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26th Annual Report 2011-2012

Dear Shareholders,

Sub : Green Initiative

As already communicated to you ,The ministry of Corporate Affairs has taken a “Green Initiative in corporate governance allowing paperless compliances by Companies through electronic mode and has issued circular on 21.04.11 and 29.04.11 stating that Companies can now send various notices and documents , including Annual Reports, to its shareholders through electronic mode to the registered e-mail addresses of shareholders”.

Your company propose to send future communication/documents including Notice of Annual General Meeting and Annual report of the company in electronic form through email.

Members who are holding Equity shares in demat mode are requested to register their e-mail ID with their Depository Participant Immediately, if already not registered.

Members who are holding Equity Shares in Physical form should send a scanned copy of their letter requesting for registering/changing their existing email ID, bearing the signature of the sole /first shareholder on “investor@bigshareonline.com”  (These members are also requested to convert their physical holding to demat).

	OR

Such members holding Equity shares in physical form can also write to the Registrar and share Transfer Agent of the company at their following address and inform their email ID quoting their folio number. The letter should be signed by sole /first holder as per the specimen signature recorded with the registrar and share Transfer Agent.

M/s. Bigshare Services Pvt. Ltd.,
E-2/3, Ansa Industrial Estate,
Sakivihar Road, Saki Naka,
Andheri (E), Mumbai – 400072.

We seek your support to enable the Company to not only reduce paper consumption but also related costs. As a shareholder, this is your opportunity to support this initiative of the Government and contribute towards a Greener Environment.

Please note the as member of the Company, you will be entitled to be furnished free of cost with a copy of such communication/document upon receipt of a requisition from you, at anytime.

Thanking You,

For COLINZ LABORsATORIES LTD.

DIRECTOR

 

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26th Annual Report

BOARD OF DIRECTORS	DR. L. S. MANI, Chairman & Managing Director.
	SHRI. N. K. MENON, Whole-Time Director
	SHRI. VASANT K. BHAT,  Director
	SHRI. KRISHNA KUMAR ATTRASSARY, Director
AUDITORS	S. V. BHAT & CO.
	Chartered Accountants.
BANKERS	BANK OF BARODA.
REGISTERED OFFICE	A-101, PRATIK IND. ESTATE, MULUND-GOREGAON LINK ROAD,
	NEXT TO FORTIS  HOSPITAL, MUMBAI - 400 078.
EMAIL ID	cllfindoc@yahoo.com, info@findoc-cll.in
WEBSITE	www.findoc-cll.in
WORKS	PLOT NO. 60, ‘STICE’,  MUSALGAON, SINNAR-SHIRDI ROAD, SINNAR,
	NASIK - 422 103.
CONTENTS	NOTICE
	DIRECTOR’S REPORT
	MANAGEMENT DISCUSSION & ANALYSIS
	REPORT ON CORPORATE GOVERNANCE
	AUDITOR’S REPORT
	BALANCE SHEET
	PROFIT AND LOSS ACCOUNT
	NOTES FORMING PART OF THE FINANCIAL STATEMENTS
	CASH FLOW STATEMENTS
	PROXY FORM AND ATTENDANCE SLIP

 

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NOTICE

Notice is hereby given that the 26th Annual General Meeting of the Company will be held at the Registered Office of the Company, i.e. A-101, Pratik Ind. Estate, Mulund-Goregaon Link Road,  Mumbai - 400 078, on Saturday, 29th September, 2012, at 12.30 P. M. to transact the following business:

ORDINARY BUSINESS:-

1. To receive, consider and adopt the audited Balance Sheet as at 31st March, 2012, the Profit and Loss Account for the year ended on that date, together with Director’s Report and also the Auditor’s Report thereon.

2. To appoint Director in place of Mr. A. Krishnakumar  who retires by rotation and being eligible offers himself for re-appointment.

3. To appoint Auditors to hold office from conclusion of this Annual General Meeting till the conclusion of next Annual General Meeting and to authorise the Board of Directors to fix their remuneration.

		For Colinz Laboratories Limited.
Regd. Office:		Dr.  L. S. Mani
A-101, Pratik Ind. Estate		Chairman & Managing Director
Mulund-Goregaon Link Road, Mumbai – 400 078.
Date:30th May, 2012

 

NOTES :

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY OR PROXIES TO ATTEND AND VOTE INSTEAD OF HIMSELF AND PROXY NEED NOT BE A MEMBER. AN INSTRUMENT APPOINTING THE PROXY SHOULD BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE TIME OF HOLDING THE MEETING.

2. The Register of Members and Share Transfer Books of the Company will remain closed from, 22nd  September, 2012 to 29th  September, 2012. (both days inclusive)

3. Members are requested to notify immediately any change in their address to the Registrar and Transfer Agent of the Company, M/s. Bigshare Services Pvt. Ltd., E-2/3, Ansa Industrial Estate, Sakivihar Road, Saki Naka, Andheri (E), Mumbai-400072

4. Members intending to require any information about accounts to be explained in the meeting are requested to inform the Company in writing at least Ten days in advance of the date of Annual General Meeting

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DIRECTORS’ REPORT 2011-2012

To
The Shareholders,

Your Directors have the pleasure in presenting their 26th Annual Report and audited Accounts of your Company, for the year ended 31st March, 2012.

FINANCIAL RESULTS :

	2011-2012 (Rs. in Lacs)	2010-2011 (Rs. in Lacs)
Earnings before Interest, Depreciation & Tax (EBITDA)	53.70	49.23
Less:  Bank Charges and Interest	18.93	15.61
Depreciation	25.99	25.77
Profit before Taxation	8.78	7.85
Less/ (Add):  Provision for Current Tax	1.58	1.34
Provision for Deferred Tax	(3.84)	(0.78)
Profit after Taxation	11.04	7.29

 

OPERATIONS :

During the year under review, the total revenues of the company stood at Rs.708 lacs compared to 606 lacs.

The earnings before Interest, Depreciation and tax , increased to 53.70 lacs during the year under review compared to Rs. 49.23 in the previous year. The profit before tax was Rs. 8.78 Lacs , the net profit after providing for Income Tax and Differed Tax ( Credit) was Rs. 11.04 Lacs . Net profit would have been higher except for increase in the staff cost particularly incurred to retain the productive field staff and cost of borrowing by way of  interest to bank.

DIVIDEND :

Your Directors are unable to recommend any dividend during the year under review, considering the small surplus available and with a view to conserve funds towards margin monies.

LISTING OF SHARES:

The shares of your Company are listed in Stock Exchange, Mumbai. Annual Listing Fees for the year 2012-13 has been paid on time.

PUBLIC DEPOSITS :

The Company has not invited / received any fixed deposits during the year.

DIRECTORS:

The Board consists of Executive and Non-Executive directors, including independent Directors, who have wide and varied experience in different disciplines of corporate functioning. In accordance with the provisions of Companies Act, 1956, and Article of Association of the Company, Shri. Krishnakumar A  retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment.

DIRECTORS’ RESPONSIBILITY STATEMENT:

In terms of provisions of Section 217[2AA] of the Companies Act, 1956, your Directors confirm that:

1. In the preparation of the annual accounts, the applicable accounting standards have been followed, along-with proper explanation relating to material departures, wherever applicable.

2. The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company, as at the end of the accounting year and of the profit of the company for that year;

3. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. The Directors have prepared the annual accounts on a going concern basis.

PERSONNEL:

During the year under review, relations between the Employees and the Management remained cordial.

Particulars of employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended from time to time are not applicable to your Company as there were no employees whose remuneration is in excess of limits prescribed.

CONSERVATION OF ENERGY:

Except for the consumption of Power (Electricity) the Company does not consume any other source of energy. Pharmaceutical company is not power intensive. Since it also involves multiple products, disclosure of consumption of power per unit of product is not meaningful.

