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Auditor Report of Albert David Ltd.

Mar 31, 2016

To

The Members of ALBERT DAVID LTD.

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Albert David Limited ("the Company"), which comprise the balance sheet as at 31st March 2016, the statement of profit and 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, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of 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, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

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 there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, of the state of affairs of the Company as at 31st March''2016, and its profit and its 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, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure-2 a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 account as required by law have been kept by the Company so far as appears from our examination of those books.

c. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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 the written representations received from the directors as on 31stMarch''2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March''2016 from being appointed as a director in terms of Section 164(2) of the Act.

f. Our separate report on adequacy of internal financial control system and operating effectiveness of such controls is enclosed in Annexure-1.

3. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014, in our opinion and to the best our information and according to the explanations given to us:

a. The Company has disclosed the impact of pending litigations on its financial position in its financial statements -Refer Note 28.1 to the financial statements.

b. The Company did not have any long-term contract including derivative contract which may lead to any foreseeable loss.

c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

AUDITORS’ REPORT AS PER THE COMPANIES (AUDITOR’S REPORT) ORDER’2016 :

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 by the management at reasonable intervals. As informed, no material discrepancies between book records and the physical inventories have been noticed on such verification.

c. The title deeds of immovable property are held in the name of the Company.

2. The inventories have been physically verified at reasonable intervals during the year by the management. The discrepancies noticed on physical verification between the physical stock and book records were not material and have been properly dealt with in the books of accounts.

3. The company has granted two unsecured loans, to one company, and another Party covered in the register maintained under section 189 of the Companies Act, 2013. Repayment of loan and interest thereon form part of loan arrangement which have been regularly complied with. There is no overdue principal or interest outstanding.

4. The Company has complied to the provisions of section 185 and 186 of the Companies Act, 2013 in respect to loans, investments, guarantees and securities.

5. The Company has accepted deposits from the shareholders within the meaning of Sections 73 to 76 of the Act and the Rules framed there under to the extent notified in due compliance of directives issued by RBI Provisions of section 73 & 76 of Companies Act, 2013 and rules framed there under.

6. On the basis of records produced we are of the opinion that prima facie cost records and accounts prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 in respect of products of the company covered under the rules under said section have been made and maintained. However we are neither required to carry out nor have carried out any detailed examination of such accounts and records.

7 a. According to information and explanations given to us, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance , income tax, sales tax, service tax, custom duty, excise duty, value added tax, cess and other statutory dues to the extent applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2016 for a period of more than six months from the date of becoming payable.

b. The dues on account of Sales Tax, Income Tax, Excise Duty and cess disputed by the company and not being paid, vis-a-vis forums where such disputes are pending are mentioned below:-

Name of the Statute

Nature of dues

Amount Rs. in lacs

Period to which the amount relates

Forum where dispute is pending

Sales Tax :

Central Sales Tax Act, 1956

Tax on Lease Rental

5.74

2002-2003

Calcutta High Court

Central Sales Tax Act, 1956

Tax on Lease Rental

1.52

2003-2004

- Do -

- Do -

- Do -

2.62

2005-2006

W.B. Com. Taxes Appealate & Revisional Board

West Bengal Vat Act, 2003

Vat on sample, dispute on sale & Purchase Tax

51.86

2009-2010

- Do -

- Do -

Dispute of sale and input tax credit

2.07

2011-2012

- Do -

Name of the Statute

Nature of dues

Amount Rs. in lacs

Period to which the amount relates

Forum where dispute is pending

Income Tax :

Income Tax Act, 1961

- Do -

- Do -

Tax on disallowance of expenditure

- Do -

Tax on disallowance of Depreciation

0.20

6.95

61.71

1991-1992

1999-2000

2012-2013

Com. of Income Tax (Appeal)

Calcutta High Court

Com. of Income Tax (Appeal)

Excise Duty :

Central Excise Act, 1944

- Do -

- Do -

- Do -

Classification of Products

Additional Levy of Duty and Valuation of Sample

Valuation of Exports

Duty on scrap

188.04

0.99

2.84

0.18

01.06.2003 to 28.02.2008 13.06.1961 to 30.04.1962

08.01.2005 to 31.08.2007

01.04.2003 to 31.03.2010

CESTAT

Collector of Central Excise

CESTAT

Com. of Central Excise (Appeal)

Cess : Water (Prevention & Control of Pollution) Cess Act, 1977

Additional levy of Water Cess

23.41

05.01.1994 to 31.03.2016

Allahabad High Court

8. Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to any bank or government. Company has no debenture holder or any financial institutional borrowing during the year.

