Mar 31, 2018
INDEPENDENT AUDITORS' REPORT
To the Members of HESTER BIOSCIENCES LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of HESTER BIOSCIENCES LIMITED ("the Company"), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENTS' RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys' Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements to give a true and fair view of the financial position, financial performance including other comprehensive income, cash flow and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions 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 adequate internal financial controls, those 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.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these standalone financial statements based on our audit. In conducting 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 of the standalone financial statements 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 standalone financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Companys' preparation of the standalone 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 the Companys' Directors, as well as evaluating the overall presentation of the standalone 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 standalone financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31 March 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
REPORT ON OTHER LEGAL & REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors' Report) Order, 2016 ('the Order') issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143(3) of the Act, based on our audit, 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 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 it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on 31 March 2018, taken
on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure-B"; and Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys' internal financial controls over financial reporting.
g. With respect to the other matters to be included In the Auditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
 |
For Apaji Amin & Co. LLP |
 |
Chartered Accountants |
 |
Firm Registration No.: 100513W/W100062 |
 |
Tehmul B. Sethna |
Place : Ahmedabad |
Partner |
Date : 14 May 2018 |
Membership No: 035476 |
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ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in Independent Auditors' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2018, we report that
i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant & Equipment.
b) The Company has a regular program of physical verification of its Property, Plant & Equipment by which all fixed assets are verified in phased manner by the management during the year, which in our opinion is reasonable, having regards to the size of the Company and nature of the assets. No material discrepancies were noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) As explained to us, physical verification of the inventories have been conducted at reasonable intervals by the management, which in our opinion is reasonable, having regard to the size of the Company and nature of its inventories. No material discrepancies were noticed on such physical verification.
iii) The Company has granted unsecured loans to one subsidiary company covered in the register maintained under Section 189 of the Act. There are no Firms, Limited Liability Partnership and Other parties covered in the register maintained under section 189 of the Act.
(a) In respect of the aforesaid loan, the terms and conditions under which such loans were granted are not prejudicial to Companys' interest.
(b) In respect of aforesaid loan, no schedule for repayment of principal and payment of interest has been stipulated by the Company. Therefore, in the
absence of stipulation of repayment terms, we don't make any comment in the regularity of repayment of principal and payment of interest.
(c) In respect of the aforesaid loan, there is no amount which is overdue for more than ninety days.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v) According to information and explanation given to us, the company has not accepted any deposits from the public in accordance with the provisions of sections 73 to 76 of the Act and rules framed there under.
vi) We have broadly reviewed the cost records maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that, the prescribed accounts and cost records have been made and maintained. We have not, however, made a detailed examination of the same.
vii) In respect of Statuary due:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees' State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax which have not been deposited as on 31 March 2018 on account of disputes are given below:
Name of the Statue |
Nature of Dues |
Amount (In Rs.) |
Period to which amount relates |
Forum where dispute is Pending |
The Income Tax Act, 1961 |
Income Tax |
5,618,805 |
AY. 2011-12 |
Deputy Commissioner Of Income Tax |
 |  |
1,101,580 |
A.Y. 2015-16 |
Commissioner of Income Tax (Appeals) |
viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according the information and explanation given by the management, we are of the opinion that Company has not defaulted in repayment of dues to bank. The Company does not have any borrowing from financial institution, government or by way of debenture.
ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management and overall examination of the balance sheet, we report that monies raised by way of term loan were applied for the purposes for which the loan was obtained. No monies were raised, during the year, by the company by way of initial public offer or further public offer (including debt instruments).
x) According to information and explanation given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
xvi) According to the information and explanations given to us, the provisions of Section 45-IA of Reserve Bank of India Act, 1934 are not applicable to the company.