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:

No imported technology is adapted by the Company.  Continuous developmental efforts  are made  by  our qualified and approved staff to formulate new products and innovation of existing products. Such efforts have benefited in improving the stability of our products and simplification of manufacturing procedures.

FOREIGN EXCHANGE:
During the year under review, Foreign exchange earned Rs.Nil,( Previous Year – Rs. NIL/-). Foreign exchange outgo was Rs. NIL, (Previous Year – NIL /-).

RESEARCH AND DEVELOPMENT:

Your Company has not incurred any expenditure on research and development other than the routine developmental work.

REPORT ON CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange, the following form part of this Annual Report:

1. Management Discussion and Analysis.

2. Report on Corporate Governance.

3. Auditor’s Certificate regarding compliance of conditions of Corporate Governance.

OTHER MATTERS:

Your Company is not a polluting industry and the requirements of Pollution Control Board, if any, are met with.

AUDITORS:

M/s. S. V. Bhat & Co., Chartered Accountants, retire as auditors of the Company at the conclusion of the 26th Annual General Meeting and are eligible for reappointment.

ACKNOWLEDGEMENT:

Your Directors would like to acknowledge the co-operation they received during the year under review from Bankers, Distributors as well as from various Government Departments and also the investing public. We would also like to place on record our profound admiration and sincere appreciation of the hard work put in by the members of the staff and workmen. We are grateful to you, for the confidence and faith you have reposed in us.

		For and on behalf of the Board.
		Dr.  L. S. Mani
		Chairman & Managing Director
Mumbai, 30th May, 2012

 

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MANAGEMENT DISCUSSION AND ANALYSIS :

This Report includes Management Discussion and Analysis as appropriate, so that duplication and overlap between Directors Report and Management Discussion and Analysis is avoided.  The entire material is thus provided in a composite and comprehensive document.

COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE:

The Company follows fair, ethical and transparent governance practice by adopting high standard of professionalism, honesty, integrity and ethical behavior. The Company has a well defined set of guidelines for its internal governance based on business ethics, Legal Compliance and professional conduct. The Company also has an adequate internal control system.

The Company has complied with the provisions of clause 49 of the Listing Agreement with the Bombay Stock Exchange which deals with the compliance of Corporate Governance requirement.

A) THE PHARMACEUTICAL BUSINESS:

Colinz Laboratories Ltd. is engaged in the manufacturing and marketing of pharmaceutical formulations particularly in gynaecological sector. The Indian pharmaceutical market is highly competitive and also still fragmented with over 20,000 players comprising of foreign multinationals, Indian multinationals, mid-size and small scale companies.   Your Company falls under the SME sector.  However, Colinz has established reputation as a quality supplier of medicines in the domestic market, wherever the company has operation.  

B) OPPORTUNITIES, THREATS AND CONCERNS:

The Company’s products are enjoying a good Brand image, particularly among gynaecologists. The Company has a potential to grow in future considering the fact that it is yet to open up its marketing operations in many states of the country, However, due to paucity of working capital, the company is unable to expand its marketing activities, to unrepresented areas.

The Company is a Revised Schedule ‘M’ complied unit, as per the requirement of D & C Act.

Your company, no doubt is focusing on those off patented products, and these products will have extended shelf life in the market, due to lesser discoveries of new molecules, considering the investment to be made and time and expenditure involved in developing such new molecules. However, the takeover of bigger Indian Pharma Companies by foreign MNC’s , is a serious cause of concern to the national sector of pharma industry, particularly to SME’s.

C) OUT LOOK:

Barring unforeseen deterrents and the issues outlined above, the Company does not foresee any major threats in its survival and moderate growth. However, the margins are likely to be under heavy pressure due to high inflation prevailing in the country resulting in increase in all inputs / costs.

D) FINANCE:

The financial management and cash flow have been satisfactory, during the year under review.

E) INTERNAL CONTROLS:

The Company has proper and adequate internal control system, in respect of efficiency of operations, financial reporting and compliance with applicable laws and regulations etc. There are adequate controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal and that all transactions are authorized, recorded and reported correctly.

F) HUMAN RESOURCES:

Human resources are highly valued asset for any industry particularly in pharmaceutical selling. Therefore the Company seeks to attract and retain technical and marketing staff. The Company also recognizes the importance of human assets and ensures that proper encouragement is extended to the employees to motivate them. The total number of employees as on 31-03-2012 was 130. The Company enjoyed excellent relationship with its employees during the year under review.

G) CAUTIONARY STATEMENT:

The above Management Discussion and Analysis section may be forward looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors’ envisage in terms of the future performance and outlook.

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CORPORATE GOVERNANCE:

1) PHILOSOPHY:

Colinz Laboratories Ltd., has always strived to attain highest levels of transparency and accountability in all its operation and in its interactions with Shareholders, Government depts. creditors etc. Hence the Company has taken all appropriate steps to comply with the provisions of the prescribed Corporate Governance Code within the stipulated time.

2) BOARD OF DIRECTORS:

   (a) Composition, Category of Directors and their other directorships as on 31-03-2012:

Name of the Directors	Category of Directorship	No. of Directorships in the public company
Dr. L. S. Mani	Chairman & Managing Director	None
	(Executive, Promoter)
Shri. N. K. Menon	Whole-Time Director (Executive)	None
Shri. Vasant K. Bhat	Non-Executive, Independent	None
Shri. A. Krishna Kumar	Non-Executive, Independent	None

 

(b) Number of Board Meetings: During the year ended 31-03-2012, 6 Board Meetings were     
held on 22-05-2011, 31-05-2011, 30-07-2011, 31-10-2011, 31-01-2012, 31-03-2012

(c) Directors’ attendance record:

Name of the Director	Board Meetings attended during the year	Whether attended last AGM
Dr. L. S. Mani	6	Yes
Shri. N. K. Menon	6	Yes
Shri. Vasant K. Bhat	6	Yes
Shri. A. Krishna Kumar	6	Yes

 

3) COMMITTEES OF THE BOARD :

(a) Audit Committee

  i) Terms of Reference :
Apart from all the matters provided in clause 49 of the listing agreement and Sec. 292-A of the Companies Act, 1956 the Audit Committee holds discussions with the Statutory Auditors of the Company concerning the accounts of the Company, internal control systems, scope of audit and observations of the Auditors. It also reviews major accounting policies followed by the Company.

  ii) Composition.
The Composition of the Audit Committee is as follows :

Name	Designation	Category of Directorship	Committee Meetings Attended
Shri. Vasant K. Bhat	Chairman	Non-Executive, Independent	6
Shri. A.Krishnakumar	Member	Non-Executive, Independent	6
Dr. L. S. Mani	Member	Executive, Promoter	6

 

(b) Remuneration Committee and Policy :

The non-mandatory requirement of setting up of a remuneration committee for remuneration of executive directors has not been adopted considering the nature and the size of the Company. The Board of Directors determines the remuneration payable to the Executive Directors  taking into account their qualifications, experience, expertise and contribution.
The details of the remuneration  paid to the Executive Directors for the year ended 31-03-2012 are as follows.

Name	Salary
Dr. L. S. Mani	Rs. 8,40,500/-
Shri. N. K. Menon	Rs. 7,50,500/-

 

The Company pays sitting fees of Rs. 5,000/- per meeting to Non-Executive Directors.

(c) Investors Grievance Committee :

The Board has constituted an Investors Grievance Committee which looks into shareholders and investors grievances.

Following are the members of the Committee :

Name	Designation	Category of Directorship
Shri. Vasant K.Bhat	Chairman	Non-Executive, Independent
Dr. L. S. Mani	Member	Executive, Promoter

 

Compliance Officer : Shri. Vasant K. Bhat.

