Mar 31, 2011
1. We have audited the attached Balance Sheet of POLAR PHARMA INDIA
LIMITED as at 31st March 2011, and the related Profit & Loss Account
and the Cash Flow Statement for the year ended on that date both
annexed thereto, which we have been signed under reference to the
report. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's 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 and 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.
4. Attention is drawn to the following notes on Schedule 17 to the
accounts;
i) Note B.5 regarding Non-disclosure of dues to Micro, Small and Medium
Enterprises as required under MSMED Act, 2006. The consequential impact
thereof on the results for the period is not ascertainable.
ii) Note B.6 regarding non-provision of interest and liquidity damages
due to default in re-payment of loans to IIBI and the resulting impact
on the year's loss and year-end net assets is not ascertainable.
iii) Note B.7 regarding non-availability of confirmation of balances
from Sundry Debtors, Sundry Creditors and Advances. Adjustment, if any,
which may arise on receipt of confirmations with their consequential
impact on the year's loss and year-end net assets is not ascertainable.
5. Further to our comments in the Annexure referred to in paragraph
'3' above, 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 account as required by law have
been kept by the company so far as appears from our examination of such
books;
iii) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, the Profit & Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in the sub-section (3C) of
Section 211 of the Companies Act, 1956;
v) On the basis of written representations received from the directors
as on 31st March, 2011 and taken on record by the Board of Directors,
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 Act;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement together
with significant Accounting Policy and the notes thereon, attached
thereto give the information required by the Act in the manner so
required and subject to our observations in paragraph 4 above regarding
consequential effect on the year's loss and year-end net assets of the
Notes on Accounts referred to in paragraphs 4 above being not
ascertainable, give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(b) in the case of Profit & Loss Account, of the loss of the Company
for the year ended on that date;
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS'REPORT
OF POLAR PHARMA INDIA LIMITED.
(Referred to in Paragraph 3 of our report of even date)
1. a) The company has maintained proper records showing full
particulars, including quantitative details
and situation of fixed assets.
b) The company's fixed assets are physically verified by the management
in regular intervals as per a programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the year, in our opinion do not
constitute a substantial part of the fixed assets of the company and
such disposal has not affected the going concern status of the company.
2. a) The inventories have been physically verified during the year by
the management.
b) On the basis of information received, in our opinion, the procedures
of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business.
c) Based on our examination of the records of inventory, we are of the
opinion that the company has maintained proper records of inventory. No
major discrepancies were noticed on physical verification of the
inventories.
3. a) The company has not granted any loans, secured and unsecured,
during the year to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956.
b) The company has not taken any loans, secured and unsecured, during
the year from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, internal control system is adequate commensurate with the
size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. In our opinion and according to the information and explanations
given to us, there were no contracts or arrangements referred to in
Section 301 of the Act during the year under review to be entered in
the Register required to be maintained under that Section.
6. In our opinion and according to the information and explanations
given to us, the company has not taken any fresh deposits from the
public as contained in the provisions of Section 58A and Section 58AA
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 or any other relevant provisions of the Act.
7. Internal audit of the company is being conducted by a firm of
Chartered Accountants. In our opinion, the scope of the audit needs to
be strengthened.
8. We have been informed that the Central Government has not
prescribed the maintenance of cost records under section 209(1 )(d) of
the Companies Act, 1956.
9. a) According to the information and explanations given to us and
the records of the company examined
by us, in our opinion, the company is generally regular in depositing
undisputed statutory dues. including Investor Education and Protection
Fund, Sales tax, Customs duty, Service Tax, Excise Duty, Cess and any
other statutory dues with the Appropriate Authorities except Provident
Fund, Employees' State Insurance contributions and Tax deducted at
Source. Further, an amount of Rs 167.55 lacs on account of Provident
Fund, Employees' State Insurance contributions, Gratuity and Tax
deducted at Source are due for more than six months as at the last date
of the year.
b) According to the information and explanations given to us and the
records of the company examined by us, there were no dues of Income
Tax, Customs Duty, Wealth Tax, Excise Duty, Cess which have not been
deposited on account of any dispute except the following:________
Name of Forum where the Amount of claim
Statute dispute is pending (Rs)
Orissa Appellate Tribunal, 65,63,141/-
Sales Cuttack
Tax Act
Provident Regional Provident 24,62,089/-
Fund Act Fund Commissioner
- Orissa
10. In our opinion, the accumulated losses of the company have
exceeded its net worth. Further, the company has incurred cash losses
during the financial year under review and in the immediately preceding
financial year.
11. According to the information and explanations given to us, and on
the basis of our examination of the records and documents, the company
has not repaid principal amounting to Rs.720.00 lacs to Industrial
Investment Bank of India and an amount of Rs.2,400.16 lacs has again
become payable to Stressed Assets Stabilization Fund (SASF) on
revocation of the negotiated settlement.
12. According to the information and explanations given to us and the
records of the company examined by us, the company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. According to the information and explanations given to us and the
records of the company examined by us, the provisions of any special
statute applicable to chit fund / nidhi mutual benefit fund/societies
are not applicable to the company.
14. According to the information and explanations given to us and the
records of the company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments, in the
normal course of business.
15. According to the information and explanations given to us and the
records of the company examined by us, the company has not given any
guarantee for loans taken by others from Financial Institution or Bank,
which is prejudicial to the interest of the company.
16. According to the information and explanations given to us and on
an overall examination of accounts and records, we report that company
has not availed any term loan during the year.
17. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the company, we report that
no funds raised on short terms basis have been used for long- term
investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
19. The company has not issued any Debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. During the course of our examination the books and records of the
company, carried out in accordance with the generally accepted auditing
practices in India, and according to information and explanation given
to us, We have neither come across any instance of fraud on or by the
company, noticed or reported during the year, nor we have been informed
of such case by the management.
