Mar 31, 2023
Marksans Pharma Limited
Report on the Audit of the Standalone Financial StatementsOpinion
We have audited the accompanying standalone financial statements of Marksans Pharma Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2023, and the Statement of Profit and Loss (Including Other Comprehensive Income), 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 significant accounting policies and other explanatory information.
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 (âthe Actâ) 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 Companies (Indian Accounting Standards) Rules, 2015, as amended (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and profit, other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs 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 (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone financial statements for the year ended March 31, 2023. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business
Responsibility and Sustainability Report, Corporate Governance and Shareholderâs Information, but does not include the standalone financial statements and our auditorâs report thereon. The Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business
Responsibility and Sustainability Report, Corporate Governance and Shareholderâs Information is expected to be made available to us after the date of this auditorâs report.
Our opinion on the standalone financial statements does not cover the other information and we will 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 Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholderâs Information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance under SA 720 âThe Auditorâs responsibilities Relating to Other Informationâ.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companyâs 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
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order,
2020 (âthe Orderâ), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Act, we
give in âAnnexure Bâ a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flow 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 Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 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 with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Câ.
(g) 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 has disclosed in Note 42 the impact of pending litigations on its financial position in its standalone financial statements.
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 - Refer Note 24 to the standalone financial statements.
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 Accounting Standards 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
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 auditorâs 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.
We give in âAnnexure Aâ a detailed description of Auditorâs responsibilities for Audit of the Standalone Financial Statements.
The standalone financial statements of the Company for the year ended March 31, 2022, were audited by another auditor whose report dated May 30, 2022 expressed an unmodified opinion on those standalone financial statements.
Our opinion is not modified in respect of the above matter.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to
the best of its knowledge and belief, 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 (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, 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, as on the date of this audit report, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and (b) above, contain any material mis-statement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
The Board of Directors of the Company have declared interim dividend for the year after the closure of financial year ended March 31, 2023. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend. (Refer Note 17 on Other Equity to the standalone financial statements).
vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the company only w.e.f. April 1, 2023, reporting under this clause is not applicable.
3. In our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within the limits laid prescribed under Section 197 of the Act and the rules thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Bhavik L. Shah
Partner
Membership No. 122071
UDIN: 23122071BGXNRN4810
Place: Mumbai
Date: May 30, 2023
Mar 31, 2018
1. We have audited the accompanying standalone Ind AS financial statements of MARKSANS PHARMA LTD ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
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 standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance including other comprehensive income, cash flow and statement of changes in equity 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, read with the Companies Indian Accounting Standards Rules 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit of the Ind AS Financial Statement in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An Audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements.
8. In our opinion and to the best of our information and according to the explanation given to us the aforesaid standalone Ind AS financial statements give the required information 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 Ind AS specified under Section 133 of the Act:-
(i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;
(ii) In the case of Statement of Profit and Loss, of the profit including other comprehensive income for the year ended on that date;
(iii) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
9. We draw attention to Note No 25.1 to the Ind AS financial statements regarding pending approval of the Central Government for the excess managerial remuneration of Rs. 79,52,068.00 paid to the Whole-time Director Dr. Vinay Gopal Nayak for the financial year 2016-17 due to inadequacy of profits. Pending such approvals, no adjustments have been made in the accounts for the year ended 31st March, 2017, and the excess amount is held by the Whole-time Director in trust for the Company. Our Opinion is not modified in respect of the above matter.
10. The Company had prepared separate sets of statutory Ind AS financial statements for the year ended 31st March, 2017 and 31st March, 2016 in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) on which the previous Auditor issued auditors''s reports to the shareholders of the Company dated 29th May, 2017 and 30th May, 2016 respectively. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us. Our opinion is not modified in respect of this matter.
11. As required by ''the Companies (Auditor''s Report) Order, 2016'', issued by the Central Government of India in terms of subsection (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 the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
12. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, 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 Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 as amended.
(e) On the basis of the written representations received from the directors as on March 31, 2018 and taken on record by the Board of Director, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A to this report.
(g) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Ind AS specified under Section 133 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, knowledge and belief and according to the information and explanations given to us :
(i) The company does not have any pending litigation which would impact its financial position on its Ind AS financial position in its Standalone Financial Statement.
(ii) The Company did not have any long term contracts, including derivative contracts as at 31st March, 2018; as such the question of commenting on any material foreseeable losses thereon does not arise.
(iii) There has not been occasion in case of the Company during the year under report to transfer any sums to the investor Education And Protection Fund. The Question of delay in transferring such sums does not arise.
Referred to in paragraph 12(f) of the Independent Auditor''s Report of even date to the members of MARKSANS PHARMA LTD on the standalone Ind AS financial statements for the year ended March 31, 2018.
Report of the Internal Financial controls under clause (i) of Sub-section 3 of Section 143 of the Act.
1. We have audited the internal financial controls over financial reporting of Marksans Pharma Ltd ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
2. 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 (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the 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 Act.
