We have audited the attached balance sheet of Apex Intertech Limited as
at 31st March, 2003 and also the profit & loss account and cash flow
statement 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 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 presentation of
financial statements. We believe that our audit provides a reasonable
basis 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 (A) & (C) of the said order.
Further to our comments in the Annexure referred to in paragraph 3
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 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 company's balance sheet and profit & loss account dealt with by
this report are in agreement with the books of account.
(d) In our opinion, subject to Note 5 on going concern the profit &
loss account and balance sheet of the company comply with accounting
standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956.
(e) Based on the representations made by all the Directors and the
information and duly certified explanations given to us by the company
none of the Directors of the company have prima facie any
disqualifications as referred to in clause (g) of subsection (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 the Notes and
the statement of Significant Accounting Policies 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 affairs of the
company as at 31st March, 2003; and
(ii) In the case of the profit & loss account of the company of the
loss for the year ending on that date.
(iii) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph (3) of Our Report of Even Date)
Since all the fixed assets have been disposed off by the company during
the year clauses (i) and (ii) are inapplicable and have not been
2. There were no stocks at the end of the year and therefore clauses
(iii) to (vi) are inapplicable and have not been commented upon.
3. According to the information and explanations given to us, the
company has taken loans from companies, firms or other parties listed
in the register maintained under section 301 of The Companies Act,
1956, and or from companies under the same management as defined under
sub-section (1B) of section 370 of the Companies Act, 1956. The rate
of increase and other terms and conditions on which loans have been
obtained are not prejudicial to the interest of the company;
4. According to the information and explanations given to us, 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(1B) of the Companies Act,
5. In respect of loans and advances in the nature of loans given by the
company from time to time the repayment of principal and interest is in
accordance with stipulated terms.
6. In our opinion and according to the information and explanations
given to us during the course of the audit there are adequate internal
control procedures commensurate with the size of the company and nature
of its business for the purchase of stocks.
7. There were no purchase and sale of goods, materials and services,
made in pursuance of contracts or arrangements required to be 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 value in
respect of each party.
8. As explained to us the company has a reasonable system for the
determination of unserviceable or damaged stores, raw materials and
finished goods. There was no closing stock at the end of the year.
9. No deposits accepted from the public were outstanding at the end of
10. There were no scraps or by-products since there were no
manufacturing activities during the year.
11. The company conducts an internal review of its accounts which is
commensurate with its size and nature of its business.
12. The maintenance of cost records under section 209(1)(d) of The
Companies Act, 1956 has not been prescribed by the Central Government
for any product of the company.
13. According to the records of the Company, Provident Fund and
Employees State Insurance dues have been regularly deposited during the
period with the appropriate authorities.
14. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, custom
duty and excise duty were outstanding for a period or more than six
months as at March 31, 2003 from the dare they became payable.
15. According to the information & explanations given to us no personal
expenses of employees or Directors have been charged to the revenue
16. Since the company does not own any industrial undertaking, the Sick
Industrial Companies (Special Provisions) Act, 1985 is nor applicable
17. There was no trade conducted during the year in the sale and
purchases of goods.
For V. Sahai & Co.
Place : New Delhi (Mahesh Sahai)
Dated: 18.08.2003 Partner
M. No. 6730