To the Members of
Samrat Pharmachem Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Samrat Pharmachem Limited('the Company') which comprise the Balance Sheet as at 31st March 2017 the Statement ofProfit & Loss and the Cash Flow Statement of the Company for the year then ended and asummary of significant accounting policies and other explanatory information.
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 preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and Cash Flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with relevant rules issuedthereunder.
This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 issued by the Institute of Chartered Accountants of Indiaspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 and fairpresentation 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.
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 of the state of affairs of the Company as at 31stMarch 2017 and its profits and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order.
2. As required by section 143 (3) of the Act we report that: i. 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;
ii. 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;
iii. 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;
iv. in our opinion the Balance Sheet and the Statement of Profit and Loss comply withthe Accounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder;
v. on the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act. vi. with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in 'Annexure B'; and vii. with respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: a. the Company hasdisclosed the impact of pending litigations on its financial positions in itsfinancial statements. Refer to Note 19 to the financial statements.
b. the Company has made provisions as required under the applicable law oraccounting standard the material foreseeable losses if any on long - term contractsincluding derivative contracts.
c. Since the company has not declared any dividend in the recentpast years no amounts are required to be transferred by the companyto Investor Education & Protection Fund.
d. the Company has provided requisite disclosures in the financial statements asregards its holding and dealings in Specified Bank Notes as defined in the NotificationS.O.3407(E) dated the November 8 2016 of the Ministry of Finance during the period fromNovember 8 2016 to December 30 2016. Based on audit procedures performed and therepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management.
|For Shah & Savla LLP |
|Chartered Accountants |
|Miral H. Nagda |
|M. No. 108135 |
|FRN: 109364W |
|Place : Mumbai |
|Date : 30 May 2017 |