Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Mangalam Drugs & Organics Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement (hereinafter referred to as âInd AS Financial Statements), the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for Ind AS the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements 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 (Ind AS) prescribed under section 133 of the Act, read with relevant rules thereunder and other accounting principles generally accepted in India. 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these 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 thereunder.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the 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 loss(including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of 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 accounts of the branch offices of the company have been audited by us under section 143(8) of the Act and have been properly dealt with by us in preparing this report;
(d) The Balance sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(e) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(f) On the basis of written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the act;
(g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate report in âAnnexure Bâ.
(h) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended) 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 as at March 31,2018 on its financial position in its financial statements;
(ii) The Company does not have any long term contract including derivative contracts. Hence the question of material foreseeable losses does not arise.
(iii) There were no amounts required to be transferred to the Investor Education and Protection Fund by the company.
Annexure - A to the Auditorsâ Report
(i). (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) As explained to us, the fixed assets have been physically verified by management at reasonable intervals under a phased programme of verification. In accordance with this program, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies have been noticed on such verification. In our opinion this periodicity of physical verification is reasonable having regard to the size of company and nature of its assets.
(c) The title deeds of the immovable properties as disclosed in schedule of fixed assets to the financial statements, are held in the name of the Company.
(ii) The physical verification of inventory has been conducted at reasonable intervals by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. No material discrepancies have been noticed on such verification.
(iii) In our opinion and according to the information and explanation given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnership or other parties covered in the register maintained under Section 189 of the Act. Accordingly paragraph 3 (iii) (a), 3 (iii) (b) and 3 (iii) (c) of the order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to loans, investments, guarantees and securities.
(v) The Company has not accepted any deposits from the public within the meaning of Section 73 to 76 of the Act and Rules framed there under to extent notified.
(vi) We have broadly reviewed the books of accounts maintained by the company pursuant to the order made by the Central Government for maintenance of cost records prescribed under sub-section 1 of section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues, including provident fund, employee state insurance, income tax, sales tax, service tax, GST, duty of customs, duty of excise, value added tax, cess and any other material statutory dues as applicable, with the appropriate authorities.
According to the information and explanations given to us and the records of the company examined by us, no undisputed amounts payable in respect of provident fund, employee state insurance, income tax, sales tax, service tax, GST, duty of customs, duty of excise, value added tax, cess and any other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable except an undisputed statutory due of ESIC (deducted from the payment made to contractors ) amounting to Rs. 68,10,559 is payable from last 2 years.
b) According to the information and explanations given to us, and the records of the company examined by us, the dues in respect of sales tax, income-tax, duty of customs, service tax, GST, entry tax, value added tax, central sales tax, duty of excise, which have not been deposited with the appropriate authority on account of any disputes are as under:
Sr.No |
Excise Duty & Service Tax |
Amount (Rs. in Lacs) |
Forum where dispute is pending |
a) |
2010-2011 |
5.20 |
CESTAT, AHMEDABAD |
b) |
2011-2012 |
208.37 |
CESTAT, AHMEDABAD |
c) |
2015-2016 |
171.77 |
APPEAL-BARODA |
d) |
2016-2017 |
8.37 |
APPEAL-VALSAD |
Total Amt (In Lacs) (A) |
393.71 |
||
Sr.No |
INCOME TAX |
Amount (Rs in Lacs) |
Forum where dispute is pending |
a) |
AY-2002-2003 |
0.86 |
Income Tax appellant Tribunal Mumbai |
b) |
AY-2003-2004 |
0.88 |
Income Tax appellant Tribunal Mumbai |
c) |
AY-2005-2006 |
1.36 |
Income Tax appellant Tribunal Mumbai |
d) |
AY-2006-2007 |
21.42 |
Commissioner of Income tax Appeals-IV Mumbai |
e) |
AY-2011-12 |
56.14 |
Income Tax appellant Tribunal Mumbai has referred the matter to assessing officer |
Total Amt.(In Lacs) (B) |
80.66 |
||
Sub Total Amt |
474.37 |
(viii) According to the records of the company examined by us and the information and explanation given to us, the company has not defaulted in repayment of loans or borrowings to any financial institution, bank or Government as at the Balance sheet date.
