EPIC Enzymes Pharma & Industrial Chemicals Ltd Auditor Reports

EPIC ENZYMES PHARMACEUTICALS AND INDUSTRIAL CHEMICALS LIMITED ANNUAL REPORT 2011-2012 AUDITORS REPORT To, The Members, EPIC ENZYMES PHARMACEUTICALS & INDUSTRIAL CHEMICALS LTD. 1. We have audited the attached Balance Sheet of Epic Enzymes Pharmaceuticals & Industrial Chemicals Limited (the Company) as at March 31, 2012 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. 2. 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. 3. 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 purposes of our audit. ii. 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; iii. The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account; iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. v. On the basis of the written representations received from the directors, as on March 31, 2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2012 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 affairs of the Company as at March 31, 2012; b) in the case of the profit and loss account, loss for the year ended on that date; and c) in the case of cash flow statement, of the cash flows for the year ended on that date. For ANIKET KULKARNI & ASSOCIATES Chartered Accountants Place: Navi Mumbai, Aniket Kulkarni Date : 29th June, 2012. Proprietor Member No: 127246 Firm Registration No.: 130521W ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF EPIC ENZYMES PHARMACEUTICALS & INDUSTRIAL CHEMICALS LIMITED. ON THE YEAR ENDED 31ST MARCH 2012 In our opinion, based on the information and explanations furnished to us and such checks as we considered appropriate in the normal course of our audit, and to the best of our knowledge and belief, we further report that:- 1. Fixed Assets a) During the year, the company has not disposed off fixed assets. 2. Inventories a) In our opinion, physical verification of inventory has been conducted by the management at reasonable intervals. b) The procedure of physical verification of stocks followed by the management is reasonable and adequate in relation to size of the company and nature of its business. The company is maintaining proper record of inventory. Material discrepancy, if any, noticed on physical verification of stocks as compared to book records, have been properly dealt with in the books of account. 3. Loans & Advances a) The Company has taken unsecured loans from the Directors / firm / from the companies covered in the agister maintained under section 301 of the Companies Act, 1056. The maximum amount involved is Rs. 28.18907 lacs and the number of parties involved in such transaction during the year is four. b) In our opinion, the rate of interest and other terms and conditions on which such loans have been taken from the companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima facie prejudicial to the interest of the company. No Interest charged on this loans during the year c) The Company has not granted loan to its director & company is recovering the loan amount in time against loan receivable. d) The Company has repaid the principal amount Rs.37.54593/- as stipulated and no interest on the said loans which is due to the financial institution. e) The parties to whom loans have been granted have repaid the principal amounts as stipulated and have been regular in the payment of interest. There are no overdue amounts and in our opinion reasonable steps have been taken by the company of recovery or repayment of the principal and or interest. 4. Internal Controls In our opinion and according to the information and explanations provided to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to fixed assets. During the course of our audit, we have not observed any weakness in the internal control. 5. Transaction with Parties u/s 301 a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, that need to be entered into the register maintained under section 301 of the companies Act, 1956 have been so entered. b) In our opinion and according to explanations given to us, the transaction of purchases of goods, materials services, made in pursuance of contracts or arrangements entered in the registers maintained u/s 301. of the companies Act, 1956 and exceeding the value of Rs. Five lacs or more in respect of any party, during the year in respect of each party, have been made at prices which are reasonable having regard to prevailing market prices at the relevant times. 6. Deposits In our opinion and according to the information and explanations given to us, the company has not taken deposits within the meaning of sec. 58A and 58AA of the companies Act, 1956, and the rules framed there under. 7. Internal Audit The company presently does not have an internal audit system commensurate with its size and nature of its business. 8. Cost Records Company is not required to maintain cost records under section U/S 209(1)(d) of the companies Act, 1956. 9. Statutory Dues a) Subject to the dues referred to clause below the company has deposited with the appropriate authorities undisputed statutory dues including provident Fund. Investor Education & Protection Fund, Income Tax, Sales tax, Wealth Tax. Custom duty, excise duty & other material statutory dues applicable. b) According to the information and explanations given to us, subject to the dues shown below there are no other undisputed amounts payable in respect of the income tax, wealth tax, sales tax, custom duty and excise duty which are outstanding at 31st March, 2012 for a period of more than six months from the date they become payable. c) The unpaid statutory dues on 31st March, 2012 was as under (exceeding six months) Rs. in Lacs Professional Tax 1.01 Sales Tax 1.97 TDS Payable 27.17 Fringe Benefit Tax 2.23 10. Financial Health The accumulated loss as at 31st March, 2012 was Rs. 3461.32182 Lacs. 11. Loan/Debt servicing status In our opinion and according to the information and explanations given to us, the company has have defaulted in repayment of the dues to State Bank of India who in consequence treated the loan as NPA since 2005-2006. The dated of over dues one as under. Name of the Institute Our due amount as on 31.3.2012 (Rs. in Lacs) State Bank of India 1470.07 12. Documentation of Loans & Advances The company has not granted any loans or advances on the basis of the security by way of pledge of shares, debentures and other securities. 13. Chit Funds In our opinions and to the best of our information and according to the explanations given to us, we are of the opinions that the company is neither a chit fund nor a nidhi/mutual benefit society. Hence in our opinion, the requirements of clause 4 (xiii) of the order do not apply to the company. 14. Securities Trading In our opinions and to the best of our information and according to the explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions. 15. Guarantee given to others According to explanation given to us, Company has not given guarantee to others. 16. End use of Loan The company has not raised any additional term loans during the year. 17. Application of short term funds The company has not utilized any short term funds for long term investments. 18. Preferential allotment to related parties According to the information and explanation given to us, during the year, the company has not made preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956. 19. Debenture The company has not raised funds during the year by way of public issue or debenture issue. 20. End use of public issue During the year no public issue was made by the company. 21. Fraud Reporting According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit. For ANIKET KULKARNI & ASSOCIATES Chartered Accountants Place: Navi Mumbai, Aniket Kulkarni Date : 29th June, 2012. Proprietor Member No: 127246 Firm Registration No.: 130521W