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Auditor Report of Bharat Immunological & Biologicals Corporation Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of BHARAT IMMUNOLOGICALS & BIOLOGICALS CORP. LIMITED ("the company"),which comprise the Balance Sheet as at 31 March 2015, 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 and presentation 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, 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 die 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 true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls . An audit also includes evaluating the appropriateness of 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, 2015, 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 ("the Act") and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us during the course of audit, we give in the Annexure-1, a statement on the matters Specified in paragraphs 3 and 4 of the Order, to the extent to which they are 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, the Statement of Profit and Loss and the Cash How 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.

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

h) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note - 27(b) to the financial statements;

ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred by the Company to the Investor Education and Protection Fund.

-Annexure-1 to the Auditors' Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' of our Report of even date to the members of BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED on the accounts of the company for the year ended 31st March, 2015]

(i) In respect of its fixed assets:

(a)The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management during the year in accordance with the phased programme of verification adopted by the management which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(ii) In respect of its inventory:

a) As explained to us, the inventories of finished goods, semi-finished goods, stores, spare parts and raw materials were physically verified at regular intervals/ (at the end of the year) by the Management. According to the information and explanation given to us, no stock of inventories lying with third parties.

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of stocks as compared to book records.

(iii) In respect of loans, secured or unsecured, granted to the parties covered in register maintained under section 189 of the Companies Act 2013:

According to the information and explanations given to us, the Company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. Accordingly paragraph 3 (iii) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, internal control procedures and system are weak, commensurate with the size of the company and the nature of its business with regard to the identification of slow/non moving inventory, timely recording of financial transactions and its reconciliation with other departments, timely compliance with respect to various statutes and timely execution of sales contracts which resulted in huge loss to the company in the form of LD charges.

(v) In our opinion and according to the information and explanation given to us, the company has not received any public deposits during the year. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

(vi) In our opinion and as per the information and explanation given to us, maintenance of cost records has been prescribed in pursuant to the Rules made by the Central Government under Section 148(1) of the Companies Act, 2013 but neither the cost records since the financial year -2008-09 were maintained nor any cost audit was conducted for the same period till the date of our audit.

(vii) In respect of statutory dues:

(a) According to information and explanations given to us and on the basis of our examination of the records of the company, amounts deducted / accrued in the books of account has generally been deposited regularly in respect of undisputed statutory dues including Provident Fund, employees state insurance (ESI), Income-tax, Tax deducted at sources, Tax collected at source, Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it, with the appropriate authorities. As explained to us, the Company did not have any dues on account of Investor Education and Protection Fund. According to the information and explanations given to us, no undisputed amounts payable in respect of statutory dues were in arrears as at 31 March, 2015 for a period of more than six months from the date they became payable (b). According to the information and explanations given to us, there are dues of income tax and custom duty at the end of the year under audit which have not been deposited on account of any dispute. The details are as under:

Year Nature of Statutory Amount Remark Dues

2013-14 Custom Duty 192.81 lacs Appeal is pending before appropriate authority

2007-08 Income Tax 34.61 Lacs Appeal is pending before appropriate authority

(c) According to the information and explanations given to us, there has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of reporting delay in transferring such sums does not arise as at 31st March, 2015, Order is not applicable to it.

(viii) The accumulated losses of the company are not more than 50% of its Net Worth. The company has not incurred any cash loss during the current financial covered by our Audit and in the immediately preceding financial year.

(ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders.

(x) In our opinion, and according to the information and the explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

(xi) The company has not obtained any term loan during the year. Accordingly paragraph 3(xi) of order is not applicable.

(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For Hari & Associates CA. Sachin Kumar Jain

Place: New Delhi Chartered Accountants Partner

Date: 20/08/2015 (Firm Registration No.: 001852C) (Membership No.:094187)


Mar 31, 2014

1.0 We have audited the accompanying financial statements of Bharat Immunological & Biological Corporation Limited which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and othe r explanatory information.

