MEGA & ASSOCIATES -288/289/206, CHARTERED ACCCOUNTANTS WADHWA COMPLEX, STREET No 10, LAXMI NAGAR, DELHI-110092 Ph:-22050208/Fax-22521404 Mob:-9811438436 INDEPENDENT AUDITORS’ REPORT To, THE MEMBERS OF INDIAN DRUGS & PHARMACEUTICALS LIMITED GURGAON, HARYANA Report on the Standalone Financial Statements We have audied the accompanying fancial statements of INDIAN DRUGS & PARRMACEUTICALS —LIMITED(‘the Company"), vnich comprise the Balance Sheet as at 21 Merch 2018, the Statement of Profit and Loss, the Cash Flow Statement forthe year then ended, {and @ summary of signifcant accountina policies and other exalanetory infomt Geservaton of SAG of India, the Audit Report dated 28" March, 2016 have been revised to the xen! of quantifying of qualiicaon(), to the extent feasible in bold & italics and inthe reporting ‘caurements under clause (vi) of the Companies (Audi's Report) Order, 2018 and Para 3b) have Ben adied under the heading Report on ather Legal and Regulatory Requirements. Furth, \e confirm that there's ro change in the true and fair view ofthe financial statomenis as expressed in ou" earier report and also none of the figures have undergone any change in the financial Satentents of the Company ae at 31st March, 2015 Management's Responsibility forthe Financial Statements The Companys Board of Directors is responsiie for the matter in section 1346) ofthe Companie ‘Ac, 2013 ("the Act’) with respect to the preparation of these standalone financial staten aM @ true and ar view of the financial postion, tinznciat pe ples Under Section 435 of the ts that formence srd cash foi of the Company in accordance withthe accounting pri Acrourting Ste aly soeepted ia India, incasng 7 of t 2014. This responsibilty also includes the mainlnznco of adequate a Com (ocounts} R ning ‘ecords in accordance withthe provision ofthe Act for saleguarding of the astts of the Company are for preventing and detocing the frauds and other inegularies; selection and appeation of Botsrprepale accounting poles; making judgments and estimates that are reasonable and prudent nd design, implementation and maintenance of adequate internal francil contol, that were cperaing effectively for ensuring the accuracy and completeness of the accounting record, relevant tothe preparation and presentation ofthe francial statements that ve a tus and far view and are ‘ree from material misstatement, whether due to fraud or err Auditor's Responsibility ur responsibilty isto express an opinion on these standalone financial stalements based on ou ‘aust of Corporate Offce , Gurgaon and Audit reports received from ether Branch Autos. The + Hlocaton of work of the Company was done by Comptroller and Auditor General of India as under. ENO, oN ‘AUDITOR “1 [CORPORATE OFFICE. GURGAON MEGA & ASSOCIATES, 2 [REGIONAL OFFICE DELAT ‘SUNIL VAY & ASSOCIATES 3 | REGIONAL OFFICE. LUCKNOW KRISHNA SHARMA .& CO 4 | REGIONAL SALES OFFICE. MUNBAT THAKUR NAIK & DEO a 5° ]ROLKATA,”” PATNA,CUTTACK ——E[SUMANTA Ee GUWANATI REGIONS (CONSOLIDATED) ‘ZONAL OFFICE HYDERABAD ‘GURGAON PLANT HYDERABAD UNIT. RISHIKESH PLANT. ‘AGARWAL & LADD RS MODI.& CO ‘ie have taken info account the provisions of the Act, the accounting and aucitng standards and Iafers hich are required to be included in the audit report under the provisions ofthe Act and {ules made there under. ‘We have conducted our audit of Corporate Office Gurgaon and the said Auditors have conducted ‘1 ofthe Regional Offices \Reglonal Sales Offices Zonal Ofice and Plants in accordance with {te Standards on Auclting speciied under secton 143(10) ofthe Act. Those Standacds require ‘rat we comply with ethical requirements and plan and perform the audit to obtain reasonable ‘assurance about whether the financial statements are free from material misstatement. fo audit involves performing procedures to obtain audit evidence about the amounts and Re. 3,97, 15.011.54 Cr, ') Marketing Division Collection Af: Rs. §,53,00,000.00 Or. ©) Marketing Division imprest Ae Rs. 71, 47,968.00 Cr. 2) Aguregate of Chime recoverable, Advance Recoverabe, Advance to cthor than Employees land Advance to Raitways/Transport amounting fo Rs 40,88,176.82 ae doubtful advances ‘and not recoverable, Therefore, provision has fo be made for the entre amount. The Company has made the provision of Rs 40, 58,470.47 as on 31st March, 2015. Had the Provision been made for the entie amount of Rs. 40, 88,175.82, the loss would have (noreased by Rs.29, 708.38 and current asset decreased by RS. 29,705.95 9 Provision for Gratuity and Leave Encashment has no! been made as those are dealt with ot Head Ofc,4) Trade Receivables includes Rs. 2.16 lac which is under CB investigation. 5) The balances of Trade Payables, Trade Recewables and Advances have remain unconfirmed. 9) (@)The balance of Trade Receivables of RO Patna as al 31.09.15 was Re. 1,86,81,053.18 Out ofthe tote trade receivables, Rs. §4,93,302.21 Is unreconaied ie. fo whom the soles wore made are not traceable. Therefore, provision has to be made forthe enti amount (©) The bolance of Advance from Customers of RO Patna as ot $102.18 was Rs. 3 14,260.60. The parties from wom tho amounts have been received as advance are not trocoable, 7) @ Shce 31 March,2012 the C & F Agent, Ranchi is nol providing the closing stock ‘Stalement and value and no transaction is being made since that dete. Whereas, the Company is considering the value of closing slock as per the Books whichis amounting to ‘Rs. 1,04 36,531.75. In absence of Statement of Stock we are unable fo ascertain the value of ‘stock and its effect ofthe same on any revenue or capita item, CBF Agont, Patna has provided the stock statement as on 31.03.2018 on current yoar transactions showing the value of closing slock of Re, 1,28,731.26 whereas, the Company ‘nas considered the closing stock valuo of Rs, 93,69,576.12 in books. It was observed that C & F Agent, Patna has not provided the stock details amounting 0 Fs.32, 40,844.86 which was the value of stock as at 31.03.2014 The total impact of above Para (2) and (6a) has resulted in, understatement of Loss for ‘he year by Rs.55,28,007.56, undorstatement of Reserves & Surplus by (Rs. 523,007.86) (Previous Year - Not Available), understatement of Long Term provisions > Rs. 85,28,007.56 (Previous Yoar - Not Available) and overstatement of Other Current Assets by Ro.28,705.35 (Previous Year - Not Available) and Trade Receivables by Rs '4,99,302.21(Previous Year - Not Availabe). REGIONAL SALES OFFICE MUMBAI 1 No provision has been made for suncly debtors and deposits account. Such account balances are outstanding for more than 10 years and without eny recovery andlor any intiatve to recover the same by the company. Thus provisinirg is warranted, non Provisioning is resulting into understatement