Mar 31, 2015
We have audited the accompanying financial statements of M/S GARWARE
MARINE INDUSTRIES LTD ("the Company"), which comprise of the Balance
Sheet as at March 31,2015, and the Statement of Profit and Loss for the
period ended, and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The company's Board of Directors is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flow of the Company
in accordance with the accounting principles generally accepted in
India, including the Accounting Standards specified under the Section
133 of the Companies Act, 2013, read with rule 7 of the
Companies(Accounts) Rules 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us and subject to Note No.22(6) regarding to
non-provision for diminution in the value of shares and amount
recoverable from GARWARE NYLONS LTD the financial statements give the
information required by the Act in the manner so required, and give a
true and fair view in conformity with the accounting principles
generally accepted in India
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(ii) In the case of Statement of Profit & Loss, of the loss for the
period ended on that date ;
(iii) In the case of the cash flow statement, of the cash flows for the
period ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
As required under provisions of section 143(3) of the Companies Act,
2013, we report that:
(a) We have sought and obtained all the information and explanation
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
(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 books;
( c) The Balance Sheet, Statement of Profit and Loss dealt with by this
report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the
accounting standards specified under section 133 of the Companies Act,
2013, read with rule 7 of the Companies( Accounts ) Rules 2014.
(e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors ,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of sub-section (2) of section 164 of
the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies ( Audit and
Auditors) 2014, in our opinion and to the best of our information and
according to the explanations given to us;
a) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements- Refer note 22(1) to the
financial statements.
b) In our opinion and as per the information and explanations provides
to us, the Company has not entered into any long-term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses and'
c) There has been no delay in transferring the amounts, required to be
transferred , to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
REFERRED TO IN PARAGRAPH OF OUR REPORT OF EVEN DATE
In the Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the period ended
31 March 2015, we report that:
1 In respect of its Fixed Assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year in a phased manner, which in our opinion, is reasonable, having
regard to the size of the Company and nature of the assets. , No
material discrepancies were noticed on such verification. In our
opinion, the Company has not disposed of substantial part of fixed
assets during the period and the going concern status of the Company is
not affected.
2 In respect of its Inventories
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3 The Company has not granted loan to Companies, firms or other parties
covered in the register maintained under Section 189 of the Companies
Act, 2013.
The Company has not granted unsecured loans and Inter-Corporate
Deposits to Companies covered in the Register maintained under Section
189 of the Act. Hence provisions of clauses (iii)(a) & (c) of paragraph
3 of the order are not applicable to the Company.
4 In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. We have not observed
any major weakness in the internal control system during the course of
the audit.
5 The Company has not accepted any deposits from the public.
6 The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the sales and
services rendered by the Company.
7 In respect of undisputed statutory dues
According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the period
by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of employees' state
insurance and duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31 March
2015 for a period of more than six months from the date they became
payable.
8 In respect of accumulated losses & Cash Losses
The Company has accumulated losses of Rs. 431.52 lakh Including cash
losses of Rs. 74.79 lakh incurred during the financial period covered
by our audit.
9 The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
10 In our opinion and according to the information and the explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
11 The Company did not have any term loans outstanding during the year.
12 According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For RAMAN S. SHAH & ASSOCIATES
Chartered Accountants
Firm Reg. No. 119891W
SANTOSH A. SANKHE
Partner
PLACE : Mumbai M.No.100976
DATE: 28th May, 2015
Jun 30, 2014
1. We have audited the attached Balance Sheet of M/S. GARWARE MARINE
INDUSTRIES LIMITED as at 30th JUNE, 2014 and also the Profit and Loss
Account for the year ended on that date and Cash Flow statement 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.
2. We have 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to 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 purposes of our
audit.
(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 books.
(c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account and with the audited
returns from the branches.
(d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
(e) On the basis of written representations received from the
directors, as on 30th JUNE, 2014 and taken on record by the Board of
Directors we report that none of the directors is disqualified as on
30th JUNE, 2014 from being appointed as a director in terms of clause
(g) of sub-section (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,and subject to Note No.22(7) regarding to
non-provision for dimunition in the value of shares and amount
recoverable from GARWARE NYLONS LTD. , the said accounts give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India :
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30thJUNE, 2014 and
(ii) In the case of the Profit and Loss Account, of the loss for the
year ended on date.
