Mar 31, 2016
To the Members of
Medinova Diagnostic Services Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Medinova Diagnostic Services Limited (''the Companyâ), which comprise the Balance sheet as at 31st March 2016, the Statement of Profit and Loss and the Cash Flew 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 Sub-Section 5 of Section 134 of the Companies Act, 2013 (''the Actâ) with respect to the preparation and presentation 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating 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 Sub-Section 10 of section 143 of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether 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 auditorsâ judgment, including 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 a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the 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 3151 March 2016 and its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS AS REQUIRED BY SECTION 143(3) OF THE ACT. We report that:
1. As required by the Companies (Audit Report) Order, 2016 (âthe Order'') issued by the Central Government of India in terms of sub - section 11 of Section 143 of the Act, w e give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Sub-Section 3 of Section 143 of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Prof it and Loss and the Cash Row Statement dealt with by the 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 the written representations received from the directors as on 31st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Sub-Section 2 of Section 164 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 âAnnexure B'' ; and
g) With respect to the other matters to be included in the Auditors â Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us
i. There were no pending litigations that effects the Company''s financial position.
ii. The Company does not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Referred to in Paragraph 1 under the heading âReport on other Legal & Regulatory Requirement" of our report of even date to the financial statements of the Company for the year ended 31st March 2016:
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. The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
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.
2. Stocks of Diagnostic kits, Lab Chemicals, Consumables, Medicare items, house-keeping items, stationery have been physically verified by the management during the year at reasonable intervals, the frequency of which in our opinion is reasonable.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in Register maintained under Section 189 of the Act.
4. In our opinion and according to the information and explanations given to us, the company has not given any loan or guarantees or made investments as contemplated under Section 185 and 186 of the Companies Act, 2013.
5. The Company has not accepted any deposits from the public and therefore, the provisions of the Clause 3(v) of the Order are not applicable to the Company.
6. Reporting under Clause 3(vi) of the Order is not applicable as the Companyâs business activities are not covered by the Companies (Cost Records and Audit) Rules, 2014.
7. According to the information and explanations given to us, in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues, including provident fund, employee state insurance, Income Tax, Cess and other statutory dues applicable to it with the appropriate authorities.
b. There were, no undisputed amounts payable in respect of provident fund, employee state insurance, Income Tax, Cess and other Statutory dues in arrears as at 31st March 2016 for a period of more than six from the date they became payable except in the following cases.
Name of the Statute |
Nature of Dues |
Amount (Rs.) |
Customs Act,1962 |
Due including interest & Penalty |
2,93,848 |
Income Tax Act,1961 |
Interest on Delay Payment of TDS |
13,29,715 |
Employee State Insurance Act,1948 |
Contribution Payable |
89,072 |
Professional Tax Act, 1987 |
Professional Tax Payable |
18,880 |
c. According to the information and explanations given to us and on the basis of our examination of records of the company, there w ere no amounts which were required to be transferred to the Investor Education and protection fund in accordance with the relevant provisions of the Companies Act, 2013 and Rules there under.
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9. The Company has not raised monies by way of initial public offer or further public offer (including debt instruments) or term loans hence reporting under clause 3(ix) of the Order is not applicable.
10. To the best of our knowledge and the information and explanations given to us, no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. The company is not a Nidhi company. Accordingly, paragraph 3(xii) of the order is not applicable.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.
14. 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.
15. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. The company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) Of Sub-Section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal controls over financial reporting of Medinova Diagnostics Services Limited (âthe Companyâ) as of 31st March 2016 in conjunction with our audit of the Standalone Financial Statements of the company for the year ended on the date.
Managementâs Responsibility for Internal Financial Controls
The companyâs management is responsible for establishment and maintaining internal financial control based on the internal control over financial reporting criteria established by the company considered 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 the Chartered Accountants of India (âthe Guidance Noteâ). 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 companyâs 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 Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the companyâs 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 âGuidance noteâ) 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. Those standards and 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 aspects.
