Click it and Unblock the Notifications
Auditor Report of Bafna Pharmaceuticals Ltd.
Mar 31, 2025
We have audited the accompanying Financial Statements
of Bafna Pharmaceuticals Limited ("the Company"), which
comprise the Balance Sheet as at 31st March 2025, the
Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the
Statement of Cash Flows for the year then ended, and notes
to the Financial Statements, including a summary of material
accounting policies and other explanatory information
(hereinafter referred to as "the Financial Statements").
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Financial
Statements give the information required by the Companies
Act, 2013, as amended (''the Act'') in the manner so required
and give a true and fair view in conformity with accounting
principles generally accepted in India including the Indian
Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended ("Ind AS"), of the state of affairs of
the Company as at 31st March 2025, its profit (including other
comprehensive income), its changes in equity and its cash
flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in
accordance with the Standards on Auditing ("SAs") specified
under Section 143(10) of the Act. Our responsibilities under
those SAs are further described in the Auditor''s Responsibilities
for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants
of India ("ICAI''") together with the ethical requirements that are
relevant to our audit of the Financial Statements under the
provisions of the Act and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on the Financial Statements.
Emphasis of Matters
Attention is invited to:
a. the non-receipt of the foreign currency receivables as on
31st March 2025 aggregating to INR 120 Lakhs (as on
31st March 2024 - INR 174 Lakhs), which are outstanding
beyond the stipulated time period permitted under the RBI
Master Direction on Export of Goods and Services vide
FED Master Direction No. 16/2015-16 dated 1st January,
2016 (as amended), issued by the Reserve Bank of
India ("RBI"). The management of the Company is in the
process of obtaining approval towards extension of time
limits for realization or write off of the balances. Pending
such confirmation, no adjustment is envisaged in the
books of accounts as on 31st March 2025.
b. the adjustment of Income Tax Refund pertaining to
previous Assessment Years amounting to INR 45.17
Lakhs. The Income Tax Department has issued the refund
order on various dates for respective assessment years;
however, such refunds have been adjusted against the
outstanding demands through Centralized Processing
Centre ("CPC"). As represented by the management, the
Company has filed a writ petition with Honourable Madras
High Court against the adjustment of refund issued with
the outstanding demand.
c. Note No. 36 to the Financial Statement regarding the
non-compliance with various statutory compliances
under Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations,
2015 and Securities Contracts (Regulations) Rules,
1957, as amended with respect to the Minimum Public
Shareholding, appointment of Compliance Officer and
submission of certain prescribed information to the
Stock Exchanges during the previous reporting periods.
The Company has received the communication from BSE
Limited and National Stock Exchange of India Limited
in respect to such non-compliance and appropriate
provision has been accounted in the books of accounts as
on reporting date. However, the management is perusing
with the Stock Exchanges for waiver of such penalties
since the Company has complied with the Minimum
Public Shareholding threshold.
Our opinion is not modified in respect of the above
matters.
KEY AUDIT MATTERS
Key Audit Matters are those matters that, in our professional judgement, were of the most significance in our audit of the Financial
Statements of the financial year ended 31st March 2025. These matters were addressed in the context of our audit of the Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined the following matters as Key Audit Matters to be communicated in our report:
|
Key Audit Matters |
Auditor''s Response |
|
Litigations and claims-provisions and contingent liabilities |
Our audit approach include: |
|
As disclosed in Note 35 detailing contingent liability and Whether a liability is recognized or disclosed as a contingent The amounts involved are potentially significant and |
⢠Assessed the appropriates of the Company''s accounting ⢠Assessed the Company process for identification of ⢠Engaged subject matter specialists to gain an |
|
⢠Assessed the Company''s assumptions and estimates |
|
|
⢠Obtained details of completed tax assessments and |
|
|
⢠We involved our internal experts to review the |
|
|
⢠Assessed the management''s conclusions through |
|
|
Inventories |
Our audit approach include: |
|
Inventories are also the critical component of Financial |
⢠We assessed the Company''s process regarding ⢠We have evaluated the design of Internal Controls relating |
|
⢠We have carried out substantive audit procedures at |
|
|
⢠We have verified the compliance with the standard norms |
Other Information
The Company''s Board of Directors is responsible for the
preparation of the other information. The other information
comprises the information included in the Company''s Annual
Report, but does not include the Financial Statements, and our
auditor''s report thereon. The other information is expected to
be made available to us after the date of auditor''s report. Thus,
our report does not deal with matters mentioned under other
information in Annual Report.
Our opinion on the Financial Statements does not cover the
other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Financial Statements,
our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with
the Financial Statements or our knowledge obtained during
the course of our audit or otherwise appears to be materially
misstated.
When we read the other information, if we conclude that
there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Management''s Responsibilities for the Financial
Statements
The Company''s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to the
preparation of these Financial Statements that give a true and
fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of
the Company in accordance with the accounting principles
generally accepted in India, including the Ind AS specified
under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of
the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
preparation and presentation of the Financial Statement
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Financial Statements, Board of Directors is
responsible for assessing the Company''s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative
but to do so.
The Board of Directors is also responsible for overseeing the
Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about
whether the Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor''s report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken
on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
a) Identify and assess the risks of material misstatement of
the Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
b) Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal
financial controls with reference to Financial Statements
in place and the operating effectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the management.
d) Conclude on the appropriateness of management''s use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Company''s ability
to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw
attention in our auditor''s report to the related disclosures
in the Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of
our auditor''s report. However, future events or conditions
may cause the Company to cease to continue as a going
concern.
e) Evaluate the overall presentation, structure and content
of the Financial Statements, including the disclosures,
and whether the Financial Statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the
Financial Statements that, individually or in aggregate,
makes it probable that the economic decisions of
a reasonably knowledgeable user of the Financial
Statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified
misstatements in the Financial Statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Financial Statements of the
financial year ended 31st March 2025 and are therefore the
Key Audit Matters. We describe these matters in our auditor''s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in
our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order
2020 ("the Order"), issued by the Central Government
of India in terms of sub section (11) of Section 143 of
the Act, we give in the "Annexure A", a statement on the
matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit
of the aforesaid Financial Statements.
b. In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
Financial Statements have been kept by the
Company so far as it appears from our examination
of those books, except for the matters stated in the
paragraph 3(f) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules, 2014,
as amended.
c. The Balance Sheet, the Statement of Profit and Loss
(including Other Comprehensive Income), Statement
of Changes in Equity and the Statement of Cash
Flows dealt with by this Report are in agreement with
the books of account.
d. In our opinion, the aforesaid Financial Statements
comply with the Ind AS specified under Section 133
of the Act read with Companies (Indian Accounting
Standard) Rules, 2015 as amended.
e. On the basis of the written representations received
from the directors as on 31st March 2025 taken
on record by the Board of Directors, none of the
directors is disqualified as on 31st March 2025 from
being appointed as a director in terms of Section
164(2) of the Act.
f. The modifications relating to the maintenance of
accounts and other matters connected therewith are
as stated in the paragraph 2(b) above on reporting
under Section 143(3)(b) of the Act and paragraph
3(f) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014, as
amended.
g. With respect to the adequacy of the internal financial
controls with reference to Financial Statements
of the Company and the operating effectiveness
of such controls, refer to our separate Report in
"Annexure B" to this report.
