Mar 31, 2015
We have audited the accompanying financial statements of Gujarat Terce
Laboratories Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
section 133 of the Act read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls that were operating for
ensuring accuracy and completeness of the accounting records relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company's preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. in our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in section 133 of the Act;
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f. with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us :
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements;Â Refer Note -1.22 to
the financial statements;
ii. the Company has made provision as required under the applicable
law or accounting standards on longÂterm contracts including derivative
contracts;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of Gujarat Terce
Laboratories Limited for the year ended on 31/03/2015. We report that:
(i) (a) whether the company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets; Yes
(b) whether these fixed assets have been physically verified by the
management at reasonable intervals; whether any material discrepancies
were noticed on such verification and if so, whether the same have been
properly dealt with in the books of account; No material discrepancies
were noticed on such verification.
(ii) (a) whether physical verification of inventory has been conducted
at reasonable intervals by the management; Yes
(b) Are the procedures of physical verification of inventory followed
by the management reasonable and adequate in relation to the size of
the company and the nature of its business? If not, the inadequacies in
such procedures should be reported; Yes
(c) whether the company is maintaining proper records of inventory and
whether any material discrepancies were noticed on physical
verification and if so, whether the same have been properly dealt with
in the books of account; Yes, Discrepancies if any noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of account.
(iii) Whether the company has granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. If so, No
(a) whether receipt of the principal amount and interest are also
regular; and NA
(b) if overdue amount is more than rupees one lakh, whether reasonable
steps have been taken by the company for recovery of the principal and
interest; NA
(iv) Is there an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services?
Whether there is a continuing failure to correct major weaknesses in
internal control system. During the course of our audit, no major
weakness in internal control has come to our notice.
(v) in case the company has accepted deposits, whether the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under, where applicable, have been complied with? If
not, the nature of contraventions should be stated; If an order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, whether the
same has been complied with or not? Company has not accepted deposits.
Not Applicable Not Applicable
(vi) where maintenance of cost records has been specified by the
Central Government under sub- section (1) of section 148 of the
Companies Act, whether such accounts and records have been made and
maintained; Not Applicable
(vii) (a) is the company regular in depositing undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
sales -tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues with the appropriate
authorities and if not, the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable, shall
be indicated by the auditor. Yes
(b) in case dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
have not been deposited on account of any dispute, then the amounts
involved and the forum where dispute is pending shall be mentioned. (A
mere representation to the concerned Department shall not constitute a
dispute). Refer Annexure -A
(c) whether the amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time. Not Applicable
(viii) whether in case of a company which has been registered for a
period not less than five years, its accumulated losses at the end of
the financial year are not less than fifty per cent of its net worth
and whether it has incurred cash losses in such financial year and in
the immediately preceding financial year; Not Applicable
(ix) Whether the company has defaulted in repayment of dues to a
financial institution or bank or debenture holders? If yes, the period
and amount of default to be reported; No
(x) whether the company has given any guarantee for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company; No
(xi) whether term loans were applied for the purpose for which the
loans were obtained; Yes
(xii) whether any fraud on or by the company has been noticed or
reported during the year; If yes, the nature and the amount involved is
to be indicated. No
Annexure  A
Name of Statute Nature of dues Disputed Tax
Amount
Gujarat Sales Tax Regular Assesment Rs. 466886/-
Gujarat Sales Tax Regular Assesment Rs. 1068607/-
Income Tax Regular Assessment Rs 429282/-
Income Tax Regular Assesment Rs 4192640/-
Income Tax Regular Assessment 19409860/-
Name of Statute Period to Forum where
the amount dispute is
Relates pending
Gujrat Sales Tax F.Y.2003-04 Dep. Comm of Sales
Tax (Appeals)
Gujrat Sales Tax F.Y.2004-05 Dep.Comm of Sales
Tax (Appeals)
Income Tax F.Y. 2004-05 Commissioner of
Income Tax.(Appeal)
Income Tax F.Y. 2010-11 Commissioner of
Income Tax.(Appeal)
Income Tax F.Y 2011-12 Commissioner of
Income Tax. ( Appeal)
For, U S S & ASSOCIATES
