add life pharma ltd Auditors report

ADD LIFE PHARMA LIMITED ANNUAL REPORT 2004-2005 AUDITORS REPORT To, The Members, ADD LIFE PHARMA LIMITED Ahmedabad. We have audited the attached Balance Sheet of ADD LIFE PHARMA LIMITED as at 31st March, 2005 and the Profit and Loss Account for the year ended on that date annexed thereto and also the cash flow statement for the year ended on that date. 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 the test basis, evidence supporting the accounts 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 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 : (1) 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. (2) In our opinion, proper Book of Accounts as required by law have been kept by the company so far as appears from our examination of such Books. (3) The Balance Sheet, Profit & Loss Account Cash Flow Statement dealt with by this report are in agreement with the books of account. (4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement Dealt with by this report comply with Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956. (5) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2004 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956. (6) In our opinion and to the best of our information and according to the explanation given to us, read with Notes on Account give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view. (i) In the case of the Balance Sheet, of the state of the affairs of the Company as at 31st March, 2005. (ii) In the case of the Profit & Loss Account, of the less of the Company for the year ended on that date. (iii) In the case of Cash Flow Statement of the cash flows for the year ended on that date. For, HARISH V. GANDHI & CO. Chartered Accountants Place : Ahmedabad Harish V. Gandhi Date : 30-8-2005 Proprietor ANNEXURE TO THE AUDITORS REPORT (i) (A) The Company has maintained proper records showing full particulars including quantitative details and situation, of fixed assets to the side of the company and the nature of its assets. (B) We are informed that certain assets have been physically verified by the management at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and nature of its assets, We are informed that no material discrepancies were notices on such verification. (C) During the year company disposed off a certain part of the plant and machinery which may affect the working of the Company. (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 records of inventory. The discrepancies noticed on verification between the physical stocks and the book records have been properly deal with in the books of account. (iii) (A) According to the information and explanations given to us, there are no Companies, firms and other parties listed in the register maintained u/s 301 of the Companies Act, 1956. As such clause (a) to (d) are not applicable to the company. (iv) According to the information and explanations 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 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 in to the register maintain under section 301 of the Companies Act, 1956 have been so entered. (B) In our opinion and according to the information and explanations given to us, the transactions 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 rupees five lakhs in respect of any party 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 deposit u/s 58A of the Companies Act, 1956. (vii) In our opinion the company has no internal audit system commensurate with the size and nature of its business. (viii) According to information given to us, the maintenance of cost records have not been prescribed by the Central Government u/s 209 (1) (d) of the Companies Act 1956 for the period under review. (ix) (A) According to information and explanations given to us there are no undisputed statutory dues unpaid. (B) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, Wealth Tax, Custom duty, Excise duty and cess were in arrears as at 31-03-2005 for a period of more than six months from the date they become payable. (C) According to the information and explanations given to us, there were no dues of sales tax, income tax and cess that have not been deposited on account of any dispute. (x) In our opinion, the accumulated losses of the company are not more than fifty percent of its net worth. The company has Incurred cash losses during the financial year covered by our audit and the immediately preceding financial year. (xi) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the company has defaulted in repayment of dues to a bank. (xii) Based on our examination of documents and record, 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 or other securities. (xiii) In our opinion, the company is not a chit fund or a nidhi mutual fund/ society. Therefore, the provisions of clause 49 (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, debenture and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (xv) According to the information and explanation given to us, the company has not given any guarantee for the loans taken by others from banks or financial institution. (xvi) In our opinion, the company has not raised term long during the period under review. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet to the company, we report that no funds raised on short-term basis have been used for long-term funds have been used to finance short term assets except permanent working capital. (xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. xix) There are no debentures issued and outstanding during the year. (xx) The company has not raised any money by way of public issue during the year. (xxi) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit. For, HARISH V. GANDHI & CO. Chartered Accountants Place : Ahmedabad Harish V. Gandhi Date : 30-8-2005 Proprietor