INDEPENDENT AUDITORS REPORT
Auditors Report to the Members of AURO LABORATORIES LIMITED
1. Report on the Financial Statements
We have audited the attached financial statements of AURO LABORATORIES LIMITED("the Company") which comprises the Balance Sheet as at 31s1 March2015 the statement of Profit and Loss Account and the Cash Flow statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
2. Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in India includingAccounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014. This responsibility includes the design implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the standards on Auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risk of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders the internal control relevant to the Company's preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid subject to the Notes regarding non provision for gratuity nonprovision for diminution in the value of the investments and regarding Doubtful loans andadvances of Rs. 749633/- resulting to understatement of Loss amounting to Rs.749633/- for the year the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
a) In the case of the balance sheet of the state of affairs of the Company as at 31stMarch 2015.
b) In the case of the Profit & Loss Account of the "Profit" for the yearended on that date.
c) In the case of the Cash Flow Statement of the Cash Flow for the year ended on thatdate.
5. Report on other legal and Regulatory Requirements
1. As required by the companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub 11 of section 143of the Act we give in the annexure a statement on the matters specified in paragraphs 4and 5 of the order.
2. As required by Section 143(3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of accounts as required by law have kept by the companyso far as appears from ours examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of accounts.
d) In our opinion the Balance Sheet the Statement of Profit and Loss and the Cash Flowstatement comply with the accounting standards referred to in section 133 of the Act readwith rule 7 of the Companies (Accounts) Rule 2014 except Accounting for RetirementsBenefits (AS15).
e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of director None of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of section 164 (2) of theAct
f) With respect to the other matter to be included in the auditors report inaccordance with rule 11 of the companies (Audit and Auditors) Rule 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanation given to us:
i. The company has disclosed the impact of pending litigations as at 31stMarch 2015 on its financial position in its financial statements.
ii. The Company has made provision as at 31st March 2015 as required underapplicable law or accounting standard for material foreseeable losses.
For KOTHARI JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS FIRM REGN. NO. 113041 W
SUNIL KUMAR KOTHARI PROPRIETOR M.NO. 043842 Place: Mumbai
28lh MAY 2015
ANNEXURE TO THE AUDITORS REPORT
(Referred to in our Report of even date)
We have prepared this annexure on the basis of the Books of Account examined andinformation and explanations obtained by us during the course of our Audit. Further inour opinion and to the best of our knowledge we report that
i) a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
b) As explained to us the fixed assets are being physically verified under a phasedprogramme of verification which in our opinion is reasonable and no materialdiscrepancies have been noticed on such verification.
c) The company has not disposed off substantial part of fixed assets during the yearunder review to affect its going concern.
ii)a) Inventories have been physically verified during the year by management atreasonable intervals.
b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and nature of its business.
c) The company is maintaining proper records of its inventories as required in thenormal course of business. The discrepancies noticed on verification between physicalstocks and book records were not material.
ii)a) The company has not granted any loan secured or unsecured to Companies firms orother parties covered in the register maintained under section 189 of the Act. The Companyhas not taken any unsecured loan during the year from the parties covered in the registermaintained under section 189 of the Act and the yearend balance of loans taken is Rs.751.82 lacs.
b) In our opinion the rate of interest and other term and condition on which theunsecured loans have been taken by the company listed in the register maintained undersection 189 of the Act are not prima-facie prejudicial to the interest of the company.
c) The terms of repayment of the principal amount is not specified.
d) In our opinion according to the information and explanation given to us reasonablesteps have been taken by the company for the payment of the principal amount and no amountis overdue for more than rupee one lacs.
iv) In our opinion and according to the information and explanation given to us thereare adequate internal control procedures commensurate with the size of the company and thenature of its business for the purchases of inventory and fixed assets and for sale ofgoods. We have not observed any major weakness in the internal control system during thecourse of our audit. The Company is continuously correcting weakness detected in internalcontrol.
v) a) According to the information and explanation given to us we are of the opinionthat the transaction that need to be entered into the register maintained in pursuance ofsection 301 of the Companies Act 1956 have generally been so entered.
b) According to the information and explanation given to us transactions made inpursuance of contract or arrangements entered into the register maintained under section301 of the Companies Act 1956 and exceeding the value of Rs. 5.00 lacs in respect of anyparty during the year have been made at prices which are reasonable having regard toprevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from public within the meaning of section 73 and 74 ofthe Act and the rules framed there under to the extent notified.
vii) In our opinion the company has formal internal audit system commensurate with sizeand nature of business.
viii) We have broadly reviewed the books of accounts maintained by the Company pursuantto the order made by the Central Government for maintenance of cost records prescribedunder Sub- Section (1) of section 148 of the Act and are of the opinion that prima faciethe prescribed accounts have been made and maintained. We have however not made adetailed examination of the said records with a view to determining whether they areaccurate or complete.
ix) a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company we are of the opinion that the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundInvestors Education and protection fund Employees State Insurance Income TaxSales Tax/VAT Wealth Tax Custom Duty Excise Duty Cess and Other material statutorydues with the appropriate authorities and there are no outstanding unpaid amounts as atthe balance sheet date for a period of more than six months from the date they becamepayable.
b) According to the information and explanations given to us there are no undisputeddues in respect of Sales Tax Income Tax Custom Duty Wealth Tax Excise Duty and Cess.
x) In our opinion the Accumulated losses of the company at the end of the financialyear are not more than fifty per cent of its net worth. The company has not incurred cashlosses during the financial year covered by our audit as well as in the immediatelypreceding financial year.
xi) In our opinion according to the information and explanation given to us thecompany has not defaulted in repayment of dues to financial institutions or banks.
xii) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or advances against security by way of pledge of sharesdebentures and other securities.
xiii) In our opinion the company is not a chit fund or a Nidhi \ Mutual benefit fund\Society to which the provisions of any special statue apply: accordingly the provisions ofclause 4(xiii) of the Order are not applicable to the company.
xiv) In our opinion the company is not dealing or trading in shares securitiesdebentures and other investments.
xv) In our opinion and as explained to us the company has not given guarantee for loantaken by others from bank or financial institutions.
xvi) According to the information and explanation given to us and on overallexamination of the balance sheet of the company the Company has applied the term loansfor the purpose for which the loans were obtained.
xvii) According to the information and explanation given to us and on over allexamination of the balance sheet of the company we report that no funds raised on short-term basis have been used for long- term investments. No long- term funds have been usedto finance short -term assets except Permanent Working Capital.
xviii) In our opinion the company has not made any preferential allotment of shares toparties and Companies covered in the register maintained in pursuance of section 301 ofthe Companies Act 1956.
xix) In our opinion the Company has not issued any debentures during the year underaudit.
xx) The Company did not raise money through public issue during the year under review.
xxi) According to the information and explanation given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
For KOTHARI JAIN & ASSOCIATES
CHARTERED ACCOUNTANT FIRM REGN. NO. 113041 W
SUNIL KUMAR KOTHARI PROPRIETOR M. No.043842
Place: Mumbai 28lh MAY 2015
Auro Laboratories Limited