• Number of complaints received from the shareholders during the year – Nil

• Number of complaints redressed during the year –  Nil

• Number of complaints unsolved as on 31.03.2012 - Nil

4. SHAREHOLDERS :

(a) Means of  Communication :

The quarterly, half yearly and annual audited financial results of the Company are sent to the stock exchanges immediately after they are approved by the Board. The results are published in accordance with the guidelines of the Stock Exchange.

(b) Share Transfers :

As per SEBI circular D & CC/FITTC/CIR-15/2002 dated 27-12-2002 the Company should have a common agency for share registry work. Accordingly, the Company has appointed  M/s. Bigshare Services Pvt. Ltd., E-2/3, Ansa Industrial Estate, Sakivihar Road, Saki Naka, Andheri (E), Mumbai - 400072, as Common Agency for share registry work.

(c) General Body Meetings :

Details of the last 3 Annual General Meetings are as under.

Financial Year	Date	Time	Venue
2010-11	30-09-2011	12.30 PM	A-101, Pratik Ind. Estate, Mulund-Goregaon Link Road, Bhandup (W), Mumbai – 400 078.
2009-10	30-09-2010	12.30 PM	A-101, Pratik Ind. Estate, Mulund-Goregaon Link Road, Bhandup (W), Mumbai – 400 078.
2008-09	29-09-2009	12.30 PM	A-101, Pratik Ind. Estate, Mulund-Goregaon Link Road, Bhandup (W), Mumbai – 400 078.

 

(d) Postal Ballot :

For the year ended 31-03-2012, there have been no ordinary or special resolutions passed by the Company’s Shareholders through postal ballot.

(e) Details of Directors seeking appointment / re-appointment in 26th  Annual General Meeting :

(In pursuance of Clause 49 of the Listing Agreement)

Name of the Director	Shri. Krishnakumar A
Date of Birth	27.08.1959
Qualifications	BA, DMM
Date of Appointment	31.01.2009
Expertise in specific functional areas	HRD and Training
List of other companies in which Directorship held	None
Chairman/Member of the committees of the Board of Directors of other companies in which he/she is a Director.	None

 

Additional Shareholders information:

(a) Annual General Meeting
Date : 29th September, 2012.
Time : 12.30 P. M.
Venue :  A-101, Pratik Estate,  Mulund-Goregaon Link Road, Mumbai – 400 078.

(b) Financial Calender
Financial Year : 1st April to 31st March.
For the financial year 2012-13, the tentative dates for declaration of un-audited / audited results will be  as follows;

Quarter ending 30-06-2012                      Before 31st  July,2012.
Quarter ending 30-09-2012.                     Before 31st Oct, 2012.
Quarter ending 31-12-2012                      Before 31st Jan, 2013.
Quarter ending 31-03-2013 &                   
Audited results for the year 2012-13        Before 31st May, 2013.

(c) Book closure :
The Register of Members and Share Transfer Books of the Company shall remain closed from Saturday, 22nd September, 2012 to Saturday, 29th September, 2012 ( both days inclusive)

(d) Listing in stock exchanges and stock codes :
The shares of the Company are listed in The Stock Exchange, Mumbai.
Code of the Company is 531210
The ISIN number allotted to the Company for demat of shares are as under
NSDL             INE923C01011
CDSL             INE923C01011

(e)  Stock Data:
High/Low of Market Price of Company’s Equity shares traded in the Stock Exchange Mumbai during the financial year ended on 31-03-2012  was as follows:

Month	High	Low	Month	High	Low
April 2011	9.39	7.77	October 2011	4.17	3.59
May 2011	9.39	7.77	November 2011	3.62	3.19
June 2011	8.45	7.75	December 2011	3.65	3.05
July 2011	7.99	7.58	January 2012	4.59	3.62
August 2011	7.99	7.58	February 2012	5.83	4.25
September 2011	7.30	4.16	March 2012	6.42	6.12

 

(f)  Distribution of  Shareholding as on 31-03-2012.

Range (In Rs.)			Total Holders	% of Total Holders	Total Holding in Rs.	% of Total Capital
1	-	5000	1354	67.56	277070	6.06
5001	-	10000	240	11.98	204308	4.47
10001	-	20000	158	7.88	269288	5.89
20001	-	30000	132	6.59	385202	8.43
30001	-	40000	17	0.85	61784	1.35
40001	-	50000	8	0.40	38000	0.83
50001	-	100000	23	1.15	160826	3.52
100001	&	above	72	3.59	3174522	69.45
Total			2004	100.00	4571000	100.00

 

(g) Shares held in physical and dematerialised form :
As on 31-03-2012, 25.15% of the shares were held in dematerialsed form and the rest in physical form.

(h) Outstanding GDRs/ADRs/Warrants or any convertible instruments, conversion date and likely impact on equity : Not applicable.

(i) Plant Location :
Plot No. 60, STICE, Sinnar-Shirdi Road, Musalgaon, Sinnar, Dist. Nasik – 422 103.

(j) Share Transfer System :
The Company has appointed M/s. Bigshare Services Pvt. Ltd., E-2/3, Ansa Industrial Estate, Sakivihar Road, Saki Naka, Andheri (E), Mumbai – 400 072, as Registrar & Transfer Agents.
Tel : 022-28470652 /53
Fax : 022-28475207
Email : investor@bigshareonline.com

(k) Disclosures :
The Company has not entered into any transaction of material nature with the promoters, the Directors, their relatives etc. that may have any potential conflict with the interests of the Company.

The Company has complied with requirements of the stock exchange, SEBI and other statutory authorities on all matters related to capital markets during the last three years. There were no penalties imposed nor any strictures imposed on the Company by the Stock Exchange, SEBI or any other statutory authority relating to the above.

CEO’s Certification

The Board of Colinz Laboratories Ltd. has laid down a code of conduct for all the Board Members and the Senior Management. All the Board Members and the Senior Management personnel have affirmed compliance of the code.

		Dr.  L. S. Mani
		Chairman & Managing Director
Place: Mumbai.
Date: 30th May, 2012

 

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CERTIFICATE

To the Members of
COLINZ LABORATORIES LTD.

We have examined the compliance of the conditions of Corporate Governance by Colinz Laboratories Ltd., for the year ended on 31-03-2012, as stipulated in Clause 49 of the Listing Agreement of the said Company with the stock exchange.

The compliance of the conditions of the Corporate Governance is the responsibility of the management. Our examination has been limited to a review of the procedures and implementations thereof, adopted by the Company for ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, and the representations made by the Directors and the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

 

For S. V. Bhat & Co.
Chartered Accountants
FIRM REG.NO. -101298W

S. V. Bhat
Proprietor.

MEMBERSHIP No. - 37237

Mumbai, dated. 30th May, 2012

 

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AUDITORS’REPORT

TO THE SHAREHOLDERS OF M/S. COLINZ LABORATORIES LIMITED.

We have audited the attached Balance Sheet of M/s. Colinz Laboratories Limited as at 31st March, 2012, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

[1] As required by the Companies (Auditors’ Report) Order, 2003 as amended by 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 enclose in the annexure, a statement on the matters specified in paragraph 4 of the said Order.

[2] Further to our comments in the Annexure referred to in paragraph 1 above, we state 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 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 such books.

c] The Balance Sheet, Profit and Loss Account and Cash Flow Statement referred to in this report are in agreement with the Books of Accounts.

d] In our opinion and to the best of our information, Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards issued by the Institute of Chartered Accountants of India, referred to in Section 211 (3C) of the Companies Act, 1956.

e] On the basis of the written representation received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at 31st March, 2012 from being appointed as a Director in terms of Section 274(1) (g) of the Companies Act, 1956.

f] In our opinion and to the best of our information and according to the explanations given to us, the said accounts alongwith notes thereon, give the information required by the Companies Act, 1956, 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, 2012;

ii) in the case of  Profit and Loss Account, of the profit of the Company 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.

