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श्रीश्मा फाइन केमिकल्स

बीएसई: 507000  |  NSE: N.A  |  ISIN:  |  Pharmaceuticals

खोजें श्रीश्मा फाइन केमिकल्स कनेक्शन
लेखा परीक्षकों की रिपोर्ट वर्षांत : Mar '05
We have audited the attached Balance Sheet of SHRISHMA FINE CHEMICALS &
 PHARMACEUTICALS (KARNATAKA) LIMITED (the company) as at 31st March 2005
 and the Profit and Loss Account of the Company for the year ended on
 that date annexed thereto and also Cash Flow Statement for the year
 ended on that date. 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.  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 management, as well as
 evaluating the overall presentation of the Financial Statements. We
 believe that our audit provides a reasonable basis for our opinion.
 
 I.  As required by the Companies (Auditors Report) Order, 2003 as
 amended by the Companies (Auditors Report) (Amendment) Order, 2004
 issued by the Central Government of India in terms of Section 227(4A)
 of the Companies Act, 1956, we have given in the annexure a statement
 on the matter specified in paragraph 4 and 5 of the said order, to the
 extent they are. applicable to the Company.
 
 II.  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
 audit, except that the valuation of stocks of raw materials, process
 stock, stores and spares and finished goods as on 31s March, 2005 are
 as determined by the management.
 
 (b) m 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
 books.
 
 (c) The Balance Sheet and Profit and Loss Account dealt with by this
 report are in agreement with the books of account.
 
 (d) In our opinion, the profit and Loss Account and balance sheet
 comply with the Accounting Standards referred to in and section (3C) of
 Section 211 of the Companies Act, 1956 to the extent they are
 applicable to the Company, except that as explained in accounting
 policy 1.d, the valuation of inventory has been done without
 determining its cost, which is in non compliance with AS-2 on
 valuation of inventories
 
 (e) In our opinion and to the best of our information and according to
 the explanation given to us, the accounts give the information required
 by the Companies Act, 1956, in the manner so required, except that as
 mentioned in Note 12, the details of amounts due to small scale
 industrial unit creditors are not available.
 
 (f) The Company had defaulted in 1993 in redemption of its debentures,
 which have still remained Partly unredeemed. None of the Directors of
 the Company as on 31st March 2005, was a director in 1993. In light of
 these facts and as per a legal advice obtained by the Company and based
 upon the written representations received from the Directors (except
 one) and taken on record by the Board of Directors of the Company, none
 of the Directors, (except one), is prima facie, disqualified from being
 appointed as-a Director in terms of clause (g) of sub section (1) of
 Section 274 of the Companies Act, 1956.
 
 (g) The Companys rehabilitation scheme submitted to the BIFR was not
 approved because of elapse of time and IDBI the Operating Agency has
 been asked to get new revival proposals and the Company has also been
 asked to re- submit its proposal. In the meanwhile, operations of the
 Company continue as in the past and the management is confident of
 maintaining the position until final decision is taken by BIFR.
 However, the networth of the Company is fully eroded due to heavy
 losses year after year. In view of above, we are unable to comment
 whether the company can be considered as a Going Concern. In view of
 this, we are unable to judge whether the Company can be considered as a
 Going Concern and whether it would be in position to meet its
 liabilities.
 
 (h) We further report that:
 
 (i) No provision has been made in the accounts in respect of (a)
 depreciation on fixed assets amounting to Rs. 77.13 lakhs, as mentioned
 in Note No. 2, (b) of disputed excise duty demand of Rs. 16.66 lakhs as
 mentioned in No. 5.3, (c) of certain obligations as mentioned in Note
 No.  3, approximate amount Rs. 137.18 lakhs plus interest @ 18% p.a.
 thereon, as mentioned in Note No. 6 and (d) of interest of Rs. 1612.43
 lakhs, as mentioned in Note No.7.
 