3. With respect to the other matters to be included in the
Auditor''s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended,
in our opinion and to the best of our information and
according to the explanations given to us:
(a) The Company has disclosed the impact of pending
litigations on its financial position in its Financial
Statements. Refer Note: 35 to the Financial
Statements.
(b) The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses.
(c) There are no amounts which are required to be
transferred to the Investor Education and Protection
Fund by the Company.
(d) (i) The Management has represented that, to
the best of its knowledge and belief, no funds
(which are material either individually or in the
aggregate) have been advanced or loaned or
invested (either from borrowed funds or share
premium or any other sources or kind of funds)
by the Company to or in any other person(s)
or entity(ies), including foreign entity(ies)
("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that
the Intermediary shall, directly or indirectly lend
or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
(ii) The Management has represented, that, to
the best of its knowledge and belief, no funds
(which are material either individually or in the
aggregate) have been received by the Company
from any person(s) or entity(ies), including
foreign entity ("Funding Parties"), with the
understanding, whether recorded in writing or
otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(iii) Based on the audit procedures that have been
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of
Rule 11(e), as provided under (i) and (ii) above,
contain any material misstatement.
(e) The Company has not declared, paid interim dividend
during the year or proposed final dividend for the
year.
(f) Based on our examination which included test
checks and information given to us, the Company
has used accounting software for maintaining its
books of account, which does not have a feature of
recording audit trail (edit log) facility, and the same
did not operate throughout the year for all relevant
transactions recorded in the respective software.
Additionally, the preservation of audit trail is not
applicable for the previous year as the accounting
software did not have the feature of recording of
audit trail.
4. With respect to the other matters to be included in the
Auditor''s Report in accordance with requirement of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and
according to the explanations given to us, the remuneration
paid by the Company to its director during the year is in
accordance with the provision of section 197 of the Act.
The remuneration paid to directors is not in excess of the
limit laid down under section 197(16) which are required
to be commented upon by us.
For Brahmayya & Co.,
Chartered Accountants
Firm Registration No. 000511S
Lokesh Vasudevan
Partner
Place : Chennai Membership No. 222320
Date : 26th May 2025 UDIN: 25222320BMIKTW2187
Mar 31, 2024
We have audited the accompanying Financial Statements of Bafna Pharmaceuticals Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2024, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended then date and notes to the Financial Statements including a summary of material accounting policies and other explanatory information (hereinafter referred to as "the Financial Statements")
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India including the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS"), of the state of affairs of the Company as at 31st March 2024, its profit (including other comprehensive income), it changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Financial Statements.
Emphasis of Matters
Attention is invited to:
a. the non-receipt of the foreign currency receivables as on 31st March 2024 aggregating to ? 174 Lakhs (31st March 2023: ? 203 Lakhs) which are outstanding beyond the stipulated time period permitted under the RBI Master Direction on Export of Goods and Services vide FED Master Direction No. 16/2015-16 dated 1st January, 2016 (as amended), issued by the Reserve Bank of India ("RBI"). The management of the Company is in the process of obtaining approval towards extension of time limits for realization or write off of the balances. Pending such confirmation, no adjustment is envisaged in the books of accounts as on 31st March 2024.
b. the adjustment of Income Tax Refund pertaining to previous assessment years amounting to ? 45.17 Lakhs. The Income Tax Department has issued the refund order on various dates for respective assessment years; however, such refunds have been adjusted against the outstanding demands through Centralized Processing Centre ("CPC"). As represented by
the management, the Company has filed a writ petition with the Honourable Madras High Court against the adjustment of refund issued with the outstanding demand.
c. Note 33 (B) to the Financial Statement regarding the non-compliance with various statutory compliances under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Securities Contracts (Regulations) Rules, 1957, as amended with respect to the Minimum Public Shareholding, appointment of Compliance Officer and submission of certain prescribed information to the Stock Exchanges during the previous reporting periods. The Company has received the communication from BSE Limited and National Stock Exchange of India Limited in respect to such non-compliance and appropriate provision has been accounted in the books of accounts as on reporting date. However, the management is pursuing with the Stock Exchanges for waiver of such penalties.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of the most significance in our audit of the Financial Statements of the financial year ended 31st March 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the following matters as Key Audit Matters to be communicated in our report:
|
Key Audit Matters |
Auditor''s Response |
|
Litigations, Claims, Provisions and Contingent Liabilities As disclosed in Note 33 detailing contingent liability and provision for contingencies, the Company is involved in litigations concerning direct tax, indirect tax and other matters that are pending with various statutory authorities. Whether a liability is recognized or disclosed as a contingent liability in the Financial Statements is inherently judgmental and dependent on a number of significant assumptions and assessments. The amounts involved are potentially significant and determining the amount, if any, to be recognized or disclosed in the Financial Statements, is inherently subjective. |
Our audit approach include: ⢠Assessed the appropriates of the Company''s accounting policies, including those relating to provision and contingent liability by comparing with the applicable Indian Accounting Standards; ⢠Assessed the Company process for identification of the pending litigations and completeness for financial reporting and also for monitoring of significant developments in relation to such pending litigations; ⢠Engaged subject matter specialists to gain an understanding of the current status of litigations and monitored changes in the disputes, if any, through discussions with the management and by reading external advice received by the Company, where relevant, to establish that the provisions had been appropriately recognized or disclosed as required; ⢠Assessed the Company''s assumptions and estimates in respect of litigations, including the liabilities or provisions recognized or contingent liabilities disclosed in the Financial Statements. This involved assessing the probability of an unfavorable outcome of a given proceeding and the reliability of estimates of related amounts; ⢠Obtained details of completed tax assessments and demands. ⢠We involved our internal experts to review the management''s underlying assumptions in estimating the tax provision and the possible outcome of the disputes. ⢠Assessed the management''s conclusions through understanding precedents set in similar cases; and considering the appropriateness of the Company''s description of the disclosures related to litigations and whether these adequately presented in the Financial Statements. |
|
Key Audit Matters |
Auditor''s Response |
|
Inventories Inventories are also the critical component of Financial Statement. Correctness, completeness and valuation are critical for reflecting true and fair financial results of operations. |
Our audit approach include: ⢠We assessed the Company''s process regarding Maintenance of records, Valuation and accounting of transactions relating to Inventory as per the IND AS - 2. ⢠We have evaluated the design of Internal Controls relating to recording and valuation of Inventory. ⢠We have carried out substantive audit procedures at financial and assertion level to verify the allocation of overheads to Inventory. ⢠We have verified the compliance with the standard norms relating to production as framed and timely updated by the management. |
Other Information
The Company''s Board of Directors is responsible for the preparation of other information. The other information comprises the information included in the Company''s Annual Report, but does not include the Financial Statements, and our auditor''s report thereon. The other information is expected to be made available to us after the date of auditor''s report. Thus, our report does not deal with matters mentioned under other information in Annual Report.
Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Management Responsibilities for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under section 133 of the Act.. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.
In preparing the Financial Statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b. Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3X0 of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to Financial Statements in place and the operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
d. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
e. Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) Planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the financial year ended 31st March 2024 and are therefore the Key Audit Matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2020 ("the Order"), issued by the Central Government of India in terms of sub section (11) of Section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Financial Statements.
b. In our opinion, proper books of account as required by law relating to preparation of the aforesaid Financial Statements have been kept by the Company so far as it appears from our examination of those books, except for the matters stated in the paragraph 3(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended.
c. The balance sheet, the statement of profit and loss (including other comprehensive income), statement of changes in equity and the statement of cash flows dealt with by this report are in agreement with the books of account.
d. In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under Section 133 of the Act read with Companies (Indian Accounting Standard) Rules, 2015 as amended.
e. On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164(2) of the Act.
f. The modifications relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2(a) above on reporting under Section 143(3)(b) of the Act and paragraph 3(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules,2014, as amended.
g. With respect to the adequacy of the internal financial controls with reference to Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B" to this report.
3. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, in our opinion and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in its Financial Statements. Refer Note No. 33 to the Financial Statements.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There are no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
d. (i) The Management has represented that, to the best of its knowledge and belief, no funds (which are
material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries:
(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e. The Company has not declared, paid interim dividend during the year or proposed final dividend for the year.
f. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended, for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1st April 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014, as amended, is applicable for the financial year ended 31st March 2024.
Based on our examination which included test checks and information given to us, the Company has used accounting software for maintaining its books of account, which does not have a feature of recording audit trail (edit log) facility, and the same did not operate throughout the year for all relevant transactions recorded in the respective software.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended, is applicable from 1st April, 2023 reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended, on preservation of audit trail as per statutory requirements for record retention is not applicable for the financial year ended 31st March 2024.
4. With respect to the other matters to be included in the Auditor''s Report in accordance with requirement of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the
Company to its director during the year is in accordance with the provision of section 197 of the Act. The remuneration paid to
directors is not in excess of the limit laid down under section 197(16) which are required to be commented upon by us.
For Brahmayya & Co Chartered Accountants
Firm Regn No: 000511S
Sd/-
Place: Coonoor Lokesh Vasedevan
Date: 29th May 2024 Partner
Membership No: 222320 UDIN: 24222320BKETWK2887
Mar 31, 2023
Bafna Pharmaceuticals Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Financial Statements of Bafna Pharmaceuticals Limited ("the Company"), which
comprise the Balance Sheet as at 31st March 2023, and the Statement of Profit and Loss (including other comprehensive
income), the Statement of Changes in Equity and Statement of Cash Flows for the year ended on that date and notes to the
Financial Statements including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") and other accounting principles generally
accepted in India, of the state of affairs of the Company as at 31st March 2023, its profit (including other comprehensive
income), changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing ("SAs") specified under
Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the
Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants
of India ("ICAI") together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion on the Financial Statements.
Emphasis of Matters
Attention is invited to:
a. the non-receipt of the foreign currency receivables as on 31st March 2023 aggregating to ? 203 Lakhs which are
outstanding beyond the stipulated time period permitted under the RBI Master Direction on Export of Goods and
Services vide FED Master Direction No. 16/2015-16 dated 1st January, 2016 (as amended), issued by the Reserve Bank
of India ("RBI"). The management of the Company is in the process of obtaining approval towards extension of time
limits for realization or write off of the balances. Pending such confirmation, no adjustment is envisaged in the books of
accounts for the reporting period.
b. the non-compliance with Minimum Public Shareholding ("MPS") requirements specified in Rule 19 (2) and Rule 19A of
the Securities Contracts (Regulations) Rules, 1957, as amended and Regulation 38 of the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) ("Listing Regulations") of
Securities and Exchange Board of India ("SEBI") during the year. The Company had received communications from
BSE Limited and National Stock Exchange of India Limited in respect to such non-compliance and penalties have been
imposed on the Company. The Company had subsequently met the MPS criteria and is in the process of obtaining
waiver of the penalties levied.
c. the adjustment of Income Tax Refund pertaining to previous assessment years amounting to ? 45.17 Lakhs. The Income
Tax Department has issued the refund order on various dates for respective assessment years; however, such refunds
have been adjusted against the outstanding demands through Centralized Processing Centre ("CPC"). As represented by
the management, the Company has filed a writ petition with the Honourable Madras High Court against the adjustment
of refund issued with the outstanding demand.
d. the non-compliance of Section 203 of the Companies Act, 2013, and Regulation 6 of Listing Regulations with respect
to non-appointment of Company Secretary cum Compliance Officer from 12th August 2022. Subsequently, on 7th April
2023, the Board considered and approved the appointment of a Company Secretary.
e. the non-compliance in respect to the composition of Board of Directors of the Company, as required by the Regulation
17(1)(c) of the Listing Regulations. With effect from 14th January 2023, the Board comprised of 5 Directors, whereas the
said regulations mandates requirement of not less than 6 Directors.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of the most significance in our audit of the
Financial Statements of the financial year ended 31st March 2023. These matters were addressed in the context of our audit of
the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. We have determined the following matters as Key Audit Matters to be communicated in our report:
|
Key Audit Matters |
Auditor''s Response |
|
Property Plant and Equipment Peculiarity and technical complexities |
Our audit approach include: ⢠Review of the technical evaluation report of the independent agency ⢠Evaluating the competence and objectivity of the expert ⢠We assessed the Company''s process regarding maintenance of records, ⢠We have evaluated the design of internal controls relating to recording and ⢠We have carried out substantive audit procedures at financial and assertion ⢠We have verified the maintenance of records and accounting of transactions ⢠We have reviewed management judgement pertaining to estimation of useful |
|
Key Audit Matters |
Auditor''s Response |
|
Litigations, Claims, Provisions and As disclosed in Note 33 detailing Whether a liability is recognized or The amounts involved are potentially |
Our audit approach include: ⢠Assessed the appropriateness of the Company''s accounting policies, including ⢠Assessed the Company''s process for identification of the pending litigations ⢠Engaged subject matter specialists to gain an understanding of the current ⢠Assessed the Company''s assumptions and estimates in respect of litigations, ⢠Obtained details of completed tax assessments and demands for the year ⢠We involved our internal experts to review the management''s underlying ⢠Assessed the management''s conclusions through understanding precedents |
|
Inventories Inventories are also the critical |
Our audit approach include: ⢠We assessed the Company''s process regarding Maintenance of records, ⢠We have evaluated the design of Internal Controls relating to recording and ⢠We have carried out substantive audit procedures at financial and assertion ⢠We have verified the compliance with the standard norms relating to |
Other Information
The Company''s Board of Directors is responsible for the other information. The other information comprises the information
included in the Company''s Annual Report, but does not include the Financial Statements, and our auditor''s report thereon. The
other information is expected to be made available to us after the date of auditor''s report. Thus, our report does not deal with
matters mentioned under other information in Annual Report.
Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Financial
Statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
Management Responsibilities for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these Financial Statements that give a true and fair view of the financial position, financial performance, including
other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other
accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.
In preparing the Financial Statements, the management is responsible for assessing the Company''s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but
to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
a. Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
b. Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal financial controls with reference to Financial Statements in
place and the operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
d. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) Planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Financial Statements of the financial year ended 31st March 2023 and are therefore the key
audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Other Matters
The financial statements for the year ended 31st March 2022 were audited by other auditor, who have issued unmodified report
vide report dated 26th May 2022. This report has been furnished to us by the Management, which has been relied upon by us
for the purpose of audit of this financial statement
Our opinion is not modified in this respect.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2020 ("the Order"), issued by the Central Government of
India in terms of sub section (11) of Section 143 of the Act, we give in the "Annexure A", a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that
a. We have sought and 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.
c. The balance sheet, the statement of profit and loss (including other comprehensive income), statement of
changes in equity and the statement of cash flows dealt with by this report are in agreement with the books
of account.
d. In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under Section 133 of the
Act read with Companies (Indian Accounting Standard) Rules, 2015 as amended.
e. On the basis of the written representations received from the directors as on 31st March 2023 taken on record
by the Board of Directors, none of the directors is disqualified as on 31st March 2023 from being appointed
as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in "Annexure B" to this report.
3. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to
the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial position in its financial
statements. (Refer Note: 33(C) to the Financial Statements).
b. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
c. There are no amounts which were required to be transferred to the Investor Education and Protection Fund
by the Company.
d. (i) The Management has represented that, to the best of its knowledge and belief, no funds (which are
material either individually or in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company to
or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries:
(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are
material either individually or in the aggregate) have been received by the Company from any person
or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material
misstatement.
e. The Company has not declared or paid any dividend during the year.
f. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using
accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company
with effect from 1st April 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors)
Rules, 2014 is not applicable for the financial year ended 31st March 2023.
4. With respect to the other matters to be included in the Auditor''s Report in accordance with requirement of section
197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration
paid by the Company to its director during the year is in accordance with the provision of section 197 of the Act.
The remuneration paid to directors is not in excess of the limit laid down under section 197(16) which are required
to be commented upon by us.
For Brahmayya & Co
Chartered Accountants
Firm Regn No: 000511S
Sd/-
Place: Gurgaon Lokesh Vasedevan
Date: 27th May 2023 Partner
Membership No: 222320
UDIN: 23222320BGYUWT5397
Mar 31, 2019
STANDALONE - AUDITORS'' REPORT_
INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF BAFNA PHARMACEUTICALS LIMITED Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Bafna Pharmaceuticals Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, notes to financial statements and the significant accounting policies and other explanatory information (hereinafter referred to as" the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("IndAS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Companies Act, 2013.Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia(ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the IndAS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significantaudit findings, including any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Key Audit Matter
|
Key Audit Matter |
Auditor''s Response |
|
Compliance with IND AS 36 and IND AS 113: With a view to resolve the Insolvency and Bankruptcy proceedings initiated on the Company, the Promoter had submitted Resolution plan which was approved by NCLT, Chennai bench. The Resolution plan had proposed restructuring and restating of all assets liabilities which would have resulted in write offs as well as write backs in the books of accounts. However, due to appeal by an aggrieved party, NCLAT has stayed the handing over of the Corporate Debtor to the Resolution applicant and has also instructed that the status of the corporate debtor be maintained as a Going concern. In view of the above, the Company did not test the assets for recovery/impairment as per principles of IND AS 36 nor restated them at fair values as per IND AS 113. Similar is the case of non-restatement at fair values in the case of current liabilities. The Company has deferred the above to be carried out in the ensuing financial year (Ref: Foot note no. 5 of Audited Financial results as well as Note No.3 of IND AS notes to Financial Statements) |
We have given a modified opinion in our "Independent Auditors'' report on the standalone financial results pursuant to clause 33 of SEBI (Listing obligations and disclosure requirements) Regulations 2015 as follows: a. Major Components of Current Assets - Receivables outstanding for over one year, Long outstanding Advances to suppliers besides Stock of spares and Stores, which have all not been tested for recovery/ impairment as per IND AS 36, consequently not restated at fair values in accordance IND AS 113 and not provisioned in the accounts. b. Major Components of Current Liabilities - Sundry creditors whose balances are yet to be confirmed, hence not restated at fair values in accordance with IND AS 113. |
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and 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.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books ofaccount.
d) In our opinion, the aforesaid standalone financial statements comply with the IndAS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014, except for the modified opinion expressed under Key Audit matter:
c. Major Components of Current Assets - Receivables outstanding for over one year, Long outstanding Advances to suppliers besides Stock of spares and Stores, which have all not been tested for recovery/impairment as per IND AS 36, consequently not restated at fair values in accordance IND AS 113 and not provisioned in the accounts.
d. Major Components of Current Liabilities - Sundry creditors whose balances are yet to be confirmed, hence not restated at fair values in accordance with IND AS 113.
e) On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given toes:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BAFNA PHARMACEUTICALS LIMITED ("the Company") as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act,2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act,2013,to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorization of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting of future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
Inouropinion,tothebestofourinformationandaccordingtotheexplanationsgiventous, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019, except for the following areas:
a. Certain Balances of Debtors, Creditors and Deposits with Corporate bodies are subject to confirmation.
b. Balances pertaining to Advances given to suppliers for supply of materials and others remain unconfirmed.
However the company has an established set of "internal control over financial reporting criteria" duly taking into consideration the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE ''B'' TO the Independent Auditors'' Report on the IND AS Financial Statements of BAFNA PHARMACEUTICALS LIMITED
On the basis of such checks as we considered appropriate and according to information and explanations given to us during the course of audit, we report that:
i. In respect of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable
(c) According to the information and explanations given to us, the records examined by us, we report that, the title deeds, comprising all the immovable properties of land and buildings are held in the name of the Company as at the balance sheet date.
ii. a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, 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. The Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.