Management''s Responsibility for the Financial Statements

2.0 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 sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13 September 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

3.0 Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4.0 An audit involves performing procedures to obtain audit evidence about the amount 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 marking those risk assessments, the auditors considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing of opinion on the effectiveness on the company''s internal control. An audit also include evaluating the appropriateness of accounting policies used and the reasonable of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

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

Opinion

6.0 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 subject to matter stated under point number- i, ii, vii, viii & ix of CARO report and in Note No. 19 for the impairment of fixed assets in terms of the AS-28 issued by the ICAI, Note no 20 for the non identification of old / slow moving inventory and note no 15 for the over expenditure in the revenue grants, so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

b) In the case of the Statement of Profit and Loss account, of the profit for the year ended on 31st March, 2014; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended 31st March, 2014.

7.0 Report on other legal & regulatory requirements

7.1 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 i n paragraphs 4 and 5 of the Order.

7.2 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 and have found the same to be satisfactory;

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 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 and Loss and Cash Flow Statement, comply with the Accounting Standards referred to in subsection(3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs on respect of section 133 of the Companies Act,2013 except the AS-28 for the impairment of the assets

e) Being a government Company, pursuant to the Notification No. GSR 829 (E) dated 21'' October 2003 issued by Department of Company Affairs, provision to clause (g) of sub- section (1) of Section 274 of the Companies Act, 1956, are not applicable to the company.

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

RE: Bharat Immunological And Biological Corporation Limited

In respect of fixed Assets:

i. a.The Co is not maintaining the fixed assets register showing full particulars including quantitative details, locations, assets classification, accumulated depreciation etc.

b. The fixed assets are not physically verified by the management during the year.

c. In our opinion and according to the information and explanations given to us, during the year the unit has not disposed off any substantial part of the Fixed Assets.

ii. a. The inventory of finished goods is not physically verified by the management.

b. The procedures of physical verification of inventories followed by the management needs to be strengthen looking 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 records required further improvement in the maintenance of inventory particularly raw material, finished goods and the stores. Co is not having any scrap disposal system in force.

d. It is explained to us that there is no work-in-process at the year-end.

iii. According to the information and explanations given to us, Company neither has accepted nor granted any secured/unsecured loans, to/from Companies, Firms or Parties covered under Section 301 of the Companies Act, 1956. Accordingly, clause (iii)(b)to (iii)(d),(iii)(f) & (iii)(g) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003 are not applicable.

iv. In our opinion and according to the information and explanations given to us Internal control system is weak with regard to the identification of slow/non moving inventory, Accounting posting of various voucher, deduction of Tax on advance payment, Recoverability of LD from the Customers, physical verification of inventory and fixed assets. During the course of our audit, we have observed that internal control system is weak in the above areas which needs to be strengthening.

v. On the basis of our examination of books of accounts, and as per information and

explanation given to us, company has not made any transactions in respect of any party during the financial year that needs to be ertered in the register pursuant to the section 301 of the Companies Act, 1956.

vi. In our opinion and according to the information and explanations given to us, the Co has not accepted any deposits from the public during the year and hence the directive issued by the Reserve bank of India and the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

vii. Internal audit has been carried by an independent audit firm and reports for the year were submitted very late, which defeats the very purpose of the audit further action taken report are submitted very late by the unit. In our opinion the internal audit system is not commensurate with the size and nature of its business.

viii. In our opinion and as per information and explanations given to us, maintenance of cost records has been prescribed by the Central Government under Section 209(1 )(d) of the Companies Act, 1956 for the products manufactured by it but neither the cost records nor cost audit report since FY. 2008-09 to till date has been provided to audit for verification.

ix. a. According to the records of the Co and the information and explanations given to us, the Co is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sale Tax, Wealth tax, Service tax, custom duty, excise duty, cess and other statutory dues applicable to it with appropriate authorities.

b. According to the information and explanations given to us, no undisputed amounts payable in respect of employees'' state insurance, income tax, wealth tax, sales tax, service tax, customs duty, excise duty and cess were outstanding, as at 31st march 2014 for a period of more than six months from the date they become payable.

c. according to the information and explanations given to us and records of the co examined by us, there were no dues of sales tax, income tax, customs duty, wealth tax, service tax, excise duty and cess as at 31st March 2014 which have not been deposited on account of a dispute.

x. Accumulated losses of the company does not exceeds fifty percent of its net worth at the end of the financial year and the company has not incurred any cash losses in the current and immediately preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the co has not defaulted in repayment of dues from the financial institutions and banks.