Our audit involves performing procedure 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 controls based on the assessed risk. The procedure selected depends on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone 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 audit opinion on the companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs internal financial control over financial reporting includes those principles and procedure that
i. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company.
ii. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and the receipts and expenditure of the company are being made on only in accordance with authorization of the management and directors of the company; and
iii. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Controls over Financial Reporting
Because of 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, projection of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the company has, in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on the internal control over financial reporting criteria established by the company considered the essential components of internal control stated in the Guidance Note.
For Ratnam Dhaveji & Co
Chartered Accountants
Firm Regn No 006677S
C V Ratnam Dhaveji
Place: Hyderabad Partner
Date: 25.05.2016 M.No 203479
Mar 31, 2015
We have audited the accompanying financial statements of Medinova
Diagnostic Services Limited ("the Company "), which comprise the
Balance Sheet as at March, 31, 2015, the Profit and Loss Statement, 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 stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India including the Accounting Statements
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
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 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 misstatements. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
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 the
Company's directors, as well as evaluating the overall presentation of
the financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion on the financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS As required by Section 143(3) of the Act.
We report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid 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 the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in its
notes.
ii) The Company does not have any long-term contracts including
derivative contracts as such there is no requirement to make provision.
iii) There were no amounts required to be transferred, to the Investor
Education and Protection Fund by the Company
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. The company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification.
c. In our opinion, this periodicity of physical verification is
reasonable having regard to the size of the company and its nature of
its assets.
2. In respect of inventories;
a. The stocks of machine spares and consumables have been physically
verified by the management during/at the end of year, the frequency of
which, in our opinion, is reasonable.
b. In our opinion the procedures for physical verification of stocks
followed by the management is reasonable and adequate with reference to
the size of the Company and the nature of its operations.
c. The company has maintained proper records showing full particulars,
including according to the information given, there were no
discrepancies noted on physical verification of stocks.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act, Therefore, the provisions of Clause
3(iii), (iii a) & (iii b) of the said Order are not applicable to the
Company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system that
commensurate with the size of the company and the nature its business
with regard to purchase of fixed assets and sale of services. Further,
on the basis of our examination of the books and records of the
company, and according to the information and explanations given to us,
we have neither come across, nor have been informed, of any continuing
failure to correct major weakness in the aforesaid internal control
system.
5. The company has not accepted any deposits from the public.
6. The Central Government has not prescribed the maintenance of cost
records under Section 148(1) of the Act, for any of the services
rendered by the company.
We have broadly reviewed the books of account maintained by the Company
in respect of products where, pursuant to the rules made by the Central
Government of India, the maintenance of cost records has been specified
under sub section (1) of Section 148 of the Act, and are of the opinion
that primafacie, the prescribed accounts and records have been made and
maintained. We have not, however made a detailed examination of the
records with a view to determine whether they are accurate or complete.
7. a. According to the information and explanations given to us and on
the basis of the examination of records of the company, amounts
deducted/accrued in the books of accounts in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, employee state insurance and other material statutory
dues as applicable have been regularly deposited, though there has been
a slight delay in depositing in some cases. No undisputed amounts
payable in respect of the aforesaid dues were outstanding as at March
31, 2015 for a period of more than 6 months from the date of becoming
payable expect in the following cases.
Sl.
No Name of the
Statute Nature of
Liability Amount (Rs.)
1. Customs Act, 1962 Custom Duty
(Including Interest
& Penalty) 2,93,848
2. Income Tax Act, 1961
Interest on Delayed
Payment of TDS 11,26,877
3. The Employees'
Provident
Funds and Contributions
Payable 44,416
Miscellaneous
Provisions
Act, 1952
4. Employee State
Insurance
Act, 1948 Contributions
Payable 92,137
b. According to the information and explanations given to us and on the
basis of our examination of records of the Company, there are no
material dues which have not been deposited with the appropriate
authorities on account of any dispute. However according to the
information and explanations given to us following dues have not been
deposited by the company on account of disputes.
Sl.
No Name of the Statute Forum where
dispute Period to
which Amount
is pending the amount
relates (Rs.)
