The Members of
CHOKSI LABORATORIES LIMITED
Report on the Financial Statements :
We have audited the accompanying financial statements of CHOKSI LABORATORIES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2015 andthe Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give atrue 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 ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and mattersd which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
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 risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating 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 on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2015 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 Companies (Auditor's Report) Order 2015 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act (hereinafterreferred to as "the Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure a statement on the matters specified inparagraphs 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 bestof 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 theCompany so far as appears from our examination of those books
c) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014
e) on the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors 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 matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us :
i. The Company does not have any pending litigation which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses..
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For PRATEEK JAIN & CO. |
| ||Chartered Accountants |
| ||(Registration No. 009494C) |
|Place : Indore ||Prateek Jain |
|Date : 30-05-2015 ||Proprietor |
| ||M.No. 079214 |
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS
Referred to in Paragraph 1 of the Report on Other Legal & Regulatory Requirementsof Independent Auditor's Report of Even date
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report to theextent:
i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b. Fixed assets have been physically verified by the management at reasonableintervals; no material discrepancies were noticed on such verification. In our opinionthe frequency of verification is reasonable.
ii. This being a service rendering Company there are no Manufacturing/TradingActivities in the Company the only inventory for the Company is Chemicals which is used& consumed for testing purposes. Since its inception the Company follows the practiceof charging to revenue the purchases of chemicals in the year of purchase itself. Due tothis reason and considering the nature of volatility of the item as per the explanationsgiven to us no inventory register is maintained for the same. Hence we are unable toexpress our opinion on Clause ii of the Order.
iii. The Company has not granted loans secured or unsecured to Companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Consequently our comments on clauses iii a and iii b of the order are NIL. Howeverthe Company has given an interest free rent deposit of Rs.20 Lacs for building to one suchparty.
iv. In our opinion and according to the information and explanations given to us thereare adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventories fixed assets and for sale ofservices. Further on the basis of our examination of books and records of the Companyand according to the information and explanations given to us we have neither comeacross nor have been informed of any continuing failure to correct major weakness inaforesaid internal control system.
v. The Company has not accepted any deposits from the public covered under theprovision of Section 73 to 76 of the Companies Act 2013 and the rules framed there underto the extent notified.
vi. The Central Government has not prescribed maintenance of cost records pursuant tothe Companies (Cost Records and Audit) Rules 2014 as amended by sub Section (1) ofSection 148 of the Companies Act 2013.
vii. (a) According to the information & explanations given to us and the records ofthe Company examined by us in our opinion undisputed statutory dues including ProvidentFund Employees' State Insurance Income Tax Wealth Tax Service Tax Custom Duty ExciseDuty Cess and any other material statutory dues to the extent applicable have beengenerally regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were outstanding as at March 31 2015 for aperiod of more than six months from the date they become payable;
(c) According to the information and explanations given to us there are no statutorydues which have not been deposited on account of disputes.
(d) According to the information and explanations given to us there is no amountrequired to be transferred to Investor Education and Protection Fund in accordance withthe relevant provision of the Companies Act 1956 and Rules made there under.
viii. The Company does not have any accumulated loss and has not incurred cash lossduring the financial year covered by our audit and in the immediately preceding financialyear.
ix. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto financial institution or bank. The Company has not issued debentures.
x. According to the information & explanations given to us the Company has notgiven guarantees for loan taken by others from a bank or financial institution.
xi. According to the information & explanations given to us all term loansobtained are used for the purpose for which they have been obtained.
xii. Based on the audit procedures performed and the information & explanationsgiven to us we report that no fraud on or by the Company has been noticed or reportedduring the year nor have we been informed of such case by the management.
| ||For PRATEEK JAIN & CO. |
| ||Chartered Accountants |
| ||(Registration No. 009494C) |
| ||Prateek Jain |
|Place : Indore ||Proprietor |
|Date : 30-05-2015 ||M.No. 079214 |