xii. In our opinion and according to the information and explanation given to us, the Co 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 and according to the information and explanation given to us, the company is not a chit fund/nidhi/mutual fund/ society to which the provisions of special statute relating to chit fund are applicable.

xiv. In our opinion and according to the information and explanation given to us, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause (xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable.

xv. As explained to us by the management, the Co has not given guarantee for loans taken by the others from Banks or financial institutions, the terms and conditions where of are prejudicial to the interest of the Mint. Accordingly, the provision of clause (xv) of the Companies (Auditor''s Report) Order, 2003 is not applicable.

xvi. According to the information and explanations given to us and records of the Co examined by us, the Co has not availed any term loan during the year.

xvii. According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Co, we report that during the year short term funds have not been used for long term i nvestment.

xviii. The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

xix. The company has not issued any debentures duri ng the year.

xx. During the year no money has been raised by Public issues.

xxi. As certified by the management that No fraud on or by the company has been noticed or reported during the year.

For RESHMA AND COMPANY Chartered Accountants, Firm Regd No. 007593C

(Deepak Mittal) Place: Bulandshahr Partner Date: 27.10.2014 (M.No. 074979)


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Bharat Immunological & Biological Corporation Limited, which comprise the Balance Sheet as at March 31 2013, 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

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 sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). 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 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. ln 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 subject to matter stated under point number- i., viii. & ix. of CARO report and in Note No. 13 (p) & (r) for impairment of assets in accordance with the accounting standard 28, of the Institute of Chartered Accountants of India 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 and Loss, of the profit for the year ended on that date; and

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

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.

3. 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 and 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 and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection(3C) of section 211 of the Companies Act, 1956;

e) Being a government Company, pursuant to the Notification No. GSR 829 (E) dated 21'' October 2003 issued by Department of Company Affairs, provisions of clause (g) of sub- section (1) of Section 274 of the Companies Act, 1956, are not applicable to the company.

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 to the Auditors'' Report

The Annexure referred to in Paragraph (3) of our report of even date to the members of Bharat Immunological And Biological Corporation Limited on the accounts of the Company for the year ended on March, 31, 2013)

In respect of fixed Assets:

a. The Company is not maintaining fixed assets records of showing full particulars including quantitative details, location, assets classification, identification number, accumulated depreciation etc.

b. According to information and explanation given to u s, verification of

Fixed Assets conducted once in a year by the management of the Company but it is not in satisfactory format and also as reported above Fixed Assets register is not maintained in required format hence no comment.

c. During the year the Company has not disposed off any part of Fixed Assets, so as to affect the going concern.

In respect of inventories:

a. The Management has physically verified the inventories of finished goods and raw materials at the year end, which is reasonable.

b. In our opinion and according to the information and explanations given to us, 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.

a. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records, if any has been properly dealt with in the books of accounts.

b. It is explained to us that there is no work-in-process at the year-end.

iii. According to the information and explanation given to us the Company neither has accepted nor granted any secured/unsecured loans, to/from Companies, Firms or Parties covered under Section 301 of the Companies Act, 1956. Accordingly, clause (iii)(b)to (iii)(d),(iii)(f) & (iii)(g) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003 are not applicable.

iv. In our opinion, and according to 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 for the purchase of inventory, fixed assets and for the sale of goods and services.

v. On the basis of our examination of books of accounts, and as per information and explanation given to us, the company has not made any transactions in respect of any party during the financial year that needs to be entered in the register pursuant to the section 301 of the Companies Act, 1956.

vi. The company has not accepted any deposits from the public during the year covered under section 58A and 58AA or any other relevant provision of the Companies Act, 1956.

vii. In our opinion, the company''s internal audit system is commensurate with its size and nature of its activities.

viii. As informed to us by the management of the Company the maintenance of cost records has been prescribed by the Central Government of India Under Section 209(1 )(d) of the Companies Act, 1956 but neither cost records nor cost audit report since financial year 2008-09 to till date have been provided to us for our verification.

