To the Members of
GANGA PHARMACEUTICALS LIMITED
Virar (E) Palghar 401305 Report on the Financial Statements
1. We have audited the accompanying financial statements of GANGA PHARMACEUTICALSLIMITED. Which comprise the Balance Sheet as at 31 March 2017 & the Statement ofProfit and Loss and for the year then ended and a summaryofsignificantaccounting policiesand other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Boards of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 with respect to the of the financialpositionpreparationofthese financial Company in accordance with the accountingprinciples generally accepted in India including the Accounting standards specifiedundersection 133 of the Act. This responsibility also includes maintenance 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 application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant tothepreparationandpresentationoffinancialstatements that gives a true and fair view and arefree from material misstatement whether due to fraud or error.
3.statements based on our audit. We have taken into account the provisions of theOurresponsibilityis toexpress anopinion onthesefinancial
Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our auditinaccordancewiththeStandardsonAuditingspecifiedunder 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 misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financialstatements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancialstatements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on the financial
6. 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 state of affairs of the Company as at 31March 2017; (b) in the case of the statement of profit and loss of the profit for theyear ended on that date;
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order 2016 issued by the centralGovernment of India in terms of sub-section (11) of the Section 143 of the Act we give inthe Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.
8. As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. The Balance Sheet and Statement of Profit and Loss dealtwith by this Report are in agreement with the books of account; d. In our opinion theBalance Sheet & Statement of Profit and Loss comply with the Accounting Standardsreferred to in sub-section 133 of the Act read with Rule 7 of the Companies Rule 2014;e. There are no observations and comments on financial transactions or other matters whichhave an adverse effect on the functioning of the Company; f. On the basis of writtenrepresentations representation received from the directors as on 31 March 2017 and takenon record by the Board of Directors none of the directors is disqualified as on 31 March2017 from being appointed as a director in terms of section 164(2) of the Act; g. Thereare no qualifications reservation or adverse remarks relating to maintenance of accountsand other matters connected therewith . h. With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations give to us; i) In Company there is no pending litigations its financialposition in its financial statements; ii) The Company did not have any long term contractsincluding derivative contracts having any material foreseeable losses; iii) Company hasnot declared any dividend therefore transferring amount to the Investor Education andProtection Fund is not applicable.
|For Amarnath Sharma & Co. |
|Chartered Accountants |
|Amarnath M. Sharma |
|Membership No. 039579 |
|Place: Mumbai |
|Dated: May 22 2017 |
Annexure to the Independent Auditors' Report to the members of Ganga PharmaceuticalsLtd. for the year ended March 31 2017
1. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed asset; b. The Company has a regular program ofphysical verification of its fixed assets by which all fixed assets are verified in aphased manner over a period of two years. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.
2. a. Physical verification of Inventory has been conducted by the managementduring the current year. In opinion the interval of such verification is reasonable. b.In our opinion the procedure of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.
5. According to the information and explanations given to us the Company has notaccepted deposits during the year and does not have any unclaimed deposits as at March 312017 and therefore the provisions of clause 3 (v) of the order are not applicable to thecompany.
6. We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company pursuant to the rules made by the CentralGovernment for the maintenance of cost records under sub section (I) of section 148 of theCompanies Act
2013 and we are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of recordswith a view to determined whether they are accurate and complete.
7. a. The Company is regular in depositing undisputed statutory dues includingprovident fund employees state insurance income tax sales tax service-tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities. b. According to the information and explanations given to us noundisputed amounts payable in respect of statutory dues were in arrears as at 31st March2017 for a period more than six months from the date they became payable. c. According tothe information and explanations given to us there are no amounts required to betransferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act 1956 and rules made there under.
8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in the repayment of loans or borrowings to banks. The companydoes not have any loans or borrowings from financial institutions or government and hasnot issued any debentures.
9. Based upon the audit procedures performed by us and according to the information andexplanations given to us no fraud on or by the Company has been noticed or reportedduring the year.
10. In our opinion and according to the information and explanation given to us thecompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the Act.
11. The company is not a Nidhi Company and hence reporting under clause 3 (xii) of theorder is not applicable.
12. In our opinion and according to the information and explanation given to us thecompany is in compliance with section 177 and 188 of the Act where applicable for alltransactions with the related parties and details of related party transactions have beendisclosed in the standalone financial statements as required by the applicable accountingstandards.
13. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3 (xiv) of the Order is not applicable to the Company.
14. In our opinion and according to the information and explanation given to us duringthe year the company has not entered into any non-cash transactions with its Directors orpersons connected to its Directors and hence provisions of Section 192 of the Act are notapplicable.
15. The Company is not required to be registered under section 45-I of the Reserve Bankof India Act 1934.
Amarnath M. Sharma
Membership No. 039579
Dated: May 22 2017
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT
GANGA PHARMACEUTICALS LIMITED
FOR THE YEAR ENDED 31ST MARCH 2017
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GANGAPHARMACEUTICALS LIMITED ("the Company") as of 31 March 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
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 Reporting issued by the Institute ofChartered Accountants of India (ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficientconduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
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 Auditing issued by ICAI and deemed to be prescribed under section 143(10)of the Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding reportingassessing the risk that a material weakness exists and testing and evaluating the designand of internalfinancial controlsoverfinancial operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficientand 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 that in reasonable detail accurately 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 principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the reporting may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opiniontheCompanyhas financialcontrols system over financial reportingand such internal allmaterialrespects adequateinternal financial controls over financialreporting were operating effectively as at 31 March 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For Amarnath Sharma & Co. |
| ||Chartered Accountants |
| ||(FRN.:100300W) |
| ||Amarnath M. Sharma |
|Place: Mumbai ||Proprietor |
|Dated: May 22 2017 ||Membership No. 039579 |