ANNEXURE TO AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH OF OUR REPORT OF EVEN DATE
1 a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year in a phased periodical manner which, in our opinion, is
reasonable, having regard to the size of the Company and nature of the
assets. No material discrepancies were noticed on such verification.
c. In our opinion, even though the Company has disposed of substantial
part of fixed assets of manufacturing division at Ahmednagar during the
year, the going concern status of the Company is not affected due to
the continuation of repairing and maintenance activities.
2 a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3 a. We are informed that the Company has not taken unsecured loans,
from companies, listed in the register maintained under Section 301 of
the Companies Act, 1956 on terms and conditions which are prejudicial
to the interest of the Company.
b. The Company has not granted any loan, secured or unsecured to
companies, firms, other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods &
services. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5 a. In our opinion and according to the information and explanations
given to us the transactions that need to be entered in the register
maintained under section 301 of the Companies Act, 1956, have been so
entered.
b. According to the information and explanations given to us the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rupees Five Lakhs in respect of any party
during the period have been made at prices which are reasonable having
regards to prevailing market prices at the relevant time in the opinion
of the management.
6 The Company has not accepted any deposits from the public. Hence the
requirements of clause (vi) of paragraph 4 of the Order is not
applicable to the Company.
7 In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8 The Central government has not prescribed maintenance of the cost
records under section 209(1 )(d) of the Companies Act, 1956 in the year
under review for any of the products of the Company.
9 According to the records of the Company, the Company is regular in
depositing with appropriate authorities, any undisputed statutory dues
including Provident Fund, Investors Education and Protection Fund,
Employee''s State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues
applicable to it.
10 The Company has accumulated losses of Rs. 355.28 lakhs and has
incurred cash losses of Rs. 340.47 lakhs during the year covered by our
audit or in the immediately preceding financial year.
11 In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of dues to
financial institutions or bank or debentureholder .
12 In our opinion and according to the information & explanation given
to us , no loan and advances have been granted by the Company on the
basis of security by way of pledge of shares , debentures and other
securities.
13 In our opinion,the Company is not a Chit fund, Nidhi or mutual
benefit Society. Hence, the requirements of clause (xiii) of paragraph
4 of the Order are not applicable to the Company.
14 The Company is not dealing or trading in shares, securities,
debentures and other investments. Hence the requirements of clause
(xiv) of paragraph 4 of the Order is not applicable to the Company.
15 According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from the
Banks.
16 In our opinion and according to the information and explanations
given to us, the Company has not taken any term loans during the year
from banks and therefore, the provisions of clause 4(xvi) of the Order
are not applicable to the Company.
17 According to the information and explanations given to us, no funds
raised on short-term basis have been used for long-term investment.
Similarly, no funds raised on long term basis have been used for
short-term investment.
18 The Company has not made preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
19 The Company has not issued any debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order is not applicable to the
Company.
20 The Company has not raised any money by way of public issues during
the year,
21 In our opinion & according to the information and explanations given
to us, a fraud on or by the Company has not been noticed or reported
during the year.
For RAMAN S. SHAH & ASSOCIATES
Chartered Accountants
Firm Reg. No. 119891W
SANTOSH A. SANKHE
Partner
Place : Mumbai M.No.100976
Date : 30th August, 2014
Jun 30, 2010
1. We have audited the attached Balance Sheet of M/S. GARWARE MARINE
INDUSTRIES LIMITED as at 30th JUNE, 2010 and also the Profit and Loss
Account for the year ended on that date and Cash Flow statement annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We have 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that :-
(a) We have obtained ail the information and explanations, which to the
best of our knowledge and beiief were necessary for the purposes of our
audit.
(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 books.
