Mar 31, 2015
1 . We have audited the accompanying financial statements of Godavari
Drugs Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, the statement of Profit and Loss and the 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 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 and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and Cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these 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 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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
financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 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 No. 2.32 to the financial statements,
which describes that the confirmation of balances of trade payable,
trade receivable, debit and credit to the parties are subject to
reconciliation, review and adjustment thereof. Our opinion is not
qualified in this respect.
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 ( 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 the paragraph 3 and 4 of the Order, to the extent
applicable.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 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, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as on
March 31, 2015 on its financial position in its 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. The Company neither entered into any derivative
contract during the year nor have any outstanding derivative contract
at the end of the year;
iii. There was no amount required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended
March 31, 2015.
Annexure to the Independent Auditors'' Report
Referred to in paragraph 10 of the Independent Auditors'' Report of even
date to the members of Godavari Drugs Limited on the financial
statements as of 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 during
the year and there is regular program of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets.
(ii) (a) The inventory has been physically verified by the management
during the year. In respect of inventory lying with the 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 any loans secured or unsecured to
Companies, firms or other parties covered in the registers maintained
under Section 189 of the Act.
(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 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) The Company has not accepted any deposits from the public within
the meaning of Sections 73 and 74 of the Act and the rules framed there
under to the extent notified.
(vi) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 148(1) of the Act, in respect of goods traded by the
company.
(vii) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion the company
is regular in depositing undisputed statutory dues, including provident
fund, employees'' state insurance, Income tax, Sales tax/CST, Wealth
Tax, Service tax, duty of customs, duty of excise, cess, value added
tax and other material statutory dues as applicable to it, with
appropriate authorities.
According to the information and explanations given to us, there are no
material dues of Income tax, Sales tax/CST, Wealth Tax, Service tax,
duty of customs, duty of excise, cess were in arrears, as on March 31,
2015 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 the
records of the company examined by us, the particulars of dues of sales
tax including value added tax, duty of customs and duty of excise as at
March 31, 2015 which have not been deposited on account of a dispute
are as follows:
Sl. Name of the Nature of Amount Period to
No. Statute Dues (Rs. In Lakhs) which the
amount
relates
1 Central Excise Excise Duty 16.30 2008-09 to
Act, 1944 2013-14
2 Customs Customs Duty 6.96 2000-01
Act, 1962
Total 23.26
Name of the Statute Forum where Amount
the dispute Deposited
is pending (Rs. In Lakhs)
Central Excise Act 1944 Commissioner 0.41
(A)-Nagpur)
Customs Act 1962 CESTAT- Mumbai 2.50
Total 2.91
(c) There are no amount required to be transferred to Investor
Education and Protection Fund in accordance with the provisions of the
Companies Act, 1956 and the rules made there under.
(viii) The company has accumulated losses at the close of the year and
are not more than 50% of its net worth. The company has not incurred
cash losses during the financial year ended on that date and in the
immediately preceding financial year.
(ix) According to the records of the examined by us, the Company has
not defaulted in repayment of dues to financial institutions, banks and
bond holders during the current financial year. There are no overdue as
on March 31, 2015.
(x) In our opinion and according to the information given to us, the
company has not obtained any term loan from financial institutions/
banks.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied on an overall basis for
the purposes for which they were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit nor have been informed of such case by the
Management.
For S Daga & Co.
Chartered Accountants
(ICAI FRN: 000669S)
(Shantilal Daga)
M. No. 011617
Partner
Place: Hyderabad
Date: 30.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of GODAVARI DRUGS
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2014, 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
Management is responsible for the preparation of these financial state-
ments 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 (30 of section 211
of 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 con- trol 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 require- ments and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstate- ment. 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 state- ments, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s prepa- ration 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.
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 statement 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.
Other Matters:
Without qualifying our report we refer to :
Note No. 2.28 regarding Trade Receivables, Trade payables, sundry
balances of debit and credit of parties are subject to confirmation and
review by the management;
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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 exami- nation 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 Stan- dards referred
to in subsection (3C) of section 211 of the Companies Act 1956 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;
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.
ANNEXURETO AUDITORS''REPORT
(Referred to Point 1 of Report on Other Legal and Regulatory
Requirements of our report of even date)
1. (a) The Company has maintained proper records showing full particu-
lars including quantitative details and situation of its fixed assets.