of losses by Rs, 18,90,398% Details of respective balances are detailed below: 2). Suncry Debtors amounting Rs. 9,29,292/ 2) Sundry Deposits amounting Rs. 9,61, 006% 2. The bank reconcitation statement as on 31/03/2014 has ol difference of Rs, 4,436: 43. Account balances in te ledger Marketing Division Collection Ae, Branches namely Gurgaon, ‘yterebad, New Delhi, Jeipur, Koch, Panckula, Rishikesh accounts. are subject to Contianations and reconcittion adjustments for inter office transactions There san ol aiference in Marketing Division Adjustment Arc elated (nancial year 2011- 12) of Rs. 1,12.690.20- 4. The Regional Sales Oftce’s inventories are cared inthe Balance Shed! at Rs. 64,76,016 63/- + ut of which stock amounting fo Rs. 19,10,788.00 has been expired and has not market value. This expired stock wil be writen of after geting approval om the Heed Oitice and to that extent the foss is understated in proft and loss account, Management has not stated the ‘inventories atthe lower of cost and Not Realizable Value but has slab them at PPP Price less 20% which constitutes departure from the AS-2 (Revised) “Vauation of Inventories” ‘sued by the Institute of Chartered Accountants of nda, the result of wtich is not quantiabie The (otal impact of above Para (1a),(1b) and (4) has resulted in, understatement of Loss for the yeor by Rs.92,01,184, understatement of Resorves & Surplus by (Rs. 2,01,184) (Previous Year - Not Available), understatement of Long Term provisions by Rs. 92.01,184 (Previous Year - Not Available) and overstatement of Short Term Loan & Advances by Rs.8,61,006 (Previous Year - Not Available), Inventories by Rs 13,10,766 ‘and Trade Receivables by Rs 9,29,392 (Previous Year - Not Available). RISHIKESH PLANT 1) Closing stock is valued at Cost or NRV whichever is lower; cost of closing stock of row (materials ( calculated using computerized Price stove ledger. wes noticed that costs of ‘900ds purchased consist of purchase price paid to suppers and duties and toxes (whether ‘subsequently recoverable or nt), hance cost of closing stock of raw materials is inclusive of {ties and taxes which are subsequently to bo recovered in contravention of AS = 2 on * Valuation of inventories" issued by the Insitute of Chartered Accauntants of Indi, As ‘software cannot segregate the duties taxes from foal east, impact on praiabilty coud not be ascertained. Closing stock of fshed & semi thished goods are valued at weighted average rice 8s computad by the software used by the company while scrap is valued at cost which is ‘nol consistent with AS ~ 2 and should be valued at cost or Net Reslizabl Valve Depreciation as por Schedule 1 of the Companies Act, 2013 has not been taken into consideration,1 nthe folowing cases accounts are prepored on cash basis of accountng ®) As per Company Policy 50% of terminal gratuity and leave encashment benefit of ‘eliing employee fs withheld a secunty against non vacation of residence ‘20cammodaton at Rishikesh Township. *) Company is not charging any interest on non-payment or delayed receipt of rent for ‘accommodation, M Grant received amounting Rs. 206 Crores out of which DBT assets heve boon booked worth 5s $6.64 Lakhs and net amount of RS. 1.49 Crores has been shown as other current ability ‘ut same could not be verifies as no documents were availabe withthe company forthe V) We were ot provided wit the balance confimation of debtors and eredtors so we are unable ‘o.xpress opinion on same. V) As exfaned (0 us, Liabites and asses are classiod on tho basis of Commitment made by {he company, hence in the absence of any commitment, al abilities ond payables have boon Glasses a5 Current Liabliios and all Loan & advances have also been classifies os Short Term Losn & advances, VID Unit's carrying very old suncy debtors, advances and creditors for which provisions is made in eth books of account but neither these were written off nor is any evidence of thoir Callectionfpayment availabe withthe unit. As a result, Gross value n the balance sheet are overburdenedloverstated. CORPORATE OFFICE 1) The books of aocounts at Corporate fice have been maintained on mercantile bass excopt Incase of VRS expense and C & F agent and Service agent Commission which is accounted or on cash basis and any other obligations arising on account of subsequent enttements is ‘also accounted for as expenditure inthe year in which the claim is sete. 2) The inter unt Debit balance reflected under Other Curent Assets (liter uni) in Financial Slatemenis ot Corporate Office Rs. 54,64,03,92,.249 (Pr. Yr 4,47, 45,23209 ) have not been Property reconciled / adjusted’ Squared up at Comporate office and are subject to ‘econcitation and adjustment with balances appearing in Aurited Fieancial Statomonts of Regional Offices, Regional Seles Orces, Zonal Offices, Various , Sub Regional Offices and Plants. The inter unt adjustment account has beon squared up by “Suspense Account uring 2014-15 Rs. NIL ( Pr. Yr. RS. 305,49,782 ) for which no explanation hes eon Provided 0 us. The impact on Loss and Asses & Labillies due fo aon-econcilation of infor Unit batances is unascertainanle,9) The Financial Statemonts of Corporate Office comprising of Balance Sheet as at 31.08.2015 & the Statoment of Proft and Loss account for the year then ended along with Notes and ‘other information have net been prepared as per the “Actas under: + No disclosures under “Long Term Borrowings” have been given regarding, Curent ‘maturity, continuing default Frncipal and intorest repayment tems, number & amount of instalments due, applicable rate of interest and other sigiican and relevant ferms for Un-Secured Loans. + Under Short Term Borrowings from banks the Nature of Securty & other terms and Concions ete has not been elslosed in each case. + Ioterest accrued and due on borrowings has not been classifi’ under “Other Current abies" + Other income includes recovery of Rent, Electricity and other amounts. recoverable aro ‘ot accounted for on accrual basis bul are accounted for on cash basis. The Account of Rent from 18S is subject to Reconalition and confirmation 4) Unsecured Loan trom Others (PSU's) Rs.43,00,00,000 (Pr. Yr. Rs 43,00,00,000) and interest ‘accrued and due thereon Re 2,51,66,54,027(Pr. Yr. Rs.2.51,66,54,027) have been csclosed Under Long term Borrowings. The terms of repayment, rate of Interest and other disclosures 8 per’ Schedule Il" fo the Companies Act, 2013 have not been made. Also Interest has not ‘been provided for the current year. This has resulted in shot provision of labilty towards inforest and consequent! understatement of Loss for current year by the same emount ‘whichis unascertained, 5) The amount disclosed under “Other Long Term Liabtties s.90,03,91,673 (Pr. Yr. Rs .86,58,24,421) are