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Towels India Exports. | Auditor's Report > Textiles - Terry Towels > Auditor's Report from Towels India Exports. - BSE: 512612, NSE: N.A
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Towels India Exports.

BSE: 512612|SECTOR: Textiles - Terry Towels
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Auditor's Report (Towels India Exports.) Year End : Mar '02
We have audited the attached Balance Sheet of TOWELS INDIA EXPORTS
 LIMITED as at 31st March 2002 and also the Profit & Loss Account of
 the Company for the year ended on that date annexed thereto and report
 that: -
 
 1. As required by the manufacturing and other Companies (Auditors
 Report) Order, 1988 issued by the Company Law Board under Section 227
 (4A) of the Companies Act, 1956, we annex hereto a statement on the
 matters specified in paragraphs 4 & 5 of the said order.
 
 2. Further to our comments in the annexure referred in Paragraph 1
 above, we report that:
 
 i. We have obtained all the information and explanations except
 information relating to SSI. Units as stated in note no 10 of Schedule
 16 forming part of the Accounts.
 
 ii. In our opinion, proper books of accounts as required by law have
 been kept by the Company so far as appears from our examination of the
 books.
 
 iii. The Balance Sheet and Profit & Loss Account are in agreement with
 the books of accounts.
 
 iv. In our opinion Balance Sheet and Profit & Loss Account complies
 with the requirement of Mandatory Accounting standards referred to in
 section 211 (3 c) of the Companies Act 1956, except as otherwise
 stated in notes forming part of accounts as per schedule  16
 
 v. In our opinion and to the best of our information and according to
 the explanation given to us the accounts subject to.
 
 Note No. 4 of Schedule No. 16 regarding non provision of doubtful
 debts of Rs. 6.62 lacs and interest of Rs. 477.01 lacs due to which
 the loss is understated to that extent and read together with other
 notes in schedule 16 thereon give the information required by the
 Companies Act, 1956, in the manners so required and give a true and
 fair view:
 
 (a) In the case of Balance Sheet of the state of affairs of the
 Company as at 31st March 2002.
 
 (b) In the case of Profit & Loss Accounts, of the Loss for the year
 ended on that date.
 
 ANNEXURE TO THE AUDJTORS REPORT
 
 TO THE MEMBERS OF MESSERS TOWELS INDIA EXPORTS LIMITED.
 
 ( Referred to in Paragraph 1 of our Report of even date )
 
 1. The Company is maintaining proper records showing full particulars
 including quantitative details and Situation of fixed assets. These
 fixed assets have been physically verified by the Management during
 the period under reference and no material discrepancies were noticed.
 
 2. None of the fixed assets have been revalued during the year.
 
 3. The Stocks of finished goods, stores and spares, raw materials of
 the Company have been physically verified by the management at
 reasonable intervals.
 
 4. In our opinion and according to the information and explanation
 given to us, the procedure of physical verification of stocks followed
 by the Management were found to be reasonable and adequate in relation
 to the size of the Company and the nature of its business.
 
 5. The discrepancies noticed on physical verification of stocks as
 compared to book records, have been dealt with in the books of
 accounts.
 
 6. On the basis of our examination the valuation of the stock is fair
 and proper in accordance with the normally accepted accounting
 principles and is on the same basis as in the preceding year.
 
 7. The Company has taken unsecured loans from Directors and their
 relatives listed in the register maintained under section 301 of the
 Companies Act, 1956. The terms and conditions of the loans are prima
 facie not 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 under the same management
 within the meaning of sub-section (1B) of section 370 of the Companies
 Act, 1956.
 
 9. Loans and Advances in the nature of interest free loans have been
 given to employees of the Company and others. There is no stipulation
 of time for recovery.
 
 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 with regard to purchase of stores, raw materials including
 components, plants and machinery, equipment and other assets and with
 regard to sale of goods.
 
 11. According to information and explanations given to us there were
 no transactions of purchase and sale of goods, material and services
 in pursuance of contract or arrangement, entered in the register
 maintained in terms of Sec.301 (2), of the Companies Act 1956,
 aggregating during the period to Rs.50000/- or more in respect of each
 party.
 
 12. As explained to us, Company has a regular procedure for the
 determination of unserviceable or damaged stores, spare parts, raw
 materials and components.
 
 13. According to the information and explanations given to us the
 Company has not accepted any deposits from the Public except as stated
 on the Balance Sheet.
 
 14. According to information given to us the Company has no
 by-products. The reasonable records are maintained for sale and
 disposal of scrap.
 
 15. As explained to us, the Company has got internal audit system.
 However, in our opinion it needs to be strengthened to make it
 commensurate with the size of the Company and the nature of its
 business.
 
 16. Maintenance of cost records has been prescribed by the Central
 Government under section 209 (1) (d) of the Companies Act, 1956 in
 respect of the products of the Company. We have been informed that the
 said records are not prepared systematically and cannot be checked.
 
 17. The Provident Fund dues of Rs. 34,45,862/- which had fallen due
 for deposit with the appropriate authorities had not been so deposited
 as at 31.3.2002. Out of these Rs. 2,06,818/- have been deposited
 subsequently. We have been informed that E.S.I.S. is not applicable.
 
 18. According to the information and explanation given to us, there
 were no undisputed amounts payable in respect of Income-Tax and
 Sales-Tax except T.D.S. of Rs. 18,60,138/- and Professional Tax Rs.
 1,96,990/- for the period for more than six months from the date they
 become payable out of which T.D.S. Rs. 7,490/- has been deposited
 subsequently.
 
 19. According to the information and explanation given to us and the
 records examined by us, no personal expenses other than those payable
 under contractual obligations and / or in accordance with the
 generally accepted business practices have been charged to revenue
 accounts.
 
 20. In the case of Companys service activities we further Report as
 follows:
 
 (a) The Management directly supervises the receipts, issues and
 consumption of materials and stores. However, there is no system of
 allocation of materials and man-hours consumed to the relative job.
 
 (b) As explained to us, there is a reasonable system of authorisation
 by the Management, with necessary control in the issue of stores and
 allocation of labour jobs. In our opinion and according to information
 and explanations given to us there is a reasonable system of internal
 control commensurate with the size of the Company and the nature of
 its business.
 
 21. The Company is a sick Industrial Company, within the meaning of
 clause (o) of sub-section (1) of Section 3 of the Sick Industrial
 Companies (Special Provisions) Act, 1985.
 
                                                  For K.M.VASUDEVA & CO.
                                                   CHARTERED ACCOUNTANTS
 
 MUMBAI                                                   (K.M.VASUDEVA)
 DATE : 28th June, 2002                                       PROPRIETOR
Source : Dion Global Solutions Limited
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