We have audited the attached Balance Sheet of MULTICOLOUR OFFSET
LIMITED as at 31st March, 2002 which we have signed under reference to
this report. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
this financial statement based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standard required 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 amount 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 over all financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
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 of India (the `Act) and
on the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we annex hereto 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, 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 those
c) The Balance Sheet dealt with by this report are in agreement with
the books of account
d) In our opinion, the Balance Sheet dealt with by this report have
been prepared in compliance with the applicable Accounting standard
referred to in Section 211 (3C) of the Companies Act, 1956
e) On the basis of the written representation received from the
Directors, as on 31st March, 2002 and taken on record by the Board of
Directors of the Company, none of the Directors is disqualified as on
31st March, 2002 from being appointed as a Director in terms of Clause
(g) of Sub-Section (1) of Section 274 of the Companies Act, 1956
f) Debit and Credit balances including secured and unsecured loans,
Sundry Creditors, Loans and Advances are subject to confirmation and
Subject to matter stated in Para 2(a) to 2(e) and particularly in Para
2(f) the effect of which on the loss of the company is not presently
ascertainable, In our opinion and to the best of our information and
according to the explanations given to us, the said accounts together
with the notes thereon particularly Note No. `12 of Schedule T and
attached there to give in the prescribed manner the information
required by the Companies Act, 1956, and also give a true and fair view
in conformity with the accounting principles generally accepted in
India. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2002.
For M.V. Damania & CO.
Membership No.: 42278
Date: 20th August, 2002
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 situations of its fixed assets. As
informed by the management, the fixed assets of the company have not
been physically verified by the management during the year.
2. None of the Fixed Assets have been revalued during the year.
3. Not Applicable as the Company has not done any trading or
manufacturing activity during the year.
4. Not Applicable in view of Clause No. iii.
5. Not Applicable in view of Clause No. iii.
6. Not Applicable in view of Clause No. iii.
7. The company has taken interest free unsecured loans from companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956 and from the companies under same
management under Section 370 (1 B) of the Companies Act, 1956. The
terms and conditions of such loans are prima facie not prejudicial to
the interest of the company.
8. The company has granted unsecured loans or advances to companies,
firms or other parties listed in register maintained under Section 301
of the Companies Act, 1956 and companies under same management under
Section 370 (1B) of the Companies Act, 1956. The terms and conditions
of such loans are prima facie not prejudicial to the interest of the
9. The company has not granted any loans or advances in the nature of
10. In our opinion and according to the information and explanations
given to us and looking to the nature of activities of the Company,
there does not exist any elaborate procedure of Internal Control.
11. There are no transaction 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 U/s 301 of the
Companies Act, 1956.
12. As explained to us, there are no unserviceable or damaged stores,
raw material and finished goods.
13. The Company has accepted deposits from public, which is within the
limit specified under Section 58A of the Companies Act, 1956.
14. As explained to us, the companies manufacturing operation do not
generate any scrap or relisable by products.
15. The Company does not have internal audit system.
16. The Central Government has not prescribed maintenance of cost
records under Section 209(i)(d) of the Companies Act, 1956.
17. According to the information and explanations given to us, the
provisions of Employees Provident Fund and Employees State Insurance
Act, 1948 are at present not applicable to the company.
18. According to information and explanation given to us, no undisputed
amount payable in respect of Wealth Tax, Sales Tax, Excise duty are
outstanding as on 31st March, 2002 for a period of more than six
months from the date they become payable, except for Income Tax
liability for the Assessment Year 1994-95 of Rs. 7,31,040/-, T.D.S.
liability of Rs. 41,984/-and Professional Tax liability of Rs. 4,955/-.
19. During the course of our examination of books of accounts carried
out in accordance with generally accepted auditing practices, we have
not come across any personal expenses, other than those payable under
contractual obligations or in accordance with generally accepted
business practices, nor we have been informed of any such case by
20. The Company is not a sick industrial company within the meaning of
clause (o) of sub section (i) of section 3 of the sick Industrial
Companies (Special Provisions) Act, 1985.
For M.V. Damania & CO.
Membership No.: 42278
Date : 20th August, 2002