Year : 2010-11 - CCL

ANNUAL REPORT 2010-11 ________________________________________________________
AUDITORS’ REPORT
MANAGEMENT’S REPLY
of the company and nature of its business
relating to purchase of inventory and fixed
assets and for sale of goods and services
subject to certain lapses, such as long time
lag between receipt of materials and
recording of liabilities and/or adjustment with
the advances, non maintenance of proper
records for unexecuted orders and non
receipt of goods ,or non/delayed accountal
of such cases for which payments were
made, non maintenance of inward bill
register at the basic operational unit etc. As
per our test checks and as reported by the
Branch Auditors there is no serious
continuing failure to correct major weakness
in internal control system.
5. In respect of transactions covered under
Section 301 of the Companies Act, 1956 :
(a)
(b)
According to the information and
explanation given to us, in our opinion the
Company has entered particulars of
contracts or arrangements referred to in
Section 301 of the Act in the register
maintained under that Section.
According to the information and
explanation given to us, no transactions in
pursuance of such contracts or
arrangements have been made.
No comments.
No comments.
6. The Company has not accepted deposits
from the public within the meaning of
Section 58A and 58 AA or any other relevant
provisions of the Companies Act, 1956 and
the rules framed there under.
7. The Company has an Internal Audit System.
Reports of Internal Auditors pertaining to the
financial year under audit were not available
in some area for our or Branch auditors'
reference. Further, the Coverage of Internal
Audit is for the calendar year and not for
whole Financial Year. The internal audit, in
No comments.
Presently, Audit Report for January to December
i.e. the calendar year is made available. Thus,
the statutory auditors have access to the internal
audit report on a continuous basis. As far as the
scope and coverage of transaction audit is
concerned, the same is determined uniformly by
the holding company i.e. Coal India Limited, for
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