(b) According to the information and explanations given to us, most of
the fixed assets have been physically verified by the Management during
the year. In our opinion, the frequency of such physical verifi- cation
is reasonable having regard to the size of the Company and the nature
of its assets. No material discrepancies were noticed on such
verification as compared to the available records.
(c) There was no substantial disposal of fixed assets during the year.
I (a) Physical verification of Inventory has been conducted by the man-
agement at reasonable intervals. (b) The procedures for physical
verification of stocks 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 and no material
discrepancies were noticed on physical verification.as compared to the
book records.
i. (a) The company had not granted any loans, secured or unsecured to
companies,firms and other parties covered in the register maintained
under Section 301 of the Companies Act 1956.
(b) In view of our comment in paragraph 3(a) above, reporting under
clause 4(iii) (b), (c) & (d) of trie aforesaid order are not applicable
to the Company.
(c) The company has taken unsecured loans from six parties (Previous
year six parties) covered in the register maintained u/s.301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 254.43 lakhs (Pr. year Rs.247.05 lakhs,) the yearend bal- ance is
Rs.246.41 (Pr.year Rs.239.44 lakhs) in case of said parties cov- ered
in the register maintained u/s.301 of the Companies Act.
(d) As per the information and explanation provided to us, interest
paid on unsecured loans taken from parties are reasonable as per
prevail- ing market rate in case of three parties and no interest is
charged by three parties listed in the register maintained under
section 301 of the Companies Act, 1956. All the loans are long term
loans and the other terms and conditions on which loans have been taken
from the parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not prima facie prejudicial to the interest
of the company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit,we have not observed
any continuing major weak- nesses in internal control system.
5. (a) According to the information and explanation given to us, we
are of the opinion that the transactions that need to be entered in 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 ar-
rangements entered in the register maintained under Section 301 of the
Companies Art, 1956 in respect of any party during the year, have been
made at prices which are reasonable having regard to the pre- vailing
market prices at the relevant time.
6. The company has not accepted any deposits from the public but has
accepted unsecured loans from shareholders and directors for which no
return was filed within the meaning of provisions of section 58 A, 58AA
of the Companies Act, 1956 or any other relevant provisions of the act
and rules framed there under.
7. In our opinion, the company has the internal audit system commensu-
rate with the size and nature of its business.
8. The company has not maintained cost records as prescribed by the
Cen- tral Government under section 209(1)(d) of the Companies Act 1956.
We have been informed that adequate steps are being taken to maintain
the cost records and accounts as prescribed by law.
9. (a) The company is generally regular in depositing undisputed
statutory dues including Provident fund and Employees'' state insurance,
In- come-Tax, Sales-Tax, Service tax, Custom duty, Excise duty, Cess
and any other statutory dues applicable to it with the appropriate au-
thorities. (b) According to the information and explanations given to
us,no undis- puted amounts payable in respect of sales-tax, Income-Tax,
Wealth Tax, Service tax, Custom Duty, Excise duty and Cess were
outstanding at the yearend for a period of more than six months from
the date they become payable.
10. The company does not have accumulated losses exceeding more than
fifty percent of its net worth at the end of the financial year and has
not incurred cash losses in the current financial year and in the
immediate preceding financial year.
11. There are no outstanding loans granted by Financial Institution,
banks or debenture holders.
12. There are no unsecured loans granted against pledge of
securities/shares which are outstanding as at the end of year.
13. 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. In our opinion and according to the information and explanation
given to us, the company is not a dealer or trader in shares,
securities, deben- tures and other investments.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or fi- nancial institutions.
16. The company has not raised any fresh term loan during the year.
17. 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
invest- ment by the company or vice versa.
18. The Company has not made any preferential allotment of shares to
par- ties or companies covered in the register maintained under section
301 of the companies actl 956.
19. The company did not have any outstanding debentures during
the year.
20. The company has not raised any money through public issue during
the year.
21. Based on the audit procedures performed and information and
explana- tions given by the management, we report that no fraud on or
by the company has been noticed or reported during the course of
ourauditt.
