Mar 31, 2018
Report on the Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying Ind AS financial statements of Jagsonpal Pharmaceuticals Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement, Statement of changes in Equity and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. 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 judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
3 Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including 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 thereunder.
5. We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS 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 the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS 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 Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at March, 31, 2018, and its total comprehensive income (comprising of loss and other comprehensive income), its cash flows ,the changes in Equity of the company and a summary of significant accounting policies and other explanatory information for the year ended on that date.
Other Matter
9. The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2017 included in these Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2017 and March 31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditor who expressed an unmodified opinion.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (âthe Orderâ), 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, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. 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 (including other comprehensive income), the Cash Flow Statement and changes in Equity Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
(i) The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its Ind AS financial statements - Refer Note 24
(ii) The Company did not have any long-term contracts including derivative contracts as at March 31, 2018.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
ANNEXURE A TO INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 11(f) of the Independent Auditorsâ report of even date to the Members of Jagsonpal Pharmaceuticals Limited on the Ind AS financial statements for the year ended March 31, 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial reporting of Jagsonpal Pharmaceuticals Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls over financialreporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (theâGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining and understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial reporting
6. A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial control over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE B TO INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 10 of the Independent Auditorsâ report of even date to the Members of Jagsonpal Pharmaceuticals Limited on the Ind AS financial statements as of and for the year ended March 31, 2018
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties as disclosed in Note 3 on Property, Plant and Equipment to the Ind AS financial statements, are held in the name of the Company,
ii. The Inventory except for goods in transit has been physically verified by the management at reasonable intervals during the year .In respect of inventory lying with third parties, to the extent, such inventories have not been physically verified by the management, such inventories have been substantially confirmed by the third parties. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts .
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments, or provided any guarantees or security to the parties covered under Section 185 and 186 of the Act. Therefore, the provisions of Clause 3 (iv) of the said Order are not applicable to the Company.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, customs duty, excise duty , value added tax, Goods and Service Tax , cess and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sales tax, service tax, duty of customs and duty of excise value added tax as at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
viii. The Company has neither availed any loans or borrowings from any financial institution or bank or Government, nor has it issued any debentures as at the balance sheet date, the provisions of Clause 3(viii) of the Order are not applicable to the Company.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the Ind AS financial statements as required under Indian Accounting Standard ( Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors or persons connected with them. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For H L Bansal & Co.
Chartered Accountants
(Firmâs Registration No. 008563N)
HIRA LAL BANSAL
Place : Delhi Proprietor
Date : 30/05/2018 (Membership No. 086990)
Mar 31, 2016
Independent Auditorâs Report
To The Members, Jagsonpal Pharmaceuticals Limited
Report on the Financial Statements
We have audited the accompanying financial statements Jagsonpal Pharmaceuticals Limited (the Company), which comprises the balance sheet as at 3 -March 2016, the statement of profit and loss, the cash flow statement for year then ended, and a summary of the significant account policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for t matters stated 34(5) of the Companies Act, 203 (the Act)â with respect to the preparation of these financial statement to give a true and fair view of the financial position, finance performance and cash flows of the Company in according with the accounting principles generally accepted in Indi including the Accounting Standards specified under Section 33 of the Act, read with Rule 7 of the Companies (Account Rules, 204. This responsibility also includes maintenance of adequate accounting records in accordance with t] provisions of the Act for safeguarding the assets of 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 adequate internal financial controls, that w operating effectively for ensuring the accuracy a completeness of the accounting records, relevant to t preparation and presentation of the financial statements give a true and fair view and are free from mate misstatement, whether due to fraud or error.
Auditorâs 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 Rules made there under including the account! standards and matters which are required to be included the audit report.
We have conducted our audit in accordance with t Standards on Auditing specified under Section^3(^) of the Act and other applicable authoritative pronouncement issued by the Institute of Chartered Accountants of Ii Those Standards and pronouncements require that we come with ethical requirements and plan and perform the audit obtain reasonable assurance about whether the finance statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in t financial statements. The procedures selected depend the auditors judgement, including the assessment of the ri of material misstatement of the financial statements, what due to fraud or error. In making those risk assessment; auditor considers internal financial control relevant to
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 nether manner so required and give a true and fair view in conformity with the accounting principles generally accepted deing India, of the state of affairs of the Company as at March 31 206 and its profit and its cash flows for the year ended them that date.
