THE MEMBERS BERYL DRUGS LTD.
Report on the Financial Statement
We have audited the accompanying financial statements of Beryl Drugs Limited ('theCompany')which comprise the Balance Sheet as at 31 March 2016the Statement of Profit andLoss and the Cash Flow Statement for the year endedand a summary of SignificantAccounting 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 Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialpositionfinancial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Actread with Rule 7 of the Companies (Accounts)Rules2014.This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policiesmaking judgments and estimates that are reasonable andprudent; and designimplementation and maintenance of adequate internal financialcontrolsthat were operating effectively for ensuring the accuracy and completeness of theaccounting recordsrelevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementwhetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.We have taken into account the provisions of the Actthe accounting and auditingstandards and matterswhich are required to be included in the audit report under theprovisions of the Actand the Rules made there under.
We conducted our audit in accordance with Standards on Auditing specified under Section143(10) of the Act.Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amount 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 assessmentsthe auditorconsiders 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 circumstancesbut not for the purpose of expressing an opinionon whether the Company has an adequate internal financial controls system over financialreporting and the operating effectiveness of such controls.An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directorsas well as evaluating the overallpresentation 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in Indiaof the state of affairs of the Company as at 31March 2016 and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
Without qualifying our report and as more fully described in annexed noteswe also drawyour Attention to following Notes to the financial statements:
1. Note No.15.1: - The company has given advances amounting to Rs.6481216/-(P.Y.Rs.7931216/-) including interest free loan of Rs.1181216/- out of their spare fundsto firmcompanies and parties without obtaining registration under section 45I of the RBIActhowever same is not applied for because advances of said fund is 9.73% (Approx.) ofthe total funds (Share Capital and Reserve and Surplus) of the company.
2. Note No.41: - Company has credited a sum of Rs.126394.00/- ( P.Y Rs.35830.00 /-)under the head "Receipt from Government Authority pending for reconciliation"which is received against supply of goods to government authorities (given under the head-Advance Received from Customer) but the same amount is pending since earlier years forallocation & reconciliation for want of their information.
3. Note No.50: - Service tax abatement on services received from GTA has been availedat the rate of 75% instead of 70% (amended w.e.f.01.04.2015) for the period 01.04.2015 to31.05.2015.Thusresulting in short payment of service tax by Rs.6002.47.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Actwe give in the Annexure Aa statement on the matters specified in the paragraph 3and 4 of the Orderto the extent applicable.
2. As required by Section 143 (3) of the Actwe report that:
(a) we have sought and obtained all the information and explanationwhich to the bestof our knowledge and belief were necessary for the purpose of our audit;
(b) in our opinionthe Company has kept Proper books of account as required by the lawso far as it appears form our examination of those books;
(c) the Balance Sheetthe Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts;
(d) in our opinionthe aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Actread with Rule 7 of theCompanies (Accounts) Rules2014;
(e) on the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directorsnone of the Directors is disqualifiedas on 31st March 2016 from being appointed as a Director in terms of Section 164(2) of theAct;
(f) with respect to the adequacy of the internal financial controls over financialreporting of the company and the operative effectiveness of such controlsrefer to ourseparate report in 'Annexure B'; and
(g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinionand to the best of our information and according to the explanation given to us:
(i) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer to Note 33 to the financial statements.
(ii) the Company did not have any long term contractincluding derivatives contract forwhich there were any material foreseeable losses.
(iii) there were no amount which were required to be transferred to the investoreducation & protection fund by the company.
ANNEXURE A TO INDEPENDENT AUDITORS' REPORT The Annexure referred to in IndependentAuditor's Report to the members of the Company on the financial statements for the yearended 31 March 2016we report that:
(I) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years.Inaccordance with this programcertain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification.In our opinionthis periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.
c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Companythe title deeds of immovable properties are heldin the name of the Company.
(II) a) The inventories have been physically verified during the year by themanagement.In our opinionthe frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to ustheprocedures 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) The Company is maintaining proper records of inventories.The discrepancies noticedon verification between the physical stock and the books records have been properly dealtwithin the books of accounts
(III) The Company has not granted any loans secured or unsecured toCompaniesFirmsLimited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act2013 ('the Act').Thereforethe provisionof clause (iii) (a)(iii) (b) and (iii) (c) of the said order are not applicable to theCompany.
(IV) In our opinion and according to the information and explanations given to ustheCompany has complied with the provisions of Section 185 and 186 of the Actwith respect tothe loan and investment made.
(V) The Company has not accepted any deposits from the public.The provisions of clausev of the order are not applicable to company.
(VI) According to the Information and explaination given to usthe Central Governmenthas not specified the maintenance of the cost records under Section 148(1) of theCompanies Act2013 for any of the product of the Company.
