Mar 31, 2014
We have audited the accompanying financial statements of LOOKS HEALTH
SERVICES LIM- ITED (the Company), which comprise the Bal- ance Sheet as
at March 31,2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of signifi- cant
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 Com- pany in
accordance with the Accounting Stan- dards 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 In- dia. This
responsibility includes the design, imple- mentation 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.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reason-
able assurance about whether the financial state- ments are free from
material misstatement.
An audit involves performing procedures to ob- tain audit evidence
about the amounts and dis-
closures in the financial statements. The proce- dures 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 as- sessments, the auditor considers
internal con- trol relevant to the Company''s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appro- priate in the circumstances, but not for the
pur- pose of expressing an opinion on the effective- ness 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 manage- ment, as well as evaluating
the overall presenta- tion of the financial statements. We believe that
the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
infor- mation required by the Act in the manner so re- quired and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) In the case of the Statement of Profit and Loss, of the Loss 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 REGULA- TORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) 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 re- port that:
a. We have obtained all the information and expla- nations 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 re- quired by law have
been kept by the Company so far as appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with Accounting Standards notified
under 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.
e. On the basis of the written representations re- ceived from the
directors as on March 31,2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT Referred to in Paragraph 1
under the heading of "report on other legal and regulatory requirements"
of our report of even date -
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. According to the information and explanation
given to us, no material discrepancies were noticed on such physical
verification.
c) In our opinion, the Company has not disposed of a substantial part
of its fixed assets during the year and the going concern status of the
Com- pany is not affected.
2. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opin- ion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
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 na- ture of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical veri- fication of inventories as compared to the book records.
3. Company has not taken or granted any loans, secured or unsecured,
from / to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an ad- equate internal control system
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for the
sale of goods and ser- vices. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in such
internal control sys- tem.
5. In respect of the contracts or arrangements re- ferred to in Section
301 of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, there were no trans- actions made in pursuance of
contracts / arrange- ments that need to be entered in the Register
maintained under section 301 of the Companies Act, 1956 and exceeding
the value of Rs.5,00,000.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. Although, the company did not have a formal in- ternal audit system
during the previous year, in our opinion, its internal control
procedures in- volved reasonable internal checking of its finan- cial
and business transaction.
8. According to information and explanation given to us, provisions of
cost records to be maintained pursuant to the Companies (Cost
Accounting Records) Rules, 2011 as prescribed by the Cen- tral
Government under Section 209(1)(d) of the Companies Act, 1956 are not
applicable to the Company.
9. In respect of statutory dues:
a) According to the records of the Company, undis- puted statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employ- ees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Cess, and other material
statutory dues have been generally regularly deposited with the ap-
propriate authorities. According to the information and explanations
given to us, no undisputed amounts are payable in respect of the
aforesaid dues were outstanding as at March 31,2014 for a period of
more than six months from the date of becoming payable.
b) Details of dues of Income Tax, Sale Tax, Custom Duty and Excise Duty
which have not been de- posited as on March 31,2014 on account of dis-
putes are given below:
Name of the Statute -
Nature of the Dues -
Amt in Rs the amount Relates -
Period to which -
Forum where dispute is pending -
10. The Company has accumulated losses at the end of the financial year
but are not more than 50% of networth. The Company has not in- curred
cash losses during the financial year covered by the audit & in
immediately preced- ing financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, Company has not raised any funds from
financial institutions, banks and debenture hold- ers so the question
of default in their repay- ment is not applicable.
12. In our opinion and according to the explana- tions given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of secu- rity by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company has not carried out any transac-
tions in respect of dealing or trading in shares, securities,
debentures and other investments. According to the information
provided to us & from records it was seen that Company does not have
any investments.
15. According to the information and explanation given to us by the
management, Company has not given any guarantees for loans taken by
others from banks and financial institutions.
16. The Company has not raised any term loans during the year so
question of application of same is not applicable.
17. According to the information and explanations given to us and
on an overall examination of the Balance Sheet of the Company, we
are of the opinion that no funds raised on short term basis have
been used for long-term investment during the year.
18. The Company has not made any preferential allotment of shares to
parties and companies cov- ered in the Register maintained under
Section 301 of the Companies Act, 1956.
19. According to the information and explanations
given to us, the Company has not issued any secured debentures.
20. The Company has not raised any capital by way
of public issues during the year.
21. To the best of our knowledge and according to the information and
explanations given to us, no material fraud on or by the Company has
been noticed or reported during the year.
