To the Members of Combat Drugs Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Combat Drugs Limited("the Company") which comprise the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(accounts) Rules 2014. This responsibility also includes maintainance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the company and for preventing and detecting frauds and other irregularities;selection and maintainance of appropriate accounting policies; making judgements andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due 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 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 controls relevant to the Companys preparation andfair presentation 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 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 financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the company as at 31stmarch 2015 and its loss and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. 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 purpose of our audit; b) In our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books;
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;
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts ) Rules 2014;
e) On the basis of written representations received from the directors as on March 312015 and 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.
Annexure to Auditors Report
The Annexure referred to in our report to the members of the Company for the year ended331st March 2015. We report that
i.a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. As explained to us the fixed assets have been physically verified by the managementin a phased periodical manner which in our opinion is reasonable having regard to thesize of the company and the nature of its business. No material discrepancies were noticedon such physical verification.
ii. a. The inventories have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable. b. The procedures of physicalverification of inventories followed by the management are reasonable and adequate inrelation to the size and nature of its business. c. The Company has maintained properrecords of its inventories. The discrepancies noticed on verification between physicalstocks and book records were not material.
iii. a. The Company has not granted any loans secured or unsecured to companies firmsor other parties listed in the register maintained under Section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory fixed assets and for the sale ofgoods. During the course of our audit no major weakness has been noticed in the internalcontrol system in respect of these areas.
v. The company has not accepted any deposits within the meaning of the Section 73 to 76of the Act and the rules framed thereunder.
vi. Maintenance of cost records by the company has not been prescribed by centralgovernment of India under Sub-Section (1) of Section 148 of the Companies Act 2013.
vii. a. According to the information and explanations given to us and records of theCompany examined by us the company is regular in depositing undisputed statutory duesincluding Provident Fund Smployees State insurance Income Tax Sales Tax value Addedtax Service Tax Customs Duty Excise Duty cess and any other statutory dues asapplicable with the appropriate authorities and there was no arrears of outstandingstatutory dues as on the last day of the financial year concerned for a period of morethan six months from the date they became payable.
b. According to the information and explanations given to us and records of the Companyexamined by us there are no disputes pending against the company as at 31stMarch 2015.
c. There are no amounts which are required to be transferred to the Investor Educationand Protection Fund by the company.
viii. The company has accumulated losses at the end of the financial year exceedingfifty percent of its net worth and it has incurred cash losses during the financial yearand in the immediately preceding financial year.
ix. In our opinion and according to the information and explanations given to us theCompany has not taken any loan from financial institutions bank or through debentures.Accordingly the provisions of clause 3(ix) of Companies (Auditors Report) Order2015 are not applicable to the Company.
x. In our opinion and according to the information and explanations given to us theCompany has not given any gurantee for loan taken by others from banks or financialinstitutions Accordingly the provisions of clause 3(ix) of Companies (AuditorsReport) Order 2015 are not applicable to the Company.
xi. In our opinion and according to the information and explanation given to us theCompany has not taken any term loans. Accordingly the provisions of clause 3(ix) ofCompanies (Auditors Report) Order 2015 are not applicable to the Company.
xii. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear.
| ||For M. Anandam & Co. |
| ||Chartered Accountants |
| ||(Firm Regn.No.000125S) |
| ||Sd/- |
| ||A.V.Sadasiva |
|Place: Secunderabad ||Partner |
|Date:30th May 2015 ||M.No.18404 |