3. 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 deemed to be prescribed under section 143(10) of the Act to
the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our Audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining 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.
5. 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.
6. 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 purpose 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 transaction 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.
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper Management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial 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.
8. In our opinion, to the best of our information and accordingly to the explanations given 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 March 31, 2018, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Referred to in paragraph 11 of the Independent Auditor''s Report of even date to the members of MARKSANS PHARMA LTD on the standalone Ind AS financial statement as of and for the year ended March 31, 2018.
(1) (a) In our Opinion and according to the information given to us, the company is maintaining proper records showing full particulars, including quantitative details and situation of its Property, Plant & Equipment i.e. Fixed Assets.
(b) In our Opinion and according to the information given to us, all fixed assets i.e. the Property, Plant & Equipment have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification.
(c) In our Opinion and according to the information given to us and to the best of our knowledge and belief the title deeds of immovable properties are held in name of the Company. In respect of immovable property taken on lease is disclosed in fixed assets in Standalone Financial Statements, the lease agreement are in the name of the Company.
(2) In our Opinion and according to the information given to us, physical verification of inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed.
(3) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(4) 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 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(5) In our Opinion and according to the information and explanation given to us, the Company has not accepted any deposit from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.
(6) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for maintenance of cost records under sub section (1) of section 148 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However we are neither required to carry out nor have carried out any detailed examination of such accounts and records.
(7) (a) In our opinion and according to the information given to us, the Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, GST, cess and any other statutory dues to the appropriate authorities applicable to it.
(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, GST and Cess were in arrears, as at 31-03-2018 for a period of more than 6 months from the date they became payable.
(8) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(9) According to the records of the Company examined by us and as per the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, the provisions of Clause 3(ix) of the order are not applicable to the Company.
(10) During the course of our examination of the books amd records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
(11) According to the information and explanations given to us and based on our examination of the records of the Company, the managerial remuneration paid or provided to the Whole-time Director Dr. Vinay Gopal Nayak during the financial year 201617 is in excess of the limits prescribed under Section 197 read with Schedule V of the Act by H 79,52,068.00 due to inadequacy of profits. Members of the Company have at the 25th Annual Genera Meeting held on 26th September, 2017 approved waiver of recovery of such excess payment subject to approval of the Central Government. The Company has submitted application to the Central Government for approval which is pending. Pending such approval, no adjustments have been made in the accounts for the year ended 31st March, 2017, and the excess amount is held by the Whole-time Director in trust for the Company.
(12) The Company is not Nidhi Company and Nidhi Rules 2014, are not applicable to it, the provisions of clause 3(xii) of the order are not applicable.
(13) In our opinion and according to the information and explanations given to us, the Company is in compliance with section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable Ind AS.
(14) The Company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the order are not applicable to the Company.
(15) In our opinion and according to the information and explanation given to us, during the year the Company has not entered into any non-cash transaction with its Directors or persons connected to its Directors and hence provision of section 192 of the Act are not applicable.
(16) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For V. S. Lalpuria & co.
Chartered Accountants
FR No. 105581W
V. S. Lalpuria
Place: Mumbai (Proprietor)
Date: 30th May, 2018 M No. 015926
Mar 31, 2017
To
The Members of
MARKSANS PHARMA LTD Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of MARKSANS PHARMA LTD ("the Company"), which comprise the Balance Sheet as at March 31, 2017, 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 Standalone 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 standalone financial statements to 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 and Accounting Standard 30, Financial Instruments: Recognition and Measurement issued by the Institute of Chartered Accountants of India to the extent it does not contradict any other accounting standard referred to in Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 auditors'' 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. 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 standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanation given to us, the aforesaid standalone financial statements give the required information 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 :-
(i) In the case of the Balance Sheet, of the State of affairs of the Company as at March 31, 2017;
(ii) In the case of Statement of Profit and Loss, of the Profit for the year ended on that date;
(iii) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
Emphasis of Matter
9. We draw attention to Note No 21.1. to the financial statements regarding the remuneration paid to the Whole-time Director Dr. Vinay Gopal Nayak in excess of the limits prescribed under Section 197 read with Schedule V of the Act by Rs. 79,52,068.00, due to inadequacy of profits. The Company is in the process of complying with the statutory requirements prescribed to regularise such excess payment including seeking approval of Members and the Central Government, as necessary. Pending such approvals, no adjustments have been made in the accounts for the year ended 31st March, 2017, and the excess amount is held by the Whole-time Director in trust for the Company. Our Opinion is not modified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
10. As required by ''the Companies (Auditor''s Report) Order, 2016'', issued by the Central Government of India in terms 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 the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, 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 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 March 31, 2017 taken on record by the Board of Director, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the 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 knowledge and belief and according to the information and explanations given to us :
(i) The company does not have any pending litigation which would impact its financial position.
(ii) The Company did not have any long term contracts, including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
(iii) There has not been occasion in case of the Company during the year under report to transfer any sums to the Investor Education And Protection Fund. The Question of delay in transferring such sums does not arise.