ix. According to the records of the Company, the Company is regular in depositing with appropriate authority regarding undisputed statutory dues like Provident Fund, State Insurance Scheme, Income Tax, Sale Tax etc. as are applicable & no undisputed amount of such dues are outstanding for more than six month from due date except service tax liability payable under reverse charge mechanism and on transportation facility provided to buyer which approximately comes to Rs.5,09,815.00.

x. Accumulated losses of the company does not exceeds fifty percent of its net worth at the end of the financial year however in immediately previous financial year accumulated losses exceeds to fifty percent of its net worth and company has not incurred any cash losses in the current and immediately preceding financial year.

xi. Based on our audit procedure and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution, bank and debentureholders. xii. In our opinion, the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. In our opinion, the company has maintained adequate documents and records in respect of such loans. xiii. The company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the order not applicable.

xiv According to the information and explanation given to us, the company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, clause 4 (xiv) of the order is not applicable.

xv. According to the information and explanation given to us, Company has not given guarantees for - loans taken by others from banks or financial institutions. Accordingly, the provisions of clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 is not applicable.

xvi. On the basis of review of utilization of funds pertaining to term loans on overall basis and related information as made to us, the term loans taken by the company have been utilized for the purposes for which they are obtained.

xvii. According to the information and explanation given to us, company has not utilized short-term loan for long-term investment during theyear.

xviii. The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

xix. The company has not issued any debentures during the year.

xx. During the year no money has been raised by Public issues.

xxi. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year. For RASOOL SINGHAL & CO.,

Chartered Accountants, FR.No. 500015N

(Sandeep Gupta)

Place: Bulandshare Partner

Date: 26.08.2013 (M.No. 413890)


Mar 31, 2010

We have audited the attached Balance Sheet of M/s Bharat Immunological & Biological Corporation Limited, Village Chola- 203203 Distt. Bulndshahr (U,P.) as at 31st March 2010, the Profit & Loss Account for the year ended on that date, and the Cash Flow Statement for the year ended on that date both annexed thereto on the basis of the returns and vouchers received at Company Office. These financial statements are the responsibility of the Companys Management. Our responsibility to express an opinion on these financial statements based on our audit.

1. We have 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 from material mis-statement. An Audit includes examining, on test basis, evidences supporting the amounts and disclosures in the financial statement. 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.

2. As required by the statement on the Companies (Auditors Report) order 2003 issued by the Central Government of India in terms of sub-section (4 A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matter specified in paragraph 4 and 5 of the said Order.

3. Attention is drawn on the following:-

a. Read with Note no. 8 - Balances under Loans & Advances, Sundry Debtors & Sundry Creditors, which are pending for confirmation. The consequential impact of which is not ascertainable.

b. The company has not provided for any effect due to the impairment of assets in accordance with the Accounting Standard 28 of the Institute of Chartered Accountants of India. The consequential impact of which is not ascertainable.

4. Further to our comments in the Annexure referred to above, we report that:-

a. We have obtained all the information and explanations except as mentioned in para 3, 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 except cost records, as required by law have been kept by the Company, so far as appears from our examination of those books;

c. The Balance Sheet, Profit & Loss Account and Cash Flow statement dealt with by this report are in agreement with the Books of Accounts.

d. In our opinion, the Balance sheet, Profit & Loss account and the Cash Flow Statement dealt with by this report comply with Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 except AS-17 (Segment Reporting) and AS-28 (Impairment of Assets).

e. Being a Government Company, the disclosure in terms of clause (g) of sub-section 274 of the Companies Act, 1956 is not required as per notification number GSR 829(E) dated October 21, 2003 issued by the Department of Company Affairs.

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and subject to matter stated in para-3 above and Note Number- 3 of notes of account of schedule X, give a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of Balance Sheet of the state of affairs of the Company as at 31s March, 2010;

b. in the case of the Profit & Loss Accounts, of the Loss for the year ended on that date; and

c. in the case of Cash.FJow Statement, of the cash flow of the company for the year ended on that date.

Annexure to the Auditors Report

The Annexure referred to in para 3 of our report of even date to the members of M/S Bharat Immunological & Biological Corporation Limited on the accounts of the Company for the year ended March 31, 2010.