9. Neither any term loan has been obtained during the year nor any money was raised by way of public offer (including debt instruments) during the year by the company.

10. No fraud has been noticed or reported on or by the company during the year.

11. The managerial remuneration has been paid or provided in accordance with the provisions of section 197 read with Schedule V of the Act.

12. The Company is not a Nidhi Company, accordingly paragraph 3 (xii) of the Order is not applicable.

13. All the transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details of related parties transactions have been disclosed in the Financial Statements as required by the applicable accounting standard.

14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. The Company has not entered into any non-cash transactions with directors.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For G. Basu & Co.

Chartered Accountants

(Registration No.301174E)

Place : Kolkata S. Lahiri

Date : 30th May, 2016 Partner

(Membership No.51717)


Mar 31, 2015

We have audited the accompanying financial statements of Albert David Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2015, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of 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, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

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 there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, of the state of affairs of the Company as at 31st March, 2015, and its profit and its 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, 2015 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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 the written representations received from the directors as on 31st March''2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March''2015 from being appointed as a director in terms of Section 164(2) of the Act.

f. In our opinion, the Company has reasonably adequate internal financial control system in place providing operating effectiveness of such controls.

g. With respect to the other matters to be included in the Auditor''s 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. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No.26.1(I)(A) of Notes to the financial statements.

II. The Company did not have any long-term contract including derivative contract which may lead to any foreseeable loss.

III. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the company.

ANNEXURE TO THE AUDITORS'' REPORT AS REFERRED TO IN PARA 1 OF THE SAID 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 by the Management at reasonable intervals. No material discrepancies between book records and the physical inventories have been noticed on such verification.

2 a. The inventories have been physically verified at reasonable intervals by the management.

b. The procedures of physical verification of inventories followed by 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 book records were not material and have been properly dealt with in the books of accounts.

3. The Company has given unsecured loans of Rs.300 Lacs to a Company covered in the register maintained under section 189 of the Companies Act, 2013. The amount of principal and interest thereon has been fully recovered during the year.

4. 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 for purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit no major weakness has been noticed in the internal controls. We have not observed any failure on the part of the company to correct major weakness in internal control system.

5. The company has not accepted any deposits under the provisions of section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under and as such the question of compliance under the Companies Act or any other directives or orders does not arise.

6. On the basis of records produced we are of the opinion that prima facie cost records and accounts prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 in respect of products of ''the company'' covered under the rules under said section have been made and maintained. However we are neither required to carry out nor have carried out any detailed examination of such accounts and records.

7 a. According to information and explanations given to us, 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, cess and any other statutory dues to the extent applicable to it.

We have been informed that there are no undisputed statutory dues as at the year end outstanding for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us, the following dues of Sales Tax, Income Tax, Excise Duty and Cess have not been deposited on account of pending dispute

Name of the Statute Nature of dues Amount

Sales Tax :

Central Sales Tax Act, 1956 Tax on Lease Rental 5.74

Central Sales Tax Act, 1956 Tax on Lease Rental 1.52

- Do - - Do - 2.62

West Bengal Vat Act, 2003 Vat on sample, dispute 51.86 on sale & Purchase Tax

- Do - Dispute of sale and input 2.07 tax credit

Income Tax :

Income Tax Act, 1961 Tax on disallowance 0.20 of expenditure

- Do - - Do - 6.95

- Do - - Do - 38.02

Excise Duty :

Central Excise Act, 1944 Classification of 188.04 Products

- Do - Additional Levy of Duty 0.99 and Valuation of Sample

- Do - Valuation of Exports 2.84

- Do - Duty on scrap 0.18

Cess : Water (Prevention Additional levy of Water 31.40 & Control of Pollution) Cess Cess Act, 1977

Name of the Statute Period to which Forum where the amount relates dispute is pending

Sales Tax :

Central Sales Tax Act, 1956 2002- 2003 Calcutta High Court

Central Sales Tax Act, 1956 2003- 2004 - Do -

Central Sales Tax Act, 1956 2005- 2006 W.B. Com. Taxes Appealate & Revisional Board

