INDIAN RAYON AND INDUSTRIES LIMITED - Aditya Birla Nuvo, Ltd

ADITYA VIKRAM GLOBAL TRADING HOUSE LTDDIRECTORS’ REPORTThe directors present their first report and the audited financial statements of the Companyfor the period ended 31 December 2000.PRINCIPAL ACTIVITYThe principal activity of the Company is to acquire brand, technical know-how and undertakeother activities, carry on business of general merchant and traders, manufacturers’ agentsand representatives to enhance the global presence of the holding company.RESULTS AND DIVIDENDSThe Company’s profit for the period ended 31 December 2000 is USD 377,884.AUDITORSWith a view to conserve the cash for repayment of debt, the directors do not recommend thepayment of a dividend for the period ended 31 December 2000.STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE FINANCIALSTATEMENTSCompany law requires the directors to prepare financial statements for each financial yearwhich give a true and fair view of the state of affairs and of the profit or loss of the Company.In preparing those financial statements, the directors are required to:By Order of the Board• select suitable accounting policies and then apply them consistently;• make judgements and estimates that are reasonable and prudent;International Financial Services Ltd.SECRETARY• state whether applicable accounting standards have been followed, subject to anymaterial departures disclosed and explained in the financial statements, andMauritius, 9 April, 2001.AUDITOR’S REPORTTO THE SHAREHOLDERS OFADITYA VIKRAM GLOBAL TRADING HOUSE LTDWe have audited the financial statements set out on pages 2 to 8 (Page 63 & 64).Respective responsibilities of directors and auditorsThe directors are responsible for the preparation of financial statements which disclose withreasonable accuracy at any time the financial position of the company and for ensuring thatthe accounts comply with the Companies Act 1984 in so far as applicable to Offshore Companies.They are also responsible for safeguarding the assets of the company and hence for Opiniontaking reasonable steps for the prevention and detection of fraud and other irregularities. Itis our responsibility to form an independent opinion, based on our audit, on those financialstatements and to report our opinion to you.Basis of opinionWe conducted our audit in accordance with International Standards on Auditing. An auditincludes examination, on a test basis, of evidence relevant to the amounts and disclosures inthe financial statements. It also includes an assessment of the significant estimates and judgementsmade by directors in the preparation of financial statements, and of whether theDeloitte & Toucheaccounting policies are appropriate to the company’s circumstances, consistently applied andChartered Accountantsadequately disclosed.We planned and performed our audit so as to obtain all the information and explanationswhich we considered necessary in order to provide us with sufficient evidence to give reason- Mauritius, 9 April, 2001.123 62• prepare the financial statements on the going concern basis unless it is inappropriate topresume that the Company will continue in business.The directors confirm that they have complied with the above requirements in preparing thefinancial statements.The directors are responsible for keeping proper accounting records which disclose withreasonable accuracy at any time the financial position of the Company and to enable them toensure that the financial statements comply with the Companies Act 1984. They are alsoresponsible for safeguarding the assets of the Company and hence for taking reasonablesteps for the prevention and detection of fraud and other irregularities.Deloitte & Touche have indicated their willingness to continue in office and a resolutionconcerning their re-appointment will be proposed at the Annual General Meeting.able assurance that the financial statements are free from material misstatements. In formingour opinion we also evaluated the overall adequacy of the presentation of information inthe financial statements. We believe that our audit provides a reasonable basis for our opinion.In our opinion, the financial statements give a true and fair view of the state of the company’saffairs as at 31 December 2000, and of its results and cash flows for the period thenended, and comply with the Companies Act 1984 in so far as applicable to Offshore Companiesand in accordance with internationally accepted accounting standards.