| We have audited the accompanying financial statements of M/s Venmax
Drugs & Pharmaceuticals Limited which comprise the Balance sheet as at
31st March, 2014, 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
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 the General Circular
15/2013 dated13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies,2013. 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 according 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
Subject to note No: 25 Item no - 9 Non receipt of confirmation of
balances from parties and Non provision of liability in respect of
employee retirement benefits which could not be quantified in the
absence of information.
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 the case of the balance sheet, of the state of affairs of the
Company as at 31.03.2014;
(ii) in the case of the statement of profit and loss, of the loss for
the year ended on that date; and
(iii) 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), 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 under provisions of 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 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, 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
sub section (3C) of Section 211 of the Companies Act, 1956 read with
the GeneralCircular 15/2013 dated 13th September of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act
e. On the basis of written representations received from the Directors
as on 31.03.2014, and taken on record by the Board of Directors, none
of the directors are disqualified as on 31st March, 2014 from being
appointed as director in terms of section 274(1)(g) of the Companies
Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS REPORT Referred to in paragraph 3 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 on the basis of available information.
(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 has disposed off substantial part of its fixed assets
during the year vide note no25 item no1 to the financial statements and
this will affect the manufacturing capabilities of the company as a
going concern.
ii. (a) As explained to us, inventories have been physically verified
by the management at regular intervals during the year.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
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 has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. (a) The Company has not granted any loans, secured or unsecured,
from companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956. (b)The
Company has taken loans, unsecured, from companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956 and the terms of such loans are not prejudicial to
the interests of the company.
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 with regard to purchases of fixed assets and also with regard
to the sale of goods. During the course of our audit, we have not
observed any major weaknesses in internal controls.
v. (a) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements that need
to be entered into in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) 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
have been made at prices which are reasonable having regard to
prevailing market price at the relevant time.
vi. According to the information and explanations given to us the
Company has not accepted any deposits from the public within the
meaning of section 58A & 58AA of the Companies Act, 1956.
vii. In our opinion, the Internal Audit functions carried out during
the year have been commensurate with its size of the Company and the
nature of its business.
viii. According to the information and explanations given to us the
Company is not required to maintain cost records under section
209(1)(d) of the Companies Act, 1956 in respect of the activities
carried out by the Company.
ix. (a) According to the information & explanations given to us and the
records of the Company examined by us, in our opinion the Company is
not regular in depositing the undisputed statutory dues including
Provident Fund, Employees' State Insurance, Sales Tax, Customs Duty,
Excise Duty, Cess, Investor Education and Protection Fund and other
material statutory dues with the appropriate authorities.
(b) According to the information & explanations given to us there are
undisputed statutory amounts payable as at 31st march 2014 to the
extent of Rs5,11,350/- payable towards ESI, PF and VAT and disputed
statutory amounts payable to ESI of Rs. 8,00,000/- and payable to PF of
Rs. 8,16,000/-, for a period of more than six months from the date they
became payable.
x. The Company has incurred cash loss of Rs.43,90,335/ during the
financial year under audit before extra ordinary items and the
accumulated losses as at the end of the financial year under audit are
Rs. 5,64,54,147/- and the loss incurred was Rs. 12,25,176/- in the
immediately preceding financial year.
xi. According to the information and explanations given to us and the
records of the Company examined by us, we are of the opinion that the
Company has not defaulted in repayment of dues to banks and financial
institutions.
xii. In our opinion and according to the information and explanations
given 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 and according to the information and explanations
given to us, the provisions of any special statute applicable to a chit
fund or a nidhi/ mutual benefit fund/ societies 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 or trading in shares,
securities, debentures and other investments.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from Banks or Financial I nstitutions.
xvi. According to the information and explanations given to us, in our
opinion term loans availed by the Company were, prima facie, applied
for the purpose for which they were raised.
xvii. According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, funds
raised on a short term basis have prima facie not been used during the
year for long term investment, and vice versa.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and Companies covered in the Register maintained under
section 301 of the Companies Act, 1956.
xix. The Company has not issued any Debentures & hence the creation of
securities in respect of the same does not arise.
xx. The Company has not raised any money by public issues during the
year.
xxi. In our opinion and according to the information and explanations
given to us, considering the
size and nature of the Company's operations, no fraud of material
significance on or by the Company has been noticed or reported during
the course of the audit.
For Durgaprasad Associates
Chartered Accountants
(Firm's Registration No.005361S)
Sd./-
Place : Hyderabad
Date : 3rd September 2014 M.No.025729 |