THE MEMBERS OF
DR. DATSONS LABS LIMITED.
(FORMERLY KNOWN AS AANJANEYA LIFECARE LIMITED )
Report on the Financial Statements
1. We have audited the accompanying financial statements of DR. DATSONS LABS LIMITED(Formerly known as Aanjaneya Lifecare Limited) ("the Company"), whichcomprises the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss andCash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.
Managements Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial statements thatgive a true and fair view of the financial position, financial performance and cash flowsof the Company in accordance with the Accounting Standards notified under the CompaniesAct, 1956 ("the Act") read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of section 133 of theCompanies Act, 2013. This responsibility includes the design, implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment, including the assessment of the risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the entitys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entitys internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overall presentation of the financialstatements."
4. In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the Company as at March31, 2014;
b. in the case of the of Statement of Profit and Loss, of the profit for the year endedon that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
5. As required by the Companies (Auditors Report) Order, 2003 (theOrder") issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act, we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.
6. 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 the purpose of our audit;
b. in our opinion, proper books of account as required by law have been kept by theCompany, so far as appears from our examination of those books and proper returns adequatefor the purposes of audit have been received from branches not visited by us.
C. The Company does not have any branch. Hence requirement for the report on theaccounts of the branch offices under section 228 is not applicable.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account; and with the returns receivedfrom branches not visited us.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash FlowStatement comply with the
Accounting Standards notified under the Companies Act, 1956 read with the GeneralCircular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairsin respect of section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31, 2014, from being appointed as a director in terms of clause (g) ofsubsection (1) of section 274 of the Companies Act, 1956.
f. 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 issuedany 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.
|For Agarwal Desai & Shah|
|Firms Regn. No.: 124850W|
|Date: 30th May, 2014.||M. No. 126656|
Annexure to Auditors Report referred to in paragraph 5 of our report of even date tothe members of DR. Datsons Labs Limited (Formerly known as Aanjaneya Lifecare Limited) onthe financial statements for the year ended 31stMarch ,2014.
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the management inaccordance with a regular program of verification which in our opinion provides forphysical verification of all fixed assets at reasonable intervals having regard to thesize of the company and nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
(c) The Company has not disposed off substantial part of fixed assets during the year.
ii. (a) The inventory of raw material, finished/semi-finished and other tradedmaterials have been physically verified by management at reasonable interval during theyear.
(b) In our opinion and according to the 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 & the nature of its business.
(c) The Company has been maintaining proper records of inventory and no discrepancieswere noticed on verification between the physical stocks and book records.
iii. (a) The Company has not granted any loans ,secured or unsecured to companies,firms or other parties covered in the register maintained under section 301 of theCompanies Act 1956.
(b) The Company has not taken any secured loans from companies, firms or other partiescovered in the register maintained under section 301 of the Companies Act 1956 .TheCompany has taken unsecured loans from three parties covered in the register maintainedunder section 301 of the Act. The maximum amounts involved during the year was Rs .4395.64Lacsand the year end outstanding of loans taken from such parties was Rs.4384.00Lacs.
(c) In our opinion and according to the information and explanations given to us, suchunsecured loans taken by the company are interest free in nature and other terms andconditions of such loans are not prima facie prejudicial to the interest of the company.
(d) In our opinion and according to the information and explanations given to us, suchunsecured loans taken by the company are repayable on demand. There has been no default inthe repayment of such loans taken by the company. Such unsecured loans are interest free.
(e) There is no overdue amount in respect of loans taken by the company from partieslisted in the register maintained under section 301 of the Companies Act 1956.
iv In our opinion and according to information & explanations given to us, thereare adequate internal control system commensurate with the size of the company and thenature of its business for the purchase of inventory, fixed assets and with regard to saleof goods and services. Further on the basis of our examination of the books and records ofthe company we have not come across any major weakness or continuing failure to correctany major weaknesses in the aforesaid internal control system.
v In respect of transactions covered under section 301 of the Companies Act, 1956.
(a) In our opinion and according to the information and explanations given to us, thetransaction made in pursuance of contracts or arrangements that needed to be entered intothe register maintained u/s. 301 of the Companies Act 1956 have been so entered.
