Mar 31, 2015
We have audited the accompanying financial statements of Combat Drugs
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2015, 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
The company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (accounts) Rules, 2014. This responsibility also includes
maintainance 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 maintainance of appropriate accounting policies; making judgements
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the Audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 controls 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 Company'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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India of the state of affairs of the company as at 31st march, 2015 and
its loss and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts ) Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31 2015, and 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.
Annexure to Auditors Report
The Annexure referred to in our report to the members of the Company for
the year ended 331st March, 2015. We report that
i. a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its business. No material discrepancies were noticed on such
physical verification.
ii. a. The inventories have been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size and
nature of its business.
c. The Company has maintained proper records of its inventories. The
discrepancies noticed on verification between physical stocks and book
records were not material.
iii. a. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under Section 189 of the Act.
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, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
v. The company has not accepted any deposits within the meaning of the
Section 73 to 76 of the Act and the rules framed thereunder.
vi. Maintenance of cost records by the company has not been prescribed
by central government of India under Sub-Section (1) of Section 148 of
the Companies Act, 2013.
vii. a. According to the information and explanations given to us and
records of the Company examined by us the company is regular in
depositing undisputed statutory dues including Provident Fund, Smployees
State insurance, Income Tax, Sales Tax, value Added tax, Service Tax,
Customs Duty, Excise Duty, cess and any other statutory dues as
applicable with the appropriate authorities and there was no arrears of
outstanding statutory dues as on the last day of the financial year
concerned for a period of more than six months from the date they became
payable.
b. According to the information and explanations given to us and
records of the Company examined by us, there are no disputes pending
against the company as at 31st March, 2015.
c. There are no amounts which are required to be transferred to the
Investor Education and Protection Fund by the company.
viii. The company has accumulated losses at the end of the financial
year exceeding fifty percent of its net worth and it has incurred cash
losses during the financial year and in the immediately preceding
financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not taken any loan from financial
institutions, bank or through debentures. Accordingly, the provisions
of clause 3(ix) of Companies (Auditor's Report) Order, 2015 are not
applicable to the Company.
x. In our opinion and according to the information and explanations
given to us, the Company has not given any gurantee for loan taken by
others from banks or financial institutions Accordingly, the provisions
of clause 3(ix) of Companies (Auditor's Report) Order, 2015 are not
applicable to the Company.
xi. In our opinion and according to the information and explanation
given to us, the Company has not taken any term loans. Accordingly, the
provisions of clause 3(ix) of Companies (Auditor's Report) Order, 2015
are not applicable to the Company.
xii. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Anandam & Co.,
Chartered Accountants
(Firm Regn.No.000125S)
Sd/-
A.V.Sadasiva
Place: Secunderabad Partner
Date: 30th May, 2015 M.No.18404
Mar 31, 2014
We have audited the accompanying financial statements of Combat Drugs
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with General Circular
8/2014 dated 4th April, 2014 issued by Ministry of Corporate Affairs.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal controls 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 Company''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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with
general circular 8/2014, dated 4th April, 2014 issued by Ministry
Corporate Affairs;
e) On the basis of written representations received from the directors
as on March 31 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements of our report of even date
i. a. The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its business. No material discrepancies were noticed on such
physical verification.
c. The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
ii. a. According to the information and explanations given to us, the
management has physically verified the inventory but the count sheets
were not available for verification.
b. In the light of clause 4(ii)(a), it is hard to comment if the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size and
nature of Company.
c. In the light of clause 4(ii)(a), it is hard to comment if the
Company has maintained proper records of its inventories and if there
are any material discrepancies between physical stock and book records.
iii. a. The Company has not granted any loans to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
b. The Company has taken unsecured loans from two parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year and the year-end balance of
loans taken is Rs.5.18 Lakhs.
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the parties covered in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie prejudicial to the interest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
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, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the transactions 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 contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 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. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public.
vii. According to the information and explanations given to us, the
Company has an internal audit which is commensurate with the size and
nature of its business.
viii. Maintenance of cost records by the company has not been
prescribed by central government of India under Section 209(1) (d) of
the Companies Act, 1956.
ix. a. On verification it was found that the company was not regular in
depositing undisputed statutory dues relating to Employee State
insurance, Professional tax and Income tax with the appropriate
authorities and Rs.5,21,792 stood outstanding for six months or more as
on the last day of the financial year.
b. According to the information and explanations given to us and
records of the Company examined by us, particulars of sales tax, as at
31st March, 2014 for the amounts involved on account of dispute
pending, are as under:
Name of the Nature of Amount Period to Forum where
Statute the Dues (Rs. In which the dispute is
amount Lakhs) pending
relates
Central Sales Central 1.30 2012-13 Appellate
Tax Act, 1956 Sales Deputy
Tax Commissioner
(CT), Hyderabad
x. The company has accumulated losses not exceeding fifty percent of
its net worth and incurred cash losses during the financial year
covered by our audit but not incurred cash loss in the immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not taken any loan from financial
institutions, bank or through debentures. Accordingly, the provisions
of clause 4(xi) of Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xii. According to information and explanations given to us and based on
the documents and records produced to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund / nidhi/ mutual
benefit fund/ society. Accordingly the provisions of clause 4(xiii) if
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditors'' Report) Order,
2003 are not applicable to the Company.
