INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

xv)xvi)xvii)xviii)xix)xx)xxi)xxii)The Company has an internal audit system commensurate with the size and nature of its business.The books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of costrecords under Section 209(1) (d) of the Companies Act, 1956 have broadly been reviewed and prima facie, the prescribed accounts andrecords have been made and maintained. However, these are not required to be examined by us in detail with a view to determinewhether they are accurate or complete.The Company is regular in depositing Provident Fund dues and Employees State Insurance dues with the appropriate authorities.No undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs duty and Excise duty were outstanding as at 31 stMarch, 2001 for a period of more than six months from the date they became payable.No personal expenses of employees or directors have been charged to revenue account other than those payable under contractualobligations or in accordance with generally accepted business practice.The Company is not a Sick Industrial Company within the meaning of clause (o) of sub-Section (1) of Section 3 of the Sick IndustrialCompanies (Special Provisions) Act, 1985.In respect of the service activities, the Company has a reasonable system of recording receipts, issues and consumption of materials andstores commensurate with its size and nature of its business. In our opinion, the system provides for a reasonable allocation of materialsconsumed and man hours utilised to the relative jobs. Further, there is a reasonable system of authorisation at proper levels and anadequate internal control system commensurate with the size of the Company and the nature of its business on the issue of stores andallocation of stores and labour to jobs.In respect of trading activities, damaged goods which were not significant have been determined and necessary provision for losses havebeen made in the accounts.Further to the above, we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for thepurposes of our audit.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 booksand proper returns adequate for the purposes of our audit have been received from the branches not visited by us. The Branch Auditors’ Reportshave been forwarded to us and are appropriately dealt with.In our opinion, the Balance Sheet and the Profit and Loss Account have prepared in compliance with the Accounting Standards referred in Section211 (3C) of the Companies Act, 1956.On the basis of confirmations received from the directors and taken on record by the Board of Directors, none of the director is disqualified frombeing appointed as a director as on the dates certified by the directors under Section 274(1)(g) of the Companies Act, 1956.In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notesappearing in Schedule “19” and elsewhere in the accounts give the information required by the Companies Act, 1956 in the manner so requiredand the Balance Sheet and the Profit and Loss Account give a true and fair view, of the state of the Company’s affairs as at the close of the year andof the profit for the year, respectively.For LODHA & CO.,Chartered AccountantsN.KISHORE BAFNAPartnerFor KHIMJI KUNVERJI & CO.Chartered AccountantsSHIVJI K. VIKAMSEYPartnerMumbai, Date: 26th April, 200141