TO THE MEMBERS OF KABRA DRUGS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of KABRA DRUGS LIMITED ("thecompany")which comprise the Balance Sheet as at 31 March 2017 being submitted bythe company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligationsand Disclosure Requirements) Regulations 2017.
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 Act 2013 ("the Act") with respect to the preparationand presentationof these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control 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 andmatters 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 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 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 Company's preparation of thefinancial statements that give true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
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 of the state of affairs of the Company as at 31stMarch2017 its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As Requirements bythe Companies (Auditor's Report) Order 2017("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013
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 purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by 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 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) with respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014:In our opinion and to thebest of our information and according to the explanations given to us we report as under
i. The Company does not have any pending litigations on its financial position in itsfinancial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivatives contracts including derivative contracts.
iii. There has been no delay in transferring to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its Standalone FinancialStatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 08th November 2016 to 30th December 2016 and these are inaccordance with the books of accounts maintained by the company and the Company hasdeposited Rs. Nil in its bank a/c in specified bank (i.e. old 500 & 1000 notes) duringthe period.
| ||For AGRAWAL JHAVAR ASSOCIATES |
| ||Chartered Accountants |
| ||(Firm Registration No. : 008614C) |
|Place: INDORE ||DHARMENDRA AGRAWAL |
|Date: 30.05.2017 ||Partner |
| ||(Membership No.:077507) |
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under Report on other legal and Regulatory Requirements'section of our report of even date)
(1) In respect of Fixed Assets
(a) the company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets; (b) fixed assets have been physicallyverified by the management at reasonable intervals; and no material discrepancies werenoticed on such verification.
(2) In Respect of Inventory
(a) physical verification of inventory has been conducted at reasonable intervals bythe management
(b) In our opinion and acceding to the information & explanation given to us theprocedures of physical verification of inventory followed by the management reasonable andadequate in relation to the size of the company and the nature of its business. There areno inadequacies in such procedures that should be reported. (c) Company is maintainingproper records of inventory no material discrepancies were noticed on physicalverification.
(3) Loans and advances to parties covered under section 189
The company as explained by director has not granted unsecured loans during the year& to Companies firms and other parties covered us 189 of the companies Act 2013. (a)N.A. (b) There is no overdue amount of any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013.
(4) Internal control in reference to purchase of inventory and fixed assets and whetherthere is Continue failure of internal control
In our opinion and according to the information and explanation give to us thereareadequate internal Control system commensurate with the size of the company and the natureof its business for the Purchase of inventory and fixed assets and for the sale of goodsand services. During the course of audit we have not observed continuing failure tocorrect major weaknesses in internal control system.
(5) Rules followed while accepting deposits
No deposits within the meaning of sections 73 to 76 or any other relevant provision ofthe act and rules Farmed there under have been accepted by the company.
(6) Maintenance of cost records
We have broadly reviewed the book of accounts relating to materials. Labour and otheritems of cost maintained by the company pursuant to the rules made by the centralgovernment for the maintenance of cost records which has been specified by the CentralGovernment under sub-section (1) of section 148 of the Companies Act 2013 and we are ofopinion that prima facie the prescribed accounts and records have been made andmaintained.
(7) According to the information and explanations given to us in respect of statutorydues
(a) The company is regular in depositing with appropriate undisputed statutorydues including Provident fund investor education protection fund employees' stateinsurance income tax sales tax Wealth tax service tax custom duty chess and other materialstatutory dues applicable to it.
(b) according to information and explanation given to us no undisputed amount inrespect of provident Fundemployees' state insurance income tax sales tax wealth taxservice tax duty of customs duty of Excise value added tax or cess and any other statutorydues with the appropriate authorities were in. Arrears as at 31st march 17 for a periodof more than six months from the date they become payable
(d) No there is no such amount required to transfer to investor education andprotection fund.
(8) Company which has been registered for a period less than five years and accumulatedlosses are more than 50% of net worth reporting of cash losses
The company does not have any accumulated losses at the end of the financial year andhas not incurred cash losses in the financial year and in the immediately precedingfinancial year.
(9) Default in repayment of loans taken from bank or financial institutions
The company has not defaulted in repayment of dues to financial institution or bank.
(10) Terms for loans and advances from banks or financial institutions prejudicial theinterest of the Company
On the basis of records examined by us and information provided by the management weare of the Opinion that the company has not given guarantees for loans taken by other frombanks or financial Institutions.
(11) Application versus purpose for which loan granted
In our opinion the term loans raised by the company during the year has been appliedfor the purpose for which it was raised.
(12) Reporting of fraud during the year nature and amount
According to the information and explanation give to us no or by company has beennoticed or reported during the year.
(13) Managerial Remuneration According to the information and explanation give tous company managerial remuneration has been paid or provided in accordance with therequired approval mended by the provision of section 197 of Company Act 2013.
(14) Nidhi Company
The company is not a Nidhi Company as per the Nidhi Rules 2014.
(15) Related Party Transactions
All transactions with the related parties are in compliance with section 177 and 188 ofthe Companies Act 2013.
(16) Preferential Allotment.
The Company Has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year .
(17) Non cash Transactions
The company has not entered into any non cash transaction with directors or personsconnected with the company as per the provisions of section 192 of the company Act 2013.
(18) The company is not required to registered under section 45I-A of the ReserveBank of India 1934.
| ||For AGRAWAL JHAVAR ASSOCIATES |
| ||Chartered Accountants |
| ||(Firm Registration No. : 008614C) |
| ||DHARMENDRA AGRAWAL |
|Place: INDORE ||Partner |
|Date: 30.05.2017 ||(Membership No.:077507) |