un-reconcited and unconfirmed. The impact on Loss and Assets & Liabities de to non- reconcliaion and non-confimation of advance amount received from ‘Customers is unascertainabl, (6) Included in above “Other Long Term Libillies” is amount of advance for customer Rs 14,172,529 (Pr. Yr. RS14,57,62,529) which isin the nature of a short term Liabity. Furtver under the head * Advance from Customers (M)" which relates to Kabilty of NAMPA an amount oF Rs. 3,19,00,000 (Pr. Yr. RS. 3,19,00,000) has been elaimed by NAMP as intorest in the books of accounts. Due to this loss i understated by Re. 9.19,00,000 and also fiabtiies understeted by the same amount (©) Inctuded in above “Other Long Term Liabilities” is amount of Gaverament Guarantee Fee Rs. 70.07,46,898 (Pr. Yr. Rs 66,63,88,658). The, Goverment Guarantee{ce amounting 0 RS. 3,43,60.000 has been made in accounts forte current year. As por Giuse 6 of Guarani Agreement dated 315i Oc 1804 thas oan declared and agreed by te Guarantor (Goverement of nd) that thas nt received and shal nat eso any ‘ecurly oF commission from the company forgiving this guarantee so long as eny monies ‘omsin die and owing bythe company o partcpating Banks or any Keb inured by Parisipting banks on Beha ofthe company remains outstanding without prio writen Consent of patkipaing banks. In view of this provision, loss fr the curent year is overstaled by Rs. 343,60,000 and abittes on account of guarantee fee payable Rs 70,07-48,858 (Pr Yr. Re 66,63, 88,658) aro also over slate (o that extent. {© Iced in above “Other Long Term Liabilies" fs an amount cf Re 80,118,510 (Pe We Bs80,1463,510) includes an amount of Rs. 71,55 49,617 (Pr Yr. RS 7165 49,617) ‘has been deducted on account of VRS Expenditure. ‘Also an emount of Re 338.50.650(Fr. Yr. Rs. 3,38,50,659) hes been deducted on account of “Amount Uransfered to Sub. Companies”. The amount of VRS Expenditure and amount transfered {o subsidy Companies aro subject fo confmation, reconclaion and adjustment i ary, inte books of aocounts. Consequanta impact on loss and bites ofthe company due ‘o adjustment is unascertained. 9) Long Term Provisions’ of Rs.7591,086 (Pr. Ye 1,314,943) includes Provision made in urea year for Gratuity { Rs.1,86,071 Pr. Yr. 295,711) and. leave encashment of Rs LUPr. Ye. Rs. 2,82:448). These provisions have Been mado on the basis of calculation ‘made by the Company. Accordingly Provisions made for employoes benefils are not in accordance wilh Accounting Standard-15 on “Employee Benefits” issved by the Instiute of Ghavlered Accountants of Inc. Also no provision of interest payable on Gratuly, Leave encashiment and for any amounts payable (0 employees vio have opted for V.RS oft ‘scheme has boon made. The impact on Jess/ lables is unascertainable 7) Shor Term borrowings “Cash Credit accounts with Banks “of RS. 94,02,20.440(Er Ve. £7.3442,968) and ~ Interest accrued ond duo" Rs. 15,856,23042 ( Pr Ye 159856.23,642).These balance are being canied over from year io year without ony Wransoctions, Tho short term Borowings are unreconcied and uncenianed by Banks ‘norest fr the curren yoar has not been provided on these CC accounts. Ths hae rested in shart provision of laity towards interest & understatement of Loss fer current year by tho Same amount which is unescertained. Further Stato Bank of India has fled an epplcaton Detore DRT Deli for recovery oftheir duos of Rs 7,60,29,82.492 20 interest coeuated upto9 9 90.06.1992 of Rs. 29,72,45,452.08 as accrued intrest from 1.07.1992 to 08.12.2013 of Fs 730,87,37,089.54imerest accrued & de thereon of Rs. 15,38 56 23,842, (Pr. Ye. Rs. 18 38,56 23,842) The shares of APGPCL were pledged with State Bank of indie against CC LIMIT OF 800 Groves. Though the CC fmt was squared up and the account shows Det ‘balonce in books of IDPL but these shares have not been released by SB Trade payables of Rs. 7,49,69,118 (Pr. ¥r Rs 7,30,26,072) include balances transferred from Various 20's fo Corporate office. These amounts are penaing for payment and outstending ‘or many years. The amount Payable is subject fo contimation,recanciaton and adjustment, | any, inthe books of accounts, Consequential impact on loss and labities ofthe company ‘duo fo adjustment is unascertaned. “Other Liabiltios” amount of R.6,24,31,852 (Pr. Yi. Rs 7,69,30,246 ) includes various ‘amounts which are pending for payment and outstanding for more then tee years. The ‘amount payable is subject to confirmation, reconciation and adjustment, any, inthe Books ‘of secounts. Consequential impact on loss and libilties ofthe company due to adjustment is nascertaned ‘+ Included in above * Other Current labites" ere amounts payable on account of Suny \eposits received from Contractors and Others. The detail of conractors is not avelable land amounts are subject to confimmation, roconciiaton and adjustment. Consequertel ‘impact on loss and labities ofthe company duo to adjustment is ascertainable. + Included in above * Other Current Katies" are amounts payable on account of “OSL” ‘being outstanding abilties cared forward trom year to yoar without any Paymentiadustment. The deta! of labiliespartes ie not avaiable and amounts are ‘subject to confirmation, reconciliation and adjustment. Consequential impact on lass and {abies of the company due to adjustment is unascertainable. + Included in above “Other Current Habitios* are amount payable to ECPE Trust Rs 4,93,08,352 ( Pr. Ye. Rs. 4,53,21,434) being carted forward wthout any payment of ‘adjustment. As informed the emount has been paid In the past years directly though ‘bank transfer but the details are aot avila* Included in above * Other Current lait" is an amount of Rs. Debit Rs. 87,20,061 (Pr Ye R509, 151) being amount received tram Ministry of Family & Welfare against soles ‘made by Prants (oils raised im Corporate office). Tho amount is» the nature of advance ‘against sales and should have been alsclosed accordingly under Advance trom Customers. Further tho account of ministry is subject to reconciliation, confirmation and {adustment, i any, in the books of accounts. Consequential impact an loss and assets of ‘the company custo adjustment is unascerteined. * Included in above “other curent Fables” aro amounts payable on account of TOS, ‘Sonice Tox payable, Service Tax 18S which are outstanding, Further disputed statutory ‘bites are unascertained 10) The Corporate offce has nether maintained proper records offixod assets nor coried any ‘physical vertication of fixed assets. No reconaliation has been between fixed assets register {and the financial accounts; tmpact on loss and assets due to on reconciiation is not ascertainable. ‘11)Non-current Investments of Rs. 29,78,65,000 (Pr. Yr. Rs. 29,78,55 002) include investments ‘made in Unguoted Equity Shares and