Sangam Health Care Products Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2024

We have audited the accompanying standalone financial statements of
Sangam Health Care Products Limited, which comprise the Balance Sheet
as at 31^st March, 2024, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and the
Statement of Cash Flows for the year ended on that date, and a summary of
the significant accounting policies and other explanatory information
(hereinafter referred to as “the standalone financial statements”).

In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements give
the information required by the Companies Act, 2013 (“the Act”) in the
manner so required and give a true and fair view in conformity with the
Indian Accounting Standards prescribed under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, (“Ind AS”) and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2024, the Profit
and total comprehensive income, changes in equity and its cash flows for the
year ended on that date.

Basis for opinion

We conducted our audit of the standalone financial statements in accordance
with the Standards on Auditing specified under section 143(10) of the Act
(SAs). Our responsibilities under those Standards are further described in the
Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India (ICAI) together with the independence requirements that
are relevant to our audit of the standalone financial statements under the
provisions of the Act and the Rules made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and
the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were
of most significance in our audit of the standalone financial statements of the
current period. These matters were addressed in the context of our audit of
the standalone financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

Information Other than the Standalone Financial Statements and
Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the
other information. The other information comprises the information included
in the Management Discussion and Analysis, Board’s Report including
Annexures to Board’s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s Information, but does not include the
standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our
responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the standalone
financial statements or our knowledge obtained during the course of our
audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in
section 134(5) of the Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and
cash flows of the Company in accordance with the Ind AS and other
accounting principles generally accepted in India. This responsibility also
includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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 standalone
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible
for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative
but to do so.

The Board of Directors are responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements

Our objectives are to obtain reasonable assurance about whether the
standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone financial
statements.

As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
controls.

• Obtain an understanding of internal financial controls relevant to the
audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Company has adequate internal
financial controls system in place and the operating effectiveness of such
controls.

• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.

• Conclude on the appropriateness of management’s use of the going
concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the
standalone financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s However, future events or
conditions may cause the Company to cease to continue as a going
concern.

• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the
standalone financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial
statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we
identify during our audit.

We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable,
related safeguards.

From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the
standalone financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”)
issued by the Central Government in terms of Section 143(11) of the Act,
we give in “Annexure- A” a statement on the matters specified in
paragraphs 3 and 4 of the order.

2. As required by Section 143(3) of the Act, based on our audit 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 far as it appears from our examination of those
books.

c) The Balance Sheet, the Statement of Profit and Loss including Other
Comprehensive Income, Statement of Changes in Equity and the
Statement of Cash Flow dealt with by this Report are in agreement with
the relevant books of account.

d) In our opinion, the aforesaid standalone financial statements comply
with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors
as on March 31, 2024 taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2024 from being
appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in “Annexure- B”.

g) With respect to the other matters to be included 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 on its financial
position in its standalone financial Statements.

ii. The Company has made provision, as required under the
applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative
contracts.

iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.

iv. A) The management has represented that, to the best of its
knowledge and belief, no funds (which are material either

individually or in the aggregate) have been advanced or loaned or
invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other
person or entity, including foreign entity (“Intermediaries”), with
the understanding, whether recorded in writing or otherwise, that
the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

B) The management has represented that, to the best of its
knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the
company from any person or entity, including foreign entity with
the understanding, whether recorded in writing or otherwise, that
the company shall, whether directly or indirectly, lend or invest
in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding party(“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

v. The company has neither declared nor paid any dividend during
the year as per Section 123 of the Act.

vi. Based on our examination, which included test checks, the
Company has used accounting software’s for maintaining its
books of account for the financial year ended March 31, 2024,
which has a feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all relevant
transactions recorded in the software’s. Further, during the
course of our audit we did not come across any instance of the
audit trail feature being tampered with.

vii. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014
is applicable from April 1, 2023, reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 on preservation of
audit trail as per the statutory requirements for record retention
is not applicable for the financial year ended March 31, 2024.

