ANNUAL REPORT OF Accord Healthcare Mena DMCC (DUBAI) FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2016

Transcription

1 ANNUAL REPORT OF Accord Healthcare Mena DMCC (DUBAI) FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2016

2 Accord Healthcare Mena DMCC, DUBAI Board of Directors Mr. Kamal Abdulghani El Hage Ali Registration Number JLT5236 Office Address Unit No. 403, 1-Lake Plaza, Plot No. PH2-T2, Jumeirah Lakes Towers, Dubai, United Arab Emirates

3 Directors Report The Members Accord Healthcare Mena DMCC, DUBAI Your Directors have pleasure in submitting the Annual Report of the Company comprising of Balance Sheet as on 3 1st March 2016 and Statement of Profit & Loss for the year ended 31 st March Financial Highlights: Particulars Amt in Rupees Financial Period ended on Income Profit/(Loss) for the year Foreign Currency Translation Reserve Loss brought forward Loss carried to Balance Sheet 109,997,121 5,928,033 (7,455,208) (36,027,518) (37,554,694) 108,855,385 5,206,546 (3,886,972) (41,234,064) (39,914,490) The Company made a Net Profit of Rs. 5,928,033/- in the current year of its operations compared to net loss of 5,206,546/- in previous year. 2. Review of Operations: During this year under review, there has been activity in terms of business development. 3. Acknowledgement: Your Director place in record their appreciation to the sincere efforts put in by the team of Accord Healthcare Ltd., UK and Intas Pharmaceuticals Ltd. for the support provided throughout the year. By Order of the Board Place: Dubai Date: go +t'atjw 1 1.fo I(, I Mr. ~ bdulghani El Hage Ali Director

4 Panncrs: Telunul B. Sethna B. Com., F.C.A. Fredy M. Contractor M. Com., F.C.A. Apaji Amin & Co LLP CHARTERED ACCOUNTANTS Apaji Am in & Co. (a partnership firm) converted into Apaji Am in & Co LLP (Identity No. AAD-2639) Regd. Office: 304, Aakanksha Building, Opp. Vadilal House, Navrangpura, Ahmedabad Phone No.: /33 auditors.apajiamin@gmail.com Partners: Rity M. Malhotra M. Com., AC.A Chirag R. Ganatra B. Com., A.CA Independent Reviewers' Report to the Members of Accord Healthcare Mena JLT, Dubai Report on the Standalone Financial Statements We have reviewed the accompanying financial statements of Accord Healthcare Mena JLT, Dubai (the "company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss for the year then ended and a summary of significant accounting policies and other explan~tory information. Management's Responsibility for the Standalone Financial Statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the accounting principles generally accepted in Dubai. 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. Reviewers' Responsibility Our responsibility is to express an opinion on these financial statements based on our review. We conducted our review to comply with ethical requirements and plan and perform the review to obtain reasonable assurance about whether the financial statements are free from material misstatements. A review involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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, we consider internal control relevant to the Company's preparationof the financial statements that give a true and fair view in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. A review also includes eva luating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's management, as well as evaluating the overall presentation of the financial statements. We have relied on the unaudited financial statements of Accord Healthcare Mena JLT, Dubai for the year then ended. These unaudited financial statements have been furnished to us and our report is solely based on the unaudited financial statements certified by the management. Opinion In our opinion and to the best of our information and according to the explanations given to us, the standalone 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 Dubai, of the state of affairs of the Company as at March 31, 2016, and its loss for the year ended on that date.

5 Partners : Tehmul B. Sethna B. Corn., F.C.A. Fredy M. Contractor M. Corn., F.C.A. Apaji Amin & Co LLP CHARTERED ACCOUNTANTS Apaji Amin & Co. (a partnershi p firm) converted into Apaji Am in & Co LLP (Identity No. AAD-2639) Regd. O ffice: 304, Aakanksha Building, Opp. Vadilal House, Navrangpura, Ahmedabad Phone No.: / 33 auclitors.apajiamin@gmail.com Partners: Rity M. Malhotra M. Corn., A.CA Chirag R. Ganatra B. Corn., A.CA Independent Reviewers' Report to the Members of Accord Healthcare M ena JLT, Dubai Report on Other Requirements We report that: (a) We have obtained all the information and e'xplanations, which to the best of ou r knowledge and belief were necessary for the purpose of our review. (b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from ou r examination of those books. (c) The Balance Sheet and Statement Profit and Loss dea lt with by this report are in agreement with the books of account. For APAJI AMIN & CO LLP Chartered Accountants ICAI FRN No.: W/W10006k _.",_ 1~- -;:::~~~.\TJ & co n.... ~ x. ',_...., ,~ (l 1...'/::;:. ; :e:'um.~. l I { '.~:-:--~t~ / Tehmul B. Sethna Partner Membership No : "'r.;-:.:--1":; '::~1i; : l'!t""2 J ~ -., '., '" - "''"'.'uo.,,~':;>). :..:~!'~ Place: Ahmedabad Date: 30 1 h August, 2016