1. The Employees'
Provident Funds Employees
Provident fund 1998-2001 5,61,36
and Miscellaneous
Provisions Act, 1952 Appellate
Tribunal,
New Delhi.
c. According to the information and explanations given to us and on the
basis of our examination of records of the Company, there were no
amounts which were required to be transferred to the investor education
and protection fund in the accordance with the relevant provisions of
the Companies Act, 1956 (1 of 1956) and rules there under.
8. The Accumulated losses of the Company at the end of the financial
year are more than Fifty percent of its Net worth. The company has
incurred cash losses in the financial year. However, the company has
not incurred cash losses in immediately preceding financial year.
9. The company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year, Therefore,
the provisions of Clause (ix) of the said Order is not applicable.
10. In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions. Therefore,
the provisions of Clause (x) of the said Order is not applicable.
11. The Company did not have any term loans outstanding during the
year. Therefore, the provisions of Clause (xi) of the said Order is not
applicable.
12. According to the information and explanations, no material fraud
on or by the Company has been noticed or reported during the course of
our audit.
for Ratnam Dhaveji & Co
Chartered Accountants
Firm Regn. No. 006677S
Place : Hyderabad C V Ratnam Dhaveji
Date : 22nd May, 2015 Partner
M.No. 203479
Mar 31, 2014
We have audited the accompanying financial statements of MEDINOVA
DIAGNOSTIC SERVICES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2014, the Profit and Loss Statement and the
Cash Flow Statement for the year then ended and a summary of the
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 principles generally accepted in India, including
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 controls 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 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 the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal controls 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 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 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, 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 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 sub-section (3) of section 227 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 purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
e) On the basis of the written representations received from the
directors as on 31st March, 2014 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 Act.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. All fixed 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.
c. During the year, the company has disposed off the company''s
Diagnostic Unit at Bangalore together with all its assets and
liabilities. According to the information and explanations given to us,
we are of the opinion that the sale of the said unit has not affected
the going concern status of the company.
ii) a. The Management has conducted physical verification of inventory
at reasonable intervals during the year.
b. 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. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a. The Company had taken Loans from three parties covered in the
Register maintained under section 301 of the Companies Act, 1956.
However loans obtained from two parties were settled by way of
assignment of Debt / adjustment towards sale consideration during the
year. The maximum amount involved during the year was Rs.16,82,21,893/-
and the yearend balance was Rs. 23,63,045/-. The said loans/ advances
are interest free and other terms and conditions on which the said
loans/ advances were obtained are not prima facie prejudicial to the
interest of the Company. As per the information and explanations given
to us, there are no specific conditions as to repayment of these loans.
b. The Company had granted inter-corporate loans, unsecured loans
(including the balances in current account under loans and advances) to
a Company listed in the register maintained under Section 301 of the
Companies Act, 1956. However, the said loans advanced were settled by
way of assignment of Debt during the year. The maximum amount involved
during the year in these transactions was Rs. 12,35,38,622/- and the
year-end balance of the said Loans & Advances was Rs.NIL.
iv) In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of it''s
business, with regard to purchase of inventory and fixed assets and
with regard to sale of Services. During the course of our audit no
major weaknesses have been noticed in internal controls in these areas.
v) a. 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.
b. 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 have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi) In our opinion and according to the information and explanations
given to us, during the year under audit, the Company has not accepted
any deposits in the nature of public Deposits.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records by the Company under section 209(1)(d) of the Companies Act,
1956 for any of its products.
ix) a. The provisions of Sales Tax, Excise Duty, Cess and others are
not applicable to the company. However, the Company is not regular in
depositing the Provident Fund and Employees'' State Insurance
Contributions & Income tax Dues.
b. According to the information and explanations given to us excepting
an amount of Rs.19,05,031/- representing Provident Fund, ESI
Contributions and Income Tax dues, there were no other undisputed
statutory dues outstanding, at the yearend for a period of more than
six months from the date they became payable.
c. According to the records of the Company and on the basis of the
information and explanations given to us, there are no dues of
Sales-tax, Income-tax, Custom Duty, Wealth tax, Excise Duty, Service
Tax & Cess which have not been deposited on account of any dispute,
excepting the interest on Provident Fund as per the details given
hereunder.