(iv) The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated November 8, 2016 of the Ministry of Finance, during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed and the representation provided to us by the Management, we report that the disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the Management.
Report of the Internal Financial Controls under Clause (i)
Referred to in paragraph 10(f) of the Independent Auditor''s Report of even date to the members of MARKSANS PHARMA LTD on the standalone financial statements for the year ended March 31, 2017. of Sub-section 3 of Section 143 of the Act.
1. We have audited the internal financial controls over financial reporting of Marksans Pharma Ltd ("the Company") as of March 31, 2017 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
2. 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 (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the 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 Act.
Auditor''s Responsibility
3. 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 deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our Audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining 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.
5. 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
6. 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 purpose 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 transaction 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
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper Management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial 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
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
(1) (a) In our Opinion and according to the information given to us, the company is maintaining proper records showing full particulars, including quantitative details and situation of its Property, Plant & Equipment.
(b) In our Opinion and according to the information given to us, the Property, Plant & Equipment have been physically verified by the Management at reasonable intervals and no material discrepancies were noticed on such verification.
(c) In our Opinion and according to the information given to us and to the best of our knowledge and belief the title deeds of immovable properties are held in name of the Company.
(2) In our Opinion and according to the information given to us, physical verification of inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed.
(3) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(4) 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 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
Name of the Statute |
Nature of the Dues |
Amount (In Rs, Lakh) |
Period to which the amount relates |
Forum where disputes are pending |
Commissioner of Sales Tax |
Sales Tax (BST, CST) - 04-05 |
0.28 |
2004-2005 |
Commissioner of Sales Tax (Appeal) |
(5) In our Opinion and according to the information and explanation given to us, the Company has not accepted any deposit from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(6) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for maintenance of cost records under sub section (1) of section 148 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However we are neither required to carry out nor have carried out any detailed examination of such accounts and records.
(7) (a) In our opinion and according to the information
given to us, the Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities applicable to it.
(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, Sales Tax, Wealth Tax, Custom Duty , Excise Duty and Cess were in arrears, as at 31-032017 for a period of more than 6 months from the date they became payable. The sales tax which have not been deposited on account of disputes and the forum where the dispute is pending are as under:
(8) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(9) According to the records of the Company examined by us and as per the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, the provisions of Clause 3(ix) of the order are not applicable to the Company.
(10) During the course of our examination of the books amd records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
(11) According to the information and explanations given to us and based on our examination of the records of the Company, the managerial remuneration paid or provided to the Whole-time Director Dr. Vinay Gopal Nayak is in excess of the limits prescribed under Section 197 read with Schedule V of the Act by Rs. 79,52,068.00, due to inadequacy of profits. The Company is in the process of complying with the statutory requirements prescribed to regularise such excess payment including seeking approval of Members and the Central Government, as necessary. Pending such approvals, no adjustments have been made in the accounts for the year ended 31st March, 2017, and the excess amount is held by the Whole-time Director in trust for the Company.
(12) The Company is not Nidhi Company and Nidhi Rules 2014, are not applicable to it, the provisions of clause 3(xii) of the order are not applicable.
(13) In our opinion and according to the information and explanations given to us, the Company is in compliance with section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(14) The Company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the order are not applicable to the Company.
(15) In our opinion and according to the information and explanation given to us, during the year the Company has not entered into any non-cash transaction with its Directors or persons connected to its Directors and hence provision of section 192 of the Act are not applicable.
(16) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For N K MITTAL & ASSOCIATES
Chartered Accountants
FR No. 113281W
CA N K MITTAL
Place : Mumbai (Proprietor)
Date : 29th May, 2017 M No. 046785
Mar 31, 2015
We have audited the accompanying standalone financial statements of
MARKSANS PHARMA LIMITED ("the company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and Cash
Flow Statement for the year ended 31st March, 2015 and a summary of
significant accounting policies and other explanatory information .
Management's Responsibility for the Financial Statements The Management
and Board of Directors of the company are responsible for the matters
stated in Section 134 (5) of the Companies Act 2013, ('the act') with
respect of the preparation of theses standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flow of the Company in accordance with the
Accounting Standards specified under Section 133 of the Companies Act
2013, read with rule 7 of the Companies (Accounts) Rule 2014. This
responsibility includes maintenance of adequate accounting records in
accordance with provisions of the Act for safeguarding the assets of
the Company and preventing and detecting frauds and other
irregularities: selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; design, implementation and maintenance of adequate internal
control, that are operating effectively for ensuring the accuracy and
completeness of the accounting records, 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's Responsibility
Our responsibility is to express an opinion on these financial
statement based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standard and matters which are required to be included in
the audit report under the provision of the Act and rules made there
under.
