TO THE MEMBERS OF BAL PHARMA LIMITED
Report on the standalone financial statements
We have audited the accompanying standalone financial statements of M/s BAL PHARMALIMITED which comprise the balance sheet as at 31 March 2015 the statement ofprofit and loss and cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Managements responsibility for the standalone financial statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes 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; design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
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 materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the companys preparation of thefinancial statements that give a true
and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of Company's management and Board of 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.
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 in 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 31 March 2015 its profits and its 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 2015 ("the Order")issued by the Central Government of India in terms of sub-section II of section 143 of theAct we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.
2. As required by section 143(3) of the Act we further 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 purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of those books and proper returns adequatefor the purposes of our audit have been received from the branches not visited by us;
(c) The balance sheet statement of profit and loss and cash flow statement dealt withby this report are in agreement with the books of account and with the returns receivedfrom branches not visited by us;
(d) In our opinion the aforesaid standalone financial statement comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules2014.
(e) On the basis of the written representations received from the directors as on 31March 2015 and taken on record by Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of section164(2) of the Act.
(f) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules2014;
i. The Company has disclosed the impact if any of pending litigations as at 31 March20l5on its financial position in its financial statements - Refer Note 36 to thefinancial statements;
ii. The Company has not entered into any long-term contracts including derivativecontracts requiring provision under the applicable law or accounting standards formaterial foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For M/s T D JAIN AND D I SAKARIA
Chartered Accountants Firm registration no: 002491S
T D JAIN
M. No.: 012034
Bangalore 29 May 2015
Annexure to the Independent Auditors Report
(The annexure referred to in paragraph I under the heading "Report on other legaland regulatory requirements" of our report of even date to the members of Bal PharmaLimited for the year ended 31 March 2015)
i. In respect of its fixed assets
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As informed to us by the management the Company has a policy of physicallyverifying fixed assets in a phased manner over a period which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. We areinformed that there was no material discrepancies noticed on such verification.
ii. In respect of its inventories
(a) As explained to us the inventories were physically verified by the Management atreasonable intervals during the year. In our opinion the frequency of verification isreasonable.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and the discrepancies noticed onsuch physical verification between physical stock and book records were not material andhave been adequately dealt with in the books of account.
iii. (a) The company has granted loans to two bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the act').
(b) In the case of the loans granted to the bodies corporate listed in the registermaintained under section 189 of the Act the borrowers have been regular in the payment ofthe interest as stipulated. The terms of arrangements do not stipulate any repaymentschedule and the loans are repayable on demand. Accordingly paragraph 3(iii) (b) of theorder is not applicable to the company in respect of repayment of the principle amount.
(c) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained under section 189 of theAct.
iv. In our opinion and according to the information and explanations given to us thereexist an adequate internal control system commensurate with the size of the Company andnature of its business with regard to purchases of inventory fixed assets and for thesale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal control system.
v. The Company has not accepted any deposit from public. No order has been passed byCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any Courtor any other Tribunal.
vi. We have broadly reviewed the books of accounts maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records under148(1) of the Companies Act 2013 in relation to products manufactured and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have not made a detailed examination of the records with a view todetermine whether they are accurate and complete.
vii. According to the information and explanation given to us:
(a) The company has been regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax wealth tax servicetax duty of customs duty of excise value added tax cess and any other statutory duesapplicable to it have generally been regularly deposited with the appropriate authorities.There are no undisputed amounts payable in respect of aforesaid material statutory dues asat 31 March 2015 which were in arrears for a period of more than six months from the datethey became payable.
(b) On the basis of our examination of the documents and records of the company thereare no amounts in respect of Provident Fund Income Tax Sales Tax Wealth Tax ServiceTax Customs Duty Excise duty and Cess that have not been deposited with appropriateauthorities on account of any dispute except as enumerated herein below which are pendingbefore respective authorities as mentioned there against:
|Name of the Statute ||Nature of dues ||*Amount in ||Period to which Amount relates ||Forum where dispute is pending |
|Chapter V of Finance Act 1994 ||Service Tax and equivalent penalty ||10836228 ||Nov2007tojuly20ll ||Commissioner of Central Excise ( Appeals) Bangalore |
|The Central Excise Act 1944 ||Central Excise Duty and Penalty ||16903646 ||Nov2007tojuly20ll ||Commissioner of Central Excise ( Appeals) Bangalore |
|The Central Excise Act 1944 ||Central Excise Penalty ||2491506 ||Apr 2005 to Nov 2009 ||Customs Excise Service TaxAppellate Tribunal Bangalore |
|The Central Excise Act 1944 ||Central Excise Duty and Penalty ||838598 ||May 2000 to Nov 2001 ||Customs Excise Service TaxAppellate Tribunal Mumbai |
|The Central Excise Act 1944 ||Central Excise Duty and Penalty ||1209387 ||Jul 2012 to Jan 2013 ||Commissioner of Central Excise (Appeal) Bangalore |
|The Central Excise Act 1944 ||Central Excise Duty and Penalty ||216694 ||Mar-12 ||Commissioner of Central Excise (Appeal) Bangalore |
|The Central Excise Act 1944 ||Central Excise Duty and Penalty ||316719 ||Jan-12 ||Commissioner of Central Excise (Appeal) Bangalore |
|The Central Excise Act 1944 ||Central Excise Duty and Penalty ||224679 ||Jul 2011 to Nov 2011 ||Commissioner of Central Excise (Appeal) Bangalore |
|The Maharashtra Value Added Tax 2002 ||Central Sales Tax and Penalty ||778314 ||FY 2004-2005 ||The Deputy Commissioner (Appeals) Pune |
|The Kerala General Sales Tax Act 1963 ||Local Sales Tax ||495991 ||FY 2002 - 03 ||The Deputy Commissioner (Appeals) Ernakulam |
|The Central Excise Act 1944 ||Central Excise Duty and Penalty ||2182891 ||FY 2010-11 to 2012-13 ||Commissioner of Central Excise Bangalore |
|IncomeTaxAct 1961 ||Incometax ||8950439 ||FY 2003-04 to 2007-08 ||High Court of Karnataka |
* Net of amounts paid under protest or otherwise. Amount as per demand order includinginterest and penalty wherever quantified.
(c) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
viii. The Company does not have any accumulated losses as at the end of the financialyear. The Company has not incurred cash losses during the current and in the immediatelypreceding financial year.
ix. Based on our audit procedures information and explanations given to us in ouropinion the Company has not defaulted in repayment of dues to financial institutions andbanks. The Company does not have any outstanding debentures during the year.
x. In our opinion and according to the information and the explanations given to usthe company has not given any guarantee for the loans taken by others from banks orfinancial institutions.
xi. In our opinion and according to the information and explanations given to us theterm loans taken by the company during the
year have been applied for the purposes for which they were obtained.
xii. To the best of our knowledge and according to the information and explanationsgiven to us no fraud on or by the Company has been noticed or reported during the courseof our audit.
For M/s T D JAIN AND D I SAKARIA
Firm registration no: 002491S
T D JAIN
M. No.: 012034
29 May 2015