| We have audited the accompanying Financial Statements of Chemo Pharma
Laboratories Ltd. ('the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial Statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statement.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Companies (Auditors Report) order 2015 issued by
Central Government of India in terms of sub section 11 of Section 143
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 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 best of 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid Financial Statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of The Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
Directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a Director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of The Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditor's Report
(Referred to in paragraph 1 under 'Report on other legal and Regulatory
requirements' section of our report of even date)
(i) The Company does not have any fixed assets accordingly the
provisions of this clause are not applicable to the Company.
(ii) The Company does not have any inventories accordingly, the
provisions of this clause are not applicable to the Company
(iii) (a) The company has granted interest free loan to one party
covered in the register maintained under Section 189 of
the Companies Act. The yearend balance of loans granted was Rs nil and
the maximum amount involved during the year was Rs. 10,00,000/-.
(b) The loan granted is repayable on demand. As informed, the Company
has not demanded repayment of any such loan during the year, thus there
has been no default on the part of the party to whom money has been
lent.
(iv) As the Company has discontinued its operations so clause in
respect of internal control system for the purchase of Inventory, Fixed
Assets and for the sale of goods and services is not applicable.
(v) The Company has not accepted any deposits during the year with in
the meaning of the provisions of Section 73 to 76 or any other relevant
provisions of the Companies Act and the rules framed there under.
(vi) To the best of our knowledge and as explained central Government
has not prescribed maintenance of cost records under sub-Section (1) of
Section 148 of the Companies Act;
(vii) a. The Company is regular in depositing undisputed statutory dues
including provident fund, employees' state insurance, income-tax,
sales-tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues with the appropriate
authorities. There are no arrears of outstanding statutory dues as at
the last day of the financial year concerned for a period of more than
six months from the date they became payable.
b. According to the information and explanations given to us there are
no dues outstanding of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
that have not been deposited on account of any dispute.
c. According to the information & explanations given to us, the dues
in respect of sales tax, income tax, custom duties, wealth tax, excise
duty, and cess that have been deposited with the appropriate
authorities exept in cases where there is a dipute.The details of
dispute and the forum where such disputes are pending is given below:
Name of the Nature of Amount Forum where dispute
statute the dues (Rs.) is pending
Central Sales Tax Central sales 18,05,093 Appeal before sales
Maharashtra Sales tax tax authority
Tax
Income Tax Act Penalty Tax 60,47,659 Appeal before ITAT
Income Tax Act Income Tax 31,77,291 Appeal before ITAT
Central Sales Tax Central Sales 1,99,542 Company is in process
Act Tax of filing an appeal
against the order in
High Court
Maharashtra Sales Sales Tax 9,57,787 Company is in process
Tax of filing an appeal
against the order in
High Court
(viii) The accumulated losses at the end of the financial year are less
than fifty per cent of its net worth and it has not incurred cash
losses in the current financial year and in the immediately preceding
financial year;
(ix) The Company has not taken any loans from financial institution or
bank or debenture holders.
(x) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xi) The Company has not taken any Term Loans.
(xii) Based on the audit procedures performed and as per the
information and explanation given by the management we report that no
fraud on or by the company has been noticed or reported during the
year.
FOR BATLIBOI & PUROHIT
Chartered Accountants
ICAI Firm Regn. No. -101048W
Sd/-
Paresh Chokshi
Partner
Membership No. - 33597
Place: Mumbai
Date: 28th May, 2015
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