For S.DAGA & CO.,
Chartered Accountants,
(F. No. 000669S)
(PAVAN KUMAR BIHANI)
Place: Hyderabad M.No.225603
Date: 28.05.2014 Partner
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Godavari Drugs
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
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
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
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.
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 31,2013;
(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
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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us; 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.
Referred to in Paragraph 3 of our Report of even date:
1. (a) The Company has maintained proper records showing full particu-
lars including quantitative details and situation of its fixed assets.
(b) According to the information and explanations given to us, most of
the fixed assets have been physically verified by the Management during
the year. In our opinion, the frequency of such physical verification
is reasonable having regard to the size of the Company and the nature
of its assets. No material discrepancies were noticed on such
verification as compared to the available records.
(c) There was no substantial disposal of fixed assets during the year
2. (a) Physical verification of Inventory has been conducted by the
management at reasonable intervals.
(b) The procedures for physical verification of stocks 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 and no
material discrepancies were noticed on physical verification, as
compared to the book records.
3. The company has taken unsecured loans from six parties (Previous
year seven parties) covered in the register maintained u/s.301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.247.05 lakhs (PY Rs.187.48 lakhs,) the yearend balance is Rs.239.44
(PY Rs.186.48 lakhs) in case of said parties covered in the register
maintained u/s.301 of the Companies Act.
The company has not granted unsecured loans to Companies, firms or
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
As per the information and explanation provided to us, interest paid on
unsecured loans taken from parties are reasonable as per prevailing
market rate in case of three parties and no interest is charged by
three parties listed in the register maintained under section 301 of
the Companies Act, 1956. All the loans are repayable on demand and the
other terms and conditions on which loans have been taken from the
parties listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing major weaknesses in internal control system.
5. a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be entered in 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 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.
6. The company has not accepted any deposits from the public but has
accepted unsecured loans from shareholders and directors for which no
return was filed within the meaning of provisions of section 58A, 58AA
of the Companies Act,1956 or any other relevant provisions of the act,
and rules framed there under.
7. In our opinion, the company has the internal audit system
commensurate with the size and nature of its business.
8. The company has not maintained cost records as prescribed by the
Central Government under section 209(1 )(d) of the Companies Act, 1956.
We have been informed that adequate steps are being taken to maintain
the cost records and accounts as prescribed by law.
9. a) The company is generally regular in depositing undisputed
Statutory dues including Provident fund and Employees'' state insurance,
Income-Tax, Sales-Tax, Service tax, Custom duty, Excise duty, Cess and
any other statutory dues applicable to it with the appropriate
authorities. However there are delays in payment of Provident Fund,
Employees State Insurance and TDS. b) According to the information and
explanations given to us, no undisputed amounts payable in respect of
sales-tax, Income-Tax, Wealth Tax, Service tax, Custom Duty, Excise
duty and Cess were outstanding at the yearend for a period of more
than six months from the date they become payable.
10. The company has accumulated losses exceeding more than fifty
percent of its net worth at the end of the financial year and has not
incurred cash losses in the current financial year and in the immediate
preceding financial year.
11. There are no outstanding loans granted by Financial Institution,
banks or debenture holders
12. There are no unsecured loans granted against pledge of
securities/shares which are outstanding as at the end of year.
13. 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. In our opinion and according to the information and explanation
given to us, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. 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. The company has not raised any fresh term loan during the year.
17. 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 by the company or vice versa.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the companies act,1956.
19. The company did not have any outstanding debentures during the
year. The company has not raised any money through public issue during
the year.
21. 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 course of our
audit.
For S.DAGA & CO.,
Chartered Accountants,
(F.NO.000669S)
(T.V. SUBBA RAO)
Place: Hyderabad Partner
Date : 30.05.2013 MNo.9636
Mar 31, 2012
1. We have audited the attached Balance Sheet of GODAVARI DRUGS LTD.
as at 31st March 2012 and also the Statement of Profit and Loss of the
company for the year ended on that date annexed thereto and the Cash
Flow Statement for the period ended on that date. These financial
statements are the responsibility of the company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. (i) As required by the Companies (Auditor's Report) Order, 2003
(and amended by The Companies (Auditor's Report) (Amendment) Order,
2004) issued by the Central Government of India in terms of sub-section
(4A) of Section 227 of the Companies Act, 1956, and on the basis of
such checks as we considered appropriate and according to the
information and explanations given to us, we annex hereto 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 above, we report
that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit:
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet and the Statement of Profit and Loss and Cash
Flow Statement referred to in 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 as referred to in sub-section (3C) of Section 211
of the Companies Act, 1956.