(ix) The Company did not raise any moneys by way of initial public offer or further public offer (including debt instruments) nor has obtained any term loans during the year, hence paragraph 3 (ix) of the order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instances of material fraud by the Company or on the Company by its officers or employees noticed or reported during the year nor have we been informed of any such case by the management.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable and details of such transactions have been disclosed in the financial statements as required under Ind AS and Companies Act, 2013.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, paragraph 3(xiv) of the order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, the provisions of Clause 3(xvi) of the order are not applicable to the Company.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act. 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Mangalam Drugs & Organics Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ 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 âGuidance Noteâ) 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 auditorâs 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 Companyâs 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 and to the best of our information & according to the explanations give to us, 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 31 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 Batliboi & Purohit
Chartered Accountants
Firm Registration Number: 101048W
CA. Raman D Hangekar
Senior Partner
Membership Number: 030615
Place: Mumbai
Date: 28th May, 2018.
Mar 31, 2016
To,
The Members of
MANGALAM DRUGS & ORGANICS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of MANGALAM DRUGS & ORGANICS LIMITED(âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its profit/ loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 accounts of the Company have been audited by us under Section143 (8) of the Act and have been properly dealt with by us in preparing this report.
(d) 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.
(e) 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.
(f) On the basis of the written representations received from the directors as on 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(h) With respect to the other matters to be included in the Auditorâs 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 does not have any pending litigations which would impact its financial position
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure âA'' and Annexure âB'' attached hereto form an integral part of this report
Forming partof the Independent Auditorsâ Report of even date on the financial statement as of and for the year ended March 31st, 2016.
i. 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 explained to us, all the assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company does not have any immovable property in its name and therefore the said clause is not applicable.
ii. In respect of Inventories:
(a) According to the information and explanation given to us the physical verification of inventory has been conducted at reasonable intervals by the management.
(b) According to the information and explanation given to us the discrepancies between physical stock and the book stock were not material and have been properly dealt with in the books of accounts.
iii. In respect of the loans, secured or unsecured, granted by the company to companies, firms, limited liability partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(a) The Company has not granted loans, secured or unsecured to companies, firms, limited liability partnership or other parties covered in the register maintained under Section 189 of Companies Act, 2013. Hence we express our inability to give our comments on loan receipts or principal interest or steps taken for recovery of overdue amount of principal and interest.
iv. In our opinion and according the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to loans, investments, guarantees and securities.
v. According to information and explanations provided to us, the company has not accepted any deposit from public as defined according to the provisions of Section 73 to 76 of the Companies Act, 2013, and the Rules framed there under. Hence we offer no comments in respect of any contraventions thereto. No order has been passed by Company Law Board or National Company Law Tribunal or the Reserve Bank of India or any Court or other tribunal in respect of any deposit as defined according to the provisions of Section 73 to 76 of the Companies Act, 2013, and Rules framed there under.
vi. The company is maintaining the cost accounting records as prescribed by the Central Government under Section 148(1) of the Companies Act 2013 for the Company.
vii. In respect of Statutory Dues:
(a) According to information and explanations given to us and based on records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, Cess and other statutory dues, as applicable, with the appropriate authorities. As explained to us, the Company did not have any such dues outstanding as on the last day of the financial year for more than six months from the date the same became payable.
