| We have audited the accompanying financial statements of KAMRON
LABORATORIES LTD ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters 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 judgements
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 there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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, except for the effects of the matter
described in the Basis for Qualified Opinion Paragraph and Emphasis of
Matter 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, 2015;
(b) In the case of 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 sub
section (11) of section 143 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 sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books ;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account,
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report except comply
with the Accounting Standards notified under section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule
2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, and 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 of sub-section (2) of section 164
of the Companies Act, 2013.
f. With respect to other matters to be included in the Auditors' Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules
2014, in our opinion:
a) The company, according to the explanations and information, given to
us details of pending litigation which can have the impact on its
financial position in its financial statement have been stated in note
no. 33.
b) The company, according to explanations and information's given to
us, did not have any long term contracts including derivatives
contracts for which there were any material foreseeable losses.
c) The company did not have any amount which was required to be
transferred to the Investor Education and Protection Fund by the
company.
(Referred to in Paragraph 1 of our report of even date)
1. In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the anagementduringthe year in a phased periodical manner, which in
our opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
2. In respect of its inventory :
a) As explained to us, inventories have been physically verified by the
management at regular intervals during the year. 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 as
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company has notgranted any loans secured/unsecuredto any
company, firm or other party covered in register maintained under
section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. The Company has not accepted any deposits from the public within the
meaning of sections 73 and 74 of the Act and the rules framed
thereunder during the year under review The Company has not accepted
any deposits from the public during the year under review.
6. The Central Government (Ministry of Corporate Affairs) has
prescribed maintenance of Cost Records under section 148(1) of the
Companies Act, 1956 in respect of certain manufacturing activities of
the Company and the company has complied with the same. We have broadly
reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Accounting Records and Audit) Rules 2014 and are of the
opinion that prima facie the prescribed records have been maintained.
We have however, not made detailed examination of the cost records with
a viewto determining whether they are accurate or complete.
7. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory viz.
Investor Education and Protection Fund, Employees' State Insurance,
Income tax, Sales tax, Wealth Tax, Customs Duty, Excise Duty, Cess and
other statutory dues have been generally regularly deposited with the
appropriate authorities. However, the company has not regularly
deposited Provident Fund Contributions and Tax Deducted at Source and
they have been deposited beyond the period allowed under the respective
laws.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2015 for a period of more than six months
from the date of becoming payable.
c) Details of dues of Income tax, Sales Tax, Service Tax, Custom Duty,
Excise Duty, Value Added Tax, and Cess, which have not been deposited
on 31st March, 2015 on account of disputes are given below:-
Statue Nature of Dues Forum where the
Dispute is pending
The Central Excise Excise Duty Commissioner of
Act, 1944 Appeals
The Value Added Tax Sales Tax Commissioner of Tax
Statute period Amt. involved
The Central Excise Act 2006-07 Rs. 826339/-
1944
The Value Added Tax 2006-07 Rs.11032991/-
d) There was no amount which was required to be transferred to Investor
Education and protection Fund in accordance with relevant provisions of
the Companies Act, 1956.
8. The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year. However, we invite attention to
our observations in our report u/s 143(2) of the Act.
9 Based on our audit procedures and according to the information and
explanations given to us,we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions and banks.
10. The Company has not given any guarantee for loans taken by others
from banks orfinancial institutions.
11. According to the informations and explanations given to us and on
basis of verification conducted by us in our opinion the term loan were
applied for the purposes for which they were obtained.
12. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For DEEPAK SONI & ASSOCIATES
Chartered Accountants
Firm Registration No. 102250W
Place: Ahmedabad Deepak Soni
Date : 30th May, 2015 Proprietor
Membership No. 31138 |