Tothe members of Welcure Drugs & pharmaceulicals Lid.
Report on the Pina ncial Stale menls
We have audited the accompanying financial statements of Welcune Drugs &Pharmaceuticals Limited (the Company") which comprise the Balance Sheet as atMarch 31.2017 and the statement of Profitand Loss and Cash How Statement for the yeaithen ended and a summary ol sigmticanl accounting policies and other explanatoryinformation Management's Responsibility for the Financial Statements
The Company's Board of Dnectorsisresponsibleforthe matters stated inSecbon 134(5) otthe Companies AcL 2013 ( the Act") with respoct to the preparation ofthesefinancial statements that give a tnje and fair view of thefinancialposition financialperformance and cash flows of me Company in accordance with the Accounting principlesgenerally accepted In India including the Accounting Standards specified under Section133 ol Ue Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Art tot safeguarding the assets of the Company and for preventingand detecting frauds and ottier Irregularities; selection and application ol appropriateaccounting policies making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance ol adequate intemai financial controls that wereoperating effectively (or ensuring the accuracy amt completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are tree from material misstatement whether due to fraud orerror. Auditor's Resporrstbitity
Our responsibility ts to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions oftfieAct.theaccouitingandauditingstandardsandniatterswhicharerequired lobe included in theaudit report under the provisions ol the Actand the Rules made there under.
We conducfcdouraudhinaccordancew'th Standards on Auditing specified under Secttm143(10) of the Act Those standards require that we comply with elucal requirements andplanand perform the auditto obtain reasonableassurance about whetier die financialstatements are tree from material misstatement An audit involves performing procedures toobtain audit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor's judgement including the assessment ol therisks ot material misstatements nf the financial statements whether due to fraud or errorIn mating those risk assessments the auditorconsiders inter nalthan-cialcontrolrelevanttothe Company'spreparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness ol the accountingestimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for olt audit opinion on the financial statements. Opinion
In our opinion and to the best ol our information and according to the explanationsgiven to us the aforesaid financial statements give the
Information i tquir ed by the Act In the manner so required and give a true and (airview m conformity with the accounting pnneipies generally accepted in India ol the statecf affairs of the Company as at 31st March. 2016 and its profit and i ts cash flows lorthe year ended on that date.
Repo rtonOtherLegalandRegulatory Requirements t. As required by ths Companies(Auditor's Report) Order 2016 ("the Order") issued by the Central Governmentot India in Krms of sub-section (11) ol section 143 ol the Act. we give in the Annexure astatement on the matters specified In paragraphs 3 and 4 ot the Order.
2 As required by section 143(3)ottheAcfiwereportthat.
(a) We have sought and obtained all the information and explanations which to the bestol our knowledge and belief were necessary (or the purpose 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 trom our examination of those books
(c) The Balance Sheet the Statement ol Profit and Loss and the Cash Row Statementdealt with by this report are in agreement wi th the books of account;
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Art read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis ol written representations received Irom directors as on 31 st March2017 and taken on record by the Board o! Directors none of the directors is disqualifiedas on 31st March2017 from being appointed as a director in tenrsofSection 164(2) of theAct
(f) With respect to the adequacy otthe intemai financial controls overfinancialreporting of the Company and the operating ef tecliveness oi such controls referto our separate Repor t in "Annexure A'.
(o) With respect lo the other matters to be Included in the Auditor's Reportinaccordance with Rule 11 otthe Companies (Audit and Auditors) Rules 2014 in our opinionand to
the best of our information and according to the explanations given to us.
I. IheCompanyhasdisclosedtheirnpactrtpendingiitigafiononitsfinancial position initsfinancial statements (refernote3 to the financial statements);
II. The Company did not have any long term contracts
including derivative contracts tor which there were any
material foreseeable losses;
iii There were no amounts which were required to be
transtened to the Investor Education and Protection Fund by the Company.
iv. The Company did not have any holdings or dealingsin Specified Bank Notes during thepenod trom 8th November 2016 to 30th December 2016 (refer note 12)
| ||ForMJ(.Goswami&Co. |
| ||Chartered Accountants |
|Place - Dethi ||(FRNO.02305N) |
|Date: 0105.2017 ||Wrender Kumar Gupta Partner M.No.084450 |
Annexure referred to in paragraph 1 ol "Report on Other I egal and Regulatoryrequiraments'ot Independent Auditor's Reportto the members olWelcureDrugs&PharmaceuficalsLtd.onitsfinsicialstatementsaso(andfortheyearended31st March 2017.wereporfthat
(i) The Company did not own any fixed assets during the year. Accordingly clause 3(1)otthe Companies (Auditor's Reoort) & Order 2016is notappticableto the company.
(ii) The Company did not held any inventory during the year Accordingly clause 3(ii)ot fteCompames (Auditor's Report) Older 2016 snotappScatle tolhecompany
(iii) According to the information and explanations given to usthe Company has notgranted any loans secured or unsecured tocompanies.firms Limited Liability Partnershiporother parlies covered in the register maintained under seeflon 189 ot tie Companies Act2013. In view ol this clauses 3(lli) ol the Companies (Auditor s Report) Order 2016 arenotapplicable.
