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Aarey Drugs & Pharmaceuticals Ltd.

BSE: 524412 Sector: Health care
NSE: N.A. ISIN Code: INE198H01019
BSE 00:00 | 20 Sep 18.23 0.17
(0.94%)
OPEN

18.85

HIGH

19.25

LOW

17.85

NSE 05:30 | 01 Jan Aarey Drugs & Pharmaceuticals Ltd
OPEN 18.85
PREVIOUS CLOSE 18.06
VOLUME 9952
52-Week high 40.80
52-Week low 12.45
P/E 6.51
Mkt Cap.(Rs cr) 43
Buy Price 17.25
Buy Qty 101.00
Sell Price 18.23
Sell Qty 250.00
OPEN 18.85
CLOSE 18.06
VOLUME 9952
52-Week high 40.80
52-Week low 12.45
P/E 6.51
Mkt Cap.(Rs cr) 43
Buy Price 17.25
Buy Qty 101.00
Sell Price 18.23
Sell Qty 250.00

Aarey Drugs & Pharmaceuticals Ltd. (AAREYDRUGS) - Auditors Report

Company auditors report

To

The Members of

AAREY DRUGS & PHARMACEUTICALS LIMITED

Report on the IndAS Financial Statements

We have audited the accompanying Ind AS Financial Statements of AAREY DRUGS &PHARMACEUTICALS LTD ("the Company") which comprise the Balance Sheet as at31st March 2018 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the IndAS 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 ofthese Ind AS Financial Statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (IndAS) prescribed undersection 133 of theAct.

This responsibility also includes 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 Ind ASFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the financial statementsmanagement is responsible for assessing the company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the company orto cease operations or has no realistic alternative but to do so.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS Financial Statements basedon our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under Section 143(11) of theAct.

We conducted our audit of the Ind AS Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS Financial Statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS Financial Statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS Financial Statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the IndAS Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its profit total comprehensive income its cash flows and thechanges in equity 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 Section 143(11) of theAct we givein "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of theAct based on our audit 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 including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport agree with the books of account.

d) In our opinion the aforesaid Ind AS Financial Statements comply with the IndianAccounting Standards prescribed under section 133 of theAct.

e) On the basis of the written representations received from the Directors as on 31stMarch 2018 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2018 from being appointed as a Director in terms of Section164(2) of theAct.

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 ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its IndAS Financial Statements.

ii.The Company did not have any long term contracts including derivative contract forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The disclosures regarding details of specified bank notes held and transactedduring 8 November 2016 to 30 December 2016 has not been made since the requirement doesnot pertain to financial year ended 31 March 2018.

For DMKH & Co.
CharteredAccountants
FRN. No. 116886W
Place:Mumbai CA. MANISH KANKANI
Date: 30th May 2018 Partner
M.No 158020

Annexure 'A'

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report to the members ofAarey Drugs &Pharmaceuticals Limited of even date

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we report that: -

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed Assets.

b) The Company has a regular programme of physical verification of its fixed Assets bywhich fixed Assets are verified in a phased manner over a period of years

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties are notheld in the name of the Company.

ii. a) As explained to us management has conducted physical verification of inventoryat regular intervals during the year.

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the Management werereasonable and adequate in relation to the size of the Company and nature of its business.

c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses 3(iii) (a) (b) and (c) of the order are not applicable to theCompany.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provision of section 185 and 186 of the Companies Act 2013in respect of loans investment and guarantees and securities as applicable

v. The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India provision of Section 73 to 76 of the Actany other relevant provision of theAct and the relevant rules framed thereunder.

vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company thus reporting under clause 3(vi) of the order is not applicable to theCompany.

vii. a) According to information and explanations given to us and on basis of ourexamination of the books of account and records the Company has been regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Service Tax Goods and Service Tax Custom Duty Excise Duty Value Added Taxcess and any other statutory dues with the appropriate authorities.

b) According to the information and explanations given to us the following undisputedamounts payable in respect of Provident Fund Employees' State Insurance Income-taxService Tax Goods and Service Tax Custom Duty Excise Duty Value Added Tax cess andother material statutory dues were in arrears as at 31st of March 2018 for a period ofmore than six months from the date they became payable are as follows: -

Name of statue Nature of dues Amount (Rs) Period to which amount is related Forum where dispute is pending
Income TaxAct1961 Income Tax 6741220/- A. Y. 2007-08 CIT(A)MUMBAI
Income TaxAct1961 Income Tax 2555440/- A. Y. 2011-12 CIT(A)MUMBAI
Income TaxAct1961 Income Tax 938010/- A. Y. 2012-13 CIT(A)MUMBAI
Income TaxAct1961 Income Tax 202798/- A. Y. 2013-14 CIT(A)MUMBAI
Income TaxAct1961 Income Tax 5132990/- A. Y. 2015-16 CIT(A)MUMBAI
Income TaxAct1961 Income Tax 1351570/- A. Y. 2016-17 CIT(A)MUMBAI

c) According to the information and explanations given to us there are no dues inrespect of Income-tax Service Tax Goods and Service Tax Custom Duty Excise DutyValueAdded Tax cess that have not been deposited with appropriate authorities on accountof dispute.

viii. Based on our audit procedures and on the basis of information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of loans or borrowings from banks and debenture holders. The Company has nottaken any loans from Government or any Financial Institution

ix. Based on audit procedure and on the basis of information and explanation given bythe management we are of the opinion that money raised by Company by way of term loanhave been applied for the purpose for which they were raised. The Company did not raiseany money by way of Initial Public offer or further public offer.

x. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company was noticed or reported during the yearalthough there were some instances of fraud on the Company noticed by the Management theamounts whereof were not material in the context of the size of the Company and the natureof its business and the amounts were adequately provided for.

xi. According to the information and explanations given to us we report thatmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to theCompaniesAct.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable for all transactions with the related party and the details of relatedparty transactions have been disclosed in the Ind AS Financial Statements as required bythe applicable accounting standards. xiv. During the Year the Company has not made anypreferential allotment or private placement of shares fully or partly paid convertibledebentures and hence reporting under clause 3 (xiv) of the Order is not applicable to theCompany.

xv. In Our opinion and according to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orperson connected with him.Accordingly the provision of clause 3 (xv) of the Order are notapplicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of IndiaAct 1934.

For DMKH & Co.

CharteredAccountants

FRN. No. 116886W

CA. MANISH KANKANI

Partner

M.No. 158020

Place: Mumbai

Date : 30th May 2018

REPORT ON INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the CompaniesAct 2013 ("theAct")

We have audited the internal financial controls over financial reporting of AAREY DRUGS& PHARMACEUTICALS LTD ("the Company") as of March 31 2018 in conjunctionwith our audit of the Financial Statements of the 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 design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its Assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the CompaniesAct 2013.

Auditors' 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 onAuditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and 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 financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether 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

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the Assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's Assets that could have amaterial 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.

Opinion

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 March 31 2018 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 ofCharteredAccountants of India.

For DMKH & Co.

CharteredAccountants

FRN. No. 116886W

CA. MANISH KANKANI

Partner

M.No. 158020

Place: Mumbai

Date : 30th May 2018