To the Members of
NECTAR LIFESCIENCES LIMITED
1. Report on the Standalone Financial Statements.
We have audited the accompanying financial statements of NECTAR LIFESCIENCES LIMITED("the Company")which comprise the Balance Sheet as at 31st March2016theStatement of Profit and Loss and the Cash Flow Statement for the year then endedand asummary ofthe significant accounting policies and other explanatory information.
2. Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible forthe matters stated in Section 134(5)ofthe CompaniesAct2013 ("the Act")with respect to the preparation of thesestandalone 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 Indiaincluding the Accounting Standardsspecified undersection 133 ofthe Actread with Rule 7 of the Companies (Accounts)Rules2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions ofthe Act for safeguarding the assets ofthe company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and designimplementation and maintenance of adequate internal financialcontrolsthat were operating effectively for ensuring the accuracy and completeness oftheaccounting recordsrelevant to the preparation and presentation ofthe financial statementsthat give a true and fair view and are free from material misstatementwhether due tofraud or error.
3. Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based onouraudit.
We have taken into account the provisions ofthe actthe 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 ouraudit in accordance with the Standards on Auditing specified undersection 143(10) of the Act.Those Standards require that we comply with the 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 andthe disclosures in the financial statements.The procedures selected depend on theauditor's judgmentincluding the assessment of the risks of material misstatement of thefinancial statementswhether due to fraud or error.In making those risk assessmentstheauditor considers the internal financial control relevant to the Company's preparationofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances.An audit also includes evaluating theappropriateness ofaccounting policies used and the reasonableness ofthe accountingestimates made by the Company's directorsas well as evaluating the overall presentationof thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the bestofour information andaccording tothe explanations givento usthe aforesaid financial statements give the information required by the Act in themanner so required and give a true and fair viewin conformity with the accountingprinciples generally accepted in India:
(a) In the case of the Balance Sheetof the State of Affairs of the Company as at 31stMarch2016;
(b) In the case ofthe Statement of Profit and Lossofthe Profit oftheCompanyfortheyearendedonthat dateand
(c) In the case ofthe Cash Flow Statementofthe Cash Flows ofthe Company forthe yearended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order2016 ("theOrder")issued by the Central Government of India in terms of subsection (11) ofsection 143 ofthe CompaniesAct2013we give in the Annexure Aa statement on the mattersspecified in paragraphs 3 and 4 ofthe Orderto the extent applicable.
As required by Section 143 (3) of the Actwe 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 ouraudit
(b) in our opinionproper 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 Sheetthe Statement of Profit and Lossand the Cash Flow Statementdealt with by this Report are in agreement with the books of account
(d) in our opinionthe aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Actread with Rule 7 ofthe Companies(Accounts) Rules2014
(e) on the basis of the written representations received from the directors as on 31stMarch2016 taken on record by the Board of Directorsnone ofthe directors is disqualifiedas on 31st March2016 from being appointed as a director in terms of Section 164 (2) ofthe Act
(f) with respect to the adequacy ofthe internal financial controls over financialreporting ofthe Company and the operating effectiveness of suchcontrolsrefertoourseparate 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) Rules2014in our opinionand to the bestofour information and according to the explanations given to us:
i) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note 2.33 to the financialstatements;
ii) the Company has made provisionas required under the applicable law or accountingstandardsfor material foreseeable lossesif anyand as required on long-term contractsincluding derivative contracts;
iii) there has been no delay in transferring amountsrequired to be transferredto theInvestor Education and Protection Fund by the Company.
ANNEXURE "A" TO THE AUDITORS REPORT
REFERRED TO IN PARAGRAPH 5 OF OUR REPORT TO THE MEMBERS OF NECTAR LIFESCIENCES LIMITEDON THE STANDALONE
FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH2016
1. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification whichin our opinionprovides forphysical verification of major portion of fixed assets at reasonable intervals.Accordingto the information and explanations given to usno material discrepancies were noticed onsuch verification.
(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 ofthe Company.
2. In respect of its inventory:
(a) As explained to usthe inventories were physically verified during the year by themanagement at reasonable intervals.Inventories as at 31st March 2016 were also physicallyverified and valued by an independent firm of chartered accountants.
(b) As explained to usthe discrepancies noticed between the physical stocks and thebooks records were not material and have been properly dealt with in the books ofaccounts.
3. The Company has not granted any loansecured or unsecuredto companiesfirmslimitedliability partnerships or other parties covered in the register maintained under Section189 of the Companies Act2013.Accordinglyprovisions of clause 3 (iii) ofthe Companies(Auditor Reports) Order 2016 are not applicable to the Company.
4 In our opinion and according to the information and explanations given to ustheCompany has complied with the provisions of Section 185and 186 of the Actwith respect tothe loans and investments made.
5. In our opinion and according to the information and explanations given to ustheCompany has not invited any deposits attracting the provisions of sections 73 to 76or anyother relevant provisions ofthe Companies Act2013.
6. We have broadly reviewed the cost records maintained by the Companypursuant to theRules made by the Central Government U/s 148(1) ofthe Companies Act2013 and are of theopinion thatprima faciethe prescribed accounts and records have been made andmaintained.We have nothowevermade a detailed examination ofthe records with a view todetermine whether they are accurate or complete.