For LB. Jha & Co.
Chartered Accountants
(Registration No. 301088E)
J. Sil
Partner
Membership No. 12723
8, Netaji Subhas Road
Kolkata - 700 001
Dated: 11th August, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of POLAR PHARMA INDIA
LIMITED as at 31st March 2010, the Profit & Loss Account and the Cash
Flow Statement for the year ended on that date both annexed thereto.
These financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2.. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors 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 and 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.
4. Further to our comments in the Annexure referred to in paragraph
3 above, 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 purpose of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of such
books;
iii) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, the Profit & Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in the sub-section (3C) of
Section 211 of the Companies Act, 1956;
v) On the basis of written representation received from the directors
of the company as on March 31, 2010 and taken on record by the Board of
Directors of the company, two directors from the financial year 2005-06
had disqualified from being appointed/re-appointed in any company as
directors in view of violation of section 274(1 )(g) of Companies Act,
1956 by one of the companies in which these two directors were on the
board of directors of the said company;
vi) Non disclosure of dues to Micro Small & Medium Enterprises as
required under the MSMED Act 2006, (refer to note B-5 in Schedule 17)
vii) Non confirmation of balanced lying under advances, sundry debtors
and sundry creditors (refer to note B-6 in Schedule 17)
viii) Non provision of interest and liquidated damages due to default
in repayment of loans to IIBI (refer note B-7(i) in Schedule 17),
amount not ascertainable
In our opinion and to the best of our information and according to the
explanations given to us the said accounts subject to para 4 above give
a true and fair view in conformity with the accounting principles
generally accepted in India.
(a) in the case of Balance Sheet of the state of affairs of the company
as at 31st March, 2010;
(b) in the case of Profit & Loss Account of the loss of the company for
the year ended on that date;
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF POLAR PHARMA INDIA LIMITED.
(Referred to in Paragraph 3 of our report of even date)
1. a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The companys fixed assets are physically verified by the management
in regular intervals as per a programme of verification which, in our
opinion, is reasonable having regard to the size of the company and
the nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the year, in our opinion do not
constitute a substantial part of the fixed assets of the company and
such disposal has not affected the going concern status of the company.
2. a) The inventory has been physically verified during the year by
the management.
b) On the basis of information received, in our opinion, the procedures
of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business,
c) Based on our examination of the records of inventory, we are of the
opinion that the company has maintained proper records of inventory. No
major discrepancies were noticed on physical verification of the
inventories.
3. a) The company has not granted any loans, secured and unsecured,
during the year to companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
b) The company has not taken any loans, secured and unsecured, during
the year from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, internal control system is adequate commensurate with the
size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. In our opinion and according to the information and explanations
given to us, there were no contracts or arrangements referred to in
Section 301 of the Act during the year under review.
6. In our opinion and according to the information and explanations
given to us, the company has not taken any fresh deposits from the
public as contained in the provisions of Section 58A and Section 58AA
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975.
7. Internal audit of the company is being conducted by a firm of
Chartered Accountants. In our opinion, the scope of the audit needs to
be strengthened.
8. We have been informed that the Central Government has not
prescribed the maintenance of cost records under section 209(1 )(d) of
the Companies Act, 1956.
9. a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the company
is generally regular in depositing undisputed statutory dues including
Investor Education and Protection Fund, Sales tax, Customs duty,
Service Tax, Excise Duty, Cess and any other statutory dues with the
Appropriate Authorities except Provident Fund, Employees State
Insurance contributions and Tax deducted at Source. Further, an amount
of Rs 172.10 lacs on account of Provident Fund, EmployeesState
Insurance contributions, Gratuity and Tax deducted at Source are due
for more than six months as at the last date of the year.
b) According to the information and explanations given to us and the
records of thecompany examined by us, there were no dues of Income Tax,
Customs Duty, Wealth Tax, Excise Duty, Cess which have not been
deposited on account of any dispute except the following:
Name of Statute Forum where the dispute is
pending Amount of claim(Rs)
Orissa Sales Tax Act Appellate Tribunal, Cuttack 2,19,525/-
Provident Fund Act Regional Provident Fund
Commissioner - Orissa 24,62,089/-
10. In our opinion, the accumulated losses of the company have
exceeded its net worth. Further, the company has incurred cash losses
during the financial year under review and in the immediately preceding
financial year.
11. According to the information and explanations given to us, and on
the basis of our examination of the records and documents, the company
has not repaid loan installments amounting to Rs.730.00 lacs to
Industrial Investment Bank of India and amount not ascertainable in
respect of loan installments payable to Stressed Assets Stabilization
Fund (SASF) after revocation of the negotiated settlement.
12. According to the information and explanations given to us and the
records of the company examined by us, the company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. According to the information and explanations given to us and the
records of the company examined by us, the provisions of any special
statute applicable to chit fund / nidhi mutual benefit fund/societies
are not applicable to the company.
14. According to the information and explanations given to us and the
records of the company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments, in the
normal course of business.
15. According to the information and explanations given to us and the
records of the company examined by us, the company has not given any
guarantee for loans taken by others from Financial Institution or Bank,
which is prejudicial to the interest of the company.
16. According to the information and explanations given to us and on
an overall examination of accounts and records, we report that company
has not availed any term loan during the year.
17. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the company, we report that
no funds raised on short terms basis have been used for long-term
investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
19. The company has not issued any Debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us and on
overall examination of the accounts and records of the company, no
fraud on or by the company was noticed or reported during the year.
For L. B. JHA & CO.
CHARTERED ACCOUNTANTS
(Registration No. 301088E)
8, Netaji Subhas Road (J. Sil)
Kolkata - 700 001 Partner
Dated : 30th July,2010 Membership No. 12723