Name of Amount Period to Forum where
the (Rs.in which the dispute is
Statute lakhs) amount pending
relates
Employees 5.61 1998-2001 Employees
Provident Provident Fund
Fund Appellate
Act,1952 Tribunal,
New Delhi.
x) The accumulated losses of the Company at the end of the Financial
Year are more than Fifty percent of its net worth. The Company has not
incurred cash losses during the financial year and in the immediately
preceding Financial Year.
xi) The company has not defaulted in repayment of dues to Financial
Institutions, Banks and Debenture Holders.
xii) The Company has not granted any loans or advances on the basis of
security by the way of pledge of shares, debentures or other
securities.
xiii) In our opinion, the Company is not a chit fund, nidhi or mutual
benefit fund / society. Therefore, the provisions of Clause 4 (xiii) of
the order are not applicable.
xiv) In our opinion, and according to the information and explanations
given to us, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the order are not applicable to the
Company.
xv) The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
xvi) The provisions of Clause (xvi) is not applicable to the Company
during the year under consideration since there are no term loans
outstanding as at the year end.
xvii) The funds raised on short term basis have not been used for long
term investment and whereas part of long term funds were used for
working capital requirement of the company.
xviii) During the year, the Company has not made, any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures and hence creation of
securities or charge for debentures does not arise.
xx) During the year, the company has not raised any money by way of
public issue. Hence other matters specified in the Clause are not
applicable to the Company.
xxi) As per the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
for J B REDDY & CO.,
Chartered Accountants
Firm Regn. No. 003256S
Place : Hyderabad A V REDDY
Date : 30th May, 2014 Partner
M.No. 023983
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of MEDINOVA
DIAGNOSTIC LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2013, the Profit and Loss Statement and the
Cash Flow Statement for the year then ended and a summary of the
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 principles generally accepted in India, including 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 controls 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 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 the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal controls 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 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 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 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 Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2003("the
Order") issued by the Central Government 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 sub-section (3) of section 227 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 purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 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 clause (g) of sub-
section (1) of section 274 of the Act.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. All fixed 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.
c. There was no substantial disposal of Fixed Assets during the Year.
ii) a. The Management has conducted physical verification of inventory
at reasonable intervals during the year.
b. 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. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a. The Company had taken Loans from three parties covered in the
Register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the yearend balance was
Rs.16,27,77,917/-. The said loans/ advances are interest free and other
terms and conditions on which the said loans/ advances were obtained
are not prima facie prejudicial to the interest of the Company. As per
the information and explanations given to us, there are no specific
conditions as to repayment of these loans.
b. The Company had granted inter-corporate loans, unsecured loans
(including the balances in current account under loans and advances) to
a Company listed in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved in these transactions
during the year was Rs.12,53,87,256/- and the year-end balance of the
said Loans & Advances was Rs.12,26,97,637/-. As per the information and
explanations given to us, in view of the settlement arrangement reached
with the said Company, no further interest is to be charged on the dues
w.e.f 1st April, 2004 and the said dues are to be repaid by the said
Company in a phased manner.
iv) In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of it''s
business, with regard to purchase of inventory and fixed assets and
with regard to sale of Services. During the course of our audit no
major weaknesses have been noticed in internal controls in these areas.
v) a. 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.
b. 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 have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi) In our opinion and according to the information and explanations
given to us, during the year under audit, the Company has not accepted
any deposits in the nature of public Deposits.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii The Central Government has not prescribed maintenance of cost
records by the Company under section 209(1)(d) of the Companies Act,
1956 for any of its products.
ix a. The provisions of Sales Tax, Excise Duty, Cess and others are not
applicable to the company. However, the Company is not regular in
depositing the Provident Fund and Employees'' State Insurance
Contributions & Income tax Dues.
b. According to the information and explanations given to us excepting
an amount of Rs.32,47,831/- representing Provident Fund and ESI
Contributions & Income Tax dues, there were no other undisputed
statutory dues outstanding, at the yearend for a period of more than
six months from the date they became payable.
c. According to the records of the Company and on the basis of the
information and explanations given to us, there are no dues of
Sales-tax, Income-tax, Custom Duty, Wealth tax, Excise Duty, Service
Tax & Cess which have not been deposited on account of any dispute,
excepting the interest on Provident Fund as per the details given
hereunder.