The maintenance of Stocks of Stores and spares requires to be assessed in respect of usefulness and value carried in the books of accounts.
iii. According the information and explanations given to us, the Company had granted unsecured loans to its subsidiary listed in the Register maintained under section 189 of the companies act, 2013. Since the subsidiary did not have any operations for the past few years, and has not been a going concern, the loan has been written off during the year with the approval of the Board.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2019 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Rules prescribed by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has not been regular in depositing the undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, TDS and Service Tax. However, the Company has has been regular in remittance of Goods & Service Tax, Custom Duty, Excise Duty, Value Added Tax, cess and other material statutory dues, as applicable, with the appropriate authorities. During the course of our audit, we observed certain instances of non-deduction of TDS on eligible payments made during the year.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues f income tax, sales tax, service tax, duty of customs and duty of excise duty, value added tax as at 31st March 2019 which have not been deposited, are as follows:
|
Name of the statue |
Nature of dues |
Amount (Rs.in Lakhs) |
Payment to which the amount relates |
Due date |
Date of payment |
|
EPF & MP Act 1952 |
PF Contribution |
233.14 |
Jan 2016 to March 2019 |
15th Day of the following month |
Not paid |
|
ESI Act 1948 |
ESI Contribution |
40.43 |
June 2016 to March 2019 |
21st Day of the following month |
Not paid |
|
Service Tax |
Service Tax |
19.02 |
June 2016 to March 2019 |
05th Day of the following month |
Not paid |
|
Income Tax Act 1961 |
TDS |
14.83 |
April 2017 to March 2019 |
07th Day of the following month |
Not paid |
|
Income Tax Act 1961 |
Income Tax Dues |
892.80 |
AY 2015-16 |
31st March 2015 |
Not paid |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has defaulted in repayment of loans or borrowings to State Bank of India, and was classified as Nonperforming asset as of March 31, 2017 itself, and the same position continues as at the date of Balance sheet under audit. The Company has also availed facilities from other banks namely, IDBI Bank Ltd and Development Credit Bank, Bank of Ceylon and DBS Bank Limited for working capital purposes. The Company has not taken loans or borrowing from Government and has not issued debentures during the year.
ix. During the year, an Operational Creditor filed under Section 9 of The Insolvency and Bankruptcy Code 2016 a Petition with The National Company Law Tribunal (NCLT), Single Bench, Chennai which was admitted as CP/682/IB/2017 against the Company. The Hon''ble NCLT, Single Bench, Chennai passed an order on 16thJuly 2018 for initiation of Corporate Insolvency Resolution Process (CIRP) against the Company. Committee of Creditors (COC) approved Resolution plan was submitted by the promoter was in turn approved by the Hon''ble NCLT, Chennai on 1st February 2019. However, an aggrieved shareholder filed an appeal with Hon''ble NCLAT (National Company Law Appellate Tribunal), and the handing over of corporate debtor to the resolution applicant was stayed by them on 28th February 2019. Post several hearing proceedings, which were held between the financial year end and the date of this report, the final judgment is reserved to be passed by the Hon''ble NCLAT, New Delhi.
x. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
xi. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xii. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.
xiii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiv. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xv. As per the provisions of clause 3 (xiv) of the order and according to the information and explanations given to us, the Company had made preferential allotment of 50,00,000 equity shares or private placement of shares during the previous year and all the requirements of section 42 of Companies Act, 2013 were complied with and amount raised has been used for the purpose for which funds were raised. . The Company had already obtained in principle approval and during the year, have obtained final approval of 50,00,000 equity shares which were allotted on preferential basis from both BSE Ltd and National Stock Exchange of India Limited.
xvi. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvii. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act,1934. Accordingly, the provisions of clause 3(xvi) of the Order is not applicable to the Company.
For R.SATHYANARAYANAN & CO
Chartered Accountants
(Firm''s Registration No.003656S)
Sd/-
R. SATHYANARAYAN
Place : Chennai Partner
Date : 27.05.2019 (Membership No.028377)
Mar 31, 2016
TO
THE MEMBERS OF BAFNA PHARMACEUTICALS LIMITED ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Bafna Pharmaceuticals Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Financial Statements that give the true and fair view of the financial position, financial performance and cash flows of the Company with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of the appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 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 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 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, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 on the financial statement.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 March 31, 2016;
(b) In the case of the Statement of Profit and Loss, of the Loss of the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2016 (the Order) issued by the Central Government of India in terms of Section 143(3) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(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 purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013
e. On the basis of the written representations received from the directors as on March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters included in the auditor''s report and to the best of our information and according to the explanation given to us.
1) The company has disclosed the impact of pending litigation on its financial position in its financial statement.
2) The company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
3) There has been no delay in transferring amounts, required to be transferred, to the investor''s education and protection fund by the company.
The Annexure referred to in paragraph 1 of Our Report of even date to the members of BAFNA PHARMACEUTICALS LIMITED. On the accounts of the Company for the year ended 31st March, 2016.
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. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable
(c) The title deeds of immovable properties are held in the name of the Company.
2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, 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. The Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.
3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Therefore the provision of clause 3(3a), (3b) and (3c) of the said order are not applicable to the Company.
4. In our opinion, and according to the information and explanations given to us, the Company has not given any loan nor made any investment and not provided guarantee or any security as such the provisions of Section 185 and 186 of the Companies Act, 2013 is not applicable on the Company.
5. The Company has not accepted any Deposits from the public within the meaning of section 73, 74, 75 and 76 of the Act and the rules framed there under to the extent notified.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the Rules prescribed by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is irregular in depositing the undisputed statutory dues, including provident fund, employees'' state insurance, income tax. TDS deducted on various parties.
|
Name of the statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Due date |
Date of Payment |
|
EPF & MP Act, 1952 |
PF Contribution |
2306710 |
Dec, 15 to Mar, 16 |
15th Day of Following Month |
Not Paid |
|
E.S.I. Act, 1948 |
ESI Contribution |
172402 |
Feb,16 to Mar, 16 |
21st Day of Following Month |
Not Paid |
|
Income Tax Act, 1961 |
TDS |
4144090 |
Oct, 15 to Mar. 16 |
7th Day of Following Month |
Not Paid |
|
Income Tax Act, 1961 |
Income Tax Dues |
44674037 |
Asst/y 2015-16 |
31st Mar, 15 |
Not Paid |
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, sales tax, service tax, duty of customs and duty of excise duty, value added tax as at [balance sheet date] which have not been deposited on account of a dispute, are as follows:
|
Name of the statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
|
|
||||
|
Income Tax Act, 1961 |
Income Tax Dues |
Rs. 11,83,300/- |
A/Y 2013-14 |
CIT(A), Chennai |
8. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government as at the balance sheet date.
9. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(9) of the Order are not applicable to the Company.
10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
11. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(12) of the Order are not applicable to the Company.
13. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review39. Accordingly, the provisions of Clause 3(14) of the Order are not applicable to the Company.
15. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(15) of the Order are not applicable to the Company.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(16) of the Order are not applicable to the Company.