For M M Reddy & Co.,

Chartered Accountants

Firm Reg No. 010371S

M Madhusudhana Reddy

Date: 17-07-2024 Partner

Place: Hyderabad Membership No: 213077

UDIN: 24213077BKBHGI3924

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Mar 31, 2013

1. We have audited the accompanying financial statements of SANGAM HEALTH CARE PRODUCTS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management''s Responsibility for the Financial Statements

2. The Company''s Management is responsible for 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 Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 of India ("the Act"). This responsibility includes the design, implementation and maintenance of internal control 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

3. Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that 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

4. 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 auditors'' 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 auditors consider 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 indudes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, and to the best of our information and according to the explanations given m us, the accompanying financial statements 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:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2013;

(b) in the case of the Statement of Profit and Loss, of the Loss for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by''the Companies (Auditor''s Report) Order, 2003'', as amended by the ''Companies (Auditors'' Report) (amendment) Order, 2004'', issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, (hereinafter referred to as the "Order"), 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 given in the Annexure as statement on the matters specified in paragraph 4 and 5 of the Order.

8. As required by Section 227(3) of the Act, 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 purpose 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, Statement of Profit and Loss, and Cash Flow dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this report comply with the 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 March 31,2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

ANNEXURE TO THE AUDITORS'' REPORT

Referred to in paragraph 7 of the Auditor'' s Report of even date to the members of Sangam Health Care Products Limited on the financial statements as of and for the year ended March 31,2013.

i a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

b) These fixed assets have been physically verified by the Management at reasonable intervals. In our opinion, the interval is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c) In our opinion, and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed off by the Company during the year.

d) During the year 2006-07 the land has been revalued at its current replacement value on the basis of a valuation made by h^s. Teccons & Co., Chartered Engineers and approved valuers amounting to Rs.7.70 crores is shown as addition to land in the Fixed Assets and shown as revaluation reserve under Reserves & Surplus. ii a) Physical verification of inventory has been conducted at reasonable intervals by the Management.

b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) 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 were not material.

iii a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act Accordingly clauses 4(iii) (b) to (d) of the said order are not applicable to the Company.

b) The Company has taken interest fee unsecured loans, from body corporate and other parties covered in the register maintained under section 301 of the companies Act, 1956 amounting to Rs.299.67 Lakhs (Balance due as at the year ended Rs 1432.70 Lakhs)and

c) In our opinion, the terms and conditions on which loans have been taken by the company, secured or unsecured, are not prima facie prejudicial to the interest of the company.

iv) In our opinion, and according to the information and explanations given tons, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods. During the course of our audit, we have not observed any major weakness in such internal control system.

v) According to the information and explanations given to us, there have been no contracts or arrangements that need to be entered in the register maintained under Section 301 of the Act, 1956.

vi) In our opinion and according to the information and explanations given to us the company has not accepted deposits from public within the meaning of section 5&A and 58AA of the Act and the rules framed there under.

vii) In our opinion, the company has an internal audit system commensurate with the size of the Company and nature of its business.

viii) We have Broadly reviewed the cost records maintained by the company pursuant to companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(l)(d) of the Companies Act ,1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix) a) 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 undisputed statutory dues, including provident fond, Employees'' state insurance, Income Tax, Sales tax, Wealth Tax, Service Tax, Customs Duty, Excise duty, Cess and other material statutory dues applicable, with the appropriate authorities.

b) As at 31st March, 2013, according to the records of the company and the information and explanations given to us, the following are the particulars of dues on account of Value Added Tax, wealth tax, service tax, customs duty, excise duty and cess matters that have not been deposited on account of any dispute:

Nature of Nature of Amount Period Forum where Statute dues (Rs. in lakhs) to which pending the amount relates

Income Tax Minimum 22.15 FY 2004-05 Income Tax Laws (Alternate Tribunal, Tax (MAT) Hyderabad.

x) In our opinion accumulated losses of the Company at the end of the accounting year are more than Fifty percent of its networth. Further, the Company has incurred cash losses during the current financial year amounting to Rs.36,92,56,542/- and has not incurred cash losses in the immediately preceding financial year.

xi) Based on our verification and according to the information and explanations given to us by the management, the Company has defaulted in repayment of dues of Rs.31.13 Crores to banks.

xii) The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the provisions of Clause 4 (xiii) of the Order are not applicable to the Company.

