1. We have audited the attached Balance Sheet of Kilitch Drugs (India)
Limited (the Company) as at 31st March, 2011, the Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
there to, which we have signed under reference to this report. 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.
2. We conducted our audit in accordance with the 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.
3. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
(together the Order), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act,1956
(the'' Act'') and on the basis of such checks of the books and records of
the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
Further to our comments in the Annexure referred to in paragraph 3
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 purposes of
our audit;
(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 books;
(c) The Balance Sheet Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the applicable
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(e) On the basis of written representations received from the
directors, as on 31st March ,2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March ,2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto subject to Note No 12 of
the Significant Accounting Policies give the information required by
the Act, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India.
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011
(ii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in Paragraph 3 of the
Auditor''s Report of even date to the members of Kilitch Drugs (India)
Limited)
1. The Company has maintained proper records showing full particulars,
including
Quantitative details and situation of it''s fixed assets. According to
the information and explanations given to us the fixed assets have been
physically verified by the Management at regular intervals, in our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. We were
informed that no material discrepancies between the book records and
the physical Inventory have been noticed. In our opinion and according
to the information and explanations given to us. substantial part of
fixed assets has not been disposed of by the Company during the year
under preview.
2. The inventory has been physically verified by the Management during
the year. In our opinion, the frequency of verification is reasonable.
In our opinion, the procedures 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 us business. On the basis of
our examination of the inventory records, in our opinion, the Company
is maintaining proper records of inventory. The discrepancies noticed
on physical verification of Inventory as compared to book records Here
not material and have been properly dealt with in the books of account.
3. The Company has not granted secured / unsecured loans, to any
companies, firms or other parties registered in the register maintained
under Section 301 of the Act.
4. The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties listed in the register maintained
under Section 301 of the Act.
5. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of Audit no major weakness has been notices
in the internal control system.
6. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section. In our opinion and according to the
information and explanations given to us, the transactions made in
pursuance of such contracts or arrangement and exceeding the value of
Rupees Five Lakhs in respect of any party during the year have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
7. The Company has not accepted any deposit from the Public within the
meaning and provisions of Section 58A and 58AA of the Companies Act,
1956.
8. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
9. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under Clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
10. According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing the undisputed statutory dues including
provident fund, investor education and protection fund, employees''
state insurance, income-tax, sales-tax, wealth tax, service tax,
customs duty, excise duty, and other statutory dues as applicable with
the appropriate authorities. There are no outstanding dues in respect
of the above items, which are more than six months as at the balance
sheet date.
11. The Company Has no accumulated losses as at 31st March, 2011 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
12. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank.
13. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
15. In our opinion the company is not a dealer or trader in shares,
securities, debentures and other investments.
16. In our opinion and according to the information and explanations
given to us the Company has not given guarantees for loans taken by
others from banks and other financial institutions
17. The Term Loans obtained by the Company have been applied for the
purposes for which they were obtained.
18. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
19. During the year, 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.
20. The Company has not issued any debentures during the year.
21. The Company has not raised any money by public issues during the
year.
22. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing 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, nor
have we been informed of such case by the Management.
For M/S R.N.R. Iyer and Co.,
Chartered Accountants
Firm Registration No 103786W
Rajkumar Iyer
(Proprietor)
Membership No 33964
Place : Mumbai
Date : 25th July-2011
