To the Members of Ortin Laboratories Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of Ortin Laboratories Limited('the Company') which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement of CashFlows and the Statement of Changes in Equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. 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 of thesefinancial statements that give a true and fair view of the state of affairs (financialposition) profit or loss (financial performance including other comprehensive income)cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards ('IndAS') specified under Section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit.
4. 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.
5. 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 ethical requirements and plan and perform the audit to obtain reasonableassurance about whether these financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Ind AS specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at 31stMarch2018 and its profit & loss (financial performance including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 account as required by law have been kept by theCompany so far as it appears from our examination of those books;
c) The financial statements dealt with by this report are in agreement with the booksof account;
d) In our opinion the aforesaid financial statements comply with Ind AS specifiedunder Section 133 of the Act;
e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31stMarch 2018 from being appointed as a director in terms of Section 164(2) of the Act;
f) In our opinion and to the best of our information and according to the explanationsgiven to us we are of the opinion that the company has adequate internal financialcontrols system in place 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:
i. the Company does not have any pending litigations which would impact its financialposition;
ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and
For Sathuluri & Co
Firm's Registration No.: 006383S
S S Prakash Proprietor
Membership No.: 202710
Place: Hyderabad Date:
Annexure A to the Independent Auditors' Report of even date to the members of OrtinLaboratories Limited on the financial statements for the year ended 31st March2018
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:
i. In Respect of its Fixed Assets:
(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) These fixed assets have been physically verified by the management at reasonableintervals in accordance with regular program of verification. According to the informationand explanation given to us 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 management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies between physical inventory andbook records were noticed on physical verification
iii. The company has not granted loans secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Accordingly the provisions of clauses3(iii)(a) 3(iii)(b) 3(iii)(c) of the Order not applicable
iv. On the basis of information and explanations provided to us by the management
the Company has not entered into any transactions falling within the ambit of Section185 and 186 of the Companies Act 2013. Accordingly the provisions of clauses 3(iv) of theOrder not applicable
v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptances of Deposits) Rules 2014(as amended). Accordinglythe provisions of clauses 3(v) of the Order not applicable.
vi. In our opinion and according to the information and explanations given to us thecompany is maintaining proper cost records as been prescribed by the Central Governmentunder sub section (1) of section 148 of the Companies Act 2013 for the activities of theCompany.
(a) The company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax cess and any other materialstatutory dues as applicable to the appropriate authorities. Further no undisputedamounts payable in respect thereof were outstanding at the year-end for a period of morethan six months from the date they become payable.
(b) There were no dues in respect of income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other material statutory
dues that have not been deposited with the appropriate authorities on account of anydispute.
(c) According to the records of the Company the dues outstanding of income tax salestax wealth tax service tax custom duty value added tax and cess on account of anydispute are as follows:
1. Service Tax Under RCM on Sitting Fee - Rs. 2472/-
2. Sales Tax payable (Mumbai Br.) - Rs. 115702/-
3. Value Added Tax Payable 2012-13 - Rs. 16164/-
4. Service Tax of Rs. 8985698/-
viii. The Company has not defaulted in repayment of loans or borrowings to any banks orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.
ix. The Company did not raise moneys by way of initial public offer or further publicoffer(including debt instruments).ln our opinion term loans were applied for the purposefor which the loans were obtained
x. No fraud by the company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.
xi. According to the information and explanations given 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 the company is not a Nidhi Company. Accordingly clause 3(xii) ofthe Order is not applicable.
xiii. In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.
xiv. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.
xv. During the year The company has not entered into any non-cash transactions withdirectors or persons connected with him.
xvi. The company is not a required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For Sathuluri & Co
Firm's Registration No.: 006383S
S S Prakash
Membership No.: 202710
Annexure B to the Independent Auditor's Report of even date to the members of OrtinLaboratories Limited on the financial statements for the year ended 31st March2018
Independent Auditor's report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")
1. In conjunction with our audit of the financial statements of Ortin Laboratories Limited("the Company") as of and for the year ended 31st March 2018 wehave audited the internal financial controls over financial reporting (IFCoFR) of theCompany as of that date.
Management's Responsibility for Internal Financial Controls
2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the Company's business including adherence to Company's policies thesafeguarding 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 under the Act.
3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A Company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sIFCoFR 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
7. Because of the inherent limitations of IFCoFR including the possibility of
collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theIFCoFR to future periods are subject to the risk that IFCoFR may become inadequate becauseof changes in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31stMarch 2018 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.
For Sathuluri & Co
Firm's Registration No.: 006383S
S S Prakash
Membership No.: 202710