Mar 31, 2023
Lincoln Pharmaceuticals Limited
1. We have audited the Standalone Financial Statements of Lincoln Pharmaceuticals Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2023, and the Statement of Profit and Loss, the Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone financial statements give the information required by the Companies Act, 2013 (the ''Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2023, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules there under and we have fulfilled our ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in our professional judgment were, of most significance in our audit of the, standalone financial statements of the current period.
These matters were addressed in the context of our audit, of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion, on these matters.
5. Key audit matter identified in our audit is on |
Existence & Recoverability of Trade Receivable as follows: |
Key audit matter |
How our audit addressed the key audit matter |
Existence & Recoverability of Trade Receivable |
|
The company has trade receivables (net) outstanding of '' 13,546.63 Lakhs after deducting the provision for impairment of '' 150.64 Lakhs at the end of reporting period. This represents 23.07% of the total assets |
Our audit procedures included the following: ⢠Reviewing the accounting policy with respect to o recognition of revenue & its appropriateness in accordance with Ind AS 115: Revenue from Contract with Customers; o Appropriateness of Recognition, Measurement and Impairment of Trade Receivables in accordance with Ind AS 109: Financial Instruments. ⢠Evaluating the design & implementation of internal controls in relation to recovery of Trade receivables, calculation of allowance for impaired trade |
of the company. These balances are receivable in relation to the revenue recognized in accordance with the requirements of Ind AS 115 "Revenue from Contracts with Customers". |
|
receivable along with testing its operating effectiveness on sample basis. |
|
The recoverability of trade receivables is a key element of the company''s working |
⢠Obtaining the external balance confirmations on samples basis to ascertain the existence & completeness of trade receivables. |
capital management, which is managed |
⢠Evaluating the reconciliations prepared by the management with respect |
on an ongoing basis by its management. |
to the balance confirmations received. |
Due to the nature of the business, the |
⢠Verified the subsequent receipts of trade receivables for selected samples |
requirements of customers and various |
to ascertain its existence as on balance sheet date. |
contract terms that are in place, there |
⢠Obtaining an understanding of the processes for evaluating the |
is a risk that the carrying values may not |
recoverability of the trade receivables including the collection process & |
reflect the recoverable amounts as at the |
allowances for impaired trade receivables. |
reporting date. |
⢠Evaluating management''s assumptions in determining the provision for |
Therefore, the assessment of existence & |
impairment of trade receivables, by analysing the ageing of receivables, |
recoverability of trade receivables is a key |
assessing significant overdue Individual trade receivables and specific local |
audit matters due to its size, and inherent |
risks, historical trends & patterns, combined with the legal documentations, |
uncertainty involved in the Management |
where applicable. |
judgement. |
⢠Verifying the ageing analysis of Trade receivables, long outstanding & |
Refer note 4(ii) to accounting policies and |
overdue balances, latest correspondences with customers for recovery of |
note 14 and 47(I)(1) to the standalone |
dues & evaluating its impact on provisioning & impairment. |
Financial statements. |
⢠Assessing the adequacy of the disclosures as required by the statute. |
6. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and as may be legally advised.
Governance for the standalone financial statements
7. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
financial statements
10. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
11. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis of opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for our resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial control system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
15. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
16. 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 standalone financial statements comply with the Ind AS Specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 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 B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
h) 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 the standalone financial statements- Refer Note-43 of financial statement;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
Place: Ahmedabad Date: 25/05/2023
iv.(i) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts , no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediaries shall, whether, directly or indirectly lend or invest in the other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether directly or
indirectly lend or invest in the other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures applied by us, nothing has come to our notice that has caused us to believe that the representations made under sub clause (iv) (i) and (ii) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Companies Act, 2013.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
For, Samir M Shah & Associates Chartered Accountants, [Firm Regd. No. 122377W]
(Samir M Shah) Partner [M. No.111052] uDIN: 23111052BGWTKJ8937
Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To
The Members
Lincoln Pharmaceuticals Limited
Ahmedabad
1. Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Lincoln Pharmaceuticals Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement, the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
2. Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (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(lnd AS) prescribed 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 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone 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 Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained are sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) 0rder,2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3and4of the Order.
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, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 42 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, ifany, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 5(i) of our Report of even date to the Members of Lincoln Pharmaceuticals Limited for the year ended 31st March, 2018.
1. In respect of Fixed Assets:
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets on the basis of available information.