Name of Amount Period to Forum where
the (Rs.in which the dispute is
Statute lakhs) amount pending
relates
Employees 5.61 1998-2001 Employees Provident
Provident Fund
Fund Appellate
Act,1952 Tribunal,
New Delhi.
x) The accumulated losses of the Company at the end of the Financial
Year are more than Fifty percent of its net worth. The Company has not
incurred cash losses during the financial year and in the immediately
preceding Financial Year.
xi) The company has not defaulted in repayment of dues to Financical
Institutions, Banks and Debenture Holders..
xii) The Company has not granted any loans or advances on the basis of
security by the way of pledge of shares, debentures or other
securities.
xiii) In our opinion, the Company is not a chit fund, nidhi or mutual
benefit fund / society. Therefore, the provisions of Clause 4 (xiii) of
the order are not applicable.
xiv) In our opinion, and according to the information and explanations
given to us, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the order are not applicable to the
Company.
xv) The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
xvi) The provisions of Clause (xvi) is not applicable to the Company
during the year under consideration since there are no term loans
outstanding as at the year end.
xvii) The funds raised on short term basis have not been used for long
term investment and whereas part of long term funds were used for
working capital requirement of the company.
xviii) The Company has not made, during the year, any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures and hence creation of
securities or charge for debentures does not arise.
xx) During the year, the company has not raised any money by way of
public issue. Hence other matters specified in the Clause are not
applicable to the Company.
xxi) As per the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
for J B REDDY & CO.,
Chartered Accountants
Firm Regn. No. 003256S
Place : Hyderabad A V REDDY
Date : 28th May, 2013 Partner
M.No. 23983
Mar 31, 2012
We have audited the accompanying financial statements of MEDINOVA
DIAGNOSTIC SERVICES LIMITED (Ãthe CompanyÃ), which comprise the
Balance Sheet as at 31st March, 2012, the Profit and Loss Statement and
the Cash Flow Statement for the year then ended and a summary of the
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 principles generally accepted in India, including
Accounting Standards referred to in sub- section (3C) of section 211 of
the Companies Act, 1956 (Ãthe ActÃ).. This responsibility includes
the design, implementation and maintenance of internal controls
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 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 the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal controls 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 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 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, 2012;
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 Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order, 2003(Ãthe
OrderÃ) issued by the Central Government 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 sub-section (3) of section 227 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 purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Statement, 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 Row Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of .the Act.
e) On the basis of the written representations received from the
directors as on 31st March, 2012 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of clause (g) of sub-
section (1) of section 274 of the Act.
for JB REDDY & CO.,
Chartered Accountants
Firm Regn. No. 003256S
Place : Hyderabad A V REDDY
Date : 14th August, 2012 Partner
M.No. 23983
Annexure referred to in paragraph 1 under the heading ÃReport on
other legal and regulatory requirementsà of our report of even date
i) a. The Company has maintained proper records
showing full particulars, including quantitative details and situation
of fixed assets.
b. All fixed 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.
c. There was no substantial disposal of Fixed Assets during the Year.
ii) a. The Management has conducted physical
verification of inventory at reasonable intervals during the year.
b. 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. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a. The Company had taken Loans from three parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year and the year end
balance was Rs. 16,06,56,290/-. The said loans/ advances are interest
free and other terms and conditions on which the said loans/ advances
were obtained are not prima facie prejudicial to the interest of the
Company. As per the information and explanations given to us, there are
no specific conditions as to repayment of these loans.
b. The Company had granted inter-corporate loans, unsecured loans
(including the balances in current account under loans and advances) to
a Company listed in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved in these transactions
during the year was Rs.12,73,06,918/- and the year-end balance of the
said Loans & Advances was Rs.12,52,21,007/-. As per the information and
explanations given to us, in view of the settlement arrangement reached
with the said Company, no further interest is to be charged on the dues
w.e.f 1st April, 2004 and the said dues are to be repaid by the said
Company in a phased manner.
