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Mercury Laboratories Ltd.

BSE: 538964 Sector: Health care
NSE: N.A. ISIN Code: INE947G01011
BSE 00:00 | 07 Dec 390.00 -5.00
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NSE 05:30 | 01 Jan Mercury Laboratories Ltd
OPEN 390.00
PREVIOUS CLOSE 395.00
VOLUME 93
52-Week high 498.75
52-Week low 339.00
P/E 14.04
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 390.00
CLOSE 395.00
VOLUME 93
52-Week high 498.75
52-Week low 339.00
P/E 14.04
Mkt Cap.(Rs cr) 47
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 Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS financial statements of Mercury laboratoriesLimited ("the Company") which comprise the Balance Sheet as at 31 st March2018 the Statement of Profit and Loss including the statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312018 its profit including other comprehensive income its cash flows and the changes inequity for the year ended on that date.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethic. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis forouropinion.

Management's Responsibility forthe 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (IndAS) specified undersection 133 of the Act. read with Rule 7 of the Companies (Accounts) Rules2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosures as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility forthe Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as per Ind AS are free from material misstatement whether due to fraud orerror and to issue an auditor's report that included our opinion. Reasonable assurance isa high level of assurance but it is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in aggregatethey could reasonably be expected to influence the economic decision of users taken on thebasis of these financial statements.

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 Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theInd AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the IndAS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Ind ASfinancial statements.

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 Aa statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act wereportthat:

(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 account as required by law have been kept by theCompany so far as it appears from our examination ofthose books;

(c) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreementwith the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014 Companies (Indian Accounting Standards) Rules 2015 asamended;

(e) On the basis of written representations received from the directors as on March312018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312018 from being appointed as a director in terms of section164 (2) of the Act;

(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" to this report;

(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 as amended inour opinion and to the best of our information and according to the explanations given tous:

I. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note 25 to the Ind AS financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 1 2017 prepared in accordancewith Ind ASincluded in these Ind AS financial statements have been audited by thepredecessor auditor who the financial statements for the relevant periods. The report ofthe predecessor auditor on the comparative financial information and the opening balancesheet expressed an unmodified opinion.

ForR. J.Shah & Associates
Chartered Accountants
(F.R.N.: 109752W)
N.R.Dholakia
Place: Vadodara Partner
Date: May 282018 M.No. 037350

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 31*1 March 2018 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.

(c) The title deeds of the immovable properties are held in the name of the company.

(ii) (a) The inventory has been physically verified during the year by the management.In 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)& (c) of CARO 2016.

(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/directors and the same is incompliance with the 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 prima 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 FundEmployees' State Insurance Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty Value Added Tax Goods and Service Tax and other material statutory duesapplicable 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 Goods and Service Tax Cess and other material statutory duesapplicable to the Company were outstanding as at 31* March 2018 for a period of morethan six months from the date they 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 Goods and Services Tax Cesswhich have not been deposited on account of any dispute except the following

Statute Nature of Dues Amount (Rs.) Period Pending in which Forum
Service Tax Wrong Availment of Credit 1147688/- 2005-08 Commissioner Appeals

(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 beenduly 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) except a term loan which has been applied forthe 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)ofthe 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 Ind AS-24 "Related Party Disclosures".

(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-IAof the ReserveBank of India Act 1934. Accordingly the provisions of 3(xvi) of the order are notapplicable to the Company.

For R. J. Shah & Associates
Chartered Accountants
(F.R.N.: 109752W)
N.R.Dholakia
Place: Vadodara Partner
Date: May 282018 M.No. 037350

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/s.Mercury Laboratories Limited ("the Company'') as on 31st March 2018 inconjunction with our audit of the financial statements of the Company for the yearended onthatdate.

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's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols overfinancial 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 overfinancial 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 auditors judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea 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 process designed toprovide 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 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 2018 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 Institute of theChartered Accountants of India.

For R. J. Shah & Associates
Chartered Accountants
(F.R.N.: 109752W)
N.R.Dholakia
Place: Vadodara Partner
Date: May 282018 M.No.037350