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 31st March 2016 thestatement of Profit and Loss Account and the Cash Flow statement for the year then endedand a summary of significant accounting policies and other explanatory information.
2. Management's Responsibility for the Financial Statements
The Company's Board of Director is responsible for the matter stated in section 134(5)of the companies act 2013(the Act") with respect to the preparation and presentationof these standalone financial statement that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including Accounting Standards specifiedunder section 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014.This responsibility includes the design implementation and maintenance of internalcontrol relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.
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 forgratuity non provision for diminution in the value of the investments and regardingDoubtful loans and advances of Rs. 749633/- resulting to overstatement of profitamounting to Rs. 749633/- for the year the aforesaid financial statements givethe information required by the Act in the manner so required and give a true and fairview 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 31stMarch 2016.
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 (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub 11 of section 143 of the Act wegive in the Annexure A a statement on the matters specified in paragraphs 4 and 5of 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 March312016 taken on record by the Board of director None of the directors is disqualifiedas on March 312016 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 auditor's 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 31st March 2016 onits financial position in its financial statements.
ii. There has been no delay in transferring amounts required to be transferred to theinvestor education and protection fund by the company.
iii. The Company did not have any long term contracts including derivates contracts forwhich there were any material foreseeable losses; and
g) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating of the company and the operating effectivenessof such control refer to our separate report in Annexure B.
For KOTHARI JAIN & ASSOCIATES
FIRM REGN. NO. 113041 W
[SUNIL KUMAR KOTHARI]
Date: 30th MAY 2016
ANNEXURE A TO THE INDEPENDENT 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.
iii) a) The company has granted any loan secured or unsecured to Companies firms orother parties covered in the register maintained under section 189 of the Act..
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 adequateinternal 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) 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 76 ofthe Act and the rules framed there under to the extent notified.
vi) 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.
vii) 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 Tax SalesTax/VAT Wealth Tax Custom Duty Excise Duty Cess and Other material statutory dues withthe appropriate authorities and there are no outstanding unpaid amounts as at the balancesheet date 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 undisputeddues in respect of Sales Tax Income Tax Custom Duty Wealth Tax Excise Duty and Cess.
viii) 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.
ix) 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.
x) In our opinion and as explained to us the company has not given guarantee for loantaken by others from bank or financial institutions.
xi) According to the information and explanation given to us and on overall examinationof the balance sheet of the company the Company has applied the term loans for thepurpose for which the loans were obtained.
xii) 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
FIRM REGN. NO. 113041 W
SUNIL KUMAR KOTHARI
M. No. 043842
Dated: 30th MAY 2016
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Control under Clause (i) of Sub section 3 of section143 of the companies Act 2013 (the Act)
We have audited the internal financial control over financial reporting of Aurolaboratories Limited (" the company") as of 31st March 2016 in conjunction withour audit of the standalone financial statement of the company for the year ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial control based on the internal control over financial reporting criteriaestablish by the Company considering the essential components of the internal controlstated in the guidance note on Audit of Internal financial control over financialreporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our Responsibility is to express an opinion on the company's Internal Financial controlover financial reporting based on our audit. We conducted our audit in accordance with theguidance note on audit of Internal Financial control over financial reposting (theGuidance Note") and the standards on auditing issued by ICAI and deemed to beprescribed under section 143 (10) of the companies act 2013 to the extent applicable to anaudit of internal financial control both applicable to an audit of internal financialcontrol and both issued by the institute of chartered accountant of India. That standardand the guidance note required that we comply with ethical requirement and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialreporting was establish and maintained and if such controls operated effectively in allmatters respect.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control systems over financial reporting and their operatingeffectiveness. Our audit of internal financial control over financial reporting includedobtaining an understanding of internal financial control over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of risk of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis formy/our audit opinion on the company internal financial control systems over financialreporting.
Meaning of Internal Financial controls over financial reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purpose in accordance with generallyaccepted accounting principal. A company's internal financial control over financialreporting includes those policies and procedures
that (1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transaction and dispositions of the assets of the company; (2) providereasonable assurance that transaction are recorded as necessary to permit preparation offinancial statement in accordance with generally accepted accounting principles and thatreceipts and expenditure of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisitions use ordisposition of the company's assets that could have a material effect on the financialstatements.
Inherent Limitation of Internal Financial Control over financial reporting
Because of the inherent limitation of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected. Alsoprojection of any evaluation of the internal financial control over financial reporting tofuture periods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312016 based on the internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute Of Chartered Accountants Of India.
FOR KOTHARI JAIN & ASSOCIATES
FIRM REGN. NO. 113041 W
DATE: 30th May 2016.