(b) The following are the disputed dues which have not been deposited
No. |
Nature of Dues |
Amount (Rs. In Lacs) |
Forum where dispute is Pending |
|
1) |
Excise Duty & Service Tax |
|||
a) |
2009 -10 |
5.00 |
CESTAT, Ahmedabad |
|
b) |
2011 - 12 |
24.82 |
CESTAT, Ahmedabad |
|
c) |
2011 - 12 |
183.55 |
CESTAT, Ahmedabad |
|
Sub Total |
213.37 |
|||
2) |
Income Tax |
|||
a) |
AY-2002 - 2003 |
00.86 |
Income Tax Appellant Tribunal Mumbai |
|
b) |
AY-2003 - 2004 |
00.88 |
Income Tax Appellant Tribunal Mumbai |
|
c) |
AY-2004 - 2005 |
22.09 |
Income Tax Appellant Tribunal Mumbai |
|
d) |
AY-2005 - 2006 |
1.36 |
Income Tax Appellant Tribunal Mumbai. |
|
e) |
AY-2006 - 2007 |
21.42 |
Commissioner of Income Tax Appeals - IV Mumbai |
|
f) |
AY-2011 - 2012 |
56.14 |
Income Tax Appellant Tribunal Mumbai |
|
Sub Total |
102.75 |
3) |
Maharashtra Sales Tax |
|||
a) |
2005-2006-MVAT |
699.94 |
Dy. Commissioner of Sales Tax-Appeal - VI |
|
b) |
2005- 2006 - CST |
20.67 |
Dy. Commissioner of Sales Tax -Appeal - VI |
|
c) |
2008- 2009 -MVAT |
623.44 |
Dy. Commissioner of Sales Tax -Appeal - VI |
|
d) |
2009-2010-MVAT |
12.47 |
Maharashtra Sales Tax Tribunal |
|
Sub Total |
1356.52 |
|||
Total |
1672.64 |
viii. As per our examination and according to the information and explanation given to us and based on records of the company examined by us, the company has, during the year, not defaulted in the repayment of loans or borrowings to a financial institutions, bank, Government or dues to debenture holders.
ix. As per our examination and according to the information and explanation given to us and based on records of the company examined by us, the company has, during the year under review, not raised any money via initial public offer or by way of further public offer (including debt instruments) or new term loans. The term loans outstanding at the beginning of the year have been applied for the purpose for which they were raised.
x. According to the information and explanations given to us, no instance of material fraud by or on the Company by its officers or employees has been noticed or reported during the year under review. We, therefore, express our inability to express any opinion on the nature of fraud or amount involved therein.
xi. As per the Notification No. G.S.R. 463 (E) dated June 05, 2015 the provision of section 197 r.w. Schedule V of the Act is not applicable to the Company. Accordingly, paragraph 3(xi) of the order is not applicable.
xii. In our opinion, the company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations provided to us, and based on our examination of the records of the Company, all transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013, where applicable, and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. According to the information and explanations provided to us and based on the examination of records of the company, the company has made preferential allotment by way of private placement of shares. According to the information and explanations provided to us, and based on our examination of the records of the Company, we are of the opinion that requirements of section 42 of the Companies Act, 2013, has been complied with and the amount raised has been used for the purposes for which the funds were raised.
xv. According to the information and explanations provided to us, and based on our examination of the records of the Company, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. According to the information and explanations provided to us, and based on our examination of the records of the Company, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Place: Mumbai
Dated: May 16, 2016
Name of the signatory: CA Rakesh K Milwani
Membership No. No. 036099
Name of the proprietary firm: MILWANI ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 106405W
Mar 31, 2015
We have audited the accompanying financial statements of MANGALAM DRUGS
& ORGANICS LIMITED(" the Company"),which comprise the Balance sheet as
at 31st March, 2015, the Statement of Profit & Loss and the Cash Flow
Statement of the Company for the year ended,and a summary of the
significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Management is responsible for the preparation of these
financial statements that give true & fair view of the financial
position,financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act ,2013 (the Act)read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Company's Act ,2013 and in accordance with the
accounting principles generally accepted in India .This responsibility
includes the design,implementation and maintainence of internal control
relevant to the preparation and presentation of the financial
statements that give true and fair view and are free from material
misstatement,whether due to fraud or error.