Date :15th  May, 2012		For S. V. BHAT & CO
Place : Mumbai.		FIRM REG. No.-101298W
		S. V. BHAT
		(   Proprietor  )
		MEMBERSHIP No. – 37237

 

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ANNEXURE

Re: COLINZ LABORATORIES LIMITED. (Referred to in paragraph 1 of our Report of even date)

1	(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) The fixed assets have been physically verified during the year by the management. According to the information and explanations given to us, no material discrepancies were noticed on verification. (c) There was no disposal of any fixed assets during the year.
2	(a) The inventory has been physically verified during the year by the Management. In our Opinion, the frequency of verification is reasonable. (b) The procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of the business. (c) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification of inventory.
3	The Company has not granted or taken any loans, secured or unsecured, to or from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provisions of sub-clause (b), (c), (d), (e), (f) and (g) of sub-para (iii) of para 4 of the order are not applicable.
4	In our opinion and according to the information and explanations 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 purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal controls
5	(a) The Particulars of contracts or arrangements referred to in section 301 of the Act, have been entered in the register maintained under that section. (b) The transaction made in pursuance of contracts or arrangements referred to in section 301 of the Act are, in our opinion, at prices which are reasonable having regard to the prevailing market prices at the relevant time.
6	In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.
7	In our opinion, the Company has an adequate internal audit system commensurate with the size and the nature of business.
8	The Central Government has not prescribed maintenance of Cost Records under Section 209 (1)(d) of the Companies Act, 1956.
9	(a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it. According to the information and explanations given to us, provisions of Employees State Insurance Act is not applicable to the Company. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31-03-2012 for a period of more than six months from the date they became payable. (c) According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.
10	The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.
11	In our opinion and according to the information and explanations given to us the company has not defaulted in repayment of dues to a financial institution or bank.
12	According to the information and explanations given to us and based on the documents and  records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13	In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor’s Report ) Order, 2003 are not applicable to the Company.
14	In respect of shares, securities or other investments dealt in or traded by the Company, proper records are maintained in respect of transactions and contracts and timely entries have been made therein. All the investments are held by the Company in its own name.
15	In our opinion and according to the information and explanations given to us, the Company has not given guarantee for loans taken by others from Bank or Financial Institutions
16	On the basis of the records examined by us and relying on the information compiled by the Company for co-relating the funds raised to the end use of term loans, we have to state that, the Company has, prima-facie, applied the term loans for the purposes for which they were obtained.
17	According to the information and explanations 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 investments by the Company.
18	The Company has not made preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 and therefore the question of the price at which shares have been issued is prejudicial to the interest of the Company does not arise.
19	The Company has not issued debentures and therefore the question of creation of security in respect of debentures does not arise.
20	The Company has not raised monies by public issues during the year and therefore the question of disclosure and verification of end use of such monies does not arise.
21	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.

 

Date :15th   May, 2012		For S. V. BHAT & CO
Place : Mumbai.		Chartered Accountants
		FIRM REG. No.-101298W
		S. V. BHAT
		(   Proprietor  )
		MEMBERSHIP No. – 37237

 

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Balance sheet & profit & loss and their schedule

COLINZ LABORATORIES LTD.

BALANCE SHEET AS AT MARCH 31, 2012

				All amounts in Rupees, unless otherwise stated
			Notes	As at	As at
				March 31, 2012	March 31, 2011
I	EQUITY AND LIABILITIES
1	Shareholders' Funds
		(a) Share Capital	1	35,435,000	35,435,000
		(b) Reserves & Surplus	2	26,350,510	24,846,260
2	Non Current Liabilities
		(a) Long Term Borrowings	3	23,917,851	28,466,461
		(b) Deferred Tax Liabilities		3,100,117	3,483,980
		(c) Other Long Term Liabilities		98,147	74,900
		(d) Long Term Provisions		-	-
3	Current Liabilities
		(a) Short Term Borrowings
		(b) Trade Payables	4	9,216,354	6,630,085
		(c) Other Current Liabilities	5	4,056,768	3,037,080
		(d) Short Term Provisions		-	-
		TOTAL		102,174,747	101,973,766
II	ASSETS
1	Non-Current Assets
		(a) Fixed Assets	6
		(i)   Tangible Fixed Assets		42,360,771	44,130,891
		(ii)  Intangible Assets		-	-
		(iii) Capital Work In Progress		-	-
		(iv) Intangible Assets under Development		-	-
		(b) Non-Current Investments	7	3,158,769	3,158,769
		(c) Deferred Tax Assets (Net)		-	-
		(d) Long Term Loans & Advances	8	13,763,150	13,959,150
		(e) Other Non-Current Assets	9	524,850	-
2	Current Assets
		(a) Current Investments		-	-
		(b) Inventories	10	21,333,064	19,027,723
		(c) Trade Receivables	11	10,842,820	9,232,287
		(d) Cash and Cash Equivalents	12	9,258,213	11,713,952
		(e) Short Term Loans and Advances	13	933,110	750,994
		(f) Other Current Assets		-	-
		TOTAL		102,174,747	101,973,766

 

As per our report of even date attached.
FOR  S. V. BHAT & CO.	FOR AND ON BEHALF OF THE BOARD.
FIRM REG.NO.101298W
Chartered Accountants.
S. V. BHAT	Dr.  L. S. Mani	N. K. MENON
Proprietor.	Chairman & Managing Director	Director
M. No. 37237 .
Place: Mumbai
Date:15th May, 2012.

 

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COLINZ LABORATORIES LTD.

STATEMENT OF PROFIT AND LOSS  FOR THE YEAR ENDED MARCH 31, 2012

			All amounts in Rupees, unless otherwise stated
			Year ended	Year ended
		NOTES	March 31, 2012	March 31, 2011
I	Revenue from Operations
	Sales -Products	14	70,454,561	60,336,549
	Other Operating Revenue		-	-
	Less : Excise duty		(4,435,470)	(3,312,887)
			66,019,091	57,023,662
II	Other Income	15	368,554	221,982
III	Total Revenue (I+II)		66,387,645	57,245,644
IV	Expenses
	Cost of Materials Consumed	16	24,417,414	21,033,670
	Purchase of Trading Goods		3,457,117	3,045,463
	Changes in inventories of finished goods work-in-progress and Stock-in-Trade	17	(1,095,212)	(2,310,950)
	Employee Benefits Expense	18	22,543,606	19,047,690
	Finance Cost	19	1,892,853	1,560,718
	Depreciation and amortization expense	6	2,599,467	2,577,525
	Other Expenses	20	11,693,676	11,506,788
	Total Expenses		65,508,921	56,460,904
V	Profit before exceptional and extraordinary items and tax (III-IV)		878,724	784,740
VI	Exceptional items		-	-
VII	Profit before extraordinary items and tax (V - VI)		878,724	784,740
VIII	Extraordinary Items		-	-
IX	Profit before tax (VII- VIII)		878,724	784,740
X	Tax expense:
	(1) Current tax		158,337	133,850
	(2) Deferred tax		(383,863)	(77,935)
XI	Profit (Loss) for the period from continuing operations (IX-X)		1,104,250	728,825
XII	Profit/(loss) from discontinuing operations		-	-
XIII	Tax expense of discontinuing operations		-	-
XIV	Profit/(loss) from Discontinuing operations (after tax) (XII-XIII)		-	-
XV	Profit (Loss) for the period (XI + XIV)		1,104,250	728,825
XVI	Earnings per equity share:
	(1) Basic		0.24	0.16
	(2) Diluted		-
Significant accounting policies and notes		21
to the financial statements

 

As per our report of even date attached.
FOR  S. V. BHAT & CO.	FOR AND ON BEHALF OF THE BOARD.
FIRM REG.NO.101298W
Chartered Accountants.
S. V. BHAT	Dr.  L. S. Mani	N. K. MENON
Proprietor.	Chairman & Managing Director	Director
M. No. 37237 .
Place: Mumbai
Date:15th May, 2012.

