(e) On the basis of written representations received from the Directors
of the Company as at March 31, 2001 and taken on record by the Board of
Directors of the Company, we report that none of the directors is
disqualified as at March 31, 2001 from being appointed as a director in
terms of clause (g) of subsection (1) of section 274 of the Companies
(f) Attention is invited to Note No. 1 in Schedule 12B regarding
preparation of the accounts on going concern assumption, which is
inappropriate under the facts and circumstances stated In the note.
Under the circumstances, the extent of resultant adjustments in the
assets and liabilities with effects on the year-end net worth and loss
for the year is not ascertainable.
Subject to the above, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read
with other notes thereon, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
(i) in the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2001 and
(ii) in the case of the Profit & Loss Account, of the loss for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (1) of our report of even date on the
accounts of Gujarat Refractories Limited for the year ended on 31st
(i) As no business transactions are carried out by the Company, the
requirements of clauses (iii), (iv), (v), (vi), (x), (xii) and (xvi) of
para 4(A) are not applicable to the Company.
(ii) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. In
respect of factory buildings, the records do not show cost of each
building separately, but the aggregate cost of buildings is recorded.
We are informed that the management has physically verified fixed
assets during the year and we are informed that no material
discrepancies have been noticed by the management on such verification.
(iii) None of the fixed assets have been revalued during the year.
(iv) Except loans obtained from directors, the Company has not obtained
any loans from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. The interest
on loans obtained from directors would be chargeable as mutually
agreed, since at present no interest has been agreed upon, terms of
payment of the loans are also not specified. Other terms and conditions
of said loans are not prima facie prejudicial to the interest of the
Company. We are informed that there are no companies under the same
management as definied under sub- section (1B) of section 370 of said
(v) The Company has not granted any loan to Companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956. We are informed that there are no companies under
the same management as definied under sub-section (1B) of section 370
of said Act.
(vi) The Company has not given any loans or advances in the nature of
loans to any parties during the year.
(vii) According to the information and explanations given to us, there
are no transactions of purchases of goods and materials and, sale of
goods, material and services, by the company 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.
(viii) During the year under review, the Company has not accepted any
deposits from the public.
(ix) In our opinion, reasonable records have been maintained by the
Company for the sale and disposal of realisable scrap.
(x) The Company had no internal audit system during the year under
(xi) 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, the provisions of Employees State
Insurance Ac are not applicable to the Company.
(xii) According to the information and explanations given to us, no
undisputed amount payable in respect o Income-tax, Wealth-tax,
Sales-tax, Custom duties and Excise duties as at 31st March, 2001 were
outstanding for a period of more than six months from the date thebecame payable.
(xiii) According to information and explanations given to us and on the
basis of records examined by 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
(xiv) As informed to us, the Company is out of the purview of
provisions of the Sick Industrial Companies (Special Provisions) Act,
1985 as it is registered a Small Scale Industrial undertaking.
For C. C. CHOKSHI & CO
AHMEDABAD GAURAV SHMH
[DATED: 14th August, 2001.] PARTNER