(iv) According to the information and explanations given to us. the Company has neithergranted any loan nor made any investment or provide guarantee or security during theyearIn view ol this
clause 3(lv)of the Companies (auditor's Report) Order 2016 are not applicable.
(v) According to the information and expianabens given to us the company has notaccepted deposits as defined in Company (Acceptance ol Deposits) Rules. 2014. In view otthis.clause 3(v) of the Companies (Auditors Report) Order 2016 is not applicable.
(vi) According to the information and explanations given to us this clause relating tomaintenance of cost records as specified under section 148(1) of The Companies Act 2013is not applicable to company as no production activities are earned out by the Companyduring the year
(vii) (a) According to the information and explanations given to us the company Isregular In depositing with appropriate authorities undisputed statutory dues includingincome tax and other statutory dues applicable to it According to the information andexplanatons g.vcn to us no amounts in respect of above were in arrears as at 31.032017tor a period ot mare lhan sixmonths from the date they became payable.
(b) According to the information and explanation given to us. there are ro statutorydues which have not beer deposited on account ot any dispute except Income tax. Theincome tax
department had raised a tax demand for an amount of Rs. 26.59960/- tor the assessmentyear 2011-12 and the Company has filed an appeal before Commissioner ot Income Ta x(Appeals) Alwar. Rajasthan.
(viii) According to the information and explanations given to us the company has nottaken any amount from a financial institution bank or debentureholders during the yeartherefore clause 3(vili)o1 the Companies (Auditors report) Order 2016 is not applicable
(ix) According to the information and explanations given to us. the Company has Neitherraised money by way of initial public offer or further public offer (including debtInstruments) nor obtained any term loans during the year. Therefore clause 3 of theCompanies (Auditors report) Order 2016 is not applicable
(x) According to the information and explanation given to us no fraud by the companyor any fraud on the Company by Its officers or employees has been noticed or reportedduring the year.
(xi) According to the information and explanations given to us the Company has notpaid or provided managerial remuneration during the year Therefore tire provisions otclause 3(xi)of the Companies (Auditors report) Order. 2016 are nof applicable to theCompany
(xii) In our opinion the company is not a Nidhi Company. Therefore the provisions ofclause 3(xit)oflhe Companies (Auditors report)
Order 2016 are notappKcable to the Company.
(xiii) According to the information and explanation given to us. the company has notentered into transactions with the related parlies during the year.Therefore theprovisions of clause 3(xiii)ofthe Companies (Auditors report) Order. 2016 are notapplicable tothe Company.
(xlv) According to the information and explanation given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Therefore the provisions ol clause 3(xiv)oftheCompanies (Auditors report) Order 2016 are not appUcabie to Die Company.
(xv) According to the information and explanation given to us the company has notentered into any non-cash transactions with directors or persons connected withhim.Therefore. the provisions of clause 3(xv)ofthe Companies (Auditors report) Order 2016are not applicable to the Company
(xvi) According to the information and explanation given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.
| ||ForMX.Goswant&Co. |
|Place: Delhi ||Chartered Accountants (FRNo 02305N) Virender Kumar Gupta (MNo.084450) |
|Date: 01.05.2017 ||Partner |
Annexure "A" to the Independent Auditor's Report of even date on thefinancial statements of welcur e Drugs & Pharmaceuticals Limited Reporton InternalFinancial Controls
We haw audited theirtema] inancial controls over financial reportngofWetajre Drugs& Pharmaceuticals Limited (The Company") as of March 312017 in conpinction withour audi t of the financial statements of the company for the year ended on that date.
Managements Responsibility for lntemal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial repor ting cri tenaestablished by the Company considering the essential components of internal control statedin the the Guidance Note on Audi t of Infernal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively lor ensuring the orderly and efficient conduct ol Its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of rellablefinancia! information as reqiured underthe Companies Act 2013.
Auditors' Responsibiiil y
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 ot Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by Institute ofChartered Accountants of India (TCAf) and deemed to be prescribed under section 143 (10)of the Companies Act 2013 to the extent applicable to an audit ol internal Financialcontrols both applicable to an audit of internal Financial Controls and both issued bythe ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in ail material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy olthe internal financial controls system over financial reporting and their operatingeffectiveness. Our auditof 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 ol 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 audi t opinion on the Company's internal financial controls systemover financial reporting.
Meaning ol Internal Financial Controls over Financial Reporting A company's internalfinancial control over financial reporting Is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generaly accepted accountingprinciples. A company's internal financial control over financial reporting includes thosepolicies and procedures that (1) per tain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets oltire company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance wi th generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly In accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use. or disposition of the company's assets that could have a material effecton the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting Because ofthe inherent limitaticns of internal financial controls over Financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the interna! Financial controls over financial reportingto future periods are subject to the risk that the Internal financial control overfinancial reporting may become Inadequate because of changes in conditions or that thedegree of comptiance with the policies or procedures may deteriorate.
Inour opinion the Company has in ail material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating el fectively as at March 31. 2017 based on theInternal control over financial repor ting 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 of CharteredAccountants oflndia.
| ||ForMK.Goswami&Co. |
|Place: Delhi ||Chartered Accountants (FRNo. 02305N) Virender Kumar Gupta (MNo.084450) |
|Date:01.05.2017 ||Partner |