iv) In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of it's
business, with regard to purchase of inventory and fixed assets and
with regard to sale of Services. During the course of our audit no
major weaknesses have been noticed in internal controls in these areas.
v) a. 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,
b. 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 have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi) In our opinion and according to the information and explanations
given to us, during the year under audit, the Company has not accepted
any deposits in the nature of public Deposits.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii The Central Government has not prescribed maintenance of cost
records by the Company under section 209( l)(d) of the Companies Act,
1956 for any of it's products.
ix a. The provisions of Sales Tax, Excise Duty, Cess and others are not
applicable to the company. However, the Company is not regular in
depositing the Provident Fund and Employees' State Insurance
Contributions & Income tax Dues.
b. According to the information and explanations given to us excepting
an amount of Rs.25,06,574/- representing Provident Fund and ESI
Contributions & Income Tax dues, there were no other undisputed
statutory dues outstanding, at the year end for a period of more than
six months from the date they became payable.
c. According to the records of the Company and on the basis of the
information and explanations given to us, there are no dues of
Sales-tax, Income- tax, Custom Duty, Wealth tax, Excise Duty, Service
Tax & Cess which have not been deposited on account of any dispute,
excepting the interest on Provident Fund as per the details given
hereunder.
Name of Amount Period to Forum where
the (Rs.in which the dispute is
Statute lakhs) amount pending
relates
Employees 5.61 1998-2001 Employees
Provident Provident
Fund Fund Appellate
Act,1952 Tribunal,
New Delhi.
x) The accumulated losses of the Company at the end of the Financial
Year are more than Fifty percent of its net worth. The Company has not
incurred cash losses during the financial year and in the immediately
preceding Financial Year.
xi) The company has not defaulted in repayment of dues to Financical
Institutions, Banks and Debenture Holders..
xii) The Company has not granted any loans or advances on the basis of
security by the way of pledge of shares, debentures or other
securities.
xiii) In our opinion, the Company is not a chit fund, nidhior mutual
benefit fund / society. Therefore, the provisions of Clause 4 (xiii) of
the order are not applicable.
xiv) In our opinion, and according to the information and explanations
given to us, the company is not dealing Or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the order are not applicable to the
Company.
xv) The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
xvi) The provisions of Clause (xvi) is not applicable to the Company
during the year under consideration since there are no term loans
outstanding as at the year end.
xvii) The funds raised on short term basis have not been used for long
term investment and whereas part of long term funds were used for
working capital requirement of the company.
xviii) The Company has not made, during the year, any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures and hence creation of
securities or charge for debentures does not arise.
xx) During the year, the company has not raised any money by way of
public issue. Hence other matters specified in the Clause are not
applicable to the Company.
xxi) As per the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
for JB REDDY & CO.,
Chartered Accountants
Firm Regn. No. 003256S
Place : Hyderabad A V REDDY
Date : 14th August, 2012 Partner
M.No. 23983
Mar 31, 2011
1. We have audited the attached Balance Sheet of MEDINOVA DIAGNOSTIC
SERVICES LIMITED, as at March 31, 2011 and also the Profit and Loss
account and the 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.
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 Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we give 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 purpose 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 of the Company;
(iii) The Balance Sheet, Profit and Loss account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the directors
as on March 31, 2011 and taken on record by the Board of Directors, in
our opinion, none of the directors is disqualified from being appointed
as director under 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 other notes
on accounts, 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 31st March, 2011;
b) In the case of Profit and Loss Account, of the Loss for the year
ended on that date; and
c) In the case of Cash Flow Statement, of the Cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT
(This is the Annexure referred to in our Report of even date)
i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. All fixed 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 itÃs Assets. No material
discrepancies were noticed on such verification.
c. There was no substantial disposal of Fixed Assets during the Year.
ii) a. The Management has conducted physical verification of inventory
at reasonable intervals during the year.
b. 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. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a. The Company had taken Loans from two parties covered in the
Register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the year end balance was
Rs.12,05,48,664/-. The said loans/ advances are interest free and other
terms and conditions on which the said loans/ advances were obtained
are not prima facie prejudicial to the interest of the Company. As per
the information and explanations given to us, there are no specific
conditions as to repayment of these loans.
