Mar 31, 2018
Report on the Standalone Financial Statements:
We have audited the accompanying Standalone financial statements of M/s. JEEVAN SCIENTIFIC TECHNOLOGY LIMITED, which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the statement of changes in equity and the statement of Cash Flows for the year ended 31st March, 2018 and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including othercomprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS 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 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 Ind AS 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, Ind AS 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 including the Ind AS, of the state of affairs of the Company as at March 31, 2018,its financial performance including other comprehensive income, its cash flows and the statement of changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in termsof sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters Specified in paragraphs 3and 4 of the said Order.
2 As required by section 143(3) of the Act, we further 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 appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income,Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are inagreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the applicable accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us
i. The Company doesnât have pending litigations which will have an impact on its financial position in the Standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There have been no occasions in case of the company during the year under report to transfer any sums to the Investor Education and Protection Fund.
âAnnexure Aâ to the Independent Auditorsâ Report
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the Standalone financial statements of the Company for the year ended March 31, 2018:
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
2) (a) The management has conducted the physical verification of inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company and hence not commented upon.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities though there has been slight delay in few cases.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
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.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that 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) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) All transactions with the related parties are in compliance with sections 177 and 188 of the Companies Act, 2013 in so far as our examination of the proceedings of the meetings of the Audit Committee and Board of Directors are concerned. The details of related party transactions have been disclosed in the Standalone Ind AS Financial Statements as required by the applicable Accounting Standard.
14) The Company has made preferential allotment of shares during the year under review. The requirement specified under section 42 of the companies act 2013 has been complied.
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 him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
âAnnexure Bâ to the Independent Auditorâs Report of even date on the Standalone Financial Statements of JEEVAN SCIENTIFIC TECHNOLOGY LIMITED
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 financial controls over financial reporting of JEEVAN SCIENTIFIC TECHNOLOGY LIMITED(âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of Indiaâ. 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 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 the Companies Act, 2013.
Auditorsâ 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 GuidanceNote 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, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 our 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 Standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the Standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For PAVULURI & Co.
Chartered Accountants
Firm Reg. No:012194S
Sd/-
(CA KANTHI SREE KOLLI)
Place : Hyderabad PARTNER
Date : 26.05.2018 M.No : 224434
Mar 31, 2016
To the Members of
Jeevan Scientific Technology Limited
Report on Standalone Financial Statements
We have audited the accompanying standalone financial statements of Jeevan Scientific Technology Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March,
2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone financial statements 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material 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 auditorâs 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 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 31st March, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the companyâs auditorâs report order, 2016(âthe Orderâ) issued by the
Central Government of India in terms of sub section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in Paragraph 3 and 4 of the order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid 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 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act and
f) The company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal controls over financial reporting criteria established by the company.
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements -the Company does not have any pending litigations which would impact its financial position.
ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts -the Company did 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.
The Annexure referred to inour Independent Auditorâs Report to the members of the company on the financial statements for the year ended 31st March 2016, we report that:
i) In respect of fixed assets :
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b. The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner. In accordance with this programme, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency 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 explanation given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company.
ii) In respect of Inventories :
As explained to us by the management and as observed by us, the inventory of consumables for Research and development has been physically verified during the year and specifically at the year-end by the management. In our opinion, the frequency of physical verification is reasonable having regard to the size and nature of business of the company. The discrepancies noticed on such physical verification between physical stock and the book records have been properly dealt with in the books of account.
iii) In respect of loans granted by the company:
Based on our scrutiny and as per the information and explanations provided to us by the management, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act.
iv) In respect of loans, investments, guarantees and Security:
Based on scrutiny of records and as per the explanation given by the management, the company has not provided any loans, not made any investments and not given any guarantees, security for loans taken by others from banks or financial institutions.
v) In respect of deposits acceptance::
The company has not accepted any deposits from public.
vi) In respect of cost records:
We have been informed by the management that the maintenance of cost records has not been prescribed by the Central Government under section (1) of section 148 of the Companies Act, 2013.
vii) In respect of Statutory Dues:
a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees state insurance, Income tax, Sales tax, Service tax, duty of customs, duty of excise, Value added tax, Cess and other statutory dues have not been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Sales tax, Wealth tax, Employees State Insurance, Investor Education and Protection Fund, Customs duty and Excise duty etc. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income tax, Service tax and other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable;
b. According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Service tax, customs duty, duty of excise, Value added tax, Cess and any other statutory dues, which have not been deposited with the appropriate authorities on account of any dispute.