share application money in its bss miking subsidiary companies. No provision has been made for loss suffered on these investmonts, The impact ‘hereof on the value of investments is unascertainablo, further + Invostmont mode in 6,74,000 Unquoted Equiy Shares of its subsisery Company “Orissa Drugs & Chemical Limited” and 40,00,00,000 Unquoted Equity Shares Of IDPL(TN) LTD" and 3 Shares of "BODCL Lid” ola investment of Rs. 4,67,40,080 (Pr Yr. Rs. 67, 40,080) 210 being canied at Cost, mo provision for diminution in value ofthese investments in loss ‘making subsidiaries tas been made. Dectine in Non Current Investments . other than femporary diminution in the value of fong term investments has not been disclosed as ‘quired by Accounting Standard” Accounting for Inestments'( AS-12) issued by the ICAL The foss in our opinion ts of @ permanent nature + Included in "Non-Current lavestment’ is share application money of Rs. 25,11,14,970 (Previous Yeor Rs. 25,11,44,970) against subscription of Equly shares in joint sector Avholy timed subsieiary companios for which allotment has not been made fo IDPL. In absence of ‘nancial stotoments of the companies to whom share application money hs bean given, we ‘70 unabfo fo comment on recoverabilly othe money. The Corporate Oifce has nat provided or any fs on this account‘P)tong Term Loans and advances of Rs 1,27 92,78,238(Pr. Vr.Rs.1,24,48,67, 28)agains wth provision of RS878,918(Pr. Yr. Rs. 879,918) Nett Rs. 1,27,53:99,420 (Pr¥r Rs 1:21,90,87.211) are interst tree unsecured toans lo Subsidiary Companies and deposit wth Customers, por trust and otter advances oustanding for years witast any recovery. These ‘z0vances are subject to confimation, reconciliation and adjustment, in the books of accounts Consequential impact on loss and tabilies of the company due to adjustment is ascertained * Under “Long term Loans & Advances’, inforest ee unsecured loans of Rs. 58, 98.30,809 (Pr. Ye. Rs. $8,08,30,809) have been given to Sdbsialay Companies in Consideration of assets transfered to these Subsidiary Compenies. Those Joans are also subject (0 reconciliation, confiation and adjustment, if any, in the books of ‘ecounts. Consequential impact on toss and assets ofthe company due to adjustment ‘is unascertained, * Under ‘Long term Loans & Advances’, Advances made to Subsidiary companies Rs. £9,79,04,483 (Provious Year Rs. 63,28,92,244) are also sunject to reconciliation, Confirmation and adjustment, any, inthe books of accounts. Consequential impact an ‘Oss and assets of tne company ave fo adusimontis unascertaied + Under “Long term Loans & Advances’, Deposits with Customers, Port Trust and others Gout OF Rs.2,64,168(Pr¥.RS2,66,158)are being canied forward without any recoveryiadjustment. These advances are also subject to reconciliation, confirmation ‘2nd adjustment, it any, in the books of accounts. Consequential inpact on loss and assets ofthe company due fo adjustment is unascertoined. 19)Eolances under “Trade Receivable" outstanding for period exceeding sik months Rs. {8,78.92,126 (Pr. Yr. 7,03,46,660) includes long trade receivables al vavous regional offices, ‘now transfered fo Corporate office. Against the said trade receivables @ provision of '7520,69,982 (Pr. Yr. Rs. 20,69,982) has boon made in Books of eocount. These trade ‘receivables are long outstaneling, without any confimaion and are su 0 seconcitation ‘ond adjustment, i any, in the books of accounts. Consequential impact an loss and assots of ‘ho company due to adjustment is emascerteined.14) Short Tem Loens and advances of RS.7.08,64,649 (Pr.Yr. 6.5273,647) agains! which ‘provision for doubtul fringe Benet tax Rs, 16,68,107 and for doubttul advances 1,52,41,819 (PrYe 1,52,11,819) includes various loans and advances of Long term nature hence disclosure has not been made as required under the Ack. Also most of the said ‘advances are fong and overdvelsputed amounts outstanding for more than tree years, ln 2ur option provision agains the Unsecured advances in books of account against doubtful advance Is not adequate. Those advances are subject to confmetion, reconciliation and ‘dustment, in the books of accounts. Consequential impact on foss and labilties of the ‘company due fo adjustment is unascertained. 18) The details regarding disputed statutory dues in respect of Income tax, sales tox, Custom ily, ES!, EPF etc have not been provided and therefore, we are unable to comment as {0 {he adequacy of provision held on these accounts and impact on labities and loss are eat unascertained. The total impact of above Para (5b) has resulted in, overstatement of Loss for the ‘ear by R5.343,60,000, overstatement of Reserves & Surplus by (Rs. 2,4,60,000) (Previous Year - Not Availabe), overstatement of Other Long Term Liabilities by Rs 3.43,60,000 (Provious Year - Not Availabe). We have quantified the impact of a qualification on profitibilityoss with the ‘qualification itself and overall impact with respective Regional Offees Regional Sales Offices Zone! Office Plants and Corporate Office wherever possible. The uentiication of impact on profitably in varlous qualifications could not be quantified, ‘however overall impact on profitability! loss and Assets /Liabilites have resulted in, overstatement of Loss for the year by Re.1,08,41,395.66, overstatement of Reserves & Surplus by (Rs. 1,08,41,395.66) (Previous Year - Not Available, understatement of Fong Term provisions by Rs 2,25,10,604.34(Previous Year - Not Available) and overstatement of Long term loans and advances by Rs 2,88,412.99 (Previous Year - Not Available), Trade Receivables by Rs 1,37,10258.13 (Previous Year -Not Avallable),Other Current assets by Re §5,66,604.26 (Previous Yoar - Not Available Inventories by Rs 78,20,786 (Previous Year - Not Available) Short torm Loon & Advances by Rs 10,34.876 (Previous Year - Not Availabtejand Capital work in progress by Rs 86,667.00 (Previous Year « Not Avaliable)further overstatemont of Other Long Term Liabiliies by Rs 3,43,60,000 (Previous Year - Not Available). acQualified Opinion in our opinion and fe the best of our information and according tothe explanations given tous ‘cor fo he elects ofthe mater descbed in the Basis for Qualified Oprion paragraphs above, ie aforesaid standalone fancil statements give the Information required by the Act nthe manne © feauled and give @ tue and far ew in conformity with the accounting prnples generally {se2ePred in nd, ofthe state of affairs of the Compary as at 31st March, 2015, and its lose and ie ash flows for the year ended on that date. Emphasis of Matters, REGIONAL OFFICE LUCKNOW 1 AS slated above there are unverifes balance received from partes agoregating to Re 5426;301F- as on 31st March 2016. Since the name of parties are not available from whom