6 Accord Healthcare Mena DMCC Balance Sheet as at M arch 31, 2016 EQUITY AND LIABILITI ES Shareholders' Funds Particulars Notes (a) Share Capital 1 50, ,600 50, ,090 (b) Reserves and Surplus 2 (2,048,587) (37,554,694) (2,344,904) (39,914,490) (1,998,587) (36,638,094) (2,294,904) (39,063,400) Non-current Liabilities (a) Long Term Borrowings 3 4,827,050 88,489,482 8,958, ,496,180 4,827,050 88,489,482 8,958, ,496,180 Current Liabilities (a) Trade Payabl es , ,463 (b) Oth er Current Liabilities 4 447,550 8,204,488 1,017,930 17,326, ,550 8,204,488 1,043,513 17,762,457 ASSETS Non-current Assets TOTAL 3,276,013 60,055,877 7,707, ,195,236 (a) Fixed Assets 5 967,239 17,731, ,835 8,116, ,239 17,731, ,835 8,116,586 Current Asset s (a) Trade Receivabl es ,540, ,329,958 (b) Cash and Cash Equivalents 7 268,427 4,920, ,434 10,799,216 (c) Short term Loa ns & Advances 8 2,040,347 37,403,643 55, ,476 2,308,774 42,324,449 7,230, ,078,650 TOTAL 3,276,013 60,055,877 7,707, ,195,236 As per our report of even dat e For Apaji Amin & Co. LLP Chartered Accountants ICAI 7: '?_IJ! f ll,'l\ ~t.\in & Co. l For and on behalf of the Board of Accord Healthcare MENA Limited.w Tehmul Sethna ~ ~ FIRM REGN.NO. (,,o ~ Mr. Kamal Abdulghani El Hage Ali Partner ~ WIW1CG062 ~ Director Membership No.: 'lirtreo ACCO~~ Place: Ahmedabad J- Place: Dubai Dat e: P>oi11 AA Ov_J, ~16 Date:..;o../l1fk_t:J1,J,.+, -<D /,t, ~ u

7 Accord Healthcare Mena DMCC Statement of Profit and Loss for the Period ended March 31, 2016 Particulars Notes Other Inco me 9 6,222, ,997, Total Revenue (I) 6,222, ,997,121 6,540, ,855,385 Expenses: Employee Benefits Expenses 10 3,424,726 60,538,532 3,547,412 59,041,175 Ad ministrative and General Expenses 11 1,640,860 29,005,332 1,712,938 28,509,203 Se lling and M arketing Expenses ,295 10,040, ,014 11,733,868 Total Expenses (II) 5,668,880 99,584,767 5,965,365 99,284,246 Earnings before Interest & Tax (1-11) 553,768 10,412, ,069 9,571,138 Depreciation and Amortisation Expenses 5 33, ,494 28, ,494 Ban k Cha rges ,550 3,922, ,113 3,891,647 Loss Before Tax and Prior period income 296,317 5,928, ,449 5,225,998 Prior peri od Expe nses - - 1,196 19,452 Loss Before Tax 296,317 5,928, ,253 5,206,546 Tax Expe nses: Net Profit for the Year 296,317 5,928, ,253 5,206,546 As per our report of even date For Apaji Amin & Co. LLP Chartered Accountants ICAI FRN No.:q0:#? ~ ~"1IN6C~ For and on behalf of t he Board of Accord Healthca re M ENA Limited w Tehmul Sethn ~s"'regn.~%62 ~ \005\3WIWlll ~ Pa rtn er ~~ ~~ Mr. Kamal Abdulghani El Hage Ali M embersh ip No.: "fREDAttO Direct or Place: Ahmedabad ~ Place: Dubai Date: R,b- 1 ~ a/ I i f ~ I 6 Date: ~ D.-f"7 Jl.fl Q 1 1 J l ~<D / t, u u

