mesco pharmaceuticals ltd share price Auditors report

MONOZYME INDIA LIMITED ANNUAL REPORT 2007-2008 AUDITORS REPORT To The Members of MONOZYME INDIA LIMITED SECUNDERABAD We have audited the attached Balance Sheet of MONOZYME INDIA LIMITED, as at March 31, 2008 and also the Profit and Loss account and the Cash Flow Statement 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. 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. As required by the Companies (Auditors 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 paragraphs 4 and 5 of the said Order. 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 purpose of our audit; (ii) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books; (iii) The Balance Sheet, Profit and Loss account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts; (iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with all the mandatory accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; (v) On the basis of written representations received from the directors as on March 31, 2008 and taken on record by the Board of Directors, in our opinion, we report that none of the directors is disqualified as on March 31, 2007 from being appointed as a director in terms of Clause (g) of sub- section (1) of Section 274 of the Companies Act, 1956. (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: a) In the case of the Balance Sheet, of the state of affair of the Company as at 31st March, 2008; b) In the case of Profit and Loss Account, of the Profit of the company as at 31st March, 2008; c) In the case of Cash Flow Statement, of the Cash flows for the year ended on that date. for P.M. Rao & Associates Chartered Accountants (P. Mastan Rao) Partner M. No.: 021537 Place: Secunderabad Date : 14-07-2008 ANNEXURE TO THE AUDITORS REPORT (This is the Annexure referred to in our Report of even date) In terms of the information and explanation given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under: 1) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b. All fixed assets have not been physically verified by the Management during the year but 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 disposed the Land of the company along with the investments made in the new project for an amount of Rs.1,80,50,195/- against the original cost Rs. 1,34,02,234, and earned capital gain of Rs.46,47,771/-, Office equipment for an amount of Rs. 4,33,09 against the original cost of Rs.7,10,113/- and Plant & Machinery for an amount of Rs.85,455/- against the original cost of Rs.1,63,550/- and car for an amount of Rs.410620/- against the original cost of Rs.8,33,550/-. 2) a. The Management has conducted physical verification of inventory at reasonable intervals during the year. b. The procedures of physical verification of inventory 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 records of inventory and no material discrepancies were noticed on physical verification. 3) The company has neither granted not taken any loans, secured or unsecured, to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. 4) In our opinion, 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 and fixed assets and with regard to sale of Goods. During the course of our audit no major weaknesses have been noticed in Internal controls in these areas. 5) In our opinion and according to the information and explanations given to us, there are no contracts or arrangements referred to in section 301 of the Act, which needs to be entered in the register required to be maintained under that section. 6) The Company has not accepted any deposits from the public. 7) In our opinion, the company has an internal audit system. 8) The Central Government has not prescribed maintenance of cost records by the Company under section 209(1)(d) of the Companies Act, 1956 for any of its products. 9) a. The Company is regular in depositing with appropriate authorities the undisputed statutory dues excepting the dues in respect of Provident Fund, Employees State Insurance, Income tax and Sales Tax and Professional Tax. b. According to the information and explanations given to us excepting an amount of Rs.40,084 representing the arrears of Employees State Insurance, dues and Rs, 15,401/- representing the arrears of professional tax, representing, Rs. 3,93,894/- representing the arrears of Sale Tax duus and Rs.19,78,891/- representing the arrears of Income Tax, there were no other undisputed statutory dues outstanding at the year end for a period of more than six months from the date they become payable. c. According to the records of the Company and on the basis of the information and explanations given to us, there are no dues of Sales-tax, Income-tax, Custom Duty, Wealth tax, Excise Duty, Cess which have not been deposited on account of any dispute. 10) The accumulated losses of the Company at the end of the financial year are less than Fifty percent of its net worth. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year. 11) The Company has not defaulted in repayment of dues to the financial institutions or banks or debenture holders. 12) The Company has not granted any loans or advance on the basis of security by the way of pledge of shares, debentures or other securities. 13) The Company is not a chit fund, nidhi or mutual benefit fund/society. 14) The company is not dealing or trading in shares, securities, debentures and other investments. 15) The Company has not given any guarantee for loans taken by others from banks or financial institutions. 16) In our opinion, Term Loans were applied for the purpose for which the said loans were obtained. 17) The funds raised on short term basis have not been used for long term investment and whereas part of long term funds were used for working capital requirement of the company. 18) During the year 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. 19) The Company has not issued any debentures and hence creation of securities for debentures does not arise. 20) During the year the company has not raised money by public issues. Hence other matters specified in the Clause are not applicable to the Company. 21) As per the checks carried out by us, no fraud on or by the company has been noticed or reported during the year under report. for P.M. Rao & Associates Chartered Accountants (P. Mastan Rao) Partner M. No.: 021537 Place: Secunderabad Date : 14-07-2008