^port on Other Legal and Regulatory Requirements
A required by the Companies (Auditors Report) Order, the , issued by the Central Government of India in terms sub-section (1) of section 43 of the Act, (hereinafter referred to as the Order), and on the basis of such checks the books and records of the Company as we considered appropriate and according to the information and explanation driven to us, we give in the Annexure A statement on the natters specified in the paragraphs 3 and 4 of the Order.
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 '' a 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 I gn and the cash flow statement dealt with by this Report in are in agreement with the books of account;
(ed) 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; idea.
e) On the basis of the written representations received t to from the directors as on 3âMarch 206 taken on record by the Board of Directors, none of the directors is disqualified as on 3 â March 206 from being appointed as a director in terms of Section 64 (2) of the Act; and
e) With respect to the adequacy of the internal financial on controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our there separate Report in Annexure B. s, the
(g) With respect to the other matters to be included in the ; internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the
Auditors Report in accordance with Rule 1 of the Companies (Audit and Auditors) Rules, 204, in our opinion and to the best of our knowledge and believe and according to the information and explanations give to us:
i. The Company has disclosed the impact, if any, pending litigations as at March ,305 on its financial position in its financial statement Note no. 23 of the financial statements;
ii. The Company did not have any long term contact including derivative contracts as at March 3, 205
iii. There has been no delay in transferring am required to be transferred, to the Invest; Education and Protection Fund by the Company during the year ended March 31 2015.
Guidance Note of Internal Financial Controls Over Financial
Reporting (the Guidance Note)â and the Standards of Auditing deemed to be prescribed under section 43(0) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and s in the Guidance Note required that we comply with ethical requirements and plan and perform the audit to obtain treasonable assurance about whether adequate internal financial controls over financial reporting, assessing the risk that a material weakness exists, and resting and evaluating aunt the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
Our audit involves performing procedures to obtain evidence about the adequacy of internal financial controls systems over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the of material misstatement of the financial statement, whether due to fraud or error.
Annexure B to Independent Auditorâs
Referred to the Independent Auditors -report of even date the members of axonal Pharmaceuticals Limited on the financial statements for the year ended March 31 2016
Report on the Internal Financial Controls under Clause(i Sub-section 3 of section 43 of the Act
We have audited the internal financial controls over fine reporting of Jagsonpal Pharmaceuticals Limited (the Company) as of March 3} 205 in conjunction with our audit of the financial statements of the Company for the ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on tl internal control over financial reporting criteria establish by the Company considering the essential components o internal control stated in the Guidance Note on Audit Internal Financial Controls over Financial Reporting is by the Institute of Chartered Accountants of India (IC These responsibilities include the design, implementation and maintenance of adequate internal financial controls the were operating effectively for ensuring the orderly and efface conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention a detection of frauds and errors, the accuracy and complete of the accounting records, and the timely preparation of relied financial information, as required under the Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Company We- believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial control system ever financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting hid the preparation of financial statements for external âpurposes in accordance with generally accepted Accounting principles. A companyâs internal financial control over financial reporting includes those policies Attitudes that
11) pertain to the maintenance of records that, in reasonable hat detail, accurately and fairly reflect the transactions and patient dispositions of the assets of the company;
s(2) provide reasonable assurance that transactions are nd recorded as necessary to permit preparation of financial e statements in accordance with generally accepted able accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the s company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or. disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent Limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the. internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31206, based on the internal control over financial reporting criteria; established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountant of India.
Annexure A to Independent Auditorâs Report
Referred to the Independent Auditors Report of even date to the members of Jagsonpal Pharmaceuticals Limited on the financial statements as of and for the year ended March 31 2016.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 9 on fixed assets to the financial statements, are held in the name of the Company.