We conducted our audit in accordance with 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 procedure to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgments, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risks assessments, the auditors
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 control
system over financial reporting and the operating and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting polices used and the reasonableness
of the accounting estimates made by Company's management and Board of
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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanation given to us the aforesaid standalone financial statements
give the required information 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 :-
(i) In the case of the Balance Sheet, of the State of affairs of the Company as
at 31st March 2015;
(ii) In the case of Statement of Profit and Loss, of the Profit for the
year ended on that date; and
(iii) In the case of Cash Flow Statement of the Cash Flows for the year
ended on that date.
Report on the Other Legal and Regulatory Requirements 1. As required by
the Companies (Auditor's Report) Order, 2015, ("the Order") issued by
the Central Government of India in terms of sub section (11) of Section
143 of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the said Order.
2. As required by Section 143(3) of the Act, we further report that :
(i) 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.
(ii) 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
those books;
(iii) 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;
(iv) In our opinion, the aforesaid financial statements comply with the
applicable Accounting Standard specified under section 133 of the Act
read with Rule 7 of the Companies (Accounts) Rule 2014.
(v) On the basis of the written representations received from the
Directors as on 31st March, 2015 and taken on record by the Board of
Directors, that none of the Directors is disqualified as on 31st March,
2015 from being appointed as a Director in terms of sub-section (2) of
section 164 of the Act.
(vi) In our opinion and to the best of our information and according to
the explanation given to us, we report as under with respect to the
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules 2014.
a) The Company does not have any pending litigation which would impact
its financial position.
b) The Company did not have any long term contracts, including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
c) There has not been occasion in case of the Company during the year
under report to transfer any sums to the Investor Education And
Protection Fund. The question of delay in transferring such sums does
not arise.
CARO 2015 Report on the standalone financial statement of Marksans
Pharma Limited for the year
1. (a) The Company is maintaining proper records showing full
particulars, about its quantitative details and situation where it is
located.
(b) The fixed assets are physically verified by the management
according to a phased programmed designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
2. (a) Physical verification of inventory (excluding stocks with third
parties) has been conducted at reasonable intervals by the management.
In respect of Inventory lying with third parties, these have
substantially been confirmed by them.
(b) In our opinion, the procedures of physical verification of the
inventory followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
(c) The Company has maintained proper records of inventory and as per
the information and explanation given to us, no material discrepancies
were noticed on physical verification .
3. The company has not taken/granted any loan secured or unsecured
from/to companies, firm or other parties covered under register
maintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations
given to us, there are an adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to the sale and services. In our opinion &
according to the information and explanations given to us, we have not
observed any major weakness in the internal control system during the
course of the audit.
5. In Our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from the public
within the meaning of section 73 to 76 or any other relevant provisions
of the Companies Act, 2013.
6. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under sub section (1) of Section 148 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. However we are neither
required to carry out nor have carried out any detailed examination of
such accounts and records.
7. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Employee's State
Insurance, Cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Sales Tax, Wealth
Tax, Custom Duty, Excise Duty and Cess were in arrears, as at
31-03-2015 for a period of more than 6 months from the date they became
payable. The sales tax 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 Amount Period to
which the Forum where
disputes are
(In Rs.
Lacs) amount
relates pending
Commissioner
of Sales Tax Sales Tax
(BST,CST)
- 04-05 0.28 2004-2005 Commissioner
of Sales Tax
(Appeal)
Commissioner
of Sales Tax Sales Tax
(BST,CST)
- 04-05 7.62 2004-2005 Commissioner
of Sales Tax
(Appeal)
Total 7.90
(c) According to the information and explanations given to us, there
has not been any occasion of the Company during the year under report
to transfer any sums to Investor Education and Protection Fund.
8. In our opinion and according to the information and explanations
given to us, the accumulated losses of the Company were H24427.16 lacs
as on 31-03-2014. The Company has earned profit of H6710.99.lacs during
the current financial year and Net Worth of the Company is H35817.78 as
on 31-03-2015.
9. According to the information and explanation given to us, the
Company has not defaulted in payments of dues to financial institution
and bank and debenture holders.
10. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
given guarantee to Bank for loans taken by its Subsidiary Company the
terms and conditions whereof are not prejudicial to the interest of the
company.
11. According to the records of the company examined by us and as per
the information and explanation given to us, the
Term Loans and Cash Credit loans availed by The company were prima
facie, applied for the purpose for which the loans were obtained.
12. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
misstated. Clause Para 4 matters listed in the Companies (Auditor's
Report) Order 2015 for the year ended 31st March 2015 is not applicable
to the company.
For N. K. MITTAL & ASSOCIATES
Chartered Accountants
FR No. 113281W
[CA N. K. MITTAL]
Place : Mumbai Proprietor
Date : 30th May, 2015 M No 46785
Mar 31, 2014
We have audited the accompanying financial statements of MARKSANS
PHARMA LIMITED ("the company"), which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit & Loss and Cash Flow
Statement for the year ended as on 31st March, 2014 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 theses 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 Section 211 (3C) of the
Companies Act 1956, ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
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 accounting standards 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 any material misstatement.
