Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of ADS DIAGNOSTIC
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss, and the 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
Management is responsible for 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 Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control 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 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 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. 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 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, 2014;
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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(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, 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 compl/ with the Accounting Standards notified under
the Act read with the General Circular 15/2013 dated 13 September 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE referred to in paragraph 1 of our report of even date to the
members of ADS DIAGNOSTIC LIMITED on the accounts of the Company for
the year ended 31st March 2014.
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 that:
(i) (a)The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and to the best of our
knowledge and information given to us, no material discrepancies
have been noticed on such physical verification.
(c) No fixed assets were disposed off during the year so as to affect
the Company as a going concern.
(ii) (a)The Inventory has been physically verified by the management at
reasonable intervals during the year.
(b) in our opinion the procedures of physical verification of
inventories followed by the management are reasonable and adequate
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory.
Discrepancies noticed on physical verification of inventory as
compared to book records were not material and these have been
properly dealt with in the books of account. The Company has
written down inventories to the extent of Rs.76,09,287 on account
of diminution in their net realizable value.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Where the
Company has taken unsecured loans, where the aggregate amount
involved during the year was Rs. 179,27,291/- and where outstanding
balance as at the year-end was Rs. 1,22,73,621 /-, from four
parties covered in the register maintained under section 301 of the
Companies Act, 1956, the terms and conditions, in our opinion are
not prejudicial to the interest of the Company.
(iv) In our opinion, there is 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
sales. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered into
the registe required to be maintained under that section have been
so entered. We have been explained that the transactions made in
pursuance of such contracts or arrangements have been made at
prices which are reasonable having regard to prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposit from the public during
the year.
(vii) During the year under observation, the Company had an internal
audit system commensurate with its size & nature of its business
wherein it was observed that all transactions are carried out under
the personal supervision of senior officials/directors of the
Company.
(viii) According to the information and explanations given to us, cost
accounting records have not been prescribed for the company u/s
209(1)(d) of the Companies Act 1956; hence Clause (viii) of Para 4
of the Order is not applicable.
(ix) (a) As per records produced before us and according to the
information and explanations given to us the Company is generally
regular in depositing undisputed statutory dues applicable to it
like, Income-tax, Wealth Tax, Provident Fund, Sales Tax, Service
Tax, and other material statutory dues applicable to it, with the
appropriate authorities, and, there were no arrears of such dues
at the end of the year which have remained outstanding for a
period of more than six months from the date they became payable.
(b) As per records produced before us and according to the information
and explanations given to us there are no dues of Income-tax,
Sales-tax, Customs duty, Wealth tax, Service Tax, Excise Duty or Cess
which have not been deposited on account of any dispute, except for the
following:
Name of Statute Period to Forum where Amount(Rs)
(Nature of dues) which amount dispute is pending
relates
Customs Duty 1995-96 Commissionerate 40,00,000 (Amount
(Customs) deposited under
protest Rs.500,000
Customs Duty 1993-94 Commissionerate
(Directorate of
Revenue Intelligence) 56,01,507
Income Tax AY 1988-89,& High Court 18,73,290
AY 1989-90
Income Tax AY 2012-13 Assessing Officer (CPC) 5,57,380
TDS demands Various Assessing Officer 69,700
financial (Traces)
years
(x) The company has accumulated losses of Rs. 896,336 as at the end of
the financial year, and has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) 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 any bank or NBFC.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Hence, Clause (xiii) of Para 4 of the Order is
not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, debentures or other investments. Accordingly, Clause (xiv) of
Para 4 of the Order is not applicable.
(xv) The company has not given any guarantee for loans taken by others
from banks or financial institutions; hence Clause (xv) of Para 4 of
the Order is not applicable.
(xvi) The Company has not taken any term loans; hence Clause (xvi) of
Para 4 of the Order is not applicable.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
period under report, we are of the opinion that no funds raised on
short term basis have been used for long term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) As the Company has not issued any debentures, Clause (xix) of
Para 4 of the Order is not applicable.
