We have audited the accompanying financial statements of RAAJ MEDISAFE
INDIA LIMITED ("the Company") which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in sub-section (5) of section 134 of the Companies Act, 2013 ("the
Act") with respect to the preparation of these financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including Accounting
Standards specified under section 133 of the Act read with Rule 7 of
the Companies (Accounts) Rule, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with
the ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers the
internal control relevant to the Company's preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the Company's
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion to the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in confirm 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, 2015;
(b) in the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial
statements:
a) Gratuity and Leave Encashment benefits are accounted for on cash
basis. In the absence of actuarial valuation it is not possible to
quantify the amount payable on this account and its effect on Profit
and Loss of the company.
b) The Fixed assets items of which residual life remains nil as on
01.04.2014, book value of these assets has been transferred to retained
earnings in accordance with the Schedule II to Companies Act/2013.
Accordingly the depreciation has been less charged by Rs. 27,80,047/-
in the Profit and Loss Statement and Loss is less computed by the same
amount.
Our opinion is not qualified / modified in respect of these matters.
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Centre! Government of India in terms of section
143 (11) of the Companies Act, 2013, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4of the Order.
2. As required by Section 143 (3) of the Companies Act, 2013 we report
that:
(a) We have sought and 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 fares it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
specified in section 133 of the Act, read with rule 7 of the Companies
(Accounts) Rules, 2014 except as otherwise stated under the "Emphasis
of Matters" paragraph above or specifically mentioned in Notes on
Accounts.
(e) No matters found during the audit which have adverse effect on the
functioning of the company except continuous generation of cash loss to
the company, which in the opinion of the board, the company will now be
able to recover gradually with the ongoing production and Sales.
(f) On the basis of the written representations received from the
directors as on 31" March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of sub-section (2) of
section 164 of the Act.
(g) In our opinion, and on the basis of audit procedures adopted, there
are adequate and effectively operational internal financial control
with regard to financial reporting of the company commensurate with the
size of the company and the nature of its business.
(h) With respect to the other matters in the Auditor's Report in
accordance with rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our information and according
to the explanations given to us:
(i) The Company does not have any pending litigations which would
impact its financial position.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material for seeable
losses. (iii) There were no amounts which were required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date for the year
ended as on 31.03.2015)
01. a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) The management at reasonable interval during the year has physically
verified Fixed Assets of the company based on phased program of
verifying all the assets over a period of three years, which in our
opinion is reasonable having regard to the size of the company and
nature of assets and business. Further, no Material discrepancies were
observed during the process of physical verification.
02. a) The Inventory/stock have been physically verified by the
Management at reasonable interval during the year and /or at close of
the year.
b) The procedure adopted by the company for verification of inventory
is in our opinion reasonable having regard to the size of the company
and nature of its current operations.
c) On the basis of our examination of the inventory records, in our
opinion the company is maintaining proper records of inventory and its
disposing off and no material discrepancies were noticed on physical
verification of inventory.
03. The company has not granted any loan, secured or unsecured to the
companies, firms and other parties cove red in the register maintained
under section 189 of the companies Act, 2013.
04. In our opinion, and according to the information and explanations
given to us there are adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory and Fixed Assets and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control systems.
05. The company has not accepted any deposits from the public and
therefore, the provisions of section 73 to 76 of the Companies Act,
2013 are not applicable. Further, the provisions of Companies
(Acceptance of deposits) Rules, 2014 and the order passed by Company
Law Board or National Company Law Tribunal and the directive issued by
the Reserve Bank of India are not applicable.
06. Based on the review of the books of accounts maintained by the
company and explanations and information provided to us, we are of the
opinion that provisions of Maintenance of cost records, under Section
148(1) of the Companies Act, 2013 read with Rule 3 to The Companies
(Cost Records and Audit) Rule 2014, are not required on the activity
being carried out by the company and accordingly the company is not
required statutorily to include cost records in its books of accounts.
07. (a) The company is regular in depositing the Undisputed Statutory
dues including Income Tax, Sales Tax, Service Tax, Excise Duty, Value
Added Tax, Cess, Customs Duty and other statutory dues with the
appropriate authorities.
(b) According to the information and explanations given to us and on
the basis of records of the company, the company does not have any
liability during the year towards Value Added Tax, Commercial Tax,
Central Excise Duty, Service Tax or any other statutory dues, which
have not been deposited on account of any dispute.
(c) There is no amount with the company which is required to be
transferred to Investor Education and Protection Fund as per the
provisions of section 205C of the Companies Act, 1956 and IEPF
(Awareness and Protection of Investors) Rules, 2001.
08. The accumulated losses of the company are more than it's Net Worth
during the period covered under audit. Also, the company has incurred
cash loss in the current financial year and in the immediately
preceding financial year.
09. According to the records of the company examined by us and the
information and explanations given to us, we are of the opinion that
the company has not defaulted in repayment of dues to any financial
institution or bank. Further, the company has not issued any Debenture
during any of the preceding years
10. According to the information and explanations given to us, the
company has not given guarantee for loan taken by others from banks and
financial institutions.
11.there cords examined by us and the information and explanations
given to us, the company during the financial year has taken a term loan
from Bank and has applied it for the purpose for which it was obtained.
12. Based up on the audit procedures performed in accordance with the
generally accepted auditing practices in India, and information and
explanations given by management, we report that no fraud on or by the
company has been notice dare ported during the year under audit.
FOR NITIN GARUD & CO.
Chartered Accountants
Place : UJJAIN
DATED : 27th May 2015
Sd/-
CA Abizer Pithewan, Partner
Membership No. 400753 |