We have audited the accompanying financial statements of Gujarat Terce
Laboratories Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, 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 Standalone 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 Act 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 judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls that were operating for
ensuring 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 misstatements. 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
control relevant to the Company's preparation and fair presentation of
the financial statements 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 management, 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
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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the 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 Section
143(11) of the Act, 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 obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose 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 the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. in our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in section 133 of the Act;
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 has disclosed the impact of pending litigations on its
financial position in its financial statements;- Refer Note -1.22 to
the financial statements;
ii. the Company has made provision as required under the applicable
law or accounting standards on long-term contracts including derivative
contracts;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of Gujarat Terce
Laboratories Limited for the year ended on 31/03/2015. We report that:
(i) (a) whether the company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets; Yes
(b) whether these fixed assets have been physically verified by the
management at reasonable intervals; whether any material discrepancies
were noticed on such verification and if so, whether the same have been
properly dealt with in the books of account; No material discrepancies
were noticed on such verification.
(ii) (a) whether physical verification of inventory has been conducted
at reasonable intervals by the management; Yes
(b) Are the procedures of physical verification of inventory followed
by the management reasonable and adequate in relation to the size of
the company and the nature of its business? If not, the inadequacies in
such procedures should be reported; Yes
(c) whether the company is maintaining proper records of inventory and
whether any material discrepancies were noticed on physical
verification and if so, whether the same have been properly dealt with
in the books of account; Yes, Discrepancies if any noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of account.
(iii) Whether the company has granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. If so, No
(a) whether receipt of the principal amount and interest are also
regular; and NA
(b) if overdue amount is more than rupees one lakh, whether reasonable
steps have been taken by the company for recovery of the principal and
interest; NA
(iv) Is there 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?
Whether there is a continuing failure to correct major weaknesses in
internal control system. During the course of our audit, no major
weakness in internal control has come to our notice.
(v) in case the company has accepted deposits, whether the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under, where applicable, have been complied with? If
not, the nature of contraventions should be stated; If an order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, whether the
same has been complied with or not? Company has not accepted deposits.
Not Applicable Not Applicable
(vi) where maintenance of cost records has been specified by the
Central Government under sub- section (1) of section 148 of the
Companies Act, whether such accounts and records have been made and
maintained; Not Applicable
(vii) (a) is the company regular in depositing undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
sales -tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues with the appropriate
authorities and if not, the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable, shall
be indicated by the auditor. Yes
(b) in case dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
have not been deposited on account of any dispute, then the amounts
involved and the forum where dispute is pending shall be mentioned. (A
mere representation to the concerned Department shall not constitute a
dispute). Refer Annexure -A
(c) whether the amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time. Not Applicable
(viii) whether in case of a company which has been registered for a
period not less than five years, its accumulated losses at the end of
the financial year are not less than fifty per cent of its net worth
and whether it has incurred cash losses in such financial year and in
the immediately preceding financial year; Not Applicable
(ix) Whether the company has defaulted in repayment of dues to a
financial institution or bank or debenture holders? If yes, the period
and amount of default to be reported; No
(x) whether the company has given any guarantee for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company; No
(xi) whether term loans were applied for the purpose for which the
loans were obtained; Yes
(xii) whether any fraud on or by the company has been noticed or
reported during the year; If yes, the nature and the amount involved is
to be indicated. No
Annexure - A
Name of Statute Nature of dues Disputed Tax
Amount
Gujarat Sales Tax Regular Assesment Rs. 466886/-
Gujarat Sales Tax Regular Assesment Rs. 1068607/-
Income Tax Regular Assessment Rs 429282/-
Income Tax Regular Assesment Rs 4192640/-
Income Tax Regular Assessment 19409860/-
Name of Statute Period to Forum where
the amount dispute is
Relates pending
Gujrat Sales Tax F.Y.2003-04 Dep. Comm of Sales
Tax (Appeals)
Gujrat Sales Tax F.Y.2004-05 Dep.Comm of Sales
Tax (Appeals)
Income Tax F.Y. 2004-05 Commissioner of
Income Tax.(Appeal)
Income Tax F.Y. 2010-11 Commissioner of
Income Tax.(Appeal)
Income Tax F.Y 2011-12 Commissioner of
Income Tax. ( Appeal)
For, U S S & ASSOCIATES
Chartered Accountants
(Ujal Mehta)
Partner
Place : Ahmedabad. M. No. 112337
Date : 29/05/2015 F.R.N. 122634W |