(xx) As the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For R. NAG PAL ASSOCIATES
Chartered Accountants Firm
Registration No.002626N
(CA J. S. Qadros)
Partner
M No.089181
Place; New Delhi
Dated: 30th May 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of ADS DIAGNOSTIC
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss, and the 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
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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 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 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 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 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, except with regard to Note no. 31(c) regarding non-provision
of leave encashment in accordance with Accounting Standard (AS)-15
(revised 2005) - Employee Benefits, wherein liability has not been
determined under the Actuarial Valuation Method as at the year end,
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the loss 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(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, 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 referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company
ANNEXURE referred to in paragraph 1 of our report of even date to the
members of ADS DIAGNOSTIC LIMITED on the accounts of the Company for
the year ended 31st March 2013.
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 that:
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and to the best of our
knowledge and information given to us, no material discrepancies have
been noticed on such physical verification.
(c) Fixed assets disposed off during the year, are not material so as
to affect the Company as a going concern.
(ii) (a) The Inventory has been physically verified by the management
at reasonable intervals during the year.
(b) In our opinion the procedures of physical verification of
inventories 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 on physical verification of inventory as compared
to book records were not material and these have been properly dealt
with in the books of account.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Where the Company has
taken unsecured loans, where the aggregate amount involved during the
year was Rs. 174,14,476/- and where outstanding balance as at the year
end was Rs. 148,99,196/-, from four parties covered in the register
maintained under section 301 of the Companies Act, 1956, the terms and
conditions, in our opinion are not prejudicial to the interest of the
Company.
(iv) In our opinion, there is 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 sales.
During the course of our audit we have not observed any continuing
failure to correct major weaknesses in internal control system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956 that need to be entered into the register
required to be maintained under that section have been so entered. We
have been explained that the transactions made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposit from the public during
the year.
(vii) During the year under observation, the Company had an internal
audit system commensurate with its size & nature of its business
wherein it was observed that all transactions are carried out under the
personal supervision of senior officials/directors of the Company.
(viii) According to the information and explanations given to us, cost
accounting records have not been prescribed for the company u/s
209(l)(d) of the Companies Act 1956; hence Clause (viii) of Para 4 of
the Order is not applicable.
(ix) (a) As per records produced before us and according to the
information and explanations given to us the Company is generally
regular in depositing undisputed statutory dues applicable to it like,
Income-tax, Wealth Tax, Provident Fund, Sales Tax, Service Tax, and
other material statutory dues applicable to it, with the appropriate
authorities, and, except for service tax payable of Rs.2,629/-, there
were no arrears of such dues at the end of the year which have remained
outstanding for a period of more than six months from the date they
became payable.
(b) As per records produced before us and according to the information
and explanations given to us there are no dues of Income-tax,
Sales-tax, Customs duty, Wealth tax, Service Tax, Excise Duty or Cess
which have not been deposited on account of any dispute, except for the
following:
Name of Statute Period to
which Forum where
dispute is pending Amount(Rs.)
(Nature of dues) amount
relates
Customs Duty 1995-96 Commissionarate (Customs) 40,00,000
Customs Duty 1993-94 Commissionarate
(Directorate of Revenue
Intelligence) 56,01,507
Income Tax AY 1988-89, & High Court 18,73,290
AY 1989-90
(x) The company has accumulated losses of Rs. 13,34,112 as at the end
of the financial year, and has not incurred any cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) 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 any bank or NBFC.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Hence, Clause (xiii) of Para 4 of the Order is
not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, debentures or other investments. Accordingly, Clause (xiv) of
Para 4 of the Order is not applicable.
(xv) The company has not given any guarantee for loans taken by others
from banks or financial institutions; hence Clause (xv) of Para 4 of
the Order is not applicable.
(xvi) The Company has not taken any term loans; hence Clause (xvi) of
Para 4 of the Order is not applicable.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
period under report, we are of the opinion that no funds raised on
short term basis have been used for long term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) As the Company has not issued any debentures, Clause (xix) of
Para 4 of the Order is not applicable.
(xx) As the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For R.NAGPAL ASSOCIATES
Chartered Accountants
Firm Registration No. 002626N
(CA J. S. Qadros)
Partner
M No.089181
Place: New Delhi
Dated: 30th May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of ADS Diagnostic Limited
as at 31st March, 2012 and the Profit and Loss Account of the Company
for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date, which we have signed under
reference to this report. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an option on these financial statements based on our audit.
