TO THE MEMBERS OF BAFNA PHARMACEUTICALS LIMITED ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Bafna Pharmaceuticals Limited(?the Company ) which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
MANAGEMENT S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (?the Act ) with respect to the preparation of theseFinancial Statements that give the true and fair view of the financial position financialperformance and cash flows of the Company with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities selection and application of the appropriate accountingpolicies making judgements and estimates that are reasonable and prudent and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Companys internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statement.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2016; (b) In the case of the Statement of Profitand Loss of the Loss of the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2016 (the Order) issuedby the Central
Government of India in terms of Section 143(3) of the Act we give in the Annexure astatement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act we report that: a. We have obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit; b. In our opinion proper books of account asrequired by law have been kept by the Company so far as appears from our examination ofthose books. c. The Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books of account. d. In ouropinion the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementcomply with Accounting Standards notified under the Act read with the General Circular15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect ofSection 133 of the Companies Act 2013 e. On the basis of the written representationsreceived from the directors as on March 31 2016 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2016 from beingappointed as a director in terms of Section 164(2) of the Act. f. With respect to theother matters included in the auditors report and to the best of our information andaccording to the explanation given to us.
1) The company has disclosed the impact of pending litigation on its financial positionin its financial statement.
2) 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.
3) There has been no delay in transferring amounts required to be transferred to theinvestors education and protection fund by the company.
| ||For ABHAY JAIN & Co. |
| ||Chartered Accountants |
| ||(FRN. 000008S) |
| ||(A K JAIN) |
|Place: Chennai ||Partner |
|Date: 30.05.2016 ||M.No 70224 |