We have audited the accompanying financial statements of CHOKSI
LABORATORIES LIMITED ("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 stated
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, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the read with Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, 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 mattersd 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 judgement, 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 a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the 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 March 31, 2015, 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, issued
by the Central Government of India in terms of subsection (11) of
section 143 of the Act, (hereinafter referred to as "the Order") and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
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, 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement 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 the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us :
i. The Company does not have any pending litigation which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses..
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS
Referred to in Paragraph 1 of the Report on Other Legal & Regulatory
Requirements of Independent Auditor's Report of Even date
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report to the extent:
i. a. The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b. Fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable.
ii. This being a service rendering Company, there are no
Manufacturing/Trading Activities in the Company, the only inventory for
the Company is Chemicals which is used & consumed for testing purposes.
Since its inception, the Company follows the practice of charging to
revenue, the purchases of chemicals in the year of purchase itself. Due
to this reason ,and considering the nature of volatility of the item,
as per the explanations given to us, no inventory register is
maintained for the same. Hence we are unable to express our opinion on
Clause ii of the Order.
iii. The Company has not granted loans, secured or unsecured, to
Companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Consequently, our
comments on clauses iii a and iii b of the order are NIL. However, the
Company has given an interest free rent deposit of Rs.20 Lacs for
building to one such party.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventories, fixed assets and for sale of services.
Further, on the basis of our examination of books 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 weakness in aforesaid internal control system.
v. The Company has not accepted any deposits from the public covered
under the provision of Section 73 to 76 of the Companies Act, 2013 and
the rules framed there under to the extent notified.
vi. The Central Government has not prescribed maintenance of cost
records pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended by sub Section (1) of Section 148 of the Companies Act,
2013.
vii. (a) According to the information & explanations given to us and the
records of the Company examined by us, in our opinion, undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Income Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other material statutory dues, to the extent applicable, have been
generally regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2015 for a period of more than six months
from the date they become payable;
(c) According to the information and explanations given to us, there
are no statutory dues which have not been deposited on account of
disputes.
(d) According to the information and explanations given to us, there is
no amount required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provision of the
Companies Act, 1956 and Rules made there under.
viii. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
ix. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to financial institution
or bank. The Company has not issued debentures.
x. According to the information & explanations given to us, the
Company has not given guarantees for loan taken by others from a bank
or financial institution.
xi. According to the information & explanations given to us, all term
loans obtained are used for the purpose for which they have been
obtained.
xii. Based on the audit procedures performed and the information &
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For PRATEEK JAIN & CO.
Chartered Accountants
(Registration No. 009494C)
Prateek Jain
Place : Indore Proprietor
Date : 30-05-2015 M.No. 079214 |