e. On the basis of 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;
5 In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant accounting policies and notes thereon , more particularly
Note No. 2.28 with regard to non-provision of impairment in
development cost of new products pending implementation for over 3
years Rs. 126.62 lakhs (Pr. Year Rs. 134.87 lakhs) which the management
is in the process of evaluating the same; and Note No. 2.29 with regard
to non confirmation of balances to the debit or credit of parties gives
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, the loss 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:
1. (a)The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) According to the information and explanations given to us, most of
the fixed assets have been physically verified by the Management during
the year. In our opinion, the frequency of such physical verification
is reasonable having regard to the size of the Company and the nature
of its assets. No material discrepancies were noticed on such
verification as compared to the available records.
(c) There was no substantial disposal of fixed assets during the year.
2. (a)Physical verification of Inventory has been conducted by the
management at reasonable intervals,
(b) The procedures tor physical verification of stocks 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 cf inventory and no
material discrepancies were noticed on physical verification, as
compared to the book records.
3. The company has taken unsecured loans from seven parties covered in
the register maintained u/s.301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.187.48 lakhs (Previous Year
Rs.138.31 lakhs) the yearend balance is Rs.186.48 lakhs (Previous Year
Rs.116 48 lakhs) in case of said parties covered in the register
maintained u/s.301 of the Companies Act.
The company has not granted unsecured loans to Companies, firms or
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
As per the information and explanation provided to us, interest paid on
unsecured loans taken from parties are reasonable as per prevailing
market rate in case of three parties and no interest is charged by two
parties listed in the register maintained under section 301 of the
Companies Act, 1956. All the loans are repayable on demand and the
othei terms and conditions on which loans have been taken from the
parties iisted in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing major weaknesses in internal control system.
5. a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be entered in 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 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.
6. The company has not accepted any deposits from the public but has
accepted unsecured loans fiom shareholders and directors for which no
return was filed with in the meaning of provisions of section 58A, 58AA
of ttie Companies Act, 1956 or any other relevant provisions of the
act, and rules framed there under.
7. In our opinion, the company has to strengthen the internal audit
system
commensurate with the size and nature of its business.
8. The company has not maintained cost records as prescribed by the
Central Government under section 209(1 )(d) of the Companies Act, 1956.
We have been informed that adequate steps are being taken to maintain
the cost records and accounts as prescribed by law.
9. a) The company is generally regular in depositing undisputed
Statutory dues including Provident fund and Employees' state insurance,
Income-Tax, Sales- Tax, Service tax, Custom duty, Excise duty, Cess and
any other statutory dues applicable to it with the appropriate
authorities. However there are delays in payment of Provident Fund,
Employees State Insurance and TDS.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of sales-tax, Income-Tax, Wealth
Tax, Service tax, Custom Duty, Excise duty and Cess were outstanding at
the yearend for a period of more than six months from the date they
become payable,
10. In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. Further the company has incurred
cash losses during the financial year covered by our audit report and
has not incurred cash losses in the immediately preceding financial
year.
11. In our opinion and according to the information and explanation
given to us, the Company has not paid the interest due on the loan from
a Bank, which is pending settlement amounting to Rs. 19,77,290/-
(Previous Year Rs.19,77,290/-).
12. There are no unsecured loans granted against pledge of
securities/shares which are outstanding as at the end of year.
13. 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. In our opinion and according to the information and explanation
given to us, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. 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. The company has not raised any fresh term loan during the year.
17. According to the information and explanations given to us and on
an overail 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 by the company or vice versa.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the companies act,1956.
19. The company did not have any outstanding debentures during the
year.
20. The company has not raised any money through public issue during
the year.
21. 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 course of our
audit.
