We have audited the accompanying Financial Statements of M/s. IVEE
INJECTA LIMITED (the Company), which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit & Loss and also the Cash Flow
Statement for the year ended and a summary of significant accounting
polices and other explanatory information.
Management''s Responsibility for the Financial Statements :
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the ''Act'') read 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. This responsibility includes
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.
Auditors'' Responsibility :
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 auditors'' 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 auditors
consider 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. 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
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Emphasis of Matter :
We draw attention to
a) The company has in past granted/ renewed loans and advances to other
Companies, which has been identified as non-performing asset.
Accordingly company has not recognized any income from the same. In the
opinion of the directors, the process of recovery is going on and the
same is not fully doubtful of recovery. However in our opinion company
needs to make provision for such long outstanding non-performing assets
amounting to Rs. 59,33,061/-. Due to non-provision in this regard the
debit balance of profit & loss account is under stated and the balance
of loans and advances is over stated by the said sum.
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying 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.
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March 2014.
ii) In the case of Statement of Profit & Loss, of the Loss 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.
Report on other Legal and Regulatory Requirements :
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the companies (Auditor''s Report) (amendment) order, 2004
issued by the Central Government of India, in terms of Section 227(4A)
of the Companies Act, 1956, we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said 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 accounts as required by law have
been kept by the Company so far as appears from our examination of
c) The Balance Sheet, Statement of Profit & 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 & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Companies Act, 1956 read 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 to the extent applicable.
e) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, none of the Directors of
the company are prima facie disqualified as on 31st March 2014 from
being appointed as Directors of the company in terms of clause (g) of
Section 274(1) of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT Referred to in Paragraph 1
under the heading of Report on other Legal and Regulatory
Requirements of our report of even date.
1. (a) According to the information and explanations given to us, the
Company has granted/taken unsecured loans to/from companies covered in
the Register maintained under Section 301 of the Companies Act, 1956;
(i) The Company has not granted any loan to any party covered in the
(ii) The Company has taken interest free loans from 2 parties covered
in the aforesaid Register. The amount involved (i.e. the maximum
amount outstanding during the year was Rs. 3.40 lacs). Rs. 3.40 lacs
were payable to these parties as at the close of the accounting year.
(b) According to the information and explanation given to us, terms and
conditions in respect of unsecured loans given/taken by the Company are
not prima-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the payment of principal amount is on demand.
(d) In our opinion and according to the information and explanation
given to us, there are no overdue amounts in respect of the
transactions listed in clause (a) above.
2. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, with regard to purchase of inventory, fixed assets and for
the sale of goods. During the course of audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
3. According to the information and explanations given to us, there
have been no contracts or arrangements that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
4. According to the information and explanation given to us, the
Company has not accepted any fixed deposits from the public during the
year and therefore, the question of compliance with the provisions of
Section 58A and 58AA of the Companies Act, 1956 and the companies
(Acceptance of Deposits) Rules,1975 is not necessary.
5. The company did not have any formal internal audit system during
the year under review. In the opinion of the Management, the existing
internal control procedures are adequate and hence separate internal
audit is not called for.
6. Maintenance of cost records has not been prescribed by the central
government under provision of Section 209(1)(d) of the Companies Act,
7. (a) The company is not regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, Service tax, sales-tax, wealth tax, custom duty, excise
duty, cess and any other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable except Rs. 1,377/- Purchase Tax, Rs.
51,254/- Gratuity. Rs. 36,880/- Leave Encasement, Rs. 29,942/- ESIC and
Rs. 1,080/- Professional Tax and no income-tax, sales-tax, Service tax,
wealth tax, custom duty, excise duty, cess were in arrears, as at 31st
March, 2014 for a period of more than six months from the date they
8. The Company has accumulated losses of Rs. 362.22 lacs at the end of
the year which is more than 50% of networth of the Company. Further,
the company has incurred cash loss of Rs. 5.35 lacs during the
financial year covered under audit and also incurred cash losses of Rs.
159.92 lacs during immediately preceding financial year.
9. In our opinion, and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders at the end of the
10. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities. Hence, maintenance of record is not applicable.
11. In our opinion, the company is not chit fund or nidhi mutual
12. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
13. In our opinion, and according to information and explanations
given to us, the Company has not given guarantee for loans taken by
others from banks or financial institutions.
14. Company has not availed any term loan during the year.
15. According to the information and explanation 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. No long-term funds have been used to finance short-term
assets except permanent working capital.
16. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Act.
17. According to the information and explanations given to us, the
Company has not issued any debenture.
18. Company has not raised any money by public issue during the year.
19. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the year
20. Clause (i) and (ii) of the aforesaid order is not applicable to
FOR SHAMIK J. DIVATIA & CO.
Firm Registration No. 109880W
(GNANESH S. DIVATIA)
Place : Ahmedabad PROPRIETOR
Date : 30/05/2014 M. No. 35498