viii) In respect of dues to financial institutions, banks and debenture holders:
In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution and Banks.
ix) In respect of Initial Public offer or further public offer and term loans:
The company did not raise any money by way of public offer or further public offer (including debt instruments). Term loans availed by the company during the year has been applied for the purpose for which it was obtained.
x) In respect of frauds on or by the company:
According to the information and explanation given to us, and based on our examination in the normal course of audit, no material fraud on or by the Company has been noticed or reported during the year.
xi) In respect of Managerial remuneration:
According to the information and explanation given to us and based on our examination of the records of the Company, the company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 and schedule V of the companies act.
xii) In respect of Nidhi companies:
In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii) In respect of related party transactions:
According to the information and explanation given to us and based on our examination of records of the company, transactions with related parties are in compliance with Section 177 and 188 of companies act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standard.
xiv) In respect of preferential allotment or private placement:
The company has not made any preferential allotment or private placements of shares during the financial year.
xv) In respect of non-cash transactions with directors or other persons:
The company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(xv) of the order is not applicable.
xvi) In respect of registration u/se 45-IA of the Reserve Bank of India Act, 1934;
The company is not required to register under section 45-IA of Reserve Bank of India Act,1934.
For L N P & Co,
Chartered Accountants
Firm Reg. No.008918S
Sd/-
Purna Chandra Sekhar
P Partner
Membership No.214746
Place: Hyderabad
Date: 11-May-2016
Mar 31, 2015
Report on Financial Statements
We have audited the accompanying financial statements of Jeevan
Scientific Technology Limited ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss,
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
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 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.
Auditor's 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 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 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 the 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 31st March, 2015, and its profit/ loss and its cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the company's auditor's report order, 2015("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Companies Act, 2013, we give in the
Annexure a statement on the matters specified in Paragraph 3 and 4 of
the order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid 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 31 st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act and
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 - the Company does not
have any pending litigations which would impact its financial position.
ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts - the Company did
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.
The Annexure referred to in our Independent Auditor's Report to the
members of the company on the financial statements for the year ended
31st March 2015, we report that:
i) In respect of fixed assets :
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
b. The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this programme, fixed assets were verified during the
year and no material discrepancies were noticed on such verification.
In our opinion, the frequency of physical verification is reasonable
having regard to the size of the Company and the nature of its assets;
ii) In respect of Inventories :
a. As explained to us by the management and as observed by us, the
inventory of raw material, finished goods stores and spares etc. has
been physically verified during the year and specifically at the
year-end by the management. In our opinion, the frequency of physical
verification is reasonable having regard to the size and nature of
business of the company.
b. In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable in relation to the size of
the company and the nature of the business.
c. In our opinion and according to the information and explanation
given to us, the company has maintained proper records of its
inventories and the discrepancies noticed on such physical verification
between physical stock and the book records have been properly dealt
with in the books of account
iii) In respect of loans granted by the company:
Based on our scrutiny and as per the information and explanations
provided to us by the management, the Company has not granted any
loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under Section 189of the Act.
iv) In respect of internal control system:
a. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with size of the Company and the nature of its business
with regard to purchases of inventory and fixed assets and with regard
to rendering of services/sale of goods. We have not observed any major
weakness in the internal control system during the course of the audit.
v) In respect of deposits from the public:
The company has not accepted any deposits from the public.
vi) In respect of cost records:
a. We have been informed by the management that the maintenance of cost
records has not been prescribed by the Central Government under section
(1) of section 148 of the Companies Act, 2013.
vii) In respect of Statutory Dues:
a. According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of 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 other material statutory dues have
generally been regularly deposited during the year by the Company with
the appropriate authorities. As explained to us, the Company did not
have any dues on account of Sales tax, Wealth tax, Employees State
Insurance, Investor Education and Protection Fund, Customs duty and
Excise duty. According to the information and explanations given to us,
no undisputed amounts payable in respect of Provident Fund, Income tax,
Service tax and other material statutory dues were in arrears as at 31
March 2015 for a period of more than six months from the date they
became payable;
b. According to the information and explanations given to us, there
are no material dues of Income tax, Service tax and Cess etc which have
not been deposited with the appropriate authorities on account of any
dispute.
