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JHS Svendgaard Laboratories Ltd.

BSE: 532771 Sector: Consumer
NSE: JHS ISIN Code: INE544H01014
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NSE 15:31 | 22 Aug 66.80 0.75
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OPEN 66.00
PREVIOUS CLOSE 66.10
VOLUME 14002
52-Week high 76.95
52-Week low 30.70
P/E 13.35
Mkt Cap.(Rs cr) 292
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 66.00
CLOSE 66.10
VOLUME 14002
52-Week high 76.95
52-Week low 30.70
P/E 13.35
Mkt Cap.(Rs cr) 292
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JHS Svendgaard Laboratories Ltd. (JHS) - Auditors Report

Company auditors report

To

The Members of

JHS Svendgaard Laboratories Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of JHS SvendgaardLaboratories Limited (the "Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 of 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'sjudgment 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2016 and its loss 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 2016 ("the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure "A" 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 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) 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 has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 31(I) (c) to the financialstatements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses and;

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For S. N. Dhawan & Co.

Chartered Accountants

Firm's Registration No. 000050N

S. K. Khattar

Partner

M. No. 084993

Place: New Delhi

Date: May 26 2016

Annexure "A" to the Independent Auditor's Report

Referred to in paragraph 1 of the Independent Auditor's Report of even date to themembers of JHS Svendgaard Laboratories Limited on the standalone financial statements asof and for the year ended March 31 2016.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us physical verification offixed assets is being conducted in a phased manner by the management under a programmedesigned to cover all the fixed assets over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Discrepancies noticed on such verification were not material and have beenproperly dealt with in the books of account.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) According to the information and explanations given to us the inventories havebeen physically verified by the management at reasonable intervals during the year. Thediscrepancies noticed on physical verification of inventories as compared to book recordswere not material and the same have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us and based on ourexamination of the documents and records the Company has granted interest free unsecuredloans to companies covered in the register maintained under Section 189 of the CompaniesAct 2013 in respect of such loans;

a) Terms and conditions of loans so granted are not prima facie prejudicial to theinterest of the Company.

b) According to the information and explanations given to us no repayment schedule hasbeen specified and accordingly the question of regularity in repayment of principal amountdoes not arise. Further as stated above these loan are interest free and repayment ofinterest does not arise.

c) As stated above no repayment schedule have been specified therefore there are noamount which is overdue for more than 90 days.

(iv) In our opinion and according to information and explanations given to us theCompany has in respect of loans investments guarantees and security complied with theprovisions of section 185 and 186 of the Act.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of Sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed there under.

(vi) In our opinion and according to the information and explanations given to us theCentral Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act 2013 for any of its products manufactured by the Company.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us the Company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax value added tax cess and any other statutory dues to theappropriate authorities and no undisputed amounts payable in respect of outstandingstatutory dues were in arrears as at March 31 2016 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome-tax sales-tax service tax value added tax which have not been deposited onaccount of any dispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to a financialinstitution banks and government. The Company has not issued any debentures during theyear.

(ix) In our opinion and according to the information and explanations given to us theCompany has not raised any moneys by way of initial public offer or further public offer(including debt instruments). The term loans raised were applied for the purposes forwhich they have been raised.

(x) Based on our audit procedures and as per the information and explanations given bythe management we report that no fraud by the Company or on the Company by its officersor employees has been noticed or reported during the year.

(xi) According to the information and explanations given to us and based on ourexamination of the books of account and other records of the Company the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with the schedule V to the Act.

(xii) According to the information and explanations given to us the Company is not aNidhi Company. Therefore the provisions of Clause 3(xii) of the Order are not applicableto the Company.

(xiii) Based on our audit procedures and as per the information and explanationsprovided by the management in our opinion the Company has entered into transactions withrelated parties in compliance with the provisions of section 177 and 188 of the Act whereapplicable and the details of such transactions have been disclosed in the notes to thefinancial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has made preferential allotment of shares duringthe year under review which is in compliance with the requirement of section 42 of theCompanies Act 2013 and the amount raised have been used for the purposes for which thefunds were raised. The Company has not made any preferential allotment or privateplacement of fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Therefore the provisions of clause 3(xv) of theOrder are not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of Reserve Bankof India Act 1934. Therefore the provisions of clause 3(xvi) of the Order are notapplicable to the Company.

For S.N. Dhawan & Co.

Chartered Accountants

Firm's Registration No. 000050N

S.K. Khattar

Partner

M.No. 084993

Place: New Delhi

Date: May 26 2016.

Annexure "B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of JHS Svendgaard Laboratories Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of JHSSvendgaard Laboratories Limited ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and effcientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 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 ICAI.

For S. N. Dhawan & Co.

Chartered Accountants

Firm's Registration No. 000050N

S. K. Khattar

Partner

M. No. 084993

Place: New Delhi

Date: May 26 2016.