For ABHAY JAIN & Co.,
Chartered Accountants
(FRN. 000008S)
Place: Chennai (A K JAIN)
Date: 30.05.2016 Partner
M No 70224
Mar 31, 2015
We have audited the accompanying financial statements of Bafna
Pharmaceuticals Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these Financial Statements that give the true and
fair view of the financial position, financial performance and cash
flows of the Company with the accounting principles generally accepted
in India, including the Accounting Standards specified under Section
133 of the Act, read with rule 7 of the the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities, selection and application of the
appropriate accounting policies, making judgements and estimates that
are reasonable and prudent, and the design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, 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
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 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by 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 on the financial
statement.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 March 31, 2015;
(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
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date. REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 (the
Order) issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(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 purpose of our
audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f. With respect to the other matters included in the auditor's report
and to the best of our information and according to the explanation
given to us.
1) The company has disclosed the impact of pending litigation on its
financial position in its financial statement.
2) The company has made provision, as required under the applicable law
or Accounting Standards, for material foreseeable losses, if any, on
long term contracts including derivative contracts.
3) There has been no delay in transferring amounts, required to be
transferred, to the investor's education and protection fund by the
company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of BAFNA PHARMACEUTICALS LIMITED. On the accounts of the
Company for the year ended 31st March, 2015.
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. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013. Therefore the provision of clause 3(iii),
(iiia) and (iiib) of the said order are not applicable to the Company
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. The Company has not accepted any Deposits from the public within
the meaning of section 73, 74, 75 and 76 of the Act and the rules
framed there under to the extent notified.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Rules prescribed by the Central Government under
Section 148(1) of the Companies Act, 2013 and are of the opinion that
prima facie, the prescribed cost records have been made and maintained.
We have, however, not made a detailed examination of the cost records
with a view to determine whether they are accurate or complete.
7. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities.
(b)According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
wealth tax, service tax, sales tax, customs duty and excise duty and
cess as on 31st of March, 2015 which have not been deposited on account
of a dispute, are as follows:
© There is no amount required to be transferred by the company to the
Investor Education and Protection Fund Account in accordance with
provision of the Companies Act and the rule made there under.
8. The Company has no accumulated loss at the end of the financial year
ended as on 31st March, 2015 and not incurred any cash loss in the
financial year ended on that date or in the immediately preceding
financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
10. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For ABHAY JAIN & Co.,
Chartered Accountants
(FRN. 000008S)
Place: Chennai (A K JAIN)
Date: 29.05.2015 Partner
M No 70224
Mar 31, 2014
We have audited the accompanying financial statements of Bafna
Pharmaceuticals Limited (the Company), which comprise the Balance Sheet
as at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of 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 and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation 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
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 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by 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 aforesaid 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 March 31, 2014;
(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
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
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 Section
227(4A) 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 purpose of our
audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of BAFNA PHARMACEUTICALS LIMITED. On the accounts of the
Company for the year ended 31st March, 2014.
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. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted / taken any loans, secured or unsecured, to / from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Consequently, the
provisions of clauses iii (b), iii(c) and iii (d) of the order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act and exceeding five lakhs rupees in respect of any party
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the time.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956 and the provision
of Clause VI of the Paragraph 4 of the order is not applicable to the
company.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act,1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employee'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities.
(b)According to the information and explanations given to us there were
undisputed amounts payable in respect of income tax of Rs. 97.61 lakhs
and Profit Distribution Tax of Rs. 18.25 Lakhs as on 31st March 2014
which were paid subsequently, other than these Wealth tax, service tax,
sales tax, customs duty and excise duty and cess were not in arrears as
on 31st of March, 2014 for a period of more than six months from the
date they became payable.
10. The Company does not have accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
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 or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments. In case of
subsidiary, Proper records & timely entries have been maintained in
this regard & further investments specified are held in their own name.
15. According to the information and explanations given to us, the
Company has given corporate Guarantee to the extent of Rs. 6.50 Crores
to M/s. Bank of Ceylon on behalf of M/s. Bafna Lifestyles Remedies
Limited, according to the information and explanation given to us , we
are of the opinion that the terms and conditions thereof are not prima
facie prejudicial to the interest of the Company.
16. The company has raised new term loan during the year. The Term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purpose for which they were raised.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year nor we have been informed
of such case by the management.
For ABHAY JAIN & Co.
Chartered Accountants
FRN:000008S
A K JAIN
Place: Chennai (Partner)
Date: 30.05.2014 M No. :070224
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of BAFNA
PHARMACEUTICALS Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows 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, implementation 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
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 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 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 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 March 31, 2013;
b) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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 purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of Our Report of even date to
the members of BAFNA PHARMACEUTICALS LIMITED on the accounts of 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. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern status.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted / taken any loans, secured or unsecured, to / from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Consequently, the
provisions of clauses iii (b), iii (c), iii (d), iii (f) and iii (g) of
the order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction made in pursuance of contract/ arrangement entered in
the Register maintained under section 301 of the Companies Act, 1956
and exceeding the value of Rs. 5,00,000/-, in respect of each party
during the year have been made in prices which appear reasonable as per
information available with the Company.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956. And the
provision of Clause VI of Paragraph 4 of the Order is not applicable to
the Company.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. We have broadly reviewed the Cost Records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rule 2011,
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956 and are of the opinion
that prima facie the prescribed Cost records have been maintained. We
have however, not made a detailed examination of the Cost Records with
a view to determine whether they are accurate or complete.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
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 or a nidhi /mutual benefit
fund/society. Therefore, the provision of this Clause XIII of Paragraph
4 of the Order is not applicable to the Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments. Hence, the
provision of Clause XIV of Paragraph 4 of the Order is not applicable
to the Company.
15. The Company has given Corporate Guarantee to the extent of Rs. 6.50
Crores to M/s. Bank of Ceylon on behalf of Bafna Lifestyles Remedies
Limited, according to the information and explanations given to us, we
are of the opinion that the Terms and conditions thereof are not prima
facie prejudicial to the interest of the Company.
16. The Company has raised new Term loans during the year. The Term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purpose for which they were raised.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. The Company issued 23,18,000 Share Warrants on 17.03.2011 which was
due for conversion during the year under audit. According to the
information and explanation given to us the company converted and
allotted 2,75,000 equity shares and the balance of 20,43,000 share
warrants were forfeited. We also report that the Company has not made
any preferential allotment of shares during the year to parties and
companies covered in the Register maintained u/s 301 of the Companies
Act, 1956.
19. The Company has no outstanding debentures during the period under
audit. Hence, the provision of Clause XIX of Paragraph 4 of the Order
is not applicable to the Company.
20. The Company has not raised any money by public issue during the
year. Hence, the provision of Clause XX of Paragraph 4 of the Order is
not applicable to the Company.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For ABHAY JAIN & Co.,
Chartered Accountants
FRN: 000008S
A K JAIN
(Partner)
Membership No: 70224
Place: Chennai
Date: 20.05.2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/S. BAFNA
PHARMACEUTICALS LIMITED as at 31st March, 2012 and the Profit & Loss
Account of the company for the year ended on that date annexed thereto.