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For Apaji Amin & Co. LLP Chartered Accountants |
 |
Tehmul B. Sethna |
Place : Ahmedabad |
Partner |
Date : 14 May 2018 |
Membership No: 035476 |
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ('THE ACT')
We have audited the internal financial controls over financial reporting of Hester Biosciences Limited ('the Company') as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENTS' RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys' management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companys' policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on the Companys' internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the 'Guidance Note') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys' internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Companys' internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys' internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally acceptec accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys' assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
 |
For Apaji Amin & Co. LLP Chartered Accountants Firm Registration No.: 100513W/W100062 |
 |
Tehmul B. Sethna |
Place : Ahmedabad |
Partner |
Date : 14 May 2018 |
Membership No: 035476 |
Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of HESTER BIOSCIENCES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss and Cash Flow Statement for the year ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements to give a true and fair view of the financial position, financial performance and cash flow of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions 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 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone 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 there under.
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 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 auditorâs 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 Companyâs 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 the Companyâs 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31 March 2017 and its profits and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 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 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 it 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 aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on 31 March 2017, taken on record by the Board of Directors, none of the director is disqualified as on 31 March 2017, from being appointed as a Director in terms of Section 164(2) of the Act.
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure Bâ; and
g. With respect to the other matters to be included In the Auditorâs 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 explanations given to us :
i) The Company doesnât have any pending litigations which would impact its financial position in its financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in its standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 31 to the standalone financial statements.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31 March 2017, we report that:
i) In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in phased manner by the management during the year, which in our opinion is reasonable, having regards to the size of the Company and nature of the assets. No material discrepancies were noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) As explained to us, physical verification of the inventories have been conducted at reasonable intervals by the management, which in our opinion is reasonable, having regard to the size of the Company and nature of its inventories. No material discrepancies were noticed on such physical verification.
iii) The Company has granted unsecured loan to Subsidiary Company covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ). There are no firms, Limited Liability Partnership and other parties covered in the register maintained under section 189 of the Act.
(a) In respect of the aforesaid loan, the terms and conditions under which such loans were granted are not prejudicial to Companyâs interest.
(b) In respect of aforesaid loan, no schedule for repayment of principal and payment of interest has been stipulated by the Company. Therefore, in the absence of stipulation of repayment terms, we donât make any comment in the regularity of repayment of principal and payment of interest.
(c) In respect of the aforesaid loan, there is no amount which is overdue for more than ninety days.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v) According to information and explanation given to us, the Company has not accepted any deposits from the public in accordance with the provisions of sections 73 to 76 of the Act and rules framed there under.
vi) We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that, the prescribed accounts and cost records have been made and maintained. We have not, however, made a detailed examination of the same.
vii) In respect of Statutory dues:
a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been regularly deposited with the appropriate authorities. According to information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31 March 2017 for a period of more than six months from the date they become payable.
According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess on account of any dispute, which have not been deposited with the appropriate authorities on account of any dispute other than those mentioned in Note 29 of notes to the financial statements.
viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management, we are of the opinion that company has not defaulted in repayment of dues to bank. The Company does not have any borrowing from financial institution, government or by way of debenture.
ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management and overall examination of the balance sheet, we report that monies raised by way of term loan was applied for the purposes for which the loan was obtained. No monies were raised, during the year, by the Company by way of initial public offer or further public offer (including debt instruments).
x) According to the information and explanation given to us, no material fraud by the Company or on the Company by its officers or employees have been noticed or reported during the year.
xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into noncash transactions with directors or persons connected with him.
xvi) According to the information and explanations given to us, the provisions of Section 45-IA of Reserve Bank of India Act, 1934 are not applicable to the company.
For Apaji Amin & Co. LLP
Chartered Accountants
Firm Registration No.: 100513W/W100062
Tehmul B. Sethna
Place: Ahmedabad Partner
Date: 8 May 2017 Membership No: 035476
Mar 31, 2015
We have audited the accompanying Standalone financial statements of
HEsTER BioscI ENcEs Limited ("the company"), which comprise the Balance
Sheet as at 31 March 2015, 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
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 standalone 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 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 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.