 

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COLINZ LABORATORIES LTD.

NOTES  FORMING PART OF THE FINANCIAL STATEMENTS

		All amounts in Rupees, unless otherwise stated
		As at		As at
		March 31, 2012		March 31, 2011
Notes 1 - Share Capital
a	Authorised:
	60,00,000 (Previous Year 60,00,000) Equity Shares of Rs.10 each	60,000,000		60,000,000
b	Issued, Subscribed and Paid-up:
	Issued:
	45,76,000 Equity shares of Rs. 10 each.
	Subscribed and paid-up:
	45,71,000 (Previous Year 45,71,000) Equity Shares of Rs.	35,435,000		35,435,000
	10 each fully/Partly  paid-up	35,435,000		35,435,000
c	Par Value per share is Rs. 10
d	Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period;
	Particulars	No.	Rs.	No.	Rs.
	Shares outstanding at the beginning of the year	3543500	35,435,000	3543500	35,435,000
	Shares Issued during the year	0	0	0	0
	Shares bought back during the year	0	0	0	0
	Any other movement (please specify)	0	0	0	0
	Shares outstanding at the end of the year	3543500	35,435,000	3543500	35,435,000
e	shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held
	Name of the shareholder	No. of shares	% of holding	No. of shares	% of holding
	L S Mani	705050	15.4244	705050	15.4244
	Vijaya Mani	386000	8.4445	208750	4.5668
f	For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:	Aggregate No. of Shares (for last 5 Financial Years)
	Particulars
	Fully paid up pursuant to contract(s) without payment being received in cash	Nil
	Fully paid up by way of bonus shares	Nil
	Shares bought back	Nil
g	Unpaid Calls	No. of shares	Rs.	No. of shares	Rs.
	By Directors	0	0	0	0
	By Officers	0	0	0	0
	By Others	2055000	10,275,000	2055000	10,275,000
Notes 2 - Reserves & Surplus
a.	Capital Reserves:
	State Special Capital Incentive Received	Rs.	Rs.	Rs.	Rs.
	Opening Balance	3,100,000		2,700,000
	(+) Current Year Transfer	400,000		400,000
	(-)  Written back in the current year	0		0
	Closing balance		3,500,000		3,100,000
b.	Share Premium Account
	Opening Balance	15,220,250		15,220,250
	(+) Current Year Transfer	0		0
	(-)  Written back in the current year	0		0
	Closing balance		15,220,250		15220250
c.	Profit & Loss Account
	Opening Balance	6,526,010		5,797,184
	(+) Current Year Transfer	1,104,250		728,826
	(-)  Transfer to Other Reserves	0		0
	Closing balance		7,630,260		6,526,010
	Total [a+b+c]		26,350,510		24,846,260

 

COLINZ LABORATORIES LTD.

NOTES  FORMING PART OF THE FINANCIAL STATEMENTS

		All amounts in Rupees, unless otherwise stated
		As at	Total As at
		March 31, 2012	March 31, 2011
Notes 3 - Long Term Borrowings
	Secured-From Banks
	Cash Credit Account with Bank of Baroda	8,794,822	11,591,998
	[Secured by Hypothecation of Stock in Trade/Book debts]
	Term loan from Bank of Baroda	-	1,394,146
	[Secured by hypothecation of plant and machinery at Sinnar
	factory]
	Car Loan from Axis Bank	712,898	97,502
	[Secured against hypothecation of car]
		9,507,720	13,083,646
	Unsecured Loans -Others
	Sales tax deferred (Interest free)	14,410,131	15,382,815
	[As per Package Scheme of Incentive of Maharashtra state
	government and includes VAT and CST]
		14,410,131	15,382,815
	Total	23,917,851	28,466,461
Notes 4- Trade Payables
	Sundry Creditors:
	a) Micro and small enterprises *	-	-
	b) Others	9,216,354	6,630,085
	* [Determined to the extent such particulars have been identified
	on the basis of information available with the Company. This has
	been relied upon by the auditors]
		9,216,354	6,630,085
Notes 5- Other Current Liabilities
	Statutory liabilities	875,131	743,958
	Other Liabilities	2,651,184	1,787,600
	Provisions	530,453	505,522
		4,056,768	3,037,080

 

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COLINZ LABORATORIES LTD.

NOTES FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2012

Notes 6 - Fixed Assets

DESCRIPTION	GROSS BLOCK				DEPRECIATION				NET BLOCK
	As at 1.4.2011	Additon in	Deduction	As at 31.3.2012	As at 1.04.2011	Depreciation	Deduction	Up to 31.3.2012	As at 31.3.2012	As at 31.3.2011
		2011-12				for the year
A. Tangible Assets
LAND	2574350	0	0	2574350	0	0	0	0	2574350	2574350
[Including Land Developing Exps]
BUILDING- Factory	24027330	0	0	24027330	6696310	802513	0	7498823	16528507	17331020
BUILDING-Office	6580717	0	0	6580717	813898	107266	0	921164	5659553	5766819
PLANT & MACHINERY	11187512	0	0	11187512	5189574	531407	0	5720981	5466531	5997938
LABORATORY EQUIPMENTS	1570542	0	0	1570542	695390	74601	0	769991	800551	875152
FACTORY EQUIPMENTS & TOOLS	3223653	0	0	3223653	1289687	153124	0	1442811	1780842	1933966
ELECTRICAL INSTALLATION	2377531	0	0	2377531	1152252	112722	0	1264974	1112557	1225279
CENTRAL A.C. PLANT	8176691	0	0	8176691	2198075	388393	0	2586468	5590223	5978616
OFFICE EQUIPMENTS	592660	0	0	592660	380715	28151	0	408866	183794	211945
COMPUTER	644888	0	0	644888	578776	14220	0	592996	51892	66112
FURNITURE & FIXTURE	3469439	0	0	3469439	2054191	219616	0	2273807	1195633	1415248
VEHICLES	1544416	996363	605322	1935457	789970	167454	438305	519119	1416338	754446
Total Tangible Assets	65969729	996363	605322	66360770	21838838	2599467	438305	24000000	42360771	44130891
B. Intangible Assets	0	0	0	0	0	0	0	0	0	0
TOTAL ASSETS	65969729	996363	605322	66360770	21838838	2599467	438305	24000000	42360771	44130891
PREVIOUS YEAR	65913844	55885	0	65969729	19261313	2577525	0	21838838	44130891	46652531

 

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COLINZ LABORATORIES LTD.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