the Payment have been received and the bils against which these payments have bech received cosld not be ascertained , he cassifcatin of book debts as given in Note 18 may also change % The financial statement does not elect any contingent iblty as on 318 March 2016, As elated in Para 2D of Basis of Qualified opinion and as per known demand raised by Sales Tax Nat Depariment forthe financial years from 2007-08 to FY 2010-11 aggregating to Rs 16,22, 878, neithot fhe amount have been provides in accounts nor shown as contingent liablly. We have been that all the demands are under appeal. In cur opinion the amount should be shown as Contingent fabilty nt considered as debt, Further we have come across few payments made 292inst above demand tothe depariment aggregating to Rs4, 23,626 have not been considered in accounts, We have been told that the amount has been paid by C& = agent on behall of branch and have not been claimed by them, Sine the payments have beer made on behalf and ame. the branch, amount should have been considered as current ably % Though the company is folowing mercantile. systm of accounting the cammission payable to Sale "agents and C & F agent are provided on cash basis. No computation of commission Bayabie on sales forthe year hos been prepared. Ho Head affie ccuar fr change in system of accountng ris disclosure in accounting policies was available4 SUNDRY CREDITORS AND LIABILITIES: A Wincludes Rs 8,43,100.76 outstanding and shown payable to Ministy of Health & FW The ‘amount is outstanding from past years. Rs 14.62.361.21 ls outstanding to partes shown as Curent Liably @ per Note 12 for past many years. We have been tod that partes are not claiming these amounts and pending in accounts & R713, 017.61 isthe amount of deposit» recoived from dealers on which intrest at various ‘3168 also being provided “There is no desing wih mary paras and arount is also increasing ‘The feason of non refunding of amount was explsined as amounts net claimed by parts, Interest payable on these amount is RS 14.65,105.80, The amount of interest. payable is much higher than the amount of deposi. 1 Rs31.65,012.68 is out standing as advance from customers This is also very old balan ‘fom various parties for which no old records were avaliable . No interest is provided on this ‘mount. We have been informed that he amount is not claimed by parties hence oustanding. E- Re 6.01,189.36 is claim payable There is no details avalabe ofthe parties. to. whom this amount are payable, FR 20.55.012.41 isthe advance received ffom parties, No reason has been explained forts non agjustment which we have been informed wil be done at Head Office level G- The liabilty towards salary payable is RsG7930/. where as per firancil statement, the feblity is shown of Rs11913.22 ie short shown by Rs66,025.78 which is rat reconcled fr past many years, He There is variance of Rs3,93,612.82 in sundry deblors. between balance as per General Ledger of R&4.20.13,7481- and aggregate of sub-ledgers of Rs4.24,07.36"F which is yet fo be reconciled‘The depreciation fs continued to be provided on witten down value as per Companies ‘Act 1956 instead of on the basis of ife of fixed ( Tangible) assets as required under Companies ‘Act 2013, No estimate of if of assets has been made. Since the fixed assets base is very small ‘0f Rs $3,600.62 and considering the sizeof branch , the effect will not be major on the profs osses of the branen RISHIKESH PLANT 1. VAT recoverable by Roorkee depot claimed by IDPL, Rishikesh in the VAT returns have not ‘been passed atthe time of assessment by VAT authorities hence such figures should be adjusted by Roorkee depot in thelr books as per information provided to us assessment til ‘the year 2012-13 has been completed so necessary adjustments should be made by Roorkee pot 2. Share in Central Office and marketing division expenses amounting of Rs 6.88,29,000 shown 88 expenditure ison the basis of advice from corporate office, for whict we are ntin postion to.comments upon 3. All the records at unit are being maintained under COBOL programming, The Ledger Accounts, entries etc cannot be viewed in system. We had to rely only on punt out of trail pbalance, Ledger and cash book for our audit. Maintenance of all financial transactons including accounting entries are feeded on COBOL programming sofware, iti suggested ‘that accounting system should migrated to an accounting software CORPORATE OFFICE 1) Attention is drawn to amount slated under “Reserves & Surplus, the Company has created ‘evaluation reserve of Rs.62,76,54.240 in earlier years. As per tre information made ‘available and explanation given to us, the revaluation reserve of Fs. 62,76,54,240 was {reated in pursuance of BIFR Package and for disinvestment and transfer af the same to 100% subsidiaries IDPL. (TN) Ltd; and BODC Lt; to achieve better proftabtty. In our opinion the Transfer of land is invalid since IDPL has a limited right on te leasehold land at "Muzzaffarpur, which isnot wansferable as per terms of agreement and is yel to possess any ‘ease tile in respect of land. Further We are unable to ascertain tax lability atthe time ofinvestment if consideration received is In excess of cost of acquisition but less than transfer price. 2) In the view of decision taken by Hon'ble BIFR at its meeting held on 23.01.1996 to submit a ‘modified package for revival and subsequently the directions given on 21.02.1987 to the Miristry of Chemicals & Fetlizers, Government of Inia to frm up its view in regard to the ‘company and possibly of is revival, the action of transfering the assets and ibilties to ts subsidiaries is premature. 3) The amount borrowed from the following has exceeded the limit approved by Board of Directors in its meeting held on 26.6.1982. The details are as folows Borowings | Principal amount | Inferest accrued | Total as at approves by BOD | aue on anddue Un | 31.03.2015, on2606.1992 | 31.03.2015 | reconciled | Govt | —7188,02,00,000] a: 00 | 35,86,87, 30,000] 48,07,20.55,000 India PSUete| 84 26.00.000 | 430000000) 2.51.65.54027] 2a Ee E4007 | [Bans "100,00,00,000 | —$4,02,20,440 | 75,36,56.73.842 | 16.32 56 44 282} 44) The company has not fied Income Tax Retums from Assessment year 2004-2008 to 2010-11 eich may attract penalty UIS 2718 and 271 F of. Act, 1961, amount is unascerained and Consequential impact on loss /labilties can't be ascertained, 5) The amount payable to Small & Medium Enterprises isnot ascertainable 8) The company has utilized Rs.22,46,00,000( Pr. Yr. 22.48,00,000) from VRS funds for the purposes other than for payment against VRS. The company has approached the Govt. for ‘Permission ofthe fund utlization against which the Govt. of india has sought details of VRS. fond uiizaion and the matter i stil pending 7) During the year Marketing expenses have been allocated to Gurgoan Plant Rs. 4.94,91,000(Pr Yr. 2.26 19,993) Rishikesh Plant Rs. 8,88,29,000 (Pr. Yr. 10,04,68,600) and Hyderabad Plant Rs.20,13,000 (Pi.