2. We conducted our audit in accordance with generally accepted
standard in India. These standard require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes,
examining on n test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, 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 except the non-provision of
bonus payable for the year in terms of the provisions of The Payment of
the Bonus Act, 1956 (Refer Note 1(g) and Note 23(b)), the non
compliance of provisions of the Accounting Standard (AS - 15) (Revised)
" Employee Benefits" issued by the Institute of Chartered Accountants
of India, in respect of the Provision for Leave Encashment under
Actuarial Valuation using the Projected Unit Credit Method at the year
end (Refer Note 1(h) and Note 23(c)), as stipulated under section 209
of the Companies Act, 1956, as required by law, have been kept by the
Company, so far as appears from our examination of those books.
c) The Balance Sheet Profit and Loss Account dealt with by this report
are in agreement with the books of accounts.
d) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report comply with the Accounting Standards referred
to in Section 211(3)(c) of the Companies Act, 1956, to the extent
applicable and / or stated otherwise.
e) On the basis of written representation received from the Directors
of the Company as at 31st March, 2012 and taken on record by the Board
of Directors, we report that none of Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of Clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts subject to;
(i) Note 23(b) regarding non-provision of bonus payable as per the
terms of The Payment of Bonus Act, 1956 of Rs. 0.18 Lacs.
(ii) Note 23(c) regarding non-provision of Leave Encashment in
accordance with the terms of the Accounting Standard (AS -15) (Revised)
"Employee Benefits" issued by the Institute of Chartered Accountants of
India, where the liability has not been determined under the Actuarial
Valuation Method at the year end.
(iii) Note 29 regarding debit and credit balances, which are subject to
confirmation.
(iv) Note 38A.a) regarding non-provision of liability in respect of
redemption fine imposed by the Commissioner of Customs II, New Delhi.
(v) Note 38A.b) regarding the dispute on imposition of Custom Duty on
import of certain Medical Equipments.
(vi) Note 38A.c) regarding non-provision of liability in respect of the
appeal filed by the Income Tax Authorities, New Delhi.
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
accounting principle generally accepted in India:
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012;
(ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(iii) In the case of the Cash Flow Statement of the Cash Flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Annexure referred to in Paragraph 3 of our Report of Even date:
To the Shareholders of ADS Diagnostic Limited on the Accounts for the
year ended 31st March 2012.
1 a) The Company has maintained proper records showing full particulars
including quantitative detail and the situation of its Fixed Assets on
the basis of the information available;
b) According to the information and explanations given to us, physical
verification of Fixed Assets is being conducted in a phased manner by
the Management under a programme deigned to cover all the Fixed Assets
over a period of three years, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its Assets.
The discrepancies noticed on such verification were not material and
have been properly dealt with in the books of account;
c) In our opinion and according to the information and explanations
given to us, no Fixed Assets were disposed off and / or retired during
the year.
2 a) We have been informed that the stock of Diagnostic consumables and
Trading Goods are being physically verified by the Management at
reasonable intervals;
b) In our opinion and according to the information and explanations
given to us, the procedure followed by the Management for physical
verification of Stocks was reasonable and adequate in relation to the
size of the Company and the nature of its business,
d) In our opinion and according to the Information and explanation
given to us, the Company has maintained proper records of its
inventories. The discrepancies between the physical stocks and the book
stocks Were not material and the same have been properly dealt with in
the books of account.
3 a) During the year, the Company has granted loans to a Company listed
in the register maintained under Section 301 of the Companies Act,
1956, at different times during the year, aggregating to Rs. 4.95 Lacs
during the year and the balance outstanding at the year end was Rs.
0.00 Lacs;
b) In our opinion and according to the information and explanations
given to us, the rate of interest and the other terms and conditions on
which these loans were granted were prima facie not prejudicial to the
interest of the company;
c) In our opinion and according to the information and explanations
given to us, the principal amount in respect of these loans were
repayable only on demand and there is no repayment schedule. The
interest is payable on demand;
d) There is no overdue amount in respect of loans granted by the
Company to a Company listed to the register maintained under Section
301 of the Companies Act, 1956, as these are repayable on demand. In
respect of the interest, there are no overdue amounts.
e) The Company has taken unsecured loans from three of its Directors,
at different times during the year, aggregating to Rs. 115.52 Lacs
during the year and the balance outstanding at the year end was
Rs. 107.52 Lacs.
f) In our opinion and according to the information and explanations
given to us, the terms and condition of these interest free loans are
not prima facie prejudicial to the interest of the Company;
g) In our opinion and according to the information and explanations
given to us, the principal amount in respect of these interest free
loans are repayable only on demand;
h) There is no overdue amount in respect of the loans taken by the
Company from three of its Directors, as these are repayable on demand.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, Fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
5 a) According to the information and explanations given to us by the
management, we are of the opinion that the transactions made in
pursuance of contracts or arrangement, that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered;
b) In respect of transactions made in pursuance of contracts or
arrangements exceeding value of Rupees Five Lacs entered during the
financial year and because of the uniqueness and specialized nature of
these contracts and arrangements, in certain cases these have been made
at prices for which no comparative quotations are available, and we are
unable to comment, whether the transactions were made at prevailing
market prices at the relevant time.