				All amounts in Rupees, unless otherwise stated
				As at	Total As at
		Face Value	No. of shares	March 31, 2012	March 31, 2011
Notes 7- Non-Current Investments
(a)   Equity shares [fully paid, quoted]
	3i Infotech	10	600	30000	30000
	Hubtown Ltd.	10	12	6480	6480
	Ansal Properties & Infrastructure Ltd.	5	200	101,926	101,926
	Arvind Mills	10	500	60681	60681
	Bajaj Holdings & Investments Ltd.	10	50	73319	73319
	Bajaj Auto  Ltd.	10	100	28678	28678
	Bajaj Finserv Ltd.	5	50	27770	27770
	Bank of Baroda	10	500	118534	118534
	Bank of Maharashtra	10	300	6900	6900
	Bell Ceramics	10	333	21880	21880
	Bharat Forge Ltd.	2	30	3804	3804
	Bharti Shipyard Ltd.	10	200	64841	64841
	Cairn India Ltd	10	1015	162400	162400
	CESC Ltd	10	200	128627	128627
	Coal India Ltd	10	88	21560	21560
	Eveready Industries Ltd.	5	500	17645	17645
	GTL Infrastructure Ltd	10	213	4000	4000
	Gujarat Sidhee Cement Ltd	10	1000	24186	24186
	HFCL Ltd.	1	500	12192	12192
	HDFC  Ltd.	2	100	64762	64762
	HDIL	10	100	14505	14505
	Hindustan Organic Chemicals Ltd	10	1000	66283	66283
	Hindustan Oil Exploration Co Ltd	10	500	81322	81322
	IDBI Ltd	10	200	15717	15717
	IDFC Ltd	10	2000	164446	164446
	Idea Cellular Ltd	10	990	130834	130834
	IRB Infrastructure  ltd	10	100	16457	16457
	Jagran Prakashan Ltd	2	143	27967	27967
	Kausalya Infrastructure Ltd	10	176	10560	10560
	Kingfisher Airlines	10	200	10641	10641
	Lanco Infrastructure Ltd	1	3210	77040	77040
	Macleod Russels Ltd	5	250	8823	8823
	Mahindra Lifespace Developers	10	200	184668	184668
	Maars Software Ltd	10	5000	57340	57340
	Morepen Laboratories Ltd.	2	500	7455	7455
	NTPC Ltd	10	500	71801	71801
	Neyveli Lignite Ltd.	10	400	22868	22868
	Panama Petrochem Ltd	10	250	32369	32369
	Polaris Software Lab Ltd.	5	200	32299	32299
	Punj Lloyd Ltd	2	500	99416	99416
	Pyramid Saimira Theatre Ltd	10	60	6000	6000
	Ranbaxy Labs. Ltd.	5	100	46004	46004
	Reliance Capital Ltd	10	10	1130	1130
	Reliance Communication Ltd	5	200	33654	33654
	Reliance  Infrastructure	10	15	6348	6348
	Reliance Power Ltd	10	74	7358	7358
	Simplex Infrastructure Ltd	2	200	76982	76982
	SeaMac	10	1000	192315	192315
	Sesa Goa	1	100	28407	28407
	Sonata Software Ltd	1	1000	52218	52218
	Spicejet Ltd	10	250	15138	15138
	Tamilnadu Petroproducts Ltd.	10	500	17290	17290
	Tanla Solutions Ltd	1	50	6625	6625
	Tata Tele (Mah) Services Ltd.	10	700	20634	20634
	Unitech Ltd	2	200	44887	44887
	United phosphorus	2	100	14083	14083
	Voltamp Transformers Ltd	10	100	63163	63163
	Wipro Ltd	2	83	13537	13537
	Total (a)			2,758,769	2,758,769
	[The market value of the quoted shares is Rs. 27,33,667/- ]
(a)   Mutual Funds & Others (Un-Quoted)
	UTI Master Value Fund	33.89	8852.169	300,000	300,000
	JM Infra & Agricultural Fund	10	10000	100,000	100,000
	Total (b)			400,000	400,000
	Total Investments [a+b]			3,158,769	3,158,769

 

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COLINZ LABORATORIES LTD.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

		All amounts in Rupees, unless otherwise stated
		As at	Total As at
		March 31, 2012	March 31, 2011
Notes 8 - Long Term Loans & Advances
	Security Deposits	713,150	709,150
	Loans to Companies	13,050,000	13,250,000
		13,763,150	13,959,150
Notes 9 - Other Non-Current Assets
	Cash and Cash Equivalants
	Fixed Deposits maturing after 12 months	524,850	-
		524,850	-
Notes 10 - Inventories
	Raw Materials [Valued at the lower of cost (first in first out) and estimated net realisable value]	2,468,041	1,604,693
	Packing Materials [Valued at the lower of cost (first in first out) and estimated net realisable value]	1,339,510	992,729
	Work-in-Progress [Valued at the lower of cost and estimated net realisable value]	59,875	168,054
	Finished Goods [Valued at the lower of cost and estimated net realisable value]	17,465,638	16,262,247
		21,333,064	19,027,723
Notes 11 - Trade Receivables
	(Unsecured and considered good)
	Debts Outstanding For a Period Exceeding Six Months	1,243,083	1,340,585
	Other Debts	9,599,737	7,891,702
		10,842,820	9,232,287
	Trade Receivable stated above include debts due by:
	Directors *	-	-
	Other officers of the Company *	-	-
	Firm in which director is a partner *	-	-
	Private Company in which director is a member	-	-
	*Either severally or jointly
Notes 12 - Cash and Cash Equivalents
	Cash in Hand	358,547	390,818
	Balances with Banks on:
	-  Current Accounts	5,135,607	8,823,134
	-  Fixed Deposit Accounts	3,764,059	2,500,000
	Less: Restricted Cash	-	-
		9,258,213	11,713,952
Notes 13 - Short Term Loans and Advances
	(Unsecured and considered good, unless otherwise stated)
a	Loans and advances to related parties	-	-
b	Others
	Balances With Central Excise Authorities	53,999	47,897
	Advance to Employees	236,778	208,942
	Advance to Suppliers/Service Providers	-	-
	Pre-paid Expenses	141,001	178,970
	VAT Refund Receivable	304,075	180,338
	Tax Deducted at Source and Advance Tax	197,257	134,846
		933,110	750,993

 

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COLINZ LABORATORIES LTD.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

		All amounts in Rupees, unless otherwise stated
		Year ended	Year ended
		March 31, 2012	March 31, 2011
Notes 14 - Operating Revenue
	Sale of Products	70,454,561	60,336,549
		70,454,561	60,336,549
Notes 15 - Other Income
	Interest on:
	( - Bank Deposits [including tax deducted at source Rs.31,867 )	320,777	93,512
	(Previous year Rs. 15,281)]
	- Dividend	47,777	62,791
	Profit on Sale of shares	-	65,679
		368,554	221,982
Notes 16- Cost of Materials Consumed
	Opening Stock	2,597,421	3,047,824
	Add: Purchases	25,627,544	20,583,267
		28,224,965	23,631,091
	Less: Closing Stock	(3,807,551)	(2,597,421)
		24,417,414	21,033,670
Notes 17 -Changes in inventories of finished goods work-in-progress and Stock-in-Trade
	Opening Stock:
	- Finished Goods	16,262,247	13,368,881
	- Work-in-Progress	168,054	750,470
		16,430,301	14,119,351
	Less: Closing Stock:
	- Finished Goods	17,465,638	16,262,247
	- Work-in-Progress	59,875	168,054
		17,525,513	16,430,301
		(1,095,212)	(2,310,950)
Notes 18 - Employee Benefit Expense
	Salaries and Allowances	21,762,964	18,387,433
	Contribution to Provident and Other Funds	593,242	619,457
	Gratuity	187,400	40,800
		22,543,606	19,047,690

 

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COLINZ LABORATORIES LTD.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

		All amounts in Rupees, unless otherwise stated
		Year ended	Year ended
		March 31, 2012	March 31, 2011
Notes 19 - Finance Cost
	Interest Expences:	1,892,853	1,560,718
		1,892,853	1,560,718
Notes 20 - Other Expense
	Block & Designs	30,675	20,250
	Consumables	173,618	235,256
	Laboratory Expenses	92,405	108,400
	AC Rental Charges	175,848	132,778
	Office Rent	180,000	180,000
	Analytical Charges	288,708	223,745
	Office Expenses	572,832	587,384
	Conveyance	373,022	341,184
	Motor Car Expenses	171,898	181,939
	Factory Security Expenses	274,759	141,944
	Repairs and Maintenance:
	- Plant and Machinery	36,022	76,416
	- Building	269,474	-
	- Others	195,600	102,833
	Freight & Forwarding	1,390,682	1,396,225
	Insurance	116,670	90,071
	Loan License Charges Paid	1,312,568	1,349,788
	Auditors’ Remuneration	90,446	85,096
	Power & Fuel	710,954	690,907
	Printing & Stationery	105,900	65,758
	Books & Periodicals	30,000	19,100
	Postage & Telegram	345,243	263,182
	Legal & Professional Fees	413,242	599,037
	Loss on sale of assets	120,017	-
	Taxes & License Fees	318,568	367,538
	Society Maint. Charges	71,402	79,339
	Telephone Charges	439,975	263,352
	Travelling Expenses	614,895	1,218,260
	Commission on sales	927,386	912,993
	Directors' Remuneration	1,711,000	1,549,000
	Advertisement (Recruitment & Statutory)	119,903	204,648
	Water Charges	19,964	20,365
		11,693,676	11,506,788

