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Mercury Laboratories Ltd.

BSE: 538964 Sector: Health care
NSE: N.A. ISIN Code: INE947G01011
BSE 00:00 | 19 Oct 419.90 19.90
(4.98%)
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NSE 05:30 | 01 Jan Mercury Laboratories Ltd
OPEN 386.00
PREVIOUS CLOSE 400.00
VOLUME 3
52-Week high 498.75
52-Week low 339.00
P/E 12.01
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 386.00
CLOSE 400.00
VOLUME 3
52-Week high 498.75
52-Week low 339.00
P/E 12.01
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mercury Laboratories Ltd. (MERCURYLABS) - Auditors Report

Company auditors report

To the Members of Mercury Laboratories Limited

Report on the Financial Statements

We have audited the accompanying Financial Statements of MERCURY LABORATORIESLIMITED ("the Company") which comprise the Balance sheet as at 31"March 2016 the Statement of Profit & Loss the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Stateiments

The Company’s Board of Directors is responsible for the matters stated In Section134(5) of the Companies Act 2015 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Companies Act 2013 read with Rule 7 of the Companies (Account) Rules2014. 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 etfectively 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 thedesign implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

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 there under.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the 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 on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state ofaffairsoftheCompanyasatMarch312016;

b) in the case of the Statement of Profit and Loss of the Profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2016 ("the order")issued by the Central Government in terms of section 143 (11) of the Companies Act 2013we enclose in the Annexure a statement on the matters specified in paragraph 3 & 4 ofthe said 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 purpose of our Audit;

b) In our opinion proper books of accounts as required by the law have been kept bythe Company so far as appears from our examination of the said books;

c) The Balance Sheet Statement of Profit & Loss and Cash Flow Statement dealt withby this report are in agreement with the books of accounts of the Company;

d) In our opinion the aforesaid Financial Statements comply with the AccountingStandards specified 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 on 31*March 2016 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31* March 2016 from being appointed as a director of theCompany in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting and the operating effectiveness of such controls; refer to our separate reportin Annexure - B attached herewith.

g) With respect to the other matters to be included in our Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us:

(I) There are no long term contracts for which provision is required.

(ii) There has been no delay in transferring amounts required to be transferred to theInvestor Protection Fund by the Company.

FOR NARESH & CO.
CHARTERED ACCOUNTANTS
(F.R.N. 106928W)
CA ANIL SHAH
Place : Vadodara PARTNER
Date : 06/05/2016 (M. R. N. 035309)

ANNEXURE - A TO THE AUDITORS' REPORT

(Referred to In paragraph 1 under' Report on Other Legal and Regulatory Requirements'section of our report of even date for the year ended 31rt March 2016 ofMercury Laboratories Limited)

(i) (a) The Company has maintained proper records showing full particulars includingQuantitative Details

and situation of the Fixed Assets.

(b) All the assets have not been physically verified by the management during the yearbut there 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. As informed to us nomaterial discrepancies were noticed on such verification.

(II) (a) The inventory has been physically verified during the year by the managementin our opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) On the basis of our examination of the records of inventory we are of the opinionthat the company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records have been properly dealtwith in the books of accounts

(iii) The Company has not granted any loan secured or unsecured to Companies Firmsor Other Parties covered in the register maintained u/s. 189 of the Companies Act 2013during the year under report consequently no comments are necessary on Para (iii) (a)& (b) of CARO 2015.

(iv) The Company has not granted any loans or advances or has not given any guaranteeor has not acquired securities of any other body corporate exceeding sixty percent of itspaid up share capital free reserves and securities premium account or one hundred percentof its free reserves and securities premium account whichever is more and hence thequestion of compliance of Section 185 and 186 of Companies Act 2013 doesn't arise.

(v) The Company has accepted deposits from members and the same is in compliance withthe provisions of Section 73 to 76 of the Companies Act 2013.

(vi) We have broadly reviewed the cost records maintained by the company for itsproducts pursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by theCentral Government for the maintenance of cost records under Section 148(1) of theCompanies Act 2013 and we are of the opinion that prims facie the prescribed costrecords have been made and maintained. However we have not made a detailed examination ofthese records with a view to determine whether they are accurate or complete.

(vii) (a) According to the records of the Company the Company is regular in depositingwith appropriate

authorities undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Sales Tax Wealth Tax Service Tax Custom Duty Excise Duty ValueAdded Tax and other material statutory dues applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of Income Tax Wealth Tax Sales Tax Service Tax Customs Duty ExciseDuty Value Added Tax Cess and other material statutory dues applicable to the Companywere outstanding as at 31* March 2016 for a period of more than six months from the datethey became payable.

(b) According to the records of the company there are no dues of Sales Tax IncomeTax Service Tax Customs Duty Wealth Tax Excise Duty or Cess which have not beendeposited on account of any dispute except the following :

Statute Nature of Dues Amount (Rs.) Period Pending in which Forum
Sales Tax GST on Assessment 89391.00 1991-92 Tribunal Appeals
Service Tax Wrong Availment of Credit 1147688.00

304216.00

2005-08

2011-15

Commissioner Appeals CESTAT Ah me da bad
Excise Non Payment of Duty on Expired Goods 104501.00 2008-09 CESTAT Ahmadabad
Excise Excise Duty on Physician Sample 536791.00 2005-06 CESTAT Ahmadabad
Income tax Demand u/s 156 of income tax act 2784170.00 2012-13 CIT(appeal) Mumbai

(c) The amount required to be transferred to Investor Education and Protection Fund interms of Section 642 of the Companies Act 1956 read with sub-section {3} of Section 205Cof the said Act and the Investor Education and Protection Fund (Awareness and Protectionof Investors) Rules 2001 has been duly transferred.

(viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the company has not defaulted in repayment ofdues to financial institutions or banks. The Company has not issued any debentures.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loan except a vehicle loan which hasbeen applied for the purpose for which it was raised.

(x) Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 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 paragraph 3(xii) of the Order is notapplicable.

(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 financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give 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.

(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 paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAofthe ReserveBank of India Act 1934.

FOR NARESH & CO.
CHARTERED ACCOUNTANTS
(F.R.N. 106928W)
Place : Vadodara CA ANIL SHAH
Date : 06/05/2016 PARTNER
(M. R. N. 035309)

Annexure - B to the Auditors' Report

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 M/sMercury Laboratories Limited ("the Company") as on 3V March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Respective Board of Directors of the Company are responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information's 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") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial 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 judgment 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 systemoverfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s Internal financial control overfinancial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 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 have in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control overfinancial 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 NARESH &CO.
CHARTERED ACCOUNTANTS
(F.RN. 106928W)
CA ANIL SHAH
Place : Vadodara PARTNER
Date : 06/05/2016 (M.R.N. 035309)