(b) As per the information and explanations given to us, the management at reasonable intervals during the year in accordance with a programme of physical verification, physically verified the fixed assets and no material discrepancies were noticed on such verification as compared to the available records.
(c) As explained to us, the title deeds of all the immovable properties are held in the name of the Company''s name.
2. In respect of Inventories :
As per the information and explanations given to us, inventories were physically verified during the year by the management at reasonable intervals. No material discrepancy was noticed on such physical verification.
3. In respect of Loans granted during the year:
The Company has granted unsecured loans to party covered in the Register maintained under section 189 of the Companies Act, 2013. The details in respect of clause (iii) (a) to (c) of the Order are as under:-
(a) The terms and conditions of the grant of such loans are prima facie not prejudicial to the interest of the company.
(b) The principal amount of loan has been repaid as per stipulated terms and such party is regular in payment of interest.
(c) There is no overdue amount of loans granted to parties covered in the Register maintained under section 189 of the Companies Act, 2013.
4. Loans, Investments and guarantees:
In our opinion and according to information and explanations given to us, the Company has complied with provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security.
5. Acceptance of Deposits:
During the year, the Company has not accepted any deposits and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under are not applicable to the Company. Therefore clauses (v) of Companies (Auditor''s Report) Order, 2016 is not applicable.
6. Cost Records:
We have broadly reviewed the books of account maintained by the Company pursuant to the Companies (Cost Accounting Records) Rule, 2011 prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. In respect of Statutory Dues :
(a) According to the records of the Company, the Company is by and large regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income tax, Value added tax, Central Sales Tax, Goods and Service Tax, service tax, duty of customs, duty of excise, cess and any other statutory dues with the appropriate authorities applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of statutory dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the records of the Company, the dues of income tax, service tax, duty of customs, duty of excise, value added tax, central sales tax or cess which have not been deposited on account of disputes and the forum where the dispute is pending are as under:
Name of the Statute |
Nature of the Dues |
Financial Year |
Amount (in Rs.) |
Forum where dispute is pending |
Income Tax Act,1961 |
Income Tax Demand |
2012-13 |
4,10,360 |
Income Tax Appellate Tribunal |
Income Tax Act,1961 |
Income Tax Demand |
2013-14 |
19,94,850 |
Income Tax Appellate Tribunal |
Income Tax Act,1961 |
Income Tax Demand |
2014-15 |
27,42,080 |
Commissioner of Income Tax (Appeals) |
8. Based on our audit procedure and according to the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to Banks or Government. The Company has no debenture holder borrowing during the year.
9. According to the information and explanations given to us, the Company had not raised any money by way of public issue during the year. According to the information and explanations given to us, and on an overall examination of the balance sheet of the Company, in our opinion, the term loans taken during the year were applied for the purpose for which they were obtained.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud by the Company or any fraud on the Company by it''s officer or employees has been noticed or reported during the course of our audit.
11. In our opinion and according to the information and explanations given to us, the Company had paid managerial remuneration which is in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of The Companies Act, 2013.
12. In our opinion and according to the information and explanations given to us, the provisions of special statute applicable to chit funds and nidhi / mutual benefit funds / societies are not applicable to the Company. Hence, paragraph 3(xii) of the Company''s (Auditor''s Report) Order, 2016 is not applicable.
13. In our opinion and according to the information and explanations given to us, the transactions entered by the Company with related parties are in compliance with the provisions of section 177 and 188 of the Companies Act, 2013 and details thereof are properly disclosed in the financial statements as required by the applicable accounting standard.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Hence, clause (xiv) of the Company''s (Auditor''s Report) Order, 2016 is not applicable.
15. The Company had not entered in to any non-cash transactions with the directors or persons connected with him during the year, hence section 192 of the Companies Act, 2013 is not Applicable, hence clause (xv) of Company''s (Auditor''s Report) Order, 2016 is not applicable.
16. As the Company is not required to register under section 45-IA of Reserve Bank of India Act, 1934, hence, clause (xvi) of Company''s (Auditor''s Report) Order, 2016 is not applicable.
To The Independent Auditor''s Report of Even Date on The Standalone Financial Statements of Lincoln Pharmaceuticals Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Lincoln Pharmaceuticals Limited as of 31st March 2018, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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. 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 company''s 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 Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered Accountants of India. 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.
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 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s 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 31st March 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.
