Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of BLISS GVS PHARMA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs(financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity ofthe Company in accordance withthe accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2018, and its profit (financial performance, including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matters
i. We draw attention to Note No. 3,11 and 37(Related party) to the Standalone IND AS financial statements in respect of our reliance on the management representation in respect of the recoverability of the Companyâs investments in and loans to two of its subsidiaries (net of the amount realisable/receivable on disposal of a step down subsidiary) aggregating to Rs. 4,603.39 Lakhs.
Our opinion is not modified in respect of these matters.
Other Matter
The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended March 31, 2017 and March 31, 2016 dated May 16, 2017 and May 24, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us and on which we have issued separate auditorâs reports, to the Board of Directors dated May 17, 2018.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) ofthe Act, we give inâAnnexure Aâa statement on the matters specified in paragraphs 3 and 4 of the Order.
2. The Company was required under Section 124(6) of the Act to transfer its equity shares, where the dividend is not claimed for last seven years to the Investor Education and Protection Fund (Rule 6 of Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 effective from September 7, 2016 as amended from time to time.) by November 30, 2017 (including grace period of 30 days). The Company is under process of completing the said process as on date.
Our opinion is not modified in respect of this matter.
3. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as at 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 âAnnexure Bâ.
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 the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 35 to the standalone Ind AS 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.
iii. Following are the instances of delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company:
Sr |
Dividend |
Particulars |
Due Date of |
Date of |
Delay |
No |
Amount |
transfer |
Transfer |
in days |
|
1 |
15,53,605 |
Final Dividend for |
September |
December 13, |
94 |
Year 2009 - 10 |
10,2017 |
2017 |
|||
2 |
9,64,244 |
Interim Dividend |
January 7, |
March 7, 2018 |
58 |
for Year 2010 - 11 |
2018 |
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT
Referred to in in Para 1 âReport on Other Legal and Regulatory Requirementsâ in our Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended March 31, 2018.
Statement on Matters specified in paragraphs 3 & 4 of the Companies (Auditorâs Report) Order, 2016:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, the Fixed Assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years which, the frequency of which in our opinion, is reasonable having regard to the size of the Company and nature of its assets. Pursuant to the programme the fixed assets of the Company have been physically verified by the management. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
(c) According to the information and explanations given to us and on the basis of examination of the records of the company, the title deeds of immovable properties are held in the name of the Company.
ii. The inventory including stocks with certain third parties have been physically verified by the management during the year. Confirmations have been obtained for other inventories lying with third parties. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt in the books of account.
iii. According to the information and explanations given to us and to the best of our knowledge and belief, the Company has granted unsecured loans, to companies, covered in the Register maintained under section 189 of the Act aggregating to Rs. 9329.19 Lakhs as at March 31, 2018.
(a) The aforesaid loans have been made to its subsidiaries. According to the information and explanations given to us and having regards to the managementâs representation that the loans are to these subsidiaries of the Company in the interest of the Companyâs business, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company.
(b) According to the information and explanations given to us and to the best of our knowledge no schedule of repayment of principal and payment of interest has been stipulated in respect of loan and hence it is not possible to comment on the regularity of payment of principal and interest.
(c) In respect of these loans, in view of no specific stipulation as to payment of principal and interest, we are unable to comment on the overdue amount, if any, on such loans.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013, and the Rules framed thereunder in respect of loans to investments in guarantees and other securities given by the Company.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any Deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Rules framed there under are not applicable.
vi. The Central Government of India has not specified the maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the products of the Company. Accordingly, the provisions of para 3(vi) of the Order are not applicable to the Company.
vii. (a) According to the information and explanations given to us and the records examined by us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues with the appropriate authorities. According to the information and explanations given to us, there are no arrears of outstanding statutory dues in respect of above as on the last day of the financial year for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us and the records examined by us, there are no material dues of Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise and Value added tax and cess which have not been deposited on account of any dispute.
viii. According to information and explanation given to us and based on examination of the records, the Company has not defaulted in repayment of loans or borrowings to any financial Institution and banks during the year. The Company does not have any loans or borrowings from government or debenture holders. The Company has not issued any debentures.
ix. The Company has not raised money through initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us and based on the documents and records examined by us on an overall basis, the term loans obtained by the Company were applied for the purpose for which the loans were obtained.
x. During the course of our examination of the books of account and records of the Company, and according to the information and explanation given to us and representations made by the Management, no material fraud by or on the Company by its officers or employees, has been noticed or reported during the year, nor have we been informed of any such case by the management.
xi. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Accordingly, provisions of paragraph 3(xii) of the Order are not applicable.
xiii. According to the information and explanation given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with sections 177 and 188 of the Act, where applicable, and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with the directors or persons connected with him. Hence the provisions of Section 192 of the Act are not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934, hence the provisions of paragraph 3 (xvi) of the Order are not applicable.