7. (a) According to the information and explanations given to usandonthebasisofourexamination of the records of the Companythe Company has been generallyregular in depositing undisputed statutory dues including provident fundinvestoreducation and protection fundemployee's state insuranceincome taxsales taxcustomsdutyservice taxexcise dutycessvalue added tax and other material statutory dues aswith the appropriate authorities in India.We are informed that there are no undisputedstatutory dues as at the end of the yearwhich are outstanding for a period of more thansix months from the date they became payable.
(b) According to the information and explanation given to us and as per records of theCompany examined by usthere are no dues ofWealth TaxSales TaxValue Added Taxcess andCustom Dutywhich are outstanding as at 31st March2016 and which have not been depositedon account of any dispute.Howeveraccording to information and explanation given to usthefollowing dues of excise dutyIncome Tax and service tax have not been deposited by theCompany on account of disputes as detailed below:
|Statute ||Nature of the ||Amount Rs.In Millions* ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act1961 ||Income Tax ||0.51 ||AssessmentYear2001 - 02 ||Commissioner of Income Tax Appeal |
|Income Tax Act1961 ||Income Tax ||2.34 ||AssessmentYear2001 - 02 ||Commissioner of Income Tax Appeal |
|Income Tax Act1961 ||Income Tax ||0.03 ||Assessment Year 2003 - 04 ||Income Tax Appellate TribunalDelhi |
|Income Tax Act1961 ||Income Tax ||0.19 ||Assessment Year 2004 - 05 ||Income Tax Appellate TribunalDelhi |
|Income Tax Act1961 ||TDS ||0.39 ||Assessment Year 2010-2013 ||CIT Appeals |
|Central Excise Act.1944 ||Excise Duty ||1.05 ||Financial Year 2007-09 ||Joint SecretaryMinistry of FinanceDelhi |
|Central Excise Act.1944 ||Excise Duty ||96.97** ||Financial Year 2007-09 ||CESTATDelhi |
|Central Excise Act.1944 ||Excise Duty ||5.58 ||Financial Year 2005-2006 ||CESTATDelhi |
|Central Excise Act.1944 ||Excise Duty ||0.43 ||Financial Year 2010-2011 ||Deptt.Of RevenueMinistery of Finance |
|Central Excise Act.1944 ||Excise Duty ||111.51** ||Financial Year 2003-04 to 2006-07 ||CESTATDelhi |
|Central Excise Act.1944 ||Excise Duty ||8.92** ||Financial Year 2007-2008 ||CESTATDelhi |
|Service Tax1994 ||Service Tax ||12.77** ||Financial Year 2009-10 ||CESTATDelhi |
|Service Tax1994 ||Service Tax ||0.84 ||Financial Year2011-12 ||CESTATDelhi |
* Net of amounts deposited under protest.
** Stay orders have been received against the amounts disputed and not deposited.
8. According to the records ofthe Company examined by us and the information andexplanations given to usthe Company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as at the balance sheet date.
9. In our opinion and according to the information and explanations given to usduringthe year the Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and the term loans availed during the year havebeen applied for the purpose for which they were raised.
10. According to the information and explanation given to usno material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of audit.
11. According to the information and explanations give 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 Companies Act.
12. In our opinion and according to the information and explanations given to ustheCompany is not a nidhi company.Accordinglyparagraph 3(xii) ofthe Order is not applicable.
13. 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 the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations give 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.
15. According to the information and explanations given to us and based on ourexamination of the records the Companythe Company has not entered into non-cashtransactions with directors or persons connected with him.Accordinglyparagraph 3(xv)ofthe Order is not applicable.
16. According to information and explanations given to usthe Company is not requiredto be registered under section 45 lAof the Reserve Bank of IndiaAct1934.For daTTASINGLA& CO.
Annexure "B"totheAuditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act2013 ("the Act")
We have audited the internal financial controls over financial reporting of NECTARLIFESCIENCES LIMITED ("the Company") as of 31 March 2016 in conjunction with ouraudit ofthe standalone financial statements ofthe 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 ('ICAI').These responsibilitiesinclude the designimplementation 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 oftheaccounting recordsand the timely preparation of reliable financial informationasrequired undertheCompaniesAct2013.
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 tobe prescribed under section 143(10) of the Companies Act2013to the extent applicable toan audit of internal financial controlsboth applicable to an audit of Internal FinancialControls and both 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 tine 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 auditors'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
Acompany's internal financial control over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles.Acompany's internal financial control over financialreporting includes those policies and procedures that:
(1) pertain to the maintenance of records thatin reasonable detailaccurately andfairly reflect the transactions and dispositions ofthe assets ofthe company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciplesand that receipts and expenditures of the company are being made only inaccordance with authorisations of the Management and directors ofthe Company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisitionuseor disposition of the Company's assetsthat could have amaterial effect on thefinancial 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 in adequate because of change in conditionsorthat the degree of compliance with the policies or procedure 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 31 March 2016based 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 DATTA SINGLA & CO. |
| ||Chartered Accountants |
| ||Firm Regn.No.006185N |
| ||(YOGESH MONGA) |
|PLACE: CHANDIGARH ||Partner |
|DATE: 30.05.2016 ||M.No.099813 |