FOR S. D. MOTTA & ASSOCIATES
Chartered Accountants
Date : 30/05/2014
Sanjay Motta
Proprietor
Place : Dombivali
Proprietor
Mem.No.107688
Mar 31, 2013
Report on Financial Statement
We have audited the accompanying financial statements of Looks Health
Services Ltd., which comprise the Balance Sheet as at 31 st 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
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 the cash flows of the company in
accordance with the Accounting Standards referred to in Section 211
(3C) of the Companies Act 1956, and in accordance with die accounting
principles generally accepted in India. The responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
true and fair view and 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 the
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 the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of 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 the accounting policies used and the
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013.
ii) In the case of the Statement of Profit and Loss, of the profit of
the company for the year ended on that date, and
iii) 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 issued by
the Central Government in terms of Section 227(4A) 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 the 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 this report are in agreement with the books
of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211 (3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 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 Section 274(l)(g) of the
Act.
The Annexure referred to in paragraph 1 of our Report of even date to
the members of Looks Health Services Limited on the accounts of the
Company for the year ended 31st Mar.''2013 -
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that -
1) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of information available.
2) According to the information and explanations given to us, the fixed
assets have been physically verified by the management at reasonable
interval during the year, which in our opinion is reasonable, having
regard to the size of the Company and nature of the assets. No material
discrepancies were noticed on such physical verification.
3) In our opinion and according to the information and explanations
given to us, no Fixed Assets had been disposed off by the Company
during the year.
4) As explained to us, the inventories have been physically verified by
the management at reasonable intervals during the year. In our opinion,
the frequency of such verification is reasonable having regard to the
size of the Company and the nature of its business.
5) 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 the business.
6) The Company has been maintaining proper records of inventory.
However discrepancies noticed on physical verification of stocks, as
compared to book records were not material and have been properly dealt
within the books of accounts.
7) The Company has granted loans, secured or unsecured, to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956 and the terms and conditions of the said
loans are prima facie not prejudicial to the interest of the Company
except Interest not charged. The maximum amount outstanding during the
year was Rs 1035407/- and the year-end balance of such loan amounted to
Rs 503605/-.
8) The Company has not taken loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956.
9) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods & services. During the course of audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of Company.
10) According to the information and explanations given to us, we are
of the opinion that the particulars of all con- tracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered. In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of rupees five lakhs in respect of any party
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
11) In our opinion, and according to the information and explanations
given to us, the provisions of Sections 58 A and 58AA of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the public are not applicable to
the Company as Company has not accepted any deposits from the public.
12) Company does not have any formal internal audit system but
according to management they have strong internal control commensurate
with the size & nature of its business
13) The provisions of maintaining cost records pursuant to the Rules
made by the Central Government for the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 in respect of
certain manufacturing activities are not applicable to the Company.
14) According to the information and explanations given to us by
management, there are no undisputed statutory dues payable in respect
of Investor Education and Protection Fund, Income-tax, Sales-Tax,
Custom Duty, Service Tax etc. which are outstanding as at 31st March''13
for a period of more than six months from the date they became payable.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
15) Accumulated losses at the end of the financial year are not more
than 50% of Net worth of the Company & Company has incurred cash losses
during the financial year and in immediately preceding financial year
as well.
16) Company has not obtained loan from any financial institution or
bank or debenture holder so question of default does not arise.
17) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence the requirements of item (xii) of paragraph 4 of the Order is not
applicable to the company.
18) The company is not a Chit Fund, Nidhi or mutual benefit Society.
Hence the requirements of item (xiii) of paragraph 4 of the Order is
not applicable to the company.
19) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
20) 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.
21) As per information and explanations given to us & from records it
is observed that company has not taken any term loan taken during the
year.
22) According to the information and explanations given to us and on
the examination of records, no funds raised on short-term basis have
been used for long-term investment.
23) According to the information and explanations given to us company
has not made preferential allotment of shares to companies listed in
the register maintained under section 301 of the Companies Act, 1956.
24) The company has not issued any debentures. Hence the requirements
of clause (xix) of paragraph 4 of the Order is not applicable to the
company.
25) As informed & explained to us & as verified, the Company has raised
Rs. 12 Crore by way of Public Issue of 30,00,000 Equity Shares @
Rs.40/- each (Including Premium of Rs.30/- per share) during the year
and we have verified the disclosure made & certified by the management
regarding the end use of the IPO Proceeds.
26) From the examination of records and according to the information
and explanations given to us, fraud on or by the company has not been
noticed or reported during the year.
For S. D. Motta & Associates
Chartered Accountants
Sd/-
Place - Mumbai (Sanjay D. Motta)
Date - 30/05/2013 Proprietor