xvi. In our opinion and according to the information and explanation
given to us, the Company has not taken any term loans. Accordingly, the
provisions of clause 4(xvi) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
xvii. In our opinion and according to the information and explanation
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 investments.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or Companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Anandam& Co.,
Chartered Accountants
(Firm Regn.No.000125S)
Sd/-
Place: Hyderabad A.V.SADASIVA
Date: 30th May'' 2014. Partner - M.No.018404
Mar 31, 2013
We have audited the financial statements of Combat Drugs Limited
(''the Company'') which comprise the Balance Sheet as at March 31,
2013, the Statement of Profit and Loss and the Cash Flow Statement for
the year then and a ummary of the significant accounting policies and
other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
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 maintainance 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
misstatement, weather due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards on Auditing issued by the Institute of Charted
Accountants of India. Those standards require that we comply ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depended on the auditors judgement including the assessment of
risk of material misstatement of the financial statements, wether due
to fraud or error. In making those risk assessment the auditor
considers the internal controls relevant to the company''s preparation
and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
management as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
as 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 case of the Balance sheet, of the state of affairs of the company
as at 31 March 2013,
b) In the case of the statement of Profit & Loss of the loss of the
year ended on that date.
c) In the case of the Cash Flow, of the Cash Flow for the year ended on
that date.
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2. As required by section 227(3) of the Act, we report that;
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 comply with the accounting standards referred to in Sub-
section (3C) of section 211 of the Companies Act, 1956
d) The Balance Sheet, Statement of Profit and Loss Account and Cash
flow statement dealt with by this report are in agreement with the
books of account;
e) On the basis of written representations received from the directors
as on 31 March 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 of the Company under clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956;
Annexure to Auditors'' Report
Referred to in paragraph under the heading of "Report on Other Legal
& Regulatory Requirements of our report of even date
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the Fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable having regard to the size of the company and the nature
of its business. No material Discrepancies were noticed on such
physical verification.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to effect its going concern status.
ii. (a) As per the information and explanations given to us, the
management has physically verified the inventory but count sheets were
not available for verification.
(b) In the light of clause 4(II)(a), it is hard to comment if the
procedure for physical verification of inventories followed by the
management are reasonable and adequate in nature to the size and
relation of the company.
(c) In the light of clause 4(II)(a), it is hard to comment if the
company has maintained proper records of its inventory and if there are
any material discrepancies between the physical stocks and the book
records.
iii. (a) The company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) The company has unsecured loan from two party covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the year-end balance is Rs.
5.18 Lakhs.
(c) In our opinion, the rate of intrest and other terms and conditions
on which loans have been taken from the parties covered in the register
maintained under Section 301 of the Companies Act, 1956 are not prima
facie prejudice to the interest of the company.
(d) The company is regular in repaying the principal amounts as
stipulated.
iv. 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 purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
v. (a) According to the information and explanations given to us, we
are of the opinion that the transactions 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 contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956, 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 prevailing market prices at the relevant
time.
vi. In our opinion and according to the information and explanations
given to us the Company has not accepted deposits from the public..
vii. According to the information and explanations given to us, the
Company has an internal audit system which is commensurate with the
size and nature of its business.
viii. Maintenance of cost records by the company has not been
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956.
ix. On verification it was found that the company was not regular
in depositing undisputed statutory dues relating to Employee State
Insurance, Professional Tax, & Income Tax with the appropriate
authority and Rs.5,21,792 stood outstanding for 6 months or more as on
the last day of the financial year.
x. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit or in the
immidiately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not taken any loan from any financial
institutions, banks or through debentures. Accordingly the provisions
of the clause 4(xi) of the companies (Auditors Report) order, 2003 are
not applicable to the company.
xii. According to the information and explanation given to us and based
on the documents and records produced to us, the company has not
granted loans and advances on the basis of securities by way of pledges
of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the companies (Auditor''s report) order,
2003 are not applicable to the company.
xv. In our opinion and 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. Accordingly, the
provisions of Clause 4 (xv) of the companies (Auditor''s report) order,
2003 are not applicable to the company.
xvi. The company has not taken any term loans; hence this clause is not
applicable.
xvii. In our opinion and 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 were
applied for long-term investment.
xviii. The company has not made any preferential allotment of shares
during to the year to parties and companies covered in register
maintained under section 301 of the Companies Act, 1956..