(VII). a) According to the information and explanations given to us and on the basis ofour examination of the records of the Companyamounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fundincome taxsalestaxservice taxduty of customsvalue added taxcess and other material statutory dueshave been regularly deposited during the year by the Company with the appropriateauthorities except TCS amounting to Rs.12734.00/-.As explained to usthe Company did nothave any dues on account of employees' state insurance and duty of excise.
According to the information and explanations given to usno undisputed amounts payablein respect of provident fundincome taxsales taxwealth taxservice taxduty ofcustomsvalue added taxcess and other material statutory dues were in arrears as at 31March 2016 for a period of more than six months from the date they become payable exceptprofessional tax of Rs.10000/- and wealth tax of Rs.390859/- pertaining to earlier years.
b) According to the information and explanations given to usthere are no material duesof wealth taxduty of customs and cess which have not deposited with the appropriateauthorities on account of any disputeexcept following on account of disputes:
|Name of the statute ||Nature of Dues ||Amount (Rs.) ||Period to which the amount relates. ||Forum where dispute pending |
|M.P.Entry Tax ||Entry Tax ||82865 ||1998-99 ||Revision filed before Addl.Commissioner of Commercial TaxIndore. |
|M.P.Entry Tax ||Entry Tax ||320624 ||2012-13 ||Appeal filed before DCCTIndore and pending for hearing. |
|M.P.VAT Act ||VAT ||1142415 ||2012-13 ||Appeal filed before DCCTIndore and pending for hearing. |
|M.P.VAT Act ||VAT ||1589465 ||2013-14 ||Appeal filed before DCCTIndore and pending for hearing. |
|Central excise Duty ||Excise duty ||8825970 ||2012-13 ||Case is pending before Honorable Supreme Court.HoweverSLP has been granted to the Union Government of India. |
(VIII). The Company did not have any outstanding dues to financial institutionsbanksor debenture holders during the year.Based on our audit procedure and as per theinformation & explaination given by the managementwe are of the opinion that theCompany has not defaulted in repayment of dues to a Bank or Financial Institution.
(IX) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during theyear.Accordinglyparagraph 3(ix) of the Order is not applicable.
(X) According to the information and explanations given to usno material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
(XI) According to the information and explanations given to us and based on ourexamination of the records of the Companythe Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
(XII) In our opinion and according to the information and explanations given to ustheCompany is not a Nidhi Company.Accordinglyparagraph 3(xii) of the Order is notapplicable.
(XIII) According to the information and explanations given to us and based on ourexamination of the records of the Companytransactions with the related parties are incompliance with sections 177 and 188 of Companies Act2013 where applicable and thedetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable accounting standards.
(XIV) According to the information and explanations given to us and based on ourexamination of the records of the Companythe Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
(XV) According to the information and explanations given to us and based on ourexamination of the records of the Companythe Company has not entered into any non-cashtransactions with directors or persons connected with him.Accordinglyparagraph 3(xv) ofthe Order is not applicable.
(XVI) The company has financed its funds to Private parties without obtaining theregistration under section 45- IA of the Reserve Bank of India Act1934 due to nonrequirement in the opinion of management.
ANNEXURE B TO THE AUDITOR'S REPORT Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the
Companies Act2013 ("the Act")
We have audited the internal financial controls over financial reporting of Beryl DrugsLimited ("the Company") as of March 312016 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India".These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusinessincluding adherence to company's policiesthe safeguarding of its assetstheprevention and detection of frauds and errorsthe accuracy and completeness of theaccounting recordsand the timely preparation of reliable financial informationasrequired under the Companies Act2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit.We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the 'Guidance Note') and the Standards on Auditingissued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act2013to the extent applicable to anaudit of internal financial controlsboth applicable to an audit of Internal FinancialControls andboth issued by the Institute of Chartered Accountants of India.ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financialreportingassessing the risk that a material weakness existsand testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk.Theprocedures selected depend on the auditor's judgmentincluding the assessment of the risksof material misstatement of the financial statementswhether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles.A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords thatin reasonable detailaccurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principlesand that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisitionuseor disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreportingincluding the possibility of collusion or improper management override ofcontrolsmaterial misstatements due to error or fraud may occur and not bedetected.Alsoprojections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsorthat the degree of compliance with the policies or procedures may deteriorate.
In our opinionthe Company hasin all material respectsan adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 312016based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For SUBHASH CHAND JAIN ANURAG & ASSOCIATES |
| ||Chartered Accountants |
| ||FRN No.: 004733C |
| ||Sd/- |
|Date: 30.05.2015 ||(AKANKSHA SHRIVASTAVA) |
|Place: Indore (M.P.) ||PARTNER M.NO.: 425205 |