¥rRs.24,06.758) total Rs. 14,03,33,000 (Pr.¥r. s.12.54,95,354) without any basis, hence we are unable to vey the accuracy of expenses allocated to these plants, a8) BIFR vide its order dated 04.12.2008 has confrmed its prima-tacie opinion that t would be |NSt& equitable & in pubic interest to wound up IOPL in terms of Section 20(1) of SICA. But Humble AAIFR vide order dated 29.12.2005 has set aside BIFR order and remanded an {order back to BIFR for taking futher action for rehabiltation ofthe company, As the case is Atl under BIFR, the labiies on account of interest and damages UIS 70 & 148 of Employees PF & Mise, Provision act, Sales Tax Act interest on delayed payment, abies {er nonecep of statutory forms of sales tx, wage revision, labilis to Banks for Principal and fefeest amount. amount due to Utvaknand Power Co.Ltd ifeest on non rotating ‘ivances, amount and interest payable lo CISF and other creditors are unascertsined and thus the lables and the loss to that extent remain unascerained Bl final and conclusive ‘rders are issued by BIER, HYDERABAD UNIT @) Capital work ip progress include Rs.400.39 lakhs (previous year Rs. 400.39 lak) of \Sposable capital equipments, capital stores and spares dented bythe company against \which a provision of Rs.321.06 lakhs exis in the books. This being a technical matter we 176 unable to express our opinion as regards tothe adequacy ofthe provision. ) The company i providing Depreciation on the Plant & Machinety under Straight line ‘method at rates specified by the Companies Act 2013 eventhough tne Plan &Aachinery |were notin working condition. Hence we are unable to comment on the net black of Plant & Machinery. ©) Inventories include raw materials, stores & spares, packing & fling materials ete. of R8.413.24 aks (previously Rs.413.24 lakhs) exists in the books of apcounts against which ® Provision of RS. 397.71 lak (previously Rs. 387.71 lakhs) exist inthe books, This being 2 fecnical matter we are unable to express cur opinion as regards to the adequacy ofthe Provision ‘9 The accounts have been maintained on a going concern bass, Durig the year company ‘ot a proposal of production Interest on belated payments of surcharge to APSEB for the April 1967 to Merch 1992 ‘amounting to Rs.52 lakhs and addtional charges over and above nerral tai fr the same Period amounting to Rs.1403.13 lakhs hasn't been provided inthe backs of accounts,We are unabie to comment on the closing balances as we were not provided with confirmation eters from Crecitors, Depasitors. 4) There is no valuation of inventories, Roport on other Legal and Regulatory Requirements 1. AS required by the Companies (Auditor's Report) Order, 2015 (‘the Order’) issued by the Central Government of india in tems of sub-section (11) of section 143 of the Ac, we give inthe ‘Annexure, statement on the matters specified in the paragraph 3 and 4 ofthe Ord tothe extent applicable 2 The Comptroller and Auditor-General of India has issued directions (including Sub- Directions) indicating the areas to be examined in terms of sub-section ‘5 of section 143 of ‘the Companies Act, 2013, the compliance of which is ee out in Annexure I 3. As roquired by section 143(3) ofthe Act, we report that » ° % 8 9 ® We have sought and obtained all the Information and explanations which othe best of ‘our knowledge and belief were necessary fo the purposes of ou aut Except for the effects of the matter described in the Basis for Qualified Opinion Paragraph above, In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examinaton of those books. The reports on the accounts of the branch offces of the Company audited under Section 143(8) of the Act by branch aueiters have been sent to us and have been Properly dealt by us in preparing this report ‘The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement withthe books of account Except for the effects of the matter described in the Basis for Qualified opinion Paragraph above, in our opinion, the aforesaid standalone finandal statenents comply with the Accounting Standards spectied under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 ‘The mattor described in the Basis for Qualtied Opinion parsgraph above, in our pinion, may have an adverse effect on the functioning of the Cempany. On the basis of written representations received from the diretors as on 31 March, 2018, taken on record by the Board of Directors, none ofthe directors is disqualified {5 on 31 March, 2016, trom being appointed as a siractor in tems of Section 164(2) of the Act1) The qualification relating to the maintenance of accounts and erher matters connected ‘herewith are as stated in the Bass for Qualified Opinion paragiaph above, 1) With respect tothe other matters tobe included in the Aueltor's Report in accordance with Rule 11 ofthe Companies (Audit and Aualiors) Rules, 2014, in our opinion and to the best of aur information and accorcing tothe explanations given tous The Company has disclosed the impact of pending Itgatlon on its financial Position i ts financial statements in the Notes tothe financial statements ii The Company ald not have any long:term contracts including derivatives Contracts for which there were any material foreseeable hoses; li, There were no amounts which required to be transferred to the Investor Education and Protection Fund by the Company. For MEGA & ASSOCIATES Place : Delhi Date : 31% May,2016 M.No. 91408ANNEXURE - To, THE MEMBERS OF INDIAN DRUGS & PHARMACEUTICALS LIMITED We refer fo our report on the financial statements of INDIAN DRUGS & PHARMACEUTICALS LIMITED(the Company) for the year ended March 31, 2016 issued on 28° March 2016/01" May 2016, We give hereinafter a statement onthe matters specified in paragraphs 3 and 4 of CARO 2018, This may be treated as an Annexure to our aforesaid Report on standélone financial Statements forthe year ended March 31, 2016 Ln respect ofits fixed assets 43) The Company has maintained proper records showing ful particulars including quantitative detals ‘and situation of fixed assets onthe basis of avaiable information, EXCEPT UNIT PaRTICULARS- 'as not maintained proper records shawing Tul paricuare and Corporate | including quantitative details and situation ofits fixed assets, Office | 5) AS explained to us, al the fixed assets have been physically veied by the management in @ fhased periodical manner, which in aur opinion is reasonable, having regerd tothe size of the Company and nature of its assets. No material ascrepancies were noticed on such physical verification, EXCEPT _ ~TPARTICULARS Regional