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.
2. We have 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.
3. As required by the Companies (Auditor's Report) order, 2003 as
amended by the Companies (Auditors Report) Amendment) order, 2004,
issued by the Central Government of India in terms of sub section (4A)
of section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraph 4 & 5 of the said
order;
(i) Further to our comments in the annexure referred to above, we
report that: We have obtained all the information and explanations
which to the best of our knowledge and belief were necessary for of the
audit; In our opinion proper books of accounts as required by law have
been kept by the company, so far as appear from the examination of the
books.
(ii) The Balance Sheet, Profit & Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
(iii) In our opinion, the Balance Sheet and Profit & Loss account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of section 212 of the Companies Act 1956.
(iv) On the basis of the written representations from the directors, as
on 31st March, 2012 and taken on record by the Board of Directors, we
report that none of the directors are disqualified as on 31st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
(v) 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 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, 2012 and
b) In the case of the Profit and Loss Account of the Profit for the
year ended on that date.
c) In the case of Cash Flow Statement of Cash Flow for the Year ended
as of that date.
ANNEXURE REFERRED TO THE AUDITORS' REPORT REFERRED TO IN PARAGAPH 3 OF
OUR REPORT OF EVEN DATE TO THE MEMBERS OF M/S BAFNA PHARMACEUTICALS
LIMITED, CHENNAI ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2012.
(i) (a)The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. On the basis of information available except in respect
Grantlyon Unit where, the fixed assets register is being maintained.
(b)All the fixed Assets have been physically verified by the management
during the year. There is a regular programme of verification which in
our opinion is reasonable having regard to the size of the company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c)The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern status.
(ii) (a) According to information and explanation given to us, the
inventory has 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 record of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) According to Information and Explanation given to us, the
company has not taken any loan secured/ Unsecured from the company/
firm/or other parties covered in the Register Maintained U/S 301 of the
Companies Act, 1956.
(b) According to the information and explanation given to us, during
the year, the company has not granted any loan to a company, firm or
other parties covered in the Register maintained U/S 301 of the
Companies Act, 1956.
(c) According to information and explanations given to us, the loans
and advances granted is interest free and in the opinion of the
Management of the company, it is not prima facie prejudicial to the
interest of the company.
(d) According to information and explanations given to us, there is no
overdue amount of loans taken from or granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(iv) In our opinion and according to the information and explanation
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 purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness 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 Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transaction 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 five lakhs
rupees in respect of any party covered during the year have been made
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 not accepted any deposit from the public
during the year under report.
(vii) In our opinion, and according to the information and explanations
given to us, company has an Internal Audit system commensurate with the
size and nature of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, Vat, Wealth Tax,
Custom Duty, Excise Duty , Cess and other material statutory dues as
applicable
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty, Excise Duty and Cess were in arrears, as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, there
were no dues of Sales Tax, Income Tax, Excise Duty, Custom Duty, Wealth
Tax and cess, which have not been deposited on account of any dispute.
(x) The company does not have accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions and bank.
(xii) We are of the opinion that the company has not granted loans 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, 2003 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
provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) In our opinion, the terms and conditions on which the company has
given guarantees for Rs.6.50 Crores for loans taken by M/s. BAFNA
LIFESTYLES REMEDIES LIMITED from M/s. AXIS Bank is not prejudicial to
the interest of the company.
(xvi) In our opinion the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short terms basis have been used for long term
investment. No long term funds have been used to finance short term
assets except permanent working capital.
(xviii) (a)According to the information and explanation given to us,
the company has made preferential allotment of 9,00,000 Equity Shares
of the face value of Rs.10/- each at a premium of Rs.40/- per share
aggregating to Rs.4,50,00,000/- to strategic Investors and they are not
covered in the register maintained U/s 301 of the Companies Act,1956.
(b) Further, 25,00,000 Convertible Share Warrants have been allotted to
Promoters & Strategic Investors on 13th January, 2012 convertible into
equal number of Equity Shares of face value of Rs.10/- each at a
premium of Rs.40/- per warrant. For the aforesaid Share Warrants, the
allottee has already paid Rs.12.50/- per Warrant aggregating to
Rs.3,12,50,000/-. For the aforesaid Warrants right to exercise
conversion option is available within 18 months from the date of
allotment of Warrants.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The Company has not raised any money by public issue during the
year accordingly the provision of Paragraph 4(xx) of the Companies
(Auditor's Report) order 2003 is not applicable.
(xxi) According to information and explanation given to us, that no
fraud on or by the company have been noticed or reported during the
course of our audit.
for ABHAY JAIN & CO,
Chartered Accountants
FRN:000008S
(A.K.JAIN)
Partner
M. NO 70224
Date: 30.05.2012
Place: Chennai
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/S. BAFNA
PHARMACEUTICALS LIMITED as at 31st March, 2011 and the Profit & Loss
Account of the company for the year ended on that date annexed thereto.
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.
2. 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.
3. As required by the Companies (Auditor's Report) order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraph 4 & 5 of the said
order;
(i) Further to our comments in the annexure referred to above, we
report that: We have obtained all the information and explanations
which to the best of our knowledge and belief were necessary for of the
audit; In our opinion proper books of accounts as required by law have
been kept by the company, so far as appear from the examination of the
books.
(ii) The Balance Sheet, Profit & Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
(iii) In our opinion, the Balance Sheet and 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.
(iv) On the basis of the written representations from the directors, as
on 31st March 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
(v) 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 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 2011: and
b) In the case of the Profit and Loss Account of the Profit for the
year ended on that date.
c) In the case of Cash Flow Statement of Cash Flow for the Year ended
as of that date.
Annexure referred to the auditors' report referred to in Paragraph 3 of
our report of even date to the members of M/S Bafna Pharmaceuticals
Limited, Chennai on the accounts for the year ended 31st March 2011.
(i) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. On the
basis of information available except in respect Grantlyon Unit where,
the fixed assets register is being maintained.
(ii) All the fixed Assets have been physically verified by the
management during the year. There is a regular programme of
verification which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification. The Company has not
disposed off any substantial part of fixed assets so as to affect its
going concern status.
(iii) (a) According to information and explanation given to us, the
inventory has 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 record of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) According to Information and Explanation given to us, the
company has not taken any loan secured/ Unsecured from the company/
firm/or other parties covered in the Register Maintained U/S 301 of the
Companies Act 1956.
(b) According to the information and explanation given to us, during
the year, the company has granted loan of Rs.16,10,376/- to a company
covered in the Register maintained U/S 301 of the Companies Act
1956.The year end balance of the loan so granted to such company was
Rs.16,10,376/-.
(c) According to information and explanations given to us, the loans
and advances granted is interest free and in the opinion of the
Management of the company, it is not prima facie prejudicial to the
interest of the company.
