To the members of WIPRO LIMITED We have audited the attached Balance Sheet of Wipro Limited as at March 31, 2000 and also the annexed Profit & Loss Account for the year ended on that date, and report that: 1. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of accounts as required by law have been kept by the Company so far appears from our examination of the books. The Balance Sheet and the Profit & Loss Account dealt with by this report are in agreement with the books of account. In our opinion, the Profit and Loss Account and Balance Sheet dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) 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 account, read together with the notes thereon give information required by the Companies Act, 1956, in the manner so required and a) b) give a true and fair view of the state of affairs of the Company as at March 31, 2000; in case of the Balance Sheet and subject to withdrawal of Rs. 52 Million from capital reserve to offset the impact on Profit and Loss Account of reduction in the carrying value of stock - in - trade (land) (refer Note 2 of Schedule 18), give a true and fair view of the Profit for the year ended on that date in case of the Profit & Loss Account.
As required by the Manufacturing and Other Companies (Auditor’s Report) Order, 1988, issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate, we further state that: (i) The Company has maintained proper records showing quantitative details and the situation of its fixed assets. A major portion of fixed assets have been physically verified by the management during the year. In our opinion, the frequency of verification of fixed assets by the management is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancy has been noticed between the book records and the assets physically verified. None of the fixed assets of the Company have been revalued during the year. Stocks of finished goods, stores, spare parts and raw materials other than with the third parties have been physically verified by the management at reasonable intervals. There is a process of obtaining confirmation in respect of stores with third parties. In our opinion and according to the information and explanations given to us, the procedures for physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account. In our opinion, the valuation of stocks is fair and proper in accordance with the normally accepted accounting principles, and is on the same basis as in the preceding year. The company has not taken any loans secured or unsecured from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. We have been informed that there are no companies under the same management as defined under Section 370(1-B) of the Companies Act, 1956.
(viii) The Company has granted unsecured interest free/interest-bearing loans to its subsidiaries which are listed in the register maintained under Section 301 of the Companies Act, 1956. The terms and conditions of such loans are, prima facie, not prejudicial to the interest of the Company. (ix) In respect of loans and advances in the nature of loans given by the Company, the parties/employees have generally repaid the principal amount and...