Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of
Southern Online Bio Technologies Ltd. (the Company), which comprise
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Consolidated Financial Statements
The Company''s Board of Directors is responsible lor the matters stated
in Section (134(5) of the Companies Act, 2013 (the act'') with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance
preparation 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 Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding 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; design,
implementation and maintenance of adequate internal financial controls,
that are 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.
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 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 operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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 statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
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 group as at
31st March 2015, its loss and its cash flows for the year ended on that
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 (the
Order) issued by the 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 further 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
purpose 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
c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
d) In our opinion, the aforesaid standalone financial statements comply
with the appicable Accounting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the Directors
as on March 31, 2015, and taken on record by the Board of Directors
none of the directors are disqualified as on March 31, 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 has disclosed the impact of pending litigations as at
31st March, 2015 on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
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 AUDITORS'' REPORT
Annexure referred to in paragraph 1 of Our Report of even date to the
members of Southern Online Bio Technologies Ltd on the accounts of the
company for the year ended 31s1 March, 2015 Under Report on other
Legal & Regulatory Requirements.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that;
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
(b) As explained to us, the fixed assets have been physically verified
by the management at regular intervals; as informed to us no material
discrepancies were noticed on such verification.
(c)The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a) The inventory including stocks with certain third parties, has
been physically verified by the management during the year. In respect
of inventory lying with third parties, these have subsequently been
confirmed by them. In our opinion the frequency of verification is
(b) In our opinion, the procedures of the 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.
(c) The Company Is maintaining proper records of Inventory and as
explained to us, no material discrepancies were noticed on physical
verification of stocks as compared to book records.
III. The Company has not grantecany loans, secured or unsecured to
Companies, Firms or other parlies covered in the register maintained
under section 189 of the Companies Act, 2013.
IV. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of fixed assets and for sale of services. Further on the basis
of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
V. The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the companies Act,2013.
VI. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
specified under sub section (1) of section 148 of the Act, and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
VII. a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing the undisputed statutory dues, including
Provident Fund, Employees'' State Insurance, Income-Tax, Service Tax,
Custom Duty, Excise Duty and other material statutory dues, as
applicable, with the appropriate authorities in India;
b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income-Tax, Service Tax, Custom Duty,
Excise Duly and other material statutory dues in arrears as at 31st
March 2015 for a period of more than 6 months from the date they became
c) According to the information and explanations given to us and based
on the records of the Company examined by us, there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and excise
Duty which have not been deposited on account of any disputes.
d) There are no amounts that are due to be transferred to the Investors
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 [1 of 1956] and rules made there
VIII. The Company has been registered for a period of more than 5
years. The accumulated losses of the Company as on March 31, 2015 are
more than 50% its net worth and the company has incurred cash losses in
this financial year and in the immediately preceding financial year.
IX. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions/banks. The Company has not issued any
X. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institutions.
XI. In our opinion and according to the information and explanations
given to us, Term Loans obtained by the Company were applied for the
purpose for which such loans were obtained.
XII. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For P Murali & Co.,
Firm Registration No: 07257S
Place: Hyderabad A Krishna Rao
Date : 27.05.2015 Partner
Membership no. 020065