An audit involves performing a procedure to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgments, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risks assessments, the auditors
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting polices used
and reasonable 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
explanation given to us, the said financial statements together with
the notes thereon, 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 :
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(ii) In the case of Statement of Profit & Loss, of the Profit for the
year ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on the Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2. As required by Section 227(3) of the Act, we 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 accounts as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in Section 211(3C) of the Act, to the extent applicable; and
(v) On the basis of the written representations received from the
Directors as on 31st March, 2014 and taken on record by the Board of
Directors, we report that 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 section 274 of the Act.
Annexure Re: MARKSANS PHARMA LIMITED, 31st March, 2014 Referred to in
point no.1 of our report of even date.
i. (a) The company has maintained proper records showing particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. We have been informed that no material
discrepancies were noticed on such verification.
ii. (a) Physical verification of inventory (excluding stocks with third
parties) has been conducted at reasonable intervals by the management.
In respect of inventory lying with third parties, these have
substantially been confirmed by them.
(b) In our opinion, 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) The company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. The company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
iv. In our opinion, there are adequate internal control procedures
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.
v. (a) According to the information & explanations given to us, the
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 the information and explanation
given to us, the transaction made
in pursuance of such contracts or arrangements exceeding the value of
five lacs rupees have been entered during the period 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 within
the meaning of section 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. However
we are neither required to carry out nor have carried out any detailed
examination of such accounts and records.
ix. (a) The company is regular in depositing 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.
(b) According to the information & explanations given to us, no
undisputed amounts payable in respect of Income-tax, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty and cess were in arrears, as at 31st
March, 2014, for a period of more than 6 months from the date they
became payable.
(c) According to the information & explanations given to us, the dues
of Sales-tax 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 Amount
(Rs in Lacs)
Commissioner of Sales Sales Tax (BST,CST) - 04- 0.28
Tax 05
Commissioner of Sales Sales Tax (BST,CST) - 04- 7.62
Tax 05
Period to which Forum where disputes are
the amount relates pending
2004-2005 Commissioner of Sales
Tax Appeal
2004-2005 Commissioner of Sales
Tax Appeal
x. In our opinion and according to the information and explanation
given to us, the accumulated losses of the company were Rs.29,421.52 Lacs
as on 31.03.13. The Company has earned profit of Rs.5,555.71 Lacs during
the current financial year and the Net Worth of the Company is
Rs.15,991.99 Lacs as on 31.03.2014.
xi. According to the information & explanations given to us, the
company has not defaulted in payments of dues to financial institution
& banks.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
xv. The company has given guarantee to Bank for loans taken by its
Subsidiary Company.
xvi. Term loans availed by the Company were, prima facie, applied for
the purpose for which the loans were obtained.
xvii. On an overall basis, the funds raised on short-term basis have,
prima facie, not been used for long term investment and vice versa.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by public issues during the year.
xxi. Based on the checks carried out by us, any fraud on or by the
company has not been noticed or reported during the year.
For N. K. MITTAL & ASSOCIATES
Chartered Accountants
FR No. 113281W
[N. K. MITTAL]
Place : Mumbai Proprietor
Date : 29th May, 2014 M No 46785
Mar 31, 2013
We have audited the accompanyin" financial statements of MARKSANS
PHARMA LIMITED (the company"), which comprise the Balance Sheet as at
31st March 2013, the Statement of Profit & Loss and Cash Flow Statement
for the year ended on 31st March 2013 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 theses 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 Section 211 (3C) of the
Companies Act 1956, ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
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 accounting standards 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 any material misstatement.
An audit involves performing a procedure to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgments, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risks assessments, the auditors
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting polices used
and reasonable 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
explanation given to us, the said financial statements together with
the notes thereon, 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 : -
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
(ii) In the case of Statement of Profit & Loss, of the Profit for the
year ended on that date; and
(Hi) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on the Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2. As required by Section 227(3) of the Act, we 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 accounts as required by law have
been kept by the company so far as appears from our examination of
those books;
(Hi) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statements dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in Section 211 (3C) of the Act, to the extent applicable and
(v) On the basis of the written representations received from the
Directors as on March 31, 2013 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2013 from being appointed as a Director in terms of clause
(g) of su b-section (1) of section 274 of the Act.
ANNEXURE
Re: MARKSANS PHARMA LIMITED, 31st March, 2013
Referred to in point no.1 of our report of even date.
i. (a) The company has maintained proper records showing particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. We have been informed that no material
discrepancies were noticed on such verification.
ii. (a) Physical verification of inventory (excluding stocks with third
parties) has been conducted at reasonable intervals by the management.
In respect of inventory lying with third parties, these have
substantially been confirmed by them.
(b) In our opinion, 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) The company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. The company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
iv. In our opinion, there are adequate internal control procedures
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.
v. (a) According to the information & explanations given to us, the
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 the information and explanation
given to us, the transaction made in pursuance of such contracts or
arrangements exceeding the value of five lacs rupees have been entered
during the period 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 within
the meaning of section 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. However
we are neither required to carry out nor have carried out any detailed
examination of such accounts and records.
ix. (a) The company is regular in depositing 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.
