Home  »  Company  »  Lincoln Pharmace  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Lincoln Pharmaceuticals Ltd.

Mar 31, 2023

Lincoln Pharmaceuticals Limited

Report on the Audit of the Standalone Financial Statements

Opinion

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.

Basis for opinion

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.

Key Audit Matters

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.

Information other than the Standalone financial statements and Auditors'' Report thereon.

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.

Responsibilities of Management and Those Charged with

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.

Auditors'' Responsibilities for the Audit of the standalone

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.

Report on Other Legal and Regulatory Requirements

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

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X