Midas Pharmasec Ltd merged Auditor Reports

MIDAS PHARMASEC LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT TO THE MEMBERS OF MIDAS PHARMASEC LIMITED (REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2010 IN COMPLIANCE WITH SECTION 227(2) OF THE COS. ACT, 1956) We have audited the attached Balance Sheet of MIDAS PHARMASEC LIMITED, as at 31st March, 2010 and the related Profit And Loss Account of the Company for the year ended on that date, annexed thereto and the Cash Flow Statement for the year ended on that date, which we have signed- under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit. We have 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 amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Statement on Companies (Auditors Report) Order, 2003 (CARO) issued by Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 of India and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: 1) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose 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 those books. 3) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. 4) 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. 5) According to the information & explanations given to us and on basis of written representation received from the Directors and taken on record by the board of directors, we report that none of the directors is disqualified as on 31s1 March, 2010 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 explanations given to us, the said financial statements together with the notes thereon and attached thereto give in the prescribed manner, the information required by the Companies Act, 1956 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 31st March, 2010; (b) In the case of the Profit and Loss Account, of the Profit for the Year Ended on that date; (c) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on the date. For B.N. SHAH & CO. Chartered Accountants B.N. SHAH (Proprietor) M.NO.30863 PLACE: Mumbai DATE : 19th April, 2010 ANNEXURES TO THE AUDITORS REPORT (Referred to in paragraph 1 of our report of even date) On the basis of such checks as we considered appropriate and in terms of the information and explanation given to us,. in our opinion: 1.(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets, if any. 1.(b) Verification of Fixed Assets is being conducted in a phased programme by the Management designed to cover all assets over a period of three years, which in our opinion is reasonable having regard to be size of the Company and the nature of assets. At the end of the year, there were no fixed assets. 1.(c) None of the Fixed Asset has been revalued during the year. 1.(d) Fixed Assets register is not maintained, since there are no fixed assets. 2.(a) As explained to us, inventories have been physically verified by the management during the year at reasonable intervals; At the end of the year, there were no inventories. 2.(b) There were trading activities to a limited extent during the year. Procedures of physical verification of the inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business. 2.(c) The Company has maintained proper records of inventories and no discrepancies were noticed on physical verification. 3.(a) The Company has not taken loans, secured or unsecured from Companies, firms or other parties listed in the register Under Section 301 of the Companies Act, 1956 or from companies under the same management as defined U/S 370 (1 B) of the Companies Act, 1956. No such register has been maintained. 3.(b) According to the information & explanation give n to us, the Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms and the other parties covered under section 301 of the Companies Act, 1956. Accordingly, paragraph (b), (c) & (d) of the Order are not applicable. 4. In our opinion and according to the information and explanations given to us, the Company has adequate internal control procedures commensurate with the size and nature of business of the Company. 5. In respect of transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956; (a) No such register has been maintained. (b) In our opinion and according to the information and explanation given to us, there are no transactions of purchases and sale of goods made in pursuance of agreement entered in register to be maintained under section - 301 of the Companies Act, 1956 in excess of Rs.5 Lakhs or more in respect of each party. 6. In our opinion and according to the information and explanation given to us, the Company .has not accepted any deposits within the meaning of Section 58A and 58AA of the Companies Act, 1956 and the rules framed there under. 7. Company had not employed any system of internal audit. 8. We are informed that the Central Government has not prescribed the maintenance of cost records U/s.209 (1) (d) of the Companies Act, 1956. 9. According to the information and explanation given to us in respect of statutory and other dues: (a) According to the information and explanation given to us and the records of the Company examined by us, in or opinion, the Company is generally regular in depositing undisputed Statutory dues like applicable income tax and MVAT. As informed to us, company is not liable to pay rest of the prescribed taxes & levies. (b) According to the information and explanation given to us, there were no undisputed amounts payable in respect of provident fund, investor education, and protection fund, employees state insurance, income tax, MVAT, wealth tax, custom duty, excise duty, cess and other material statutory dues outstanding as at 31 March, 2010 for a period of more than six months from the date they became payable. (c) Rules regarding Provident Fund, Employees State Insurance Scheme for Employees of the company, wealth tax, investor education and protection fund, are not applicable to the Company, as informed to us. 10. The Company has accumulated losses to the extent of Rs. 99.16 lacs at the end of the financial year. It has not incurred any Cash losses during the current financial year but had incurred Cash losses of RS. 12.54 lac in the immediately preceding year. 11. The Company has not taken any loans from any financial institution-nor defaulted for repayment of Bank dues and as not issued any debentures. 12. The Company has not granted any loans and advances to employees. The Company has not granted loans and advances on the basis of security by way of pledge of Shares & Debentures. 13. The provision of any Special Statute applicable to Chit Fund/Nidhi or Mutual Benefit Fund Societies is not applicable. 14. In respect of the Companys dealing in shares, securities, debentures, and other investment, we have to report that there are no transactions affected in securities division during current financial year. We also report that the company was holding the shares, securities, debentures and other investment in its own name only, if any. 15. According to the information and explanation given to us, the Company has not given any guarantees for loans taken by other from banks and financial institutions. 16. The Company has not obtained any term loan during the year. 17. As no term loans are obtained, there has been no application of the funds either for short term or long term purposes. 18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintain under Section 301 of the Companies Act, 1956 during the year. 19. The Company has not issued any Debentures and hence the question of creation of any securities does not arise. 20. The Company has not raised any money by way of Public issues during the year, and hence the question of disclosure and verification of end use of such money does not arise. 21. On the basis of our examination and according to the information and explanation given to us, no fraud, on or by the Company, was noticed or reported during the year. For B.N. SHAH & CO. Chartered Accountants B.N. SHAH (Proprietor) M.NO.30863 PLACE: Mumbai DATE : 19th April, 2010