Auditors' Responsibility
our responsibility is to express an opinion on these standalone
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 Auditors' 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 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 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manners so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India of the Company as at 31 March 2015; and its
Profit and its cash flows of the Company for the Year ended on that
date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' 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, 2013 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
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 aforesaid standalone 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 and 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 Act.
f) With respect to the other matters to be included in the Auditors'
report in accordance with rule 11 of the companies (Audit and Auditors)
rules, 2014, in our opinion and to our best of our information and
according to the explanations given to us :
i. the company did not have any pending litigations which would impact
its financial position in its financial statements.
ii. the company did not have any long term contracts including
derivative contracts for which there were any material Foreseeable
losses.
iii. company has yet to transfer a sum of H214,208 to investor
Education and Protection Fund on account of Unclaimed Dividend which
was due for transfer on 17 october 2014.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our Report of even date)
(i) in respect of Fixed Assets :
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) the company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner by
the management during the year, which in our opinion is reasonable
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such verification.
(ii) in respect of its inventories :
(a) As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
(b) in our opinion and according to the information and explanation
given to us, 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) in our opinion and according to the information and explanation
given to us, the company is maintaining proper records of inventory. No
material discrepancies were noticed on physical verification.
(iii) the company has granted unsecured interest free loans to
companies covered in the register maintained under section 189 of the
companies Act, 2013.
(a) Loans granted by the company to companies covered in the register
maintained under section 189 of the companies Act, 2013 are interest
free and are repayable on demand.
(b) there are no overdue amounts of more than rupees one lakh in
respect of loans granted to the companies listed in the register
maintained under section 189 of the companies Act, 2013.
(iv) 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 with regard
to purchase of inventories and fixed assets and with regard to sale of
goods and services. During the course of our audit, we have not observed
any continuing failure to correct major weakness in the internal
controls system.
(v) According to the information and explanation given to us, the
company has not accepted any deposit during the year and accordingly
section 73 and 76 of the companies Act, 2013 is not required to be
complied with. During the year, company has repaid deposits remaining
outstanding as at the beginning of the year and has complied with the
directives issued by the Reserve Bank of india and the provisions of
sections 74 and 75 or any other relevant provisions of the companies
Act and the rules framed thereunder. We are informed that no 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.
(vi) We have broadly reviewed the books of account, relating to
materials and other items of cost maintained by the company in respect
of products where pursuant to the rules made by the central Government,
the maintenance of cost Records has been prescribed under sub-section
(1) of section 148 of the companies Act, 2013. We are of the opinion
that prima facie the prescribed accounts and records have been
maintained and are being made up. the same have been examined and
audited by an independent cost accountant.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the company, the
company is generally 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 applicable to it with
the appropriate authorities.
(b) According to the information and explanations given to us and on
the basis of our examination of the records of the company, there are
no dues of income tax or sales tax or wealth tax or service tax or duty
of custom or duty of excise or value added tax or cess which have not
been deposited on account of any dispute.
(c) A sum of Rs.214,208 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
thereunder has not been transferred to such fund within time.
(viii) The company does not have accumulated losses at the end of the
financial year and has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year;
(ix) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution or bank.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) in our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised and obtained;
(xii) To the best of our knowledge and according to the information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the year.
For SHAH NARIELWALA & CO
chartered Accountants
[FRN: 109708W]
Naishadh H. Shah
Place: Ahmedabad Partner
Date: 28 May 2015 Membership No: 042323
Mar 31, 2014
We have audited the accompanying financial statements of HESTER
BIOSCIENCES LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 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
The Company''s 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 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. 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 of
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 manners 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 31st March, 2014;
b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company 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 notified under
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of the 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 31st March, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 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 to the Independent Auditor''s Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our Report of even date)
We report that -
(1) In respect of its fixed assets:
(i) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(ii) The Company has a regular programme of Physical verification of
its fixed assets in periodic phase manner. In our opinion, this
periodicity of Physical verification is reasonable having regard to the
size of the company and nature of its assets. No material discrepancies
were noticed on such verification.
(iii) In our opinion, the Company has not disposed off a substantial
part of its fixed assets during the year and the going concern status
of the Company is not affected.
(2) In respect of its inventories:
(i) The inventories except stocks lying with the third parties have
been physically verified during the year as also at the end of the year
by management. In our opinion, the frequency of verification is
reasonable.
(ii) In our opinion and according to the information and explanation
given to us, 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.
