veronica laboratories ltd Auditors report

VERONICA LABORATORIES LIMITED ANNUAL REPORT 2003-2004 AUDITORS REPORT To The Members of VERONICA LABORATORIES LIMITED 1. We have audited the attached Balance Sheet of VERONICA LABORATORIES LIMITED, as at March 31, 2004 and also the Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance above whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Sub-section(4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to above, we report that: i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; ii. In our opinion, proper books of account as required by law have been kept by the Company so tar as appears from our examination of those books; iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable accounting standards referred to in Sub-section(3C) of Section 211 of the Companies Act, 1956; v. On the basis of written representations received from the Directors, as on 31st March, 2004 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2004 from being appointed as a Director in terms of clause (g) of Sub-section(1) of Section 274 of the Companies Act, 1956; vi. In our opinion and to the best of our information and according to the explanations given to us, the said account give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2004; b. In the case of the Profit and Loss Account, of the Profit for the year ended on that date; and c. In the case of Cash Flow Statement, of the cash flows for the year ended on that date. Place: Navi Mumbai For KAMLESH B. MEHTA AND CO. Date : 30th July 2004 Chartered Accountants Kamlesh B. Mehta Partner ANNEXURE TO THE AUDITORS REPORT Referred to in Paragraph 3 of our Report of even date. I. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The management during the year has physically verified all the major assets. We are informed that no material discrepancies were noticed on such verification. No substantial parts of fixed assets have been disposed off during the year. II. The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory. The discrepancy noticed on verification between the physical stocks and the book records were not material. III. The Company has not granted/ taken any loans, secured or unsecured to/ from companies, firm or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, requirements of clauses (iii, b), (iii, c) and (iii, d) of paragraph 4 of the order are not applicable. IV. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regards to purchases of inventory, fixed assets and with regards to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls. V. According to the information and explanation given to us, we are of the opinion that no transactions need to be entered into the register maintained under Section 301 of the Act. Consequently. requirement of clause (v, b) of paragraph 4 of the order is not applicable. VI. The Company has not accepted any deposits from public, so the provision of Section 58A and 58AA of the Companies Act, 1956 is not applicable. VII. The Company has no Internal Audit system. However the has been informed to set up an Internal Audit System. VIII. We have broadly reviewed the books of accounts relating to material, labour and other items of cost maintained by the company pursuant to the Rules made by the Central government for the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 and we are of the opinion that prime facie the prescribed accounts and records have been made and maintained. We have not however made a detailed examination of these records with a view to determine whether they are accurate and complete. IX. The Company is not regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund. Insurance, Income tax, Sales tax, Wealth-tax, Customs Duty, Excise Duty, cess and other material statutory dues applicable to it. The Company has no disputed amount payable. X. The Company has neither accumulated losses nor has incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year. XI. The Company has defaulted in Repayment of Loan to Banks and the case is pending with DRT. XII. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. XIII. The company is not chit find or a nidhi/mutual benefit fund/society. Therefore, the provisions of Clause 4(iii) of paragraph 4 of the order are not applicable. XIV. The Company is not dealing in or trading in shares. securities, debenture and other investments. Therefore, the provisions of clause 4(xiv) of paragraph 4 of the order are not applicable. XV. In our opinion, the terms and conditions on which the Company has not given guarantees for loan taken by other front financial institutions is not prejudicial to the interest of the Company. XVI. In our opinion. the Company has not taken any term loans. XVII. According to the Cash Flow statement and other records examined by us and the information and explanations given to us. Oil an overall basis. funds raised on short term basis have not, prima facie. been used during the year for long-terms investments and vice versa. XVIII. According to the information and explanation Given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. XIX. According to the information and explanations given to us, the Company had not issued any Secured Debentures during the year. XX. The Company has not raised any money by public issue during the year. XXI. According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the year. Place: Navi Mumbai For KAMLESH B. MEHTA AND CO. Date : 30th July 2004 Chartered Accountants Kamlesh B. Mehta Partner