xix. The company has not issued any debentures during the year.
xx. The company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For M. Anandam & Co.,
Chartered Accountants
(Firm Regn.No.000125S)
Sd/-
A.V. SADASIVA
Partner
Place: Secunderabad M.No: 18404
Date: 30th May 2013
Mar 31, 2012
1. We have Audited the attached Balance Sheet of Combat Drugs Limited
the Company'' for the period 1st October 2011 to 31st March 2012 and
also the Statement of Profit and Loss and the Cash Flow Statement for
the year ended on that date annexed thereto. These financial statements
are the responsibility of tire Company''s management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a lest 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 (he Centre! Government in terms of Section 227 (4A) of the Companies
Act. 1956. we annex hereto a statement on the matters specified in
paragraphs A and 5 of the said Order.
4. Further to our comments in the annexure inferred to in paragraph 3
above, we report that:
b) 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;
c) In bur 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,
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with requirements
of the accounting standards referred to in Sub-section (3C) of section
211 of the Companies Act, 1956
e) The Balance Sheet, Statement of Profit and Loss Account and Cash
flow statement dealt with by this report are in agreement with the
books of account;
f) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified from being appointed as a director of the
Company under clause (g) of sub-section (1) of Section 274 of the
Companies Act. 1956;
a) In Our opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with the
Significant Accounting Policies and 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 ease of the Statement of Profit and Loss, of the Loss of
the company for the year ended on that date, and
iii. In the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to Auditors'' Report
Referred to in paragraph 3 of our report of even date
xvii. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Fixed assets have been physically verified by the management
during the year. No material Discrepancies were noticed on such
physical verification.
(c) The Company as not disposed of any substantial part of its fixed
assets during the year.
xviii. (a) As per the information and explanations given to us,
physical verification of inventories is carried out by the Company at
regular intervals during the year. In our opinion the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to-
the, size of the company and nature of its business.
(c) The Company is maintaining proper records of inventory. As informed
by the management, the discrepancies noticed on verification between
the physical stocks and the book records were not material,
xix. (a) The company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956 which are not prejudicial
to the company
(b) The company has taken an interest free loan from one party covered
in the register maintained under Section 301 of the Companies Act.
T95S. The maximum amount involved during the year is Rs 3.54 Lakhs and
the year-end balance is Rs. 2.S8 Lakhs.
(c) The company is regular in repaying the principal amounts as
stipulated.
XX. 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 purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
xxi. (a) According to the information and explanations given to us, we
are of the opinion that the transactions 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
contracts or arrangements entered in the register maintained under
section 301 of the Companies Act 1956, 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 prevailing market prices
at the relevant time.
ix. The Company has not accepted deposits from the public within the
meaning of section 58A and 5&AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal.
x. In our opinion, the Company has an internal audit system which is
commensurate with the size and nature of its business.
xi. Maintenance of cost records by the company has not been prescribed
by the Central Government of India under Section 209(I) (d) of the
Companies Act, 1956
xii. (a) According to the information and explanations given to us, and
on the basis of our examination of books of account, the Company is
generally regular in -.depositing with the appropriate authorities
undisputed statutory dues including provident fund, employee state
insurance, sales tan, customs duty, health tax service tax, Excise
duty, Cess and other statutory dues applicable to "1C /According to the
information and explanations given to us, the company has period
remitted Tax deduction at source Rs 4,25,740. and Professional Tax Rs.
35,590/- to the appropriate authorities
(b) According to the information and explanations given to us, there
are no disputed statutory dues pending as on31siMarch, 2012.
xiii. The company has appropriated an amount of Rs. 2,24,40,0007- under
a Scheme of Arrangement towards reduction of share capital sanctioned
by the Humble High Court of A.P. vide its order no. 9 of 2011 dated
26th July 2011 and henceforth the accumulated losses have been set off.
Therefore the Company does not have any accumulated tosses as at 31M
March 2012,
xiv. In our opinion and1 according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xv. According to the information and explanation given to us and based
on the documents and records produced to us, the company has not
granted loans and advances on the basis of securities by way of pledges
of shares, debentures and other securities.
xvi. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are hot applicable to the
Company.
i. In our opinion'' and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the companies (Auditors report) order.
2003 are not applicable to the company.
ii. In our opinion and 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. Accordingly, the
provisions of Clause A (xv) of the companies (Auditor''s report) order.
2003 are not applicable to the company.
iii. The company has not taken any term loans; hence this Clause is not
applicable.
iv. in our opinion and according to the information and explanations
given to list and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis were
applied for long-term investment
v. According to the information and explanations given to us-, the
company has not made any preferential allotment of shares to parties
and companies covered in register maintained under section 301 of the
Companies Act. 1956 and hence this clause is-not applicable
vi. According to the information and explanations given to us, there
were no o debentures issued by the company during the period.
