To the Members Bacil Pharma Limited
We have audited the accompanying financial statements of Bacil Pharma Limited(the Company') which comprise the Balance Sheet as at March 31 2019 the Statementof Profit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the year ended and a summary of the significantaccounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (the Act) in the manner so required and give a true & fair view inconformity with the Indian accounting standard prescribed under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended (IndAS) and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2019 its loss and total comprehensive losschanges in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatement section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient &appropriate to provide a base for our opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be key audit matters to be communicated inour report.
|Key Audit Matter ||How the matter was addressed in our Audit |
|The management has entered into an Memorandum of Agreement on 8th May 2018 with M/s Swastik Dyeing and Printing Mills to sell transfer assign all its rights title and interest including leasehold rights of the property owned by the company including plant & machinery factory building godowns guest room office building and all things situated in and attached to the property for a total consideration of Rs. 250 Lakhs of which the company has received Rs. 225 Lakhs as advance in the financial year 2017-18 from the purchaser. However due to pending certain formalities the sale deed / other documents are yet to be registered. ||Pending completion of certain formalities pertaining to transfer of MIDC leased property which requires NOC from MIDC & other statutory requirements The fixed assets involved in the transaction have been shown as Asset held for sale amounting to Rs. 250 Lakhs and advance amounting to Rs. 225 Lakhs have been shown as current liabilities.. |
|The company has given unsecured loans and advances to various parties which is not the main object / core business activity of the company. ||We have recognized the same on the fair value and interest income is recognized on accrual basis. |
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 ofthese financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(Ind AS') specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgment and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but it not a guarantee that an audit conducted in accordance with SA'swill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (theOrder') issued by the Central Government of India in terms of Section 143(11) of the Actwe give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.
2. As required by Section 143(3) of the Act we report that: a) 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; b) In our opinion proper books ofaccounts as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) The Balance Sheet the Statement of Profit and Lossincluding other comprehensive income the statement of change in equity and the Cash FlowStatement dealt with by this Report are in agreement with the relevant books of account;d) In our opinion the aforesaid financial statements comply with Ind AS specified underSection 133 of the Act; e) On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2019 from being appointed as a director in terms of Section164(2) of the Act; f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in Annexure 2 to this report; g) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 (as amended) in our opinion and to the best ofour information and according to the explanations given to us:
i. The Company has no pending litigations on its financial position; ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the Company;
3. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act.
In our opinion and to the best of our information and according to the explanationgiven to us the remuneration paid / provided by the company to its directors during theyear is in accordance with the provisions of Section 197 of the Act.
The remuneration paid to any directors is not in excess of the limit laid down U/s 197of the IT Act. The Ministry of Corporate Affairs has not prescribed other details U/s 197(16) which require to be commented by us.
|For Laxmikant Kabra & Co. || |
|Chartered Accountants || |
|Firm Registration No: 117183W || |
|CA Laxmikant Kabra || |
|(Partner) ||Place: Mumbai |
|Membership No.:101839 ||Date: 22nd May 2019 |