(b) In our opinion and according to the information and explanations given to us, thesetransaction made in pursuance of such contracts or arrangements and exceeding the value ofrupees five lacs in respect of any party during the year have been made at prices whichare reasonable having regard to the prevailing market prices at relevant time.
vi. The Company has not accepted any deposits from public during the year, henceprovision of sections 58-A & 58-AA of the Companies Act, 1956 are not applicable
vii. The Company has an Internal Audit System Commensurate with the size and the natureof its business
viii. We have broadly reviewed the books of account maintained by the company pursuantto the rules made by the Central Government for maintenance of cost records under section209 (1) (d) of Companies Act, 1956 and are of the opinion that prima facie , theprescribed accounts and record have been made and maintained.
ix. According to the information and explanations given to us in respect of statutorydues :
(a) The Company has not been regular in depositing undisputed statutory dues includingProvident Fund, Income Tax Deducted at Source, and Service Tax with the appropriateauthorities during the year. Further, since the Central Government has till date notprescribed the amount of cess payable under section 441A of the Companies Act 1956, we arenot in a position to comment upon the regularity or otherwise of the company in depositingthe same.
(b) There were arrears of undisputed statutory dues in respect of the Provident FundRs. 20.55 Lacs, Professional Tax Rs. 3.17 Lacs, Income Tax Deducted at Source Rs.107.87Lacs and Service Tax Rs. 9.85 Lacs as at 31st March 2014 outstanding for aperiod of more than six months from the date they became payable .
(c) There are no statutory dues which have not been deposited on account of anydispute.
x. This is the Eighth year of the Companies existence .The company has no accumulatedlosses as at 31st March 2014 and has not incurred any cash losses during thefinancial year ended on that date or in the immediately preceding financial year .
xi. According to the records of the Company examined by us and the information andexplanations given to us, there has been major default in repayments of dues to Banksamounting to Rs 1197.54 Lacs in respect of Principal repayments of term loan and Rs488.26 Lacs in respect of interest thereof. Further the interest remaining due andunpaid on Working Capital Demand Loan (WCDL) / Cash Credit (CC) to Banks stands at Rs 3305.16lacs as at 31st March, 2014.The period of delay is ranging between One month toSeventeen months. There are no debenture holders.
xii. The company has not granted any loans and advances on the basis of any security byway of pledge of shares, debentures and other securities..
xiii. In our opinion, the Company is not a chit fund or Nidhi / Mutual benefit fund/society. Therefore the provisions of any special statute as specified under clause4(xiii) of the said Order are not applicable to the company.
xiv. In our opinion the Company is not a dealer or trader in shares, securities,debenture and other investments.
Therefore the provisions of clause 4(xiv) of the Order are not applicable to thecompany
xv. According to the information and explanations given to us the company has not givenany guarantee for loans taken by others from banks or financial institutions during theyear.
xvi. In our opinion and according to information and explanation given to us, termloans taken from banks were applied for the purpose for which such loans were obtainedduring the year.
xvii. According to the information and explanations given to us and on the basis of anoverall examination of the Balance Sheet of the company , there are no funds raised onshortterm basis that have been used for long-term investment.
xviii. During the year, the company has not made any preferential allotment of sharesto parties and companies covered in the register maintained under section 301 of thecompanies Act, 1956.
xix. The company has not issued debentures since inception.
During the year the company has not raised any money by issuing shares to the Public.However the company had issued Foreign Currency Convertible Bond (FCCB) aggregating to US$ 40 Million during the financial year 2012-14 for acquisition of company overseas. Duringthe current financial year under report FCCB aggregating to US $ 18 Million were convertedinto 1,77,68,124 equity shares at conversion price of Rs 55 per share. The Management hasdisclose its end use and we have verified the same.
xx. According to the information & explanation given to us and based on ourexamination of the books and records of the company, we have not come across any instanceof significant fraud on or by the company noticed or reported during the course of ouraudit.
|For Agarwal Desai & Shah|
|Firms Regn. No.: 124850W|
|Date: 30th May, 2014.||M. No. 126656|