| We have audited the accompanying financial statements of ADVIK
LABORATORIES LIMITED New Delhi ("the Company"), which comprise the
Balance Sheet as at March 31, 2015 and the Statement of Profit and Loss
and Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position and financial performance and Cash Flow
Statement of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") Issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act,2015 we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:-
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to the best of our information and according to the explanations
given to us :
I. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements-Refer Note no. 22 to the
financial statements.
II. As per information furnished to us, the Company does not have any
long-term contracts including derivatives contracts for which there
were any material foreseeable losses.
III. There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in our independent Auditors Report to the
members of the Company on the financial statements for the year ended
31st March, 2015, we report that
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
2. (a) The Management has conducted physical verification of inventory
at reasonable intervals during the year. In our opinion, the frequency
of such verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed during the physical verification of inventories
as compared to book records were not material and have been dealt with
in the books of account.
3. Accordingly to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under section
189 of the Act. Accordingly, paragraph 3 (iii) of the order is not
applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business, for
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal controls.
5. The Company has not accepted any deposits from the public within
the meaning of Section 73 to 76 or any other relevant provisions of the
Act and the Companies (Acceptance of Deposits) Rules, 2014(as amended)
6. As per notification no. F.No.1/40/2013-CL-V dated 31.12.2014
maintenance of cost records has not been prescribed by the Central
Government U/s. 148(1) of the Companies Act, 2013.
7. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account of Company, the
company is generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income-tax, service
tax, duty of customs, duty of excise, value added tax, cess and other
material statutory dues, as applicable with the appropriate authorities.
In our opinion and accordingly to the information and explanation given
to us, undisputed dues in respect of Income Tax which was outstanding
at the year-end for a period of more than six months from the date that
become payable is as follow:-
Nature of Nature of Dues Amount Period to Due date
Statue (Rs.In which the
lacs) amounts
relates
Income Tax Income Tax 18.33 FY 2013-14 30.11.2014
Act, 1961
Nature of Date of
Statue payment
Income Tax Not yet paid
Act, 1961
(b) According to the information and explanation given to us, no other
undisputed amounts except above, are payable on account of provident
fund, employees state insurance, income-tax, service tax, duty of
customs, duty of excise, value added tax, as at 31.03.2015 for a period
of more than six months from the date they become payable.
(c) According to the informations and explanations given to us there
are no no amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
companies Act, 1956 (1of 1956) and rules made there under.
8. In our opinion and according to information and explanation given
to us, company does not have any accumulated losses at the end of the
financial year. Further, the company has incurred cash losses of Rs.
26.52 lacs during the financial year covered under audit.
9. According to information & explanation given to us the company has
defaulted in payment of dues to bank. The details of default are as
under:-
Sno. Name of Bank Amount Nature of dues
(Rs. In lacs)
1. Indian Overseas Bank 40.69 Interest(Term loan)
78.80 Principal
2. Indian Overseas Bank 20.88 Interest (Working
Capital)
Sno. Name of Bank Period of
default of
repayment
1. Indian Overseas Bank 01.06.2014 to
31.03.2015
(10 months)
2. Indian Overseas Bank 01.10.2014 to
31.03.2015
(6 months)
10. As per information furnished to us, the company has not given any
guarantee for loans taken by others from bank or financial institution.
11. According to the information & explanation given to us, during the
year company has not raised any term loan.
12. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For M/s. RMA & Associates
Chartered Accountants
Firm Regn. No. 000978N
Sd/-
Place: New Delhi Pankaj Chander
Dated : 30th May, 2015 Partner
M. No.89065
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