We have audited the accompanying Financial Statements of MERCURY
LABORATORIES LIMITED (the Company) which comprise the Balance sheet
as at 31st March, 2015, the Statement of Profit & Loss, the 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 stated
in Section 134(5) of the Companies Act, 2015 (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 Companies Act, 2013 read with Rule 7
of the Companies (Account) Rules, 2014. This responsibility also
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; and design,
implementation and maintenance of adequate internal financial controls,
that were 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 the design, implementation and
maintenance of internal control 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
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 the 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 the 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 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 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 Profit 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.
We draw the attention to Note 19 of the Financial Statements which
discloses the effect of non provision of bad debts for trade
receivables unsecured and considered doubtful.
Our opinion is not modified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2015 (the
order) issued by the Central Government in terms of section 143 (11)
of the Companies Act, 2013, we enclose in the Annexure, a statement on
the matters specified in paragraph 3 & 4 of the said Order.
2. 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 the law have
been kept by the Company, so far as appears from our examination of the
c) The Balance Sheet, Statement of Statement of Profit & Loss and Cash
Flow Statement dealt with by this report are in agreement with the
books of accounts of the Company;
d) In our opinion, the aforesaid Financial Statements comply with the
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 31st March, 2015, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2015 from being appointed as a director of the Company in terms of
Section 164(2) of the Act.
f) With respect to the other matters to be included in our 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) There are no long term contracts for which provision is required.
(ii) There has been no delay in transferring amounts required to be
transferred, to the Investor Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements section of our report of even date for the year ended 31st
March 2015 of Mercury Laboratories Limited)
(i) (a) The Company has maintained proper records showing full
particulars including Quantitative Details and situation of the Fixed
Assets for the last Ten years. As informed to us, the Company is in the
process of updating its old records.
(b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. As informed to us, no material
discrepancies were noticed on such verification.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
(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) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records have been properly dealt with in
the books of accounts.
(iii) The Company has not granted any loan, secured or unsecured, to
Companies, Firms or Other Parties covered in the register maintained
u/s. 189 of the Companies Act, 2013 during the year under report.
Consequently, no comments are necessary on Para (iii) (a) & (b) of CARO
(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 with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
(v) The Company has accepted deposits within the meaning of Section
2(31) of the Companies Act 2013 read with the Companies (Acceptance of
Deposits) Rules, 2014 and the due compliance to the directives issued
by the Reserve Bank of India and the provisions of Sections 73 to 76
have been duly complied. No order has been passed by Company Law
Tribunal or Reserve Bank of India or any court or any other tribunal.
(vi) We have broadly reviewed the cost records maintained by the
company for its products pursuant to the Companies (Cost Records and
Audit) Rules, 2014 prescribed by the Central Government for the
maintenance of cost records under Section 148(1) of the Companies Act,
2013 and we are of the opinion that prima facie the prescribed cost
records have been made and maintained. However, we have not made a
detailed examination of these records with a view to determine whether
they are accurate or complete.
(vii) (a) According to the records of the Company, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax and other material statutory dues applicable to it.
(b) According to the records of the company, there are no dues of Sales
Tax, Income Tax, Service Tax, Customs Duty, Wealth Tax, Excise Duty, or
Cess which have not been deposited on account of any dispute except the
Statute Nature of Dues Amount (Rs.)
Sales Tax GST on Assessment 89391.00
Services Tax Wrong Availment of Credit 11,47,688.00
Excise Non payment of Duty on 104,501.00
Excise Excise Duty on Physician 536,791.00
Statute Period Pending in which Forum
Sales Tax 1991 -92 Tribunal Appeals
Services Tax 2005-08 Commissioner Appeals
Excise 2011 -15 CESTAT, Ahmedabad
Excise 2008 -09 CESTAT, Ahmedabad
Excise 2005-06 CESTAT, Ahmedabad
(b) The amount required to be transferred to Investor Education and
Protection Fund in terms of Section 642 of the Companies Act, 1956 read
with sub-section (3) of Section 205C of the said Act and the Investor
Education and Protection Fund (Awareness and Protection of Investors)
Rules, 2001 has been duly transferred.
(i) The Company does not have any accumulated losses. The company has
not incurred any cash losses during the financial year covered by our
audit and the immediately preceding financial year.
(ii) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions or banks. The Company has not issued any debentures.
(iii) As per the information and explanations given to us, the Company
has given not given any guarantee for Loans taken by others from Banks
or Financial Institutions.
(iv) The Company has not raised any term loan during the year.
(v) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
For, Naresh & Co.
CA Anil Shah
Date : 31/07/2015 Partner
Place : Vadodara (M. R. N. 035309)