| Report on the Financial Statements
We have audited the accompanying financial statements of ADS DIAGNOSTIC
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2014, 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
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 notified under the Companies Act, 1956 ("the
Act") 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. 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of 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 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
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, 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, Statement of Profit and Loss, and
Cash Flow Statement compl/ with the Accounting Standards notified under
the Act 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 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.
ANNEXURE referred to in paragraph 1 of our report of even date to the
members of ADS DIAGNOSTIC LIMITED on the accounts of the Company for
the year ended 31st March 2014.
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) (a)The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and to the best of our
knowledge and information given to us, no material discrepancies
have been noticed on such physical verification.
(c) No fixed assets were disposed off during the year so as to affect
the Company as a going concern.
(ii) (a)The Inventory has been physically verified by the management at
reasonable intervals during the year.
(b) in our opinion the procedures of physical verification of
inventories followed by the management are reasonable and adequate
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory.
Discrepancies noticed on physical verification of inventory as
compared to book records were not material and these have been
properly dealt with in the books of account. The Company has
written down inventories to the extent of Rs.76,09,287 on account
of diminution in their net realizable value.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Where the
Company has taken unsecured loans, where the aggregate amount
involved during the year was Rs. 179,27,291/- and where outstanding
balance as at the year-end was Rs. 1,22,73,621 /-, from four
parties covered in the register maintained under section 301 of the
Companies Act, 1956, the terms and conditions, in our opinion are
not prejudicial to the interest of the Company.
(iv) In our opinion, there is 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
sales. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) Based on the audit procedures applied by us and 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 Companies Act, 1956 that need to be entered into
the registe required to be maintained under that section have been
so entered. We have been explained that the transactions made in
pursuance of such contracts or arrangements have been made at
prices which are reasonable having regard to prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposit from the public during
the year.
(vii) During the year under observation, the Company had an internal
audit system commensurate with its size & nature of its business
wherein it was observed that all transactions are carried out under
the personal supervision of senior officials/directors of the
Company.
(viii) According to the information and explanations given to us, cost
accounting records have not been prescribed for the company u/s
209(1)(d) of the Companies Act 1956; hence Clause (viii) of Para 4
of the Order is not applicable.
(ix) (a) As per records produced before us and according to the
information and explanations given to us the Company is generally
regular in depositing undisputed statutory dues applicable to it
like, Income-tax, Wealth Tax, Provident Fund, Sales Tax, Service
Tax, and other material statutory dues applicable to it, with the
appropriate authorities, and, there were no arrears of such dues
at the end of the year which have remained outstanding for a
period of more than six months from the date they became payable.
(b) As per records produced before us and according to the information
and explanations given to us there are no dues of Income-tax,
Sales-tax, Customs duty, Wealth tax, Service Tax, Excise Duty or Cess
which have not been deposited on account of any dispute, except for the
following:
Name of Statute Period to Forum where Amount(Rs)
(Nature of dues) which amount dispute is pending
relates
Customs Duty 1995-96 Commissionerate 40,00,000 (Amount
(Customs) deposited under
protest Rs.500,000
Customs Duty 1993-94 Commissionerate
(Directorate of
Revenue Intelligence) 56,01,507
Income Tax AY 1988-89,& High Court 18,73,290
AY 1989-90
Income Tax AY 2012-13 Assessing Officer (CPC) 5,57,380
TDS demands Various Assessing Officer 69,700
financial (Traces)
years
(x) The company has accumulated losses of Rs. 896,336 as at the end of
the financial year, and has not incurred any 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 any bank or NBFC.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Hence, Clause (xiii) of Para 4 of the Order is
not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, debentures or other investments. Accordingly, Clause (xiv) of
Para 4 of the Order is not applicable.
(xv) The company has not given any guarantee for loans taken by others
from banks or financial institutions; hence Clause (xv) of Para 4 of
the Order is not applicable.
(xvi) The Company has not taken any term loans; hence Clause (xvi) of
Para 4 of the Order is not applicable.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
period under report, we are of the opinion that no funds raised on
short term basis have been used for long term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) As the Company has not issued any debentures, Clause (xix) of
Para 4 of the Order is not applicable.
(xx) As the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) 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 R. NAG PAL ASSOCIATES
Chartered Accountants Firm
Registration No.002626N
(CA J. S. Qadros)
Partner
M No.089181
Place; New Delhi
Dated: 30th May 2014
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