(c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account and with the audited
returns from the branches
(d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
(e) On the basis of written representations received from the
directors, as on 30th JUNE, 2010 and taken on record by the Board of
Directors we report that none of the directors is disqualified as on
30th JUNE, 2010 from being appointed as a director in terms of clause
(g) of sub-section (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,and subject to (I) Note No.1(g) regarding
non-provision of gratuity liability,(II) Note No.9 regarding to
non-provision for dimunition in the value of shares and amount
recoverable from GARWARE NYLONS LTD., the said accounts give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India :
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th JUNE. 2010 and
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
REFERRED TO IN PARAGRAPH OF OUR REPORT OF EVEN DATE
1 a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
b. According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year in a phased periodical manner which, in our opinion, is
reasonable, having regard to the size of the Company and nature of the
assets. No material discrepancies were noticed on such verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year, and the going concern status of the
Company is not affected.
2 a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3 a. We are informed that the Company has taken unsecured loans, from
companies, listed in the register maintained under Section 301 of the
Companies Act, 1956 on terms and conditions which are not prejudicial
to the interest of the Company.
b. The Company has not granted any loan, secured or unsecured to
companies, firms, other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods &
services. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5 a. In our opinion and according to the information and explanations
given to us the transactions that need to be entered in the register
maintained under section 301 of the Companies Act, 1956. have been so
entered.
b. According to the information and explanations given to us the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rupees Five Lakhs in respect of any party
during the period have been made at prices which are reasonable having
regards to prevailing market prices at the relevant time in the opinion
of the management.
6 The Company has not accepted any deposits from the public. Hence the
requirements of clause (vi) of paragraph 4 of the Order is not
applicable to the Company.
7 In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8 The Central government has not prescribed maintenance of the cost
records under section 209(1 ){d) of the Companies Act, 1956 in the year
under review for any of the products of the Company.
9 According to the information and explanations given to us, there are
no disputed statutory dues payable in respect of Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess which
are outstanding as at for a period of more than six months from the
date they became payable
10 The Company has accumulated losses of Rs. 45.18 lakhs and has not
incurred any cash losses during the year covered by our audit or in the
immediately preceding financial year.
11 In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of dues to
financial institutions or bank or debentureholder.
12 In our opinion and according to the information & explantion given
to us , no loan and advances have been granted by the Company on the
basis of security by way of pledge of shares , debentures and other
securities.
13 In our opinion,the Company is not a Chit fund, Nidhi or mutual
benefit Society. Hence, the requirements of clause (xiii) of paragraph
4 of the Order is not applicable to the Company.
14 The Company is not dealing or trading in shares, securities,
debentures and other investments. Hence the requirements of clause
(xiv) of paragraph 4 of the Order is not applicable to the Company.
15 According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from the
Banks.
16 In our opinion and according to the information and explanations
given to us, the company has not taken any term loans during the year
from banks and therefore, the provisions of clause 4(xvi) of the Order
are not applicable to the company.
17 According to the information and explanations given to us, no funds
raised on short-term basis have been used for long-term investment.
Similarly, no funds raised on long term basis have been used for
short-term investment.
18 The Company has not made preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
19 The Company has not issued any debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order is not applicable to the
Company.
20 The Company has not raised any money by way of public issues during
the year.except conversion of warrants into equity shares referred to
in Note 11 to Schedule K to the financial statements.
21 In our opinion & according to the information and explanations given
to us, a fraud on or by the Company has not been noticed or reported
during the year.
For RAMAN S. SHAH & ASSOCIATES
Chartered Accountants
Firm Reg. No. 119391W
SANTOSH A. SANKHE
Partner
PLACE : Mumbai M.No.100976
DATE : 9th November, 2010
Dec 31, 2000
We have audited the attached Balance Sheet of Garware Marine Industries
Limited as at 31st December, 2000 and the Profit and Loss Account 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 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 and 5 of the said
Order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we state 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
audit.
(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 such
books.
(c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the Books of Account.
(d) In our opinion, the Balance Sheet and Profit and Loss Account
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956, to the extent applicable.
