| Referred to in paragraph 3 of the Auditors' Report of even date to the members of Kesoram Industries Limited on the financial statements for the year ended 31st March, 2011 | ||
| 1. | (a) | The Company is maintaining proper records showing full particulars (other than details regarding revalutions made during 1982-83) including quantitive details and situation of its fixed assets. |
| (b) | The fixed assets of the Company are physically verified by the management according to phased programmes designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to such programmes [without any coverage for items of Company's Spun Pipes & Foundries Unit (which is under suspension of work effective 2nd May, 2008 having year-end book value of Rs. 3,69,80,427)], a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies between the book records and the physically inventory have been noticed. | |
| (c) | In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed off by the Company during the year. | |
| 2 | (a) | The inventories [excluding stocks with third parties and pertaining to the aforesaid Spun Pipes & Foundries Unit (Year-end book value Rs. 98,23,767)] have been physically verified by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of physical verification is reasonable. |
| (b) | In our opinion, the procedures of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. | |
| (c) | On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventories other than work-in-process. As in earlier years, work-in-process has been determined by the Management on the basis of physical verification as mentioned in paragraph 2 (a) above. The discrepancies noticed on physical verification of inventory as compared to book records were not material. | |
| 3. | The Company has neither granted nor taken during the year any loans, secured or unsecured, to/from companies, firm or other parties covered in the register maintained under Section 301 of the Act. | |