8 Accord Healthcare Mena DMCC Notes to t he Financial Statements as at March 31, SHARE CAPITAL Authorised Shares SO EQuity Share of 1000 each March31, 2016 '""' 50, March '""' , ls.sued Subsqjbed and Ful!v Paid-up Shares 50 Equity Share of 1000 each , , , RESERVES AND SURPLUS Much 31,2016 ln Rs March lnrs (a) Foreign Currency Translatjon Reserve Opening Balance Add : during the period Closing Balance (b) Surplus (3,886,9n) 13,568,236) f l (l,952,337} (1,934,635! \ Balance IS per Last Financial Statements NetlossfortheYear Net Deficit In the Statement of Profit and loss (2,344,904) 296,317 {2 048,5871 (36,027,518) 5,928, (2,655,157) 310, (41,234,064) 5,206, GRAND TOTAL (2 G48,587l (37, } } (39, LONG TERM BORROWINGS Loan from Accord Healthcare Ltd. UK Shareholde'sCurrentAccount The above amount includes: Unsecured Borrowings Net Amount March Non current Portion 4, ,482 4, ,827,050 88, ,827,050 88,489,482 Much 31, ,073, , ,052 15,065, ,958, ,496, OTHER CURRENT LIABILITIES ~ Other payables Accrued Expenses Much ,550 8,204, March lnrs 25,583 1,017, ,463 17,326, sso U 17762,456 6 Trade Rtteiva bles Due from Group Companies March I lnrs I I March I lnrs 6,540, ,329, I 111, CASH AND CASH EQUIVALENTS Balances with Schedule Sanks: On Current Accounts Margin Money With Banks March March lnrs 107,427 1,969, ,434 8,058, ,000 2,951, , SHORT TERM LOANS AND ADVANCES Other Loans and Advances Prepaid Expenses Deposits Provision(DebitSalances) March31,2016 I lnrs Current Portion 242, <l 346 4,446,467 2,282,121 30,675, March , , , Other Income Mana5ementfeeslncome Total Revenue March 31, 2016 March ,222, ,997, , , , , oa ass EMPLOYEE BENEFITS EXPENSES 5alary&OtherstaffRelatedbenefits Manager's Remuneration and benefits 5taffwelfare Training Cost March March lnrs 2,942,800 52,019,574 1,639,311 27,283,784 '""' 481, ,518,958 1,680, ,275 27,974,743 3,782, U ADMINISTRATIVE AND GENERAL EXPENSES Rent, Rates and Taxes Regulatory charges Insurance Travelling and Conveyance Communication Expenses Repair& Maintenance Others Legal and Professional Fees Print ing & Stationary computere penses Office Expenses Discounts/Commission March ,600 1,619,203 2, , ,042 1,028,996 55,613 21, ,041 5,284,584 2,510,854 18,189, , March lnrs 89,188 1,484,396 n,95s 286, ,136 1,070,632 40, ,297,446 4,775,108 2,465,498 17,819, , SELLING & MARKETING EXPENSES Advertising & Promotion Expenses Other Selling Expenses Gifts and Samples March lnrs 595, ,916, March lnrs 705,014 11,733, FINANCE EXPENSES March31, 2016 March Loan Interest Other similar charges 195,634 27,916 3,458, , ,854 19,259 3,592, ,

9 Accord Healthcare Mena DMCC (DUBAI) SCHEDULE - A Significant Accounting Policies and Notes forming part of Balance Sheet and Profit and Loss Account: I. Significant Accounting Policies: (1) Basis for Preparation of Accounts: The financial statements are prepared as going concern under the historical cost convention on an accrual basis unless specifically stated and in accordance with Dubai' s Generally Accepted Accounting practice, and in the manner required in the Companies Act. We draw attention to the fact that at 31 March, 2016, the Company had accumulated losses of Rs. (37,554,694)/- and that the Company's total liabilities exceed its assets by Rs. (36,638,094)/-. The going concern basis presumes that funds will be available to finance future operations and that the realization of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The ability of the Company to continue as a going concern significantly relies on Accord Healthcare UK Limited & Intas Pharmaceutical Limited as it will continue to procure funding for the ongoing operations of the Company. (2) Description of Business: The company undertakes activities pertaining to medicine trading and medicine production. (3) Related Party Transactions: The company is a wholly owned subsidiary of Accord Healthcare Ltd. UK. Transactions with group undertaking are summarized below; (Amount in INR) Particulars 31/03/ /03/2015 Unsecured Loan payable to Accord Healthcare Ltd., U.K Amount Receivable from Accord Healthcare Ltd., U.K 88,489, ,431, ,329,958

10 Accord Healthcare Mena DMCC (DUBAI) SCHEDULE - A Significant Accounting Policies and Notes forming part of Balance Sheet and Profit and Loss Account (contd... ): (4) Foreign Currency Transaction Reserve: The books of the company are maintained in euro currency. These accounts have been prepared in Indian Rupees. The euro balances as per the books of the company have been converted into Indian rupees as follows; All revenue items have been converted at the average rate for the year. All the assets and liabilities have been converted at the year-end rate. The net difference on translation is taken to Foreign Currency Translation Reserve. II. Notes forming part of Balance Sheet and profit and Loss Account: Previous year's figures have been regrouped I rearranged wherever necessary to conform to this year's figures. As per our report of even date For & on behalf of the Board of Accord Healthcare MENA Limited y Mr. Kamal Abdulghani El Hage Ali Director Place: Ahmedabad Date: _3D "-f17 ~ fj W t t--0:> 1 t