Chartered Accountants
(Ujal Mehta)
Partner
Place : Ahmedabad. M. No. 112337
Date : 29/05/2015 F.R.N. 122634W
Mar 31, 2014
We have audited the accompanying financial statements of Gujarat Terce
Laboratories Limited ("the Company"), which comprise the Balance 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 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 AccountingStandards 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. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
Balances of trade & other payables are subject to confirmation,
reconciliation and consequential adjustments thereof. The company is
not having any system of obtaining balance confirmation in respect of
trade and other payables. In the absence of sufficient and appropriate
audit evidence, the impact on profit or loss for the year and on the
carrying value of these balances is not ascertainable.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of 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 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 dealt with in this Report comply with
the Accounting Standards notified under The Companies Act, 1956 read
with the General circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of The
Companies Act, 2013 .;
e. On the basis of the written representations received 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 AUDITOR''S REPORT (Referred to inparagraph 1
under the heading of "Report on other Legal and Regulatory
Requirements" of our report of even date.)
(i) In respect of its fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, Majority of the fixed assets have been
physically verified by the management during the year and 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. In our opinion the Company has not disposed off any substantial
part of its fixed assets during the year, and therefore, do not affect
the going concern status.
(ii) In respect of its Inventories:
a. The inventories have been physically verified during the year by
the management, except for inventories lying with outside parties,
which have, however, been confirmed by them. In our opinion, 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 nature of its business.
c. The Company has maintained proper records of inventories.
Discrepancies, which were noticed on physical verification of inventory
as compared to book records, have been properly dealt with in the books
of account.
(iii) a. During the year the Company has not given any loans, secured
or unsecured to the companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Hence, clauses (iii)(b),(c) and (d) are not applicable to the Company.
b. The Company has taken interest free unsecured loans from the one
Director which is not prejudicial to the interest of the company.
Maximum balance outstanding during the year is Rs. 3.07 lacs while the
year end balance is Rs. 3.07 lacs. (iv) In our opinion and according
to the information and explanations given to us, there is an adequate
internal control procedures commensurate with the size of the company
and the nature of its business with regard to purchases of inventory,
fixed assets and sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness in
internal control system. (v) In respect of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 :
a. Based on the audit procedures applied by us, and according to the
information and explanations provided by the management, 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 and on the basis of our examination of the books of
accounts, the company has not entered into any transactions exceeding
the value of Five Lacs Rupees in respect of any party during the year
that need to be entered in the Register in pursuance of Section 301 of
the Companies Act, 1956.
(vi) In our opinion and according to the information and explanations
given to us the Company has not accepted any deposits from the public
and thus, paragraph 4(vi) of the said order is not applicable
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the Cost records maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that the prescribed accounts and
records have been made and maintained. We have, however, not made a
detailed examination of the Cost records with a view to determine
whether they are accurate or complete.
(ix) In respect of Statutory dues:
a. According to the records of the Company, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, Investor Education and Protection Fund,
Employees'' state insurance, Income tax, Sales tax, Wealth tax, Custom
duty, Excise duty, cess and other material statutory dues applicable to
it, except in few cases there has been delay in depositing such dues.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid Statutory dues were
in arrears, as at 31st March, 2014 for a period of more than six months
from the date they became payable.
b. The disputed Statutory dues aggregating to Rs 57,28,133 that have
not been deposited on account of disputed statutory matters pending
before appropriate authorities are as under:
Name of Statute Nature of dues Amount of
relates disallowance
(Rs. in lacs)
Gujarat Sales Tax Reg Assesment Rs. 466886/-
Gujarat Sales Tax Reg Assesment Rs. 1068607/-
Income Tax Reg Assesment Rs. 4192640/-
Name of Statute Period to Forum where
the amount dispute is
Relates pending
Gujarat Sales Tax A.Y.2003-04 Dep. Comm of Sales
Tax (Appeals)
Gujarat Sales Tax A.Y.2004-05 Dep. Comm Of Sales
Tax (Appeals)
Income Tax A.Y. 2011-12 Commissioner of
Income Tax.(Appeal)
(x) The Company does not have any accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to the banks.
