To The Members of Dishman Pharmaceuticals and Chemicals
Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Dishman
Pharmaceuticals and Chemicals 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.
Managements Responsibility for the Standalone Financial Statements
Management is responsible for the matters in section 134(5) of the Companies Act, 2013
("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
and cash flows of the Company in accordance 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 the maintenance of adequate accounting records in accordance with the provision
of the Act for safeguarding of the assets of the Company and for preventing and detecting
the 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 internal financial control, 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.
Auditors Responsibility
Our responsibility is to express an opinion on these standalone financial statements
based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the standalone financial statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
standalone financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Companys
preparation of the standalone financial statements that give true and fair view 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 Companys Directors, as well as evaluating the overall
presentation of the standalone 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the standalone 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 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 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, 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 specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors as on March 31,
2015, and 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 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.
g. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its standalone
financial position in its financial statements .
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
|
For V. D. Shukla & Co. |
|
Chartered Accountants |
|
FRN: 110240W |
|
Vimal D. Shukla |
| Place : Ahmedabad |
Proprietor |
| Date : 22nd August, 2015 |
(Membership No.: 036416) |
Annexure To Audit Report The Annexure referred to in paragraph 1 of the our Report of
even date to the members of Dishman Pharmaceuticals and Chemicals 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. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has granted loan to a subsiadiary company
covered in the register maintained under Section 189 of the Companies Act, 2013. In
respect of loans granted, repayment of the principal amount is not yet stipulated and
payment of interest has been regular.
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. Based on the audit procedures applied by us and according to the information and
explanations provided by the management, the company has not accepted any deposit under
section 73 to 76 of the Act or any other relevant provisions of the Companies Act, 2013.
6. We have broadly reviewed the books of accounts maintained by the company pursuant to
the notification by the central government for maintenance of cost records under
sub-section 1 of section 148 of the Companies Act 2013 and on the basis of information
received, we are of the opinion that prima-facie the prescribed accounts and records have
been made and maintained as per the requirement. We have, however, not carried out a
detailed examination or audit 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. According to the
information and explanations given to us there were no outstanding statutory dues as on
31st of March, 2015 for a period of more than six months from the date they became
payable.
(b) The disputed statutory dues that have not been deposited on account of disputed
matters pending before appropriate authorities are as under.
| Statute |
Nature of dues |
Forum where dispute is pending |
Period for which the amount related |
Amount involved ( Lacs) |
| The Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate |
2001-2002,2002-2003, 2003-2004,2005, 2005-2006,2006-2007, 2007-2008, 2008-2009 |
4106.99 |
|
|
Hon. High Court of Gujarat |
2002-2003, 2003-2004, 2004-2005 |
729.26 |
|
|
Commissioner of income tax (Appeals) |
2008-2009, 2010-2011 |
1472.73 |
| Central Sales Tax |
Sales Tax |
Gujarat VAT Tribunal |
2006-2007 |
118.81 |
|
|
Joint Commissioner, |
2001-2002 |
24.42 |
| Gujarat Sales Tax Act |
Sales Tax |
Commercial Tax Gujarat VAT Tribunal |
2006-2007 |
146.97 |
|
|
Joint Commissioner, Commercial Tax |
2001-2002, 2007-2008, 2008-2009 |
269.36 |
| Central Excise Act, 1944 |
Excise Duties and Service Tax |
Hon. High Court of Gujarat |
2003-2004 |
13.84 |
|
|
Central Excise and Service Tax Appellate Tribunal |
2006-2007, 2008-2009, 2009-2010, 2012-13 |
154.25 |
|
|
The Commissioner (Appeals) Central Excise |
2006-2007, 2008-2009, 2009-2010, 2010-2011, 2011-2012, 2013-14 |
272.97 |
8. The Company does not have any accumulated loss and has not incurred cash loss during
the financial year covered by our audit and not 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 or bank.
10. According to the information and explanations given to us, the Company has given
corporate guarantee for loan taken by other from bank or financial institutions.
11. According to the information and explanation given to us, the term loan taken by
the company has been utilised for the purpose for which the loans were obtained.
12. 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 V. D. Shukla & Co. |
|
Chartered Accountants |
|
FRN: 110240W |
|
Vimal D. Shukla |
| Place : Ahmedabad |
Proprietor |
| Date : 22nd August, 2015 |
(Membership No.: 036416) |
+91-9892691696