ANNEXURE B TO THE INDEPENDENT AUDITORâS REPORT
Referred to in Para 3 (f) âReport on Other Legal and Regulatory Requirementsâ in our Independent Auditorâs Report to the members of the Company on the standalone Ind AS financial statements for the year ended March 31, 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of BLISS GVS PHARMA LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) 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 companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and 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.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the âInstitute of Chartered Accountants of Indiaâ.
For KALYANIWALLA & MISTRY LLP
Chartered Accountants
Firm Regn. No. 104607W / W100166
Sai Venkata Ramana Damarla
Partner
Membership. No. 107017
Place: Mumbai
Dated: May 17, 2018
Mar 31, 2017
Independent Auditor''s Report
To the Members of Bliss GVS Pharma Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Bliss GVS Pharma Limited ("the Company"), which comprise the balance sheet as at March 31, 2017, and the related statement of profit and loss and cash flow 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 that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2017, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
9. We draw attention to Note 13 to the Standalone financial statements in respect of our reliance on the management representation in respect of the recoverability of the Company''s investments in and loans to two of its subsidiaries (net of the amount realisable/receivable on disposal of a step down subsidiary) aggregating to '' 10,049.12 lakhs.
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 (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 I 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 purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss and 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, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended);
e. On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, 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 internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure II.
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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 26 to the financial statements
ii. The Company does not have any long term contracts including derivate contracts for which there were any material foreseeable losses.
iii. During the year, there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The company has provided requisite disclosures in the standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Refer Note 37 to the financial statements. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the company and as produced by to us by the Management.
Annexure I to our report on the Standalone Financial Statements of Bliss GVS Pharma Limited referred to in our report of even date:
1 (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years which, the frequency of which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme the fixed assets of the Company have been physically verified by the management. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2 The inventory including stocks with certain third parties have been physically verified by the management during the year. Confirmations have been obtained for other inventories lying with third parties. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt in the books of account.
3 According to the information and explanations given to us and to the best of our knowledge and belief, the Company has granted unsecured loans, to companies, covered in the Register maintained under section 189 of the Act aggregating to Rs, 10,172.21 Lakhs as at March 31, 2017.
(a) The aforesaid loans have been made to its subsidiaries. According to the information and explanations given to us and having regards to the management''s representation that the loans are to these subsidiaries of the Company in the interest of the Company''s business, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company.
(b) According to the information and explanations given to us and to the best of our knowledge no schedule of repayment of principal and payment of interest has been stipulated in respect of loan and hence it is not possible to comment on the regularity of payment of interest and principal.
(c) In respect of these loans, in view of no specific stipulation as to payment of interest and principal, we are unable to comment on the overdue amount, if any, on such loans.
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 Companies Act, 2013, and the Rules framed there under in respect of loans to investments in guarantees and other securities given by the Company.
5 In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits to which the directives issued by the Reserve Bank of India and the provisions of Sections 73-76 of the Act apply. Accordingly, the provisions of para 3(v) of the Order are not applicable to the Company.
6 The Central Government of India has not specified the maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the products of the Company. Accordingly, the provisions of para 3(vi) of the Order are not applicable to the Company.
7 (a) According to the records of the Company and
information and explanations given to us, the Company is generally 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 applicable statutory dues with the appropriate authorities. According to the records of the Company and information and explanations given to us, none of the aforementioned amounts are outstanding at the balance sheet date for a period of more than 6 months from the date they became due.
(b) According to the information and explanation given to us and records of the Company examined by us, there are no dues of income tax, sales tax, wealth tax, service-tax, duty of excise, duty of customs, value added tax, and cess which have not been deposited on account of any dispute.
8 Based on the records examined by us and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution, bank or Government during the year. The Company has not issued any debentures.
9 In our opinion and according to the information and explanations given to us, the term loans availed by the Company have been applied by the Company for the purposes for which they were obtained. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year.
10 During the course of our audit, 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 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 such case by the management.
