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Plethico Pharmaceuticals Ltd.

BSE: 532739 Sector: Health care
NSE: PLETHICO ISIN Code: INE491H01018
BSE 00:00 | 04 Mar Plethico Pharmaceuticals Ltd
NSE 05:30 | 01 Jan Plethico Pharmaceuticals Ltd
OPEN 36.50
PREVIOUS CLOSE 34.50
VOLUME 9827
52-Week high 36.50
52-Week low 0.00
P/E 2.81
Mkt Cap.(Rs cr) 118
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 36.50
CLOSE 34.50
VOLUME 9827
52-Week high 36.50
52-Week low 0.00
P/E 2.81
Mkt Cap.(Rs cr) 118
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Plethico Pharmaceuticals Ltd. (PLETHICO) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

PLETHICO PHARMACEUTICALS LIMITED

We have audited the attached Balance Sheet of PLETHICO PHARMACEUTICALS LIMITEDas at 31 March 2014 and the Profit & Loss Account of the Company for the period endedon that date annexed thereto and the cash flow statement for the period ended on that dateand report that these financial statements are the responsibility of the Company'smanagement. Our responsibility is to express an opinion on these financial statementsbased on our audit.

1. We conducted our audit in accordance with auditing standards generally accepted inIndia. These standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining on a test basis evidence supporting the amounts and disclosuresin financial statements. An audit also includes assessing the accounting principles usedand significant estimates made by the management as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basisfor our opinion.

2. As required by the Companies (Auditors' Report) Order 2003 issued by the CentralGovernment in terms of Section 227(4A) of the Companies Act 1956 we enclose in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. In our opinion and to the best of our information and according to information andexplanations given to us the said accounts read with notes thereon give the informationrequired by the Companies Act 1956 in the manner so required and give a true and fairview and are in conformity with the accounting principles generally accepted in India.

(i) In the case of the Balance Sheet of the state of affairs of the company as at 31March 2014 and

(ii) In the case of Profit and Loss Account of the loss of the Company for the periodended on that date and

(iii) In so far as it relates to the cash flow statement of the cash flow of thecompany for the period ended on that date.

4. Further to our comments in the Annexure referred to in paragraph 2 above we reportthat:

(a) We have obtained all the information and explanations which to the best of ourknowledge 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 Profit and Loss Account and Cash flow statement dealt with bythis report are in agreement with the books of account;

(d) In our opinion the Balance Sheet Profit and Loss Account and the cash flowstatement dealt with by this report comply with the requirement of the AccountingStandards referred to in sub-section (3C) of section 211 of the Companies Act 1956.

(e) Based on the representations made by the Directors of the Company and theinformation and explanation as made available to us the Directors of the Company do notprima facie have any disqualification as referred to in clause (g) of sub section (1) ofsection 274 of the Companies Act 1956.

For N.P. GANDHI & CO.

Chartered Accountants

(Firm Reg No: 116574W)

N. P. Gandhi

Proprietor

(M.No.44294)

Mumbai 28 May 2014

ANNEXURE TO INDEPENDENT AUDITORS REPORT

STATEMENT REFERRED TO IN PARAGRAPH II OF OUR REPORT OF EVEN DATE TO THE MEMBERS OFPLETHICO PHARMACEUTICALS LIMITED ON THE ACCOUNTS FOR THE PERIOD ENDED ON 31 MARCH 2014.

(i) FIXED ASSETS :

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification.

(c) During the period under review no substantial part of fixed assets has beendisposed off and the going concern status of the company is not affected.

(ii) INVENTORY :

(a) The inventory has been physically verified during the period by the management. Inour opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) The company is maintaining proper records of inventories. The discrepancies noticedon verification between physical stocks and the book records were not material.

(iii) LOAN AND ADVANCES :

(a) The company has not granted any loan secured or unsecured to Companies firms orother parties covered in the register maintained under section 301 of the Act.

(b) Since the company has not granted any secured or unsecured loan to companies firmor other parties covered under section 301 of the Act the question of rate of interestand other terms & conditions does not arise.

(c) Since the company has not granted any secured or unsecured loan to companies firmor other parties covered under section 301 of the Act the question regarding receipt ofprincipal and interest and overdue amount does not arise.

(d) The Company has taken unsecured loans from parties covered in the registermaintained under section 301 of the Act. The numbers of parties involved were two and themaximum amount involved is Rs. 212.96 Million and the period ending balance is Rs. 204.84Million.

(e) As per the information and explanation provided to us there are no terms andconditions with regard to rate of interest to be charged and repayment period thereforein view of the above the same are not prima facie prejudicial to the interest of thecompany.

(f) As per the information and explanation provided to us since there are no terms& conditions with regard to rate of interest chargeable and repayment period thequestion of regularity of payment of interest and repayment of principal does not arise.

(iv) INTERNAL CONTROL SYSTEMS :

In our opinion and according to the information & explanation provided to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of our audit we have not observed any majorweakness in internal controls.

(v) TRANSACTION WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT 1956 :

(a) According to the information & explanation provided to us the particulars ofcontracts or arrangements referred to in Section 301 of the Act have been entered in theregister required to be maintained under that section.

