AUDITORS REPORT
To
The Members of
Dr. Reddys Bio-Sciences Limited. Hyderabad.
We have audited the accompanying financial statements of Dr.Reddys Bio-Sciences Ltd
which comprise the Balance Sheet as at 31 March 2013, and 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.
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and 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 our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the auditto obtain reasonable assurance about
whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Companys preparation and fair presentation of
the financial statements 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 management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
01. In our opinion and to the best of our information and according to the explanations
given to us, the 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 31
March 2013;
b) in the case of the Profit and Loss Account, of the loss 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.
02. 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 Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
03. 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 our
knowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required bylaw 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 referred to in subsection (3C) of section
211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors as on 31 March
2013, and taken on record by the Board of Directors, none of the directors is disqualified
as on 31 March 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to the rate at which
the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any
Rules underthe said section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
|
For A.Ramachandra Rao & Co. |
|
Chartered Accountants |
|
ICAI FRN : 002857S |
|
A.Ramachandra Rao |
| Place : Hyderabad |
Partner |
| Date : 10 May 2013 |
Membership No: 9750 |
ANNEXURE TO THE AUDITORS REPORT
(Of even date referred to in Para (2) of our Report)-
i. (a) The Company is maintaining proper records to show full particulars .including
quantitative details and situation of fixed assets.
(b) The company has regular program of physical verification of its fixed assets which,
in our opinion, is reasonable having regard to the size of the Company and nature of its
assets.
(c) During the year under report, the company has not disposed off any major part of
the Plant and machinery and hence clause 4(i) (c) is not applicable.
ii. (a) The Company does not have any inventories and as such verification of stocks
does not arise.In view of this the clauses 4(ii)(b) and 4(ii)(c) are not applicable to the
company
iii. (a) the company has not granted or taken any loans, secured or unsecured, to
companies,
firms or other parties covered in the register maintained u/s 301 of the Act during the
year.
(b) In view of the above, the sub-clauses4(iii) (b), 4(iii)(c), and 4(iii)(d), are not
applicable to the company.
iv. In our opinion and according to the information and explanations given to us, there
is an adequate internal control procedures commensurate with the size of the Company and
the nature of its business for the purchase of inventory and fixed assets.The Company does
not have any purchase of inventory and also for the sale of goods . During the course of
our audit, we have not observed any continuing failure to correct major weaknesses in
internal control system.
v. (a) In our opinion, and according to the information and explanations given to us,
the transactions that need to be entered in the register maintained 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 lacs 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. Based on the information provided to us, in our opinion, the Company has not
accepted any Deposits from the public during the year and hence, in our opinion, the
Clause 4(vi) is not applicable to the company for the year;
vii. In our opinion, the company has an internal audit system to commensurate with its
size and nature of its business.
viii. We are of the opinion, based on the information provided to us, the maintenance
of cost records has not been prescribed by the Central Government under section 209(1) (d)
of the Companies act ,1956 to the company.
ix. (a) According to the records of the company, the company is regular in depositing
the undisputed statutory dues including Sales tax, Income-tax, Customs duty, Excise duty
and Employees State Insurance and Provident Fund and cess, investor education fund with
the appropriate authorities. We have been informed that the provision of provident fund,
Investor Education protection fund, Employees State insurance ,sales tax .custom duty and
Excise duty are not applicable to the company.
(b) According to the information and explanations given to us, there are no dues of
sales tax/income tax/ customs duty/Wealth tax /excise duty/cess to be deposited on account
of any dispute;
(c) Further, since the Central government has till date not prescribed the amount of
cess payable under section 441A of the Companies act 1956,we are not in a position to
comment upon the regularity or otherwise of the company in depositing the same.
x. In our opinion the accumulated losses of the company are less than fifty percent of
its net worth Further the Company has incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
xi. Based on the information provided and explanation given to us, the company has no
dues to a Financial institution or bank or debenture holders.
xii. In our opinion and according to the information and explanation given to us, no
loans and advances have been granted by the company on the basis of security by way 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 and hence clause 4(xiii) of the Companies (Auditors Report) Order 2003 is not
applicable to the Company.
xiv. Based on the information given to us, the Company has not dealt or traded in
shares, securities, debentures or other investments during the year.
xv. Based on the information provided to us, the Company has not given guarantees for
loans taken by others from Banks or Financial Institutions.
xvi. According to the information and explanations given to us, the company has not
obtained any term loans during the year and hence clause 4(xvi) of the order is not
applicable to the company.
xvii. According to the information and explanations given to us, and on an overall
examination of the Balance Sheet of the Company, we are of the opinion that the funds
raised on short term basis have not been used for long term investment;
xviii. Based on the information provided and explanations offered, during the year, the
Company has not made any preferential allotment of shares to parties and companies covered
in the register maintained u/s 301 of the Companies Act 1956 and hence sub clause (xvii)
of the order is not applicable to the company for the year.
xix. The Company has not issued any debentures and not created any securities or
charges in respect of any debentures.
xx. The Company has not raised any money by way of Public Issue during the year.
xxi. In our opinion and according to the information provided and explanations offered
to us, no fraud on or by the Company has been noticed or reported during the year.
|
For A.Ramachandra Rao & Co. |
|
Chartered Accountants |
|
ICAI FRN : 002857S |
|
A.Ramachandra Rao |
| Place : Hyderabad |
Partner |
| Date : 10 May 2013 |
Membership No: 9750 |
+91-9892691696