6 The Company has not accepted any deposit from the public.
7 In our opinion, the Internal Audit System is commensurate with the
size of the Company and the nature of its business, though the scope of
work needs to be further extended.
8 It has been informed to us that the Central Government has not
prescribed maintenance of Cost Records under Section 209(1)(d) of the
Companies Act, 1956, for the products of the Company.
9 a) According to the records, information and explanations provided to
us, the Company is generally regular in depositing with the appropriate
authorities undisputed amounts of provident fund, investor education
protection fund, income tax, Sales tax, service tax, customs duty and
other statutory dues applicable to it and no undisputed amounts payable
were outstanding as at 31st March, 2012 for a period of more than six
months from the date they became payable;
b) According to the information and explanations given to us, the
disputed statutory dues that have not been deposited on account of
matters pending before appropriate authorities are as under:
Sl. Name of the Forum Where Dispute is Unpaid Amount
No. Statutory Pending (Rs. in lacs)
Due
1 Customs Duty Commissioner of Customs 40.00
Commissioner of
Directorate of
Revenue Intelligence 56.02
2 Income Tax High Court 18.73
10 The Company has accumulated losses of Rs. 2.45 Lacs but has not
incurred any cash loss, during the financial year covered by our audit
or in the immediately preceding financial year.
11 In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
Bank.
12 According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13 In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, provisions of Clause (xiii) of
Paragraph 4 of the Order are not applicable to the Company.
14 In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause (xiv) of Paragraph 4 of the Order are not
applicable to the Company.
15 On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
bank or financial institutions.
16 To the best of our knowledge by the Company were applied to us and
to the information and explanations given to us, the term loans availed
by the Company were applied for the purposes for which the loans were
obtained.
17 According to the information and explanations given to us and on the
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investments.
18 According to the information and explanations given to us, no
preferential allotment of shares has been made by the company during
the year.
19 The Company has not issued any debenture during the year. Therefore,
the provisions of clause (xix) of paragraph 4 of the Order are not
applicable to the Company.
20 The Company has not raise any monies by way of public issue during
the year.
21 To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
For KHATTAR KHANNA & ASSOCIATES
Chartered Accountants
Registration No.: 014731N
RAJIV KHANNA
Partner
Membership No.: 091611
Place: New Delhi
Date: 29th May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of ADS Diagnostic Ltd. as at
31st March, 2011 and the Profit and Loss Account of the Company for the
year ended on that date annexed thereto and the Cash Flow Statement for
the year ended on that date, which we have signed under reference to
this report. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards in India. These standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes,
examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
2. Further to our comments in the Annexure referred to above, 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 except the non-provision of
bonus payable for the year in terms of the provisions of The Payment of
the Bonus Act, 1965 (Refer Significant Accounting Policy No. 7 and Note
11), the non compliance of provisions of the Accounting Standard (AS
-15) (Revised) "Employee Benefits" issued by the Institute of Chartered
Accountants of India, in respect of the Provision for Leave Encashment
under Actuarial Valuation using the Projected Unit Credit Method at the
year end (Refer Significant Accounting Policy No. 8.B.i. and Note 13),
as stipulated under section 209 of the Companies Act, 1956, as required
by law, have been kept by the Company, so far as appears from our
examination of those books.
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
d) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report comply with the Accounting Standards referred
to in Section 211(3)(C) of the Companies Act, 1956, to the extent
applicable and / or stated otherwise.
e) On the basis of written representation received from the Directors
of the Company as at 31st March, 2011 and taken on record by the Board
of Directors, we report that none of , Directors is disqualified as on
31st March, 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts subject to;
(i) Note 1 and Note 7a. regarding non-provision of liability in respect
of redemption fine imposed by the Commissioner of Customs II, New
Delhi.
(ii) Note 2 and Note 7b. regarding the dispute on imposition of Custom
Duty on import of certain Medical Equipments.
