| Report on the Financial Statements
1. We have audited the accompanying financial statements of Ahlcon
Parenterals (India) Limited ("the Company"), which comprise the Balance
Sheet as at March 31st, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134 (5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements to give a true
and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules
made thereunder including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the 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 March31, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
9. 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 paragraphs 3 and 4 of the Order.
10. 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 knowledge and belief
and according to the information and explanations given to us:
i) The Company has disclosed the impact of pending litigations as at
March 31st, 2015 on its financial position in its financial statements-
Refer note no. 25 to the financial statements.
ii) The Company did not have any long-term contracts including
derivative contracts, for which there were any material foreseeable
losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2015
Annexure to Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of Ahlcon Parenterals (India)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 have been physically verified by the management
during the year in a phased manner and no material discrepancies have
been noticed on such verification. In our opinion, the frequency of
physical verification of fixed assets is reasonable having regard to
the size of the Company and the nature of its assets.
ii. (a) The management has conducted physical verification of
inventory at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies in inventory were noticed on physical
verification.
iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Therefore, the provisions of Clause
3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to
the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. The Company has not accepted any deposits from the public within
the directives issued by the Reserve Bank of India and the provisions
of section 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules framed there under. Refer Note no 43 to the
financial statements.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Govt. for the
maintenance of Cost Records under sub section 1 of section 148 of the
Companies Act, 2013 and are of the opinion that prima facie the
prescribed accounts and records have been maintained. We have however,
not made a detailed examination of these records.
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 the undisputed statutory dues, including
provident fund, employees' state insurance, sales tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
other material statutory dues, as applicable, with the appropriate
authorities except for delay in depositing income tax dues (TDS) in
some cases.
(b) According to the information and explanations given to us, no
undisputed statutory dues, including provident fund, employees' state
insurance, income tax, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and other material
statutory dues, as applicable, were outstanding at the year end, for a
period more than six months from the date they become payable with the
appropriate authorities.
(c) According to the information and explanations given to us and the
records of the Company examined by us, the dues outstanding of
income-tax, wealth-tax, sales tax, service-tax, duty of customs, duty
of excise, value added tax and cess which have not been deposited on
account of any dispute as at March 31, 2015 are stated below:-
NATURE OF NATURE OF DUES AMOUNT (Rs.)
STATUTE
Central Excise Excise Duty on Physician Sample 592,854/-
Central Excise Service Tax on Foreign 1,25,000/-
based services Stay Received on
Rs. 6,25,000/-
Central Excise Cenvat Credit on Photocopy
of bill of entry 6,19,875/-
Penalty on above 6,19,875/-
Central Excise Modvat Reversed on Packing 1,04,170/-
Material destroyed
Central Excise Service Tax Input outward freight 1,79,002/-
Central Excise Penalty on above 1,79,002/-
Central Excise Service tax input on
transport service 1,13,189/-
Central Excise Penalty on Above 1,13,189/-
Central Sale Tax Demand against non submission 23,761/-
of the foms
Entry Tax Demand for entry Tax 15,31,347/-
Central Exise Wrongly availed exemption 74,859/-
Central Exise Renting of motor vehicle 41,344/-
Central Exise Freight and Documentation 7,69,646/-
charge Export
CENVAT Credit Wrongly taken CENVAT credit 1,708,352/-
on professional charges to IC
Central Exise Cenvat Credit on flowing ineligible 2,20,244/-
input service
Sales Tax C Form liability 1,57,731/-
NATURE OF STATUTE PERIOD TO WHICH FORUM WHERE DISPUTE IS
AMOUNT RELATES PENDING
Central Excise April 05 to March, 06 Customs, Excise and
Service Tax appellate
Tribunal, New Delhi
Central Exise April 06 to August 09 Customs, Excise and
Service Tax appellate
Tribunal
Central Exise April 09 March 10 Joint Commissioner, Jaipur
-do-
Central Exise April 06 to March, 07 Commissioner Appeal,Bhiwadi
Central Exise April 06 to March, 07 Commissioner Appeal,Jaipur
Central Exise April 06 to March, 07 Commissioner Appeal,Jaipur
Central Exise April 06 to March, 07 Rajasthan High Court
Central Exise April 06 to March, 07 Commissioner Appeal,Jaipur
Central Sales Tax April 07 to March, 12 Sale Tax Asst.
Commissioner, Bhiwadi
Entry Tax April 07 to March, 14 High Court Rajasthan
Central Exise April 13 to March, 14 Superitendent of Excise,
Bhiwadi
Central Exise April 13 to March, 14 Superitendent of Excise,
Bhiwadi
Central Exise April 13 to March, 14 Superitendent of Excise,
Bhiwadi
CENVAT Credit April 14 to March, 15 Asst. Commissioner, Bhiwadi
Central Exise April 13 to March, 14 Superitendent of Excise,
Bhiwadi
Sales Tax April 13 to March, 14 Sale Tax Asst. Commissioner, Bhiwadi
(d) The amount required to be transferred to Investor Education and
Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 2013 and the rules
made thereunder.
viii. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
xi. Based on the audit procedures applied by us & according to the
information & explanations provided by the management, the term loans
taken by the company during the year have been applied for the purpose
for which the loans were obtained.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For ARUN K GUPTA & ASSOCIATES
Chartered Accountants
Firm Registration No. - 000605N
(GIREESH KUMAR GOENKA)
Partner
M. No- 096655
Place: New Delhi
Dated: 28.05.2015
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