| We have audited the attached Balance Sheet of Ankur Drugs and Pharma
Limited as at 31st March, 2012 and both the Statement of Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date, which we have signed under reference to this Report. 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. As required by the Companies [Auditor's Report] Order,
2003 issued by the Central Government in terms of sub section [4A] of
section 227 of the Companies Act, 1956, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
Further to our comments in the Annexure referred to above, we report
that:
a. 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;
b. In our opinion, proper books of account as required by the law have
been kept by the company, so far as appears from our examination of
such books.
c. The Balance Sheet and Statement of Profit & Loss Account dealt with
by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet and Statement of Profit & Loss
Account dealt with by this report comply with the accounting standards
referred to in sub-section [3C] of section 211 of the Companies Act,
1956;
e. The provisions of accrued gratuity liability [amount not
ascertainable in the absence of Actuarial Valuation report] has not
been made.
f. Provision has not been made in respect of interest amounting to Rs.
9,52,77,286/- on some of the unsecured loans resulting in
understatement of the loss and liability by an equivalent amount. Had
the company provided for the same, the loss for the year would have
been Rs. 3,17,02,15,848/-
g. Based on representations made by all the directors of the company
and the information and explanation as made available, directors of the
company do not prima facie have any disqualification as referred to in
clause [g] of sub-section [1] of section 274 of the Companies Act,
1956;
h. Subject to Clause [e] & [f] above, in our opinion and to the best
of our information and according to the explanations given to us, the
said accounts give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view :
i. In the case of Balance Sheet, of the state of affairs of the
company as at 31st March, 2012;
ii. In the case of Statement of Profit and Loss, of the Loss for the
year ended on that date and iii In the case of Cash Flow Statement, of
the cash flows for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. There is a regular programme of verification of fixed assets which,
in our opinion, is reasonable having regards to the size of the company
and the nature of its assets. A part of the fixed assets of the company
were verified during the year pursuant to the verification programme
and no material discrepancies were noticed on such verification.
c. During the year, the company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected on this account.
ii. a. The inventory, except goods-in-transit and stock lying with
third parties have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. 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 its business.
c. The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. a. The company has not granted any loans, secured or unsecured to
any companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956 and
consequently clause 4[iii][a],[b],[c] and [d] of the Statement on the
Companies [Auditor's Report] Order, 2004 are not applicable to the
company.
b. During the year, the Company has taken interest-free unsecured loan
from six parties covered in the register maintained u/s.301 of the
Companies Act, 1956. The maximum balance involved during the year was Rs.
1,09,89,45,912/- and the year end balance of loan taken from such
parties was Rs. 2,90,89,253/-. As these loans were interest free and no
terms for repayment of loans were stipulated, clause 4[iii][g] of the
Statement on the Companies [Auditor's Report] Order, 2004 are not
applicable to the company.
c. In our opinion and according to explanation given to us, terms and
conditions on which such loans have been taken from companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not prima facie prejudicial to the interest
of the Company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
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 register maintained under section 301 of the Companies Act, 1956
have been so entered. b. In our opinion and according to information
and explanations given to us, the transactions made in pursuance of
contracts or arrangements exceeding Rupees five lakhs have been entered
during the year at prices which are reasonable having regard to
prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has accepted the deposit from the public to
which the directives issued by the Reserve bank of India, provisions of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
[Acceptance of Deposits] Rules, 1975 are applicable. However, the
Company has not complied with the provisions of Section 58A of the
Companies Act, 1956 and the Companies [Acceptance of Deposits] Rules,
1975 in relation to the following issues:
a. The company has defaulted in repayment of public deposits and also
on payment of interest on the public deposits.
b. The company has accepted new public deposits after making default
in repayment of earlier deposits.
c. The company has not repaid these new deposits within 30 days of
acceptance of such deposits.
d. The company has not filed annual return of deposits for the year
ended on 31.03.2012 with the Registrar of Companies and Reserve Bank of
India, which were required to be filed on or before 30.06.2012.
e. The fixed deposit receipts with scheduled bank as are required to
be kept as liquid assets in respect of public deposit maturing on or
before 31.03.2012 are not free of charge/lien.
f. As on the Balance Sheet date, proceedings for violation of
provisions of Section 58A and Companies [Acceptance of Deposit] Rules,
1975 were pending before the Company Law Board consequent to the
complaints filed by the depositors. An order was passed on 09.04.2012
by the Company Law Board for repayment of deposits to the extent ofRs.
32,87,000/- by30.04.2012.
vii. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under section 209[1][d] of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However, we are not
required to carry out and have not carried out a detailed examination
of the records with a view to determine whether they are accurate or
complete.
ix. a. The company is not regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees' state insurance
fund, income tax, sales tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues wherever applicable to it.
Sr.
No. Name of the Statute Nature of dues
1. Companies Act, 1956 Unclaimed Dividend
2. Professional Tax Act, 1975 Profession Tax Payable
3. Income Tax Act, 1961 Tax Deducted at Source
Tax Deducted at Source
Tax Deducted at Source
Income Tax
Income Tax
Income Tax
Income Tax
Dividend Distribution Tax
Dividend Distribution Tax
4. Central Sales Tax Act, 1956 Central Sales Tax
5. Finance Act, 1994 Service Tax
6. E.P.F.& M.P.F. Act, 1952 Provident Fund
Financial Year Amount Payment made upto
date of Audit Report 7
2010-11 237,458 2,37,458
2011-12 17,450 _
2009-10 4,001,632 -
2010-11 13,365,634 -
2011-12 6,868,027 -
2002-03 158,731 -
2003-04 903,962 -
2005-06 5,777,316 -
2009-10 43,057,967 4,500,000
2008-09 7,271,248 -
2009-10 7,227,892 -
2011-12 1,571 -
2009-10 651,990 -
2011-12 130,365 _
2011-12 1,065,664 190,620
b. According to the information and explanations given to us, no
disputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31st
March, 2012 for period of more than six months from the date they
became due.
x. The Company has accumulated losses which are more than 50% of its
net worth. The company has also incurred cash loss during the current
financial year, but has not incurred cash loss in the immediately
preceding financial year.
xi. On the basis of our examination and according to the information
and explanation given to us, we are of the opinion that during the year
the company has defaulted in repayment of dues to the banks and
financial institution. The amount defaulted is Rs. 7,03,476,343
[Principal: Rs. 38,75,30,629 and Interest:Rs. 31,59,45,714]. The company
has not obtained any borrowings by way of debentures.
xii. The company has not granted any loans and/or advances on the basis
of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4[xiii] of
the Companies [Auditor's Report] Order, 2004 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provision of clause 4 [xiv] of the Companies [Auditor Report] Order,
2004 is not applicable to the company.
xv. The company has given guarantee for loan taken by a party from
bank. The terms and conditions thereof are not prima-facie prejudicial
to the interest of the company.
xvi. According to the information and explanation given to us, the
company has not borrowed any funds by way of term loans during the
year. Hence, the question of the application of funds therein does not
arise.
xvii. In our opinion and on the basis of our examination and according
to the information and explanation given to us and on an overall
examination of the balance sheet of the company, we report that during
the year the company has not utilised short term funds for long-term
purposes.
xviii. During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix. During the year the company did not issue any debentures.
xx. According to information and explanation given to us the company
has not raised money by public issue, therefore, requirement for
commenting on the end use of money raised by public issue does not
arise.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For M. G. Vashi & Co.
Chartered Accountants
Firm Registration No 128577W
CA. M. G. Vashi
Place : Mumbai Proprietor
Date : November 10, 2012 ICAI M. No. 030217 | 