We have audited the accompanying financial statements of INNOCORP
LIMITED (the Company), which comprises the Balance Sheet as at March
31,2014, and the Statement of Profit and Loss and Cash flow statement
for the year ended, and summary of significant accounting policies and
other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for 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
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 (the Act)which shall continue to apply in
respect of section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated September15/2013 issued by the Ministry of
Corporate Affairs.. This responsibility includes the design,
implementation and maintenance of internal controls 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
In our opinion and to the best of our information and according to the
explanations given to us, the 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
(a) In the case of Balance Sheet, of the state affairs of the Company
as at March 31,2014
(b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) In the case of Cash Flow statement, the cash flows for the year
ended on that date
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 purpose of our
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 cash flow
statement dealt with by this report are in agreement with the books of
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting standards referred
to in sub-section (3c) of section 211 of the Companies Act, 1956read
with the General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e. On the basis of the written representations received from the
Directors, taken on record by the Board of Directors, none of the
directors is disqualiued as at March 31,2014 from being appointed as a
director in terms of Section 274(1)(g) of the Act.
f. Since the central Government has not issued any notification as to
the rate at which cess is to be paid under section 441A of companies
act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
Annexure to the Auditors'' Report (referred to in paragraph 1 of our
Report of even date to the Members of INNOCORPLIMITED for the year
ended March 31,2014)
On the basis of such checks as we considered appropriate and according
to the information and explanation 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) The fixed assets of the company have been physically verified by
the Management during the year and no material discrepancies have been
noticed on such verification.
In our opinion, the frequency of verification is reasonable.
(c) In our opinion, and according to the information and explanation
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) (a) As explained to us, inventories have been physically verified
by the Management at regular intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventories as compared to book records.
(iii) (a) According to the information and explanations given to us,
the company didn''t grant any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Therefore, requirements of clauses
(iii-b),(iii-c), (iii-d),of paragraph 4 of the order are not
(e) According to the information and explanations given to us, the
company had not taken any loans from parties covered in the register
maintained under section 301 of the companies Act, 1956. Therefore,
requirements of clauses (iii-f), (iii-g) of paragraph 4 of the order
are not applicable.
(iv) On the basis of checks carried out during the course of the audit
and as per the explanations given to us, we are of the opinion that
there are adequate internal control systems commensurate with the size
of the company and the nature of its business, with regard to nature of
business and payment of expenses. During the course of audit no major
weaknesses in the internal controls are noticed.
(v) According to the information and explanations given to us, we are
of the opinion that the transactions which are required to be entered
in the register maintained under section 301 of the Companies Act. 1956
have been so entered.
(vi) In our opinion and according to the explanations given to us, the
company has not accepted any deposits within the meaning of Sections
58A and 58AA of the Companies Act and Companies (Acceptance of
Deposits) Rules, 1975.
(vii) As per information and explanations given by the management, the
company hasaninternal audit system commensurate with its size and
nature of its business.
(viii) We have reviewed the books of account maintained by the Company
pursuant to the rules prescribed by the Central Government of India for
the maintenance of cost records under Section 209(1)(d) of the Act, and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records.
(ix) (a) According to the records of the company, the company is
regular in depositing undisputed statutory dues including income-tax,
Provident fund, Employee state insurance, cess and other statutory dues
applicable to the company with the appropriate authorities.
(b) According to the information and explanation given to us, there are
no dues of income-tax, wealth- tax, sales-tax and cess which have not
been deposited on account of any dispute.
(x) The company has accumulated losses at the end of the financial year
and its accumulated losses are not less than fifty percent of its net
worth and the company has not incurred any cash losses during the
current financial year covered by our audit and also in the immediately
preceding financial year.
(xi) According to the records of the company and as per the
explanations given to us the company has not defaulted in repayment of
dues to financial institutions and banks. There are no debentures
outstanding in the books of at any time during the year.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the company.
(xiv) According to the information given to us, the company is not
dealing in or trading in shares, securities, debentures and other
instruments, accordingly the provisions of clause 4 (xiv) of the order
is not applicable.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) On the basis of verification and according to the information and
explanations given to us, term loans obtained from bank were applied
for the purpose for which the loans were obtained.
(xvii) According to the information and explanation given to us, and on
an overall examination of the balance sheet, we report that no funds
raised on short term basis have been used for Long term investment by
(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 Act during the year.
(xix) The company has not issued any debentures during the year.
Accordingly, no securities have been created.
(xx) The company has not raised any money by public issue during the
(xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
For Ramasamy Koteswara Rao & Co,
Firm Regn. No. : 010396S
(C V Koteswara Rao)
Place : Hyderabad Partner
Date : 30-05-2014 Membership No. : 028353