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Gennex Laboratories Ltd.

BSE: 531739 Sector: Health care
NSE: N.A. ISIN Code: INE509C01026
BSE LIVE 15:40 | 21 Aug 4.03 0.15
(3.87%)
OPEN

3.89

HIGH

4.10

LOW

3.70

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.89
PREVIOUS CLOSE 3.88
VOLUME 88166
52-Week high 7.90
52-Week low 3.50
P/E 19.19
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.89
CLOSE 3.88
VOLUME 88166
52-Week high 7.90
52-Week low 3.50
P/E 19.19
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gennex Laboratories Ltd. (GENNEXLAB) - Auditors Report

Company auditors report

The Members of

GENNEX LABORATORIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of GENNEX LABORATORIES LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year ended on that dateannexed thereto in which are incorporated the Return of Kolkata Branch Audited by BranchAuditor M/s Sibsankar & Associates Chartered Accountants Membership No. 052745 anda Summary 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 in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.

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 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 anddisclosures in the financial statements. The procedures selected depend on theauditor’s 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 Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the management as well as evaluatingthe 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.

Basis for Qualified Opinion:

The balances of Loans and Advances Deposits Unsecured loans Other Currentliabilities Trade Receivables and Trade Payables are subject to confirmations asindicated in Note

No. 33.3. The impact of the same is unascertained.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matters described on the Basis forQualified opinion paragraph the financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India: a. In case of the Balance Sheet of thestate of affairs of the company as at March 31 2016 b. In case of the statement of profitand loss of the Profit for the year ended on that date and c. In case of the Cash flowstatement of the Cash flows for the year ended on that date.

Emphasis of matter

• We draw attention to Note No. 33.4 to the financial statement which describespending registration formalities for land acquired. Our opinion is not qualified inrespect of this matter.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in "Annexure I" a statement on matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books c. The Balance Sheet the Statement of Profit and Loss and Cashflows statement dealt with by this Report are in agreement with the books of account. d.In our opinion the aforesaid financial statements comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. e. On the basis of written representations received from the directors as on31 March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164(2) of the Act. f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure 2". g. With respect to the other mattersincluded in the Auditor’s Report and in accordance with Rule 11 of Companies (Auditand Auditors) Rules 2014 and in our opinion and to the best of our information andexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in its financial statements. ii. The Company did not have anylong-term contracts including derivatives contracts for which there were any materialforeseeable losses. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Laxminiwas & Jain
Chartered Accountants
Firm Regn. No. 001859S
Sharada G Patil
Place : Hyderabad Partner
Date: 30th May 2016 Membership No. 015332

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

"Annexure 1"

Annexure to the Independent Auditor’s Report of even date on Financial Statementsof GENNEX LABORATORIES LIMITED ("the Company").

Re: GENNEX LABORATORIES LIMITED

i. a. According to the information and explanations furnished to us the company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets. b. According to the information and explanations furnished tous all the assets have not been physically verified by the Management during the year butthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification. c. According to the information and explanationsfurnished to us all the Immovable properties are held in the name of the company exceptLand as specified in Note No. 33.4.

ii. a. According to the information and explanations furnished to us the inventory hasbeen physically verified by the management during the year. In our opinion the frequencyof such verification is reasonable. b. According to the information and explanationsfurnished to us the Company is maintaining proper records of inventory. The discrepanciesnoticed on verification between the physical stocks and the book records were not material

iii. According to the information and explanations given to us the Company has notgranted any Loans to any of the parties covered in the register maintained under section189 of the Act.

iv. In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security; provisions of section 185 and 186of the Companies Act 2013 have been complied with. v. In our opinion and according to theinformation and explanations given to us the Company has not accepted any deposits fromthe public within the meaning of sections 73 to 76 or any other relevant provisions of theAct and rules framed there under.

vi. We have broadly reviewed the books of accounts maintained by the Company pursuantto the rules made by the Central Government for maintenance of Central Government formaintenance of cost records under Section 148(1) of the Companies Act 2013 and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the records with a viewto determine whether they are accurate or complete.

vii.a. According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues with appropriate authoritiesincluding provident fund employees state insurance income tax sales tax service taxduty of custom duty of excise Value added tax cess and any other statutory duesapplicable to it. b. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees state insurance incometax sales tax duty of custom duty of excise Value added tax or cess and any otherstatutory dues applicable to it were in arrears as at 31st March 2016 for a period morethan six months from the date they became payable except Income tax of Rs. 32.60 Lacs. c.According to the information and explanations given to us there are no dues of WealthTax Service Tax Customs Duty Excise Duty and Cess which are not deposited on account ofdispute except Income Tax of Rs. 56.67 Lacs (under the Income Tax Act 1961) and SalesTax of Rs.14.57 Lacs for which appeal/Petition are pending before Appellate Authorities/courts.

viii. According to the records of the Company examined by us and the information andexplanations given to us the company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as applicable as at the Balance sheetdate. ix. In our opinion and according to the information and explanations given to usthe term loans were applied for the purpose for which the loans were obtained.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the Generally Accepted Accounting Practice in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.

xi. According to the records of the Company examined by us and the information andexplanations given to us managerial remuneration has been paid in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V ofCompanies Act 2013. company. Therefore the provisions of clause 3

(xii) of the Companies (Auditor’s Report) Order 2016 are not applicable to thecompany.

xiii. According to the records of the Company examined by us all transactions with therelated parties are in compliance with section 177 and 188 of Companies Act 2013 and theamounts raised have been used for the purposes for which the funds were raised.

xiv. According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. xv. According to the information andexplanations given to us the company has not entered into any non-cash transactions withdirectors or persons connected with them. xvi.According to the information andexplanations given to us in our opinion the company is not required to get registrationunder section 45-IA of the Reserve Bank of India Act 1934.

For Laxminiwas & Jain
Chartered Accountants
Firm Regn. No. 001859S
Hyderabad Sharada G Patil
30th May 2016 Partner

"Annexure 2"

Annexure to the Independent Auditor’s Report of even date on Financial Statementsof GENNEX LABORATORIES LIMITED ("the Company").

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

GENNEX LABORATORIES LIMITED ("the Company") We have audited the internalfinancial controls over financial reporting of as of GENNEX LABORATORIES LIMITED("the Company") as of March 31 2016 in conjunction with our audit of financialstatements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s 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 company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

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 issued by ICAI and deemedto be prescribed under section 143(10) of the

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 the Guidance Noterequire that 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 error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company’s internal financial controls systemover financial reporting.

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 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 statements 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 thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations 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 periods 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.

Opinion

In our opinion the Company has in all material respects have 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 Laxminiwas & Jain
Chartered Accountants
Firm Regn. No. 001859S
Hyderabad Sharada G Patil
30th May 2016 Partner