We have audited the attached balance sheet of M/s. PRISM MEDICO AND
PHARMACY LIMITED (formerly Woolite Mercantile Company Limited) as at
31st March, 2012 the Statement of Profit and loss and also the cash
flow statement for the year ended on that date annexed thereto. 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 to 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 the 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 Reports) Order, 2003 (as
amended) 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 purposes 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, Statement of Profit and Loss and Cash flow
Statements dealt with by this report are in agreement with the books of
iv. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statements 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 the written representation received from the
Directors, as on 31st March, 2012, and taken on record by the Board of
Director, we report that none of the Director is disqualified as on
31st March, 2012 from being appointed as a Directors 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 the notes
thereon give the information as 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 Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
(b) in the case of Statement of Profit and Loss, of the Loss for the
year ended on that date.
(c) In the case of cash flow statement, of the cash flow for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBER OF PRISM MEDICO AND PHARMACY LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED 31st March, 2012.
(Formerly Woolite Mercentile Company Ltd.)
1. a. The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
b. As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c. During the year, the company has not disposed off substantial part
of fixed assets.
2. a. The management has conducted physical verification of inventory
held as stock in trade at reasonable intervals.
b. The procedure of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c. The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. As informed, the company has neither granted nor taken any loans
secured or unsecured to/from 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
give 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 inventory and fixed assets and with regard to
sale of goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control.
5. Based on the audit procedures applied by us and according to the
information and explanations provided by us the management, we are of
the opinion that there is no transaction that needs to be entered into
the register maintained under Section 301. Accordingly, the provision
of Clause v (b) of the paragraph 4 of the Order is not applicable to
6. The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Sections 58A, 58AA, or
any other relevant provision of the Companies Act, 1956 and rules made
there under. Hence, the clause (vi) of the order is not applicable.
7. The Company does not have an internal audit system. However, in our
opinion and according to the representations made by the management,
the level of operations and transactions of the Company, by itself, do
not require a formal internal audit system.
8. The Central Government has not prescribed maintenance of cost
record under Section 209(1)(d) of the Companies Act, 1956 for the
products of the Company.
9. a) According to the information and explanations given to us, in
our opinion, the company is regular in depositing undisputed statutory
dues including Provident Fund, Investors Education and Protection Fund,
Employees'' State Insurance, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess and other statutory dues to the extent as
applicable to it with the appropriate authorities except Income Tax
dues where there is delay in depositing. According to the information
and explanations given to us, no undisputed amount payables in respect
of statutory dues as aforesaid were outstanding, as at 31st March, 2012
for a period of more than six months from the date of becoming payable.
b) According to the information and explanations given to us, there are
no dues of sale tax, Income tax, customs duty, wealth tax, service tax,
excise duty and cess which have not been deposited on account of any
10. The Company has accumulated losses at the end of the financial
year. The Company has incurred cash losses during the financial year
covered by our audit also there were cash losses during the immediately
preceding financial year.
11. The Company has no borrowings from financial institutions, banks
or debenture holders.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. The Company is not a chit fund and nidhi/mutual benefit
14. The company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the Provisions of clause
(xiv) of paragraph 4 of the Order are not applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by other from bank
or financial institutions during the year.
16. The Company has not raised any term loans during the year covered
by our audit.
17. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long term
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
21. According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the course of our audit.
For R. Mahajan & Associates
M. No. 085484
Place : Mumbai
Date : 28.05.2012