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INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MARKSANS PHARMA LIMITED
We have audited the accompanying standalone financial statements of MARKSANS PHARMA LIMITED ("the company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and Cash Flow Statement for the year ended 31st March, 2015 and a summary of significant accounting policies and other explanatory information .
Management's Responsibility for the Financial Statements
The Management and Board of Directors of the company are responsible for the matters stated in Section 134 (5) of the Companies Act 2013, ('the act') with respect of the preparation of theses standalone financial statements that give a true and fair view of the financial position, financial performance and cash flow of the Company in accordance with the Accounting Standards specified under Section 133 of the Companies Act 2013, read with rule 7 of the Companies (Accounts) Rule
2014. This responsibility includes maintenance of adequate accounting records in accordance with provisions of the Act for safeguarding the assets of the Company and 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 control, 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 true and fair view and are free from material misstatement, whether due to fraud or error .
Our responsibility is to express an opinion on these financial statement based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standard and matters which are required to be included in the audit report under the provision of the Act and rules made there under.
We conducted our audit in accordance with 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 procedure to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgments, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks assessments, the auditors considers internal financial control relevant to the Company's 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 control system over financial reporting and the operating and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting polices used and the reasonableness of the accounting estimates made by Company's 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanation given to us the aforesaid standalone financial statements give the required information 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 31st March 2015;
(ii) In the case of Statement of Profit and Loss, of the Profit for the year ended on that date; and
(iii) In the case of Cash Flow Statement of the Cash Flows for the year ended on that date.
Report on the Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015, ("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 said Order.
2. As required by Section 143(3) of the Act, we further report that :
(i) 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.
(ii) 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;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(iv) In our opinion, the aforesaid financial statements comply with the applicable Accounting Standard specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rule 2014.
(v) On the basis of the written representations received from the Directors as on 31st March, 2015 and taken on record by the Board of Directors, that none of the Directors is disqualified as on 31st March, 2015 from being appointed as a Director in terms of sub–section
(2) of section 164 of the Act.
(vi) In our opinion and to the best of our information and according to the explanation given to us, we report as under with respect to the matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014.
a) The Company does not have any pending litigation which would impact its financial position.
b) 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.
c) There has not been occasion in case of the Company during the year under report to transfer any sums to the Investor Education And Protection Fund. The question of delay in transferring such sums does not arise.
1. (a) The Company is maintaining proper records showing full particulars, about its quantitative details and situation where it is located.
(b) The fixed assets are physically verified by the management according to a phased programmed designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.
2. (a) Physical verification of inventory (excluding stocks with third parties) has been conducted at reasonable intervals by the management. In respect of Inventory lying with third parties, these have substantially been confirmed by them.
(b) In our opinion, the procedures of physical verification of the inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.
(c) The Company has maintained proper records of inventory and as per the information and explanation given to us, no material discrepancies were noticed on physical verification .
3. The company has not taken/granted any loan secured or unsecured from/to companies, firm or other parties covered under register maintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations given to us, there are an adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to the sale and services. In our opinion & according to the information and explanations given to us, we have not observed any major weakness in the internal control system during the course of the audit.
5. In Our opinion and according to the information and explanations given to us, the company has not accepted any deposit from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for maintenance of cost records under sub section (1) of Section 148 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However we are neither required to carry out nor have carried out any detailed examination of such accounts and records.
7. (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Employee's State Insurance, Cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty and Cess were in arrears, as at 31–03–2015 for a period of more than 6 months from the date they became payable. The sales tax which have not been deposited on account of disputes and the forumwhere the dispute is pending are as under:
(c) According to the information and explanations given to us, there has not been any occasion of the Company during the year under report to transfer any sums to Investor Education and Protection Fund.
8. In our opinion and according to the information and explanations given to us, the accumulated losses of the Company were Rs24427.16 lacs as on 31–03–2014. The Company has earned profit of Rs6710.99.lacs during the current financial year and Net Worth of the Company is Rs.35817.78 as on 31–03–2015.
9. According to the information and explanation given to us, the Company has not defaulted in payments of dues to financial institution and bank and debenture holders.
10. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the company has given guarantee to Bank for loans taken by its Subsidiary Company the terms and conditions whereof are not prejudicial to the interest of the company.
11. According to the records of the company examined by us and as per the information and explanation given to us, the
Term Loans and Cash Credit loans availed by The company were prima facie, applied for the purpose for which the loans were obtained.
12. In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year that causes the financial statements to be materially misstated. Clause Para 4 matters listed in the Companies (Auditor's Report) Order 2015 for the year ended 31st March 2015 is not applicable to the company.
For N. K. MITTAL & ASSOCIATES
FR No. 113281W
[CA N. K. MITTAL]
M No 46785
Date : 30th May, 2015
Place : Mumbai