To the Members of.
RAAJ MEDISAFE INDIA LTD.
[Formerly Manoj Surgical Industries Ltd.]
Report on the Financial Statements
We have audited the accompanying financial statements of RAAJ MEDISAFE INDIA LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2014 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to insub-section (3C) of section 211 of the Companies Act 1956 ("the Act"). Thisresponsibility includes the design implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withthe ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the 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 judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers foe internal control relevant to the Company's preparation and fairpresentation of foe 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 by theManagement as well as evaluating the overall presentation of the financial 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 foe financial statements give the information required by foe Act in themanner so required and give a true and fair view in conformity with foe accountingprinciples generally accepted in India:
(a) in the Case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2014;
(b) in the case of the Statement of Profit and Loss of the profit / Loss of theCompany for the year ended on that date and
(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003(the Order")issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.
2. As required by Section 227(3)ofthe Act we report that:
(a) We have obtained all the information and explanations which to the best of ourknowledge 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the Balance Sheet Statement of Profit and Loss and the Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of section211 of the Act.
(e) On the basis of the written representations received from the directors as on 31stMarch 2014 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2014 from being appointed as a director in terms of clause(g) of sub-section (1) of section 274 of the Act
| ||For NITIN VASANT GARUD & CO. |
| ||Chartered Accountants |
|PLACE : UJJAIN ||Sd/- |
|DATED: 29/05/2014 ||CAABIZER PITHEWAN |
| ||PARTNER (M.NO. 400753) |
| ||FRN: 014133C PAN . AAHFN1127E |
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
01. a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
b) The management at reasonable interval during the year has physically verified FixedAssets of the company based on phased program of verifying all the assets over a period ofthree years which in our opinion is reasonable having regard to the size of the companyand nature of assets and business. No Material discrepancies were observed during theprocess of physical verification.
c) In our opinion and as per the records and information and explanations given to usno substantial part of Fixed Assets has been disposed off during the year and the goingconcern status of the company is not affected. However no manufacturing activity doneduring the year.
02. a) The Inventory/stock have been physically verified by the Management atreasonable interval during the year and /or at close of the year. The procedure adopted bythe company for verification of inventory is in our opinion reasonable having regard tothe size of the company and nature of its current operations.
b) On the basis of our examination of the inventory records in our opinion the companyis maintaining proper records of inventory and its disposing off and no materialdiscrepancies were noticed on physical verification of inventory.
03. The company has neither taken loan nor granted any unsecured loan to the partiescovered under section 301 of the companies Act 1956.
04. In our opinion and according to the information and explanations given to us thereare adequate internal control system commensurate with the size of the company and thenature of its business with regard to purchases of Inventory Fixed Assets and for thesale of goods. Further on the basis of our examination of the books and records of thecompany and according to the information and explanations given to us we have neithercome across nor have been informed of any continuing failure to correct major weakness inthe aforesaid internal control systems.
05. a) Based on the audit procedures applied by us and according to the information andExplanations provided by the management there are no such transactions that need to beentered into the register maintained U/s 301 of the Companies Act 1956.
b) Based on the audit procedures applied by us and according to the information &explanations given to us there are no such transaction of purchase and sales of materialsand services made in pursuance of the contracts or agreements that need to be entered inthe register maintained under section 301 of the Companies Act 1956 aggregating duringthe year to Rs. 500000/- or more.
06. The company has not accepted any deposits from the public and therefore theprovisions of section 58 A & 58AA of Companies Act 1956 and Companies (Acceptance ofdeposits) Rules 1975 and the directive issued by the Reserve Bank of India are notapplicable.
07. In our opinion the company has an internal audit system commensurate with the sizeof the company and nature of its business However the company has not done anycommercial production during the period under audit.
08. We have broadly reviewed the books of accounts maintained by the company pursuantto the Rules made by the Central Government for the maintenance of cost records underSection 209(1)(d) of the Companies Act 1956 in respect of the Company's products to whichthe said rules are made applicable and are of the opinion that prima facie the prescribedrecords have been made and maintained. We have however not made a detailed examinationof the said records with a view to determine whether they are accurate and complete.
09. (a) The company is regular in depositing the Undisputed Statutory dues includingIncome Tax Sales Tax Service Tax Excise Duty Cess Customs Duty and other statutorydues with the appropriates authorities.
(b) According to the information and explanations given to us and on the basis ofrecords following dues in respect of Sales Tax Commercial Tax Professional Tax andEntry Tax have not been deposited on account of some disputes nor provided in books ofaccounts.
|Nature of Status ||Nature of Dues ||Amount pending ||Forum where dispute is pending |
|Local & Central Sales Tax / Entry Tax ||The dues are in connection with pending declarations and one prominent issue regarding exemption of Tax on Needles Honble High Court has held the issue in favour of company. |
|Year 2000-01 ||Sales Tax ||507490.00 ||After Assessment |
|Year 2005-06 ||Sales Tax ||246047.00 ||After Assessment |
|Year 2007-08 ||Professional Tax ||51430.00 ||After Assessment |
| ||TOTAL Rs. ||805017.00 || |
10. The accumulated losses of the company is more than its Net Worth during the periodcovered under audit. Also the company has incurred cash losses in the current financialyear and in the immediately preceding financial year.
11. According to the records of the company examined by us and the information andexplanations given to us we are of the opinion that the company has not defaulted inrepayment of dues to any financial institution or bank.
12. In our opinion and according to explanations given to us the company has notgranted any loans and advances on the basis of security by way of pledge of sharesdebentures and other securities.
13. The provisions of any special statute applicable to chit fund/ nidhi/ mutualbenefit fund / societies are not applicable to the company. Therefore the provisions ofclause 4 (xiii) of the Companies (Auditor's report) order 2003 are not applicable to thecompany.
14. According to the records of the company examined by us and the information andexplanations given to us we are of the opinion that the company is not dealing in ortrading in shares securities debentures and other investments regularly. However thecompany has invested in shares of a closely held company during the year and toe companyhas maintained proper records of the investment. All the shares have been held by thecompany in its own name.
15. According to the information and explanations given to us the company has notgiven guarantee for loan taken by others from banks and financial institutions.
16. The company during the financial year has not taken any term loan and henceapplicability of loan and its proper utilization need not required to comment upon.
17. In our opinion and on the basis of overall examination of toe Balance sheet of thecompany and cash flow statement no fund raised on short term basis have been used forLong term investment and vice-versa.
18. According to the records of the company the company has not made any preferentialallotment of shares to parties and companies covered in the register maintained undersection 301 of the Act.
19. According to the records of the company the company has not issued debentures.
20. The company has not raised any money by public issues during the period covered byour audit report.
21. Based upon the audit procedures performed in accordance with the generally acceptedauditing practices in India and information and explanations given by management wereport that no fraud on or by the company has been noticed or reported during the yearunder audit.
| ||For NITIN VASANT GARUD & CO. |
| ||Chartered Accountants |
| ||Sd/- |
|PLACE : UJJAIN ||CAABIZER PITHEWAN |
|DATED: 29/05/2014 ||PARTNER (M.NO. 400753) |
| ||FRN : 014133C PAN : AAHFN1127E |