(iii) Note 3 and Note 7c. regarding non-provision of liability in
respect of the appeal filed by the Income Tax Authorities, New Delhi.
(iv) Note 5 regarding debit and credit balances, which are subject to
confirmation.
(v) Note 11 regarding non-provision of bonus payable as per the terms
of The Payment of Bonus Act, 1965 of Rs. 0.18 Lacs.
(vi) Note 13 regarding non-provision of Leave Encashment in accordance
with the terms of the Accounting Standard (AS - 15) (Revised) 'Employee
Benefits" issued by the Institute of Chartered Accountants of India,
wherein the liability has not been determined under the Actuarial
Valuation Method at the year end.
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
accounting principle generally accepted in India:
(i) In the case of the Balance Sheet, of the STATE OF AFFAIRS of the
Company as at 31st March, 2011;
(ii) In the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date; and
(iii) In the case of the Cash Flow Statement of the CASH FLOWS for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in Para 1 of our report of even date.
1 a) The Company has maintained proper records showing full particulars
including quantitative details and the situation of its Fixed Assets on
the basis of the information available;
b) According to the information and explanations given to us, physical
verification of Fixed Assets is being conducted in a phased manner by
the Management under a programme designed to cover all the Fixed Assets
over a period of three years, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its Assets.
The discrepancies noticed on such verification were not material and
have been properly dealt with in the books of account;
c) In our opinion and according to the information and explanations
given to us, no Fixed Assets were disposed off and / or retired during
the year.
2 a) We have been informed that the stock of X-ray films, Medicines,
Developing Materials and Stores & Spares are being physically verified
by the Management at reasonable intervals;
b) In our opinion and according to the information and explanations
given to us, the procedure followed by the Management for physical
verification of stocks was reasonable and adequate in relation to the
size of the Company and the nature of its business;
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories. The discrepancies between the physical stocks and the book
stocks were not material and the same have been properly dealt with in
the books of account.
3 a) During the year, the Company has granted loans to a Company listed
in the register maintained under Section 301 of the Companies Act,
1956, at different times during the year, aggregating to Rs. 32.00 Lacs
during the year and the balance outstanding at the year end was Rs.
0.00 Lacs;
b) In our opinion and according to the information and explanations
given to us, the rate of interest and the other terms and conditions of
which these loans were granted were prima facie not prejudicial to the
interest of the Company;
c) In our opinion and according to the information and explanations
given to us, the principal amount in respect of these loans were
repayable only on demand and there is no repayment schedule. The
interest is payable on demand;
d) There is no overdue amount in respect of loans granted by the
Company a Company listed in the register maintained under Section 301
of the Companies Act, 1956, as these are repayable on demand. In
respect of the interest, there are no overdue amounts.
e) The Company has taken interest free unsecured loans from three of
its Directors and an interest bearing loan from a Company listed in the
register maintained under Section 301 of the Companies Act, 1956, at
different times during the year, aggregating to Rs. 148.10 Lacs during
the year and the balance outstanding at the year end was Rs. 106.02
Lacs.
f) In our opinion and according to the information and explanations
given to us, the rate of interest wherever applicable and the other
terms and conditions of these loans are not prima facie prejudicial to
the interest of the Company;
g) In our opinion and according to the information and explanations
given to us, the principal amount in respect of these loans is
repayable only on demand and there is no repayment schedule. The
interest wherever applicable was payable only on demand;
h) There is no overdue amount in respect of loans taken by the Company
from three of its Directors and a Company listed in the register
maintained under Section 301 of the Companies Act, 1956, as these are
repayable on demand. In respect of the interest wherever applicable,
there are no overdue amounts.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
5 a) According to the information and explanations given to us, we are
of the opinion that the transactions made in pursuance of contracts or
arrangement, that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956 have been so entered;
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five Lacs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market price at the relevant time.
6 The Company has not accepted any deposit from the public.
7 In our opinion, the Internal Audit System is commensurate with the
size of the Company and the nature of its business, though the scope of
work needs to be further extended.
8 It has been informed to us that the Central Government has not
prescribed maintenance of Cost Records under Section 209(l)(d) of the
Companies Act, 1956, for the products of the Company.
