To,
The Members of
M/s SHARON BIO-MEDICINE LIMITED,
Report on the Financial Statements
We have audited the accompanying financial statements of SHARON BIO-MEDICINE LTD.
("the Company"), which comprise the Balance Sheet as on 9 months for the period
ended March 31, 2016, and the Statement of Profit and Loss for the period then ended, and
a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible forthe matters
stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the
preparation of these financial statements that give a true and fair view of the financial
position and financial performance of the Company in accordance with the accounting
principles generally accepted in India, including the accounting standards specified under
Section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent;
design, implementation and maintenance of adequate internal financial controls, that are
operating effectively for ensuring the accuracy and completeness of the accounting
records, 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.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We have conducted our audit in
accordance with the Standards on Auditing specified under Section 143(10) of the Act.
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 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 financial control relevant to the Companys preparation of the
financial statements, that give a true and fair view, in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on whether the company has in place an adequate internal financial controls system
over financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by Companys Management and Board of Directors, 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 on the financial statements.
Auditors Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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 March
31, 2016 and
b. In the case of Statement of Profit & Loss, of the loss for the period ended on
that date and cash flows for the period ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and
4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and 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 it appears from our examination of those books.
c. The Balance Sheet and Statement of Profit and Loss, dealt with by this Report are in
agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the applicable
Accounting Standards specified under section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March
31,2016, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2016, from being appointed as a director in terms of Section
164(2) of the Act.
f. In our opinion and to the best of our information and according to the explanations
given to us, we report as under with respect to other matters to be included in the
Auditors report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014:
i. The Company has pending litigations on its financial position.
ii. The Company did not have any long-term contracts including derivative contracts; as
such the question of commenting on any material foreseeable losses thereon does not arise.
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For Shyam C. Agrawal & Co. Chartered Accountants |
|
Firm Registration No.110243W |
|
Sd/- |
|
Shyam C. Agrawal |
| Place : Navi Mumbai |
Proprietor |
| Date : 30/05/2016 |
Membership No. 031774 |
Annexure to the Independent Auditors Report
(Reffered to in paragraph lunderthe heading "Report on other legal and Regulatory
requirements" of our report of even date on account of SHARON BIO-MEDICINEUMITED.
(the COMPANY") forthe period ended 31st March 2016.
1) a) The Company has maintained records showing particulars, including quantitative
details and situation of fixed assets. However there are some assets where full
particulars are not maintained never the less Company is in process of updating the
records.
b) As explained to us, fixed assets have been physically verified by the management at
regular intervals; as informed to us no material discrepancies were noticed on such
verification;
2) In respect of companys inventories:
a) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the Company and nature of its business.
b) The company has maintained proper records of inventories. As explained to us, there
was no material discrepancies noticed on physical verification of inventory as compared to
the book records. The inventories which are returned by customers due to quality issues
have been written off.
3) (a) As per information furnished, the Company has not granted interest free
unsecured loans, to wholly owned subsidiary company during the year. The Maximum amount
outstanding during the year was Rs. 8.39 Lacs and the year end balance of such loan was
Rs. 8.39 Lacs and same has been written off.
(b) In our opinion, other terms and conditions on which loans have been granted to
wholly owned subsidiary company are not, prime facie, prejudicial to the interest of the
company.
(c) In the case of loans granted to wholly owned subsidiary company, where stipulation
have been made, the borrower has not been regular in repaying the principal amounts as
stipulated. However subsidiary operations have been closed due to losses during the
period.
(d) There is no overdue amount of more than Rupees One Lacs in respect of loan granted
to parties covered in the register maintained under section 189 of the companies Act, 2013
(e) As per information furnished, the Company has taken Interest Free unsecured loan
from parties covered under section 189 of the companies Act, 2013 during the year. The
Maximum amount outstanding during the year was Rs. 4057.86 Lacs and the year-end balance
of such loan was Rs. 958.09 Lacs.
(f) In our opinion, other terms and conditions on which loans have been taken from
parties covered in the register maintained under section 189 of the companies Act, 2013,
prime facie, are not prejudicial to the interest of the company.
(g) The Company has been regular in repaying the principal amount as stipulated,
wherever stipulation exists.
4) In our opinion and according to the information and explanations given to us, there
is adequate internal control system commensurate with the size of the Company and the
nature of its business, for the purchase of inventories, fixed assets and for the sale of
services. Further, on the basis of our examination of the books and records of the Company
and according to the information and explanations given to us, no major weakness has been
noticed or reported.
5) The Company has not accepted any deposits from the public covered under the
provision of section 73 to 76 of the Companies Act, 2013 and the rules made there under.
Therefore Clause 3 (v) of the Companies (Auditors Report) order 2016 is not applicable to
the company.
6) We have broadly reviewed the books of accounts maintained by the Company pursuant to
the rules prescribed by the Central Government for maintenance of cost records under
section (1) of section 148 of the Companies Act, 2013 in relation to products
manufactured, and are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a detailed examination
of the records.
7) a. According to the information and explanations given to us and based on the
records of the company examined by us undisputed statutory dues including provident fund,
employees state insurance, sales-tax, wealth tax, service tax, custom duty, excise duty,
cess have generally been regularly deposited with the appropriate authorities though there
has been a slight delay in a few cases. However in case of Statutory dues pertaining to
dividend distribution tax of Rs. 64.58 Lacs have remained outstanding for the last 2
years, never the less the company has claimed refund in subsequent years and same can be
adjusted against the refund. b. According to information and explanation given to us and
based on the records of the company examined by us there are no dues of income tax which
have not been deposited on account of any disputes.
8) Based on our Audit procedures and the information and explanation given by
management, the company has not borrowed funds from financial institutions, banks and
money raised through the issue of debentures during the period under review.
9) The company has issued 1,61,11,000 Convertible warrants of Rs.2/- each at a premium
of Rs.48/- each during the preceding previous year in two stages i.e. 67,15,400
convertible warrants issued on 30/03/2015 and 66,51,300 convertible warrants issued on
10/06/2015. Out of warrants issued at second stage, 27,44,300 convertible warrants of
Rs.2/- each is still pending for allotment. However the same is not converted into shares
due to technical reasons at NSDL.
10) Based upon the audit procedures performed and information and explanations given by
the management, we report that we have not come across any instances of fraud by the
company or any fraud on the company by its officers or employees that have been noticed or
reported during the year nor have we been informed of such a case by management.
11) Managerial remuneration has been paid or provided in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies
Act 2013.
12) The Company is not a Chit Fund Company / or Nidhi / Mutual Benefit Fund / Society.
13) All transactions with the related parties are in compliance with sections 177 and
188 of Companies Act, 2013 where applicable and the details have been disclosed in the
Financial Statements as required by the applicable accounting standards.
14) The Company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year.
15) The Company has not entered into non-cash transactions covered by Section 192 of
Companies Act, 213 with directors or persons connected with him.
16) As per information and explanation given by the management, the Company is not
required to be registered under section 45-IAof the Reserve Bank of India Act, 1934.
|
For SHYAM C. AGRAWAL & CO. |
|
Chartered Accountants |
|
Firm Registration No. 110243W |
|
Sd/- |
|
Shyam C. Agrawal |
| Place : Navi Mumbai |
Proprietor |
| Date : 30/05/2016 |
Membership No.031774 |
+91-9892691696
