We have audited the accompanying financial statements of INVICTA
MEDITEK LIMITED (the Company), which comprise the Balance Sheet as at
March 31, 2015, and 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 Financial Statements
The Company''s Board of Directors is responsible for the matters 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies ;making judgments and
estimate that are reasonable and prudent ; and design , implementation
and maintenance of internal financial control, that were operation
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 provision
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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting polices used and the reasonableness of the accounting
estimates made by 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
Basis of Qualified Opinion
Short term loans and advances includes an amount of Rs.
70,47,151/-(amount sanctioned during the year Rs.Nii) beind outstanding
of loans given to one the Director, without obtaining the prior
approval of Central Government as per Sec.295 of the erstwhile
Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis of Qualified Opinion Paragraph, the financial
statements give the information required by the Act in the manner so
required and give 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 March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Emphasis of Matter
Attention of the shareholders is drawn to Note No. 1 of Notes to
accounts which elaborate the ability of the company to continue as a
going concern. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
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
purpose of our audit.
b) In our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of those
books (and proper returns adequate for the purpose of our audit have
been received from the branches not visited by us.
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
d ) In our opinion, the aforesaid financial statement comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts ) Rules, 2014
e) The going concern matter described in sub-paragraph(b) under the
Emphasis of Matter paragraph above, in our Opinion, may have an adverse
effect on the functioning of the Company.
f) On the basis of written representation received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the director is disqualified as on 31 March, 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
Re: INVICTA MEDITEK LIMITED,
Referred to in paragraph 1 of our report of even date,
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) Fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such
(a) Physical verification of inventory has been conducted at reasonable
intervals by the management;
(b) The procedures 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) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(a) The company has not given any loan to any of its directors during
the year that has to be entered in the register maintained under
section 189 of Companies Act.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business, for the
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
v) The company has not accepted any deposits from public during the
year. Hence the provisions of section 73 to 76 or other relevant
provisions of the Companies Act, 2013 are not applicable.
vi) The Central Government has not prescribed maintenance of cost
records under section 148(1) of the Companies Act, 2013.
vii) The company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income-Tax, Sales- Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, cess and any other statutory dues with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable were in arrears, for a
period more than six months from the date they become payable. The
Employees'' State Insurance Act does not apply to the company.
viii) The company has accumulated losses more than 50% of its net worth
and has incurred cash loss of Rs.8,51,757/- during the year and
Rs.5,98,785/- during the preceding year.
ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders.
x) The Company has not given any guarantee for loans taken by others
from banks or financial institutions based on the record produced to
xi) The company has not taken any loans from the banks; hence this
clause is not applicable.
xii) 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 our audit.
For P.B. Vijayaraghavan & Co.
Firm Regn No. 004721S
Date:- 30.05.2015 -sd-
M No. 203774