9 a) According to the records, information and explanations provided to
us, the Company is generally regular in depositing with the appropriate
authorities undisputed amounts of provident fund, investor education
protection fund, income tax, sales tax, service tax, customs duty and
other statutory dues applicable to it and no undisputed amounts payable
were outstanding as at 31st March, 2011 for a period of more than six
months from the date they became payable;
b) According to the information and explanations given to us, the
disputed statutory dues that have not been deposited on account of
matters pending before appropriate authorities are as under:
Sl. Name of the Forum Where Dispute Unpaid Amount
No. Statutory Due is pending (Rs. in lacs)
1 Income Tax High Court 18.73
2 Customs Duty Commissioner of Customs 40.00
Commissioner of
Directorate
of Revenue
Intelligence 56.02
10 The Company has accumulated losses of Rs. 3.37 Lacs but has not
incurred any cash loss during the financial year covered by our audit
or in the immediately preceding financial year.
11 In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
Bank.
12 According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13 In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, provisions of Clause (xiii) of
Paragraph 4 of the Order are not applicable to the Company.
14 In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause (xiv) of Paragraph 4 of the Order are not
applicable to the Company.
15 On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16 To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
Company were applied for the purposes for which the loans were
obtained.
17 According to the information and explanations given to us and on the
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investments.
18 According to the information and explanations given to us, no
preferential allotment of shares has been made by the Company during
the year.
19 The Company has not issued any debentures during the year.
Therefore, the provisions of clause (xix) of Paragraph 4 of the Order
are not applicable to the Company.
20 The Company has not raised any monies by way of public issue during
the year.
21 To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
For KHATTAR KHANNA & ASSOCIATES
Chartered Accountants
RAJIV KHANNA
Partner
Membership No: 091611
Firm Registration No.: 014731N
Place : New Delhi
Date : 30th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of ADS Diagnostic Ltd. as at
31st March, 2010 and the Profit and Loss Account of the Company for the
year ended on that date annexed thereto and the Cash Flow Statement for
the year ended on that date, which we have signed under reference to
this report. These financial statements are the responsibility of the
Companys Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards in India. These standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes,
examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principle used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
2. Further to our comments in the Annexure referred to above, 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 except the non-provision of
bonus payable for the year in terms of the provisions of The Payment of
the Bonus Act, 1965 (Refer Significant Accounting Policy No. 7 and Note
11), the non compliance of provisions of the Accounting Standard (AS -
15) (Revised) "Employee Benefits" issued by the Institute of Chartered
Accountants of India, in respect of the Provision for Leave Encashment
under Actuarial Valuation using the Projected Unit Credit Method at the
year end (Refer Significant Accounting Policy No. 8.B.i. and Note 13),
as stipulated under section 209 of the Companies Act, 1956, as required
by law, have been kept by the Company, so far as appears from our
examination of those books.
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
d) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report comply with the Accounting Standards referred
to in Section 211(3) (C) of the "Companies Act, 1956, to the extent
applicable and / or stated otherwise.
e) On the basis of written representation received from the Directors
of the Company as at 31st March, 2010 and taken on record by the Board
of Directors, we report that none of Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts subject to;
(i) Note 1 and Note 7a. regarding non-provision of liability in respect
of redemption fine imposed by the Commissioner of Customs II, New
Delhi.
(ii) Note 2 and Note 7b. regarding the dispute on imposition of Custom
Duty on import of certain Medical Equipments.
(Hi) Note 3 and Note 7c. regarding non-provision of liability in
respect of the appeal filed by the Income Tax Authorities, New Delhi.
(iv) Note 5 regarding debit and credit balances, which are subject to
confirmation.
(v) Note 11 regarding non-provision of "bonus payable as per the terms
of The Payment of Bonus Act, 1965 of Rs. 0.16 Lacs.
(vi) Note 13 regarding non-provision of Leave Encashment in accordance
with the terms of the Accounting Standard (AS -15) (Revised)"Employee
Benefits" issued by the Institute of Chartered Accountants of India,
wherein the liability has not been determined under the Actuarial
Valuation Method at the year end.
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with.the
accounting principle generally accepted in India:
(i) In the case of the Balance Sheet, of the STATE OF AFFAIRS of the
Company as at 31st March 2010;
(ii) In the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date; and
(iii) In the case of the Cash Flow Statement of the CASH FLOW for the
year ended on that date.
ADS DIAGNOSTIC LIMITED, NEW DELHI ANNEXURE TO AUDITORS REPORT Referred
to in Para 1 of our report of even date.