Sales | The management ha | Office. Mumbai aed out the physical verifeation of fred asses As we were explained and nobced that ine asta was BhSicaly Weed by Be Management but the assets under verfication cannot be reconciled with financial books and records during the financial year Regional Office | There i n Lucknow lable if any physical verification has been conduclad | by the management during the year. Accordingly we are unable to comment Pon any discrepancy between assets physically avalale and as stated in | oct ot ecu| Rrcerabaa Unit ‘As plained 10 us, fed assels have not been physcaly veiled by Te ‘management at reasonable intervals 5 explained 10 us, Tied assets Fave not Geen physical vetted by the ‘management at reasonable intervals. Accordingly we are unable to comment pon any discrepancy between assets physically avaiable and as stated in Books of Accounts. IL in respect of ts 2) The inventories inventories: have been physically verified during the yearby the management, in our opinion, the frequency of verification i ceasonable. EXCEPT ONT ARTUR | Regions Office: |There are na records avaiable regarding The physkal veNicavon Re Delhi Inventories, Moreover he records working papers relating to inventores are not Property maintained Rishikesh Plant” |We have been informed that dae to minimal predcton and shovlage oF Sa ad Unit” |The Physical verification of laventony has not bes there is no system of monthly physical verifation of stock. Only stock lying at Production site is physically verified on 31* March every year and there is no "mechanism for physical verification of inventories lying at Central stores ‘The stock Wying at Central stores consists of Raw Materials, Packing Materials {and other store items, a number of these are obsolete. Although no physical ‘eration of od and unusable tems lying in central store was cari out during the year, the company has made a substantial tolal provision of Re, 5,08,03,9501- conde at reasonable Intervals by the management. In the absence of the same the disctopancies f ‘ny noticed later on physical verification of stock as compared to book records Femsin unadjusted forthe year under audit © nour opinion an according to the information and explanations given to us, the procedures of Physical verfeatior ‘lation tothe size of inventories followed by the management are reasonable and adequate in ofthe Company and the nature ofits business. EXCEPTJuni | PARTICULAR | eaina Offce- |The procedure Tolowed by management Tor physical venficalon of iventores Demi are not adequate fase |The Physica weiicaton of ventory has Wt boon condualed a reasonable intervals by the management. Inthe absence ofthe same the dscrepanies i ‘any natced later on physical verification of stock as conpared to book reco remain unadjusted forthe year unde aut ©) The Company has maintained proper records of inventories. As per the information and ‘planation given tous, no material discrepancies were noticed on physical verification EXCEPT oN ‘Regional Ofie:| Tie RSO We mantanng proper records of iveriovas and eed adequate eps | Dethi {0 take for maintaining proper records We are nat able to propesy very the ‘uanttes receivedissued and value of inventories. "In respect ofthe loans, secured or unsecured, granted by the Company to companies, ms or ihr parties covered inthe register maintained under Section 189 ofthe Companies Act, 2013.N.A FOR DURING THE YEAR 2) The principal amounts are repayable over varying periods upto five years, while the interest is Payable anoualy, both atthe discretion of the Company. N.A FOR DURING THE YEAR In respect ofthe said loans and interest thereon, there are no overdue amounts. N.A FOR DURING THE YEAR In our opinion and according tothe information and explanations given to us, the Company has an adequate internal control system commensurate with its size and the nature ofits business for the purchase of inventory and fxed assets and forthe sale of goods and series. During the course of our audit, we have not observed any continuing failure to correet major weaknesses in such intemal control system EXCEPT fox PARTICULARS Regional Sales | The inirnal contral system fs inadequate lo conmanaWate wih the the of REO fice Mumbai' According fo the information and explanations given to us, the Company vas not accepted any ‘4eposit from the public. Therefore, the provisions of Clause (v) of paragraph 3 ofthe CARO 2015, ‘xe not applicable tothe Company, Wi We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Ault) Rules, 2014 prescribed by the Cental Government under Section 148(1(d) of the Companies Act, 2013 and are of the opinion that, prima face, the Hescribed accounts and cost records have been maintained. We have, nowever, not made a (etalled examination of the cost records with a view to determine whether they are accurate of complete Wn respect of statutory dues: 28) According tothe records of the Company, undisputed statutory dues including Provident Fund, Employees’ State Insurance, income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been generally ‘egularly deposited with the appropriate authorties. According tothe information and explanations ‘ven to us, no undisputed amounts payable in respect ofthe aforesaid dues were oustanding as at 34,2016 fora period of more than si months fom the date of becoming payable EXCEPT [uw paricutars — | Kokata, Patna |n respect of sales Tax of Rs 6,88, 173- were in arears ay a 31™ WarchZ01S (Cuttack _& | for a period of Rs 61,85, 173 were in arrears asat 31 March,2016 fora period Guwahati of more than six months from the date they become payable. Regions (Consolidates) Undisputed amount payable respect of VAT as at 31-O32078 fore paved oF Dathi ‘move than six monthe PLACE "AMOUNT Pancha 15254.00 [Indore —yarasa.00 Raipur] sa77600 Dani ; Jammo [Jaipur 33567007 | Torar = ~ [35546600 ok| naira Regional OfFee| | tucknow A The unit as been regular in deposiing undleputed statutory dues, imcluding Provident Funds, Investor Education and Protection Fund, Employees State insurance, Income Tax, Sales Tax Wealth Tax, Service | Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it withthe appropriate authorities Except Rs. 63,890.85) due to CEGAT demand no. 1238/00.C dated 26.11.1900 to custom authority, Mumba '8(8)There were no undisputed amounts payable in respect of Provident Funds, Investor Education and protection Fund, Employees State Insurance, income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duly, excise Duty, Cees and other material statutory dues in arrears as at $31" March 2015 for a period of more than six months from the date they became payable, Except the following Statutory sues not claimed by Felevant authories for which provisions has been made in books