(iii) In our opinion and according to the information and explanation
given to us, the company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
(3) In respect of loans granted or taken to / from companies, firms or
other parties covered in the Register maintained under Section 301 of
the Companies Act, 1956:
(i) The Company has granted interest free loans to two Companies listed
in the register maintained under Section 301 of the Companies Act,
1956. Outstanding balance of loans granted at the year end was Rs.
3,951,409/- (P.Y. Rs. 2,947,277/-). Maximum outstanding at any time
during the year of loans granted was Rs. 4,259,881/- (P.Y. Rs.
4,957,277/-).
(ii) In our opinion and according to the information and explanations
given to us, other terms and conditions on which interest free loans
have been granted to companies / other parties listed in the register
maintained under Section 301 of the Companies Act,1956 are not, prima
facie, prejudicial to the interest of the Company.
(iii) The interest free loans granted by the Company are repayable on
demand.
(iv) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act, 1956. Accordingly, paragraph
(iii) (f) and (iii) (g) of the order are not applicable to the company.
(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 with regard
to purchase of inventories, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls system.
(5) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956; to the best of our
knowledge and belief and according to the information and explanation
given to us:
(i) We are of the opinion that the transactions that need to be entered
into the register maintained under Section 301 of the Companies Act,
1956 have been so entered.
(ii) There are no transactions, which are made in pursuance of
contracts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956 and are exceeding the value of
rupees five lakhs in respect of any party during the year.
(6) In our opinion and according to the information and explanation
given to us, the company has complied with the directives issued by the
Reserve Bank of India and provisions of section 58A, 58AA or any other
relevant provisions of the Act and the rules framed thereunder, where
applicable with regards to the deposits accepted from public. We are
informed that no order has been passed by the Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
(7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(8) We have broadly reviewed the books of account, relating to
materials and other items of cost maintained by the company in respect
of product where pursuant to the rules made by the Central Government,
the maintenance of Cost Records has been prescribed under section
209(1) (d) of the Companies Act, 1956. We are of the opinion that prima
facie the prescribed accounts and records have been maintained and are
being made up. The same have been examined and audited by an
independent cost accountant.
(9) In respect of statutory and other dues :
(i) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor Education and Protection Fund, Employees'' state insurance,
Income- tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and other statutory dues applicable to it, during the year.
(ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid statutory dues were
outstanding, as at 31st March, 2014 for a period of more than six
months from the date they became payable.
(iii) According to the information and explanations given to us, there
are no dues in respect of aforesaid statutory dues that have not been
deposited with appropriate authority on account of dispute.
(10) The company does not have accumulated losses at the end of the
financial year. The company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
(11) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution or bank. The Company did not have any debentures or any
outstanding loans from financial institutions during the year.
(12) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company 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, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003(as amended) is not applicable to the
Company.
(14) The company is not dealing or trading in shares, securities,
debentures and other investments.
(15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institution.
(16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
(17) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(18) Based on our examination of records and the information provided
to us by management we report that the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act.
(19) During the period covered by our audit report, the company has not
issued any debentures.
(20) The company has not raised money through a public issue during the
year. Accordingly clause 4(xx) of the order is not applicable.
(21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For SHAH NARIELWALA & CO
CHARTERED ACCOUNTANTS
[FRN: 109708W]
(Naishadh H. Shah)
Place : Ahmedabad Partner
Date : 30 May, 2014 Member ship No: 042323
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of HESTER
BIOSCIENCES LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2013, 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 of
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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013,
b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company 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 31st March, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub- section
(1) of section 274 of the Companies Act, 1956.
We report that -
(1) In respect of its fixed assets:
(i) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(ii) The Company has a regular programme of Physical verification of
its fixed assets in phase manner over a period of three years. In our
opinion, this periodicity of Physical verification is reasonable having
regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such verification.
(iii) In our opinion, the Company has not disposed of substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
(2) In respect of its inventories:
(i) The inventories except stocks lying with the third parties have
been physically verified during the year as also at the end of the year
by management. In our opinion, the frequency of verification is
reasonable.
(ii) In our opinion and according to the information and explanation
given to us, 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.