Accordingly, Clause 4 (xix) of Companies [Auditor''s Report) Order. 2003
is not applicable.
vii. According to the information and explanations given to us, the
Company has not raised any funds on public issue and hence disclosure
on the end use of money raised by the public issue is not applicable to
the Company.
viii. Based upon the audit procedures performed for the purpose of
reporting-this true and fair view of the financial statements and as
per the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For M. Artandam & Co..
Chartered Accountants
(Firm Regn.No.000125S)
Sd/-
A.V. SADASIVA
Partner
Place; Seconderabad M.No: 16404
Date : 7th Sep 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Combat Drugs
Limited, as at 31st March, 2010 and the Profit and Loss Account for the
year ended on that date annexed thereto both of which have been signed
under reference to this report. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express on opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 2003, we report that, in our opinion, and to the best of
our knowledge and belief, and as per the information and explanations
furnished to us, and the books and records examined by us in the normal
course of audit:
i. The Company is in the process of updating fixed asset register to
show full particulars including quantitative details and situation of
fixed assets. We understand that the fixed assets have been physically
verified by the management and that no material discrepancies have been
noticed on such verification.
ii. The fixed assets have not been revalued.
iii. According to the information given to us physical verification has
been conducted by the management at reasonable intervals in respect of
finished goods, stores and raw materials.
iv. 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 purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
v. The Company has not taken loans from companies listed in the
register maintained under section 301 of the Companies Act, 1956. The
terms and conditions and rates of interest are not prima facie
prejudicial to the interests of the Company.
vi. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. We have been informed
that there are no companies under the same management within the
meaning of section 370 (IB) of the Companies Act, 1956.
vii. The Company has not given loans and advances in the nature of
loan during the year.
viii. There are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of stores, raw materials including components, plant and machinery,
equipment and other assets and for the sale of goods.
ix. According to the information and explanations given to us there
were no purchases of goods and materials and sale of goods, materials
and services, aggregating during the period to more than Rs.50,000 in
value, in pursuance of contracts and arrangements entered into with the
parties entered in the register maintained under section 301 of the
companies Act. 1956.
x. The Company has a procedure for determining unserviceable or damaged
stores, raw materials and finished goods. However, according to the
information and explanations given to us the Company did not have any
unserviceable or damaged stores, raw materials and finished goods
during the period under review.
xi. According to the information and explanations given to us, the
Company has not accepted any deposits as contemplated in the provisions
of section 58 A of the Companies Act, 1956.
xii. According to the information and explanations given to us the
Company did not have any realisable by-products and scrap.
xiii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
xiv. The Company has not maintained the records inspite of the rules
made by the Central Government Under section 209 (1) (d) of the
Companies Act, 1956 in respect of formulations.
xv. According to the information & explanations given to us and the
records of the Company examined by us, in our opinion the Company is
generally regular in depositing the undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues with
the appropriate authorities. There are no undisputed amounts payable in
respect of the aforesaid dues which were outstanding as at 31st March,
2010 for a period of more than six months from the date of becoming
payable.
xvi. There are no undisputed amounts payable in respect of Income Tax,
Sales Tax. Customs Duty and Excise Duty as at 31st March, 2010.
xvii. The Company has a policy of authorizing expenditure based on
reasonable checks and controls. This policy is intended to ensure that
expenses are authorized on the basis of contractual obligations or
accepted business practices having regard to the Companys business
needs and exigencies. In terms of these observations, we have not come
across any expenses charged to revenue account which, in our opinion
and judgement and to the best of our knowledge and belief, could be
regarded as personal expenses.
xviii. The accumulated losses at the end of the financial year are more
than 50% of its networth. However the company has not incurred cash
loss in the year nor in the preceding financial year.
II. In terms of and further to the above, we also report as follows:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b. In our opinion, proper books of accounts as required by the
Companies Act, 1956, have been kept by the Company so far as it appear
from our examination of those books;
c. The attached Balance Sheet and the Profit and Loss Account are in
agreement with the books of account;
d. In our opinion, the Profit and Loss Account and Balance Sheet
comply with the account- ing standards referred to in Section 211 (3C)
of the Companies Act, 1956 to the extent applicable.
e. On the basis of confirmations received from the other Companies in
which Directors are Directors or in their absence, confirmation from
Directors concerned, none of the Director is disqualified from being
appointed as a Director under clause (g) of sub section (1) to Section
274 of the Companies Act, 1956.
In our opinion and to the best of our information, and according to the
explanations given to us, the said statements of account together with
the schedules and the notes thereon, give the information required by
the Companies Act, 1956, in the manner so required and give a true and
fair view:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.
and
ii. In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended 31 st March, 2010.
for MAHESH, VIRENDER & SRIRAM
Chartered Accountants
(B.R.MAHESH)
Partner
Place : Hyderabad.
Date: 06.09.2010.
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