GENOMICS BIOTECH LIMITED
ANNUAL REPORT 2001-2002
We have audited the annexed Balance Sheet of GENOMICS BIOTECH LIMITED
formerly Abner Pharmaceuticals Limited as at 30th June 2002 and the
relative Profit and Loss Account for the year ending on that date both of
which we have signed under reference to this report. These financial
statements are the responsibility of the management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the accounting standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes,
examining on test basis, evidence supporting the amounts and disclosures in
the financial statement. An audit also includes assessing the accounting
principles used and significant estimates made by the management, as well
as evaluating the overall presentation of financial statements. We believe
that our audit provides a reasonable basis for our opinion.
We report that:
A) As required by the manufacturing and other companies (Auditor's -
Report) order 1988 issued by the company Law Board in terms of section 227
(4 A) of the companies Act, 1956, we enclose in the annexure a statement on
the matter specified in paragraph 4 and 5 of the said order.
B) Further to our Comment in Annexure referred to in paragraph (A) above,
we also report that:
a) We have obtained, all the information and explanations which to the best
of our knolwedge and belief were necessary for the purpose of our Audit.
b) In our opinion proper books of accounts as required by Law have been
kept by the Company so far as appears from our examination of the said
c) The balance Sheet and Profit & Loss account referred to in this report
are in agreement with the Books of Account.
d) In our opinion, the Profit & Loss Account & the Balance Sheet comply
with the accounting standards, referred to in Section 211 (3C) of the
Companies Act, 1956,
e) Based on the information and explanations given to us and
representations received from the directors, we report that no Directors is
disqualified from being appointed as Directors under clause (g) of sub
section (1) of the section 274 of the Companies Act. 1956.
f) Attention is invited to the following notes of schedule 15:
(1) Note no.6 regarding non-provision for Doubtful Sundry Debtors amounting
to Rs. 920160: (2) regarding non-provision of interest payable to SBBJ- &
PICCUP for Rs. 872.84 lacs approx. as stated in the above notes.
(2) Had the impact of items of (1) and (2) above been considered loss for
the year have been increased by Rs.882.04 lacs (instead of loss of
Rs.9,10,120) and the reserves and surplus would have been decreased by
Subject to the above, in our opinion and to the best of our information and
according to the explanation given to us, the said accounts read together
with notes thereon give the information required by the act in the manner
so required and give a true and fair view in conformity with the accounting
principles generally accepted in India.
(i) In the case of Balance Sheet of the state of affairs of the Company as
at 30th June 2002.
(ii) In the case of Profit & Loss Account, of the LOSS for the year ended
on that date.
For SURMELA & ASSOCIATES
2nd December, 2002
Annexure referred to in paragraph (A) of the Report of even date of the
Auditors Report to the Shareholders of Genomics Biotech Limited formerly
Abner Pharmaceuticals Limited on the Accounts for the year ended 30th June
1. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets. All the fixed
assets have been physically verified by the Management at the end of the
year and no discrepancies have been notice on verification.
2. The company had revalued land & Building during the F.Y. 1994-95 on the
basis of Report M/s.S.K. Chauban Associates, Approved valuers. The
difference on revaluation had been transferred to fixed assets Revaluation
reveneu. None other Fixed Assets have been revalued during the year.
3. The stock of finished goods, raw materials, stores, spares and tools,
packing Materials have been physically verified by the Management at
reasonable intervals during the year.
4. The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
5. The discrepancies noticed on physical verification of stocks as compared
to books of records were not material.
6. In our opinion, the valuation of stocks is fair and proper in accordance
with normally accepted accounting principles.
7. The company has not taken an loans from the Companies, firms and or
other parties listed in the register maintained under section 301 (1B) of
the Companies Act, 1956.
8. Except for Advances in the course of regular trade, the company has not
granted any loans to companies. firms or other parties listed in the
register maintained u/s 301 of the Companies Act, 1956 or covered by the
definition of Companies under the same management except to the subsidiary
companies u/s 370 (1B) of the Companies Act, 1956.
9. In respect of advances given to Suppliers of Machinery, they have not
been able to meet the delivery targets for which no reasonable /
satisfactory explanation has been furnished to us.
10. the Company is in the process of formulating adequate internal control
procedures commensurate with the size of the company and the nature of its
business for the purchase of stores, raw-material plant and machinery,
equipments or other assets and for sale of products.
11. As explained to us, the Company has a regular procedure for the
determination of unservicable or damaged stores and raw materials and
12. The company has not accepted any deposit from the public to which
provisions of section 58 (A) of the Company Act, 1956, the companies
(acceptance of Deposit) Rules 1975 and Reserve Bank of India guidelines
13. The company is maintaining reasonable records for the sale and disposal
of scraps. The company does not manufactures any by products.
14. The company has not yet set up formal Internal Audit System.
15. In our opinion and according to the information and explanations given
to us, the Central government has not prescribed for maintenance of the
cost records under section 209 (1) (d) of the Companies Act, 1956 for the
products of the Company.
16. There is no disputed amount payable in respect of Wealth Tax, Sale Tax,
Custom Duty and Excise Duty as at 30th June, 2002 which are outstanding for
a period more than six months from the date they became payable.
17. According to the information and explanations given to us, no personal
expenses have been charged to revenue account other than those payable
under the contractual obligations or in accordance with generally accepted
business practice nor we have been informed of such expenses by the
18. Clause IX & XI of para 4 (A) of the said order are not applicable to
19. In our opinion, the company is not a Sick Industrial Company within
the meaning of section 3 (1) of the Sick Industrial Companies (Special
Provision) Act 1985.
For SURMELA & ASSOCIATES
2nd December, 2002