For, J. T. Shah & Co.
Chartered Accountants,
[Firm Regd. No- 109616W]
(J. T. Shah)
Place : Ahmedabad Partner
Date : 30/05/2018 [M.No.3983]
Mar 31, 2015
1. We have audited the accompanying financial statements of Lincoln
Pharmaceuticals Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, 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
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made there under.
5. 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.
6. 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 internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, 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 the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the 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
financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by "the companies (Auditor's Report) Order 2015" issued
by the Central Government of India in term of sub section (11) of
section 143 of the Act (hereinafter referred to as the "Order") 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 an annexure the statement on the
matter specified in the paragraph 3 and 4 of the order.
10. 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f. 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
ii. The Company does did have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
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 financial year
Annexure to Auditors' Report
Refer to the Paragraph 9 of the independent auditor's report of even
date to the members of Lincoln Pharmaceuticals Limited. On the
financial statements for the year ended on 31st March 2015.
1. Fixed Asset
(i) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed asset. The
records are not updated since last two years.
(ii) The fixed assets have been physically verified by the management
at reasonable intervals; No material discrepancies were noticed on such
verification.
2. Inventory
(i) Physical verification of inventory has been conducted at reasonable
intervals by the management.
(ii) In our opinion and according to the information and explanation
given to us, the procedures of the physical verification followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(iii) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification were not material.
3. Unsecured Loan
The company has granted unsecured loans to companies, covered in the
register maintained under section 189 of the Companies Act.
The parties have repaid the principal amount as stipulated and have
been regular in the payment of interest.
There is no overdue amount of loans granted to companies, firm or other
parties covered in the register maintained under section 189 of the
Companies Act.
4. Internal Controls
In our opinion and according to the information and explanations given
to us, the control system needs to be strengthened to make it
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods. We neither have come across nor are we informed of any
continuing failure to correct major weakness in the internal control.
5. Acceptance of Depots
The company has not accepted any deposit from the public within the
meaning of section 73 to section 76 of the act and the rules made there
under during the period under audit.
6. Costing Records
We have broadly reviewed the cost record maintained by the company
under the maintenance of cost records rules specified by the Central
Government under sub section (1) of section 148 of the Act, as we are
of the opinion that, prima facie, the prescribed cost records have been
made and maintained.
7. Statutory dues
(i) The company is regular in depositing undisputed statutory dues
including sales-tax, duty of customs, duty of excise, value added tax.
The company is also regular except in some cases, in depositing
provident fund, employees' state insurance and any other statutory
dues, TDS, wealth tax and service tax with the appropriate authorities.
(ii) According to the information and explanation given to us and as
per the records of the company examined by us, the details of income
tax, sales tax, wealth tax , service tax , duty of customs , duty of
excise , value added tax etc, not deposited on account of dispute are
as under.
Name of Nautre of Amount Amount not Financial year
Statute dues of Demand deposited to which it relate
Service Tax Service Tax 12,89,227 12,89,227 2008-09
Name of Authority/forum
Statute where the dispute is pending
Service Tax Custom, Excise & Service Tax Appellate
Tribunal, Western Zonal B
(iii) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the Act
and rules made there under has been transferred to such fund within
time.
8. Cash Losses
The company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in this financial year and in the
immediately preceding financial year.
9. Default in Repayments
In our opinion and according to the information and explanation given
to us, the company has not defaulted in repayment of dues to a bank or
financial institution. The company has not issued any debenture.
10. Guarantee for loans taken by others
The company has given a guarantee on the loan obtained by its partly
owned subsidiary company. According to the information and explanation
given to us, we are of the opinion that the terms and condition thereof
are not prima facie prejudicial to the interest of the company.
11. Application of term loan
Based on the information and explanations given by the management, term
loans obtained by the company, were applied for the purpose for which
loans were obtained.
12. Fraud
During the course of our examination of the books 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 to any material fraud on or by
the company nor we are informed of any such cases by the management.
For Chandulal M. Shah & Co.