at ‘estimated basis UP, Pollution Contiol Board ~ Rs, 5023966/- Uttrakhand Environment& Pollution Board ~ 204000). | The compiete records pertaining to assessment of Trade tax Wat were nl| avaliable at Branch for any year . Hence we are unable to comment if any {amount is outstanding for uncisputed demand regarding VAT! Sales Tax or ‘other Commercial Tax ‘AS per information and explanation given to us, the ‘lowing undisputed] ‘amounts are outstanding for a period of more than six months fom the date they became payable: i - or Gs | Re.13276 arms on account of any NT Kolkata, Patna Cuttack ‘Guwahati ) Acconting to records of company, there are no dues of income tax or sales tax or wealth tax or Service tax or duty oF customs or duty of excise or value added tax or cess have not been deposited dispute, PARTICULARS | Name ofthe] Period to which | Amount under [Forum where Statute this amount | dispute lspute is pending relates 5 J) aT[lOorsoites) | Canal Stes Ya 2008-05 Re 24530] Ra. 7 — [= eel ‘amounts payable in respect of Income tax, Service tax and Cess were outstanding as at 31 March, 2016 for @ petiod of nore than six months {om the date they become payable excepting in the following cases under SalesTaUVAT: F YEARAMOUNT INVOLVED FORUM WHERE CASE IS PENDING 2007-08 Rs1,99.356- Addnl_-— Commissioner (Appeal), | Commercial Tax 2008-10 s7.81,462.34 Dy. Commissioner see-2, (Commercial tax, LKo 2010-11(State) —Rs4,72,120- Adel Commissiorer,Appesl, Lucknow | (Central) Re4,4s,9407- ~do. ©) According tothe records ofthe Company, tere were no amounts which requiced tobe transferred {2 the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under ‘Wi The Company accumulated losses at the enc ofthe financial year are mote than fly percent of ls net worth and it has incurred cash losses during the current financial year and inthe financials) immediately preceding the financial year. i Based on our aucit procedures and according tothe information and explanations given to us, we ‘6 of the opinion that the Company has defaulted in repayment of dues tof banks and debenture holders due tothe fact that Company is in BIFR. Furth oethe Banks has not been provided in curent year. As the Company isin BIFR,the amount of interest Liuidated damages and current charges payable to Banks in un ascertained % According tothe information and explanations given to us, the Company has not given any uararoe for Loans taken by others from Banks oF Financial Inetutons except the Company has ven guarantee of Rs 6,07,00,000 to a financial institution fora loan taken by IDPL's the then Svbsidary company. Though the subsidiary has since been Wansfred and caased tobe subidary FIDPL, the security is yet tobe released %. According to the information and explanations given to us Company has nt taken any Loan, 8, During the course of our examination of the Books and records f the unit and according to the ‘formation and explanations given to us, we report that no fraud on or by te Company has been "tice or reported during the year, nor we have been informed of such case by the Management For MEGA & ASSOCIATES Chartered Accountants FRN.007541N Pace | Detn: Date “28 March,2016 21" May.2016 PARTNERDIRECTIONS UNDER SECTION 143(5) OF COMPANIES ACT 2013 FOR THE YEAR 2014-15, Directions [__Auditor’s Comment if the Company has been selected NOT APPLICABLE for disinvestment, a complete| tatus report in terms of valuatio f Assets (including, intangible 1 assets and land) and Liabilitie (Gncluding Committed & General [Reserves) may be examined] including the mode and present| ize of disinvestment process | " [Please report whether there are|NOT APPLICABLE any cases of waiver/ write off of 2 |debts/loans/interest ete., if yes| the reasons there for and the int involved. records are NOT APPLICABLE imaintained for inventories lyin | hwith “third parties & asset | 3 [received as gift from Govt. o | [other authorities. ( [A report on age-wise analysis offaNNEXURE— aL pending legal/’ arbitration case: including the reasons of pendency and existence/ effectiveness of al | 4 |monitoring "mechanism for j fexpenditure on all egal cases(foreign and local) may be 1 ven, aoFor MEGA & ASSOCIATES Chartered Accountants Date :28% March,2016/ 1% May,2016 M.No. 91408‘SUB DIRECTIONS U/S 143(5) OF THE COMPANIES ACT, 2013 FOR THE YEAR 2014-15, SNO = Land — Conveyance Whether the Company has| deed in the name of IDPL aurng clear ‘titleflease deeds for], poner es freshold and leasehold land] ¢Yeerabed Land «conveyance respectively ? the year 1994, Rishikesh Land — Forest Land on lease for 99" years expiing in 2021 If not please state the area of| frechold and leasehold for | Nt Ppicable which title lease deeds are not available” 2) CONFIRMATION OF BALANCES Whether amount of (@) Bank Yes, however as apprised by} Balances (b) “Trade | Company the same shall be done receivables (©) Trade | from 2015-16. payables (4) Loans and i advances for which third party confirmation was not made available has been reported? fi, Where such balances | ¥es, however as apprised by have been confirmed by | Company the same sll be done respective parties, whether it| from 2015-16. varies widely from the amounts reflected under respective heads in the financial statements, and if so, differences should be | DEPOsITS | | [Whether the | No, however as apprised by deposits/advances made by | Company the same shall be done the Company to the Customs | from 2015-16. __| reise tneome ren Sa(WAT) Service Tax and other] and reconciled with respective authorities 2 [ I authorities have been verified 4 EMPLOYEE BENERTTS |" [Intpener econ ay] as apprise hs sting done by be “made of information| Rishikesh Plant. In est ofthe inputs furnished to Actuary | places itis negligible. viz number of employees saverage salary retirement age and assumption made by the actuary regarding discount | rate future cost increase mortality rate ete for arriving at the provision for liability of [ retirement benefits viz Gratuity, leave encashment, post retirement benefits ete For MEGA & ASSOCIATES Chartered Accountants Place : Delhi Date : 28 March,2016/31% May,2016 ~ PARTNER M.No. 91408 arINE Ty al SS fete nr Coat ‘Shnig ntoesonboraoaurg oes d ae needa) wy —rsemeeae fern mine |= | en as | Pohveata temcnespeenedeon waco remain! | presen (PI) 2 nares orate + | Siaeee | ee feos, frcceame omnmenmnmtimmmmermeneen oe [ae] : get ye Fe elSe oaeeeergsSertasneconsarton st S18 re cae's svar hoe ptt tt acm sac nga Orca Patfeet nance ena - : in arte, | lapis foratengng amar om Facet 7 ea | ¢ | Norma [ramen ln ne ar pnea nr Peon Cait Kawa, 8) Se | Parme | — | Psa anc ‘ 2 | € Jeonengng te avant ot ne Faction Count (DFL_ terkesh Sid an sppet| Ca¥e mo amare. 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