For S.DAGA & CO.,
Chartered Accountants,
(FRN 000669S)
(T.V SUBBA RAO)
Place: Hyderabad Partner
Date : 14.08.2012 M.No:9636
Mar 31, 2010
1. We have audited the attached Balance Sheet of GODAVARI DRUGS LTD.
as at 31st March 2010 and also the Profit and Loss Account of the
company for the year ended on that date annexed thereto and the Cash
flow Statement for the period ended on that date. These financial
statements are the responsibility of the companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. (i) As required by the Companies (Auditors Report) Order, 2003
(and amended by The Companies (Auditors Report) (Amendment) Order,
2004) issued by the Central Government of India in terms of sub-
section (4A) of Section 227 of the Companies Act, 1956, and on the
basis of such checks as we considered appropriate and according to the
information and explanations given to us, we annex hereto a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
(ii) Further to our comments in the Annexure referred to above, we
report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. the Balance Sheet and Profit and Loss Account referred to in 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 as referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e. on the basis of 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;
f. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant accounting policies and notes appearing in Schedule 19
thereon, more particularly Note NoA(b) with regard to non confirmation
of balances to the debit or credit of parties gives 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 loss 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:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) According to the information and explanations given to us, most of
the fixed assets have been physically verified by the Management during
the year. In our opinion, the frequency of such physical verification
is reasonable having regard to the size of the Company and the nature
of its assets. No material discrepancies were noticed on such
verification as compared to the available records.
(c) There was no substantial disposal of fixed assets during the year.
2. (a) Physical verification of Inventory has been conducted by the
management at reasonable intervals.
(b) The procedures for physical verification of stocks 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 and no
material discrepancies were noticed on physical verification, as
compared to the book records.
3. The company has taken unsecured loans from seven parties covered in
the register maintained u/s.301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 168.77 lacs (Previous year Rs
201.66 lakhs), the year end balance is Rs.138.31 lakhs (Previous year
Rs 160.67 Lakhs) in case of said parties covered in the register
maintained u/s.301 of the Companies Act.
The company has not granted unsecured loans to Companies, firms or
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
As per the information and explanation provided to us, interest paid on
unsecured loans taken from parties are reasonable as per prevailing
market rate in case of two parties and no interest is charged by five
parties listed in the register maintained under section 301 of the
Companies Act, 1956. All the loans are repayable on demand and the
other terms and conditions on which loans have been taken from the
parties listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, we have not observed
any continuing major weaknesses in internal control system.
5. a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be entered in 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 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.
6. The company has not accepted any deposits from the public but has
accepted unsecured loans from shareholders and directors for which no
return was filed with in the meaning of provisions of section 58A, 58AA
of the Companies Act, 1956 or any other relevant provisions of the act,
and rules framed there under
7. In our opinion, the company has to strengthen the internal audit
system commensurate with the size and nature of its business.
8. The company has not maintained cost records as prescribed by the
Central Government under section 209(l)(d) of the Companies Act, 1956.
We have been informed that adequate steps are being taken to maintain
the cost records and accounts as prescribed by law.
9. a) The company is generally regular in depositing undisputed
Statutory dues including Provident fund and Employees state insurance,
Income- Tax, Sales-Tax, Service tax, Custom duty, Excise duty, Cess and
any other statutory dues applicable to it with the appropriate
authorities. However there are delays in payment of Provident Fund,
Employees State Insurance and TDS. b) According to the information and
explanations given to us, no undisputed amounts payable in respect of
sales-tax, Income-Tax, Wealth Tax, Service tax, Custom Duty, Excise
duty and Cess were outstanding at the year end for a period of more
than six months from the date they become payable.
10. The company has accumulated losses exceeding more than fifty
percent of its net worth at the end of the financial year.
11. The interest accrued and due on the loans due to the State Bank of
Bikaner & Jaipur is outstanding pending settlement Rs. 1977290/-
(Previous year Rs.1977290-).
12. There are no unsecured loans granted against pledge of
securities/shares which are outstanding as at the end of year.
13. 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. In our opinion and according to the information and explanation
given to us, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. 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. The company has not raised any fresh term loan during the year.
17. 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 by the company or vice versa.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The company did not have any outstanding debentures during the
year.
20. The company has not raised any money through public issue during
the year.
21. 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 course of our
audit.
For S.DAGA & CO.,
Chartered Accountants,
(FRN 000669 S)
(T.V SUBBA RAO)
Place: Hyderabad Partner
Date : 03.09.2010 M.No:9636
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