Chartered Accountants
(FRN 101698W)
(B.M. Zinzuvadia)
Place : Ahmedabad Partner
Date : 30th May, 2015 M. NO. 109606
Mar 31, 2014
We have audited the accompanying financial statements of Lincoln
Pharmaceuticals 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 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, read with the General Circular 15/2013
dated 13th September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013.This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
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. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss Account, of the
profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit 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
sub-section (3C) of section 211 of the Companies Act, 1956, read with
the General Circular 15/2013 dated 13th September 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Auditors'' Report
Referred to in paragraph 1 of "Report on Other Legal and Regulatory
Requirements" of our report on the accounts of Lincoln Pharmaceuticals
Limited for the year ended on 31st March, 2014
(i) Fixed assets
a) The Company has not maintained updated records showing full
particulars including quantitative details and situation of fixed
assets.
b) All the assets have been physically verified by the management in
accordance with a phased programme of verification, which in our
opinion is reasonable, considering the size and the nature of business.
The frequency of verification is reasonable. As the fixed asset
register is under preparation, discrepancies if any on physical
verification could not be ascertained.
c) The company has not disposed off substantial part of fixed assets
during the year.
(ii) Inventory
a) The inventory has been physically verified by the management during
the year at reasonable intervals.
b) The procedure of physical verification of the inventories followed
by the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to books records were not material.
(iii) Loans secured and unsecured
a) The Company has granted interest free unsecured loan to three
companies listed in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year is Rs.
3865.22 Lakh and the yearend balance of the loan granted was Rs.
3,010.60 Lakh.
b) In our opinion and according to the information and explanations
given to us, the other terms and conditions of the loan are not prima
facie prejudicial to the interest of the Company.
c) Payment of the principal amount is regular.
d) The company has taken unsecured loan from two parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
Maximum amount outstanding during the year was Rs. 214.84 Lakh. The
year ended balance was Rs. 181.35 Lakh.
e) The loan taken by the company from four out of five parties is
interest free. The rate of interest in respect of one party and other
terms and conditions on which the loans have been taken from all
parties are prima facie, not prejudicial to the interest of the
company;
f) The said loans are repayable at the end of the term by a bullet
payment
g) The loans taken are not overdue loan.
(iv) Internal control
In our opinion and according to the information and explanations given
to us, the internal control procedures are commensurate with the size
of the company and the nature of its business with regard to purchase
of inventory and fixed assets and for the sale of goods and services.
Further, there is no continuing failure to correct major weaknesses in
internal control.
(v) Register under section 301
(a) The particulars of contracts or arrangements referred to in section
301 of the Act have been entered in the register required to be
maintained under that section; and
(b) Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) Deposit under section 58A
In our opinion and according to information and explanations given to
us, the company has not accepted deposit from the public and therefore
provisions of section 58A, 58AA or any other relevant provisions of
Companies Act, 1956 and the rules made there under are not applicable.
(vii) Internal audit
In our opinion, the company''s internal audit system is commensurate
with the size of the company and nature of its business.
(viii) Cost records
We have broadly reviewed the cost records maintained by the company
relating the manufacturing of pharmaceutical products pursuant to the
rules made by the central government for the maintenance of cost
records under section 209 of the companies Act. We are of opinion that
prima facie the said records are made and maintained. We have however,
not made a detail examination of those records with a view to determine
the accuracy and completeness.
(ix) Statutory dues
(a) According to the information and explanations given to us the
company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees'' State
Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Service Tax,
Excise Duty, Cess and any other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, there
are no disputed dues which are not deposited of sales tax/ income
tax/wealth tax/custom duty/excise duty or cess except stated below :
Sr. Department Year Amount Current Status
Involved Rs.
1 Service Tax 2008-09 12,89,227 Custom, Excise & Service tax
appellant Tribunal.
Western Zonal Bench,
Ahmedabad,
(x) Cash losses
The company does not have accumulated losses as on 31st March, 2014
Further it has not incurred cash loss during the financial year 2013-14
and in the immediately preceding financial year.
(xi) Repayment of bank dues
In our opinion and according to the information and explanations given
to us, the company has not defaulted in repayment of dues to a bank.
The company has not obtained any loans from financial institution or
debenture holders.
(xii) Loan or advance on the basis of securities
According to the information and explanations given to us, the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) Special Statute applicable
The company is not a chit fund or a Nidhi / mutual benefit fund /
society. Therefore provisions of clause (xiii) of the Order are not
applicable to the company.
(xiv) Dealing or trading in shares
The company is dealing in shares, securities, debentures and other
investments, for which, proper records have been maintained of the
transactions and contracts have been maintained by the company and
timely entries have been made therein. The shares, securities,
debentures and other investments have been held by the company, in its
own name except to the extent of the exemption, if any, granted under
section 49 of the Act.