West Bengal Vat Act 2003 2009-2010 - Do -

West Bengal Vat Act 2003 2011-2012 - Do -

Income Tax :

Income Tax Act 1961 1991-1992 Com. of Income Tax (Appeal)

Income Tax Act 1961 1999-2000 Calcutta High Court

Income Tax Act 1961 2011-2012 Com. of Income Tax (Appeal)

Escise Duty :

Central Excise Act 1944 01.06.2003 to CESTAT 28.02.2008

Central Excise Act 1944 13.06.1961 to Collector of 30.04.1962 Central Excise

Central Excise Act 1944 08.01.2005 to CESTAT 31.08.2007

Central Excise Act 1944 01.04.2003 to Com. of Central 31.03.2010 Excise(Appeal)

Cess : Wate Prevation and 05.01.1994 to Allahabad High Court control of Pilution cess act 31.03.2015

There were no undeposited disputed dues in respect of Service Tax, Customs Duty and Wealth Tax as on 31st March, 2015.

c. The company does not have any due for transfer to investor education and protection fund in accordance with the provision of the Companies Act and the Rules made thereunder.

8. The company does not have Accumulated losses at the end of the financial year. The company has not incurred any cash loss in the current financial or in the immediately preceding financial year.

9. Based on our audit procedures and the information and explanations given by the management, the company has not defaulted on repayment of dues to a financial institution or any Bank.

10. According to information and explanation given to us, the company has given a guarantee to bank in respect of a loan taken by another Company. In our opinion, the terms and conditions of such guarantee are not prejudicial to the interest of the Company.

11. Term Loans have been applied for the purpose they were obtained.

12. According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For G. Basu & Co. Chartered Accountants (Registration No.301174E)

Place : Kolkata T. K. Batabyal Date : 28th May, 2015 Partner (Membership No.008033)


Mar 31, 2014

We have audited the accompanying financial statements of Albert David Limited, which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit & Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Managements 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, 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 and dated 13the September, 2013 of the Ministry of Corporate affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. 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.

auditor’s 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 misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedure 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. 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. 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 India:

(a) In the case of the Balance Sheet, of the state of affairs of the company as at March 31, 2014;

(b) In the case of the Statement of Profit & 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.

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 audit;

(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 books ;

(c) the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion, the Balance Sheet, the Statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards notifed under 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.

(e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

annexure to Independent auditors Report

Annexure referred to in item 1 under Report on other Legal and Regulatory Requirements of our Report on even date.

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fxed assets.

b) The fixed assets have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

c) During the year there has been no significant disposal of fxed assets.

ii) 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 inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii) a) The Company has not given any loans, secured or unsecured, to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) In view of our comment in paragraph (iii)(a) above, clauses (iii)(b), (iii)(c) and (iii)(d) of paragraph 4 of the aforesaid Order are not applicable.

c) The company has taken unsecured loan of Rs.780 Lacs from four companies covered in the register maintained under Section 301 of the Companies Act, 1956.

d) The rate of interest and other terms and conditions of the above loans are prima facie not prejudicial to the interest of the company.

e) The company has repaid the loan amount in full along with interest thereon during the year.

iv) 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, fxed assets and sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control.

v) a) According to the information and explanations given to us, particulars of contracts and arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) Contracts of sales and purchases and services with parties covered under Section 301 of Companies Act, 1956 were made at prices which were reasonable having regard to prevailing market prices on relevant date.

vi) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or Tribunal.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for maintenance of Cost records under Section 209 (1)(d) of the Companies Act, 1956 in respect of Bulk Drugs Formulations and Disposable Syrenges & needles and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

ix) a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom

Duty, Excise Duty, Cess and other material statutory dues to the extent applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrears as at 31st March 2014 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, the following dues of Sales Tax, Income Tax, Excise Duty and Cess have not been deposited on account of pending dispute :-

Name of the Statute Nature of dues amount Period to which the Forum where dispute is

Rs. in amount relates pending

lacs

Sales Tax:

Central Sales Tax Act, Tax on Lease Rental 5.74 2002-2003 Calcutta High Court

1956

Central Sales Tax Act, Tax on Lease Rental 1.52 2003-2004 - Do -

1956

- Do - - Do - 2.62 2005-2006 W.B. Com. Taxes

Appealate & Revisional Board

West Bengal Vat Act, Vat on sample, 51.86 2009-2010 - Do -

2003 dispute on sale &

Purchase Tax

Income Tax :

