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GKB Ophthalmics Ltd.

BSE: 533212 Sector: Consumer
NSE: GKB ISIN Code: INE265D01015
BSE 00:00 | 11 Nov 37.90 1.80
(4.99%)
OPEN

37.90

HIGH

37.90

LOW

37.00

NSE 05:30 | 01 Jan GKB Ophthalmics Ltd
OPEN 37.90
PREVIOUS CLOSE 36.10
VOLUME 2351
52-Week high 154.90
52-Week low 28.35
P/E
Mkt Cap.(Rs cr) 18
Buy Price 37.90
Buy Qty 1400.00
Sell Price 37.90
Sell Qty 100.00
OPEN 37.90
CLOSE 36.10
VOLUME 2351
52-Week high 154.90
52-Week low 28.35
P/E
Mkt Cap.(Rs cr) 18
Buy Price 37.90
Buy Qty 1400.00
Sell Price 37.90
Sell Qty 100.00

GKB Ophthalmics Ltd. (GKB) - Auditors Report

Company auditors report

To

The Members of

GKB Ophthalmics Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of GKBOphthalmics Limited ("the Company") which comprise the Balance Sheet as at 31stMarch2018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash Flows and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the stateof affairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014 and the Companies (Indian AccountingStandards) Rules 2015 as amended and the accounting principles generally accepted inIndia.

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 standalone IndAS 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 Ind AS financialstatements based 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 of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at 31stMarch 2018 andits loss(financial performance including other comprehensive income) its cash flows andthe changes in equity 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 in terms of subsection 11 of section 143 of the Act wegive in the Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 ofthe

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 the Statement of Cash Flow andthe Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards)Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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 standalone Ind AS financial statements - Refer Note 37 to the standaloneInd AS financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.

For Sharp &Tannan LLP

Chartered Accountants

ICAI Firm Registration No. 127145W/ W100218

Darryl Frank

Partner

Membership No. 104096

Place : Mapusa Goa

Date : 30 May 2018

ANNEXURE 'A' TO INDEPENDENT AUDITORS' REPORT ON THE STANDALONE Ind AS FINANCIALSTATEMENTS OF GKB OPHTHALMICS LIMITED FOR THE YEAR ENDED 31st MARCH 2018

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditors' Report to the members of GKB Ophthalmics Limited on thestandalone Ind AS financial statements for the year ended 31st March 2018]

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich its fixed assets are verified in a phased manner. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification.

(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. The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and book records which were not material havebeen properly dealt with in the books of account. However the system of recording thereceipt issue and consumption of inventories; and the system of valuation of inventoriesneeds to be improved.

iii. The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships (LLP) or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 ('the Act'). Accordingly the provisionsstated in paragraph 3 (iii) of the Order are not applicable to the Company.

iv. According to the information provided to us and explanations given to us theCompany has not granted any loans or made investment or provided any security / guaranteeas covered by provisions of sections 185 and 186 of the Act. Accordingly the provisionsstated in paragraph 3 (iv) of the Order are not applicable to the Company.

v. In our opinion and according to the information and explanations given to us and therecords examined by usthe Company has not accepted any deposits from the public duringthe year. Accordingly the Paragraph 3 (v) of the Order is not applicable to the Company.

vi. The provisions of sub-section (1) of section 148 of the Act are not applicable tothe Company as the Central Government of India has not specified the maintenance of costrecords for any of the products of the Company. Accordingly the provisions stated inparagraph 3 (vi) of the Order are not applicable to the Company.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company has been generally regular indepositing statutory dues relating to investor education and protection fund labourwelfare fund and other statutory dues as applicable with the appropriate authorities.However there has been delays in depositing statutory dues relating to provident fundemployees' state insurance income tax sales tax service tax Goods and Services taxduty of customs duty of excise value added tax with the appropriate authorities.According to the information and explanations given to us there are no arrears ofoutstanding statutory dues as at the last day of the financial year for the period of morethan six months from the date they became payable.

(b) According to the information and explanation given to us and examination of recordsof the Company the particulars of income tax sales tax and duty of excise as at 31stMarch 2018 which have not been deposited on account of a dispute pending are as under:

Name of the statute Financial year Nature of dues Disputed Amount (in Rs. lakhs) Forum where the dispute is pending
2005-06 Duty interest and penalty 17.17 Central Excise and Service Tax Appellate Tribunal (CESTAT)
The Central Excise Act 1944 2006-07 Duty interest and penalty 16.45 Joint Commissioner / Commissioner of Customs and Central Excise (Appeals)
2007-08 to Sept' 2015 Duty interest and penalty 1113.48 Commissioner Central Excise & Service Tax Goa
2008-09 Sales tax interest and penalty 111.71 Additional Commissioner of Commercial Tax Panaji
The Central Sales Tax Act 1956 2013-14 Sales tax interest and penalty 9.15 Additional Commissioner of Commercial Tax Panaji
2014-15 Sales tax interest and penalty 49.44 Additional Commissioner of Commercial Tax Panaji
Income Tax Act 1961 2012-13 Income tax interest and penalty 41.37 Commissioner of Income Tax (Appeals)
2013-14 Income tax interest and penalty 39.25 Commissioner of Income Tax (Appeals)
Goa Tax on Entry of Goods Act 2000 2013-14 CST and interest 23.29 Additional Commissioner of Commercial Tax Panaji
Goa Value Added Tax Act 2005 2014-15 VAT interest and penalty 0.28 Additional Commissioner of Commercial Tax Panaji
1421.59

Note: Figures given above are net of deposits / payments made.

viii. The company has not issued any debentures. According to information andexplanations given to us there was no default on repayment of loans obtained from banksand financial institutions.

ix. According to information and explanations given to us the company has not raisedmonies by way of initial public offer or further public offer (including debtinstruments).

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyfraud by the Company or on the Company by its officers or employees noticed or reportedduring the year nor have we been informed of such by management.

xi. According to the information and explanations given to us the managerialremuneration has been paid and provided in accordance with the provisions of Section 197read with Section 198 read with Schedule V to the Act

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions stated in paragraph 3(xii) ofthe Order are not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions stated in paragraph 3 (xiv) of the Order are notapplicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly provisions statedin paragraph 3(xv) of the Order are not applicable to the Company.

xvi. In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions stated in paragraphclause 3 (xvi) of the Order are not applicable to the Company.

For Sharp &Tannan LLP

Chartered Accountants

ICAI Firm Registration No. 127145W/ W100218

Darryl Frank

Partner

Membership No. 104096

Place : Mapusa Goa

Date : 30th May 2018

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE Ind AS FINANCIALSTATEMENTS

OF GKB OPHTHALMICS LIMITED

[Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' of the Independent Auditors' Report to the members of GKB OphthalmicsLimited on the standalone Ind AS financial statements for the year ended 31stMarch 2018]

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 with reference to financial statementsof GKB Ophthalmics Limited ("the Company") as of 31stMarch 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI) (the"Guidance Note"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements 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 systemwith reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A Company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31st March 2018 based on the internal control with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by ICAI.

For Sharp &Tannan LLP

Chartered Accountants

ICAI Firm Registration No. 127145W/ W100218

Darryl Frank

Partner

Membership No. 104096

Place : Mapusa Goa

Date : 30th May 2018