1.28     Query

Amendment/Supercession of Report by Auditor at

a later date.

               (i)   Whether the Auditors have been justified in making certain qualifying statements in the Audit Report, which subsequently              they could not clarify or explain to the Members at the General Meeting and on the contrary confirmed that the errors in the              computerised Stores Accounting rectified prior to the commencement of their Audit did not in any way effect the correctness of              the accounts and that the Financial Statements give a true and fair view of the state of affairs of the company.

(ii)   Whether the Auditors were correct in certifying the Company’s trading results as “loss” when there was a disposable balance of Rs. 2,0000.16 for the year ended on 30-6-73.

                                                        Opinion                                   September 13, 1974

1. An auditor is entitled to amend or supercede his audit report in appropriate circumstances before the relevant or annual accounts are formally adopted by the shareholders. Accordingly, in the case cited by you, the auditor is within his right to clarify the position with regard to stores, stocks etc., if in his opinion, the absence of any such clarification may affect the true and fair aspect of his report.

2. From the facts made available to the Committee, the Committee is of the opinion that the use of the expression ‘loss’ in the case is not quite appropriate.