Income Tax Act, 1961 Tax on disallowance 0.20 1991-1992 Com. of Income

of expendi ture Tax(Appeal)

-Do- -Do- 6.95 1999-2000 Calcutta High Court

Excise duty:

Central Excise Act, 1944 Cenvat on scrap sale 67.75 01.11.2002 to 31.03.2005 CESTAT

-Do- Classifica tion of 188.04 01.06.2003 to 28.02.2008 CESTAT

Products

-Do- Additional Levy of 0.99 13.06.1961 to 30.04.1962 Collector of Central

Duty and Valuation of Excise

Sample

-Do- Valuation of Exports 2.84 08.01.2005 to 31.08.2007 CESTAT

-Do- Duty on scrap 0.18 01.04.2003 to 31.03.2010 Com. of Central Excise

(Appeal)

cess : Water (Prevention Additional levy of 29.29 05.01.1994 to 31.03.2014 Allahabad High Court

& Control of Pollution) Water Cess Cess Act, 1977

There were no un-deposited disputed dues in respect of Service Tax, Customs Duty and Wealth Tax as on 31st March, 2014.

x) The Company has no accumulated losses at the end of this financial year and it has not incurred cash losses during the current and the immediately preceding financial year.

xi) 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.

xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) In our opinion, the Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund / Society. Therefore, the provisions of Clause 4 of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

xiv) According to information and explanations given to us, the company has not made any dealing or trading in securities during the year. Accordingly the provisions of Clause 4(xiv) of the Order are not applicable to the company.

xv) According to information and explanations given to us, the Company has given a guarantee to bank in respect of a loan taken by another company. In our opinion, the terms and conditions of such guarantee are not prejudicial to the interest of the company.

xvi) The Company has taken new term loan during the year. In our opinion, the term loan has been applied for the purpose for which it was taken.

xvii) 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 short term fund was raised by the company which has been used for long term investment during the year under audit.

xviii) The Company has not made any preferential allotment of shares to parties or Companies covered in the register maintained u/s 301 of the Act.

xix) The Company did not issue any Debenture during the year under audit.

xx) The Company did not make any Public Issue during the year.

xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For G BAsU & co.

Chartered Accountants Firm Registration No. 301174E

Place: Kolkata (T. K. BaTaBYaL)

Dated: May 27, 2014 Membership No. 008033


Mar 31, 2013

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Albert David Limited, which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit & Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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 the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956. 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.

AUDITOR''S 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 misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedure 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. 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.

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 India :

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2013 ;

(b) In the case of the Statement of Profit & 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.

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 audit;

(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 books ;

(c) the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account ;

(d) in our opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 ;

(e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(f) since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the 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 referred to in item 1 under Report on other Legal and Regulatory Requirements of our Report on even date.

i) 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 by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

c) During the year there has been no significant disposal of fixed assets.

ii) 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 inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii) a) The Company has not given any loans, secured or unsecured, to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) In view of our comment in paragraph (iii)(a) above, clauses (iii)(b), (iii)(c) and (iii)(d) of paragraph 4 of the aforesaid Order are not applicable.

c) The company has taken unsecured loan of Rs.330 Lacs from four companies covered in the register maintained under Section 301 of the Companies Act, 1956.

d) The rate of interest and other terms and conditions of the above loans are prima facie not prejudicial to the interest of the company.

e) The company has repaid the loan amount in full alongwith interest thereon during the year.

iv) 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 sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control.

v) a) According to the information and explanations given to us, particulars of contracts and arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) Contracts of sales and purchases and services with parties covered under Section 301 of Companies Act, 1956 were made at prices which were reasonable having regard to prevailing market prices on relevant date.

vi) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or Tribunal.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for maintenance of Cost records under Section 209 (1)(d) of the Companies Act, 1956 in respect of Bulk Drugs and Formulations and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

ix) a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service

Tax, Custom Duty, Excise Duty, Cess and other material statutory dues to the extent applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrears as at 31st March 2013 for a period of more than six months from the date they became payable.

x) The Company has no accumulated losses at the end of this financial year and it has not incurred cash losses during the current and the immediately preceding financial year.

xi) 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.

xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) 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.

xiv) According to information and explanations given to us, the company has not made any dealing or trading in securities during the year. Accordingly the provisions of Clause 4(xiv) of the Order are not applicable to the company.

xv) According to information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions.

xvi) The Company has taken new term loan during the year. In our opinion, the term loan has been applied for the purpose for which it was taken.

xvii) 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 short term fund was raised by the company which has been used for long term investment during the year under audit.

xviii)The Company has not made any preferential allotment of shares to parties or Companies covered in the register maintained u/s 301 of the Act.

xix) The Company did not issue any Debenture during the year under audit.

xx) The Company did not make any Public Issue during the year.

xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For G. Basu & Co.

Chartered Accountants

(Registration No.301174E)

Place : Kolkata ( S. Lahiri )

Date : 29th May, 2013 Partner

(Membership No.51717)


Mar 31, 2012

We have audited the attached Balance Sheet of ALBERT DAVID LIMITED as at 31st March, 2012 and also the Profit & Loss Statement and Cash Flow Statement of the Company for the year ended on that date annexed thereto.

The 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. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, our comments on the matters specified in paragraphs 4 and 5 of the said Order are as under:

i) 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 by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

c) During the year there has been no significant disposal of fixed assets.

ii) 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 inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii) a) The Company has not given any loans, secured or unsecured, to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) In view of our comment in paragraph (iii)(a) above, clauses (iii)(b), (iii)(c) and (iii)(d) of paragraph 4 of the aforesaid Order are not applicable.

c) The company has not taken secured or unsecured loan from companies, firm or other party covered in the register maintained under Section 301 of the Companies Act, 1956.

d) In view of our comment in paragraph (iii)(c) above, clauses (iii)(f) and (iii)(g) of paragraph 4 of the aforesaid Order are not applicable.

iv) 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 sale of goods and services . During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control.

v) According to the information given to us, there are no contracts or arrangements during the year that need to be entered into a register in pursuance of Section 301 of the Companies Act, 1956. Therefore, the provisons of clause 4(v) of the order are not applicable to the Company.

vi) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board, National Company Law Tribunal, Reserve Bank of India or any Court or Tribunal against the company.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of account maintained by the Company pursuant to the order of the Central Government for maintenance of Cost records under Section 209 (1)(d) of the Companies Act, 1956 in respect of Bulk Drugs and Formulations and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

ix) a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues to the extent applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrears as at 31st March 2012 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us, the following dues of Sales Tax, Service Tax, Income Tax, Excise Duty and Cess have not been deposited on account of pending dispute :

Name of the Statute Nature of dues Amount Rs. in Lacs

Sales Tax:

Central Sales Tax Act,1956 Tax on Lease Rental 5.74

West Bengal Sales Tax Act,1994 Tax on replacement 6.97 and Purchase Tax

Central Sales Tax Act,1956 Tax on Lease Rental 4.73

Service Tax:

Service Tax Act Payment mode Dispute 5.40 of GTA Service

Income Tax:

Income Tax Act, 1961 Tax on disallowance 0.20 of expenditure

-Do- -Do- 6.95

-Do- Tax on disallowed 5.46 expensed relating to exempted income

Excise Duty:

Central Excise Act, 1944 Cenvat on scrap sales 49.11

-Do- -Do- 230.59

-Do- Classification of Products 188.04

-Do- Additional Levy of Duty 0.99 and Valuation of Sample

-Do- Valuation of Exports 2.84

Cess : Water (Prevention & Additional Levy of 21.19 Control of Pollution) Cess Act, 1977 Water Cess

Name of the Statute Period to which Forum where the amount relates dispute is pending

Sales Tax:

Central Sales Tax Act, 1956 2002-2003 Calcutta High Court

West Bengal Sales Tax Act, 1994 2003-2004 W.B. Com. Taxes Appeallate & Revisional Board

Central Sales Tax Act, 1956 2003-2004 & 2005-2006 - Do -

Service Tax:

Service Tax Act 01.04.2007 to 30.09.2007 Allahabad High Court

Income Tax:

Income Tax Act, 1961 1991-1992 Com. Of Income Tax(Appeal)

-Do- 1999-2000 Calcutta High Court

-Do- 2005-2006 Com. Of income Tax (Appeal)

Excise Duty:

