The Members of AAREY DRUGS & PHARMACEUTICALS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of AAREY DRUGS &PHARMACEUTICALS LIMITED (" ) which comprise the Balance Sheet as at March 312015 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Board of Directors is responsible for the matters stated in section 134(5) of thecompanies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting principalgenerally accepted specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.This responsibility also includes the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent and design implementation andmaintenance of internal financial controls that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a trueandfairviewandarefreefrommaterialmisstatementwhetherduetofraudorerror.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatements. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the Purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 312015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 bestof 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 theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Profit and Loss Statement and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements as referred to in Note No. vii (b) for Annexure tothis report to the financial statements.
II. The Company has made provision as required under the applicable law or accountingStandards for material foreseeable losses if any on long-term contracts includingderivative contracts- Refer Note 8 to the financial statements;
III. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
| ||For DMKH & Co. |
| ||Chartered Accountants |
| ||FRN. No. 116886W |
| ||CA. MANISHKANKANI |
|Place: Mumbai ||Partner |
|Date: 30/05/2015 ||M.No 158020 |
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory
Requirements" of our report of even date
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we state that: -
i. a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
b) We have been informed that the fixed assets of the Company have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.
ii. a) As explained to us inventories have been physically verified by the managementduring the year. In our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanation given to us theprocedure of physical verification of Inventories referred to in 2(a) above followed bythe management are reasonable and adequate in relation to the size of the Company and thenature of its business.
c) In our opinion and according to the information and explanation given to us thecompany has maintained proper records of inventories. As per the information andexplanation provided to us and having regard to the size of the company no materialdiscrepancies were noticed on physical verification of inventory as compared to bookrecords.
iii. a) According to the information and explanations given to us and on the basis ofexamination of the books of account by us the company has not granted loan to partiescovered in the Register maintained under section 189 of the Companies Act 2013.
b) The Company has not granted any loan accordingly the clause (iii) (b) of the orderis not applicable to the company for the year.
iv. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regards to the purchase of inventory fixed assets and sale ofgoods and services. During the course of our audit we have neither come across nor havebeen informed of any continuing failure to correct major weaknesses in the aforesaidinternal control system.
v. The Company has not accepted any Deposits from any party therefore followingprovisions of Companies Act Sec 73 to 76 and rules made there under and permission ofReserve Bank of India the question does not arise.
vi. The maintenance of cost records is not prescribed for the company by the centralgovernment under sub-section (1) of sec 148 of the Companies Act 2013. Therefore thecompany has not maintained any cost records during the year.
vii a) According to the information and explanation given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding income tax wealth tax service tax customs duty excise duty cess and othermaterial statutory dues applicable
Except in case of deduction and depositing of Professional tax of Company.
b) According to the information and explanation given to us no undisputed amountpayable in respect of income tax customs duty wealth tax service tax excise duty andcess were in arrears as at 31st March2015fora period of more than six months from thedate they became payable other than following:-
|Name of the statute ||Nature of the dues ||Amount (Rs.) ||Period to which the amount related ||Forum where dispute pending |
|Income Tax Act 1961 ||Income Tax ||Rs.4089668/- ||A.Y 2000-01 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs. 825618/- ||A.Y 2001-02 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs. 211548/- ||A.Y. 2002-03 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs.6741220/- ||A.Y. 2007-08 ||CIT(A) Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs.3289260/- ||A.Y. 2008-09 ||CIT(A) Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs. 263960/- ||A.Y. 2009-10 ||CIT(A) Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs. 1603320/- ||A.Y. 2010-11 ||CIT(A) Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs. 2556440/- ||A.Y. 2011-12 ||ITAT Mumbai |
c) The amounts required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956(1 of 1956) and rulesmade there under has been transferred to such fund within time.
viii. The Company does not have any accumulated loss during the financial year coveredby our audit.
ix The Company has not defaulted in repayment of dues to a financial institution bankor debenture holders.
x. According to the information given to us the company has not given any guaranteefor others for loans taken by them from banks and financial institutions.
xi. There are no term loans taken by the company therefore the question of applyingthe loans for the purpose for which loans taken does not arise.
xii Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the course of ouraudit.
For DMKH & Co.
FRN. No. 116886W
CA. MANISH KANKANI