 

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SCHEDULE 21: SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS :-

a) Significant Accounting Policies:

i]   General :
The Financial statements are prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to in Section 211 ( 3C ) of the Companies Act, 1956.

ii]  Fixed Assets:
Fixed assets are stated at original cost net of tax / duty credits availed, if any.

iii] Capital work in progress:
The capital work in progress as on 31-03-2012 is Rs. Nil

iv]  Depreciation :
Fixed Assets are depreciated under Straight Line Method. The applicable rates are as provided under Schedule XIV to the Companies Act, 1956. Depreciation on additions / deletions of  assets during the year is provided on a pro-rata basis.

v]  Inventories:
Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

vi] Investments:
Investments are stated at cost.

vii] Sales:
Sales are recognized at the time of dispatch of goods. All sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT).

viii] Other income:
Includes  interest on Fixed Deposits with Bank, dividends received and capital gains on the shares sold.

ix]  Research and Development Expenses:
No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

x]  Foreign Currency Transactions:
Export earnings of Rs.Nil (Previous Year - Rs.NIL)
Foreign Exchange Outgo of Rs.NIL (Previous Year – Rs. NIL /-)

xi] Retirement Benefits:
Retirement benefit in respect of gratuity is not provided for, and liability is not         
ascertained.
Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.
Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

b) The figures of previous year have been regrouped wherever necessary.

c) As per the available records, there is no outstanding dues to enterprises registered under Micro, Small and Medium Enterprises Development Act, 2006, at the end of the year. Further, no interest has been paid or payable on delayed payment of dues, if any, to such enterprises during the year

d) Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs.Nil     [ Previous Year : Rs. Nil  ]

e) Contingent Liabilities:
Bills Discounted and Purchased  -  Rs. Nil (Previous Year Rs. Nil )
Others                                         -  Rs. Nil (Previous Year Rs. Nil )

f) Auditors Remuneration :                                                             

	2011-2012	2010-2011
Audit Fees	Rs.   66,180	Rs.   55,150
Tax Audit Fees	Rs.   11,030	Rs.   11,030
Other services	Rs.   13,236	Rs.   18,916
Total	Rs.   90,446	Rs.   85,096

 

g) Segment Reporting

The Company is engaged in pharmaceutical formulation business which as per Accounting Standard – AS 17 is considered the only reportable business segment.

h) Related party transaction

As required by Accounting Standard – AS 18 ‘Related Parties Disclosure’ issued by the Institute of Chartered Accountants of India are as follows :

   (a) Key Management personnel              (b)  Details of Transactions.
(i)  Dr. L. S. Mani.                                          Remuneration paid Rs.8,40,500/-
Rent paid for the premise hired Rs. 1,80,000/-

i) Earning per share

As per Accounting Standard – AS 20 on ‘Earning per Share’ issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs. 0.24.

j) Accounting for Taxes on Income.

In accordance with the AS-22, Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, deferred tax resulting from timing differences between book and tax profits is accounted for, at the current rate of tax, to the extent the timing differences are expected to crystallize. The deferred tax asset arising on account of brought forward unabsorbed depreciation is recognized only to the extent there is a reasonable certainty of realization.

k) AS – 28 Impairment of Assets.
As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company.

In the opinion of Board of Directors, the Current Assets, Loans and advances have a value which on the realization in the ordinary course of business would at least be equal amount stated in the Balance sheet.

l) With regard to loan given to Company, the Board of Directors are of the opinion that no  interest should be provided in the accounts as the principle amount has not been recovered, Further, no provision for doubtful debt is required to be made as the amount is expected to be recovered in due course.

m) Deferred Tax :
The break up of the deferred tax liability as at 31st March, 2012 is as under:

	2011-12 Rupees	2010-11 Rupees
Deferred Tax Liability :
Difference between book depreciation and depreciation as per Income Tax Act, 1961.	63,62,909	64,30,675
	63,62,909	64,30,675
Deferred Tax Assets:	32,62,792	29,46,695
Net Deferred Tax  Liability	31,00,117	34,83,980

     

n) The Share Capital includes 4,00,000 Equity Shares of Rs. 10/- each, allotted as fully paid   Bonus Shares  by capitalisation of Capital Reserves in 1994-95.

o) Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Part II of   Schedule VI  to the Companies Act, 1956, as certified by the Directors.Quantitative and Turnover information  for the year ending 31st March, 2012.(Previous year figures are regrouped wherever necessary

i] Manufacturing  Activities :                                                                                                 [Rupees in Lacs]

				Opening Stock			Closing Stock		Turnover
Class	Units	Installed Capacity	Actual production	Qty.	Value	Qty.	Value	Qty.	Value
Tablets	Nos.	600	121.859	37.990	50.27	41.890	54.09	117.959	188.74
	in Lacs	(600)	137.800)	(26.500)	(52.41)	(37.990)	(50.27)	(126.31)	(179.10)
Capsules	Nos.	400	83.684	22.790	60.56	15.594	54.08	90.88	324.44
	in Lacs	(400)	(99.870)	(12.030)	(35.74)	(22.790)	(60.56)	(89.11)	(252.59)
Liquids	Ltrs.	-	21090.180	5605.770	16.88	7697.560	27.34	18998.39	68.53
		-	(19051.160)	(5384.400)	(12.12)	(5605.770)	(16.88)	(18829.79)	(58.53)
Ointments	Kgs	-	3051.73	1256.330	17.88	1385.855	21.58	2922.205	45.59
		-	(3739.535)	(816.025)	(14.68)	(1256.330)	(17.88)	(3299.23)	(49.59)

 

Notes :

• Installed capacity is based on one shift working as certified by the management and  accepted by the  Auditors without verification being a technical matter.

• Actual production includes production under Loan License arrangements.

• Figures in brackets are of previous year.

ii] Particulars of Goods Traded:                                                                                              [Rupees in Lacs]

Class	Units	Opening Stock		Purchases		Sales		Closing Stock
		Qty.	Value	Qty.	Value	Qty.	Value	Qty.	Value
Liquids	Ltrs.	483.200	1.24	7253.000	13.28	5591.400	18.69	2144.800	6.67
	in Lacs	(979.200)	(2.53)	(4124.200)	(7.67)	(4620.200)	(14.32)	(483.200)	(1.24)
Injectables	Nos.	70.646	7.45	-	-	70.646	8.84	-	-
	in Lacs	(13.860)	(2.87)	(134.606)	(6.74)	(77.820)	(10.98)	(70.646)	(7.45)
Capsules	Nos.	1.750	5.69	9.167	17.49	9.732	37.69	1.185	3.84
	in Lacs	(0.530)	(1.73)	(8.580)	(16.04)	(7.360)	(30.60)	(1.750)	(5.69)
Tablets	Nos.	1.000	2.65	4.804	3.80	3.434	12.02	2.370	7.05
	in Lacs	(3.880)	(11.61)	-	-	(2.880)	(7.65)	(1.000)	(2.65)