(b) According to information and explanation provided to us transactions made inpursuance of such contract or arrangements have been made at prices which are reasonablehaving regard to the prevailing market prices at the relevant time where such marketprices are available with the company or the prices at which transactions for similargoods or services have been made with other parties.

(vi) FIXED DEPOSITS :

The Company has accepted deposits from public amounting to Rs. 86.83 Million during theperiod under review the Directive issued by Reserve Bank of India and the provisions ofSection 58A & Section 58AA or any other relevant provisions of the Act and the rulesframed there under are not complied with.

The Company has defaulted in respect of repayment of the said deposits from public. Theamount of default with respect to principal amount is Rs. 120.56 Million and with respectto interest amount is Rs. 13.67 Million as on 31 March 2014.

(vii) INTERNAL AUDIT :

The Company had an internal audit system during the period under review.

(viii)COST RECORDS :

We have broadly reviewed the books of accounts maintained by the Company pursuant torules made by the Central Government for the maintenance of cost records under Section209(1) (d) of the Companies Act 1956 in respect of manufacturing activities of theCompany to which the Companies (Cost Accounting Record) Rules 2011 are applicable and areof the opinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the records with the viewto determine whether they are accurate or complete.

(ix) STATUTORY DUES :

(a) According to the records of the Company and the information and explanationsprovided to us the Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Investor Education and Protection Fund Employees' StateInsurance Sales Tax Wealth Tax Service Tax Customs Duty Excise Duty ProfessionalTax Cess and other material statutory dues with the appropriate authorities except forIncome Tax. According to the information and explanation given to us the undisputedamount of Rs. 235.89 Million is outstanding as at 31 March 2014 for a period of more thansix months from the date of becoming payable.

(b) Details of dues of Income Tax which has not been deposited on 31st March 2014 onaccount of disputes are given below:-

Names of the Statute Nature of the Dues Amount (Rs in Millions) Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax Rs.140.53 A.Y 2005-06 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.107.17 A.Y 2006-07 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.860.95 A.Y 2007-08 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.245.14 A.Y 2008-09 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.230.23 A.Y 2009-10 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.216.19 A.Y 2010-11 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax Rs.346.65 A.Y 2011-12 Commissioner of Income Tax (Appeals)

(x) POTENTIALLY SICK COMPANY :

The company has no accumulated losses however as per the information and explanationprovided to us the company has not incurred cash losses during the financial periodcovered by our audit and there were no cash losses incurred in the immediately precedingfinancial year.

(xi) REPAYMENT OF DUES :

According to the information and explanation provided to us we have been intimatedthat the company has defaulted in repayment of dues to financial institutions or banks.The default pertains to Interest amounting to Rs. 35.52 Million and principal amounting toRs. 576.30 Million. However the Lead Bank has proposed admission of the Company toCorporate Debt Restructuring ("CDR") forum on 29 March 2014 for providing debtrestructuring scheme. The proposed debt restructuring scheme is pending approval of CDREmpowered Group for admission to the CDR forum.

(xii) LOAN AND ADVANCES GRANTED ON THE BASIS OF SECURITIES :

According to the records of the company and according to the information andexplanations provided to us the company has not granted loans and advances on basis ofsecurity by way of pledge of shares debentures & other securities.

(xiii)CHIT FUND/NIDHI/MUTUAL BENEFIT SOCIETY :

In our opinion the company has not a chit fund or Nidhi mutual benefit fund / society.Therefore clause 4 (XIII) of the Companies (Auditors Report) order 2003 is not applicableto the company.

(xiv)INVESTMENT COMPANY :

The company has maintained proper records transaction and contracts in respect ofdealing in securities and timely entries have been made therein. All such securities havebeen held by the Company in its own name.

(xv) GUARANTEES GIVEN :

According to the information and explanations provided to us the Company has given acorporate guarantee for loan taken by a company from a bank.

(xvi)TERM LOANS :

According to the records of the company and according to the information andexplanation provided to us on an overall basis the term loans have been applied for thepurposes for which they were obtained.

(xvii)SOURCES AND APPLICATION OF FUNDS :

According to the information and explanations given to us and on an overall examinationof the balance sheet of the company we report that no funds raised on short term basishave been used for the purpose of long term investment.

(xviii)PREFERENTIAL ALLOTMENT :

The Company has not made any preferential allotment of shares during the period underreview to parties and companies covered in the Register Maintained under section 301 ofthe Act.

(xix) DEBENTURE :

The company has not issued/raised any money by issue of Debentures during the periodunder review.

(xx) PUBLIC ISSUE :

The Company has not raised any money by a public issue during the period under review.

(xxi) FRAUD :

Based upon the audit procedures performed and the information and explanations providedto us by the management we report that no fraud on or by the company has been noticed orreported during the course of our audit.

For N.P. GANDHI & CO.

Chartered Accountants

(Firm Reg No: 116574W)

N. P. Gandhi

Proprietor

(M.No.44294)

Mumbai 28 May 2014

.