(xv) Guarantee for loan take by others
The company has not given any guarantee for loan taken by others from
banks and financial institutions.
(xvi) Application of fund raised through term loan
In our opinion, the term loans have been applied for the purpose for
which they were raised.
(xvii) Utilization of fund
On an overall examination the Balance Sheet of the company, we report
that no fund raised on short term basis have been used for long term
investment.
(xviii) Preferential allotment of shares
The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act during the year under audit.
(xix) Public issue
The company has not raised any money by way of public issue during the
year.
(xx) Fraud
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, we noticed that a fraud involving an embezzlement
of Rs. 20 Lakh was committed by an employee of the company. The company
has recovered the loss from the employee.
For Chandulal M. Shah & Co.
Chartered Accountants (FRN 101698W)
(B.M. Zinzuvadia)
Place : Ahmedabad Partner
Date : 30th May, 2014 M. NO. 109606
Mar 31, 2011
1. We have audited the attached Balance Sheet of Lincoln
Pharmaceuticals Limited As at 31st March 2011 and also the Profit and
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. 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 of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order,2003 and
amendments thereto issued by the Central Government of India in terms
of Sec 227(4A) of The Companies Act 1956, we annex hereto a statement
on the matters specified in the paragraphs 4 and 5 of the said order,
to the extent applicable to the Company.
4. We further report that:
(i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section(1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2011; and
(ii) in the case of Profit and Loss Account, of the Profit for the year
ended on that date.
(iii) In case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE REPORT OF THE AUDITORS
Annexure referred to in paragraph 3 of the auditors' report to the
members of Lincoln Pharmaceuticals Limited for the year ended 31st
March, 2011
(i) Fixed assets
a) As inform to us the fixed assets register is under preparation by
the Company.
b) All the assets have been physically verified by the management in
accordance with a phased programme of verification, which in our
opinion is reasonable, considering the size and the nature of business.
The frequency of verification is reasonable. As the fixed asset
register is under preparation, discrepancies if any on physical
verification could not be ascertained.
c) The company has not disposed off substantial part of fixed assets
during the year. (ii) Inventory
a) The inventory has been physically verified by the management during
the year at reasonable intervals.
b) The procedure of physical verification of the inventories followed
by the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to books records were not material.
(iii) Loans secured and unsecured
a) The Company has granted unsecured loan to two companies listed in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year is Rs.102.12 Lakh and the
yearend balance of the loan granted was Rs.93.65 Lakh.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loan are not prima facie prejudicial to the interest of the Company.
c) In respect of the loan given by the Company, the terms of repayment
of principal and interest have not been stipulated and hence the
question of overdue amount does not arise.
d) The company has taken unsecured loan from two party covered in the
register maintained under section 301 of the Companies Act, 1956. The
Maximum amount outstanding during the year was Rs.111 Lakh. The year
ended balance was Rs.70 Lakh.
e) The rate of interest and other terms and conditions on which the
loans have been taken are prima facie, not prejudicial to the interest
of the company;
f) The said loan is a demand loan and therefore, repayment is on demand
and not in installments.
g) As the loan taken is a demand loan, there is no question of overdue
loan.
(iv) Internal control
In our opinion and according to the information and explanations given
to us, the internal control procedures are commensurate with the size
of the company and the nature of its business with regard to purchase
of inventory and fixed assets and for the sale of goods and services.
Further, there is no continuing failure to correct major weaknesses in
internal control.
(v) Register under section 301
(a) The particulars of contracts or arrangements referred to in section
301 of the Act have been entered in the register required to be
maintained under that section; and
(b) Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) Deposit under section 58A
In our opinion and according to information and explanations given to
us, the company has not accepted deposit from the public and therefore
provisions of section 58A, 58AA or any other relevant provisions of
Companies Act, 1956 and the rules made there under are not applicable.
(vii) Internal audit
In our opinion, the company's internal audit system is commensurate
with the size of the company and nature of its business.
(viii) Cost records
We have broadly reviewed the cost records maintained by the company
relating the manufacturing of pharmaceutical products pursuant to the
rules made by the central government for the maintenance of cost
records under section 209 of the companies Act. We are of opinion that
prima facie the said records are made and maintained. We have however,
not made a detail examination of those records with a view to determine
the accuracy and completeness.