1. In respect of Fixed Assets:- I

a. The Company is not maintaining proper fixed assets records of showing the quantitative details,location, assets classification, identification number, accumulated depreciation.

b: According to information and explanation given to us verification of fixed assets been conducted once in a year but as fixed assets records are not proper no comment on discrepancies in records and physical verification.

In our opinion there was no substantial disposal during the year.

2. In respect of Inventory:

a. As explained to us, inventories were physically verified at the year-end by the Management.

b. In our opinion and according to information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

c. In our opinion and according to information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

d. It is explained to us that their was no work-in-process at the year end.

3. The Company-neither has accepted nor granted any secured/unsecured loans, to/from Companies, firms or parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, clause (iii)(b) to iii(d) of paragraph 4 of the Companies (Auditors Report) Order, 2003 are not applicable.

4. The Company has adequate internal control system/ procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets. Further on the basis of our examination of the books and records except fixed assets records of the company and accordingly information and explanation given to us, we have neither come across nor have been informed of any continuing failure tp correct major weakness in the aforesaid internal control system.

5. According to the records of the Company and information and explanation given to us, during the year the Company has not made any transaction that need to enter into a register in pursuance to section 301 of the Act. Accordingly, clause(iii)(b) to iii(d) of paragraph 4(v)(b) of the Companies( Auditors Report) Order, 2003 is not applicable

6. According to the records, the Company has not accepted any deposits from the public during the year as are covered under section 58A & 58 A A or any relevant provision of the Companies Act, 1956. Accordingly clause (vi) of paragraph 4 of the Companies (Auditors Report) Order, 2003 is not applicable.

7. The Company has an internal audit system commensurate with its size and nature of its business.

8. As informed to us by the management of the Company the maintenance of cost records has been prescribed by the Central Government of India Under Section 209(1 )(d) of the Companies Act, 1956 but no records have been maintained by the company.

9. According to the records of the Company, the Company is regular in depositing wjth appropriate authorities undisputed Income Tax and other Statutory Dues during the year and there are no undisputed statutory dues outstanding at the year end for a period for more than six months from the payment of due date.

10. As informed and explained to us the accumulated losses of the company at the year end are more than fifty percent of its net worth. The company has incurred cash losses in the current financial year as well as immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not accepted any loan from financial institution during the year and there was no outstanding loan. Accordingly to provisions of Clause 4(xi) of the Companies (Auditors Report) Order, 2003 is not applicable to the company.

12. According to the information and explanations given to us, based upon the documents and records produced before us for our verification, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other Securities. Accordingly, the provisions of Clause (xii) of the Companies (Auditors Report) Order, 2003 is not applicable.

13. According to the information and explanations given to us, the company is not a chit fund or a nidhi/ mutual benefit fund/society. Accordingly, the provision of clause (xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

14. According to information and explanations given to us the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

15. According to the information and explanation given to us, Company has not given guarantees for loans taken by others from banks or financial institutions. Accordingly, the provisions of clause 4(xv) of the Companies (Auditors Report) Order, 2003 are not applicable.

16. According to the information and explanation given to us, Company has not obtained any term loan during the year, and also no loan was outstanding beginning of the year. Therefore, the provisions of clause 4(xvi) of the Companies (Auditors Report) Order, 2003 are not applicable.

17. According to the information and explanations given to us and on overall examinationl of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term assets. No long- term funds have been used to finance short-term assets.

18. The company has not made any preferential allotment of share to the parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. During the year the Company has not made any allotment of shares and debentures. Accordingly, the provisions of the clause 4(xviii) and clause 4(xix) of the Companies (Auditors Report) Order, 2003 are not applicable.

20. During the year the Company has not raised money by Public Issue. Accordingly clause 4(xx) of the Companies (Auditors Report) Order, 2003 is not applicable.

21. During the course of examination of the books and records of the Company, carried out in accordance with the auditing standards generally accepted in India, we have neither come across any instance of fraud by the Company, noticed or reported during the year, nor have been informed of such case by the management.

For RASOOL SINGHAL & CO

Chartered Accountants,

(Praveen Gupta)

Partner

(M.No. 073489) (F.R.No. 500015n)

Place: Bulandshare.

Date: 12.07.2010


Mar 31, 2009

1. We have audited the attached Balance Sheet of M/s. Bharat Immunologicals & Biologicals Corporation Ltd .as at 31st March, 2009, the Profit and Loss Account and also the cash flow statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 misstatement. An audit includes examining, on a lest 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.