The inventory has been physically verified by the Management during the year. In respect of inventory lying with third parties, to the extent, such inventories have not been physically verified by the management, such inventories have been substantially confirmed by the third parties. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.
The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section B9 of the Act. Therefore, the provisions of Clause 3(iii), (iii) (a), (iii) (b) and (iii) (c) of the said Order are not applicable to the Company.
The Company has not granted any loans or made any investments, or provided any guarantees or security to the parties covered under Section 185 and 186 of the act. Therefore, the provisions of Clause 3(iv) of the said Order are not applicable to the Company.
The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 7 6 of the Act and the rules framed there under to the extent notified.
We have broadly reviewed the books of account and records maintained by the Company pursuant to the Companies (Cost records and Audit) Rules, 204 as prescribed by the Central government for the maintenance of cost records under Section 148 (I) of the Act relating to the manufacture of Bulk Drugs and pharmaceuticals specialties and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained, We have, however , not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of employeesâ state insurance, income tax and value added tax, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory dues, including provident fund, sales tax, service tax, duty of customs, duty of excise, cess and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanation given to us and the records of the Company examined by us, there are no dues of duty of customs which have not been deposited on account of any dispute. The particulars of dues of Income tax, sales tax, service tax, duty of excise and value added tax as at Mach
3, 2016 which have not been deposited on account
of a dispute, are as follows:
viii. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks and Governments. Therefore, paragraph 3(viii) of the Order is not applicable.
Name of the statute |
Nature of dues |
Amount (in Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
Sales Tax, Entry Tax And Value Added Tax |
||||
VAT (Jaipur) |
Demand |
5522 |
2008-2009 S |
sales Tax Authority |
VAT (Patna) |
Demand |
525561 |
2009-200 |
doâ |
VAT( Kashipur) |
Demand |
4401 |
20C5-2OC6 |
deâ |
CST(Kolkata) |
Demand |
23 250 |
2008-2009 |
doâ |
CST(Kolkata) |
Demand |
94002 |
20&20H |
doâ |
VAT (Kolkata) |
Demand |
2904851 |
2008-2009 |
doâ |
VAT (Kolkata) |
Demand |
570708 |
2009-200 |
doâ |
VAT (Kolkata) |
Demand |
5893474 |
20&20111 |
doâ |
VAT (Pune) |
Demand |
87070 |
2002-2003 |
doâ |
VAT (Chennai) |
Demand |
3806591 |
2008-2009 |
doâ |
VAT (Chennai) |
Demand |
553 9 3 87 |
2009-200 |
doâ |
VAT (Chennai) |
Demand |
5800750 |
2010-2011 |
doâ |
VAT (Chennai) |
Demand |
75844 |
201-202 |
doâ |
VAT (Delhi) |
Demand |
3000 |
2011-2012 |
doâ |
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of clause 3(ix) of the Order are not applicable to the Company.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally, accepted auditing practices in India, andv. according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by they Management.
xi. The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section P7 read with Schedule V to the Act.
xii. As the Company is not a nidhi company and the nidhi Rules, 204 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company. Pl
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 77 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS)
B, Related Party Disclosures specified under Sect on 133 of the Act, read with Rule 7 of the Compan.es (Accounts) Rules, 204
. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under rev ew. Accordingly, the provisions of Clause 3(xiv) of the Older are not applicable to the Company.
The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, B34. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For P. P. THUKRAL & Co.
Chartered Accountants
SURESH SETHI
Partner Firmâs Registration
Place: New Delhi Number : 000632N
Date: 30/05/205 Membership No. : 089318
Mar 31, 2015
We have audited the accompanying financial statements of Jagsonpal
Pharmaceuticals Limited ('the Company'), which comprise the balance
sheet as at 31 March 2015, the statement of profit and loss and 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 Management is responsible for 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 maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, 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 specified u/s 143 (10) of the Act on Auditing issued by
the Institute of Chartered Accountants of India. Those Standards require
that we comply with the 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 the
disclosures in the financial statements. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers the
internal control relevant to the Company's preparation and fair
presentation of the financial statements in order to design audit
proceedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company's
internal control. An audit also includes evaluating the appropriateness
of the 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 31 March 2015
(b) in the case of the statement of profit and loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
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. 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, of the state of affairs of the Company as
at 31 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 Act, we give in the Annexure a
statement on the matters specified in the paragraph 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, the 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 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; and
(f) 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 in note no. 23.
ii. the Company does not have any long term contracts
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 Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31 March 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this programme, certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and the nature of
its assets.
