We have audited the attached Balance Sheet of M/s KAPPAC PHARMA LIMITED
as at 31st March 2012 and also the Profit & Loss Account and Cash Flow
Statement of the company for the year ended on that date annexed there
to. 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.
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 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
As required by the Companies (Auditor Report) Order, 2003 issued by the
Department of Company Affairs in terms of Section 227(4A) of the
Companies Act 1956, we give in the Annexure a statement on the matters
specified in the said order to the extent applicable.
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
2. 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
3. The Balance sheet and Profit and Loss Account dealt with by the
report are in agreement with the books of accounts.
4. In our opinion, the Profit & Loss Account and the Balance Sheet
comply with the accounting standards referred to in sub section (3C) of
section 211 of the Companies Act, 1956 subject to notes to accounts.
5. On the basis of representation received from the directors of the
company and according to the information and explanation given to us,
none of the directors of the company are prima facie as at 31st March
2012, disqualify from being appointed as directors of the Company under
clause (g) of sub section (1) of section 274 of the Companies Act,
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the statement
on accounting policies and the notes thereon, give the information
required by the Companies Act, 1956 in the manner so required, and give
a true and fair view: -
(i) In the case of Balance Sheet, of the state of affairs of the
company as at 31st March 2012.
(ii) In the case of the Profit and Loss Account, of the Loss for the
year ended on that date.
(iii) In the case of cash flow Statement, of the cash flows for the
year ended on that date.
1. The company does not have any Fixed Assets. Hence, clause (i) (a),
(b) & (c) are not applicable to the company.
2. As there is no inventory this clause is not applicable to the
3. (a) As per the information and explanation given to us, the company
has not granted any unsecured loan to any party covered in the register
maintained under section 301 of the Companies Act, 1956. Hence clause
(iii) (b)(c)and (d)are not applicable.
(b) As per information and explanation given to us, the company has not
taken loans from parties covered in the register maintained under
section 301 of the Companies Act, 1956. hence, clause (iii) (e) , (iii)
(f) and (iii) (g) are not applicable to the company.
4. 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 for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit we have not observed any
continuing failure to correct major weakness in internal controls.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act 1956,
(a) To the best of our knowledge and belief and according to the
information and explanation given to us, transaction that needed into
the register have been so entered.
(b) According to the information and explanations given to us, such
transactions have been made at prices, which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits from public within the
meaning of provisions of section 58A & Section 58 AA of the Companies
7. In our opinion the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. As informed to us the company is not required to maintain cost
accounts and records as prescribed by Central Government under section
290 (1)(d) of the Companies Act 1956.
9. According to the information and explanations given to us, and on
the basis of our examination of the books of accounts, the company has
been regular in depositing undisputed statutory dues including Income
Tax and other statutory dues with the appropriate authorities. There
were no arrears of such dues as on 31st March, 2012 for a period of
more than six months from the date they became payable.
10. The accumulated losses of the Company are not more than fifty
percent of the net worth. The company has incurred cash loss of
Rs.271609/- in current financial year. The Company has also incurred
cash loss in the previous financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to any financial institution, bank or debenture
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
13. In our opinion the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clauses (xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
14. In our opinion the Company has maintained records of transactions
and contracts in respect of investment in shares, mutual funds and
other investments and generally timely entries have been made therein.
All the shares, mutual funds and other investments held by the
companies are in its own name except to the extent of the exemption
granted under section 49 of the Companies Act, 1956.
15. In our opinion the company has not given any guarantee for loans
taken by others from banks or financial institutions.
16. The Company has not raised any new term loans during the year.
17. On the basis of an overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us,
in our opinion, funds raised on short term basis have not been used
during the year for long term investment and vice versa.
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 Act during the year.
19. The Company has not issued any debentures till date.
20. The Company has not raised any money by public issue during the
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
audit practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, not
have we been informed of such case by the management.
For, Y. D. & Co
CA RAKESH PURI
M. No.: 092728