(iii) On the basis of our examination of the records of inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
(3) In respect of loans granted or taken to / from companies, firms or
other parties in the Register maintained under Section 301 of the
Companies Act, 1956:
(i) The Company has granted interest free loans to three Companies
listed in the register maintained under Section 301 of the Companies
Act, 1956. Outstanding balance of loans granted at the year end was
Rs.2,947,277/-(Rs.2,036,444/-). Maximum outstanding at any time during
the year of loans granted was Rs. 4,957,277/- (Rs.2,042,799/-).
(ii) In our opinion and according to the information and explanations
given to us, terms and conditions on which interest free loans have
been granted to companies / other parties listed in the register
maintained under Section 301 of the Companies Act,1956 are not, prima
facie, prejudicial to the interest of the Company.
(iii) The interest free loans granted by the Company are repayable on
demand.
(iv) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, paragraphs (iii) (e) to (g)
of the Order are not applicable to the company.
(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 with regard
to purchase of inventories, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls system.
(5) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956; to the best of our
knowledge and belief and according to the information and explanation
given to us:
(i) We are of the opinion that the transactions that need to be entered
into the register maintained under Section 301 of the Companies Act,
1956 have been so entered.
(ii) There are no transactions, which are made in pursuance of
contracts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956 and are exceeding the value of
rupees five lakhs in respect of any party during the year.
(6) The Company has not accepted any deposits from the public.
(7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(8) We have broadly reviewed the books of account, relating to
materials and other items of cost maintained by the company in respect
of product where pursuant to the rules made by the Central Government,
the maintenance of Cost Records has been prescribed under section
209(1) (d) of the Companies Act, 1956. We are of the opinion that prima
facie the prescribed accounts and records have been maintained and are
being made up. The same have been examined and audited by an
independent cost accountant.
(9) In respect of statutory and other dues :
(i) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor Education and Protection Fund, Employees'' state insurance,
Income- tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty and other
statutory dues applicable to it, during the year.
(ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth-tax,
sales-tax, customs duty, excise duty were outstanding, as at 31st
March, 2013 for a period of more than six months from the date they
became payable.
(iii) According to the information and explanations given to us, there
are no dues in respect of income tax, sales tax, wealth tax, excise
duty, service tax that have not been deposited with appropriate
authority on account of dispute.
(10) The company does not have accumulated losses at the end of the
financial year. The company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
(11) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution or bank. The Company did not have any debentures or any
outstanding loans from financial institutions during the year.
(12) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company 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, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003(as amended) is not applicable to the
Company.
(14) The company is not dealing or trading in shares, securities,
debentures and other investments.
(15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institution.
(16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
(17) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(18) Based on our examination of records and the information provided
to us by management we report that the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act.
(19) During the period covered by our audit report, the company has not
issued any debentures.
(20) The company has not raised money through a public issue during the
year. Accordingly clause 4(xx) of the order is not applicable.
(21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For SHAH NARIELWALA & CO
Chartered Accountants
[FRN: 109708W]
(Naishadh H. Shah)
Place : Ahmedabad Partner
Date : May 30, 2013 Member ship No: 042323
Mar 31, 2012
1. We have audited the attached Balance Sheet of Hester Biosciences
Ltd. as at 31 March, 2012 and also the Statement of Profit and Loss and
Cash Flow Statement for the year ended on that date, annexed thereto.
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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. 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 principles used and significant estimates made
by 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 (Auditor's Report) Order, 2003 ("the
order"), as amended, issued by the Government of India in terms of
Section 227 (4A) of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we enclose the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. 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.
iii. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply, in all material
respects, with the applicable accounting standards referred to in
Section 211 (3C) of the Companies Act, 1956.
v. On the basis of written representations received from the directors
of the Company and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31 March, 2012 from
being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the statement
on Significant Accounting Policies and Notes to the financial
statements 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 principles generally accepted in India;
a. in the case of the Balance sheet, of the state of affairs of the
Company as at 31 March, 2012;
b. in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; an
c. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Central Government under section 227(4A) of the Companies Act, 1956
and in terms of the information and explanations given to us and also
on the basis of such checks as we considered appropriate, we further
report that:
1) In respect of its fixed assets:
i) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
ii) 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.
iii) In our opinion, the Company has not disposed of substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories:
i) The inventory has been physically verified during the year as also
at the end of the year by management. In our opinion, the frequency of
verification is reasonable.
