Independent Auditor
To the Members of KAPPAC PHARMA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of KAPPAC PHARMA LIMITED which
comprise the Balance Sheet as at 31 March 2014 & the Statement of Profit and Loss and
for the year then ended, and a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Financial Statements
The Company’s 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 notified under
the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles generally accepted in
India. 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.
Auditor’s Responsibility
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 audit to obtain reasonable assurance about
whether the 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
auditor’s 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 Company’s preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control. 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.
Opinion
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:
i) in the case of the balance sheet, of the state of affairs of the Company as at 31
March 2014;
ii) in the case of the statement of profit and loss, of the profit 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2003, as amended, 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.
2. 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 by law 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 dealt with by this Report are in agreement with the books of
account .
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement comply with Accounting Standards notified under the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013.
e. On the basis of the written representations received from the directors as on March
31, 2014, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of Section 274(1)(g) of
the Act.
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For, Y. D. & Co |
|
CHARTERED ACCOUNTANTS |
|
FRN: 018846N |
| PLACE: LUDHIANA |
|
| DATE: 28.05.2014 |
|
|
CA RAKESH PURI |
|
PARTNER |
|
M. No.: 092728 |
ANNEXURE REFERRED TO IN PARAGRAPH-3 OF OUR REPORT OF EVEN DATE
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
I. The company does not have any Fixed Assets. Hence, clause (i) (a), (b) & (c) are
not applicable to the company.
II. The company does not have any inventory. Hence, clause (ii) (a), (b) & (c) are
not applicable to the Company.
III. (a) As per the information and explanation given to us, the company has not
granted any unsecured loan to any party covered in the register maintained under section
301 of the Companies Act, 1956.
Hence clause (iii)(b)(c)and (d)are not applicable.
(b) As per information and explanation given to us, the company has not taken loans
from parties covered in the register maintained under section 301 of the Companies Act,
1956. hence, clause (iii) (e) , (iii) (f) and (iii) (g) are not applicable to the company.
IV. In our opinion and according to the information and explanation given to us there
are adequate internal control procedures commensurate with the size of the Company and
nature of its business.
During the course of audit, we have not observed any continuing failure to correct
major weakness in internal controls.
V. In respect of transactions entered in the register maintained in pursuance of
Section 301 of the Companies Act 1956,
(a) To the best of our knowledge and belief and according to the information and
explanation given to us, transaction that needed into the register have been so entered.
(b) According to the information and explanations given to us, such transactions have
been made at prices, which are reasonable having regard to the prevailing market prices at
the relevant time.
VI. The company has not accepted any deposits from public within the meaning of
provisions of section 58A & Section 58 AA of the Companies Act, 1956.
VII. In our opinion the company has an adequate internal audit system commensurate with
the size and nature of its business.
VIII. As informed to us the company is not required to maintain cost accounts and
records as prescribed by Central Government under section 290 (1)(d) of the Companies Act
1956.
IX. According to the information and explanations given to us, and on the basis of our
examination of the books of accounts, the company has been regular in depositing
undisputed statutory dues including Income Tax and other statutory dues with the
appropriate authorities. There were no arrears of such dues as on 31st March,
2014 for a period of more than six months from the date they became payable.
X. The accumulated losses of the Company are not more than fifty percent of the
net worth. The company has incurred cash loss of Rs.489965/- in current financial year.
The Company has also incurred cash loss in the previous financial year.
XI. Based on our audit procedures and as per the information and explanations given by
the management, the Company has not defaulted in repayment of dues to any financial
institution, 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 a Nidhi/Mutual benefit/Society.
Therefore, clause 4(xiii) of the Companies (Audit Report) Order, 2003 is not applicable to
the company.
XIV. In our opinion the Company has maintained records of transactions and contracts in
respect of investment in shares, mutual funds and other investments and generally timely
entries have been made therein. All the shares, mutual funds and other investments held by
the companies are in its own name except to the extent of the exemption granted under
section 49 of the Companies Act, 1956.
XV. In our opinion the company has not given any guarantee for loans taken by others
from banks or financial institutions.
XVI. The Company has not raised any new term loans during the year.
XVII. On the basis of an overall examination of the Balance Sheet of the Company and
according to the information and explanations given to us, in our opinion, funds raised on
short term basis have not been used during the year for long term investment and vice
versa.
XVIII. 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 during the year.
XIX. The Company has not issued any debentures till date.
XX. The Company has not raised any money by public issue during the year.
XXI. During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted audit practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of fraud on or by the Company, noticed or reported during the year, not have we
been informed of such case by the management.
|
For, Y. D. & Co |
|
CHARTERED ACCOUNTANTS |
|
FRN: 018846N |
| PLACE: LUDHIANA |
|
| DATE: 28.05.2014 |
|
|
CA RAKESH PURI |
|
PARTNER |
|
M. No.: 092728 |
+91-9892691696
