Harleystreet Pharmaceuticals Ltd merged Auditor Reports

HARLEYSTREET PHARMACEUTICALS LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT To The Members of HARLEYSTREET PHARMACEUTICALS LIMITED 1) We have audited the attached Balance Sheet of M/S. HARLEYSTREET PHARMACEUTICALS LIMITED as at 31st March, 2010 and also the Profit & Loss Account of the Company for the year ended on that date and the Cash Flow Statement forthe 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) As required by the Companies (Auditors Report) Order, 2003 as amended issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we give in the annexure, a statement on the matters specified in paragraphs 4 of the said order. Further to our comments in the annexure referred to in paragraph (3) 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 purposes of our audit. 2. 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 the books. 3. The Balance Sheet, the Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account. 4. In our opinion the Balance sheet, the Profit & Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards as referred to in sub section (3C) of Section 211 of the Companies Act, 1956, as applicable. 5. Based on representations made by the directors of the company, as on 31 st March, 2010, and taken on record by the Board of Directors, we report that none of the directors of the company are, prima facie, as at 31st March, 2010, is disqualified from being appointed as directors of the company 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 explanations given to us, the accounts read with and subject to notes thereon forming part of accounts as per Schedule-16 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 affairs of the company as at 31st March, 2010 (ii) in the case of the Profit & Loss Account, of the Profit for the year ended on that date; and (iii) in the case of the Cash Flow statement, of the cash flows for the year ended on that date. For, SHAH & SHAH ASSOCIATES Chartered Accountants NIMISH B. SHAH PARTNER Place: Ahmedabad Membership No. 30102 Date : 31st May, 2010 Firm Reg. No. 113742 W ANNEXURE TO THE AUDITORS REPORT Re: HARLEYSTREET PHARMACEUTICALS LIMITED (Referred to in paragraph 3) of our report of even date) As required by the Companies (Auditors Report) (Amendment) Order, 2003 as amended issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956 and on the basis of such checks, as we considered appropriate and as per the information and explanations given to us in the course of our audit, we further state that: 1.(a) The company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) As explained to us, major parts of the fixed assets have been physically verified during the year by the management. No material discrepancy was noticed between book records and physical inventory. (c) According to the information and explanations given to us, the company has not disposed off substantial part of its fixed assets during the year. 2.(a) As explained to us, inventories including that with third parties have been physically verified at reasonable during the year by the management. (b) The procedures of physical verification of inventories followed by the management are generally 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.(a) According to information and explanations given to us, the company has not granted secured/ unsecured loans to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. (b) According to information and explanations given to us, the company has not obtained secured/ unsecured loans from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. 4. In our opinion and according to the information and explanations given to us, there are generally 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 for sale of goods and services. During the course of our audit, we have not observed any major weaknesses in the internal control system. 5.(a) According the information and explanations given to us, the particulars 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) According to the information and explanations given to us, there were no contracts or arrangements that were required to be entered into the register maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 5,00,000 or more in respect to each such party. 6. The company has not accepted any deposits from the public. 7. The company did not have any formal internal audit system during the year under review. However, in the opinion of the management, the existing internal control procedures are adequate and hence separate internal audit is not called for. 8. The Central Government has prescribed maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 for formulations manufactured by the company. We are informed that the company is in the process of installing adequate system for the same. 9.(a) According to the books of accounts examined by us and also based on representations received from the management, the company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, wealth tax, custom duty, service tax, excise duty, cess and other material statutory dues applicable to it. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth tax, Service Tax, Custom duty, excise duty and cess were in arrears as at 31 st March, 2010 for a period of more than six months from the date they became payable. (c) According to the information and explanation given to us, there are no dues of income tax, sales tax, wealth tax, Service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute. 10. The company does not have any accumulated losses as at the end of the financial year and has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year. 11. Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to bank. 12. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. 14. The company is not dealing or trading in shares, securities, debentures and other investments. However with respect to investment in shares, the same have been held by the company in its own name. 15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by other from bank or financial institutions. 16. On the basis of the records examined by us, and relying on the information compiled by the company for co-relating the funds raised to the end use of term loans, we have to state that the company has prima facie, applied the term loans for the purposes for which they were obtained. 17. In our opinion and according to the information and explanations given to us, and an overall examination of the balance sheet of the company, we report that no fund raised on short term basis have been used to finance long term investment. 18. The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956. 19. The Company did not have any outstanding debentures during the year. 20. The Company has not raised any money through public issue during the year. 21. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company was noticed or reported during the year. For, SHAH & SHAH ASSOCIATES Chartered Accountants NIMISH B. SHAH PARTNER Place: Ahmedabad Membership No. 30102 Date : 31st May, 2010 Firm Reg. No. 113742 W