ii) In our opinion and according to the information and explanation
given to us, 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.
iii) On the basis of our examination of the records of inventory, we
are of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3) In respect of loans granted or taken to / from companies, firms or
other parties in the Register maintained under Section 301 of the
Companies Act, 1956:
i) The Company has granted interest free loans to two Companies listed
in the register maintained under Section 301 of the Companies Act,
1956. Outstanding balance of loans granted at the year end was Rs.
2,036,444/-(Rs. 1,069,829/-). Maximum outstanding at any time during the
year of loans granted was Rs. 2,142,799/-(Rs. 1,088,557/-).
ii) In our opinion and according to the information and explanations
given to us, terms and conditions on which interest free loans have
been granted to companies / other parties listed in the register
maintained under Section 301 of the Companies Act,1956 are not, prima
facie, prejudicial to the interest of the Company.
iii) The interest free loans granted by the Company are repayable on
demand.
iv) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly, paragraphs (iii) (e) to (g)
of the Order are not applicable to the Company.
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 with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls system.
5) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956; to the best of our
knowledge and belief and according to the information and explanation
given to us:
i) We are of the opinion that the transactions that need to be entered
into the register maintained under Section 301 of the Companies Act,
1956 have been so entered.
ii) There are no transactions, which are made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and are exceeding the value of rupees five
lakhs in respect of any party during the year.
6) The Company has not accepted any deposits from the public.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of account, relating to materials
and other items of cost maintained by the Company in respect of product
where pursuant to the rules made by the Central Government, the
maintenance of Cost Records has been prescribed under section 209(1)(d)
of the Companies Act, 1956. We are of the opinion that prima facie the
prescribed accounts and records have been maintained and are being made
up. The same have been examined and audited by an independent cost
accountant.
9) In respect of statutory and other dues :
i) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor Education and Protection Fund, Employees' state insurance,
Income- tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess and
other statutory dues applicable to it, during the year.
ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth-tax,
sales-tax, customs duty, excise duty and cess were outstanding, as at
31 March, 2012 for a period of more than six months from the date they
became payable.
iii) According to the information and explanations given to us, there
are no dues in respect of income tax, sales tax, wealth tax, excise
duty, service tax or cess that have not been deposited with appropriate
authority on account of dispute.
10) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company 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, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003(as amended) is not applicable to the
Company.
14) The Company is not dealing or trading in shares, securities,
debentures and other investments.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institution.
16) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
18) During the year company allotted Equity Shares to parties and
companies covered in the register maintained under section 301 of the
Act, by conversion of equity warrants preferentially allotted to such
parties and companies in the immediate preceding previous year at a
price not prejudicial to the interest of the Company.
19) During the period covered by our audit report, the Company has not
issued any debentures.
20) The Company has not raised money through a public issue during the
year. Accordingly clause 4(xx) of the order is not applicable.
21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For SHAH NARIELWALA & CO
Chartered Accountants
[FRN: 109708W]
(Naishadh H. Shah)
Place : Ahmedabad Partner
Date : August 14, 2012 Member ship No: 042323
Mar 31, 2011
1. We have audited the attached Balance Sheet of Hester Biosciences
Ltd. as at 31st March, 2011 and also the Profit and Loss Account and
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the CompanyÃs management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. 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 principles used and significant estimates made
by 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 (AuditorÃs Report) Order, 2003 issued
by the Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us, we set out in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iv. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report have been prepared, in all
material respects, in compliance with the applicable accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956.
v. On the basis of written representations received from the directors
of the company and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March, 2011 from
being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and notes thereon give the information
required by the Companies Act, 1956, in the manner so required and
given 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 31st March, 2011:
b. in the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date and
c. in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Annexure to the Auditorsà Report referred to in Paragraph-3 of our
report of even date
As required by the Companies (Auditorsà Report) Order, 2003 issued by
the Central Government under section 227(4A) of the Companies Act, 1956
and in terms of the information and explanations given to us and also
on the basis of such checks as we considered appropriate, we further
report that:
(1) In respect of its fixed assets :
(i) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(ii) 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.