3. 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. I956 and on the basis of such checks as we considered appropriate, and according to the information and explanation given to us. we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 & 5 of the said Order

4. further to our comments in the annexure referred to in paragraph 3 above, we report that;

a) The application of Part-B under Vth Pay Commission was clarified as not applicable to Public Sector Undertaking by Department of Public Enterprises, Government of India vide circular dated March 12, 1999 whereas the same has already been applied by Company and not withdrawn even after getting the above said circular till, 31/03/2009. As per information supplied to us an amount of Rs.40.62 lacs has been paid in excess up to 31/03/2009 to the employees in contravention to the above said circular given by Department of Public Enterprises, Government of India. This has resulted in overstatement of accumulated losses by Rs.28.07 lacs and overstatement of deferred tax assets by Rs.12.55 lacs and understatement of current assets, loans and advances by Rs.40.62 lacs.

b) An amount of Rs.14.61 lacs has been claimed by IFCI on account of variation in calculation of interest tax/ simple interest during the year 2003-04. The Company has not accepted the same and Rs.14.61 lacs has been returned back and credited to P& L Account in Financial Year 2003-04 in terms of agreed one time settlement with term lenders. This amount should have been shown in "Note on Accounts" under "Contingent Liabilities" as Claims against the Company not acknowledged as debt due..

a) Non disclosure of contingent liability on account of central Sales Tax arising due to interstate sale of OPV bulk (raw material) by acceptance of declaration under "C" form without authorization under Central Sales registration. Amount unascertained.

d) Non accounting of Rs.24,59,161/- as capital work in progress as the game has wrongly been charged against capital grant over and above allocated sanctioned capital grant for Zinc Project from Government of India. To this extent, capital work in progress as well as Zinc Project Capital Grant are understated (Refer Note No. 13 (a) of notes on Accounts of Schedule IX).

e) Non- accounting of waste material and interest on security deposit with UPPCL on accrual basis. Amount undetermined (Refer Policy (vi) of Significant Accounting Policies of Schedule IX).

0) Short provision of liability of Rs.55,02,820/- on account of salary due to 6th pay commission recommendation resulting in under statement of loss by Rs:38.03 lacs, under statement of deferred tax assets by Rs.17.00 lacs and under statement of Other liability by Rs.55.03 lacs.

(ii) Non provision of liability of Rs.8,18,024/- on account of salary due to staff deployed on Zinc Project due to 6th pay commission recommendation resulting in over statement of zinc project capital grant balance and under statement of Other liabilities by the same amount.

g) Non confirmation of balances in respect loans and advances, debtors and creditors, the consequential effect of which is not quantifiable - (Refer Note No. 6 of Notes on accounts of Schedule IX).

h) We are unable to comment as to the adequacy of provision of Rs.10 lacs made on ad-hoc basis on account of leave salary without obtaining actuarial valuation, which is in contravention of accounting standard - 15 issued by lCAI.

i) The company has not ascertained value of impaired assets as required by Accounting Standard 28. Impairment of assets issued by ICAI.

5 We report that had the observations made by us in para 4 been considered, Current Assets, Loans & Advances would have been Rs. 1715.28 lakhs (against Rs. 1674.66 lakhs as reported in balance sheet), accumulated losses would have been Rs. 1436.66 lakhs (against Rs. 1426.70 lakhs) and Deferred Tax Assets would have been Rs.526.57 (against Rs.522.12 lakhs). Capital work in progress would have-been Rs. 138.03 lakhs (against Rs. 113.44 lakhs as reported in Balance Sheet) and Other liabilities would have been Rs. 471.73 lakhs (against Rs. 408.52 lakhs) and Zinc Project Capital Grants liability would have been Rs 57.49 (against Rs. 41.08 lakhs).

