We have audited the attached Balance Sheet of HINDUSTAN BIO SCIENCES
LTD as on 31st March'' 2012 and also the Profit & Loss Account for the
year ended on that date annexed thereon. 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
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 misstatement. 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.
As required by the Companies (Auditor''s 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 and 5 of the said Order.
Further to our comments in the Annexure referred to above'' we report
(i) We have obtained all the information and explanations'' which to the
best of our knowledge and belief were necessary for the purpose of our
(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
(iii)The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
(iv)ln our opinion'' the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the 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 31$t March'' 2012 and taken on record by the Board of
Directors'' we report that none of the directors is disqualified as on
31st 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.
(vi)in our opinion and to the best of our information and according to
the explanations given to us'' the said account 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 affairs of the
Company as at 31st March 2012; and
(b) in the case of the Profit and Loss account'' of the Loss for the
year ended on that data :
ANNEXURE TO THE AUDITORS REPORT
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 Companies Act'' 1956'' we report that.
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b) These fixed assets have been physically verified by the management
during the year and discrepancies noticed on such verification have
been proper dealt with in the books of account. In our opinion'' the
frequency of verification is reasonable having regard to the size of
the company and the nature of the assets''
c) None of the fixed assets have been revalued during the year under
ii) a) The inventory has been physically verified during the year by
the management. In our opinion'' the frequency of verification is
b) In our opinion the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) The discrepancies noticed on verification between the physical
stocks and the book records'' which are not significant'' have been
properly dealt with the books of account.
iii) The Company has granted loans'' secured or unsecured to Companies''
firms or other parties listed in the registers maintained under section
301 or from companies under the same management within the meaning of
section 370 (1 B) of the Companies Act'' 1956.
iv) In our opinion 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 the stores raw materials including
components'' plant and machinery'' equipment and other assets and with
regard to the sale of goods.
v) In our opinion and according to the information and explanations
given to us'' there were no transactions of purchase of goods and
materials and sale of goods'' materials and services'' made inpursuance
of contracts or arrangements entered in the registers maintained under
section 301 of the Companies Act'' 1956 and aggregating during the year
to Rs.50''000/- or more in respect of each party.
vi) The Company has not accepted any deposits from the public governed
by section 58A and 58AA of the Companies Act'' 1956'' and the
Companies(Acceptance of Deposits) Rules'' 1975 do not apply to this
vii) The Company does not have a formal internal audit department but
we are of the opinion that the Company''s internal control procedures
together with the internal checks conducted by the management during
the year can be considered as an adequate internal audit system
commensurate with the size and nature of its business.
viii) The Central Government has not prescribed the maintenance of Cost
records under section 209(1) (d) of the Companies Act'' 1956.
ix) a) The company is regular in depositing undisputed statutory dues
with the appropriate authorities including Income Tax'' Sales Tax''
Wealth Tax and other Statutory dues applicable to it.
b) According to the information and explanations given to us no
undisputed amounts payable by the Company in respect of income tax''
Wealth tax'' Sales tax'' Customs duty and Excise duty'' outstanding as at
31st March'' 2012 for the period of more than six months from the date
they became payable.
x) The Company had an accumilated losses of Rs. 1228697/- as at the end
of the financial year under reference. The company has not incurred any
cash losses in the financial year under reference.
xi) The company has not defaulted in repayment of its dues to financial
institutions or banks.
xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares''- debentures and other securities.
xiii) In our opinion'' the company is not a chit fund or nidhi/mutual
benefit fund/ I society. Therefore'' the provision of clause 4(xiii) of
the Companies (Auditor''s
Report) Order 2003 are not applicable to the company.
xiv) In our opinion'' the company is not dealing in or trading in
shares'' securities'' debentures and other investments.
xv) The company has not given any guarantee for loans taken by other
from banks or financial institutions.
xvi) In our opinion'' the company has not taken any term loans during
the year under review.
xvii) In our opinion'' and according to explanations and information
give to us'' funds raised on short-term basis have not been used for
long term investment and vice versa.
xviii)The company has not made any preferential allotment of shares
during the year under reference.
xix) The company has not issued any debentures.
xx) The company'' during the year'' has not raised money by public
xxi) In our opinion and according to explanations and information given
to us'' no fraud on or by the company has been noticed or reported
during the year.
For RAO & SRIDHAR
FCA Place : Hyderabad Member Ship No. 029597
Date : 24-05-2012 Firm Reg. No. 0060705