(iii) In our opinion, the Company has not disposed of substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
(2) In respect of its inventories :
(i) The inventory has been physically verified during the year as also
at the end of the year by management. In our opinion, the frequency of
verification is reasonable.
(ii) In our opinion and according to the information and explanation
given to us, 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.
(iii) On the basis of our examination of the records of inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
(3) In respect of loans granted or taken to / from companies, firms or
other parties in the Register maintained under Section 301 of the
Companies Act, 1956 :
(i) The Company has granted loans to three Companies listed in the
register maintained under Section 301 of the Companies Act,1956.
Outstanding balance of loans granted at the year end was Rs.
1,069,829/- (Rs. 693,014/-). Maximum outstanding at any time during the
year of loans granted was Rs. 1,088,557/- (Rs. 3,878,015/-).
(ii) In our opinion and according to the information and explanations
given to us, the rates of interest and other terms and conditions on
which loans have been granted from companies/ other parties listed in
the register maintained under Section 301 of the Companies Act,1956 are
not, prima facie, prejudicial to the interest of the Company.
(iii) The loans granted by the Company are at call and no stipulations
have been made regarding payment of interest.
(iv) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act and hence we have nothing to comment
there on.
(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 with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal controls system.
(5) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956 :
(i) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(ii) In our opinion and according to the information and explanations
given to us, there are no transactions, which are made in pursuance of
contacts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956 and are exceeding the value of
rupees five lakhs in respect of any party during the year.
(6) The Company has not accepted any deposits from the public.
(7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(8) We have broadly reviewed the books of accounts, relating to
materials and other items of cost maintained by the company in respect
of product where pursuant to the rules made by the Central Government,
the maintenance of Cost Records has been prescribed under section
209(1)(d) of the Companies Act, 1956. We are of the opinion that prima
facie the prescribed accounts and records have been maintained and are
being made up. We have been informed that the same have been examined
by an independent cost accountant.
(9) In respect of statutory and other dues :
(i) According to the records of the company, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, Investor Education and Protection Fund,
Employeesà state insurance, Income-tax, Sales- tax, Wealth Tax, Custom
Duty, cess and other statutory dues applicable to it.
(ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, Investor
Education and Protection Fund, Employeesà state insurance, Income-tax,
Sales- tax, Wealth Tax, Custom Duty, cess and other statutory dues
applicable to it were outstanding, as at 31st March, 2011 for a period
of more than six months from the date they became payable. However
undisputed income tax liability outstanding for more than six month as
on 31st March 2011 amounted to Rs. Nil (Rs. Nil).
(iii) According to the information and explanations given to us, there
are no dues in respect of sales tax /income tax / custom duty / wealth
tax / service tax / excise duty / cess that have not been deposited
with appropriate authority on account of any dispute.
(10) The company does not have accumulated losses at the end of the
financial year. The company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
(11) 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 a financial
institution, bank or debenture holders.
(12) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company 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, clause 4(xiii) of the Companies
(AuditorÃs Report) Order 2003 is not applicable to the Company.
(14) The company is not dealing or trading in shares, securities,
debentures and other investments.
(15) The Company has not given any guarantee for loans taken by others
from bank or financial institution.
(16) As informed to us, the term loans have been applied for the
purpose for which they were raised.
(17) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment. No long- term funds have been used to finance
short-term assets except core (permanent) working capital.
(18) According to the information and explanation given to us, the
Company has made preferential allotment of Equity Warrants with an
option to convert into Equity shares at a future date to parties and
companies covered in the register maintained under section 301 of the
Act at a price not prejudicial to the interest of the company.
(19) During the period covered by our audit report, the company has not
issued any debentures.
(20) According to the information and explanations given to us, during
the year, the company has not raised money by public issue. Accordingly
clause 4(xx) of the order is not applicable.