(ii) (a) The inventory of the Company has been physically verified by
the management during the year. In respect of inventory lying with
third parties, these have substantially been confirmed by them. In our
opinion, the frequency of verification is reasonable
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management were found 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 records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification between the physical
stocks and the book records were not material in relation the
operations of the company.
iii a) The Company has not granted loans to any bodies corporate
covered in the register maintained under section 189 of the Companies
Act, 2013 ('the Act').
(b) Accordingly, paragraph 3(iii)(b) of the Order is not applicable to
the Company in respect of repayment of the principal amount.
(c) There are no amounts due in respect of the loans granted to the
bodies corporate listed in the register maintained under section 189 of
the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. The activities of the
Company do not involve purchase of inventory and the sale of goods. We
have not observed any major weakness in the internal control system
during the course of the audit.
(v) The Company has complied with provisions 73 to 76 of Companies Act,
2013.
(vi) The Central Government has prescribed the maintenance of cost
records under section 148(1) of the Act, We have not, however made a
detailed examinations of the records with a view to determine whether
they are accurate or complete.
(vii) (a) According to the 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 in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year by
the Company with the appropriate authorities. As explained to us, the
Company did not have any dues on account of employees' state insurance
and duty of excise. According to the information and explanations given
to us, no undisputed amounts payable in respect of provident Fund,
income tax, sales tax, wealth tax, service tax, duty of customs, value
added tax, cess and other material 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 no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute. However, according to information and explanations given to
us, the following dues.have not been deposited on account of disputes.
ANNEXURE OF CASES PENDING WITH VAT/SALES TAX AND OTHER LAWS
Name of the statute Nature of dues Amount
Vat/Sales Tax Raipur Demand 23553
Vat/Sales Tax Patna Demand 525561
Vat/SalesTax Kashipur Demand 145682
KOLKATA Nature of dues Amount
CST Demand 2131250
SALE TAX Demand 2904851
SALE TAX Demand 1670708
SALE TAX Demand 6893474
SALE TAX Â PUNE Demand 130000
SALE TAX Â CHENNAI Demand 4228435
SALE TAX Â DOÂ Demand 6154874
SALE TAX Â DOÂ Demand 6445289
SALE TAX Â DOÂ Demand 1964604
DELHI Nature of dues Amount
AT Demand 255.00
VAT Demand 2375.00
VAT Demand 4280.00
VAT Demand 10000.00
VAT Demand 0.00
VAT Demand 3000.00
VAT Demand 3000.00
Name of the statute Period to which Forum where the
the amount relates dispute is pending
Vat/Sales Tax Raipur 2010-2011 Sales Tax Authority
Vat/Sales Tax Patna 2009-2010 ÂdoÂ
Vat/SalesTax Kashipur 2005-2006 ÂdoÂ
KOLKATA Period to which Sales Tax Authority
the amount relates VAT AUTHORITY
2008-2009 -Do-
CST
2008-2009 -Do-
SALE TAX
2009-2010 -Do-
SALE TAX
2010-2011 -Do-
SALE TAX
2001-2002 Sales Tax Authority
SALE TAX Â PUNE
 VAT AUTHORITY
SALE TAX Â CHENNAI
 ÂDOÂ
SALE TAX Â DOÂ
 ÂDOÂ
SALE TAX Â DOÂ
 ÂDOÂ
SALE TAX Â DOÂ
Period to which Forum where the
DELHI the amount relates dispute is pending
AT 2007 Vat Authority
VAT 2010 ÂDoÂ
VAT 2007 ÂDoÂ
VAT 2007 ÂDoÂ
VAT 2012 ÂDoÂ
VAT 2013 ÂDoÂ
VAT 2013 ÂDoÂ
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, and rules there under has been transferred to such fund
within time
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
(x) In our opinion and according to the information and the explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) The Company did not have any term loans outstanding during the
year.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
for P. P. THUKRAL & Co.