(xii) In our opinion and according to explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and any other securities.
(xiii) The company is not a chit fund or a nidhi / mutual benefit fund
/ society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order are not applicable to the company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor''s Report) Order are not applicable to
the company.
(xv) In our opinion the Company has not given guarantees for loans
taken by others from banks or financial institutions, the terms and
conditions whereof are prejudicial to the interest of the company.
(xvi) According to the information and explanation given to us, the
term loans were applied for the purpose for which it was obtained.
(xvii) Based on 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 by the Company. No long-term funds have been used
to finance short-term assets except permanent working capital.
(xviii)The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained in the
under Section 301 of the Companies Act , 1956 .
(xix) During the year covered by our audit report, The company has not
issued any debentures. Accordingly, the provisions of clause (xix) of
paragraph 4 of the order are not applicable to the company.
(xx) The Company has not raised any money by way of public issue during
the year and therefore paragraph 4(xx) of the Order is not applicable.
(xxi) Based on management representation and our discussion with the
management, during the year one of the managing director jointly with
director disposed off metal division undertaking by transfer of land,
other assets as well as other inventory pertaining to metal division in
the month of May 2013, without any authority from Board as well as
shareholders and committed a breach of trust amounting to fraud on the
company, its board and share holders. The amount of alleged fraud
according to management is Rs. 7,10,31,008/- (based on value determined
by the management and in various records filed by the company against
the fraud to various authorities). As informed to us these directors
are also alleged to have filed their resignations on MCA website on
September 23, 2013 after transfer of assets. According to information
given to us the company then filed petition with Company Law Board,
Mumbai against these directors of the company for alleged violation of
section 397and 398 read with sections 399, 402, 192(A), 209, 293(1)(A),
297,299 and 630 of The Companies Act, 1956. The Honorable Company Law
Board, Mumbai has passed an order on 3/4/2014 on the basis of consent
terms and as per the consent terms the records, documents, registers,
books and other valuable documents and assets pertaining to Metal
division were handed over to the company. Except above no material
fraud on or by the company is reported to us by the management.
For, P A R Y & Co.
Chartered Accountants
FRN - 007288C
(Sushil Goenka)
Date:30/05/2013 Partner
Place: Ahmedabad M.No. 115465
Mar 31, 2012
We have audited the attached Balance Sheet of Gujarat Terce
Laboratories Limited as at 31st March 2012 and also the Statement of
Profit & Loss 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 statements
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 enclose in the Annexure A Statement on the
matters specified in paragraph 4 & 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 our knowledge and belief, were necessary for the purposes of our
audit.
ii) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of such
books.
iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the Books of
Account.
iv) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement read in conjunction with the notes on accounts,
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956.
v) On the basis of the written representations received from the
Directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
3Tst March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon, give the information as 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 :
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012
ii) in the case of the Statement of Profit & 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 for the
year ended on that date.
Annexure to Auditor's Report of even date on the accounts for the year
ended 31st March, 2012 of Gujarat Terce Laboratories Limited
1. a. The company has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets.
b. As explained to us, fixed assets, according to the practice of the
Company, are physically verified by the management at reasonable
intervals, in a phased verification program which, in our opinion, is
reasonable looking to the size of the company and the nature of its
assets. No material discrepancies were noticed on such verification.
c. The Company has not disposed off any substantial part of its fixed
assets during the year so as to affect its going concern status.