c. Based on scrutiny of records and as per the explanation given by
the management, the company is not required to transfer any amounts to
investor education and protection fund in accordance with the relevant
provisions of the Companies act 1956 and rules made there under.
viii) In respect of Accumulated Losses:
The accumulated losses of the company does not exceed fifty percent of
its net worth as at 31st March, 2015. The company has not incurred any
cash losses for the financial year covered by our audit and in the
immediately preceding financial year.
ix) In respect of dues to financial institutions, banks and debenture
holders:
In our opinion and according to the information and explanation given
to us, the Company has not defaulted in repayment of dues to any
financial institution and Banks.
x) In respect to Guarantees given by the company :
As per the information and explanations given to us, the company has
not given any guarantee for loans taken by others from any bank or
financial institutions.
xi) In respect of term loans availed by the company:
According to information and explanation given to us, the company has
not availed any term loans. Accordingly the provisions of clause 3(xi)
of the order is not applicable.
xii) In respect of Frauds on or by the company:
As presented to us by the management and based on our examination in
the normal course of audit, no frauds on or by the Company has been
noticed or reported during the year.
For L N P & Co,
Chartered Accountants
Firm Reg. No.008918S
Sd/-
Purna Chandra Sekhar P Partner
Membership No.214746
Place: Hyderabad
Date: May 29, 2015
Mar 31, 2014
We have audited the attached Balance Sheet of JEEVAN SCIENTIFIC
TECHNOLOGY LIMITED as at 31st March 2014, the Statement of Profit and
Loss and the cash flow statement for the year ended on that date.
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,
and financial performance of the Company in accordance with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for qualified opinion:
The company has provided for the Gratuity liability on an estimated
basis in accordance with the provisions of the Payment of Gratuity Act,
1972. It has not adopted and complied with the requirements of AS-15
"Employee Benefits" in respect of the Gratuity liability, which
constitute a departure from the Accounting Standards referred to in
section 211(3C) of the Act. In view of this, the extent of the variance
between the actuarial liability in accordance with AS-15 and the
liability provided for in the books of the company in this regard could
not be ascertained. Consequently, we are unable to comment about the
impact of the same on the profit for the year, income tax and
shareholder''s funds.
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, the profit for the
yearended on that date; and
c) in the case of Cash flow statement, of the cash flows for the year
ended on that date
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet and Statement of Profit and Loss, dealt with by
this Report are in agreement with the books of account.
d) Except for the matter described under the basis for qualified
opinion paragraph, in our opinion, the Balance Sheet and Statement of
Profit and Loss and Cash flow statement comply with the Accounting
Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of JEEVAN SCIENTIFIC TECHNOLOGY LIMITED.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) In respect of fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this programme, fixed assets were verified during the
year and no material discrepancies were noticed on such verification.
In our opinion, the frequency of physical verification is reasonable
having regard to the size of the Company and the nature of its assets;
c) During the year, there was no sale of substantial part of fixed
assets and hence the going concern assumption of the company is not
affected.
(ii) In respect of inventories:
(a) As explained to us, the inventories were physically verified by the
management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable in relation to the size of
the company and the nature of the business.
(c) In our opinion and according to the information and explanation
given to us, the company has maintained proper records of its
inventories and the discrepancies noticed on such physical verification
between physical stock and the book records have been properly dealt
with in the books of account.
(iii) In respect of loans granted and taken by company:
(a) The Company has not grantedany loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, paragraphs 4 (iii) (a) to 4
(iii) (d) of the Order are not applicable;
(b) The company has taken unsecured loans from three parties covered in
the register maintained u/s 301 of the Act. The opening balance is
Rs.242.88 lakhs and during the year Rs.176.43 has been taken and
Rs.205.35 has been repaid and the closing balance of loans taken from
such parties was Rs. 213.96 Lakhs.
(iv) In respect of internal control systems:
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
size of the Company and the nature of its business with regard to
purchases of fixed assets and with regard to rendering of services/
sale of goods. We have not observed any major weakness in the internal
control system during the course of the audit.
