We have audited the attached Balance Sheet of MESSRS. PERK
PHARMACEUTICALS LIMITED, MEERUT as on 31st March 2011, and Profit &
Loss Account of the company for the year ended on that date annexed
there to & report that :-
1. As required by the Manufacturing and Other Companies (Auditor''s
Report) Order, 1988 (revised) issued by the Company law Board in terms
of Section 227 (4-A) of the Companies Act, 1956, & on the basis of such
checks of books & records of the company as we considered appropriate &
information and explanation given to us during the course of audit, we
give in the Annexure a statement on the matters specified in paragraph
4 and 5 of the said Order to the extent applicable to the Company.
2. Further to our comments referred to in paragraph (1) 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 purpose 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 and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
(d) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Significant Account Policies and other notes thereon as per Schedule -
18”, give the information required by The Companies Act, 1956, in the
manner so required & give true and fair view :
(e) On the basis of written representation received from the Directors
as on 31.03.2011and taken on record by the Board of Directors, we
report that none of the directors disqualified as on 31.03.2011 from
being appointed as director in term of Section 274(1) (g) of the
Companies Act, 1956.
i. In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011, and ii. In the case of Profit & Loss Account,
of the profit for the year ended as on that date.
To The Members M/S PERK PHARMACEUTICALS LIMITED
(Referred to in paragraph 1 of our report of even date)
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. All
assets have not been physically verified by the management during the
year but there is a regular program of verification which in our
opinion is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies with respect to book
records were noticed on such verification.
2. None of the fixed assets of the company have been revalued during
3. The stock of finished goods, stores and raw materials of the
Company have been physically verified by the management during the
year. In our opinion, the frequency of verification is reasonable.
4. In our opinion the procedure of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the same have been properly dealt with in
the books of accounts.
5. The discrepancies noticed on physical verification of stocks as
compared to book records were not material in relation to the
operations of the Company and the same have been properly dealt with in
the books of accounts.
6. In our opinion the valuation of stocks is fair and proper in
accordance with the normally accepted accounting principles and is on
the same basis as in previous year.
7. The Company has not taken any loans secured or unsecured from
Companies , Firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956, As explained to us ,
there are no Companies under the same management as defined under
section 370(1B) of the Companies Act, 1956.
8. The Company has not granted any loans secured or unsecured to
Companies , firms or other parties listed in register maintained under
section 301 of Companies Act, 1956.
9. The Company has not given advances in the nature of loans to
employees and others.
10. 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 purchase of stores, raw materials including
components , plant and machinery, equipment & other similar assets and
for the sale of goods.
11. The Company has made sale of goods and materials in aggregate in
excess of Rs. 50,000/- in pursuance of contracts or arrangements
entered with a firm listed in the register maintained u/s 301 of the
Companies Act,1956. In our opinion the rates terms and conditions of
such contracts / arrangements, sales are in normal business and prima
facie not prejudicial to the interest of the Company.
12. As explained to us the Company has a regular procedure for the
determination of unserviceable or damaged raw materials and finished
13. The Company has not accepted any deposits from the public during
the year, hence the provision of section 58A of the Companies Act, 1956
and the rules framed thereunder are not applicable to the company.
14. We are informed that there is no by-product.
15. The paid up Share Capital of the Company at the commencement of
financial year is more than Rs. 25 Lacs and the Company has an internal
audit system commensurate with its size and nature of its business.
16. Cost Records as required to be maintained under section 209 (1)
(d) of the Companies Act, 1956, have prima facie been made and
maintained by the company.
17. The Company has been regular in depositing Provident Fund and the
Employee State Insurance dues with the appropriate authorities.
18. We are informed that there are no disputed amounts payable in
respect of Income Tax, Sales Tax, Custom Duty and Excise Duty
outstanding as at 31st March, 2011 for a period of more than six months
from the date they became payable.
19. During the course of our examination of books of account carried
out in accordance with the generally accepted auditing practices, we
have not come across any personal expenses, which have been charged to
20. The Company is not a sick industrial Company within the meaning of
section 3(1)(o) of the Sick Industrial Companies (Special Provisions)
Act, 1985 (1 of 1986).
for JYOTSNA MADAN & ASSOCIATES
PLACE :Meerut B.Com., F.C.A.
DATED : This 11th day of July, 2011