AUDITOR' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures select depend on the auditor's judgement,including the
assessment of the risks of material misstatement of the financial
statements,whether due to fraud or error. In making those risk
assessments,the auditor considers the internal control relevant to the
Company's preparation and fair presentation of the fianancial
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 the 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 principals generally accepted in
India:
(a) In the case of the Balance Sheet,of the state of affairs of the
Company as at 31st March ,2015;
(b) In the case of the Statement of Profit and Loss,of the Profit of
the Company for the year ended on that date,and
(c) In the case of the Cash Flow Statement,of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order,2015("the
Order") issued by the Central Government of India in terms of Section
149 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 143 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 purposes of our
audit.
(b) In our opinion,proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
(c) The Balance Sheet,Statement of Profit and Loss,and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September,2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act,2013.
(e) On the basis of 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 clause(g) of
sub-section(1) of section 164 of the Act.
Annexure to the Auditors report of the even date to the Members of
MANGALAM DRUGS AND ORGANICS LIMITED.
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its asset. The discrepancies noticed
have been properly dealt with in the books of accounts.
ii) (a) The physical verification of inventory has been conducted at
reasonable intervals by management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the books of
accounts.
iii) As informed to us, during the year the company has not granted any
loans, secured or unsecured to or from companies, firms or other
parties covered in the register maintained under section 189 of the
Act.Hence we express our inability to give our comments on loan
receipts of principal interest or steps taken for recovery of overdue
amount exceeding Rs one lakh.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and for sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control.
v) (a) As informed to us the company has not accepted any deposits
during the year.We therefore,express our inability to comment whether
the directives issued by Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant provisions have been complied
with.We have been informed that no order in this connection has been
passed by Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any court or other tribunal.
vi) The Company is maintaining cost records as prescribed by Central
Government under section 148(1) of the Companies Act 2013 for the
Company.
vii) a) According to the information and explanation given to us the
company is generally regular in depositing undisputed statutory dues
including Provident Funds, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess and any other statutory dues
wherever applicable with appropriate authorities. There is no
outstanding dues for a period of more than six months from the date they
become payable.
b) The following are the disputed dues which have not been deposited:
Nature of Dues Amount Forum where dispute
(Rs. In Lacs) is Pending
1) Excise Duty & Service Tax
a) 2009-10 5.00 CESTAT, Ahmedabad.
b) 2011-12 24.82 Commissioner (Appeals)
-Daman
c) 2011-12 364.64 Commissioner Central
Excise & service tax-
Daman
Sub Total 394.46
2) Income Tax
a) 2002 - 2003 00.86 Income Tax Appellant
Tribunal Mumbai
b) 2003 - 2004 00.88 Income Tax Appellant
Tribunal Mumbai
c) 2004 - 2005 22.09 Income Tax Appellant
Tribunal Mumbai
d) 2005 - 2006 1.36 Commissioner of Income
Tax Appeals-Mumbai
e) 2006 - 2007 21.42 Commissioner of Income
Tax Appeals- Mumbai
f) 2010 - 2011 1715.29 Commissioner of Income
Tax Appeals-Mumbai
Sub Total 1761.90
3) Maharashtra Sales Tax
a) 2005-2006-VAT 705.72 Dy.Commissioner of
Sales Tax -Appeal-VI
b) 2005-2006-CST 23.11 Dy.Commissioner of
Sales Tax -Appeal-VI
c) 2008-2009-VAT 633.44 Dy.Commissioner of
Sales Tax -Appeal-VI
d) 2009-2010-VAT 33.19 Maharashtra Sales
Tax Tribunal
Sub Total 1395.46
Total 3551.82
c) No amount has become transferable to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act 2013.
viii) The company has been registered for a period of more than five
years we therefore offer no comments regarding the accumulated losses
being or not being more than 50% of its net worth.
ix) Based on our audit procedures and on the information and
explanation given by the management, the company has not defaulted in
repayment of dues to any financial institution or bank or debenture
holder
x) On the basis of the information and explanation given to us the
company during the year has not given corporate guarantee for loans
taken by others from banks.We therefore are unable to comment on , the
terms and conditions thereof being or not being prima-facie prejudicial
to the interest of the company.