1 a) The Company has maintained proper records showing full particulars
including
quantitative details and the situation of its Fixed Assets on the basis
of the information available;
b) According to the information and explanations given to us, physical
verification of Fixed Assets is being conducted in a phased manner by
the Management under a programme designed to cover all the Fixed Assets
over a period of three years, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its Assets.
The discrepancies noticed on such verification were not material and
have been properly dealt with in the books of account;
c) The assets disposed off and / or retired during the year are not
that substantial a part of the fixed assets that they affect the going
concern status of the Company.
2 a) We have been informed that the stock of X-ray films, Medicines,
Developing Materials
and Stores & Spares are being physically verified by the Management at
reasonable intervals;
b) In our opinion and according to the information and explanations
given to us, the procedure followed by the Management for physical
verification of stocks was reasonable and adequate in relation to the
size of the Company and the nature of its business;
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories. The discrepancies between the physical stocks and the book
stocks were not material and the same have been properly dealt with in
the books of account.
3 a) During the year, the Company has not granted any loans to parties
listed in the register
maintained under Section 301 of the Companies Act, 1956;
b) The Company has taken unsecured loans from Three of its Directors,
at different times during the year, aggregating to Rs. 87.30 Lacs
during the year and the balance outstanding at the year end was Rs.
122.10 Lacs.
c) In our opinion and according to the information and explanations
given to us, the terms and conditions of these interest free loan are
not prima facie prejudicial to the interest of the Company;
d) In our opinion and according to the information and explanations
given to us, the principal amount in respect of these interest free
loan are repayable only on demand;
e) There is no overdue amount in respect of loans taken by the Company
from three of its Directors, as these are repayable on demand.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
5 a) According to the information and explanations given to us, we are
of the opinion that
the transactions made in pursuance of contracts or arrangement, that
need to be entered into the register maintained under Section 301 of
the Companies Act, 1956 have been so entered;
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five Lacs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market price at the relevant time.
6 The Company has not accepted any deposit from the public.
7 In our opinion, the Internal Audit System is commensurate with the
size of the Company and the nature of its business, though the scope of
work needs to be further extended.
8 It has been informed to us that the Central Government has not
prescribed maintenance of Cost Records under Section 209(l)(d) of the
Companies Act, 1956, for the products of the Company.
9 a) According to the records, information and explanations provided to
us, the Company is
generally regular in depositing with the appropriate authorities
undisputed amounts of provident fund, investor education protection
fund, income tax, sales tax, service tax, customs duty and other
statutory dues applicable to it and no undisputed amounts payable were
outstanding as at 31st March, 2010 for a period of more than six months
from the date they became payable;
b) According to the information and explanations given to us, the
disputed statutory dues that have not been deposited on account of
matters pending before appropriate authorities are as under:
SI. Name of the Statutory Due Forum Where Dispute is Unpaid Amount
No. Pending (Rs. in lacs)
1 Income Tax High Court 18.73
2 Customs Duty Commissioner of Customs 40.00
Commissioner of Directorate
of Revenue Intelligence 56.02
10 The Company has accumulated losses of Rs. 10.74 Lacs but has not
incurred any cash loss during the financial "ear covered by our audit
or in the immediately preceding financial year.
11 In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
Bank.
12 According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13 In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, provisions of Clause (xiii) of
Paragraph 4 of the Order are not applicable to the Company.
14 In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause (xiv) of Paragraph 4 of the Order are not
applicable to the Company.
15 On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16 To the best of our knowledge and belief and according to the
information and explanations given to us, the term loans availed by the
Company were applied for the purposes for which the loans were
obtained.
17 According to the information and explanations given to us and on the
overall examination of the Balance Sheet of the Company, we report that
norunds raised on short term basis have been used for long term
investments.
18 According to the information and explanations given to us, no
preferential allotment of shares has been made by the Company during
the year.
19 The Company has not issued any debentures during the year.
Therefore, the provisions of clause (xix) of Paragraph 4 of the Order
are not applicable to the Company.
20 The Company has not raised any monies by way of public issue during
the year.
21 To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during ths year that causes the financial
statements to be materially misstated.
For KHATTAR KHANNA & ASSOCIATES
Chartered Accountants
RAJIV KHANNA
Partner
Place : New Delhi Membership No: 091611
Date : 26th May, 2010 Firm Registration No.: 014731N
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