2. a. As explained to us, inventories have been physically verified
during the year by the management, except for inventories
lying with outside parties, which have, however, been confirmed by
them. In our opinion, the frequency of verification is reasonable.
b. The procedures explained to us, which were followed by the
management for physical verification of inventories, are in our
opinion, reasonable and adequate in relation to the size of the company
and the nature of its business.
c. On the basis of our examination of the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of inventory. Discrepancies, which were noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of account.
3. a. The Company has not given any loans, secured or unsecured to
the companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Hence, clauses (iii)(b),(c) and (d) of the Order are not applicable.
b. The Company has taken interest free unsecured loans from the one
Director which is not prejudicial to the interest of the company.
Maximum balance outstanding during the year is Rs. 993.20 lacs while
the year end balance is Rs. 816.03 lacs.
4. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, no major weakness in internal
control has come to our notice.
5. a.' On the basis of the audit procedures performed by us, and
according to the information, explanations and representations
given to us, we are of the opinion that the transactions in which
directors were interested and which were required to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b. According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the company has not
entered into any transactions exceeding the value of Five Lacs Rupees
in respect of any party during the year that need to be entered in the
Register in pursuance of Section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public and thus,
paragraph 4(vi) of the said order is not applicable
7. In our opinion, the company has an adequate internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(l)(d) of the Companies
Act, 1956 in respect of the Company's products to which the said rules
are made applicable, and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate.
9. a. The company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including
provident fund, employees' state insurance, income tax, sales tax,
custom duty, excise duty, cess and other material statutory dues
applicable to it, except in few cases there has been delay in
depositing such dues. According to the information and explanations
given to us, no undisputed amounts payable in respect of income tax,
wealth tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2012 for a period of more than six months
from the date they became payable.
b. According to the information and explanation given to us, the dues
outstanding of sales tax, income tax, customs duty, wealth tax, excise
duty and cess on any account of any dispute, are as follows:
10. The Company has neither accumulated losses at the end of the
financial year nor has incurred cash losses in the financial year under
report and in the immediately preceding financial year.
11. On the basis of the records examined by us and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and any other securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order are not applicable to the
company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor's Report) Order are not applicable to
the company.
15. According to information and explanations given to us and the
representations m&de by the management, the Company has not given
guarantees for loans taken by others from banks or financial
institutions.
16. In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18. The Company has not made any preferential allotment of shares to
the parties and companies covered in the register maintained in the
Companies Act u/s 301 during the year.
19. The company has not issued any secured debentures during the year.
20. The Company has not raised any money by way of public issue during
the year and therefore paragraph 4(xx) of the Order is not applicable.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the company has
been noticed or reported during the course of our audit during the
year.
22. As per Accounting Standard (AS) 17 on "Segment Reporting", segment
information has been provided in the Notes on accounts.
For, P A R Y & Co.
Chartered Accountants
FRN - 007288C
(Sushil Goenka)
Date : 30.07.2012 Partner
Place : Ahmedabad M.No. 115465
Mar 31, 2010
We have audited the attached Balance Sheet of Gujarat Terce
Laboratories Limited as at 31st March 2010 and also the Profit & 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 statements
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 enclose in the Annexure a Statement on the
matters specified in paragraph 4 & 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 our knowledge and belief, were necessary for the purposes of our
audit.
ii) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of such
books.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the Books of Account.