xi) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
Place: Mumbai
Date: 15th ,May 2015
(CA Rakesh K. Milwani)
Propreitor: Milwani Associates
Membership No.36099
Firm Registration No.106405W
Mar 31, 2014
We have audited the accompanying financial statements of MANGALAM DRUGS
& ORGANICS LIMITED(" the Company"),which comprise the Balance sheet as
at 31st March, 2014, the Statement of Profit & Loss and the Cash Flow
Statement of the Company for the year ended,and a sum- mary of the
significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statements that give true & fair view of the financial
position,financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act ,1956 (the Act)read with the General Circular 15/2013 dated 13th
Sepetember,2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Company''s Act,2013 and in accordance with the
accounting principles generally accepted in India .This responsibility
includes the design,implementation and maintainence of internal control
relevant to the preparation and presentation of the financial
statements that give true and fair view and are free from material
misstatement,whether due to fraud or error.
AUDITOR'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit.We conducted our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India.Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements.The
procedures select depend on the auditor''s judgement,including the
assessment of the risks of material misstatement of the financial
statements,whether due to fraud or error.In making those risk
assessments,the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the fianancial
statements in order to design audit procedures that are appropriate in
the circumstances.An audit also includes evaluating the ap-
propriateness of accounting policies used and the reasonableness of the
accounting estimates made by the 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 principals generally accepted in
India:
(a) In the case of the Balance Sheet,of the state of affairs of the
Company as at 31st March ,2014;
(b) In the case of the Statement of Profit and Loss,of the Loss of the
Company for the year ended on that date,and
(c) In the case of the Cash Flow Statement,of the cash flows of the
Company for the year ended on that date.
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 purposes of our
audit.
(b) In our opinion,proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
(c) The Balance Sheet,Statement of Profit and Loss,and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September,2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act,2013.
(e) On the basis of the written representations received from the
directors as on 31st March ,2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,2014
from being appointed as a director in terms of clause(g) of
sub-section(1) of sec- tion 274 of the Act.
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its asset. The discrepancies noticed
have been properly dealt with in the books of accounts.
(c) The asset disposed off during the year are not significant and
therefore do not affect the going concern assumptions. ii) (a) The
physical verification of inventory has been conducted at reasonable
intervals by management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the books of
accounts.
iii) As informed to us, during the year the company has not granted or
taken any loans, secured or unsecured to or from companies, firms or
other parties covered in the register maintained under section 301 of
the Act.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and for sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control.
v) (a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transaction that need to be entered into the register
maintained under section 301 of the Act have been properly entered in
the said register.
(b) In our opinion and according to the information and explanations
given to us, the transactions entered in the registers maintained under
section 301 and exceeding during the year by Rupees five lakh in
respect of each party 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 any deposits from the public.
vii) The internal audit function carried out during the year by a firm
of chartered accountant appointed by the company and the same is in our
opinion, is commensurate with its size and nature of its business.
viii) The Company is maintaining cost records as prescribed by Central
Government under section 209 (1) (b) of the Companies Act 1956 for the
Company.
ix) a) According to the information and explanation given to us the
company is generally regular in depositing undisputed statutory dues
including Provident Funds, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess and any other statutory dues
wherever applicable with appropriate authorities. There is no
outstanding dues for a period of more than six months from the date
they become payable.
b) The following are the disputed dues which have not been deposited:
Nature of Dues Amount Forum where dispute is Pending
(Rs. In Lacs)
1) Excise Duty & Service Tax
a) 2009-10 5.00 CESTAT, Ahmedabad.
