Samrat Pharmachem Limited
We have audited the accompanying financial statements of Samrat Pharmachem Limited ("theCompany") which comprise of the Balance Sheet as at March 31 2016 and theStatement of Profit and Loss and Cash Flow Statement of the Company for the year ended onthat date and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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 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:
(i) in case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;
(ii) in case of Statement of Profit and Loss of the Profit of the Company for the yearended on that date.
(iii) in case of cash flow statement of cash flow of the Company for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor' s Report) Order 20 16 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in "Annexure A" a statement on the matters specified in theparagraph 3 and 4 of the order.
2 As required by Sect ion 143 (3) of the Act we report that:
(a) we have sought a nd obtained all the information and explan atio n wh ich to thebest of our knowledge and belief were necessary for the purpose of our audit;
(b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
(c) the Balance Sheet and 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 the dateof balance sheet and taken on record by the board of directors we report that none ofthe directors is disqualified as on the said date from being appointed as a director interms of Section 164 (2) of the Act.
(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseperate 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) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Compan y has disclosed the im pact of pending litigations o n its financi alpositi on in its Standalone Financial Statements - Refer Note 25 (20) to the FinancialStatements
ii. The Company h as made provisions as req uired und er the ap plicabl e l aw oraccounting stan da rd for material foreseeable losses if any on long-term contractsincluding derivative contracts.
i ii. The re has been n o delay in tra nsfe rring amounts requ ired to be transferredto the Investor Education and Protection Fund by the Company.
For SHAH SHAH & SHAH
M. No. 049361
Mumbai: 30 May 2016.
ANNEXURE "A" R EFERRED TO I N REPORT ON OTHER LEGA L AND REGULATORY RE QUIREM ENTS OF OUR REPORT OF EVEN DATE
In Case of Samrat Pharmachem Limited
(i) (a) The Company is maintaining proper records showing full particulars ofincluding quantitative details and situation of fixed assets.
(b) The management at reasonable intervals has verified the fixed assets. We have beeninformed that no material discrepancies on such verification have been noticed.
(c) As per records presented before us the title deeds of immovable properties areheld in the name of the Company.
(ii) As per the records m aintained physical verifi cation of inventory has bee n condu cted verifi cation of inventory at reasonable intervals by the management and materialdiscrepancies noticed have been properly dealt with in the books of accounts;.
(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
(a) Since no loans are granted the sub-clause dealing with terms and conditions beingprejudicial to the company's interest is not applicable.
(b) Since no loans are granted the sub-clause dealing with receipt of the principalamount and interest on regular basis is not applicable.
(c) Since no loans are granted the sub-clause dealing with overdue amount more thanninety days is not applicable.
(iv) As per records maintained and explanatio n g iven to us the Company has n otgranted Loans to directo rs and other parties listed under section 185 of the CompaniesAct 2013 or for that matter given loans and made investments or given guarantees andsecurities in excess of limits prescribed by Section 186 of the Companies Act 2013.
(v) The Company has not accepted any deposits from public within the meaning of theprovisions of section 73 or any other provisions of the Companies Act 2013 and the rulesmade there under. We have been informed by the management that there has been no orderpassed by the Company law Board or National Company Law Tribunal or Reserve Bank of Indiaor any Court or any other Tribunal on the Company with respect to compliance of theprovisions of section 73 or any other provisions of the Companies Act 2013.
(vi) We have been informed by the management that the Central Government has notprescribed the method of maintenance of cost records u/s. 148 (1) of the Companies Act2013 in relation to the Company.
(vii) (a) We have been informed by the management that the Company is generallyregular in depositing all undisputed statutory dues with the appropriate authorities andthere have been no material arrears of outstanding dues as at the last day of thisfinancial year for more than six months from the date they became payable .
(b) In our opinion and according to the information and explanation given to us thereare no undisputed dues of Income tax Sales tax Wealth Tax and Service tax Custom DutyExcise Duty or Cess or Value Added Tax as applicable to it which have not been depositedon account of any dispute except given hereunder:
|Assessment Year ||Type of Demand ||Amount in Dispute ||Forum where dispute is pending |
|2011-12 ||Income-tax ||Rs. 3580450/- ||ITAT |
(viii) As informed to us by the management the Company has not defaulted in repaymentof any dues to financial institution or banks; whereas there are no debenture holders
(ix) We have been informed by the management that no money was raised by way of InitialPublic offer or Further Public offer (including debt instrument) and in case of TermLoans the amount was applied for the purpose for which they are taken.
(x) As informed by the management there has not been noticed or reported any fraud onor by the Company or its officers or employees during the year.
(xi) We have been informed by the Management that mangerial remuneration has been paidor provided in accordance with the requisite approval mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013.
(xii) Since the Company is not a Nidhi Company the provisions of this clause are notapplicable to the Company.
(xiii) In our view and as per the explanation given to us by the managementtransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 wherever applicable and details have been disclosed in the Financialstatements as required by the applicable accounting standard.
(xiv) We have been informed by the management that Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.
(xv) As per the explanation given to us by the management and as per recordsmaintained the Company has not entered into any non-cash transactions with directors orany persons connected with him as prescribed by section 192 of the Companies Act 2013.
(xvi) In our view the Company has not carried out any activities in nature ofactivities carried out by non-banking financial companies and thus is not required to getregistered under section 45-IA of the Reserve Bank of India Act 1934.
AS PER OUR REPORT OF EVEN DATE
For SHAH SHAH & SHAH
Mumbai: 30 May 2016
AN NEX URE "B RE FERRED TO IN RE PORT ON OTHER LEGA L AN D REG ULATO RY REQ UI REMENTS OF OUR REPORT OF EVEN DATE
In Case of Samrat Pharmachem Limited
Re port on the Interna l F inan cial Controls under C lause (i) of Su b-se cti on 3 ofSectio n 1 43 of the Com pa nies Act 2013 ("the Act")
We have audited the interna l financia l controls over fi na ncial reporting of SamratPharmachem Lim ite d ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
Managem ent's Res po nsib ility for Internal Finan cial Co ntrols
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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Au ditors' Responsibility
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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Ou r audit invoives perform ing p rocedures to obtain a ud it evide nce about theadequacy of the interna l fi na ncial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We beli eve that the audit evidence we have obtained is sufficient and appro pri ate topro vide a bas is for our audit opinion on the Company's internal financial controlssystem over 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 authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For SHAH SHAH & SHAH
M. No. 049361
Mumbai: 30 May 2016.