 (ii) As mentioned in Note No.8, the Company has recalculated with
 retrospective effect from 1995 interest on certain borrowings at a
 concessional rate of interest proposed in the rehabilitation scheme
 before the BIFR, which was, due to time lapse, rejected by BIFR and a
 new Rehabilitation Package is to be prepared by the Company.
 Accordingly, interest of Rs. 82.28 lakhs has been written back in the
 Profit and Loss account for the year 2000-2001.
 
 (iii) Full credit of concessions offered by the Financial institutions
 and Banks amounting to Rs. 686.26 Lakhs has been given in the accounts
 of the Company for the period 1993- 94. However, the stipulations laid
 down by them are yet to be complied with by the Company.
 
 (iv) Due to the above, the loss for the period is understated by Rs.
 1843.40 lakhs, the relevant liabilities are understated by Rs.1766.27
 lakhs and the net block of fixed assets is overstated by Rs. 77.13
 lakhs.
 
 (v) The amounts due from/to Sundry Debtors and Creditors, of loans and
 advances given, dues to Banks and Financial Institutions and others in
 respect of outstanding loans and interest thereon, and certain balances
 in current and margin accounts with banks are subject to confirmations.
 
 (vi) As explained in Note No. 1.d, the-valuation of stock of finished
 goods and the process stock has been done based on selling price,
 without determining the cost of individual item.
 
 (vii)No provision is made towards debenture redemption reserve due to
 losses.
 
 (viii)Out of the contingent liability disclosed in note no 5.1, details
 in respect of Rs 65.64 lakhs have not been furnished to us.
 
 Subject to the above observations, the said accounts give a true and
 fair view in conformity with the accounting principles generally
 accepted in India.
 
 (a) In so far it relates to Balance Sheet, of the state of affairs of
 the Company as at 31st March, 2005,
 
 (b) In so far it relates to the Profit & Loss Account, of the loss for
 the period ended on that date.
 
 (c) In the case of Cash Flow Statements, of the Cash Flow for the year
 ended on that date.
 
 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF EVEN DATE TO
 THE MEMBERS OF SHRISHMA FINE CHEMICALS & PHARMACEUTICALS ( KARNATAKA)
 LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2005.
 
 I FIXED ASSETS:
 
 1.  The Company is in the process of compiling necessary details to
 maintain adequate records in respect of its fixed assets and no
 physical verification of such assets was carried out by management
 during the year.
 
 2.  We are unable to comment upon the discrepancies, if any, in the
 absence of physical verification.
 
 3.  During the year, the Company has not disposed off major part of its
 fixed assets.
 
 II INVENTORY:
 
 4.  We are informed that the inventories of the Company have been
 physically verified by the Management during the year.
 
 5.  As explained 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.
 
 6.  The Company has maintained proper records of inventory. The
 discrepancies between the physical stocks and the book stocks noticed
 on physical verification as mentioned in paragraph 4 above have been
 properly dealt with in the books of account.
 
 III LOANS AND BORROWINGS:
 
 7.  The Company has not taken / granted any loan from / to a Company
 covered in the register maintained under Section 301 of the Act, 1956.
 
 8.  According to the records of the Company, it has defaulted in
 repayment of its dues to financial institutions, banks and to debenture
 holders of amounts aggregating Rs 458.91 lacs , Rs 447 lacs and Rs
 729.88 respectively. The default has continued since period prior to
 1994 since when the company is under the control of new management. The
 amounts are subject to confirmations from lending banks and
 institutions.
 
 9.  The company has not taken any term loan during the year.
 
 IV INTERNAL CONTROLS:
 
 10.  The existing internal control procedures for the purchases of
 inventory, purchase of fixed assets and for sate of goods needs to be
 strengthened to be commensurate with the size of the company and the
 nature of its business.
 
 11 The Company does not have an internal audit system.
 
 12 As per the information and explanations given to us and on the basis
 of examination of records, no fraud on or by the Company was noticed or
 reported during the year.
 