b) 2011-12 24.82 Commissioner (Appeals)-Daman
c) 2011-12 364.64 Commissioner Central Excise & service
tax- Dama
Sub Total 394.46
2) Income Tax
a) 2002 Â 2003 00.86 Income Tax Appellant Tribunal Mumbai
b) 2003 Â 2004 00.88 Income Tax Appellant Tribunal Mumbai
c) 2004 Â 2005 22.09 Income Tax Appellant Tribunal Mumbai
d) 2005 Â 2006 1.36 Commissioner of Income Tax Appeals-
Mumbai
e) 2006 Â 2007 21.42 Commissioner of Income Tax Appeals-
Mumbai
f) 2010 Â 2011 1715.29 Commissioner of Income Tax Appeals-
Mumbai
Sub Total 1761.90
3) Maharashtra Sales Tax
a) 2005-2006-VAT 705.72 Dy.Commissioner of Sales Tax ÂAppeal-VI
b) 2005-2006-CST 23.11 Dy.Commissioner of Sales Tax ÂAppeal-VI
c) 2008-2009-VAT 633.44 Dy.Commissioner of Sales Tax ÂAppeal-VI
d) 2009-2010-VAT 33.19 Dy.Commissioner of Sales Tax ÂAppeal-VI
Sub Total 1395.46
Total 3551.82
x) The company neither has accumulated losses at the end of the
financial year nor has incurred cash losses during the year and in the
immediately year preceding.
xi) Based on our audit procedures and on the information and
explanation given by the management, the company has not defaulted in
repayment of dues to any financial institution or bank or debenture
holder.
xii) Based on our examination and 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) The company is not a chit/nidhi/mutul benefit fund/society and
therefore clause xiii of the order is not applicable.
xiv) The company is not dealing or trading in shares, securities,
debentures and other investment.
xv) On the basis of the information and explanation given to us the
company during the year has not given corporate guarantee for loans
taken by others from banks, the terms and conditions thereof are not
prima-facie prejudicial to the interest of the Company.
xvi) In our opinion, the term loans were applied for the purpose for
which they were raised.
xvii) On the basis of our examination of the books of accounts and the
information and explanation given to us, in our opinion, the funds
raised on short-term basis have not been used for long term investment.
xviii) During the year, 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.
xix) The company did not have any outstanding debentures during the
year.
xx) The Company has not raised any money by public issues during the
year.Accordingly ,the question of disclosure of end use of such monies
does not arise.
xxi) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
(CA. RAKESH K. MILWANI)
PROPRIETOR: MILWANI ASSOCIATES
Place : Mumbai Membership No.036099
Date : 29th, May 2014 Firm Registration No. 106405w
Mar 31, 2012
1. We have audited the attached Balance Sheet of MANGALAM DRUGS &
ORGANICS LIMITED as at 31st March, 2012, the Profit and Loss Account
and the Cash Flow Statement of the Company 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 conducted our audit in accordance with auditing standard
generally accepted in India. These Standard require that we plan and
perform the audit to obtain reasonable assurance 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. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement comply with the Accounting Standards referred to in Section
211 (3C) of the Companies Act, 1956.
4. 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.
5. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
books and records.
6. The Company has received written representation from the directors
as on 31st March, 2012 and on the basis of those representation, we
report that none of the director is disqualified from being appointed
as director under Section 274 (1)
(g) of the Companies Act, 1956.
7. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement are in agreement with the books of Account.
8. In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit and Loss
Account and the Cash Flow Statement read together with notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give true and fair views :
a) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2012.
b) In so far as it relates to the Profit and Loss Account, of the
Profit of the Company for the year ended on that date.
c) In so far as it relates to the cash flow statement, of the cash
flows of the company for the year ended on that date.
Annexure to the Auditors report of the even date to the Members
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation
of fixed assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its asset. The discrepancies noticed
have been properly dealt with in the books of accounts.
(c) The asset disposed off during the year are not significant and
therefore do not affect the going concern assumptions.
ii) (a) The physical verification of inventory has been conducted at
reasonable intervals by management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the books of
accounts.
iii) As informed to us, during the year the company has not granted or
taken any loans, secured or unsecured to or from companies, firms or
other parties covered in the register maintained under section 301 of
the Act.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and for sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control.
v) (a) Based on the audit procedures applied by us and according to the
information and explanation provided by the
management, we are of the opinion that the transaction that need to be
entered into the register maintained under section 301 of the Act have
been properly entered in the said register.
