| Report on the Financial Statements
We have audited the accompanying financial statements of DR.
SABHARWAL'S MANUFACTURING LABS LIMITEDfthe Company"), which comprise
the Balance Sheet as at 31st March 2013, the Statement of Profit and
Loss A/C for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance of the Company in accordance with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act").
This responsibility includes the design, implemnetation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
the Standards on Auditing issued by the institute of Chartered
Accountants of India Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the- _
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and Report on Other Legal
and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs. 4 and 5 of the
Order.
2. As required by Section 227(3) of the Act, 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 purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books, except in the case of Company's Foreign Branches where we
have relied on the report of the Branch Auditors;
(c) The Balance Sheet and Statement of Profit and Loss a/c dealt with
by this Report are in agreement with the books of account;
(d) In our opinion, the Balance and Statement of Profit and Loss a/c
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Act;
(e) On the basis of the written representations received from the
directors as on 31" March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
The Annexure referred to in our Report of even date to the members of
DR. SABHARWAL'S MANUFACTURING LABS. LIMITED ('the company') for the
year ended 31st March, 2013. On the basis of such checks as we
considered appropriate and according to the information and explanation
given to us during the course of our audit, we report that:
1. In respect of its Fixed Assets
a) The Company is under process of compilation of fixed assets register
to show full particulars including quantitative details and situation
of its fixed assets.
b) The fixed assets of the company have been physically verified during
the year by the management and no material discrepancies between the
book records, so maintained and the physical verification have been
noticed.
c) In our opinion, a substantial part of fixed assets have not been
disposed off during the year.
2. In respect of its Inventories
As explained to us, there is no stock of raw material, semi finished
goods or finished goods with the company. Hence this clause is not
applicable.
3. In respect of Loans, Secured or Unsecured, granted or taken by the
company to/from companies, firms, and other parties covered in the
register maintained u/s 301 of the Companies Act, 1956.
a) The Company has not granted any secured or unsecured loans to any
parties covered in the register maintained u/s 301 of Companies Act,
1956.
b) The Company has not taken any loan, secured or unsecured from
companies, firms or other parties covered in the register u/s 301 of
the Companies Act, 1956)
4. In our opinion, and according to the information and explanation
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
fixed assets and for the sale of goods and service. In our opinion and
according to the information and explanations given to us, there is no
continuing failure to correct major weaknesses in the aforesaid
internal control system.
5. In respect of transactions covered u/s 301 of the Companies Act,
1956
a) In our opinion and according to the information and explanations
given to us, 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 the information and explanations
given to us, the transaction of services made in pursuance of contracts
or arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five Lacs in
respect of any party, during the year have been made at prices which
are reasonable having regard to the prevailing market prices for such
goods, materials or services or the prices at which the transactions
for similar goods or services have been made with other parties.
6. The company has not accepted any deposits from public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public is not applicable to the company.
7. The company has self-supporting internal audit system commensurate
with its size and the nature of its business.
8. As explained to us the Central Government has not prescribed for
maintenance of cost records under section 209(i)(d) of the Companies
Act, 1956 for any of the products of the company.
9. In respect of Statutory Dues:
a) The Company is by and large regular in depositing with appropriate
authorities statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Cess and other material statutory dues applicable to it.
b) However, there is no undisputed statutory demand pending for more
than six months.
10. As per accounts verified by us, Company do not have any
accumulated losses at the md of the current financial year. The Company
has not incurred any cash loss during the current financial year There
were no cash losses in the financial year immediately preceding the
current financial year.
11. According to the information and explanations given to us the
company has not taken any loan from any financial institution or bank
and it has not issued any debentures, therefore this clause is not
applicable to the company.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The company is not a Chit Fund, Nidhi or mutual benefit Society,
Hence the requirements of clause 4(xii) of the order is not applicable
to the Company.
14. As the company is not dealing or trading in shares, securities,
debentures and other investments, the provision of paragraph IV (xiv)
of the Companies (Auditor's Report) Order, 2003 does not apply.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
17. According to the information and explanations given to us, no
funds raised on short-term basis have been used for long-term
investment or vice versa.
18. According to the information and explanations given to us the
company has made no preferential allotment of shares to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
19. The company has not issued any debentures. Hence the requirements
of clause 4(xix) of the order are not applicable to the Company.
20. As explained to us, the company has not raised any funds by way of
public issue during the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
Sd/-
Place : New Delhi FOR A. KAY. MEHRA& CO.
Date : 28th May 2013 Chartered Accountants
Sd/-
A. Kay. Mehra
Partner.
(M.No.9963)
Firm Registration No. 050004C | 