Central Excise Act, 1944 04.05.2000 to 31.10.2002 Allahabad High Court

-Do- 01.11.2002 to 31.03.2005

01.06.2005 to 31.10.2008

-Do- 01.06.2009 to 31.12.2009 CESTAT 01.04.2010 to 31.01.2011

-Do- 01.06.2003 to 28.02.2008 CESTAT

-Do- 13.06.1961 to 30.04.1962 Collector of Central Excise

-Do- 08.01.2005 to 31.08.2007 CESTAT

Cess: Water (Prevention 05.01.1994 to Control of Pollution) Cess Act, 1977 31.03.2012 Allahabad High Court

There were no undeposited disputed dues in respect of Customs Duty and Wealth Tax as on 31st March, 2012.

x) The Company has no accumulated loss as on 31st March, 2012 and has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

xi) 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.

xii) The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) 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.

xiv) According to information and explanations given to us the Company did not make any trading or dealing in securities during the year. Accordingly the provisions of clause 4(xiv) of the order are not applicable to the Company.

xv) According to information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions.

xvi) In our opinion, the term loan has been applied for the purpose for which it was raised.

xvii) 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 short term fund was raised by the company which has been used for long term investment during the year under audit.

xviii) The Company has not made any preferential allotment of shares to parties and Companies covered in the register maintained u/s 301 of the Act.

xix) The Company did not issue any Debenture during the year under audit.

xx) The Company did not make any Public Issue during the year.

xxi) 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.

Further to our comments as above, we report that:

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii) The Balance Sheet and Profit & Loss Statement dealt with by this report are in agreement with the books of account;

iii) 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 books;

iv) In our opinion the Balance Sheet and Profit & Loss Statement dealt with by this Report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956,

v) On the basis of written representations received from the Directors, as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with other notes 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;

a) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2012;

b) In the case of the Profit & Loss Statement of the profit of the Company for the year ended on that date; and

c) In the case of Cash Flow Statement of the cash flows for the year ended on that date. For G BASU & CO.

Chartered Accountants

(Registration No. 301174E)

(T. K. BATABYAL)

Kolkata Partner

Dated : 29th May, 2012 Membership No. 008033


Mar 31, 2011

We have audited the attached Balance Sheet of ALBERT DAVID LIMITED as at 31st March, 2011 and also the Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date annexed thereto.

The financial statements are the responsibility of the Companys 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. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, our comments on the matters specified in paragraphs 4 and 5 of the said Order are as under :-

i) 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 by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

c) During the year there has been no significant disposal of fixed assets.

ii) 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 inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii) a) The Company has not given any loans, secured or unsecured, to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) In view of our comment in paragraph (iii)(a) above, clauses (iii)(b), (iii)(c) and (iii)(d) of paragraph 4 of the aforesaid Order are not applicable.

c) The company has not taken secured or unsecured loan from companies, firm or other party covered in the register maintained under Section 301 of the Companies Act, 1956.

d) In view of our comment in paragraph (iii)(c) above, clauses (iii)(f) and (iii)(g) of paragraph 4 of the aforesaid Order are not applicable.

iv) 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 sale of goods and services . During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control.

v) a) According to the information and explanations given to us, particulars of contracts and arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) Contracts of sales and purchases and services with parties covered under Section 301 of Companies Act, 1956 were made at prices which were reasonable having regard to prevailing market prices on relevant date.

vi) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board, National Company Law Tribunal, Reserve Bank of India or any Court or Tribunal against the company.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of account maintained by the Company pursuant to the order of the Central Government for maintenance of Cost records under Section 209 (1)(d) of the Companies Act, 1956 in respect of Bulk Drugs and Formulations and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

ix) a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues to the extent applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrears as at 31st March 2011 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us, the following dues of Sales Tax, Service Tax, Income Tax, Excise Duty and Cess have not been deposited on account of pending dispute :-

