Shukra Pharmaceuticals Ltd Auditors Report.

To the Members of M/s. Shukra Pharmaceuticals Limited

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Shukra Pharmaceuticals Limited ("the Company"), which comprise the balance sheet as at 31st March 2018, and the statement of Profit and Loss, (statement of changes in equity) and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and profit, changes in equity and its cash flows for the year ended on that date.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. That Board of Directors is also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Other Matter

The financial statements and other financial and the elements making up the Cash Flow Statement and related disclosures is based on statements certified by the management. 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 Companies Act, 2013, we give in the Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 purposes 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, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015. e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act. f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements; ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

For B. J. Trivedi & Associates
Chartered Accountants
Firm Registration Number: 111042W
Place: Ahmedabad
Date: 22.05.2018
Sd/-
Bharat Trivedi
Proprietor
Membership No- 039595

The Annexure A referred to in our Independent Auditors Report to the members of the Company on the standalone financial statements for the year ended 31 March 2018, we report that: i) Fixed Assets [Clause 3(i)]:

a) The Company is maintaining proper records showing full particulars including quantitative details and situation of its fixed assets. Necessary records in this regard for the year under consideration are under updating.

b) All the assets have not been verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable having regard to size and the nature of its assets. No material discrepancies were noticed on such verification.

c) In reference to the title deeds of immovable properties, all documents are held in the name of the company.

ii) Inventory [Clause 3(ii)]:

a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and nature of its business.

c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii) Loan given by Company [Clause 3(iii)]:

a) The Company has granted loans, secured or unsecured to companies, firms, Limited liability partnerships or other parties to bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013 (‘the Act). In our opinion and according to the information and explanations provided to us, the terms and conditions of the grant of such loans are prima facie not prejudicial to the Companys interest.

b) The schedule of repayment of principal and payment of interest has not been stipulated for the loans granted.

c) The Principal and interest are not overdue in respect of loans granted to companies, firms or other parties listed in the register maintained under section 189 of the Companies Act, 2013 which are overdue for more than ninety days. iv) Loans to Directors and investment by Company [Clause 3(iv)]

In our opinion and according to information and explanations given to us, the Company has not granted loans, secured or unsecured to directors and has not made any investments for which provisions of section 185 and 186 of the Companies Act, 2013 will be applied.

v) Deposits [Clause 3(v)]

The company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provision of sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules,2015 with regards to the deposits accepted from the public are not applicable.

vi) Cost Records [Clause 3(vi)]

The provisions of Section 148 (1) are not applicable to the company for the FY 2017-18. For internal control purpose, company has maintained cost records for management information purpose.

vii) Statutory Dues [Clause 3(vii)]

a) During the FY 2017-18, the company was not regular in payment of statutory dues.

b) There are no disputed statutory dues payable for the year under consideration except an appeal preferred with the VAT Tribunal. As far as, contingent liabilities are concerned, company has mentioned same under note in financial statements for the period.

c) According to the records of the company, the dues outstanding on account of any dispute, are as follows:

Name of the Nature of dues statute Amount claimed Period to which the amount relates Forum where dispute is pending
Income tax Income tax Act, 1961 Penalty 1413340/- F.Y 2005-06 Commissioner (Appeals)

d) There are no amounts that are due to be transferred to the Investor Education viii) Repayment of Loans [Clause 3(viii)]

During the FY 2017-18, the company has not defaulted in repayment of loans or borrowing to a financial institution, bank and Government. ix) Utilization of IPO and further Public Offer [Clause 3(ix)] Company has not raised any moneys by way of Initial Public Offer or further public offer. x) Reporting of Fraud [Clause 3(x)]

During the year, there is neither any fraud by the company nor any fraud on the company by its officers or employees has been noticed or reported. xi) Approval of Managerial Remuneration [Clause 3(ix)] According to the information and explanations given to us and based on our examination of the records of the company, the company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197, read with Schedule V to the Act. xii) Nidhi Company [Clause 3(xii)] As the company is not a nidhi company, so this clause is not applicable to company. xiii) Related Party Transactions [Clause 3(xiii)] All the transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and details have been disclosed in note in accordance with applicable accounting standard. xiv) Private Placement or Preferential Issues [Clause 3(xiv)] During the year under consideration, the company has not made any kind of private placement or preferential issues of shares or fully or partly convertible debentures. xv) Non cash Transactions [Clause 3(xv)] During the year under consideration, company has not entered into any noncash transactions with directors or persons connected with him for which provisions of Section 192 of Companies Act, 2013 will be applied. Accordingly, the provision of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon. xvi) Register under RBI Act 1934 [Clause 3(xvi)] The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. And accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.

For B. J. Trivedi & Associates
Chartered Accountants
Firm Registration Number: 111042W
Place: Ahmedabad
Date: 22.05.2018
Sd/-
Bharat Trivedi
Proprietor
Membership No- 039595

The Annexure B referred to in our Independent Auditors Report to the members of the Company on the standalone financial statements for the year ended 31 March 2018, we report that:

REPORT ON INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SHUKRA PHARMACEUTICALS LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that

1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; 2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For B. J. Trivedi & Associates
Chartered Accountants
Firm Registration Number: 111042W
Sd/-
Bharat Trivedi
Place: Ahmedabad Proprietor
Date: 22.05.2018 Membership No- 039595