DYNACHEM PHARMACEUTICALS (EXPORTS) LIMITED
ANNUAL REPORT 2010-2011
DYNACHEM PHARMACEUTICALS (EXPORTS) LTD., Ahmedabad
We have audited the attached Balance Sheet of M/S. Dynachem
Pharmaceuticals (Exports) Ltd.. Ahmedabad as at 31st March, 2011 and also
the Profit and Loss account of the year ended on the date annexed thereto
and cash flow statement for the year ended on that date. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
1. We have obtained all the information and explanations which, to the best
of our knowledge and belief were necessary for the purpose of our audit.
2. In our opinion, proper books of accounts as required by law have been
kept by the Company so far as it appears from our examination of the
books. The said Balance Sheet and Profit & Loss Account are in agreement
with the books of accounts.
3. In our opinion, the balance sheet, profit & loss account and cash flow
statement dealt with by this report comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act, 1956.
4. On the basis of written representations received from the Directors, as
on 31st March, 2011 and taken on record by the Board of Directors, We
report that none of the directors is disqualified as on 31st March 2011,
from being appointed as a director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956.
5. As required by the Companies (Auditor's Report) order, 2003 issued by
the central government of India in terms of sub-section (4A) of the
section 227 of the Companies Act, 1956. We enclose in the annexure a
statement on the matters specified in paragraph 4 and 5 of the said order.
6. In our opinion and to the best of our information and according to the
explanations given to us. the Accounts together with the schedules annexed
thereto read with the notes on account made thereon subject to annexure
attached to this report and notes in the Notes of Accounts, given the
information required by the Companies Act, 1956, in the manner so required
and give a true and fair view in conformity with accounting principles
generally accepted in India:
i. In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st March 201 land:
ii. In the case of the Profit and Loss Account of the loss for the year
ended on that date.
iii. In the case of the Cash Flow Statement for the year ended on that
PLACE: AHMEDABAD FOR SHIRISH DALAL & ASSOCIATES
DATE : 01.O9.2O11 CHARTERED ACCOUNTANTS
Annexure to the Auditors' Report For the Year Ended on 31-03-2011
(Referred to in paragraph (3) of our report of even date)
(i) (a) The Company has maintained proper record to show full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management. In
our opinion, the frequency of verification is reasonable. No material
discrepancies have been noticed on such verifications.
(ii) (a) As explained to us, physical verification of the inventory (except
material in transit and lying with third parties) has been conducted by the
management at reasonable intervals. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to the
size of the company and the nature of the business.
(c) On the basis of our examination of the records of inventory, we are of
the opinion that the company is maintaining proper records of inventory.
However no verification of inventory took place during the year.
(iii) (a) (i) The Company has not granted any loans secured or unsecured to
Companies, firm or other parties listed in the register maintained under
Section 301 of the Companies Act, 1956 and as such information regarding
rate of interest, overdue amounts and other terms & conditions of loans
granted is not required to be furnished.
(ii) The Company has not taken any loans during the year from the parties
covered in the registered maintained u/s. 301 of the Companies Act, 1956.
(b) In our opinion, the rate of interest and other terms and conditions on
which loans have been taken from Companies, firms or other parties listed
in the register maintained u/s. 301 are prima facia not prejudicial to the
interest of the Company.
(c) in our opinion, the company is regular in replying the principal
amounts as per stipulations & has been regular in payment of interest
(d) As per records, of the company, there is no overdue amount of loan
taken from companies firms or other parties listed in the register
maintained u/s. 301 of the companies Act, 1956.
(iv) In our opinion and according to the information and explanations given
to us. There are adequate internal control systems commensurate with size
of the company and the nature of its business with regards to purchase of
inventory and fixed assets and for the sale of goods and services. Further
on the basis of our examination of the books and records of the company
carried out in according with the auditing standards generally accepting
in India, we have not observed any continuing failure to correct major
weaknesses in the foresaid internal control procedure.
(v) (a) According to the information and explanations given to us we are
of the opinion that the transactions that need to be entered into the
registered maintained u/s. 301 of the Companies Act, 1956 have been so
(b) In our opinion and according to the information and explanations given
to us, no transactions of purchase and sale of goods materials and
services, made in pursuance of contracts or arrangements to be entered
into the registered maintained u/s. 301 of the Companies Act. 1956.
aggregate during the year to Rs. 3 Lacs in respect of any parry.
(vi) In our opinion and according to the information and explanation given
to us, the company has not accepted any deposit within the provision of
section 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposit) Rules 1975.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) As informed to us, the maintenance of cost records have not been
prescribed by the Central Government under Clause (d) of Sub-Section (1)
of Section 209 of the Co. Act, 1956.
(ix) (a) According to the records of the Company and as explained to us,
the company is regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Funds, Service tax, Investor
Education and Provident Fund, Employees State Insurance, Income Tax,
Wealth Tax, Custom Duty, Excise Duty, Cess, and other Statutory dues to
the extent applicable to it.
(b) According to the information and explanation given to us, there are no
undisputed amounts payable in respect of income tax, wealth tax, custom
duty, excise duty and cess were outstanding as at 31st March 2011 for a
period or more than six months from the date they become payable.
(x) The company has incurred losses in previous years and it has
accumulated losses as at 31-3-2011.
(xi) Based on our examination of documents and record maintained by the
company, we are of the opinion that since the company has not granted any
loan and advance on the basis of security by way of pledge of shares,
debenture and other securities, it is not required to maintain records in
(xii) In our opinion, the company is neither a chit fund nor nidhi / mutual
benefit fund / Society and hence clause 4 (xii) of the Order is not
(xiii) The company is dealing in or trading in share, securities,
debentures and other investments and accordingly the company has
maintained sufficient records showing quantity and value of shares
purchased and sold. The investments made by the company are held in the
name of the company.
(xiv) Based on our examination of the records, we are of the opinion that
the company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xv) According to the information and explanations given to us and on over
all examination of the balance sheet of the company we report that the
funds raised on short term basis have not been used for long term
(xvi) During the year the company has not made any preferential allotment
of shares to parties and companies covered in the register maintained u/s.
301 of the Companies Act, 1956.
(xvii) During the year the company has not issued any debenture.
(xviii) During the year under review no money was raised by public issue.
(xix) During the course of examination of the books and records of the
company, carried out in accordance with auditing standards generally
accepted in India, we have neither come across any instance of fraud by
the Company, noticed or reported during the year not have been informed of
such case by the management.
PLACE: AHMEDABAD FOR SHIRISH DALAL & ASSOCIATES
DATE : 01.09.2011 CHARTERED ACCOUNTANTS