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 31 March 2017 the statementof profit and loss the statement of cash flows for the year then ended and a summary ofthe 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 cash flows of the Company in accordance with the accountingprinciples generally accepted in India prescribed under Section 133 of the Act read withrelevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the management as well as evaluating the overall presentation of thefinancial 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.
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.
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 in 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 2017 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 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theorder.
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 theStatement of Cash Flows and the dealt with by this Report are in agreement with the booksof account; d. In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rule issuedthereunder; e. On the basis of the written representations received from the directors ason 31 March 2017 taken on record by the Board of
Directors none of the directors is disqualified as on 31 March 2017 from beingappointed as a director in terms of Section 164 (2) of the Act; f. With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in"Annexure B"; and g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 read with Companies (Audit and Auditors) Amendment Rules 2017 in our opinion andto 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 did not have any long-term contractsincluding derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and
iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company.
| ||For Laxminiwas & Jain |
| ||Chartered Accountants |
| ||Firm Regn. No. 001859S |
| ||Sharada G Patil |
| ||Partner |
| ||Membership No. 015332 |
|Place : Hyderabad || |
|Date: 30th May 2017 || |