We have Audited the attached Balance Sheet of Bell Agromachina Ltd., as
at 31st March, 2002 and the Profit and Loss Account of the Company for
the year ended on that date annexed thereto and report that:
I. As required by the Manufacturing and other Companies (Auditors
Report) Order, 1988 issued by the Central Govt. in term of section 227
(4A) of the Companies Act 1956, and on the basis of such examination of
the books and records of the Company as we considered appropriate and
the information and explanation 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.
II. Further to our comments in the annexure referred to in paragraph 1
above We have to report that:
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for 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 Balance Sheet and Profit and Loss account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion the Balance Sheet and Profit & Loss A/c comply with
the accounting standards referred to in Sec.211 (3c) of the companies
e) According to the records of the company there are no outstanding
dues as on 31.3.2002 owed by the company to any other small scale
industrial undertakings for a sum of Rs.1.00 lakh or more which is the
outstanding for more than 30 days.
f) None of the Directors is disqualified from being appointed as
Director under section 274 (1) (g) of the Companies Act, 1956
g) The Agricultural Impliments sold during the financial year 1997-98
have been returned by the Dealer & Customer during this year. The same
has been taken as Dead stock at the price it was sold crediting the
respective dealers & customers, accounts. Except this there are no
other matters or circumstances which have adverse effect on the
functioning the Company.
h) In our opinion and to the best of our information and according to
the explainations given to us, the said accounts read with notes
thereon give the information required by the companies Act 1956 in the
manner so required and give a true and fair view;
1) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March 2002 and
2) In the case of Profit and Loss Account of the Loss of the Company
for the year ended on that date.
For H. N. Adinavar & Co.
Place: Hubli Sd/-
H. N. Adinavar
25th July 2002 (Proprietor)
ANNEXURE TO AUDIT REPORT OF BELL AGROMACHINA LTD., FOR THE YEAR ENDED
31st MARCH 2002 (Referred to in paragraph 1 thereof)
1) The Company has maintained proper records showing full particulars
including qualitative details and situation of fixed assets. The fixed
assets have been physically verified by the management at reasonable
intervals during the year and no material decrepancies were noticed on
2) The Company has not revalued any of its Fixed Assets during the
3) Stocks of the inventories and finished goods and others have been
physically verfied by the management at reasonable intervals. The
descrepancies noticed on such verification between physical stocks and
book records were not material. The procedure of physical verification
of stock followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
4) In our opinion the valuation of stocks is fair and proper in
accordance with the noramlly accepted accounting principles and is on
the same basis as in earlier years.
5) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from companies, firms, or other parties
listed in the register maintained under section 301 and from the
companies under same management as defined under section 370 (1 B) of
Companies Act 1956 are not prima facie, prejudical to the interests of
6) The company has not granted any loans to companies firms or other
parties listed in the register maintained under section 301 and
companies under same management as defined under section 370 (1B) of
Companies Act 1956.
7) The Company has not given any loans or advance in the nature of
loans to anybody except interest free advances to the employees which
are being recovered either as per original stipulation or modified
8) In our opinion & according to the information and explanation given
to us, the company has adequate internal control procedures
commensurate with size of the company and nature of its business, with
regard to purchase of stores, raw materials including components, plant
and machinary, equipments and other assets and for sale of goods.
9) In our opinion and according to the information and explanation
given to us, the transactions of purchase of goods and materials and
sale of goods, materials and services made in pursuance of contracts
ararragements entered in registers maintained under Section 301 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
prevailing market prices for such goods, materials or services or the
prices at which transactions for similar goods, materials of services
have been made with other parties.
10) As explained to us, the company does not have any unserviceable or
damaged stores nor its activities generally produce any by product and
the company is maintaining reasonable records for the sale and disposal
11) The Company has invited Deposits from public.
12) The Company does not have internal audit system.
13) Maintenance of cost accounts under Section 209 (1) (d) of companies
Act 1956 has not been prescribed by the Central Government for this
14) We have been informed by the management that E.S.I. Act is
15) According to the books and records examined by us and explanations
given to us, the company has no undisputed liability in respect on
income Tax, Wealth Tax, Sales Tax, Customs Duties which is outstanding
as on the date of the Balance Sheet for a period exceeding six months
from the date they became payable.
16) In our opinion and according to the information and explanations
given to us no personal expenses have been charged to the revenue
accounts, other than those payable under contractual obligations or in
accordance with generally accepted commerical practice.
17) The company is not a sick industrial company within the meaning of
clauses (O) of Sub Section (1) of section 3 of Sick Industrial
Companies (Special Provisions) Act, 1985. However, the Sales Turnover
of the company has been reduced considerably due to lack of rainfall
and due to recession. The Directors are hopeful of improving the sales
in the next financial year.
For H. N. Adinavar & Co.
H. N. Adinavar
25th July 2002 (Proprietor)