11 Based on the records examined by us and according to the information and explanations given to us, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12 In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, the provisions of para 3(xii) of the said Order are not applicable.
13 Based on the records examined by us and according to the information and explanations given to us, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14 Based on the records examined by us and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15 Based on the records examined by us and according to the information and explanations given to us, the Company has not entered into non-cash transactions with the directors or persons connected with him. Accordingly, the provisions of para 3(xv) of the Order is not applicable.
16 In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Bliss GVS Pharma Limited ("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
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that operate 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 Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For B. K. Khare & Co.
Chartered Accountants
Firm''s Registration Number 105102W
Himanshu Chapsey
Partner
Date: May 16, 2017 Membership Number105731
Place: Mumbai
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Bliss GVS Pharma Limited ("the Company"), which comprise the balance
sheet as at March 31, 2015, and the related statements of profit and
loss and cash flow for the year then ended, and a summary of the
significant accounting policies and other explanatory information
("standalone financial statements").
Management''s Responsibility for the Financial Statements
2. The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone
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, the
accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made thereunder.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone 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 standalone financial
statements. The procedures selected depend on the auditor''s judgment,
including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal financial
control relevant to the Company''s preparation of the standalone
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 accounting policies
used and the reasonableness of the accounting estimates made by the
Company''s Directors, as well as evaluating the overall presentation of
the standalone 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 explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India of the state of
affairs of the Company as at March 31,2015, and its profit and its cash
flows for the year ended on that date.
Emphasis of matter
9. We draw attention to Note XI(a) to the standalone financial
statements in respect of our reliance on the management representation
in respect of the recoverability of the Company''s investment in and
loans to two of its subsidiaries aggregating Rs. 6,990.24 lakhs.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor''s Report) Order, 2015, issued
by the Central Government of India in terms of sub- section (11) of
section 143 of the Act (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 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
purpose of our audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. the Balance Sheet, the Statement of Profit and Loss and 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, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as
amended);
e. on the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2015, from being appointed
as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014 (as amended), in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position as at balance sheet date.
ii. The Company has long-term contracts including derivate contracts
as at March 31, 2015 for which there were no material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 31,2015.
Annexure to Independent Auditors'' Report
Referred to in paragraph 10 of the our report of even date on the
standalone financial statements as at and for the year ended March
31,2015
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme 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 have been noticed on such verification.
ii. (a) The inventory has been physically verified by the Management
during the year. In respect of inventory lying with third parties, these
have been substantially confirmed by them. In our opinion, the frequency
of verification is reasonable.
(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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. According to the information and explanations given to us, the
Company has granted unsecured loans to six companies covered in the
register maintained under Section 189 of the Act aggregating to Rs.
9,193.92 lacs as at March 31,2015
(a) The above loans have been given without stipulation as to
installments of interest payments and repayment of principal. Hence we
are unable to comment on the regularity of payment of principal and
interest.
(b) In view of the above, we are also unable to comment on the overdue
amounts, if any.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits to which the
directives issued by the Reserve Bank of India and the provisions of
Sections 73-76 of the Act and the Rules framed thereunder apply.
Accordingly, the provisions of clause 3(v) of the Order are not
applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
specified under sub-section (1) of Section 148 of the Act, and are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
vii. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, except for
advance income tax payable for the year ended March 31, 2015, the
Company is generally regular in depositing the undisputed statutory
dues, including provident fund, employees'' state insurance, sales tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax, cess and other material statutory dues, as applicable, with the
appropriate authorities. Of the total advance tax, outstanding as at
March 31, 2015, an amount of Rs 1,183.47 lakhs (excluding interest
thereon) is outstanding at March 31, 2015 for a period of more than 6
months from the date it became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
sales-tax, wealth-tax, service-tax, duty of customs, and duty of excise
or value added tax or cess which have not been deposited on account of
any dispute.
(c) The amounts required to be transferred to the Investor Education
and Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made thereunder.
viii. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. Further, the Company has not issued any debentures
during the year.
x. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees aggregating Rs
3217.15 lacs given by the Company for loans taken by its two subsidiary
companies from banks are not prejudicial to the interest of the
Company.
xi. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the management.
For B K Khare & Co
Firm Registration Number: 105102W
Chartered Accountants
Himanshu Chapsey
Partner
Membership Number 105731
Place: Mumbai
Date: May 29, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Bliss GVS
Pharma Limited, ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Managements Responsibility for the Financial Statements
1. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act 2013. This responsibility includes
the design, implementation and maintenance of internal controls
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditors Responsibility
2. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
3. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity''s internal control. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the
financial statements.
4. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
5. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
6. 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 Act (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 a statement on the matters specified in
paragraphs 4 and 5 of the Order.
7. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss and Cash Flow
dealt with by this Report are in agreement with the books of accounts;
d. In our opinion, the Balance Sheet, the Statements of Profit and Loss
and Cash Flow dealt with by this report, comply with the Accounting
Standards notified under the Companies Act, 1956 read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013;
e. On the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the
Board of Directors, none of the Directors is disqualified as on March
31, 2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the Management according
to a phased programme designed to cover all the items over a period of
3 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.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed of
by the Company during the year.
ii. (a) The inventory including stocks with third parties has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. The Company has not granted/taken any loans, secured or unsecured,
to companies, forms or other parties covered in the register maintained
under Section 301 of the Act. Therefore, the provisions of Clause
4(iii) (b), (c), (d), (f) and (g) of the said Order are not applicable
to the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v (a) In our opinion, and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(c) In our opinion and according to the information and explanations
given to us, having regard to the explanation that many of the items
are of a special nature and their prices cannot be compared with
alternative quotations, the transactions made in pursuance of contracts
or arrangements referred to in section 301 of the Act, 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 Sections 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 the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. 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 regular in depositing the undisputed statutory dues, including
provident fund, investor education and protection fund, employees''
state insurance, income tax, sales tax, wealth tax, service tax,
customs duty, excise duty and other material statutory dues, as
applicable, with the appropriate authorities.
b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
sales-tax, wealth-tax, service-tax, customs duty, and excise duty which
have not been deposited on account of any dispute.
x. The Company has no accumulated losses as at the end of the financial
year and it has not incurred cash losses in the financial year ended on
that date and in the immediately preceding financial year.
xi. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
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. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies 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.
xv. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees aggregating to Rs.
4000.52 lacs, given by the Company, to banks for loans taken by the
Companies
Subsidiary Companies are not prejudicial to the interest of the
Company.
xvi. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
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 during the year.
xix. The Company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end.
xx. The Company has not raised any money by public issues during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For B K Khare & Co.
Chartered Accountants
Firm Reg. No.: 105102W
Devdatta Mainkar
Partner
Membership Number:
109795
Place: Mumbai
Date :26th May 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Bliss GVS
Pharma Limited("the Company"), which comprise the Balance Sheet as
at March 31,2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("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 a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date and;
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
7. 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 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 a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
(c) During the year, Company has not disposed of any substantial/major
part of fixed assets.
ii. (a) The inventory excluding stocks with third parties has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. The Company has not granted/taken any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Therefore, the provisions of Clause
4(iii) (b), (c), (d), (f) and (g) of the said Order are not applicable
to the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the public within
the meaning of Sections 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 the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. (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 regular in depositing the undisputed statutory dues, including
provident fund, investor education and protection fund, employees''
state insurance, income tax, sales tax, wealth tax, service tax,
customs duty, excise duty and other material statutory dues, as
applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-
tax, sales-tax, wealth-tax, service-tax, customs duty, and excise duty
which have not been deposited on account of any dispute.
x. The Company has no accumulated losses as at the end of the
financial year and it has not incurred cash losses in the financial
year ended on that date and in the immediately preceding financial
year.
xi. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
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.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
xiii. As the provisions of any special statute applicable to chit
fund/ nidhi/ mutual benefit fund/ societies are not applicable to the
Company, the provisions of Clause 4(xiii) of the Order 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. Accordingly, the
provisions of Clause 4(xiv) of the Order are not applicable to the
Company.
xv. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company to banks for loans taken by the Company''s wholly owned
subsidiary companies, are not prejudicial to the interest of the
Company.
xvi. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvii.According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
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 during the year. Accordingly, the provisions of Clause
4(xviii) of the Order are not applicable to the Company.
xix. The Company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end. Accordingly, the provisions of Clause 4(xix) of the
Order are not applicable to the Company.
xx. The Company has not raised any money by public issues during the
year. Accordingly, the provisions of Clause 4(xx) of the Order are not
applicable to the Company.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For B K Khare & Co.