(b) In our opinion and according to the information and explanations
given to us, the transactions entered in the registers maintained under
section 301 and exceeding during the year by Rupees five lakh in
respect of each party 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 any deposits from the public.
vii) The internal audit function carried out during the year by a firm
of chartered accountant appointed by the company and the same is in our
opinion, is commensurate with its size and nature of its business.
viii) The Company is maintaining cost records as prescribed by Central
Government under section 209 (1) (b) of the Companies Act 1956 for the
Company.
ix) a) According to the information and explanation given to us the
company is generally regular in depositing undisputed
statutory dues including Provident Funds, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and any other
statutory dues wherever applicable with appropriate authorities. There
is no outstanding dues for a period of more than six months from the
date they become payable. _
b) The following are the disputed dues which have not been deposited :
Nature of Dues Amount Forum where dispute is
Pending
(Rs. In Lacs)
1) Excise Duty & Service Tax
a) 2004 - 05 5.00 CESTAT, Ahmedabad
b) 2007-08 2.52 CESTAT,Ahmedabad._
c) 2010-11 5.78 Commissioner (Appeals)
TOTAL 13.30
2) Income Tax
a) 2000 - 01 19.80 Income Tax Appellant
Tribunal
b) 2001 - 02 5.65 Income Tax Appellant
Tribunal
c) 2002 - 03 00.86 Income Tax Appellant
Tribunal
d) 2003 - 04 00.88 Income Tax Appellant
Tribunal
e) 2004 - 05 22.09 Income Tax Appellant
Tribunal
f) 2005 - 06 1.36 Commissioner of
Income Tax Appeals
g) 2006-07 21.42 Commissioner of
Income Tax Appeals
TOTAL 72.06
N.B.:- The above demands of Income tax have been shown as they existed
without considering the appeal relief in some of the appeals which have
been decided.
x) The company neither has accumulated losses at the end of the
financial year nor has incurred cash losses during the year and in the
immediately year preceding.
xi) Based on our audit procedures and on the information and
explanation given by the management, the company has not defaulted in
repayment of dues to any financial institution or bank or debenture
holder.
xii) Based on our examination and 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) The company is not a chit/nidhi/mutul benefit fund/society and
therefore clause xiii of the order is not applicable.
xiv) The company is not dealing or trading in shares, securities,
debentures and other investment.
xv) On the basis of the information and explanation given to us the
company has given corporate guarantee for loans taken by others from
banks, the terms and conditions thereof are not prima-facie prejudicial
to the interest of the Company.
xvi) In our opinion, the term loans were applied for the purpose for
which they were raised.
xvii) On the basis of our examination of the books of accounts and the
information and explanation given to us, in our opinion, the funds
raised on short-term basis have not been used for long term investment.
xviii) During the year, 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.
xix) The company did not have any outstanding debentures during the
year.
xx) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
(CA. RAKESH K. MILWANI)
PROPRIETOR: MILWANI ASSOCIATES
Membership No.36099
Firm Registration No. 106405W
Place: Mumbai
Date : 23rd July, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of MANGALAM DRUGS &
ORGANICS LIMITED as at 31 st March, 2010, the Profit and Loss Account
and the Cash Flow Statement of the Company for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standard
generally accepted in India. These Standard require that we plan and
perform the audit to obtain reasonable assurance 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. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement comply with the Accounting Standards referred to in Section
211 (3C) of the Companies Act, 1956,
4. 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.
5. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
books and records.
6. The Company has received written representation from the directors
as on 31 st March, 2010 and on the basis of those representation, we
report that none of the director is disqualified from being appointed
as director under Section 274 (1) (g) of the Companies Act, 1956.