(e) In our opinion and to the best of our information and according to
the explanations given to us, and subject to (1) Note No. 3 (a) and (b)
regarding deferment of revenue expenditure amounting to Rs. 13,15,403/-
and (II) Note No. 13 regarding non-provision for gratuity liability to
the extent of Rs. 7,00,000/-, (III) Note No. 9 regarding non-provision
for dimunition in the value of shares and amounts recoverable from
GARWARE NYLONS LTD., (IV) Note No. 10 and 11 regarding non-provision of
penal interest and liquidated damages which are unascertainable in the
absence of confirmations from UTI and BOI (Mututal Fund) and (V) Note
No. 12 regarding non-provision of lease rentals amounting to Rs. 21.39
lakhs and penal interest due to arrears of Lease Rentals payable to
IDBI, In view of these remarks, we are unable to express our opinion on
the consequential effect if any, on the Companys Profit/Loss for the
period and/or its assets or liabilities as at the period and, the said
Balance Sheet and the Profit and Loss Account read together with the
notes in Schedule L thereon give the information required by the
Companies Act, 1956 in the manner so required and gives a true and fair
view :
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2000
and
(ii) in the case of the Profit & Loss Account, Profit of the Company
for the year ended on the that date.
ANNEXURE TO AUDITORS REPORT RE : GARWARE MARINE INDUSTRIES LIMITED
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 situation of all fixed assets. Fixed
assets register is in the process of updating as reported in the
preceeding year. The fixed assets have been physically verified by the
management during the year as per its system of physical verification
of all its fixed assets once every year. We are informed that no
material discrepancies have been noticed on such verification. In our
opinion, the frequency of verification is reasonable.
2. None of the fixed assets have been revalued during the year.
3. The stocks of finished goods, spare parts and raw materials have
been physically verified during the year by the management; In our
opinion, the frequency of verification is reasonable.
4. The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. The discrepancies noticed on verification between the physical
stocks and the book records were not material.
6. On the basis of our examination of stock records, we are of the
opinion that the valuation of stocks is fair and proper in accordance
witht the normally accepted accounting principles, and is on the same
basis as in the preceeding year.
7. The Company has taken loans from companies, listed in the register
maintained under Section 301 of the Companies Act, 1956. The rates of
interest and other terms and conditions of such loans are prima facie
not prejudicial to the interest of the Company. The terms of repayment
are not stipulated. We are informed that there is no Company under the
same management as defined under sub-section (1B) of Section 370 of the
Companies Act, 1956.
8. 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.
9. The Company has paid advances to Group Companies, against supplies
namely Garware Goa Nets Ltd. Rs. 2,18,01,956/- (Net), Garware Nylons
Ltd. Rs. 1,05,87,676/- (Net) and Garware Shipping Corporation Ltd. Rs.
1,09,12,757/- (Net) include under Sundry Debtors. In the opinion of the
Board of Directors, all these amounts are recoverable and good except
amount recoverable from Garware Nylons Ltd., which is under
liquidation. These are also subject to reconciliation. Since the terms
of repayment of these advances are not yet stipulated, we are unable to
express our opinion whether aforesaid advances are prima facie
prejudicial to the interest of the Company.
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 purchases of stores, raw materials including
components, plant and machinery, equipment and other assets and with
regard to the sale of goods.
11. In our opinion and according to the information and explanations,
given to us, the transactions of purchase of goods and materials and
sale of goods, materials and services, made in pursuance of contracts
or arrangements entered in the registers maintained under Section 301
of the Companies Act, 1956 and aggregating during the year of 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 or services have been made with other parties.
12. As explained to us, the Company has a regular procedure for the
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provision has been made in the accounts for
the loss arising on the items so determined.
13. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
14. In our opinion, reasonable records have been maintained by the
Company for sale and disposal of realisable by-products and scrap
wherever applicable.
15. The Company has an internal audit sysytem which covers all its
depots and head office. In our opinion, the Companys present internal
audit system needs to be re-aiigned so as to be commensurate with the
size of the Company and the nature of its business.
16. We are informed that no cost records are prescribed by the Central
Government under Section 209(1 )(d) of the Companies Act, 1956 for the
products of the Company.
17. According to the records of the Company Employees State Insurance
dues have been, in general, regularly deposited with the appropriate
authorities during the year. In the case of Provident Fund, generally
there have been substantial delays in depositing the Provident Fund
dues with appropriate authorities.
18. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding as at 31st December,
2000 For a period of more than 6 months From the date they became
payable.
19. According to the information and explanations given to 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 business practice.
20. The Company is not 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 THAKUR & GUPTA ASSOCIATES
CHARTERED ACCOUNTANTS
(S. B. GUPTA)
Partner
Mumbai
Date : 31st May, 2001