(b) According to the information & explanations given to us, no
undisputed amounts payable in respect of Income-tax, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty and cess were in arrears, as at 31st
March 2013, for a period of more than 6 months from the date they
became payable.
(c) According to the information & explanations given to us, the dues
of Sales-tax which have not been deposited on account of disputes and
the forum where the dispute is pending are as under:
Name of the Nature of the
Dues Amount
(In Lacs) Period to
which the Forum where
Statute amount
relates disputes are
pending
Commissioner
of Sales Tax
(BST, 15.14 2003-2004 Commissioner of
Sales Tax CST) - 03-04 sales Tax Appeal
Commissioner
of Sales Tax (BST, 0.28 2004-2005 Commissioner of
Sales Tax CST) - 04-05 Sales Tax Appeal
Commissioner
of Sales Tax (BST, 7.62 2004-2005 Commissioner of
Sales Tax (CST) - 04-05 Sales Tax Appeal
x. In our opinion and according to the information and explanation
given to us, the accumulated losses of the company wereRs. 33,380 Lacs as
on 31.03.12. The Company has earned profit of Rs. 3,958 Lacs during the
current financial year and the Net worth of the Company is Rs. 10,998
Lacs as on 31.03.2013.
xi. According to the information & explanations given to us, the
company has not defaulted in payments of dues to financial institution
& banks.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
xv. The company has given guarantee to Bank for loans taken by its
Subsidiary Company.
xvi. Term loans availed by the Company were, prima facie, applied for
the purpose for which the loans were obtained.
xvii. On an overall basis, the funds raised on short-term basis have,
prima facie, not been used for long term investment and vice versa.
xviii.The Company has made preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by public issues during the year.
xxi. Based on the checks carried out by us, any fraud on or by the
company has not been noticed or reported during the year.
FOR N. K. MITTAL & ASSOCIATES
Chartered Accountants
FR NO. 113281W
N. K. MITTAL
(Proprietor)
M. NO. 46785
Place : Mumbai
Date : 27th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of MARKSANS PHARMA LIMITED
("the Company") as at 31st March 2012 and also the Statement of
Profit & Loss and the 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.
We 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.
We report as follows:
1) As required by the Companies (Auditors' Report) Order, 2003 (as
amended) by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Sub Section (4A)
of Section 227 of The Companies Act, 1956, of India (the Act) and on
the basis of such checks of the books of accounts of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2) 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 purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet and the 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 and the Statement of Profit & Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of Clause
(g) of sub section (1) of Section 274 of the Companies Act, 1956;
3) Without qualifying our opinion we draw attention : -
a) To Note No.9.1 of the financial statements, wherein as explained,
the Company's outstanding liabilities of Rs. 19746.64 Lacs are in
respect of Zero Coupon Foreign Currency Convertible Bond November,
2005. The Bonds have become due for redemption on 09th November 2010,
and were not redeemed. These bonds have redemption premium of Rs. 8925.48
Lacs.
b) To Note No.1 of the financial statements, wherein the entire net
worth of the company is eroded as on 31st March, 2011.
c) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes, give the information required by the Companies Act, 1956 and 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, 2012.
ii) In the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date, and
iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE
Re: MARKSANS PHARMA LIMITED, 31st March, 2012
Referred to in point no.1 of our report of even date.
i. (a) The company has maintained proper records showing particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. We have been informed that no material
discrepancies were noticed on such verification.
(c) Substantial parts of Intangible assets have been impaired during
the year.
ii. (a) Physical verification of inventory (excluding stocks with
third parties) has been conducted at reasonable intervals by the
management. In respect of inventory lying with third parties, these
have substantially been confirmed by them.
(b) In our opinion, 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) The company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. The company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
iv. In our opinion, there are adequate internal control procedures
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.
v. (a) According to the information & explanations given to us, the
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 the information and explanation
given to us, the transaction made in pursuance of such contracts or
arrangements exceeding the value of five lacs rupees have been entered
during the period 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 within
the meaning of section 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. However
we are neither required to carry out nor have carried out any detailed
examination of such accounts and records.
ix. (a) The company is regular in depositing 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.
(b) According to the information & explanations given to us, no
undisputed amounts payable in respect of Income- tax, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty and cess were in arrears, as at 31st
March 2012, for a period of more than 6 months from the date they
became payable.