xiii) As the provisions of any special statute applicable to Chit Fund/ Nidhi/Mutual Benefit Fund/Societies are not applicable to the Company, the provisions of Clause 4 (xiii) of the Order are not applicable to the Company.

xxv) In our Opinion and according to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of Clause 4{xiv) of the Order are not applicable to the Company.

xv) In our opinion, and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. Accordingly, the provisions of Clause 4 (xv) of the Order are not applicable to the Company.

xvi) The Company has not raised any term loans. Accordingly, the provisions of Clause 4 (xvi) of the Order are not applicable to the Company.

xvii) The Company as not raised any loans on short term basis. Accordingly, the provisions of Clause 4 (xvii) of the Order are not applicable to the Company.

xviii) 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 during the year. Accordingly, the provisions of Clause 4 (xviii) of the Order are not applicable to the Company.

xix) The Company has not issued any debentures during the year and does not have any debentures outstanding as at the beginning of the year and at the year end. Accordingly, the provisions of Clause 4 (xix) of the Order are not applicable to the Company.

xx) The company has not raised any money by way of public issues during the year. Accordingly, the provisions of Clause 4 (xx) of the Order is not applicable to the Company.

xxi) 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 material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

For Jayant & Sadashiv Chartered Accountants Firm Reg. No: 001297S

Jayant Palnitkar Partner Membership No.20851 Place: Hyderabad Date: 30.08.2013

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Mar 31, 2012

1. We have audited the attached Balance Sheet of SANGAM HEALTH CARE PRODUCTS LIMITED, Hyderabad - 500 003 as at 31st March 2012 and the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date. 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 have 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 from any 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 and amended by the Companies (Auditors' Report) (Amendment) Order 2004 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.

4. Further to our comments in the Annexure referred to 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 purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company, so far as it appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss Account 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 Account and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representation received from the directors of the Company as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 on the said date.

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon particularly notes under Accounting Standard 13 and Accounting Standard 30 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;

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2012;

(ii) In the case of the Statement of Profit and Loss, of the Profit of the Company for the year ended on that date; and

(iii) In the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 3 of our report of even date)

1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets

b) The company has a phased programme of physical verification of fixed assets which in our opinion is reasonable having regard to the size of the Company and nature of its business. No discrepancies were noticed on such verification.

1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b) Fixed Assets are physically verified by the management at reasonable intervals. In our opinion, the interval is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not effected the going concern status of the Company.

d) During the year 2006-07 the land has been revalued at its current replacement value on the basis of a valuation made by M/s. Teccons & Co., Chartered Engineers and approved valuers amounting to Rs.7.70 crores is shown as addition to land in the Fixed Assets and shown as revaluation reserve under Reserves & Surplus.

2. a) As explained to us, the inventory were physically verified during the year by the management at reasonable intervals.

b) In our opinion and according to the information and explanations 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 its business.

c) In our opinion and according to the information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

3) a) The company has not granted any loans to companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly clauses 4(iii) (b) to (d) of the companies (Auditor's Report) Order, 2003 are not applicable.

b) The Company has taken interest free unsecured loans from body corporate and other parties covered in the register maintained under section 301 of the companies Act, 1956 amounting to Rs.3.66 Crores (Balance due as at the year ended Rs 10.27 Crores; and

c) In our opinion, the terms and conditions on which loans have been taken by the company, secured or unsecured, are not prima facie prejudicial to the interest of the company.

4) 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 with regard to purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

5) a) Based on the audit procedures applied by us and according to the information and explanation provided by the management, we are of the opinion, that there were no such contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under that section 301 have been so entered.

b) According to the information and explanations given to us there were no transactions during the year, exceeding rupees Five Lakhs in value, that need to be entered in the register to be maintained under Section 301 of the Companies Act, 1956.

6) In our opinion and according to the information and explanations given to us the company has not accepted deposits from public and hence, the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Companies Act, 1956 and the rules framed there under, are not applicable to the Company.

7) In our opinion, the company has an internal audit system commensurate with the size of the Company and nature of its business.