Chartered Accountants
Firm's Registration
No.: 000632N
SURESH SETHI
Place : New Delhi Partner
Date : 29 May 2015 Membership No.: 089318
Mar 31, 2014
We have audited the accompanying financial statements of Jagsonpal
Pharmaceuticals Limited, which comprise the Balance sheet as at 31st
March 2014, the statement of profit and loss and the cash flow
statement for the year then ended and a summary of the significant
accounting policies and other explanatory information Management''s
Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956, ("the Act") which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal controls relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material mis-statements, 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material mis-statements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material mis- statement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the 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 an opinion on the
effectiveness of the company''s internal control. An audit also includes
evaluating the appropriateness of the 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 31 March 2014
(b) In the case of the Statement of Profit and Loss, ofthe profit ofthe
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, ofthe Cash Flows ofthe
Company 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 Section227 (4) 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 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 notified under
the Act (which continue to be applicable in respect Section 133 of the
Companies Act, 2013 on terms of General Circular 15/2013 dated 13 th
September, 2013 of the Ministry of Corporate Affairs)
e) On the basis of written representations received from the Directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of Section 274(1)(g) of ofthe Act,
1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph 4(1) of our report of even date)
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of a major portion of
fixed assets as at March 31, 2014 was conducted by the Management
during the year. In our opinion, the frequency of physical verification
is reasonable. Having regard to the size of the operations of the
company and on the basis of explanations received, in our opinion, the
net differences found on physical verification were not significant.
ii. (a) The inventory of the Company has been physically verified by
the management during the year. In respect of inventory lying with
third parties, these have substantially been confirmed by them. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management were found 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 records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification between the physical
stocks and the book records were not material in relation the
operations of the company.
iii. In our opinion, the company has neither granted nor taken any
loans, secured or unsecured from companies, firms or other parties
listed in the Register maintained under Section 301 of the Companies
Act, 1956. As the Company has not granted/taken any loans, secured or
unsecured, to /from parties listed in the registers maintained under
Section 301 of the Companies Act, 1956 clauses iii(b), iii(c) and
iii(d) of paragraph 4 of the order are not applicable.
iv. In our opinion and according to the explanations given to us,
having regard to the explanations that some of the items are of a
special nature for which alternative quotations are not available,
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. Further, on the
basis of our examination and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any instance of major weaknesses in the aforesaid internal
control procedures.
v. a. In our opinion and according to information and explanations
given to us, the transactions that need to be entered into the Register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, there are no such transactions exceeding Rs. Five lakhs
each which have been made at prices, which are not reasonable having
regard to the prevailing market prices, for such goods, materials or
services at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA of the
Companies Act, 1956 and the rules framed there under, where applicable,
with regard to deposits accepted from the public. As per the
information and explanations given to us no order under the aforesaid
sections has been passed by the Company Law Board on the company.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business
viii. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under Section 209(1)(d) of the Companies Act, 1956. We have not,
however made a detailed examination of the records with a view to
determine whether they are accurate or complete.
ix. (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of provident
fund, employees'' state insurance, income-tax, sales-tax, custom duty,
excise duty, cess and other as applicable have been regularly deposited
by the Company during the year with the appropriate authorities.
(b) As at 31st March, 2014 according to the records of the Company,
there are no dues of wealth tax, service tax and cess which have not
been deposited on account of any dispute.
x. The company has neither accumulated losses as at 31st March, 2014
nor it has incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
xi. Based on our audit procedures and on the information and
explanations given by management, we are of the opinion that the
company has not defaulted in repayment of its dues to any financial
institution or bank during the year.