(v) In respect of transactions with related parties as per Register of
Contract u/s 301:
a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section;
b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (v) (a) above with any party during the
year have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In respect of deposits from the public:
The Company has not accepted any deposits from the public. Accordingly,
paragraph 4(vi) of the Order is not applicable.
(vii) In respect of internal audit system:
In our opinion, the company has an internal audit system commensurate
with the size and nature of the business.
(viii) In respect of cost records:
The Central Government has not prescribed maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956 for the products /
items dealt with by the company.
(ix) In respect of statutory dues:
a) According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income tax, Service tax and
other material statutory dues have generally been regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of Sales
tax, Wealth tax, Employees State Insurance, Investor Education and
Protection Fund, Customs duty and Excise duty. According to the
information and explanations given to us, no undisputed amounts payable
in respect of Provident Fund, Income tax, Service tax and other
material statutory dues were in arrears as at 31 March 2014 for a
period of more than six months from the date they became payable;
b) According to the information and explanations given to us, there are
no material dues of Income tax, Service tax and Cess which have not
been deposited with the appropriate authorities on account of any
dispute.
(x) In respect of cash losses:
The accumulated losses of the Company have exceed fifty percent of its
net worth as at 31st March 2014. The company has posted a profit of
Rs.22.73 lakhs in the financial year covered by our Auditand has
incurred cash losses in the immediately preceding financial year.
(xi) In respect of dues to financial institutions, banks and debenture
holders:
In our opinion and according to the information and explanation given
to us, the Company has not defaulted in repayment of dues to any
financial institution and Banks.
(xii) In respect of secured loans and advances granted:
The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, paragraph 4 (xii) of the Order is not applicable.
(xiii) In respect of chit fund, nidhi or mutual benefit company: In our
opinion and according to the information and explanations given to us,
the Company is not a chit fund / nidhi / mutual benefit fund / society.
Accordingly, paragraph 4 (xiii) of the Order is not applicable.
(xiv)In respect of investment company:
According to the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly paragraph 4 (xiv) of the Order is not
applicable.
(xv) In respect of guarantees given by company:
According to the information and explanations given to us, the Company
has not given guarantee for loans taken by others from banks or
financial institutions.
(xvi) In respect of term loans:
The Company has not obtained term loans during the year and hence the
provisions of clause (xvi) of the said order is not applicable.
(xvii) In respect of funds raised on short-term basis:
According to the information and explanations given to us, the Company
has not used short term funds for long term investments.
(xviii) In respect of preferential issue made to parties covered in the
register u/s 301: 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. Accordingly, paragraph 4
(xviii) of the Order is not applicable.
(xix) In respect of debentures issued:
The Company did not issue any debentures during the year. Accordingly,
paragraph 4 (xix) of the Order is not applicable.
(xx) In respect of end use of public issue funds:
The Company has not raised any money by public issues during the year.
Accordingly, paragraph 4 (xx) of the Order is not applicable.
(xxi) In respect of frauds:
As presented to us by the management and based on our examination in
the normal course of audit, no material frauds on or by the Company
have been noticed or reported during the year.
For L N P & Co.
Chartered Accountants
FRN : 008918S
Sd/-
Purna Chandra Sekhar P
Date : 29-05-2014 Partner
Place : Hyderabad M.No : 214746
Mar 31, 2013
We have audited the accompanying Financial Statements of JEEVAN
SCIENTIFIC TECHNOLOGY LIMITED, HYDERABAD (A.P) ("The Company") which
comprise the Balance Sheet as at 31st March, 2013 and the Statement of
Profit and Loss and cash flow statement for the year then ended, and
Summary of Significant Accounting Policies and other explanatory
information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation of these Financial
Statements that give a true and fair view of the Financial position ,
Financial performance and Cash flows of the Company in accordance with
the Accounting Standards referred in the sub-section (3C) of section
211 of the Companies Act 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our Audit. We conducted
our Audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain the reasonable assurance about whether the financial
statements are free from material misstatement.
An Audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatements 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 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 qualified audit opinion.
