Independent Auditors Report
THE MEMBERS OF,
SOCRUS SOCRUS BIO SCIENCES LIMITED
Report on the Financial Statements:
We have audited the accompanying financial statements of M/s Socrus Bio SciencesLimited ("the Company"), which Comprise the Balance Sheet as at 31stMarch, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the ear thenended, and a summary of the significant accounting policies and other explanatoryinformation, Management's Responsibility for the Financial Statements.
The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position, financial performanceand cash flows of the Company in accordance with the Accounting Standards deferred to insub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). Thisresponsibility includes the design; implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements not give a trueand fair view and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in Accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withthe ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
Un-audit involves performing procedures to obtain audit evidence about the amounts andthe .disclosures in the financial Statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments, theauditor considers the internal control relevant to the Company's preparation and fairpresentation of the financial statements in order design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theManagement, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give Information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31stMarch, 2013;
(b) In the case of the Statement of Profit and Loss, of the Loss of the Company for theyear ended on that date, and
(c) In the case of the Cash Flow Statement, of the cash flows of the Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements:
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 ofthe Act, we give in the Annexure a statement on the matters specified in Paragraphs 4 and5 of the Order.
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 ourknowledge and belief were necessary for he purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and the Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of section211 of the Act.
e) On the basis of the written representations received from the directors as on 31stMarch, 2013 taken on record by the Board of Directors, none of the directors isdisqualified as on 31st March, 2013 from being appointed as a director in terms of clause(g) of sub-section (1) of section 274 of the Act.
g) Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued anyRules under the said section, prescribing the manner in which such cess is to be paid, nocess is due and payable by the Company.
FOR: SHYAM NAGORI & COMPANY
DATE-05th SEP 2013.
ANNEXURE TO THE AUDITORS REPORT:
Referred to in paragraph (1) of our report of even date attached:
1)(a) In our opinion and according to information and explanations given to us. Thecompany has maintained proper records showing full particulars including quantitativedetails and situation of its fixed assets.
(b) According to the information and explanations given to us the fixed assets of thecompany have been physically verified by the Management at reasonable intervals during theyear and no material discrepancies are stated to have been noticed on such verification ascompared to Books of Account.
(c) In our opinion and according to information and explanations given to us, all fixedassets have been disposed off during the year, which could not affect the going concernstatus of the Company.
(II) (a) According to the information and explanations given to us. Physicalverification of inventory has been conducted at reasonable intervals by the Managementduring the year. In our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to information and explanation given to us, theprocedures of physical verification of inventory followed by the Management are reasonableand adequate in relation to the size of the company and the nature of its business.
(c) In our opinion, the company has maintained proper records of inventory andaccording to information and explanations given to us no material discrepancies werenoticed on physical verification conducted by the management.
(III)(a) In our opinion and according to information and explanations given to us, theCompany, has granted loans to three parties covered in the Register maintained undersection 301 of the Companies Act, 1956, the maximum amount involved during the year wasRs.3500000/- and year end balance is Rs. 3500000/-.
(b) The rate of Interest and other terms and conditions of loans given by the company,to the extent of interest free loans are not prejudicial to the interest of the company.
(c) The parties are regular in repaying principal as stipulated and have been regularin payment of interest, if any.
(d) There is no overdue amount of loans granted to companies, firms or other partieslisted in the register maintained under section 301 of the companies act, 1956.
(e) The company has not taken unsecured loans covered in the register maintained undersection 301 of the Companies Act, 1956, hence point (f) and (g) is not applicable to theCompany.
(IV) In our opinion and according to the information and explanations given to us,there are adequate internal control procedures commensurate with the size of the companyand nature of its business for the purchase of inventory and fixed assets and for the saleof goods services. During the course of our audit, we have not observed any continuingfailure to correct major weakness in internal controls.
(V)(a) According to the information and explanations given to us, we are of the opinionthat the transaction that needs to be entered into the register maintained under section301 of the companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations given to us, thetransactions made in pursuance of contracts of arrangements entered in the registermaintained under section 301 of the Companies Act, 1956 have been made at prices which arereasonable having regard to prevailing market prices at the relevant time.
(VI) According to the information and explanations given to us, the company has notaccepted deposits during the year and consequently the provisions of Section 58A and 58AAof the Companies Act and the Rules framed there under are not applicable.
(VII) We are of the opinion that the company has an internal audit system commensuratewith the size company and nature of its business.
VIII). In our opinion and according to information and explanations given to us, themaintains of the cost records have been prescribed by the Central Government under Section209(1)(d) of the Companies Act, 1956, for the activities of the company and we havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete. We have been explained that the cost audit will bedone by the company in due course.
(X)(a) According to the information and explanation given to us, the company is regularin depositing with appropriate authorities undisputed statutory Dues including providentfund employees' state insurance, income tax, wealth tax, sales tax, excise duty, cess andother material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed statutorydues were in arrears as at 31.03.2013 for a period of more than six months from the datethey become payable.
(c) According to the information and explanations given to us, there were no pendingdues which have not been deposited on account of any dispute in respect of salestax/income tax/custom duty/wealth tax/excise duty/cess as at 31st March, 2013.
X) The company have accumulated losses as at 31st March, 2013. The company haveincurred cash losses during the financial year covered under audit but incurred profit inthe immediately preceding financial year.
XI) In our opinion according to the information and explanations given to us, thecompany does not have any outstanding dues to financial institutions, banks ordebentureholders.
XII) According to the information and explanations given to us, the company has notgranted any loans and advances on the basis to security by way of pledge of shares,debentures and other securities, hence the maintenance of adequate documents and recordsis not applicable.
XIII) In our opinion and according to the information and explanations provided to us,the nature of activities of the company does not attract any special statute applicable tochit fund and a Nidhi/Mutual Benefit fund/Society.
XIV) According to information and explanation given to us, the company has maintainedproper records for dealing in shares & debentures and timely entries have been madetherein, all shares, debentures and other securities have been held by the company in itsown name.
XV) According to the information and explanations given to us, the company has notgiven any guarantee for loans taken by other, from Bank of Financial institution.
XVI) The Company has not accepted any term loans during the year.
XVII) According to the information and explanations given to us and on an overallexamination of the balance sheet of the company, we are of the opinion that the no fundsraised on short - term basis have been used for long - term investment. No long -termfunds have been used to finance short -term assets except permanent working capital.
XVIII) In our opinion and according to the information and explanations given to us,the company has not made any preferential allotment of shares during the financial year toparties and companies covered in Register maintained under section 301 of the Act.
(XIX) The Company has not issued any debentures, hence the provisions of clause 4 (xix)are not Applicable to the company.
(XX) During the financial year, company has not raised any money by public issues.
(XXI) In our opinion and according to the information and explanations given to us, nofraud on or by the company was noticed or reported during the year.
For SHYAM NAGORI & COMPANY
DATE: 05th September, 2013.