 

iii] The quantity and value of consumption of raw materials

Raw Materials (Bulk Drugs)			Quantity (Kgs.)		Value (Rupees in Lacs)
			2011-12	2010-11	2011-12	2010-11
1	Calcium Pantothenate		456	462	3.39	3.04
2	Vitamin E		330	368	5.90	8.81
3	Meclizine		250	180	20.34	13.58
4	Paracetamol		2150	2450	4.98	6.61
5	Chlorazoxazone		425	300	3.68	1.64
6	Isox suprine Hcl		17	17	2.67	2.15
7	Riboflavin  ( B2)		92	75	2.39	3.74
8	Niacinamide		382	430	2.44	3.45
9	Thiaminemono (B1)		74	80	1.18	1.67
10	Spirulina		4156	2829	22.29	13.77
11	Clindamycin Phosphate		25	5	2.43	1.09
12	Progesterone		150	125	23.92	18.10
13	Menthol		175	170	2.75	1.97
14	Propylene Glycol		1635	1590	2.13	2.54
15	Sorbitol		2227	600	1.16	0.24
16	Fish Oil		360	160	3.63	1.42
17	Folic Acid		90	-	2.82	-
18	Sugar		12550	7500	3.85	2.17
19	P V P K		150	-	1.22	-
20	Ofloxacin usp		120	95	3.20	1.88
21	Quinine Sulphate		25	30	1.71	2.03
22	Mat SR Base III		84	106	1.49	1.76
23	Ornidazole		300	237	3.26	2.26
24	Empty Gelatin Capsule				10.75	10.39
25	Others				23.09	18.62
	Total :				156.67	122.93

 

As per our report of even date attached.
FOR  S. V. BHAT & CO.	FOR AND ON BEHALF OF THE BOARD.
FIRM REG.NO.101298W
Chartered Accountants.
S. V. BHAT	Dr.  L. S. Mani	N. K. MENON
Proprietor.	Chairman & Managing Director	Director
M. No. 37237 .
Place: Mumbai
Date:15th May, 2012.

 

 

 

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Cash flow statement

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2012

	April 01, 2011	April 01, 2010
	To	To
	March 31, 2012	March 31, 2011
	Rupees	Rupees
A) CASH FLOW FROM OPERATING ACTIVITIES:
Profit/ Loss Before Taxation	878,724	784,741
Adjustments for:
Depreciation/Impairment	2,599,467	2,577,525
Interest on Fixed Loans	-
Interest on Delayed Payment of Taxes	-
Provision for Obsolete Stock	-
Bad Debts Written off	-
Provision for Contingencies	-
(Profit)/ Loss on sale of Fixed Assets (Net)	120,017
Interest on Deposits	-	-
Provision for Doubtful Debts written back	-	-
Liability No Longer Required Written Back	-	-
Operating Profit Before Working Capital Changes	3,598,208	3,362,266
Adjustments for changes in working capital:
Increase / (Decrease) in Trade Payable	2,586,269	2,196,066
Increase / (Decrease) in Long Term Provisions	-	-
Increase / (Decrease) in Short Term Provisions	-	-
Increase / (Decrease) in Other Current Liabilities	1,019,688	971,965
Increase / (Decrease) in Other Long Term Current Liabilities	23,247	37,000
(Increase) / Decrease in Trade Receivables	(1,610,533)	2,562,188
(Increase) / Decrease in Inventories	(2,305,342)	(1,860,549)
(Increase) / Decrease in Long Term Loans & Advances	196,000	400,000
(Increase) / Decrease in Short Term Loans & Advances	(182,116)	6,943
(Increase) / Decrease in Other Current Assets	-	-
(Increase) / Decrease in Other Non- Current Assets	(524850)	-
Cash Generated /(Used In) from Operations	2,800,571	7,675,879
Taxes Paid (Net)	(158,337)	(142,767)
Cashflow before extra ordinary items	2,642,234	7,533,112
Extra Ordinary items: Capital subsidy recd.	400,000	400,000
Net Cash generated from /(Used In) Operating Activities	3,042,234	7,933,112
B) CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets	(996,363)	(55,885)
Proceeds from Sale of Fixed Assets	47,000	-
Investments in shares & securities	-	(15,941)
Interest received	-	-
Net Cash (Used In) Investing Activities	(949,363)	(71,826)
C) CASH FLOW FROM FINANCING ACTIVITIES:
Share Capital	-	-
Share Application Money	-	-
Proceeds from Long Term Borrowings	(4,548,610)	(2,685,744)
Repayment of Short Term Borrowings	-
Interest Paid	-	-
Net Cash (Used In) /generated from Financing Activities	(4,548,610)	(2,685,744)
Net increase in Cash and Cash Equivalents (A+B+C)	(2,455,739)	5,175,542
Cash and Cash Equivalents as at the beginning of the year	11,713,952	6,538,410
Cash and Cash Equivalents as at the end of the year	9258213	11,713,952
	(2,455,739)	5,175,542
Cash and Cash Equivalents comprise of:
Cash on Hand	358,547	390,818
Cheques on Hand	-	-
Balances with Scheduled Banks on:
-  Current Accounts	5,135,607	8,823,134
-  Fixed Deposit Accounts	3,764,059	2,500,000
	9,258,213	11,713,952

 

Notes:

1. The above cash flow statement has been prepared under the "Indirect Method" set out in Accounting Standard 3 - Cash Flow Statements issued by the Institute of Chartered Accountants of India.

2. Cash and cash equivalents represent cash and bank balances only.

3. Previous Year's figures have been regrouped and rearranged, wherever necessary.

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Auditors Certificate

We have verified the above cash flow statement of Colinz Laboratories Limited derived from the audited financial statements for the years ended 31st March, 2012 and 31st March, 2011 and found the same to be drawn in accordance therewith and also with the requirements of Clause 32 of the listing agreements with stock exchanges.

Date :15th   May, 2012		For S. V. BHAT & CO
Place : Mumbai.		Chartered Accountants
		FIRM REG. No.-101298W
		S. V. BHAT
		(   Proprietor  )
		MEMBERSHIP No. – 37237

 

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COLINZ LABORATORIES LIMITED
A-101, Pratik Ind. Estate, Next to Fortis Hospital, Mulund-Goregaon Link Road, Mumbai-400078

FORM OF PROXY

Ledger Folio No.

No. of Shares

 

I/We..........................................................................................................of......………

............................................  being a member/members of Colinz Laboratories Limited hereby

appoint................................................................................................of........................………

................. or    failing him / her ....................................................……………… of................

as  my/ our  proxy  to  vote for me/ us  and  on  my/ our  behalf  at the 26th  Annual General Meeting of the Company to be held on Saturday , 29th September, 2012 and at any adjournment thereof.

Signed this................................................2012.

Affix  One Rupee Revenue Stamp

                                                                                              

 

 

 

[ Signature of the Member(s)]

NOTE :Proxy duly completed must be deposited at the Registered Office of the Company not less than 48 hours before the time for holding the meeting. The proxy need not be member of the Company.

 

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COLINZ LABORATORIES LIMITED
A-101, Pratik Ind. Estate, Next to Fortis Hospital, Mulund-Goregaon Link Road, Mumbai-400078

ATTENDANCE SLIP

I hereby record my presence at the 26th Annual General Meeting of the Company held at A-101, Pratik Ind. Estate, Next to Fortis Hospital, Mulund-Goregaon Link Road, Mumbai-400078, on Saturday, 29th September, 2012 at 12.30 P. M.

...............................................................                                                          .................................
Full name of the shareholder                                                                                        Signature
[in block letters]

Folio No.................................................

..............................................................                                                            
Full Name of Proxy                                                                                                        Signature
[in block letters]

NOTE: Shareholders attending the meeting in person or proxy are requested to complete the attendance slip and hand it over at the entrance of the meeting place. Joint shareholders may obtain additional slips on request.

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BOOK POST

 

To,---------------------------------------------------

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-------------------------------------------------------

 

If undelivered, please return to:

COLINZ LABORATORIES LIMITED.
A-101, Pratik Ind. Estate, Next to Wockhardt Hospital,
Mulund-Goregaon Link Road, Mumbai-400078.

 

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