Chartered Accountants
Firm Reg. No. 105102W
Devdatta Mainkar
Place: Mumbai
Partner
Place : Mumbai Membership Number 109795
Date: 28th May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Bliss GVS Pharma
Limited as at 31st March 2012 and also the Statement of Profit and Loss
and the Cash Flow Statement of the Company for the year ended on that
date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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, 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 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:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as it appears from our examination of the
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
5. 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, on
the said date.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
ii) in the case of the 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.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph (3) of our report of even date on the accounts
of Bliss GVS Pharma Limited ended 31st March 2012.
1) Fixed assets:
(i) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(ii) The Company has a program for physical verification of fixed
assets at periodic intervals. In our opinion, the period of
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies have been reported
on such verification.
(iii) In our opinion and according to information given to us disposal
of fixed assets does not affect the going concern assumption of the
company.
2) Inventories:
The Management has conducted physical verification of inventory at
reasonable intervals. 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.
The Management has conducted physical verification of inventory at the
year end. 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. The
Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
3) Loans and Advances granted/taken from certain entities:
The company has not taken / granted secured or unsecured loans from /
to a party covered by register maintained under section 301 of the
Companies Act, 1956. Therefore, provisions of sub-clause (b), (c), (d),
(e), (f) and (g) of sub-para (iii) of para 4 of the Order are not
applicable.
4) Internal Control System :
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, for the
purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5) Contracts or agreements referred to in section 301 of the Companies
Act, 1956:
(i) In our opinion and according to the information and explanation
given to us, there were no transactions exceeding the value ofRs.five
Lacs in case of any party that need to be entered in the Register
maintained in pursuance of section 301 of the Companies Act, 1956.
(ii) Where each of such transactions exceeding the value of Rs.five Lacs
in case of any party, having regard to explanations that most of the
items transacted are of special nature and suitable alternative sources
are not readily available for obtaining comparable quotations, the
transactions have been made at prices which are prima facie reasonable.
6) Public Deposits:
In our opinion and according to the information and explanations given
to us, the Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the Companies Act, 1956, and the
rules framed there under.
7) Internal Audit System:
In our opinion, the Company has an internal audit system commensurate
with the size of the Company and nature of its business.
8) Cost Records:
We have broadly reviewed the books of accounts maintained by the
Company relating to the manufacture of pharmaceutical products pursuant
to the rules made by the Central Government for the maintenance of cost
records under Section 209(1) (d) of the Companies Act, 1956 and are of
the opinion that prima facie the prescribed accounts and records have
been maintained. We have not, however, made a detailed examination of
the records with a view to determine whether they are accurate or
complete.
9) Statutory Dues:
(i) According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Service tax, Cess and other statutory dues applicable to it with
the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Wealth Tax, Sales Tax, Service
tax, Customs Duty and Excise Duty were outstanding at the year end for
a period of more than six months from the date they became payable.
(ii) According to the information and explanations given to us, there
are no dues of Sales Tax, Customs Duty, Wealth Tax, Excise Duty or Cess
outstanding on account of any dispute.
10) Accumulated Losses:
The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
11) Dues to Financial Institutions, Banks and Debenture holders:
According to the information and explanations given to us and based on
the documents and records produced to us, the Company has not defaulted
in repayment of dues to a financial institution or bank or debenture
holders.
12) Security for Loans & Advances Granted:
According to the information and explanations given to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13) Special Statute:
In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit
fund/ societies.
14) Dealings/Trading in Shares, Securities, Debentures and other
investments:
The Company does not deal or trade in shares, securities, debentures
and other investments.
15) Guarantees given:
In our opinion and according to the information and explanations given
to us, terms and condition of guarantee given by the Company to a Bank
for loan taken by the Company's wholly owned subsidiary company is
prima facie not prejudicial to the interest of the Company.
16) Term Loans:
In our opinion and according to the information and explanations given
to us, the term loans have been applied for the purposes for which they
were obtained.
17) Utilisation of Funds:
According to the information and explanations given to us and based on
an overall examination of the Balance Sheet and Cash Flows of the
Company, we report that the Company has not utilized funds raised on
short-term basis for long-term investments.
18) Preferential Allotment of Shares:
The Company has not made any preferential allotment of shares during
the year.
19) Security for Debentures Issued :
The Company has not issued any debentures during the year.
20) Public Issue of Equity Shares:
The Company has not raised any money through a public issue during the
year.
21) Frauds Noticed:
Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For B. K. Khare and Co.