Name of the Nature of dues Amount Statute Rs. in lacs

Sales Tax: Tax on lease rental 5.74 Central Sales Tax Act, 1956

West Bengal Sales Tax on replacement 6.97 Tax Act, 1994 and Purchase Tax

Central Sales Tax Act, 1956 Tax on lease rental 2.11

Central Sales Tax Act, 1956 Tax on lease rental 2.62

Service Tax : Payment mode 5.40 Service Tax Act Dispute of GTA Service

- do - - do - 7.01

- do - Service Tax on 63.81 GTA Service

- do - Input Service Credit 4.10

Income Tax:: Tax on disallowance 0.20 Income Tax Act, 1961 of expenditure

- do - - do - 6.95

- do - Tax on disallowed 5.46 expense relating to exempted income

Excise Duty: Cenvat on Scrap Sale. 16.46 Central Excise Act, 1944

- do - - do - 16.50

- do - - do - 16.15

- do - - do - 34.47

- do - - do - 33.29

- do - - do - 45.15

- do - - do - 20.82

- do - - do - 47.15

- do - - do - 35.31

- do - - do - 7.91

- do - - do - 14.68

- do - - do - 37.14

- do - - do - 3.63

- do - - do - 4.56

- do - - do - 13.60

- do - - do - 16.86

- do - Classification of 142.84 Products

- do - - do - 45.20

- do - Additional Levy of 0.99 Duty and valuation of sample

- do - Valuation of Exports 2.84

Cess_:Water (Prevention & Additional Levy of 17.02 Control of Water Cess Pollution)Cess Act, 1977

Name of the Period to which Forum where Statue the amount relates dispute is pending

Sales Tax: 2002-2003 Calcutta High Court Central Sales Tax Act, 1956

West Bengal Sales 2003-2004 W.B.Com. Taxes Appellate Tax Act, 1994 & Revisional Board

Central Sales Tax Act, 1956 2003-2004 - Do -

Central Sales Tax Act, 1956 2005-2006 - Do -

Service Tax : 01.04.2007 to 30.09.2007 Allahabad High Court Service Tax Act

-do- 2006-2007 Addl.Commissioner, Excise

-do- 01.04.2005 to 31.03.2008 Commissioner of Excise, Ghaziabad

-do- 2005-2006 Asstt. Commissioner of Excise, Ghaziabad

Income Tax:: 1991-1992 Com. Income Tax (Appeal) Income Tax Act, 1961

-do- 1999-2000 Calcutta High Court

-do- 2005-2006 Com. Income Tax (Appeal)

Excise Duty: 04.05.2000 to 31.03.2001 Allahabad High Court Central Excise Act, 1944

-do- 01.04.2001 to31.12.2001 - do -

-do- 01.01.2002 to 31.10.2002 - do -

-do- 01.11.2002 to 30.06.2003 Central Excise & Service Tax Appellate Tribunal

-do- 01.07.2003 to 31.03.2004 - do -

-do- 01.04.2004 to 31.03.2005 Addl. Commissioner, Central Excise

-do- 01.04.2005 to 31.03.2006 Central Excice & Service Tax Appeallate Tribunal

-do- 01.04.2006 to 30.11.2006 - do -

-do- 01.12.2006 to 30.08.2007 - do -

-do- 01.09.2007 to 31.03.2008 Addl. Commissioner, Central Excise

-do- 01.04.2008 to 31.10.2008 Asst. Commissioner, Central Excise

-do- 01.11.2008 to 31.12.2008 Addl. Commissioner, Central Excise

-do- 01.01.2009 to 28.02.2009 Asst. Commissioner, Central Excise

-do- 01.04.2009 to 30.04.2009 Addl. Commissioner, Central Excise

-do- 01.06.2009 to 31.12.2009 Asstt. Commissioner, Central Excise

-do- 01.04.2010 to 31.10.2010 Addl. Commissioner, Central Excise

-do- 01.06.2003 to 30.06.2007 Central Excice & Service Tax Appeallate Tribunal

-d0- 01.07.2007 to 28.02.2008 - do -

-do- 13.06.1961 to 30.04.1962 Collector of Central Excise

-do- 08.01.2005 to 31.08.2007 Com. Central Excise (Appeal)

Cess :Water (Prevention & 05.01.1994 to 31.03.2011 Allahabad High Court Control of Pollution) Cess Act, 1977

There were no undeposited disputed dues in respect of Customs Duty and Wealth Tax as on 31st March, 2011.

x) The Company has no accumulated loss as on 31st March, 2011 and has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

xi) 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.

xii) The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) 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 (Auditors Report) Order, 2003 are not applicable to the Company.

xiv) In our opinion proper records have been maintained of the transactions and contracts for dealing in securities and timely entries have been made therein ; also the securities have been held by the company in its own name.

xv) According to information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions.

xvi) In our opinion, the term loan has been applied for the purpose for which it was raised.

xvii) 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 short term fund was raised by the company which has been used for long term investment during the year under audit.

xviii) The Company has not made any preferential allotment of shares to parties and Companies covered in the register maintained u/s 301 of the Act.

xix) The Company did not issue any Debenture during the year under audit.

xx) The Company did not make any Public Issue during the year.

xxi) 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.