7. The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement are in agreement with the books of Account.
8. In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit and Loss
Account and the Cash Flow Statement read together with notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give true and fair views :
a) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2010
b) In so far as it relates to the Profit and Loss Account, of the
Profit of the Company for the year ended on that date.
c) In so far as it relates to the cash flow statement, of the cash
flows of the company for the year ended on that date.
Annexure to the Auditors report of the even date to the Members
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its asset. The discrepancies noticed
have been properly dealt with in the books of accounts.
(c) The asset disposed off during the year are not significant and
therefore do not affect the going concern assumptions. ii) (a) The
physical-verification of inventory has been conducted at reasonable
intervals by management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion the company has maintained proper records of
inventory. The discrepancies between physical stock and the book stock
were not material and have been properly dealt with in the books of
accounts.
iii) As informed to us, during the year the company has not granted or
taken any loans, secured or unsecured to or from companies, firms or
other parties covered in the register maintained under section 301 of
the Act.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and for sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control.
v) (a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transaction that need to be entered into the register
maintained under section 301 of the Act have been properly entered in
the said register.
(b) In our opinion and according to the information and explanations
given to us, the transactions entered in the registers maintained under
section 301 and exceeding during the year by Rupees five lakh in
respect of each party 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 any deposits from the public.
vii) The internal audit function carried out during the year by a firm
of chartered accountant appointed by the company and the same is in our
opinion, is commensurate with its size and nature of its business.
viii) The Company is maintaining cost records as prescribed by Central
Government under section 209 (1) (b) of the Companies Act 1956 for the
Company.
ix) a) According to the information and explanation given to us the
company is generally regular in depositing undisputed statutory dues
including Provident Funds, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess and any other statutory dues
wherever applicable with appropriate authorities. There is no
outstanding dues for a period of more than six months from the date
they become payable.
b) The following are the disputed dues which have not been deposited :
Nature of Dues Amount (Rs.
In Lacs) Forum where dispute
is Pending
1) Excise Duty &
Service tax
a) 2004-05 5.00 CESTAT, Ahmedabad
b) 2005-06 30.17 Commissioner (Appeals)
c) 2006-07 47.78 Commissioner (Appeals)
d) 2007-08 39.79 Commissioner (Appeals)
e) 2008-09 17.72 Commissioner (Appeals)
f) 2009-10 8.09 Commissioner (Appeals)
Total 148.55
2) Income Tax
a) 2000-01 22.68 Income Tax Appellant Tribunal
b) 2001-02 57.94 Income Tax Appellant Tribunal
c) 2002-03 00.86 Income Tax Appellant Tribunal
d) 2003-04 00.88 Income Tax Appellant Tribunal
e) 2004-05 12.60 Income Tax Appellant Tribunal
f) 2005-06 1.36 Commissioner of Income Tax
g) 2006-07 5.22 (Appeals)
Total 101.54
i) The company neither has accumulated losses at the end of the
financial year nor has incurred cash losses during the year and in the
immediately year preceding.
ii) Based on our audit procedures and on the information and
explanation given by the management, the company has not defaulted in
repayment of dues to any financial institution or bank or debenture
holder.
iii) Based on our examination and 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.
iv) The company is not a chit/nidhi/mutual benefit fund/society and
therefore clause xiii of the order is not applicable.
v) The company is not dealing or trading in shares, securities,
debentures and other investment.
vi) On the basis of the information and explanation given to us the
company has given corporate guarantee for loans taken by others from
banks, the terms and conditions thereof are not prima-facie prejudicial
to the interest of the Company.
vii) In our opinion, the term loans were applied for the purpose for
which they were raised.
viii) On the basis of our examination of the books of accounts and the
information and explanation given to us, in our opinion, the funds
raised on short-term basis have not been used for long term investment.
ix) During the year, 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.
x) The company did not have any outstanding debentures during the year.
xi) Based on the audit procedures performed and information and
explanation given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
(RAKESH K. MILWANI)
PROPRIETOR: MILWANI ASSOCIATES
Membership No.36099
Place : Mumbai
Date: 29-05-2010