8) We have Broadly reviewed the cost records maintained by the company pursuant to companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(l)(d) of the Companies Act ,1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9) a) According to the information and explanations given to us and according to the books and records as produced and examined by us, in our opinion, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, ESI, Income Tax, Sales tax, Wealth Tax, Service Tax, Customs Duty, Excise duty, Cess and other statutory dues applicable by it.

b) As at 31st March, 2012, according to the records of the company and the information and explanations given to us, the following are the particulars of dues on account of sales-tax, wealth tax, service tax, customs duty, excise duty and cess matters that have not been deposited on account of any dispute:

Nature of Nature of Amount Period to which Statute dues (Rs.in lakhs) the amount relates

Income Tax Minimum 22.15 FY 2004-05 Alternate Tax (MAT)

Nature of Statute Forum where pending

Income Tax Income Tax Tribunal, Hyderabad.

10) In our opinion accumulated losses of the Company are less than Fifty percent of its net worth. The Company has not incurred cash losses during the current financial year and the immediately preceding Financial Year.

11) Based on our verification and according to the information and explanations given to us by the management, the Company has not defaulted in repayment of dues to any financial institutions or banks.

12) Based on our examination and according to the information and explanations given to us,the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

13) The Company is not a chit/ Nidhi /Mutual Benefit fund/Society and as such this clause of the order is not applicable.

14) In our Opinion and according to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments. Accordingly the provisions of Clause 4(xiv) of the companies (Auditors' Report) Order, 2003 are not applicable to the Company.

15) According to the information and explanations given to us and the representation made by the management, the company has not given any guarantee for loans taken by others from banks or financial institutions.

16) On the basis of information and explanation given to us, the company has not obtained any term loans, accordingly, the provisions of Clause 4(xvi) of the Order are not applicable to the company.

17) In our opinion and as per the explanations and information given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

18) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, in our opinion, there are no funds raised on short term basis which have been used for long term investments.

19) According to the information and explanations given to us, the Company has not issued any debentures and therefore, the provisions of paragraph 4 (xix) of the Order are not applicable to the company.

20) The company has not raised any money by way of public issues during the year and therefore paragraph 4 (xx) of the Order is not applicable.

21) Based upon the audit procedures performed and according to the information and explanations given to us by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit

For Jayant & Sadashiv Chartered Accountants Firm Reg. No: 001297S

Jayant Palnitkar Place: Hyderabad Partner Date : 31.08.2012 Membership No.20851

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Mar 31, 2011

1. We have audited the attached Balance Sheet of SANGAM HEALTH CARE PRODUCTS LIMITED ('die Company') as at 31st March 2011 and also the Profit and Loss Account and the Cash Flow Statement of the Company 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.

2. 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 our opinion.

3. As required by die Companies (Auditor's Report) 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 die said order.

4. 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 purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company, so far as it appears from our examination of those books;

c) The Balance Sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with die books of accounts;

d) In our opinion, the Balance Sheet, the Profit and Loss Account and die Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of die Companies Act, 1956;

e) On die basis of the written representation received from the directors and taken on record by the Board of Directors, we report that 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 Companies Act, 1956;

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read in conjunction with the Schedules annexed therewith 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;

(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 of the Company for the year ended on that date; and

(iii) In the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS'REPORT

Annexure referred to in paragraph 3 of the Auditors' Report to the members of SANGAM HEALTH CARE PRODUCTS LIMITED on the accounts for the year ended 31st March 2011.

1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets

b) The company has a phased programme of physical verification of fixed assets which in our opinion is reasonable having regard to the size of the Company and nature of its business. No discrepancies were noticed on such verification.

c) During the year the company has not disposed off any part of Plant and Machinery that would affect die going concern status of the Company.

d) During the year 2006-07 the land has been revalued at its current replacement value on the basis of a valuation made by M/s. Teccons & Co., Chartered Engineers and approved values amounting to Rs.7.70 crores is shown as addition to land in the Fixed Assets and shown as revaluation reserve under Reserves & Surplus.

