Arch Pharmalabs
BSE: 524729 | NSE: N.A | ISIN: INE182F01017 | Pharmaceuticals
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| Auditor's Report | Year End : Mar '08 |
We have audited the attached Balance Sheet of Arch Pharmalabs Limited
as at 31st March, 2008, 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 Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit with Auditing Standards generally accepted
in India. These 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 statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in Paragraphs 4 & 5 of the said
Order.
3. Further to our statements in the Annexure referred to above, we
report that:
i. We have 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 Account as required by law have
been kept by the Company so far as appears from our examination of
those books.
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iv. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
v. On the basis of written representations received from the Directors
as on 31st March, 2008 and taken on record by the Board of Directors,
we report that none of the Directors of the company disqualified as on
31st March, 2008 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with other notes
thereon give the information required by the Companies Act, 1956 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 the affairs of
the Company as at 31st March, 2008
b. In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c. In the case of the Cash flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in the auditors report to the members of Arch
Pharmalabs Limited (the Company) for the year ended March 31,2008. We
report that:
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets.
c) Fixed Assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the Company.
2) a) During the year, the inventories have been physically verified by
the management. In our opinion, the frequency of verification is
reasonable.
b) 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 the nature of its business.
c) On the basis of our examination of the record of inventories, we are
of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of accounts.
3) a) The Company has granted loans and taken loans to and from
Companies, firms or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956.
b) The rate of interest and other terms and conditions in respect of
unsecured loans given by the Company to its employees and others, are
in our opinion, prima facie not prejudicial to the interest of the
Company.
c) In respect of such loans given by the Company, where stipulations
have been made, they have generally repaid the principal amounts as
stipulated and have been regular in payment of interest, where
applicable.
4) 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
inventories, and with regard to the sale of goods. During the course of
our audit, no major weakness has been noticed in the underlying
internal controls.
5) a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the Register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, there are transactions exceeding Rupees Five Lakhs each
which have been made at prices, which have been reasonable to the
prevailing market prices, for such goods, materials or services at the
relevant time.
6) The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
7) In our opinion and according to the explanations given to us, the
Company has an internal audit system commensurate with the size and
nature of its business.
8) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of Cost records under Section 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 with a view to
determine whether they are accurate or complete.
9) a) According to the information and explanations given to us, and on
the basis of our examination of the books of account, the Company has
been regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, income-tax, sales-tax, customs
duty and any other material statutory dues applicable to it. According
to the information and explanations given to us, no undisputed dues
payable in respect of income-tax, sales tax, customs duty and cess were
outstanding as at 31st March, 2008 or for a period of more than six
months from the date they became payable.
b) As on 31st March, 2008 according to the records of the Company, the
following are the particulars of disputed dues on account of Sales Tax,
Income Tax, Customs duty, Wealth tax, Excise duty and cess matters that
have not been deposited:
Name of Amount Forum where
the statute Rs. Lakhs dispute is Pending
Customs 9.76 Commissioner of
Customs, Chennai
10) The Company has accumulated p rofits at the end of the financial
year and has not incurred any cash losses during the financial year
ended March 31,2008 and in the preceding financial year ended March
31,2007.
11) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of its dues to any financial
Institution, bank or to debenture holders during the year.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13) The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16) The Company has obtained term loans and the same was applied for
the purpose for which the loan was taken.
17) On the basis of examination of Cash Flow statement the funds raised
on short-term basis have not been used for long term investments &
funds raised on long-term basis have not been used for short-term
investments.
18) The Company has made allotment of equity shares on exercise of
rights of conversion of Convertible Warrants by the Warrant holders,
covered in the Register maintained under section 301 of the Act, and
the price at which shares have been issued, is not prejudicial to the
interest of the Company.
19) The Company has created securities and/or charges in respect of
Secured Debentures issued.
20) The Company has issued 35,39,004 equity shares by way of Rights
Issue amounting to Rs.106.17 Crores, during the year, thereby
increasing the issued and paid- up share capital.
21) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended March 31,2008.
For M/s. NAYAK & RANE
Chartered Accountants
Sd/-
KISHORE RANE
Partner
Membership No. 100788
Place: Mumbai
Date : 28.08.2008 |
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| Source : Religare Technova | |
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