(d) According to information and explanations given to us, There is no
over due amount of loans taken from or granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act 1956.
(iv) In our opinion and according to the information and explanation
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 purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weakness 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 Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transaction 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 five lakhs rupees in
respect of any party covered during the year have been made 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 not accepted any deposit from the public
during the year under report.
(vii) In our opinion, and according to the information and explanations
given to us, company has in house Internal Audit system commensurate
with the size and nature of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the Prescribed
accounts and records have been made and maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, VAT, wealth tax,
custom duty, excise duty, cess and other material statutory dues as
applicable.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March 2011 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us there
were no dues of sales tax, income tax, excise duty, custom duty, wealth
tax, and cess, which have not been deposited on account of any dispute.
(x) The company does not have accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions and bank.
(xii) We are of the opinion that the company has not granted loans 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, 2003 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
provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) In our opinion, the terms and conditions on which the company has
given guarantees Rs.6.50 Crores for loans taken by M/s. BAFNA
LIFESTYLES REMEDIES LIMITED from M/s. AXIS Bank is not prejudicial to
the interest of the company.
(xvi) In our opinion the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explain given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short terms basis have been used for long term
investment. No long term funds have been used to finance short term
assets except permanent working capital.
(xviii) (a )According to the information and explanation given to us,
the company has made preferential allotment of 15,00,000 Equity Shares
to the Strategic Investors on 17th March, 2011 of the face value of
Rs.10/- each at a premium of Rs.37. 30/- per share aggregating to
Rs.7,09,50,000/-.
(b) Further, 23,18,000 Convertible Share Warrants have been allotted to
Promoters & Strategic Investors on 17th March, 2011 convertible into
equal number of Equity Shares of face value of Rs.10/- each and premium
of Rs.37.30 Per Share. For the aforesaid Share Warrants, the allottee
has already paid Rs.11.83/- per Warrant aggregating to Rs.27410350/-.
For the aforesaid Warrants right to exercise conversion option is
available within 18 months from the date of allotment of Warrants.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) The Company has not raised any money by public issue during the
year accordingly the provision of Paragraph 4(xx) of the Companies
(Auditor's Report) order 2003 is not applicable.
(xxi) According to information and explanation given to us, that no
fraud on or by the company have been noticed or reported during the
year.
For ABHAY JAIN & CO
Chartered Accountants
(A.K.JAIN)
Partner
M.No. 70224
Date: 30.05.2011
Place: Chennai
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/S-Bafna
Pharmaceuticals Limited as at 31st March, 2010 and the Profit & Loss
Account of the company for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. 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 be lieve that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure, a
statement on the matters specified in paragraph 4 & 5 of the said
order.
4. Further to our comments in the annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the audit; IL In
our opinion, proper books of accounts as required by law have been kept
by the company so far as it appears from our examination of those
books; lit. The Balance Sheet, Profit S Loss Account and Cash Flow
statement dealt with by this report are in agreement with the books of
account; iv. In our opinion, the Balance Sheet and 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. v. On the basis of the written representations from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 2 74 of the Companies Act, 19S6; vi.
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 in conformity with the accounting principles
generally accepted in India:
1. In the case of the Balance Sheet of the state of affairs of the
company as at 31st March, 2010;
2. In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
3. In the case of Cash Flow Statement, of cash flows for the year
ended on that date.
Annexure referred to the auditors report referred to in paragraph 3 of
our report of even date to the members of M/s Bafna Pharmaceuticals
Limited, Chennai on the accounts for the year ended 31st March, 2010,
i. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of information available, except in respect
Grantlyon Unit, where, the fixed assets register is to be updated.
(b) All the fixed assets have been physically verified by the
management during the year There is a regular programme of
verification, which in our opinion Is reasonable having regard to the
size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern status.
ii, (a) The inventory has 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 record of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
Hi. (a) The Company has granted a loan to a body corporate covered in
the register maintained under section 301 of the Companies Act, 1956
(the Act). The maximum anount outstanding during the year was
Rs,22,85,376/- and the year ended balance of such loans amounted to Rs.
22,85,376/-. Other than above, the Company has not granted any loans,
secured or unsecured, to companies, firms or parties covered in the
register maintained under Section 301 of the Act,
(b) In our opinion, the rates of interest and terms and conditions on
which loans have been taken /given have not prima facie prejudicial to
the interest of the company.
(c) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in thepayment of interest
(d) There is no overdue amount of loans taken from or granted to
companies, firms or other parlies listed in the register maintained
under section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanation
given to us, there are adequate Intern Control Procedures commensurate
with the size of tte company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods. 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 Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transaction 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 five takhs rupees in
respect of any party covered during the year have been made 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 not accepted any deposit from the public
during the year under report. vi: In our opinion, and according to the
information and explanations given to us, company has in house Interna)
Audit system commensurate with the size and nature of its business.
viii, We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the Prescribed
accounts and records have been made and maintained.
ix, (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, incometax, sales tax, VAT, wealth tax,
custom duty, excise duty, cess and other material statutory dues as
applicable,
(b) According to the information and explanations given to us, no
undisputed amounts payable In respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March, 2010 for a period of more than six months from the date they
became payable.
(c} According to the information and explanations given to us there
were no dues of sales tax, income tax, excise duty, custom duty, wealth
tax, and cess, which have not been deposited on account of any dispute.
x. The company does not have accumulated losses at the end of the
financial year The company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year
xl In our opinion and according to the information andexplanations
given to us, the company has not defaulted in repayment of dues to
financial institutions and bank.
xii We are of the opinion that the company has not granted loans and
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 (Auditors Report) Order, 2003 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
provisions of clause4
(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable. xv. According to the information and explanation given to
us, the Company has not given guarantee for loans taken by others from
banks or financial institutions. Accordingly, paragraph 4
(xv) of the Order is not applicable.
xvi. In our opinion, the term loans have been applied for the purpose
for which they were raised.
xvii. According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short terms basis have been used for long term
investment. No long term funds have been used to finance short term
assets, xviit. According to the information and explanation given to
us, the company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures. xx. The company has not raised any money by public issue
during the year Accordingly, paragraph 4
(xx) of the order is not applicable
xxi. According to information and explanation given to us, that no
material fraud on or by the company have been noticed or reported
during the course of our audit*
For ABHAY JAIN &CO-
Chartered Accountants
(A.K.JAIN)
Partner
Place: Chennai M.No.70224
Date: 28/05/2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Bafna Pharmaceuticals Ltd.
-
Bafna Pharmaceuticals Ltd. Tools
- Bulk Deals
-
Bafna Pharmaceuticals Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
Bafna Pharmaceuticals Ltd. Key Financial Ratios
- Ratios
-
Bafna Pharmaceuticals Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Bafna Pharmaceuticals Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Bafna Pharmaceuticals Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Bafna Pharmaceuticals Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+