Chartered Accountants
Firm Reg.No. 105102W
Devdatta Mainkar
Place: Mumbai Partner
Date: 30th May 2012 M.No.109795
Mar 31, 2011
1. We have audited the attached Balance Sheet of Bliss GVS Pharma
Limited as at 31 st March 2011 and also the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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, 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 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:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as it appears from our examination of the
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
I
d) In our opinion, the Balance Sheet Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
5. 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, on
the said date.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011,
ii) in the case of the Profit and Loss Account, 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.
ANNEXURE TO THE AUDITORS REPORT
Referred to in Paragraph (3) of our report of even date on the accounts
of Bliss GVS Pharma Limited ended 31st March 2011.
1) Fixed assets:
(I) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(ii) The Company has a program for physical verification of fixed
assets at periodic intervals. In our opinion, the period of
verification is reasonable having regard to the size of the Company and
the Nature of its assets. No material discrepancies have been reported
on such verification.
(iii) In our opinion and according to information given to us disposal
of fixed assets does not affect the going concern assumption of the
company.
2) Inventories:
The Management has conducted physical verification of inventory at
reasonable intervals. 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.
The Management has conducted physical verification of inventory at the
year end. 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.
The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification..
3) Loans and Advances granted/taken from certain entities:
The company has not taken / granted secured or unsecured loans from /
to a party covered by register maintained under section 301 of the
Companies Act, 1956. Therefore, provisions of sub-clause (b), (c), (d),
(e), (f) and (g) of sub-para (iii) of para 4 of the Order are not
applicable.
4) Internal Control System :
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, for the
purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5) Contracts or agreements referred to in section 301of the Companies
Act, 1956 :
(i) In our opinion and according to the information and explanations
given to us, the transactions for the year that needed to be entered in
the register maintained under section 301 of the Companies Act, 1956,
have been so entered.
(ii) In our opinion and according to the information and explanations
given to us, the transactions exceeding the value of Rs.5,00,000 each
have been made at a price, reasonable having regard to the prevailing
market prices at the relevant time.
6) Public Deposits:
In our opinion and according to the information and explanations given
to us, the Company has not accepted any deposits from the public within
the meaning of section 58A and 58AA of the Companies Act, 1956, and the
rules framed thereunder.
7) Internal Audit System :
In our opinion, the Company has an internal audit system commensurate
with the size of the Company and nature of its business.
8) Cost Records :
As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956, in respect of the activities carried on by the
Company.
9) Statutory Dues:
(I) According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Service tax, Cess and other statutory dues applicable to it with
the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Wealth Tax, Sales Tax, Service
tax, Customs Duty and Excise Duty were outstanding at the year end for
a period of more than six months from the date they became payable
except Income Tax demand of Rs.183.69 lacs for the A.Y 2007-08 in
respect of which appeal is pending before Commissioner of Income Tax
(Appeals).
(ii) According to the information and explanations given to us, there
are no dues of Sales Tax, Customs Duty, Wealth Tax, Excise Duty or Cess
outstanding on account of any dispute.
10) Accumulated Losses:
The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
11) Dues to Financial Institutions, Banks and Debenture holders:
According to the information and explanations given to us and based on
the documents and records produced to us, the Company has not defaulted
in repayment of dues to a financial institution or bank or debenture
holders.
12) Security for Loans & Advances Granted:
According to the information and explanations given to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13) Special Statute:
In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit
fund/ societies.
14) Dealings/Trading in Shares, Securities, Debentures and other
investments:
The Company does not deal or trade in shares, securities, debentures
and other investments.
15) Guarantees given:
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16) Term Loans:
In our opinion and according to the information and explanations given
to us, the term loans have been applied for the purposes for which they
were obtained.
17)Utilisation of Funds:
According to the information and explanations given to us on an overall
examination of the Balance Sheet and Cash Flows of the Company, we
report that the Company has not utilized funds raised on short-term
basis for long-term investments.
18) Preferential Allotment of Shares:
The company has not made any preferential allotment of shares during
the year.
19) Security for Debentures Issued :
The Company has not issued any debentures during the year.
20) Public Issue of Equity Shares :
The Company has not raised any money through a public issue during the
year.
21) Frauds Noticed:
Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For B. K. Khare and Co.
