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Richline Pharma Ltd.

BSE: 524460 Sector: Health care
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Richline Pharma Ltd
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Richline Pharma Ltd. (RICHLINEPHARMA) - Auditors Report

Company auditors report

ANNUAL REPORT 1998-99 RICHLINE PHARMA LIMITED AUDITORS' REPORT The Members RICHLINE PHARMA LIMITED HYDERABAD. We have audited the attached Balance Sheet of RICHLINE PHARMA LIMITED as at 31st March, 1999 and also the annexed Profit and Loss account for the period ended on that date. As required by the Manufacturing and other Companies (Auditor's Report) order 1988 issued by the Company Law Board in terms of section 227 (4A) of the Companies Act 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of our audit we report that: 01. Proper records showing full particulars including quantitative details and situation of fixed assets were not produced for our verification. However the company has produced the statement of fixed assets. It was explained, about the progress of fixed assets register Fixed Assets verification was done by the Management, during the period. 02. As explained to us none of the fixed assets have been revalued during the year. 03. It was explained and given certificate, that the stocks of finished goods, stores, spares, raw materials and work-in-progress have been physically verified by the Management at reasonable intervals. 04. The valuation of stocks at the end of the period was taken, as certified by the management. 05. The company has not taken any loan from companies, other parties listed in the register maintained under section 301 of the Companies Act, 1956 and/or from companies under the same management as defined under section 370(1A) of the Companies Act, 1956. 06. The company has not granted any loans to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and / or the companies under the same management as defined under section 370 (1B) of the Companies Act, 1956. 07. The company has not given any loans but has advanced money for the purchase of raw materials, capital goods which are adjustable against receipt of the materials. In receipt of loans and advances in the nature of loans, given to employees, which are interest free, the payment of principle amount is not regular as stipulated. 08. In our opinion and according to the information and explanations given to us, internal control procedures need to be strengthened to commensurate with a view to size of the company and the nature of its Business for the sale of goods. 09. The company has not purchased stores, raw materials and components excluding 50,000/- in value for each type thereof during the year from the firms/companies in which the Directors are interested. 10. As explained to us the company is not having any unserviceable or damaged stores, raw materials and finished goods. 11. During the year under audit the company has not complied with provisions of section 58A of the Companies Act, 1956 in respect of unsecured loans taken from Directors, Companies. 12. According to the information and explanations given to us, the Company's operation do not generate any significant scrap or by products. 13. The company does not have appointed internal auditors and management has explained about developing of Internal Audit Department, internally. 14. According to the information and explanations furnished to us, the provisions of provident Fund Act and Employees State Insurance Act are not applicable to the company for the year under audit. 15. According to the informations and explanations furnished to us no personal expenses of employees or directors have been charged to Revenue Accounts other than those payable under contractual obligations or in accordance with generally accepted business practice. 16. The company is a sick industrial company within the meaning of clause (0) of sub-section (1) of section 3 of the sick Industrial Companies (Special Provisions) Act, 1985. 17. As explained to us, regarding company's trading activities, there were no damaged goods. Subject to aforesaid, we report that: a) We have obtained all other informations and explanations which to the best of our knowledge and belief where necessary for the purpose of our audit. b) In our opinion, proper books of accounts except excise records as required by law have been kept by the company so far as appear from our examination of these books. c) The balance sheet and profit and loss account dealt with by this report are in agreement with the books of accounts and d) In our opinion to the best of our information and according to the explanation given to us the said accounts subject to: 1) the balances are subject to confirmation and reconciliation the impact of which on accounts is not ascertainable as stated in Note 2 schedule 21 i) In the case of balance sheet of the state of affairs of the company as at 31st March, 1999. ii) In the case of profit and loss account of the loss for the period ended on the date. For D.K. Rao & Associates Chartered Accountants Place : Hyderabad (D. Koteswara Rao) Date : 28th May, 1999 Proprietor