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. The provisions of any special statute as specified under clause
(xiii) of paragraph 4 of the order are not applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities.
xv. The Company has not given any guarantees for loans taken by others
from banks or financial institutions, the terms and conditions,
whereof, in our opinion are prima facie, prejudicial to the interest of
the Company.
xvi. The Company has not obtained any term loans that were not applied
for the purpose for which these were raised.
xvii. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment, and vice versa.
xviii. The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 ofthe Companies Act, 1956 during the year.
xix. The Company has not raised any money by public issue during the
year.
xx. According to the information and explanations given to us, during
the year, no fraud by the company has been noticed or reported.
For P. P. Thukral & Co.
Chartered Accountants
F R No.: N000632
SURESH SETHI
Place : New Delhi Partner
Dated : 30th May, 2014 M.No. : 089318
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Jagsonpal
Pharmaceuticals Limited ("the Company"),which comprise the Balance
Sheet as at March 31, 2013, 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.
Managements'' 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 principles generally accepted in India including
Accounting Standards referred to in Section 211 (3C) 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
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 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 managements, 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 the out audit opinion.
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.
(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 cash flows for the
year ended on the 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 Section
227 (4A) 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, the 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in section 211 (3C) of the Act;
e) On the basis of the written representations received from the
directors as on March 31, 2013, 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 Section 274 (1) (g) of
the Act.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph (1) of our report of even date)
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of a major portion of
fixed assets as at March 31, 2013 was conducted by the Management
during the year. In our opinion, the frequency of physical verification
is reasonable. Having regard to the size of the operations of the
company and on the basis of explanations received, in our opinion, the
net differences found on physical verification were not significant.
(ii) (a) The inventory of the Company has been physically verified by
the management during the year. In respect of inventory lying with
third parties, these have substantially been confirmed by them. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management were found 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 records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification between the physical
stocks and the book records were not material in relation the
operations of the company.
(iii) In our opinion, the company has neither granted nor taken any
loans, secured or unsecured from companies, firms or other parties
listed in the Register maintained under Section 301 of the Companies
Act, 1956. As the Company has not granted/taken any loans, secured or
unsecured, to /from parties listed in the registers maintained under
Section 301 of the Companies Act, 1956 clauses iii(b), iii(c) and
iii(d) of paragraph 4 of the order are not applicable.
(iv) In our opinion and according to the explanations given to us,
having regard to the explanations that some of the items are of a
special nature for which alternative quotations are not available,
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. Further, on the
basis of our examination and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any instance of major weaknesses in the aforesaid internal
control procedures.
(v) (a) In our opinion and according to information and explanations
given to us, the transactions that need to be entered into the Register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, there are no such transactions exceeding Rs. Five lakhs
each which have been made at prices, which are not reasonable having
regard to the prevailing market prices, for such goods, materials or
services at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA of the
Companies Act, 1956 and the rules framed there under, where applicable,
with regard to deposits accepted from the public. As per the
information and explanations given to us no order under the aforesaid
sections has been passed by the Company Law Board on the company.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business
(viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under Section 209(1)(d) of the Companies Act, 1956. We have not,
however made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of provident
fund, employees'' state insurance, income-tax, sales-tax, custom duty,
excise duty, cess and other as applicable have been regularly deposited
by the company during the year with the appropriate authorities.
(b) As at 31st March, 2013 according to the records of the Company,
there are no dues of wealth tax, service tax and cess which have not
been deposited on account of any dispute.
(x) The company has neither accumulated losses as at 31st March, 2013
nor it has incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by management, we are of the opinion that the
company has not defaulted in repayment of its dues to any financial
institution or bank during the year.
(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) The provisions of any special statute as specified under clause
(xiii) of paragraph 4 of the order are not applicable to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader in securities.
(xv) The company has not given any guarantees for loans taken by others
from banks or financial institutions, the terms and conditions,
whereof, in our opinion are prima facie, prejudicial to the interest of
the Company.
(xvi) The company has not obtained any term loans that were not applied
for the purpose for which these were raised.
(xvii) Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment, and vice versa.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956 during the year.
(xix) The Company has not raised any money by public issue during the
year.
(xx) According to the information and explanations given to us, during
the year, no fraud by the company has been noticed or reported.