Chartered Accountants
Place: Mumbai
Date: 30th May 2011
Devdatta Mainkar
Partner
M.No.109795
Firm Reg.No. 105102W
Mar 31, 2010
1. We have audited the attached Balance Sheet of Bliss GVS Pharma
Limited as at 31st March 2010 and also the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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, 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 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:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company so far as it appears from our examination of the
books.
c) The Balance Sheet, 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, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
5. On the basis of the written representations received from the
Directors as on 31st March, 2010, and taken on record by the Board of
Directors, we report that, none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956, on
the said date.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
I) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010,
ii) in the case of the Profit and Loss Account, 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.
ANNEXURE TO THE AUDITORS1 REPORT Referred to in Paragraph (3) of our
report of even date on the accounts of Bliss GVS Pharma Limited ended
31" March 2010.
1) Fixed assets:
(I) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(ii) The Company has a program for physical verification of fixed
assets at periodic intervals. In our opinion, the period of
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies have been reported
on such verification
(iii) In our opinion and according to information given to us the fixed
assets has not been disposed off during the year.
2) Inventories:
The Management has conducted physical verification of inventory at
reasonable intervals.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.In
our opinion, the Company is maintaining proper records of inventory.
Having regards to the size of operations of the Company and nature of
stocks held, no material discrepancies were noticed on physical
verification. In case of material lying with third parties,
certificates confirming stocks have been received as on balance Sheet
date.
3) Loans and Advances granted/taken from certain entities:
The Company has taken unsecured loan from a party listed in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount outstanding during the year and the year end balance is
Rs.Nil. The rate of interest and other terms and conditions of the loan
is not prima-facie prejudicial to the interest of the company.
4) Internal Control System :
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business, for the
purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5) Contracts or agreements referred to in section 301 of the Companies
Act, 1956 :
(i) In our opinion and according to the information and explanations
given to us, the transactions for the year that needed to be entered in
the register maintained under section 301 of the Companies Act, 1956,
have been so entered.
(ii) In our opinion and according to the information and explanations
given to us, the transactions exceeding the value of Rs.5,00,000 each
have been made at a price, reasonable having regard to the prevailing
market prices at the relevant time.
6) Public Deposits:
In our opinion and according to the information and explanations given
to us, the Company has not accepted any deposits from the public within
the meaning of section 58Aand 58AA of the Companies Act, 1956, and the
rules framed thereunder.
7) Internal Audit System :
The Company has an internal audit system, which in our opinion needs to
be strengthen substantially.
8) Cost Records:
As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under section 209(1 )(d) of the
Companies Act, 1956, in respect of the activities carried on by the
Company.
9) Statutory Dues:
(I) According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Service tax, Cess and other statutory dues applicable to it with
the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Wealth Tax, Sales Tax, Service
tax, Customs Duty and Excise Duty were outstanding at the year end for
a period of more than six months from the date they became payable
except Income Tax demand of Rs. 183.69 lacs for the A.Y. 2007-08 in
respect of which appeal is pending before Commissioner of Income Tax
(Appeals).
(ii) According to the information and explanations given to us, there
are no dues of Sales Tax, Customs Duty, Wealth Tax, Excise Duty or Cess
outstanding on account of any dispute.
10) Accumulated Losses:
The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
11) Dues to Financial Institutions, Banks and Debenture holders:
According to the information and explanations given to us and based on
the documents and records produced to us, the Company has not defaulted
in repayment of dues to a financial institution or bank or debenture
holders.
12) Security for Loans & Advances Granted:
According to the information and explanations given to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13) Special Statute:
In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit
fund/ societies.
14 Dealings/Trading in Shares, Securities, Debentures and other
investments:
The Company does not deal or trade in shares, securities, debentures
and other investments.
15) Guarantees given
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16) Term Loans:
In our opinion and according to the information and explanations given
to us, the term loans have been applied for the purposes for which they
were obtained.
17) Utilisation of Funds:
According to the information and explanations given to us on an overall
examination of the Balance Sheet and Cash Flows of the Company, we
report that the Company has not utilized funds raised on short-term
basis for long-term investments.
18) Preferential Allotment of Shares:
Company has not made any preferential allotment of shares during the
year.
19) Security for Debentures Issued:
The Company has not issued any debentures during the year.
20) Public Issue of Equity Shares :
The Company has not raised any money through a public issue during the
year.
21) Frauds Noticed:
Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For B. K. Khare and Co.
Chartered Accountants
Santosh Parab
Partner
M. No. 47942
Firm Reg. No. 105102W
Place: Mumbai
Date: 29th May 2010
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