6. Subject to our comments in paras 4& 5 and clauses 1,2 &-8 of annexure referred to in para 3 above, we report that:

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

b) In our opinion proper books of accounts except cost records, as required by law, have been kept by Company, so far as appears from our examination of those books;

c) The Balance Sheet, Profit & Loss Account and Cash flow statement dealt with by this report are in agreement v books of Account;

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by the report coi with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ex otherwise stated;

e) Being a Government Company, pursuant to Gazette notification No. GSR-829(E) dated 21.10.2003 issued by Government of India, provision of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956, are applicable to the Company;

0 In our opinion and to the best of our information and according to the explanations given to us, the said acco read together with the significant accounting policies and notes thereon of Schedule IX give the inform; required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with

a. in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2009

b. in the case of Profit & Loss Account, of the losses for 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.

Annexure to the Auditors Report

Referred to in paragraph 3 of our report of even date to the members of Bharat Immunologicals & Biologicals Corporation Ltd.,Village & P.P. Chola - 203203 Distt. Bulandshahr.

1. The Company is not maintaining proper recodes showing full particulars of fixed assets. Though the quantitative details are mentioned in the register, but (a) fixed assets register does not give details of assets classification, identification number and situation of fixed assets; (b) entries relating to depreciation including rates thereof have not been recorded in the fixed assets register. Though, the fixed assets claimed to have been physically verified by the Management during the year, but related working papers were not available for out verification. Also, there was a failure to determine discrepancies on such verification as the same have not been compared with book records thereof.

No fixed asset was disposed off during the year and therefore going concern assumption is appropriate.

2. Physical verification of inventory has not been conducted by the management during the year.

The company is maintaining proper records of inventory, however, in the absence of physical verification of inventories; we are unable to comment as to the discrepancy, if any, between the book records and physical stock thereof.

3 . According to the information and explanation given to us by the management and records produced, the company has neither granted nor taken any loan during the year, secured or unsecured, to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Thus, the requirements under para 4(iii)(b) to (d) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, having regard to the explanation that certain item purchased are of special nature for which suitable alternative sources do not exist for obtaining comparative quotations, there is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and for the sale of goods. Further on the basis of our examination of the books and records of the company, and according to the information and explanation given to us, we have neither come, across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid in the internal control system.

5. According to the information and explanations given to us by the management and records produced, there are no transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956. Thus the requirement under para 4 (v) (b) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

6. According to the information and explanations given to us, the Company has not accepted any deposits from the public and therefore, the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the Act and the rules framed there under are not applicable to the company.

7. In our opinion the company has an internal audit system commensurate with the size and nature of its business.

8. The Central government has prescribed maintenance of cost records under section 209(1 )(d) of the companies Act, i956. No cost records have been made or maintained by the company.

9. a) According to the records of the company, the company is regular in depositing undisputed statutory dues including provident fund, investor education & protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise^ duty and other statutory dues with the appropriate authorities and there are no undisputed statutory dues outstanding as on 31.03.2009 for a period of more that six months from the date they became payable.

b) Sales tax dues amounting to Rs. 1,74,0001/- has not been deposited for the financial year 2000-01 demanded by sales tax authorities against order issued uls 21 (2) for the misuse of Form 3B. Company has appealed against the order and the appeal is pending before additional commissioner, Sales Tax, Bulandshahr (UP).

10. The accumulated losses of the company at the end of current financial year are less than fifty per cent of its net worth. The company has suffered cash losses in the current financial year as well as in the immediately preceding financial year.

11. The company is a debt free company, so question of default by the company in repayment of dues to financial institution, bank or debenture holder do not arise.

12. Accordingly to the information and explanations given to us and based on the documents and records produced before us, and based on the documents and records produced before us for our verification, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanations given to us, the nature of activities of the company does not attract any special statute applicable to chit fund and nidhi/mutual benefit fund societies.

14. In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003, are not applicable to the company.

15. According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions during the year. . - ¦

16. According to the information and explanations given to us, the company has not taken any term loan during the year.

17. According to the information and explanations given to us, no funds have been raised on short-term basis during the year.

18. During the year the company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The company did not have any outstanding debentures during the year.

20. The company has not raised any money through public issue during the year.

21. Based on the audit procedures performed and according to the information and explanations given to us by the management we report that no fraud on or by the company has been noticed or reported during the year.

For Gianender & Associates Chartered Accountants

Place : New Delhi

Date:: 11.11.2009 (G.K. Agrawal)

Partner Membership No. 81603

 
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