Basis for qualified opinion:
The Company has provided for the Gratuity liability on an estimated
basis in accordance with the provisions of The Payment of Gratuity Act,
1972. It has not adopted and complied with the requirements of AS-15
''Employee Benefits'' in respect of the Gratuity liability, which
constitute a departure from the Accounting standards referred in
section 211(3C) of the Act. In view of this, the extent of the variance
between the actuarial liability in accordance with AS-15 and the
liability provided for in the books of the company in this regard could
not be ascertained. Consequently, we are unable to comment about the
impact of the same on the loss for the year, income tax and
shareholder''s funds.
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, 2013;
(b) In the case of the Statement of Profit and Loss, of the loss for
the year ended on the date; and
(c) In the case of the Cash flow statement, of the cash flows for the
year ended on that date.
Other matters
(a) The Company''s Balance Sheet as at March 31, 2013 indicates that the
Company''s current liabilities exceeded its total assets by Rs. 1.26
crores and the accumulated losses have exceeded fifty percent of the
net worth of the Company. These conditions indicate the existence of a
material uncertainty that may cast significant doubt about the
Company''s ability to continue as a going concern.
(b) The Company could not obtain confirmation of balances in respect of
trade receivables amounting to Rs. 3,65,40,840. Consequently, we are
unable to determine, if any adjustments are required to the amounts
reflecting in the Balance Sheet as at March 31, 2013 and the impact of
the same on the loss for the year, income tax and shareholder''s funds.
Report on other Legal and Regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the order.
2. As required by section 227(3) of the Act, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) the Balance Sheet, the Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
account;
(d) except for the matter described under the basis for qualified
opinion paragraph, in our opinion, the Balance sheet, Statement of
Profit and Loss, and 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 Written representations received from the Directors
as on March 31, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Act;
(f) Since the Central Government has not issued any notification as to
the rate at which cess is to be paid under section 441A of the
Companies Act 1956 nor has it issued any rules under the said section
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
Statement on the Companies (Auditor''s Report) Order, 2003 Re: JEEVAN
SCIENTIFIC TECHNOLOGY LIMITED i) (a) The Company has maintained proper
records showing full particulars including quantitative
details and situation of fixed assets.
(b) All the assets have been physically verified by the management
during the year. No material discrepancies have been noticed during
verification.
(c) During the year, the company had disposed certain fixed assets.
However, this does not affect the going concern status.
ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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 inventory. The
discrepancies noticed on verification between the physical stocks and
the book records have been properly dealt with in the books of account.
iii) (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s.301 of the Act.
(b) The Company has taken unsecured loans from two parties covered in
the register maintained u/s.301 of the Act. The amount involved is
Rs.160.29 Lakhs. The maximum amount involved during the year was Rs.
229.24 Lakhs and the closing balance of loans taken from such parties
was Rs. 242.88 Lakhs.
(c) In our opinion, the terms and conditions on which loans have been
taken from companies, and parties listed in the register maintained
under section 301 of the Companies Act, 1956 are not prima facie,
prejudicial to the interest of the company.
(a) According to explanations given to us, the lenders have not fixed
any repayment schedule. Hence, we are unable to comment upon as to,
whether the Company is regular in the payment of principal amount.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the
provision of services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section; and
(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 have been made at prices which are reasonable,
having regard to the prevailing market prices at the relevant time.
vi) The company has not accepted any deposits from the public within
the meaning of Section 58Aand 58AA of the Companies Act, 1956 and the
Rules framed there under.
vii) The company has internal audit system commensurate to the nature
and size of its business. viii) The Central Government has not
prescribed maintenance of cost records under clause (d) of sub- section
(1) of Section 209 (1)(d) of the Companies Act, 1956 for the products/
items dealt with by the company. ix) (a) The Company is regular in
depositing with appropriate authorities undisputed statutory dues
including investor education protection fund, employee''s state
insurance, sales tax, service tax etc. (b) According to the
information and explanations given to us, there are no dues of sales
tax, income tax, customs duty, wealth tax, excise duty, service tax and
cess which have not been deposited on account of any dispute.
x) The accumulated losses of the
company have exceeded fifty percent of its net worth as at 31 March
2013. The company incurred cash losses during the financial year
covered by our audit and not
incurred cash losses in the immediately preceding financial year.
xi) The Company has not defaulted in repayment of any dues to a bank/
financial institution.
xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The company is neither a chit fund nor a nidhi mutual benefit
fund/ society. Therefore, the provisions of clause 4(xiii) of the above
referred 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 above referred 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) During the year the company has not availed any term loans and
hence the provisions of Clause
(xvi) of the said Order are not applicable.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
xviii)The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) The company has not issued any debentures. Accordingly, the
provisions of clause 4(xix) of the above referred Order are not
applicable to the company.
xx) During the year the company has not raised money by public issue.