(ix) Statutory dues
(a) According to the information and explanations given to us the
company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Service Tax,
Excise Duty, Cess and any other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, there
are no disputed dues which are not deposited of sales tax/ income
tax/wealth tax/custom duty/excise duty or cess except stated below :
Name of the
Statute Nature of Dues Amount Period to
which Forum where
dispute
(Rs.in Lacs)amount
relates is pending
Income Tax Regular tax 6.60 1999-00 CIT Appeal
Income Tax Regular tax 4.48 2001-02 CIT Appeal
Income Tax Regular tax 2.81 2008-09 CIT Appeal
Service tax Regular tax 0.21 2009-10 CESTAT-WZB
(x) Cash losses
The company does not have accumulated losses as on 31st March, 2011
Further it has not incurred cash loss during the financial year
2010-2011 and in the immediately preceding financial year.
(xi) Repayment of bank dues
In our opinion and according to the information and explanations given
to us, the company has not defaulted in repayment of dues to a bank.
The company has not obtained any loans from financial institution or
debenture holders.
(xii) Loan or advance on the basis of securities
According to the information and explanations given to us, the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) Special Statute applicable
The company is not a chit fund or a Nidhi / mutual benefit fund /
society. Therefore provisions of clause (xiii) of the Order are not
applicable to the company.
(xiv) Dealing or trading in shares
The company is dealing in shares, securities, debentures and other
investments, for which, proper records have been maintained of the
transactions and contracts have been maintained by the company and
timely entries have been made therein. The shares, securities,
debentures and other investments have been held by the company, in its
own name except to the extent of the exemption, if any, granted under
section 49 of the Act.
(xv) Guarantee for loan take by others
The company has not given any guarantee for loan taken by others from
banks and financial institutions.
(xvi) Application of fund raised through term loan
In our opinion, the term loans have been applied for the purpose for
which they were raised.
(xvii) Utilization of fund
On an overall examination the Balance Sheet of the company, we report
that no fund raised on short term basis have been used for long term
investment.
(xviii) Preferential allotment of shares
The company has made preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
Act during the year under audit. The price at which shares have been
issued is not prejudicial to the interest of the company.
(xix) Public issue
The company has not raised any money by way of public issue during the
year.
(xx) Fraud
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, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year.
For Chandulal M. Shah & Co.
Chartered Accountants
(FRN 101698W)
(B.M. Zinzuvadia)
Place:Ahmedabad Partner
Date :30th May, 2011 M. NO. 109606
Mar 31, 2010
We have audited the attached Balance Sheet of Lincoln Pharmaceuticals
Limited, as at 31st March 2010 and also the Profit and Loss Account and
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.
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 of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) order,2004, (together
order) 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 paragraph 4 and
5 of the said order.
Further to our comments in the Annexure referred to 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 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 such
books;
c. The Balance Sheet and Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account:
d. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e. On the basis of written representation received for the Directors,
as on 31st March 2010 and taken on record by the Board of Directors. We
report that none of the directors is disqualified as on 31st March 2010
from being appointed as a director in terms of clause (g) of
sub-Section (1) of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
g. i) In the case of the Balance Sheet, of the state of affairs of
.the Company as at 31st March 2010 and
ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii) In the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE REPORT OF THE AUDITORS
(i) (a) The company is maintaining proper records showing full
particulars, including quantitative details and Situation of fixed
assets.
(b) Fixed assets have been physically verified by the management at.
reasonable intervals. We have been informed that no discrepancies
between fixed assets and book records have been noticed in respect of
the assets physically verified during the year under report.
(c) The company has not disposed off substantial part of fixed assets
during the year.
(ii) (a) Physical verification of inventory has been conducted at
reasonable intervals by the management;
(b) The procedures of physical verification of inventory followed by
the management reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on physical verification have been properly dealt
with in the books of account;
(iii) In respect of the loans, secured or unsecured, granted or taken
by the Company to / from companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956:
(a) The company has not granted any loans to the firms or companies
covered in the register maintained under section 301 of The Companies
Act 1956 hence clause (b),(c) and (d) are not applicable.
(e) The company has taken unsecured loan from one party covered in the
register maintained under section 301 of The Companies Act 1956. The
Maximum Outstanding balance is 2,17,46,200 and Closing Balance is
1,50,41,453.
(f) In our opinion the rate of interest and other terms and conditions
on which the loan has been taken from the company listed under section
301 of The Companies Act 1956 are not prime facie prejudicial to the
interest of the company.