Further to our comments as above, we report that :

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account;

iii) 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 books;

iv) In our opinion the Balance Sheet and Profit and Loss Account dealt with by this Report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956,

v) On the basis of written representations received from the Directors, as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2011 from being appointed as a Director in terms of Clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with other notes 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;

a) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2011;

b) In the case of the Profit & Loss Account of the profit of the Company for the year ended on that date; and

c) In the case of Cash Flow Statement of the cash flows for the year ended on that date.

For G Basu & Co. Chartered Accountants (Registration No. 301174E)

S. LAHIRI Partner (Membership No. 51717)

Kolkata Dated : 30th May, 2011


Mar 31, 2010

We have audited the attached Balance Sheet of ALBERT DAVID LIMITED as at 31st March, 2010 and also the Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date annexed thereto.

The financial statements are the responsibility of the Companys 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. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, our comments on the matters specified in paragraphs 4 and 5 of the said Order are as under :-

i) 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 by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

c) During the year there has been no significant disposal of fixed assets.

ii) 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 inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii) a) The Company has not given any loans, secured or unsecured, to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) In view of our comment in paragraph (iii)(a) above, clauses (iii)(b), (iii)(c) and (iii)(d) of paragraph 4 of the aforesaid Order are not applicable.

c) The company has not taken secured or unsecured loan from companies, firm or other parties covered in the register, maintained under Section 301 of the Companies Act, 1956.

d) In view of our comment in paragraph (iii)(c) above, clauses (iii)(f) and (iii)(g) of paragraph 4 of the aforesaid Order are not applicable.

iv) 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 sale of goods and services . During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control.

v) a) According to the information and explanations given to us, particulars of contracts and arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) Contracts of sales, purchases and services with parties covered under Section 301 of Companies Act, 1956 were made at prices which were reasonable having regard to prevailing market prices on relevant date.

vi) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board, National Company Law Tribunal, Reserve Bank of India or any Court or Tribunal against the company.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. viii) We have broadly reviewed the books of account maintained by the Company pursuant to the order of the Central Government for maintenance of Cost records under Section 209 (l)(d) of the Companies Act, 1956 in respect of Bulk Drugs and Formulations and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

ix) a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues to the extent applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrears as at 31st March 2010 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us, the following dues of Sales Tax, Service Tax, Income Tax, Excise Duty and Cess have not been deposited on account of pending dispute :-

There were no undeposited disputed dues in respect of Customs Duty and Wealth Tax as on 31st March, 2010.

x) The Company has no accumulated loss as on 31st March, 2010 and has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

xi) 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.

xii) The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) 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 (Auditors Report) Order, 2003 are not applicable to the Company.

xiv) In our opinion proper records have been maintained of the transactions and contracts for dealing in securities and timely entries have been made therein ; also the securities have been held by the company in its own name.

xv) According to information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions.

xvi) In our opinion, the term loan has been applied for the purpose for which it was raised.

xvii) 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 short term fund was raised by the company which has been used for long term investment during the year under audit.

xviii) The Company has not made any preferential allotment of shares to parties and Companies covered in the register maintained u/s 301 of the Act.

xix) The Company did not issue any Debenture during the year under audit.

xx) The Company did not make any Public Issue during the year.

xxi) 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.

Further to our comments as above, we report that :

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account;

iii) 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 books;

iv) In our opinion the Balance Sheet and Profit and Loss Account dealt with by this Report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956,

v) On the basis of written representations received from the Directors, as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2010 from being appointed as a Director in terms of Clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with other notes 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;

a) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2010;

b) In the case of the Profit & Loss Account of the profit of the Company for the year ended on that date; and

c) In the case of Cash Flow Statement of the cash flows for the year ended on that date.

For G Basu & Co. Chartered Accountant Kolkata S. LAHIRI Dated : The 15th May, 2010 Partner (Membership No. 51717)