2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories 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. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3) a) The company has not granted any loans to companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly clauses 4(iii) (b) to (d) of the companies (Auditor's Report) Order, 2003 are not applicable.

b) The Company has taken interest free unsecured loans from body corporate and other parties covered in the register maintained under section 301 of the companies Act, 1956. Maximum amount involved and the year end balance was Rs.660.38 Lakhs; and

c) In our opinion, the terms and conditions on which loans have been taken by the company, secured or unsecured, are not prima facie prejudicial to the interest of the company.

4) 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 die purchase of inventory, fixed assets and for die sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

5) a) According to the information and explanation provided by the management, we are of the opinion that there were no such contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under that section 301 have been so entered.

b) According to the information and explanations given to us there were no transactions during the year, exceeding rupees Five Lakhs in value, that need to be entered in the register to be maintained under Section 301 of the Companies Act, 1956

6) According to the information and explanations given to us the company has not accepted deposits from public and hence, the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Companies Act, 1956 and the rules framed there under, are not applicable to the Company.

7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) In our opinion and as per explanations and information given to us maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956.

9) a) According to the information and explanations given to us and according to the books and records as produced and examined by us, in our opinion, the Company is generally regular in depositing with appropriate authorities un- disputed statutory dues including provident fund, sales tax, excise duty, cess and other statutory dues applicable by it.

b) As 31st March 2011, according to the records of the company and the information and explanations given to us, the following are the particulars of dues on account of sales-tax, wealth tax, service tax, customs duty, excise duty and cess matters that have not been deposited on account of any dispute.

Nature of Nature of Amount Period to Forum where Statute dues (Rs. in lakhs) which the pending amount relates

Income Tax Minimum 22.15 FY 2004-05 Income Tax Laws Alternate Tribunal, Tax (MAT) Hyderabad.

10) In our opinion accumulated losses of the Company are less than Fifty percent of its networth. The Company has not incurred cash losses during the current financial year and the immediately preceding Financial Year.

11) According to the information and explanations given to us and as per the books and records examined by us, the Company has not defaulted in repayment of dues to any financial institution or bank.

12) The company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities and therefore paragraph 4 (xii) of the Order is not applicable.

13) The provisions of any special statute applicable to chit fund and nidhi / mutual benefit fund/society are not applicable to the company and therefore paragraph A (xiii) of the Order is not applicable.

14) The company is not dealing or trading in shares, securities, debentures and other investments and therefore paragraph 4 (xiv) of the Order is not applicable.

15) According to the information and explanations given to us, during the year the company has not given any guarantee for loans taken by others from banks or financial institutions and therefore paragraph 4 (xv) of the Order is not applicable.

16) On the basis of information and explanation given to us, the company has not obtained and / or applied any term loan during the year.

17) In our opinion and as per the explanations and information given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act.

18) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, in our opinion, there are no funds raised on short term basis which have been used for long term investments and vice versa.

19) According to the information and explanations given to us, the Company has not issued any debentures and therefore, the provisions of paragraph 4 (xix) of the Order are not applicable to the company.

20) The company has not raised any money by way of public issues during the year and therefore paragraph 4 (xx) of the Order is not applicable.

21) Based upon the audit procedures performed and according to the information and explanations given to us by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For Jayant & Sadashiv Chartered Accountants FirmReg.No:001297S

Jayant Palnitkar Partner Membership No.20851 Place: Hyderabad

Date : 29.08.2011

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Mar 31, 2010

1. We have audited the attached Balance Sheet of SAN GAM HEALTH CARE PRODUCTS LIMITED, as at 31st March 2010, and the Profit and Loss Account and the Cash Flow Statement of the Company 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 state- ments based on our audit.

2. 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 rea- sonable assurance about whether the financial statements are free of material mis- statement. An audit includes examining, on a test basis, evidence supporting the amount and disclosure 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 staterhent presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) 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.

4. 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 purpose of our audit;

a) We have obtained all the information and explanations which, to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company, so far as it appears from our examination of those books;

c) The Balance Sheet, Profit and Loss Account 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, the Profit and Loss Account and the Cash Flow

Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representation received from the directors and taken on record by the Board of Directors, we report that none of the directors is disquali- fied as on 31s March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the expla- nations given to us, the said accounts 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;

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;

(ii) in the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date; and

(iii) in the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT Annexure referred to in paragraph 3 of the Auditors Report to the members of SANGAM HEALTH CARE PRODUCTS LIMITED on the accounts for the year ended 31st March 2010.