(g) In respect of the said loans, the same are repayable on demand and
therefore the question of overdue amounts does not arise. In respect of
interest, there are no overdue amounts.
(iv) In our opinion and according to explanations given to us, there is
an adequate internal control system commensurate with the size of the
company and the nature of its business, for the purchase of inventory
and fixed assets and for the sale of goods. During the course of audit,
we have not observed any continuing failure to correct major weaknesses
in internal control system of the company.
(v) (a) In our opinion and according to explanations given to us,
transactions that need to be entered into a register in pursuance of
section 301 of the Act have been so entered.
(b) In our opinion and according to explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
register maintained u/s. 301 of companies act, 1956 and exceeding Rs.
Five lacs in resptct of any party during the year have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) According to the informations and explanations given to us the
company has not accepted deposits from the public within the meaning of
Sections 58A and 58AA of the Act and the rules framed there under.
(vii) Internal audit is carried out by the firm of Chartered
Accountants. On the basis of reports made by them to the management, we
are of the opinion that the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company relating the manufacture of Pharmaceuticals product pursuant to
the Rule made by the Central Government for the maintenance of Cost
Records under Section 209 (1) (d) of the company Act, 1956 and are of
the opinion that prime-facie the prescribed accounts and records has
been made and maintained. We have however, not made a detailed
examination of the said records with a view of determine whether they
are accurate and complete.
(ix) On the basis of information and explanations given to us in
respect of statutory and other dues, we state that
(a) the company is regular in depositing with statutory authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, Service tax, cess and any other
Statutory dues with the appropriate authorities during the year.
(b) According to information and explanations given to us, dues
outstanding of income tax , sales tax , wealth tax, service tax, custom
duty, excise duty and cess on account of any disputes, are as follows :
Name of Statue Income Tax Act 1961
Nature of dues Additions made by the Additional (CIT)
Amount (Rs.) Rs. 34,95,435/-
Period for which Amount
relates Assessment year 1999-2000 to 2007-08
Forum where Dispute is
pending CIT (Appeals) & APPELATE TRIBUNAL.
(x) There are no accumulated losses at the end of the financial year.
The company has not incurred cash losses during the financial year
covered by our audit and in the financial year immediately preceding
such financial year also.
(xi) According to information and explanations given to us the company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) During this year, the company has not granted any loans and
advances on the basis of security or by way of pledge of shares,
debentures or other securities.
(xiii) In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
(xiv) The company is not in dealing or trading in shares, securities,
debentures or other investments.
(xv) According to information and explanations given to us the company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xvi) In our opinion & According to the information & explanation given
to us, on an overall basis The term loan have been applied for the
purpose for which they were obtained.
(xvii) According to information and explanations given to us and on
overall examination of the balance sheet of the company, we report that
the funds raised on short term basis have not been used for long term
investment by the company.
(xviii) The company has made preferential allotment of shares to
parties and companies covered in the registered maintained under
section 301 of the Companies Act 1956. In our opinion prices at which
shares have been issued is not prejudicial to the interest of the
company.
(xix) No debenture has been issued by the company and hence the
question of creating securities in respect thereof does not arise.
(xx) During the year, the company has not raised any monies by way of
public issues.
(xxi) According to information and explanations given to us, any fraud
on or by the company has not been noticed or reported during the year.
FOR, RAJENDRA NATVERLAL SHAH & COMPANY
CHARTERED ACCOUNTANTS
(Registration No.:130209W)
PLACE : AHMEDABAD (RAJENDRA N. SHAH)
DATE : 19-08-2010 PROPRIETOR
Membership No.8733
Mar 31, 2009
We have audited the attached Balance Sheet of Lincoln Pharmaceuticals
Limited, as at 31st March 2009 and also the Profit and Loss Account and
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.
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 of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies(Auditors Report) (Amendment) order,2004, (together
order) 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 paragraph 4 and
5 of the said order.
Further to our comments in the Annexure referred to 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 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 such
books;
c. The Balance Sheet and Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account:
d. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e. On the basis of written representation received for the Directors,
as on 31st March 2009 and taken on record by the Board of Directors. We
report that none of the directors is disqualified as on 31st March 2009
from being appointed as a director in terms of clause (g) of
sub-Section (1) of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
g. i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2009 and ii) In the case of the Profit and
Loss Account, of the Profit for the year ended on that date.
iii) In the case of the Cash Flow statement, of the cash flows for the
year ended on that date:
ANNEXURE TO THE REPORT OF THE AUDITORS
(i) (a) The company is maintaining proper records showing full
particulars, including quantitative details and Situation of fixed
assets.
