Annual Reports - Indraprastha Gas Limited

ANNEXURE TO THE AUDITORS’ REPORT
(Referred to in paragraph 3 of our report of even date)
1. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
b. According to the information and explanations given to us, the Company has a phased programme of physical
verification of its fixed assets by which all fixed assets, other than underground gas distribution systems which are
not physically verifiable, are verified over a period of two years. In accordance with this programme, a part of the
fixed assets were verified during the year. In our opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its business. No material discrepancies were noticed on such
verification.
c. According to the information and explanations given to us, substantial part of fixed assets has not been disposed of
during the year.
2. a. Inventory comprises Gas and Stores and spares. According to the information and explanations given to us, inventory
of stores and spares has been physically verified during the year by the Management. In our opinion, the frequency
of verification of stores and spares is reasonable. According to the information and explanations given to us, the
stock of gas in pipeline cannot be physically verified and is estimated on volumetric basis.
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 the nature of its business.
c. In our opinion and according to the information and explanations given to us, the Company has maintained proper
records of its inventories and discrepancies noted between physical inventory and book records were not material
having regard to the size of the operations of the Company and the same have been properly dealt with in the books
of account.
3. According to the information and explanations given to us, the Company has not taken or granted any loans, secured or
unsecured, from/to companies, firms or other parties covered in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, the provisions of clause 4 (iii) (b), (c), (d), (e), (f) and (g) of the Companies (Auditor’s Report)
Order, 2003 are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets
and for the sale of goods and services. On the basis of examination of the books of account and records of the Company
and according to the information and explanations given to us, we have neither come across nor have been informed of
any continuing failure to correct major weaknesses in internal control system.
5. Based on the examination of the books of account and related records and according to the information and explanations
given to us, there are no contracts or arrangements with companies, firms or other parties which need to be entered in
the register maintained under Section 301 of the Companies Act, 1956. Accordingly the provisions of clause 4 (v) (b) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.
6. According to the information and explanations given to us, the Company has not accepted any deposits from the public as
defined under the provisions of section 58A and 58AA of the Companies Act, 1956 and the rules framed thereunder.
7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the
Central Government for maintenance of cost records under Section 209(l)(d) of the Companies Act, 1956 in respect of its
products and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records with a view to determine whether they are accurate
or complete.
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