1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets

b) The company has a phased programme of physical verification of fixed assets which in our opinion is reasonable having regard to the size of the Company and nature of its business. No discrepancies were noticed on such verification.

c) During the year the company has not disposed off any part of Plant and Machinery that would affect the going concern status of the Company.

d) During the year 2006-07 the land has been revalued at its current replace- ment value on the basis of a valuation made by M/s. Teccons & Co., Char- tered Engineers and approved valuers amounting to Rs.7.70 crores is shown as addition to land in the Fixed Assets and shown as revaluation reserve under Reserves & Surplus.

2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories 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. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3) a) The company has not granted any loans to companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly clauses 4(iii) (b) to (d) of the companies (Auditors Report) Order, 2003 are not applicable.

b) The Company has taken unsecured loans from body corporate and other parties covered in the register maintained under section 301 of the companies Act, 1956.

c) The interest and other terms and conditions of loans taken by the company, secured or unsecured, are not prima facie prejudicial to the interest of the company.

4) 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 our audit, no major weakness has been noticed in the internal control system in respect of these areas.

5) a) According to the information and explanation provided by the management, we are of the opinion that there were no such contracts or arrangements referred to in section 301 of the Cempanies Act, 1956 that need to be entered into the register maintained under that section 301 have been so entered.

b) According to the information and explanations given to us there were no transactions during the year, exceeding rupees Five Lakhs in value, that need to be entered in the register to be maintained under Section 301 of the Companies Act, 1956

6) According to the information and explanations given to us the company has not accepted deposits from public and hence, the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Companies Act, 1956 and the rules framed there under, are not applicable to the Company.

7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) In our opinion and as per explanations and information given to us maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956.

9) a) According to the information and explanations given to us and according to the books and records as produced and examined by us, in our opinion, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, sales tax, excise duty, cess and other statutory dues applicable by it.

b) As 31st March 2010, according to the records of the company and the information and explanations given to us, the following are the particulars of dues on account of sales-tax, wealth tax, service tax, customs duty, excise duty and cess matters that have not been deposited on account of any dispute.

Nature of Nature of Amount Period to Forum where Statute dues (Rs. in lakhs) which the pending amount relates

Income Tax Minimum 22.15 FY 2004-05 Income Tax Law Alternate Tribunal, Tax (MAT) Hyderabad.

10) In our opinion accumulated losses of the Company are less than Fifty percent of its networth. The Company has not incurred cash losses during the current financial year and the immediately preceding Financial Year.

11) According to the information and explanations given to us and as per the books and records examined by us, the Company has not defaulted in repayment of dues to any financial institution or bank.

12) The company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities and therefore paragraph 4 (xii) of the Order is not applicable.

13) The provisions of any special statute applicable to chit fund and nidhi / mutual benefit fund/society are not applicable to the company and therefore paragraph 4 (xiii) of the Order is not applicable.

14) The company is not dealing or trading in shares, securities, debentures and other investments and therefore paragraph 4 (xiv) of the Order is not applicable.

15) According to the information and explanations given to us, during the year the company has not given any guarantee for loans taken by others from banks or financial institutions and therefore paragraph 4 (xv) of the Order is not applicable.

16) On the basis of information and explanation given to us, the company has not obtained and / or applied any term loan during the year.

17) In our opinion and as per the explanations and information given to us, .the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act.

18) According to the information and explanations given to us and on an overall ex- amination of the balance sheet of the company, in our opinion, there are no funds raised, on short term basis which have been used for long term investments and vice versa.

19) According to the information and explanations given to us, the Company has not issued any debentures and therefore, the provisions of paragraph 4 (xix) of the Order are not applicable to the company.

20) The company has not raised any money by way of public issues during the year and therefore paragraph 4 (xx) of the Order is not applicable.

21) Based upon the audit procedures performed and according to the information and explanations given to us by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

for Jayant & Sadashiv Chartered Accountants

Jayant Palnitkar

Partner

Place: Hyderabad. Membership No: 20851

Date: 01-09-2010 FRN : 001297S