| We have audited the accompanying financial statements of Samrat
Pharmachem Limited ("the Company"), which comprise of the Balance Sheet
as at March 31, 2015, and the Statement of Profit and Loss, and Cash
Flow Statement of the Company for the year ended on that date, 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 standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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.
Auditors' 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 financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, 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:
(i) in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2015;
(ii) in case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date.
(iii) in case of cash flow statement, of cash flow of the Company for
the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by Section143 (3) of the Act, we report that:
(a) we have sought and obtained al l the information and explanation,
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 and Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) ln our opinion, the aforesaid financial statements comply with the
Accounti ng 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 31st March 2015 taken on record by the board of directors, none
of the directors is disqualified as on 31st March 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 on its
financial position in its Standalone Financial Statements - Refer Note
25 (20) to the Financial Statements
ii. The Company has made provisions, as required under the applicable
law or accounting standard, for material foreseeable losses, if any, on
long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS OF OUR REPORT OF EVEN DATE
IN CASE OF Samrat Pharmachem Limited
(i) (a) The Company is maintaining proper records showing full
particulars of, including quantitative details and situation, of fixed
assets.
(b) The management at reasonable intervals has verified the fixed
assets. We have been informed that, no material discrepancies on such
verification have been noticed.
(ii) (a) As per the records maintained, the management has conducted
verification of inventory at reasonable intervals.
(b) In our view, 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) In our view, the Company has maintained proper records of
inventory. The discrepancies noticed on physical verification of stocks
as compared to the book records have been properly dealt with in the
books of account on a periodical intervals.
(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 189 of the Act.
(b) Since no loans are granted, the sub-clause dealing with receipt of
the principal amount and interest on regular basis is not applicable.
(c) Since no loans are granted, the sub-clause dealing with overdue
amount more than rupees one lakh is not applicable.
(iv) In our view, there is an adequate internal control system
commensurate with the size of the Company and nature of its business,
for the purchase of inventory and fixed assets, and for sale of goods
and services. In our view, there has been no continuing failure to
correct major weakness in internal control systems of the Company.
(v) The Company has not accepted any deposits from public within the
meaning of the provisions of section 73 or any other provisions of the
Companies Act, 2013 and the rules made there under. We have been
informed by the management that there has been no order passed by the
Company law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal on the Company with respect to
compliance of the provisions of section 73 or any other provisions of
the Companies Act 2013.
(vi) We have been informed by the management that, the Central
Government has not prescribed the method of maintenance of cost records
u/s. 148 (1) of the Companies Act, 2013 to the industry to which the
Company pertains.
(vii) (a) We have been informed by the management that, the Company is
generally regular in depositing all undisputed statutory dues with the
appropriate authorities and there have been no material arrears of
outstanding dues as at the last day of this financial year for more
than six months from the date they became payable .
(b) In our opinion and according to the information and explanation
given to us, there are no undisputed dues of Income tax, Sales tax,
Wealth Tax, and Service tax, Custom Duty, Excise Duty or Cess, or value
added tax as applicable to it which have not been deposited on account
of any dispute except mentioned hereunder:
Assessment Year Type of Demand Amount in Dispute Forum where
(INR) Dispute is
pending
2011-12 Income-tax 3,580,450.00 Commissioner
of Income-
tax (Appeal)
(c) In our opinion, the company is not required to transfer any amount
to investor education and protection fund in accordance with the
relevant provision of the Companies Act, 1956 (1 of 1956) and rules
made thereunder.
(viii) There are no accumulated losses at the end of the financial
year. The Company has not reported any cash losses during the year or
immediately preceding financial year.
(ix) As informed to us by the management, the Company has not defaulted
in repayment of any dues to financial institution or banks; whereas
there are no debenture holders
(x) The management has informed us that, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions.
(xi) As per the explanation given by the management, the term loans
were applied for the purposes for which they were obtained.
(xii) As informed by the management, there has not been noticed or
reported any fraud on or by the Company during the year.
For SHAH, SHAH & SHAH
CHARTERED ACCOUNTANTS
(Mehul Shah)
PARTNER
Mumbai: 30 May 2015
M. No.049361
FRN: 116457W
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