(c) According to the information & explanations given to us, the dues
of Sales-tax, Wealth Tax, Custom Duty, Excise Duty and cess which have
not been deposited on account of disputes and the forum where the
dispute is pending are as under:
Name of
the Nature of
the Dues Amount Period to
which Forum where
disputes are
Statute (In Lacs) the amount pending
relates
Commissioner
of Sales Tax
(BST,CST)
- 03-04 15.14 2003-2004 Commissioner of
Sales tax
Sales Tax Appeal
Commissioner
of Sales Tax
(BST,CST) -
04-05 0.28 2004-2005 Commissioner of
Sales tax
Sales Tax Appeal
Commissioner
of Sales Tax
(BST,CST) -
04-05 7.62 2004-2005 Commissioner of
Sales tax
Sales Tax Appeal
x. In our opinion and according to the information and explanation
given to us , the accumulated losses of the company are more than its
net worth at the end of the financial year under report. The Company
has incurred cash losses during the current financial year as well as
in the previous financial year.
a) In our opinion and according to the information and explanation
given to us, the Company's outstanding liabilities of Rs. 19746.64 Lacs
are in respect of Zero Coupon Foreign Currency Convertible Bonds
November 2005. The Bonds have become due for redemption on 9th November
2010, and were not redeemed. These bonds have redemption premium of Rs.
8925.48 Lacs. The Company is in default in bond redemption.
b) In our opinion and according to the information and explanation
given to us the entire net worth of the company is eroded as on 31st
March, 2011.
xi. According to the information & explanations given to us, the
company has not defaulted in payments of dues to financial institution
& banks.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to
the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore, the
provisions of clause 4(xiv) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company.
xv. The company has given guarantee to Bank for loans taken by its
Subsidiary Company.
xvi. Term loans availed by the Company were, prima facie, applied for
the purpose for which the loans were obtained.
xvii. On an overall basis, the funds raised on short-term basis have,
prima facie, not been used for long term investment and vice versa.
xviii. The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
section 301 of the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by public issues during the year.
xxi. Based on the checks carried out by us, any fraud on or by the
company has not been noticed or reported during the year.
FOR N.K.MITTAL & ASSOCIATES
Chartered Accountants
N.K.MITTAL
(Proprietor)
M. NO. 46785
F. No. 113281W
Place : Mumbai
Date : 29th May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of MARKSANS PHARMA LIMITED
("the Company") as at 31st March 2011 and also the Profit & Loss
Account and the 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.
We 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.
We report as follows :
1) As required by the Companies (Auditors' Report) Order, 2003 (as
amended) by the Companies ( Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Sub Section (4A)
of Section 227 of The Companies Act, 1956, of India (the Act) and on
the basis of such checks of the books of records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2) 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 purposes of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet and the 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 the Profit & Loss Account and
Cash Flow Statement comply with the Accounting Standards referred to in
sub section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of the 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;
3) Without qualifying our opinion we draw attention
a) To Schedule No.17 Point 3 of the financial statements, wherein as
explained, the Company's outstanding liabilities are in respect of USD
43,999,000 (Rs. 19949.85 Lacs) zero coupon Foreign Currency Convertible
Bond November, 2005. The Bonds have become due for redemption on 09th
November 2010, and were not redeemed. These bonds have redemption
premium of USD 19.89 MN.(Rs. 9017.33 Lacs).
b) To Schedule No.17 Point 3 of the financial statements the entire net
worth of the company is eroded as on 31st March, 2011.
c) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes, give the information required by the Companies Act, 1956 and 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,
ii) In the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date,and
iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE Re: MARKSANS PHARMA LIMITED
Referred to in point no.1 of our report of even date.
i. (a) The Company has maintained proper records showing particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. We have been informed that no material
discrepancies were noticed on such verification.
(c) Substantial parts of fixed assets have been disposed off during the
year.
ii. (a) Physical verification of inventory (excluding stocks with third
parties) has been conducted at reasonable intervals by the management.
In respect of inventory lying with third parties, these have
substantially been confirmed by them.
(b) In our opinion, 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) The company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. The Company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
iv. In our opinion, there are adequate internal control procedures
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.
v. (a) According to the information & explanations given to us, the
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 the information and explanation
given to us the transaction made in pursuance of such contracts or
arrangements exceeding the value of five lacs rupees have been entered
during the period 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 within
the meaning of section 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. However
we are neither required to carry out nor have carried out any detailed
examination of such accounts and records.
ix. (a) The Company is regular in depositing 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.
(b) According to the information & explanations given to us, no
undisputed amounts payable in respect of Income-tax, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty and cess were in arrears, as at 31st
March 2011, for a period of more than 6 months from the date they
became payable.