Accordingly, the provisions of clause 4(xx) of the above referred Order
are not applicable to the company.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For K.S.RAO & CO.,
Chartered Accountants
Firm''s Regn.No.003109S
Sd/-
Place: Hyderabad (P.GOVARDHANA REDDY)
Date: 29.05.2013 Partner
Membership No.029193
Mar 31, 2012
1. We have audited the attached Balance Sheet of JEEVAN SCIENTIFIC
TECHNOLOGY LIMITED, HYDERABAD (A.P) as at 31st March, 2012 and also the
Statement of Profit and Loss for the year ended on that date annexed
there to and the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the Company''s
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion:
3. As required by the Companies (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 paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above we report
that:
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books.
iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act,1956, excepting AS-15 "Employee Benefits".
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
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi) a) THE COMPANY HAS PROVIDED GRATUITY LIABILITY ON ESTIMATED BASIS
IN ACCORDANCE WITH PAYMENT FOR GRATUITY ACT. IT HAS NOT ADOPTED "AS 15
EMPLOYEE BENEFITS" IN MAKING PROVISION OF GRATUITY LIABILITY. IN VIEW
OF THIS, VARIANCE BETWEEN THE ACTUARIAL LIABILITY AND THE LIABILITY
PROVIDED ON ESTIMATED BASIS COULD NOT BE ASCERTAINED. HENCE WE ARE
UNABLE TO COMMENT ABOUT THE IMPACT ON THE PROFIT FOR THE YEAR.
b) THERE ARE NO CONFORMATION OF BALANCES FOR TRADE RECEIVABLES AND
LOANS & ADVANCES.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to our
comments in para 4(vi)above, 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 and Loss, of the Profit of
the Company for the year ended on that date; and
iii) In the case of Cash Flow Statement of the cash flows for the year
ended on that date.
Annexure
Statement on the Companies (Auditor''s Report) Order 2003 Re: JEEVAN
SCIENTIFIC TECHNOLOGY LIMITED,
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All the assets have been physically verified by the management
during the year. No material discrepancies have been noticed during
verification.
ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) 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 maintains proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book
records have been properly dealt with in the books of account.
iii) a) The company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s.301 of the Act.
b) The Company has taken unsecured loans from two parties covered in
the register maintained u/s.301 of the Act. The amount involved is
Rs.172.55 Lakhs.
c) In our opinion, terms and conditions of loans taken by the company
are prima facie not prejudicial to the interest of the company.
d) As per the information available with the company the lenders have
not fixed repayment schedule for the principal amount, we are unable to
comment whether the company is regular in payment of the principal
amount.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the
provisions of services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
v)a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section and
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 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) The company has not accepted the deposits from the public within
the meaning of Section 58Aand 58AA of the Companies Act, 1956 and the
Rules framed there under.
vii) The company has internal audit system.
viii) Central Government has not prescribed maintenance of cost records
under clause (d) of sub- section (1) of Section 209(1)(d) of the
Companies Act, 1956 for the products/items dealt with by the company.
ix)a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including investor education protection fund,
employee''s state insurance, sales tax.
b) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise
duty, service tax and cess which have not been deposited on account of
any dispute.
x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The company has not incurred cash
losses during the financial year covered by our audit and as well as in
the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to a bank.
xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The company is neither a chit fund nor a nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the above
referred 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 above referred 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) During the year the company has availed term loan from a bank and
the same was applied for the purpose for which the loan was obtained.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
xviii) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) The company has not issued any debentures. Accordingly, the
provisions of clause 4(xix) of the above referred Order are not
applicable to the company.
xx) During the year the company has not raised money by public issue.
Accordingly, the provisions of clause 4(xx) of the above referred Order
are not applicable to the company.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For K.S.RAO & CO.,
Chartered Accountants
Firm''s Regn.No.003109S
Sd/-
Place: Hyderabad (P.GOVARDHANA REDDY)
Date: 13.08.2012 Partner
Membership No.29193
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article