We have audited the attached Balance Sheet of PHARMED LIMITED Bombay,
as at 31st March 2004, and also the Profit & Loss account 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;
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
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Company Law Board in terms of Section 227 (4 A) of the Companies
Act, 1956, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph
1. We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purposes of our
2. In our opinion, the Company has kept proper books of accounts as
required by law so far as it appears from the examination of the books.
3. The Balance Sheet and the Profit & Loss account dealt with by this
report are in agreement with the books of account.
4. In our opinion the Balance Sheet and the 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, to
the extent applicable.
5. On the basis of written representations received from the directors
as on 31.03.2004 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31.03.2004 from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
6. 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 affairs of the
Company as at 31st March 2004; and
b) In the case of Profit & Loss account, of the Profit of the Company
for the year ended as on that date.
ANNEXURE TO AUDITORS REPORT REFERRED TO IN PARAGRAPH 1 OF OUR REPORT
OF EVEN DATE.
1. In respect of its fixed assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. The fixed assets have been physically verified by the management.
In our opinion the frequency of verification is reasonable. According
to the information and explanation given to us no material
discrepancies were noticed on such verification.
c. The company has not disposed off its substantial part of fixed
assets during the year.
2. In respect of inventories
a. As explained to us inventories were physically verified by the
management at reasonable intervals.
b. In our opinion, and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of the business.
c. In our opinion, and according to the information and explanation
given to us, the company has maintained proper books of its inventories
and no material discrepancies were noticed on physical verification.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanation given to us the company
has not taken any loans from companies in which directors are
interested; The Company has not granted any loans to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act.
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 for the
sale of goods. According to the explanation given to us, there are no
failures to correct the major weaknesses observed in the internal
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 explanations given to us, transactions that needed to
be entered into the register have been so entered.
b. The company has not entered in to any transactions exceeding the
value of five lakh rupees in respect of each party and hence we are not
required to comment on such transactions.
6. As per the records and according to the information given to us,
the company has not accepted any deposits from the public. The Company
Law Board has not passed any order on the company.
7. The company did not have internal audit system for the period under
8. The provisions of section 209 (1) (d) of the Companies Act, 1956,
regarding maintenance of cost records is not applicable to the Company.
9. According to the information and explanations given to us, in
respect of statutory dues and other dues
a. The Company has been generally regular in depositing undisputed
statutory dues, with appropriate authorities during the period.
b. Disputed Sales Tax duty of Rs.3.22 lacs is pending before the
Commissioner Appeals. The company has deposited an advance of Rs 0.58
lakhs against the same.
10. There are no accumulated losses at the end of the year and hence
clause (x) of the Order is not applicable for the company;
11. Based on our audit procedures and according to the information and
explanation given by the management,
the Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
12. According to the information furnished to us and verified by us,
the company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
clause (xi) of the Order is not applicable to the company;
13. In our opinion, the company is not a Chit fund or a Nidhi/Mutual
Benefit Fund/Society. Therefore, the provisions of clause (xiii) of the
Order are not applicable to the company;
14. Based on our audit procedures and according to the information and
explanation given by the management, all investments made by the
company are held in the companys own name.
15. According to the information and explanation given by the
management, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The company has not availed any term loans for the period under
17. Since the company has not availed any loans other than loans for
purchase of Motor Vehicles during the period of audit , clause xvii is
not applicable to the company.
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.
19. The company has not issued any debentures during the year and
hence clause (xix) of the Order is not applicable to the company.
20. The company has not raised any money by way of public issue during
the year under report and hence clause (xx) of the Order is not
21. According to the information given by the Management, in the year
under audit there was a case of misappropriation of funds to the extent
of Rupees thirty thousands.
For GNANOBA & BHAT
PLACE: BANGALORE (NAVIN NAYAK K.)
DATE : 31-08-2004 PARTNER