(21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
for Shah Nariealwala & Co
Chartered Accountants
(Naishadh H. Shah)
Partner
Member ship No: 042323
F.R.N.109708W
Place : Ahmedabad
Date : 24th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Hester Biosciences Ltd.
as at 31st March, 2010 and also the Profit and Loss Account and Cash
Flow Statement for the year ended on that date. 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 auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. 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 principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Government of India in terms of Section 227 (4A) of the Companies
Act, 1956 and on the basic of such checks as we considered appropriate
and according to the information and explanations given to us, we set
out in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iv. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report have been prepared, in all
material respects, in compliance with the applicable accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956.
v. On the basis of written representations received from the directors
of the company and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March, 2010 from
being appointed as a director in terms of Section 274(l)(g) of the
Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and
given 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 31st March, 2010:
b. in the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date and
c. in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Annexure to the Auditors Report referred to in Paragraph-3 of our
report of even date
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government under section 227(4A) of the Companies Act, 1956
and in terms of the information and explanations given to us and also
on the basis of such checks as we considered appropriate, we further
report that:
(1) (i) The company has maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(ii) 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.
(iii) In our opinion, the Company has not disposed of substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
(2) (i) The inventory has been physically verified during the year as
also at the end of the year by management. In our opinion, the
frequency of verification is reasonable.
(ii) 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.
û (iii) On the basis of our examination of the records of inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
(3) (i) The Company has granted loans to Companies listed in the
register maintained under Section 301 of the Companies Act,1956.
Outstanding balance of loans granted at the year end was Rs. 693,015/-
(Rs. 3,865,015/-) Maximum outstanding during the year of loans granted
was Rs. 3,878,015/- (Rs. 3,865,015 /-) .
(ii) In our opinion and according to the information and explanations
given to us, the rates of interest and other terms and conditions on
which loans have been granted from companies/ other parties listed in
the register maintained under Section 301 of the Companies Act,1956 are
not, prima facia, prejudicial to the interest of the Company.
(iii) The loans granted by the Company are at call and no stipulations
have been made regarding payment of interest.
(iv) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Act and hence we have nothing to comment
thereon.
(4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. We have not noted any continuing failure
to correct major weakness in the internal controls during the course of
audit.
(5) (i) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
(ii) In our opinion and according to the information and explanations
given to us, there are no transactions, which are made in pursuance of
contacts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956 and are exceeding the value of
rupees five lakhs in respect of any party during the year.
(6) The Company has not accepted any deposits from the public.
(7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(8) We have broadly reviewed the books of accounts, relating to
materials and other items of cost maintained by the company in respect
of product where pursuant to the rules made by the Central Government,
the maintenance of Cost Records has been prescribed under section
209(l)(d) of the Companies Act, 1956. We are of the opinion that prima
facie the prescribed accounts and records have been maintained and are
being made up. The same have been examined and audited by an
independent cost accountant.
(9) (i) According to the records of the company, the company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees state insurance,
income- tax, sales-tax, cess and other statutory dues applicable to it.
(ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of wealth-tax, sales-tax, customs
duty and excise duty were outstanding, as at 31st March, 2010 for a
period of more than six months from the date they became payabLe.
However undisputed income tax liability outstanding for more than six
month as on 31st March 2010 amounted to Rs.Nil (Rs. 10,400,080).
(iii) According to the information and explanations given to us, there
are no dues in respect of income tax, excise duty, sales tax, wealth
tax, service tax or cess that have not been deposited with appropriate
authority on account of dispute.
(10) The accumulated losses of the company are not more than fifty
percent of its net worth. The company has not incurred any cash losses
during the financial year covered by our audit and the immediately
preceding financial year.
(11) 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 a financial
institution, bank or debenture holders.
(12) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company 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, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
(14) The company is not dealing or trading in shares, securities,
debentures and other investments.
(15) The Company has not given any guarantee for loans taken by others
from bank or financial institution.
(16) As informed to us, the term loans have been applied for the
purpose for which they were raised.
(17) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short- term basis have been used for
long-term investment. No long-term funds have been used to finance
short-term assets except core (permanent) working capital.
(18) Based on our examination of records and the information provided
to us by management we report that the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act.
(19) During the period covered by our audit report, the company has not
issued any debentures.
(20) According to the information and explanations^given to us, during
the year, the company has not raised money by public issue. Accordingly
clause 4(xx) of the order is not applicable.
(21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
for Shah Nariealwala & Co
Chartered Accountants
D.R. Shah
Partner
Place : Ahmedabad Member ship No: 36805
Date : 23.05.2010 F.R.N.109708W