1. We have audited the attached Balance Sheet of Amrutanjan Health
Care Limited as at 31.03.2012, the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We 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 misstatements. An audit
includes examining on a test basis; evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 purposes of our
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
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report have been prepared, in
compliance with the accounting standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the Directors,
as on 31st March 2012, and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31 st March
2012 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and a 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, 2012;
ii) In the case of Profit and Loss Account, 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.
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b) The fixed assets are being physically verified by the management as
per a phased programme of verification. In our opinion, the frequency
of verification is reasonable having regard to the size of the Company
and the nature of its assets and no material discrepancies have been
noticed on such verification.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the company
and such disposal has, in our opinion, not affected the going concern
status of the company.
2) a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
b) In our opinion, the procedures of physical verification of
inventories followed by the management are generally reasonable and
adequate in relation to the size of the Company and the nature of its
c) The Company is maintaining proper records of inventory. The
discrepancies notified on verification between the physical stocks and
the book records were not material having regard to the size of the
operations of the Company.
3) a) The Company has granted unsecured loans, to two companies covered
in the register maintained under Section 301 of the Companies Act,
1956, of which one loan was repaid during the year. The amount
outstanding at the year end is Rs. 18,48,91,501/- and maximum amount
outstanding during the year was Rs. 19,69,45,699/-
b) The terms and conditions of the loans given by the Company, are
prima facie not prejudicial to the interest of the company.
c) There is no stipulation as to repayment of principal and for payment
d) Not Applicable.
e) The company has taken an unsecured loan from a company covered in
the register maintained under Section 301 of the Companies Act, 1956.
The amount outstanding at the year end is Rs. 1,97,82,392/- and maximum
amount outstanding during the year was 12,64,25,824/-
f) The rate of interest and other terms and conditions are prima facie
not prejudicial to the interest of the company.
g) There is no stipulation as to repayment of principal and the company
has been regular in payment of interest.
4) In ouropinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchases of inventory and fixed assets and
for the sale of goods and services. During the course of our audit, we
have not observed any major weakness in the internal controls.
5) According to the information and explanations given to us, we are of
the opinion that the contracts or arrangements that need to be entered
in the register required to be maintained under Section 301 of the
Companies Act, 1956 have been so entered. Sub-clause (b) is not
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA or any other relevant
provisions of the Act.
7) The Company has an internal audit system, which in our opinion, is
commensurate with the size and the nature of its business.
8) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by Central Government for the
maintenance of cost records u/s 209(1 )(d) of the Companies Act, 1956
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.
9) a) According to the information and explanations given to us the
company is generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, investor education
and protection fund, income tax, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other statutory dues with the
appropriate authorities. No undisputed amount payable in respect of
income tax, wealth tax, service tax, sales tax, customs duty and excise
duty were outstanding, at the year end for a period of more than six
months from the date they became payable.
b) According to the information and explanations given to us, details
of dues of income tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess, which have not been deposited on account of
any dispute are given below:
Statute Nature Amount Period Forum where
of Rs. dispute is
Central Excise 8,89,155 2000-2001 CESTAT
Excise Act Duty
Income Income 64,53,470 2007-2008 CIT
Tax Act Tax (Appeals)
Income Income 36,40,000 2009-2010 CIT
Tax Act Tax (Appeals)
10) The Company does not have any accumulated losses at the end of
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately proceeding financial
11) In our opinion, and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution I bank.
12) As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13) In our opinion and according to the information and explanations
given to us, the nature of the activities of the company does not
attract any special statute applicable to the chit fund and
nidhi/mutual benefit fund/societies.
14) The Company is not dealing in or trading in shares, securities,
debentures and other investments.
15) There are no guarantees outstanding as at the year end that are
given by the company for loans taken by subsidiary company from bank.
16) In our opinion and according to the information and explanations
given to us and on an overall examination, the term loans have been
applied for the purpose for which they were obtained,
17) On the basis of an overall examination of the financial statements
of the Company, in our opinion, and according to the information and
explanation given to us, no funds raised on short-term basis have been
used for long-term investment.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19) The Company has not issued any debentures during the year.
20) The Company has not raised any money through a public issue during
21) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have not come across any instance of fraud
on or by the company, noticed or reported during the year, nor have we
been informed of such case by the Management.
For P.S.SUBRAMANIA IYER & CO.,
Firm Registration No: 004104S
Place: Hyderabad Partner
Date: 30.05.2012 Membership No: 200330