b. The Company had granted inter-corporate loans, unsecured loans
(including the balances in current account under loans and advances) to
a Company listed in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved in these transactions
during the year was Rs.12,99,35,516/- and the year-end balance of the
said Loans & Advances was Rs.12,73,06,918/-. As per the information and
explanations given to us, in view of the settlement arrangement reached
with the said Company, no further interest is to be charged on the dues
w.e.f 1st April, 2004 and the said dues are to be repaid by the said
Company in a phased manner.
iv) In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of it's
business, with regard to purchase of inventory and fixed assets and
with regard to sale of Services. During the course of our audit no
major weaknesses have been noticed in Internal controls in these areas.
v) a. 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.
b. 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 have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi) In our opinion and according to the information and explanations
given to us, during the year under audit, the Company has not accepted
any deposits in the nature of public deposits.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records by the Company under section 209(1)(d) of the Companies Act,
1956 for any of it's products.
ix a. The provisions of Sales Tax, Excise Duty, Cess and others are not
applicable to the company. However, the Company is not regular in
depositing the Provident Fund & Employeesà State Insurance
Contributions and Income tax Dues.
b. According to the information and explanations given to us excepting
an amount of Rs.16,73,255/- representing Provident Fund and ESI
Contributions & Income Tax dues, there were no other undisputed
statutory dues outstanding, at the year end for a period of more than
six months from the date they became payable.
c. According to the records of the Company and on the basis of the
information and explanations given to us, there are no dues of
Sales-tax, Income- tax, Custom Duty, Wealth tax, Excise Duty, Service
Tax & Cess which have not been deposited on account of any dispute,
excepting the interest on Provident Fund as per the details given
hereunder.
Name of Amount Period to Forum where
the (Rs.in which the dispute is
Statute lakhs) amount pending
relates
Employees 5.61 1998-2001 Employees
Provident Provident Fund
Fund Appellate
Act,1952 Tribunal,
New Delhi.
x) The accumulated losses of the Company at the end of the Financial
Year are more than fifty percent of its net worth. The Company has not
incurred cash losses during the financial year. However, the company
has incurred cash losses in the immediately preceding Financial Year.
xi) The company has not defaulted in repayment of dues to the Financial
Institutions, Banks and Debenture Holders.
xii) The Company has not granted any loans or advances on the basis of
security by the way of pledge of shares, debentures or other
securities.
xiii) In our opinion, the Company is not a chit fund, nidhi / mutual
benefit fund / society. Therefore, the provisions of Clause 4 (xiii) of
the order are not applicable.
xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the order are not applicable to the
Company.
xv) The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
xvi) The provisions of Clause (xvi) is not applicable to the Company
during the year under consideration since there are no term loans
outstanding as at the year end.
xvii)The funds raised on short term basis have not been used for long
term investment and whereas part of long term funds were used for
working capital requirement of the company.
xviii) The Company has not made, during the year, any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures and hence creation of
securities or charge for debentures does not arise.
xx) During the year, the company has not raised any money by way of
public issue. Hence other matters specified in the Clause are not
applicable to the Company.
xxi) As per the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
for J B REDDY & CO.,
Chartered Accountants
Firm Regn. No. 003256S
A V REDDY
Partner
M.No. 23983
Place : Hyderabad
Date : 12th August, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of MEDINOVA DIAGNOSTIC
SERVICES LIMITED, as at March 31, 2010 and also the Profit and Loss
account and the Cash Flow Statement for the year ended on that date
annexed thereto. 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 Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we give 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 purpose 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 of the Company;
(iii) The Balance Sheet, Profit and Loss account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the directors
as on March 31, 2010 and taken on record by the Board of Directors, in
our opinion, none of the directors is disqualified from being appointed
as director under 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 other notes
on accounts, 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 31st March, 2010;
b) In the case of Profit and Loss Account, of the Loss for the year
ended on that date; and
c) In the case of Cash Flow Statement, of the Cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
(This is the Annexure referred to in our Report of even date)
i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. All fixed 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 itÃs Assets. No material
discrepancies were noticed on such verification.