(c) According to the information & explanations given to us, the dues
of Sales-tax, Wealth Tax, Custom Duty, Excise Duty and 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 Amount Period to
Dues (In Lacs) which the
amount relates
Commissioner of Sales Tax Sales Tax 11.51 2003-2004
(BST,CST) Ã
03-04
Commissioner of Sales Tax Sales Tax 7.62 2004-2005
(BST,CST) Ã
04-05
Name of the Statute Forum where disputes
are pending
Commissioner of Sales Commissioner of Sales
tax Appeal
Commissioner of Sales Commissioner of Sales
tax Appeal
x. In our opinion and according to the information and explanation
given to us , the accumulated losses of the company are more than its
net worth at the end of the financial year under report. The Company
has incurred cash losses only during the current financial year and not
during the preceding financial year.
a) In our opinion and according to the information and explanation
given to us, the Company's outstanding liabilities are in respect of
USD 43,999,000 (Rs. 19949.85 Lacs) zero coupon Foreign Currency
Convertible Bond November, 2005. The Bonds have become due for
redemption on 09th November, 2010, and were not redeemed. These bonds
have redemption premium of USD 19.89 MN. (Rs. 9017.33 Lacs).The
Company is in default in bond redemption.
b) In our opinion and according to the information and explanation
given to us the entire net worth of the Company is eroded as on 31st
March, 2011.
xi. According to the information & explanations given to us, the
company has not defaulted in payments of dues to financial institution
& banks.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Therefore, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
xv. The Company has given guarantee to Bank for loans taken by its
Subsidiary Company.
xvi. Term loans availed by the Company were, prima facie, applied for
the purpose for which the loans were obtained.
xvii. On an overall basis, the funds raised on short-term basis have,
prima facie, not been used for long term investment and vice versa.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by public issues during the year.
xxi. Based on the checks carried out by us, any fraud on or by the
company has not been noticed or reported during the year.
For N.K. MITTAL & ASSOCIATES
Chartered Accountants
N.K. MITTAL
(Proprietor)
M. No. 46785
F. No. 113281W
Place : Mumbai
Date : 28th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of MARKSANS PHARMA LIMITED
as at 31st March 2010 and the Profit & 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 conducted our audit in accordance with auditing standards generally
accepted in India. These 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.
We report as follows:
1) As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified therein.
2) Further to our comments in the Annexure referred to above, we state
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of these
books;
c) The Balance Sheet and the Profit and Loss Account and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
d) In our opinion the Balance Sheet and the Profit & Loss Account and
Cash Flow Statement comply
with the Accounting Standards referred with in Section 211(3C) of the
Companies Act, 1956;
e) On the basis of the written representations received from the
Directors of the Company and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as at 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 explanations given to us, the said accounts read together with the
notes, subject to note no.2 regarding non provision of Foreign exchange
loss on Foreign Currency Convertible Bonds, give the information
required by the Companies Act, 1956 and in the manner so required and
give a true and fair view in confirmity 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, 2010, and
ii) In the case of the Profit and Loss Account, of the profit of the
Company 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 Re: MARKSANS PHARMA LIMITED Referred to in point no.1 of our
report of even date.
i. (a) The company has maintained proper records showing particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. We have been informed that no material
discrepancies were noticed on such verification.
(c) Substantial parts of fixed assets have not been disposed off during
the year.
ii. (a) Physical verification of inventory (excluding stocks with third
parties) has been conducted at reasonable intervals by the management.
In respect of inventory lying with third parties, these have
substantially been confirmed by them.
(b) In our opinion, 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) The company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. The company has neither granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
iv. In our opinion, there are adequate internal control procedures
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.
v. (a) According to the information & explanations given to us, the
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, each of these transactions and exceeding the value
of five lakh rupees in respect of any party during the financial 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 any deposits from the public within
the meaning of section 58A and 58AA of the Act and the rules framed there
under.
vii. In our opinion, the company has an internal audit system commens
-urate with its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for mainte
-nance of cost records under clause (d) of sub-section (1) of section
209 of the Act and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However we are neither
required to carry out nor have carried out any detailed examination
of such accounts and records.
ix.(a) The company is regular in depositing 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.
(b) According to the information & explanations given to us, no
undisputed amounts payable in respect of Income-tax, Sales-tax, Wealth
Tax, Custom Duty, Excise Duty and cess were in arrears, as at 31st
March 2010, for a period of more than 6 months from the date they
became payable.
(c) According to the information & explanations given to us, there are
no dues of Sales-tax, Wealth Tax, Custom Duty, Excise Duty and cess
which have not been deposited on account of any dispute.
x.At the end of the financial year, the Company does not have
accumulated losses. The Company has not incurred cash losses in the
financial year under report and in the immediately preceding financial
year.
xi. According to the information & explanations given to us, the
company has not defaulted in payments of dues to financial institution
& banks.
xii. The company has not granted any loans and advances on the basis
of security by way of pledge of shares, ebentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable
to the Company.
xiv. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other Investments. Therefore the provisions
of clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable
to the Company.
xv. The company has given guarantee to Bank for loans taken by its
Subsidiary Company.
xvi. Term loans availed by the Company were, prima facie, applied for
the purpose for which the loans were obtained.
xvii. On an overall basis, the funds raised on short-term basis have,
prima facie, not been used for long term investment and vice versa.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by public issues during the year.
xxi. Based on the checks carried out by us, any fraud on or by the
company has not been noticed or reported during the year.
FOR N. K. MITTAL & ASSOCIATES
Chartered Accountants
N. K. MITTAL
( Proprietor)
M. NO. 46785
F. NO. 113281W
Place : Mumbai
Date : 12th August, 2010