For P. P. Thukral & Company
Chartered Accountants
FR No. 000632N
Suresh Sethi
Place : New Delhi Partner
Date : 30th May, 2013 M.No.89318
Mar 31, 2010
1. We have audited the attached balance sheet of Jagsonpal
Pharmaceuticals Limited as at March 31, 2010 and also the Profit and
Loss account and the Cash Flow Statement for the year ended on that
date both 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 carried out our examinations in accordance with auditing
standards generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatements. An audit
also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by the Management, as weii 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, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order, to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 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 appears from our examination of the
books;
c) The Balance Sheet and Profit and Loss Account and cash flow
statement are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards under sub section (3C) of Section 211 of the Companies Act,
1956;
e) 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; and
f) 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 give
a trueand fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010;
ii) in the case of the Profit & Loss Account, of the profit of the
Company for the year ended on that date: and
iii) in the case of Cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph (1) of our
report of even date) (i) (a) The Company is maintaining proper records
showing full particulars, including quantitative details and situation
of fixed assets. (b) As explained to us, physical verification of a
major portion of fixed assets as at March 31, 2010 was conducted by the
Management during the year. In our opinion, the frequency of physical
verification is reasonable. Having. regard to the size of the
operations of the company and on the basis of explanations received, in
our opinion, the net differences found on physical verification were
not significant. (ii) (a) The inventory of the Company has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by ÃȈ the management were found 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 records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification between the physical
stocks and the book records were not material in relation to the
operations of the company.
(iii) In our opinion, the company has neither granted nor taken any
loans, secured or unsecured from companies, firms or other parties
listed in the Register maintained under Section 301 of the Companies
Act, 1956. As the Company has not granted/taken any loans, secured or
unsecured, to /from parties listed in the registers maintained under
Section 301 of the Companies Act, 1956 clauses
iii(b), iii(c) and iii(d) of paragraph 4 of the order are not
applicable.
(iv) In our opinion and according to the explanations given to us,
having regard to the explanations that some of the items are of a
special nature for which alternative quotations are not available,
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. Further, on the
basis of our examination and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any instance of major weaknesses in the aforesaid internal
control procedures.
(v) (a) In our opinion and according to information and explanations
given to us, the transactions that need to be entered into the Register
maintained under Section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, there are no such transactions exceeding Rs. Five lakhs
each which have been made at prices, which are not reasonable having
regard to the prevailing market prices, for such goods, materials or
services at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58A and 58AA of the
Companies Act, 1956 and the rules framed there under, where applicable,
with regard to deposits accepted from the public. As per the
information and explanations given to us no order under the aforesaid
sections has been passed by the Company Law Board on the company.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business
(viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under Section 209(1 )(d) of the Companies Act, 1956. We have not,
however made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of provident
fund, employees state insurance, income-tax, sales-tax, custom duty,
excise duty, cess and other as applicable have been regularly deposited
by the company during the year with the appropriate authorities.
(b) As at 3 la March, 2010 according to the records of the Company,
there are no dues of wealth tax, service tax and cess which have not
been deposited on account of any dispute.
(x) The company has neither accumulated losses as at 31st March, 2010
nor it has incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by management, we are of the opinion that the
company has not defaulted in repayment of its dues to any financial
institution or bank during the year.
(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) The provisions of any special statute as specified under clause
(xiii) of paragraph 4 of the order are not applicable to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader in securities.
(xv) The company has not given any guarantees for loans taken By others
from banks or financial institutions, the terms and conditions,
whereof, in our opinion are ~ prima facie, prejudicial to the interest
of the Company.
(xvi) The company has not obtained any term loans that were not applied
for the purpose for which these were raised.
(xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment, and vice versa.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956 during the year.
(xix) The Company has not raised any money by public issue during the
year.
(xx) According to the information and explanations given to us, during
the year, no fraud by the company has been noticed or reported.
For P.P.Thukral & Company
Chartered A ccountants
FRN: 000632N
Suresh Sethi
Place : New Delhi Partner
Dated : 13th August, 2010 M, No. : 89318