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement read in conjunction with the notes on accounts, comply
with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 except for Note No. 1 c & 1 j of
Schedule R.
v) On the basis of the written representations received from the
Directors, as on 31st March, 2010, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 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 subject to :
a) Note No. 1 c of Schedule "R" regarding accounting for retirement
benefits on cash basis.
b) Note No.l j of Schedule "R" regarding exchange rate fluctuation of
foreign currency transactions.
c) The Company has not considered provision for bad & doubtful debts to
the tune of Rs. 15,01,563, which are outstanding for more than 10 years
from export sales of the company.
d) Note No. 12 of Schedule "R" regarding Not disclosing the total
outstanding dues of Small & Micro Enterprises. read together with the
notes thereon, give the information as 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 :
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010
ii) in the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date and
iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to Auditors Report of even date on the accounts for the year
ended 31st March, 2010 of Gujarat Terce Laboratories Limited
1. a. The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, fixed assets, according to the practice of the
Company, are physically verified by the management at reasonable
intervals, in a phased verification programme which, in our opinion, is
reasonable looking to the size of the company and the nature of its
assets. No material discrepancies were noticed on such verification.
c. The Company has not disposed off any substantial part of its fixed
assets during the year so as to affect its going concern status.
2. a. As explained to us, inventories have been physically verified
during the year by the management, except for inventories lying with
outside parties, which have, however, been confirmed by them. In our
opinion, the frequency of verification is reasonable.
b. The procedures explained to us, which were followed by the
management for physical verification of inventories, are in our
opinion, reasonable and adequate in relation to the size of the company
and the nature of its business.
c. On the basis of our examination of the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of inventory. Discrepancies, which were noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of account.
3. a. The Company has not given any loans, secured or unsecured to
the companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Hence,
clauses (iii)(b),(c) and (d) of the Order are not applicable.
b. The Company has taken interest free unsecured loans from the two
Directors which is not prejudicial to the interest of the company.
Maximum balance outstanding during the year is Rs. 11.27 lacs while the
year end balance is Rs. 4.83 lacs.
4. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods. During the course of our audit, no major weakness in internal
control, has come to our notice.
5. a. On the basis of the audit procedures performed by us, and
according to the information, explanations and representations given to
us, we are of the opinion that the transactions in which directors were
interested and which were required to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b. According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the company has not
entered- into any transactions exceeding the value of Five Lacs Rupees
in respect of any party during the year that need to be entered in the
Register in pursuance of Section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public and thus,
paragraph 4(vi) of the said order is not applicable
7. In our opinion, the company has an adequate internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(l)(d) of the Companies
Act, 1956 in respect of the Companys products to which the said rules
are made applicable, and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate.
9. a. The company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees state insurance, income tax, sales tax, custom duty,
excise duty, cess and other material statutory dues applicable to it,
except in few cases there has been delay in depositing such dues.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March, 2010 for a period of more than six months from the date they
became payable.
b. According to the information and explanation given to us, the dues
outstanding of sales tax, income tax, customs duty, wealth tax, excise
duty and cess on any account of any dispute, are as follows:
Name of Statute Nature of dues Amount of Period to Forum where
disallowance the amount dispute is
(Rs. in lacs) Relates pending
Gujarat Sales Tax Reg Assesment Rs. 466886 A.Y.2003-
04 Dep.CommOf
Sales
Tax (App
eals)
Gujarat Sales Tax Reg Assesment Rs. 1068607 A.Y.2004-
05 Dep.CommOf
Sales
Tax (App
eals)
10. The Company has neither accumulated losses at the end of the
financial year nor has incurred cash losses in the financial year under
report and in the immediately preceding financial year.
11. On the basis of the records examined by us and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and any other securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order are not applicable to the
company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors Report) Order are not applicable to
the company.
15. According to information and explanations given to us and the
representations made by the management, the Company has not given
guarantees for loans taken by others from banks or financial
institutions.
16. In our opinion, the term loans raised during the year have been
applied for the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18. 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 during the year. On the basis of the
records and documents examined by us, the company has not issued any
secured debentures during the year.
19. The Company has not raised any money by way of public issue during
the year and therefore paragraph 4(xx) of the Order is not applicable.
20. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the company has
been noticed or reported during the course of our audit during the
year.
For, PARY & Co.
Chartered Accountants
(Sushil Goenka)
Date : 29.05.2010 Partner
Place : Ahmedabad M.No. 115465