THE MEMBERS OF CORAL LABORATORIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of CORAL LABORATORIES LIMITED("the Company") which comprise the Balance Sheet as at 31/03/2016 theStatement of Profit and Loss the cash flow statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act 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 of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments 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 accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 matters 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 andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall 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 31/03/2016and its Profit and it's cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order2016("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure A statements on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.
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 it appears from our 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 account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on31/03/2016 taken on record by the Board of Directors none of the directors isdisqualified as 31/03/2016 from being appointed as a director in terms of Section 164 (2)of the Act.
(f) The company has adequate internal financial controls system in place and there isan operating effectiveness of such controls. A report giving our responsibilities andopinion has been annexed herewith
(g) With respect to the other matters to be included in the Auditors 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 has disclosed the impact of pending litigations on its financialposition in its financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
Annexure to Independent Auditors Report
(Referred to in above the auditors report of even date to the members of CORALLABORATORIES LIMITED on the financial statements for the year ended 31.03.2016)
i. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) Fixed assets have been physically verified by the management at reasonableintervals; No material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanation given to us thetitle deeds of immovable properties are held in the name of the company.
ii. Physical verification of inventory has been conducted at reasonable intervals bythe management and no material discrepancy were noticed on such verification.
iii. According to the information and explanation given to us the company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in register maintained u/s 189 of the Act.
In view of the above provisions of clause 3 (iii) (a) (b) and (c) are not applicableto the company.
iv. In our opinion and according to information and explanations given to us thecompany has in respect of loans investments guarantees and security provisionscomplied with section 185 and section 186 of the Companies Act 2013.
v. According to the information and explanation given to us the company has notaccepted any deposits. Hence the provisions of clause 3(v) are not applicable to thecompany.
vi. We have broadly reviewed the books of accounts maintained by the company pursuantto the rules made by the Central Government of India. The maintenance of cost records hasbeen prescribed u/s 148(1) of the Act and we are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateor complete.
vii. (a) According to the books and records as produced and examined by us inaccordance with Generally Accepted Auditing Practices in India and also managementrepresentations undisputed statutory dues in respect of Provident fund EmployeesRs stateinsurance Income tax Sales tax Service tax Custom duty Excise duty Value Added TaxCess and other material statutory dues applicable to it has been regularly deposited withappropriate authorities.
(b) According to the records of the company the disputed dues in respect of exciseduty of Rs 18.56 lacs (previous year Rs18.56 lacs.); service tax Rs nil (previous year Rsnil.) and sales tax Rs nil (previous year Rs nil ) income tax Rs nil (previous year Rs nil) as at march 31st 2016 have not been deposited with appropriate authorities and noprovision has been made for the same
|Name of the Statute ||Nature of Dues ||Amount (Rs. in Lakhs) ||Period to which the amount relates ||Forum where dispute is pending |
|The Central Excise ||Excise Duty ||18.56 ||2002-03 2003-04 ||Supreme Court New Delhi |
|Act 1944. || || ||& 2004-05 || |
viii. In our opinion and according to the information and explanation given to us andthe books of accounts verified by us the company has not defaulted in repayment of duesto financial institution bank Government or dues to debenture holders.
ix. As per information given to us no money was raised by way of initial public offeror further public offer (including debt instruments). No term loans are raised by thecompany during the year.
x. During the course of our examination of books of accounts carried in accordance withthe Generally Accepted Auditing Standards in India we have neither come across anyinstance of fraud on or by the company either noticed or reported during the year norhave we been informed of such case by the management.
xi. According to information and explanation given to us and the books of accountsverified by us the managerial remuneration has been paid or provided in compliance withSection 197 read with Schedule V to the Companies Act 2013.
xii. The company is not a Nidhi company hence the provisions of clause 3(xii) are notapplicable to the company.
xiii. All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
xiv. According to information and explanation given to us and the books of accountsverified by us the company during the year has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures hence the provisionof clause 3(xiv) are not applicabe to companies.
xv. According to information and explanation given to us and the books of accountsverified by us the company has not entered into any non cash transaction with directors orpersons connected with it.
xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENT OFCORAL LABORATORIES LTD. AS ON 31st MARCH 2016
Report on the internal financial controls under clause (i) of sub -section 3 of Section143 of the companies Act 2013 ("the Act")
To the members of Coral Laboratories Limited.
We have audited the internal financial controls over financial reporting of CORALLABORATORIES LTD. ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statement of the Company for the year ended on thedate.
Managements responsibility for internal financial controls
The Companys Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute Of Chartered Accountants Of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of fraud and errors the accuracy and completeness of theaccounting records and timely preparation of reliable financial information as requiredunder The Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting("the Guidance Note") and the Standards on Auditing as specified under section143(10) of Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered accountants of India. Those Standards and Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls 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 the risks ofmaterial misstatement of the financial statements whether due to fraud or errors.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.
Meaning of internal financial control 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 purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company ; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statement inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys assets that could have a material effect on the financial statements.
Inherent limitations 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.Also projections of any evaluation of the internal financial controls over financialreporting to future period are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants Of India.
| ||For and on behalf of |
| ||SHAH SANGHVI & CO. |
| ||(Chartered Accountants) |
| ||ICAI Reg No. :109794W |
| ||Sd/- |
| ||JITESH P. SHAH |
|Place: Vadodara ||Proprietor |
|Date : 30th May 2016 ||M.No. : 034010 |