c. There was no substantial disposal of Fixed Assets during the Year.
ii) a. The Management has conducted physical verification of inventory
at reasonable intervals during the year.
b. 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. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) a. The Company had taken Loans from two parties covered in the
Register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the year end balance was
Rs.11,72,77,437/-. The said loans/ advances are interest free and other
terms and conditions on which the said loans/ advances were obtained
are not prima facie prejudicial to the interest of the Company. As per
the information and explanations given to us, there are no specific
conditions as to repayment of these loans.
b. The Company had granted inter-corporate loans, unsecured loans
(including the balances in current account under loans and advances) to
a Company listed in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved in these transactions
during the year was Rs.13,30,32,148/- and the year-end balance of the
said Loans & Advances was Rs.12,99,35,516/-. As per the information and
explanations given to us, in view of the settlement arrangement reached
with the said Company, no further interest is to be charged on the dues
w.e.f 1st April, 2004 and the said dues are to be repaid by the said
Company in a phased manner.
iv) In our opinion, 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 and fixed assets and
with regard to sale of Services. During the course of our audit no
major weaknesses have been noticed in Internal controls in these areas.
v) a. 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.
b. 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 have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi) In our opinion and according to the information and explanations
given to us, during the year under audit, the Company has not accepted
any deposits in the nature of public deposits.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records by the Company under section 209(1)(d) of the Companies Act,
1956 for any of its products.
ix a. The provisions of Sales Tax, Excise Duty, Cess and others are not
applicable to the company. However, the Company is not regular in
depositing the Provident Fund & Employeesà State Insurance
Contributions and Income tax Dues.
b. According to the information and explanations given to us excepting
an amount of Rs.8,37,658/- representing Provident Fund and Income Tax
dues, there were no other undisputed statutory dues outstanding, at the
year end for a period of more than six months from the date they became
payable.
c. According to the records of the Company and on the basis of the
information and explanations given to us, there are no dues of
Sales-tax, Income- tax, Custom Duty, Wealth tax, Excise Duty, Service
Tax & Cess which have not been deposited on account of any dispute,
excepting the interest on Provident Fund as per the details given
hereunder.
Name of Amount Period to Forum where
the (Rs.in which the dispute is
Statute lakhs) amount pending
relates
Employees 7.47 1998-2003 Employees
Provident Provident Fund
Fund Appellate
Act,1952 Tribunal,
New Delhi.
x) The accumulated losses of the Company at the end of the financial
year are more than Fifty percent of its net worth. The Company has
incurred cash losses during the financial year. However, the company
has not incurred cash losses in the immediately preceding financial
year.
xi) The company has defaulted in repayment of dues to a scheduled bank
amounting to Rs.24,16,000/- representing the balance amount of the
liability taken over by the company from M/s. Standard Medical &
Pharmaceuticals Limited, under a scheme of spin- off.
xii) The Company has not granted any loans or advances on the basis of
security by the way of pledge of shares, debentures or other
securities.
xiii) In our opinion, the Company is not a chit fund, nidhi / mutual
benefit fund / society. Therefore, the provisions of Clause 4 (xiii) of
the order are not applicable.
xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the order are not applicable to the
Company.
xv) The Company has not given any guarantee for loans taken by others
from Banks or Financial Institutions.
xvi) Excepting the loan liability taken over from Standard Medical &
Pharmaceuticals Limited under a scheme of spin off, the Company has not
obtained any other Term Loan. Hence other matters specified in the
Clause are not applicable to the Company.
xvii)The funds raised on short term basis have not been used for long
term investment and whereas part of long term funds were used for
working capital requirement of the company.
xviii) The Company has not made, during the year, any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures and hence creation of
securities or charge for debentures does not arise.
xx) During the year, the company has not raised any money by way of
public issue. Hence other matters specified in the Clause are not
applicable to the Company.
xxi) As per the checks carried out by us, no fraud on or by the company
has been noticed or reported during the year under report.
for J B REDDY & CO.,
Chartered Accountants
Firm Regn. No. 003256S
Place : Hyderabad A V REDDY
Date : 3rd August, 2010 Partner
M.No. 23983