 V LEGAL COMPLIANCE:
 
 13 The Company has not accepted any deposits under the provisions of
 Section 58A and 58AA of the Act and the rules framed there under.
 
 14 We are informed that the Company is required to maintain cost
 records by the order made by the Central Government under section 209
 (1) (d) of the Companies Act, 1956. However such records are under
 compilation.
 
 15 In respect of debentures issued by company prior to 1994, the
 debenture trust deed and documents for creation of securities have not
 been made available for our reveiw.
 
 VI STATUTORY DUES:
 
 16 According to the books and records as produced and examined by us in
 accordance with generally accepted auditing practices in India and also
 based on Management representations, undisputed statutory dues have
 generally been regularly deposited, by the Company during the year with
 the appropriate authorities in India except in case of Provident Fund
 liability of Rs.40,815/-, ESIC Rs.6,648/-, Income Tax Rs.1,06,164/- and
 sales tax amounting to Rs.26.99 lacs.
 
 17.  As at March 31, 2005, there have been no disputed dues which have
 not been deposited with the respective authorities in respect of Income
 Tax, Wealth tax, Excise Duty and Cess, except disputed excise duty dues
 for Rs 1666000/- which are pending before CEGAT.
 
 VII FINANCIAL POSITION:
 
 18.  The Company has accumulated losses, which are more than fifty
 percent of its networth. The company has incurred cash loss in the
 financial year and also in the immediately preceding such financial
 year.
 
 19.  On the basis of review of utilisation of funds which is based on
 overall examination of the balance sheet of the company, related
 information as made available to us and as represented to us by the
 Management, funds raised on short term basis have not been used for
 long term purpose.
 
 VIII MISCELLANEOUS:
 
 20.  According to the information and explanations given to us, we are
 of the opinion that the transactions that need to be entered into the
 register maintained under section 301 of the Companies Act, 1956 have
 been so entered.
 
 21 According to the information and explanations given to us, the
 nature of services rendered in persuance of arrangements entered into
 the register maintained under Section 301 of the Companies Act, 1956
 and aggregating to Rs.  500000/ or more in respect of each party were
 not entered with any other party and hence, the rates charged were not
 comparable.
 
 22 The Company has not dealt or traded in shares, securities,
 debentures or other investments during the year.
 
 23 The Company has not given any guarantee for loans taken by others
 from banks or financial institutions.
 
 24 As the clause nos. (i) (c), (iii) (b),(iiii) (c), (iii) (d).  (xii),
 (xiii), (xviii) and (xx) are not applicable to the Company, these are
 not commented upon.
 
                                                   For HARIBHAKTI & CO.
                                                 Chartered Accountants
 
 Place     :Mumbai                                        CHETAN DESAI
 Dated     :October 24,  2005                                  Partner
                                             Membership Number 17000
स्रोत: रेलीगरे टेचनोवा

न्यूज़ फ़्लैश

  • MARKET CUES : FIIs ने कैश में `271 Cr की बिकवाली की
  • MARKET CUES : DIIs ने कैश में `309 Cr की खरीदारी की
  • MARKET CUES : FIIs ने F&O में `58 Cr की बिकवाली की
  • MARKET CUES : इंडेक्स फ्यूचर्स में `299 Cr की बिकवाली की
  • MARKET CUES : इंडेक्स ऑप्शंस में `413 Cr की खरीदारी की
  • MARKET CUES : स्टॉक फ्यूचर्स में `124 Cr की बिकवाली की
  • HSBC ON CASTROL : BUY रेटिंग, लक्ष्य बढ़ाकर `165/Sh
  • MS ON FUTURE RETAIL : Overweight रेटिंग, लक्ष्य घटाकर `540/Sh
  • CREDIT SUISSE ON ITC : Outperform रेटिंग, लक्ष्य `330/Sh
  • MORGAN STANLEY ON GRASIM : Overweight रेटिंग, लक्ष्य `875/Sh

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