(b) Fixed assets have been physically verified by the management at
reasonable intervals. We have been informed that no discrepancies
between fixed assets and book records have been noticed in respect of
the assets physically verified during the year under report.
(c) The company has not disposed off substantial part of fixed assets
during the year.
(ii) (a) Physical verification of inventory has been conducted at
reasonable intervals by the management;
(b) The procedures of physical verification of inventory followed by
the management reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on physical verification have been properly dealt
with in the books of account;
(iii) (a) The company has not taken any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under section 301 of Act, 1956. Accordingly paragraphs (iii)
(b), (c) and (d) of the Companies (Auditors Report) order, 2003 are
not applicable.
The company has not given loans to any parties covered in the register
maintained under 301 of the Companies Act, 1956.
(iv) In our opinion and according to explanations given to us, there is
an adequate internal control procedure commensurate with the size of
the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods. During the course
of audit, we have not observed any continuing failure to correct major
weaknesses in internal control.
(v) (a) In our opinion and according to explanations given to us,
transactions that need to be entered into a register in pursuance of
section 301 of the Act have been so entered.
(b) In our opinion and according to explanations given to us, each of
these transactions made in pursuance of contracts or arrangements
entered in register maintained u/s. 301 of companies act, 1956 and
exceeding Rs. Five lacs.
(c) in respect of any party during the year have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) The company has not accepted deposits from the public within the
meaning of Sections 58A and 58AA of the Act and the rules framed there
under.
(vii) Internal audit is carried out by the firm of Chartered
Accountants. On the basis of reports made by them to the management, we
are of the opinion that the company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the. bocks of account maintained by the
company relating the manufacture of Pharmaceuticals product pursuant to
the Rule made by the Central Government for the maintenance of Cost
Records under Section 209 (1) (d) of the company Act, 1956 and are of
the opinion that prime-facie the prescribed accounts and records has
been made and maintained. We have however, not made a detailed
examination of the said records with a view of determine whether they
are accurate and complete.
(ix) On the basis of information and explanations given to us in
respect of statutory and other dues, we state that
(a) the company is regular in depositing with statutory authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, cess and any other Statutory dues
with the appropriate authorities during the year.
(b) According to information and explanations given to us, due
outstanding of income tax , sales tax , wealth tax , service tax ,
custom duty, excise duty and cess on account of any disputes, are as
follows :
Name of Statue Income Tax Act 1961
Nature of dues Additions made by the Additional (CIT)
Amount (Rs.) Rs. 34,95,435/-
Period for which Amount
relates Assessment year 1999-2000 to 2006-07
Forum where Dispute is
pending CIT (Appeals) & APPELATE TRIBUNAL
(x) There are no accumulated losses at the end of the financial year.
The company has not incurred cash losses during the financial year
covered by our audit and in the financial year immediately preceding
such financial year also.
(xi) According to information and explanations given to us the company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) During this year, the company has not granted any loans and
advances on the basis of security or by way of pledge of shares,
debentures or other securities.
(xiii) The provisions of Special Statues applicable to Chit fund, Nidhi
or Mutual Benefit Fund/Societies are not applicable to the company.
(xiv) The company is in dealing or trading in shares, securities,
debentures or other investments.
(xv) According to information and explanations given to us the company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xvi) In cur opinion & According to the information & explanation given
to us", on an overall basis, the term loan have been applied for the
purpose for which they were obtained.
(xvii) According to information and explanations given to us and on
overall examination of the balance sheet of the company, we report the
funds raised on short term basis have not been used for long term
investment by the company.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the registered maintained under
section 301 of the Companies Act 1956.
(xix) No debenture has been issued by the company and hence the
question of creating securities in respect thereof does not arise.
(xx) During the year, the company has not raised money by public issue.
(xxi) According to information and explanations given to us, any fraud
on or by the company has not been noticed or reported during the year.
FOR, RAJENDRA N. SHAH & CO.
CHARTERED ACCOUNTANTS
PLACE : AHMEDABAD (R. N. SHAH)
DATE : 31.08-2009 PROPRIETOR