Anus Laboratories Ltd Share Price Auditors Report
ANUS LABORATORIES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS REPORT
To
The Members
Anus Laboratories Limited
We have audited the attached Balance Sheet of ANUS LABORATORIES LIMITED as
at March 31, 2012, the Statement of Profit and Loss and also the 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.
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 responsible assurance about 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.
1. 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 to theextent
applicable.
2. Further to our comments in the Annexure referred to above, we report
that:
a. 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;
b. In our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Companies
Act, 1956 to the extent applicable.
e. On the basis of written representations received from the directors/
companies as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on March
31, 2012 from being appointed as a director in terms of clause (g) of sub-
section (1) of Section 274 of the Companies Act, 1956.
f. Attention is invited to Note 2.10 of Notes forming part of the financial
statements relating to the liability of interest and required disclosures
under the Micro, Small and Medium Enterprises Development Act, 2006. The
Company is in the process of compiling information regarding measurement
and disclosures prescribed under the Act. In view of the above, we are
unable to comment on the impact of the same on the accounts.
g. In our opinion and to the best of our information and according to the
explanation given to us, the said accounts 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:
i. in the case of the Balance Sheet, of the state of affairs of the Company
as at March 31, 2012;
ii. in the case of the Statement of Profit and Loss, of the profit for the
year ended on that date; and
iii. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date
For Karumanchi Associates
Chartered Accountants
Firm Regd. No. 001753S
K. Peddabbai
Partner
Membership No. 25036
Place: Hyderabad
Date : May 29, 2012
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 of our Report of even date)
i. a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management in
accordance with regular programme of verification which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
assets. The discrepancies noticed on such verification were not material
and have been properly dealt with in the books of account.
c. Fixed assets disposed off during the year were not substantial.
According to the information and explanations given to us, we are of the
opinion that the disposal of fixed assets has not affected the going
concern status of the Company.
ii. a. The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
b. The procedure of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c. In our opinion and according to the information and explanation given to
us, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between physical stocks and the book
records were not material and have been properly dealt with in the books of
account.
iii. The Company has not granted or taken loans, secured or unsecured to/
from companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, sub-clause (b),
(c), (d), (f) & (g) are not applicable.
iv. In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchases of
inventory and fixed assets and for the sale of goods and services. During
the course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas.
v. a. As per information and explanation and on basis of records maintained
by the Company we are of the opinion that particulars of contracts or
arrangements referred to in Section 301 of the Act have been entered in the
register required to be maintained under that section.
b. In our opinion and according to the information and explanation given to
us, the transactions made in pursuance of contracts or arrangements entered
in the registers maintained under Section 301 of the Companies Act, 1956
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given
to us, the Company has not accepted deposits from the public during the
year. Therefore, the provisions of Clause 4(vii) of the Order are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
viii. We have broadly reviewed the books of account relating to materials,
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 prima facie the prescribed accounts and records have been made
and maintained.
ix. a. According to the records of the Company, provident fund, employees
state insurance, income tax, sales tax, professional tax and TDS dues
applicable to it have not been deposited during the year with the
appropriate authorities. According to the information and explanation given
to us, the above said undisputed amounts payable were in arrears as at
March 31, 2012 of Rs.88.25 million for a period of more than six months
from the date on which they became payable. Details are as under:
Rs. Million
Particulars Amount as on
March 31, 2012
Provident Fund 10.64
ESI 1.56
Income Tax 55.36
Sales Tax 10.64
TDS 9.50
Professional Tax 0.55
TOTAL 88.25
b. According to the information and explanations given to us, the details
of dues of sales tax which have not been deposited on account of any
dispute are given below:
Nature Nature of Amount Period to Forum
of due the statute Rs. Million which where
amount dispute is
relates pending
Sales Tax Sales Tax Act 0.68 F.Y. 2003-04 Sales Tax
Appellate
Tribunal
Sales Tax Sales Tax Act 1.83 F.Y. 2004-05 Sales Tax
Appellate
Tribunal
Sales Tax Sales Tax Act 2.21 F.Y. 2005-06 Sales Tax
Appellate
Tribunal
x. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial year
covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanation given
to us, the Company has defaulted in repayment of dues to a financial
institution or bank and details are as below:
Rs. Million
Particulars Amount as on
March 31, 2012
Development Credit Bank Limited 8.56
ING Vysya Bank Limited 6.14
Andhra Pradesh State Financial
Corporation 21.76
IFCI Venture Capital Funds Ltd 34.12
TOTAL 70.58
xii. Based on our examination of the records and the information and
explanations given to us, 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. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the Company.
xiv. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the provisions
of clause 4 (xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
xv. According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
xvi. In our opinion and according to the information and explanations given
to us, the term loans have been applied for the purpose for which they were
raised.
xvii. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that no
funds raised on short term basis have been used for long term investment.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section 301
of the Companies Act, 1956.
xix. In respect of the end-use of money raised by public issue as disclosed
in the Notes to the financial statements, in our opinion and based on the
explanations given to us and certified by the management, the Company has
utilized the total funds for the project implementation, subject to change
in utilization of funds in respect of pilot plant to the extent of Rs.50.82
million, which have been utilized for new plant.
xx. According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the course of
ouraudit.
For Karumanchi Associates
Chartered Accountants
Firm Regd. No. 001753S
K. Peddabbai
Partner
Membership No. 25036
Place: Hyderabad
Date : May 29, 2012