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Ajanta Pharma Ltd.

BSE: 532331 Sector: Health care
NSE: AJANTPHARM ISIN Code: INE031B01049
BSE LIVE 15:59 | 22 Sep 1212.90 -44.40
(-3.53%)
OPEN

1286.90

HIGH

1313.85

LOW

1197.00

NSE 15:57 | 22 Sep 1208.50 -48.10
(-3.83%)
OPEN

1280.00

HIGH

1297.65

LOW

1195.80

OPEN 1286.90
PREVIOUS CLOSE 1257.30
VOLUME 88525
52-Week high 2150.00
52-Week low 1106.00
P/E 22.40
Mkt Cap.(Rs cr) 10,674
Buy Price 0.00
Buy Qty 0.00
Sell Price 1212.90
Sell Qty 14.00
OPEN 1286.90
CLOSE 1257.30
VOLUME 88525
52-Week high 2150.00
52-Week low 1106.00
P/E 22.40
Mkt Cap.(Rs cr) 10,674
Buy Price 0.00
Buy Qty 0.00
Sell Price 1212.90
Sell Qty 14.00

Ajanta Pharma Ltd. (AJANTPHARM) - Auditors Report

Company auditors report

To

The Members of AJANTA PHARMA LIMITED

Report on Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of AJANTAPHARMA LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information (hereinafter referred to as "standalone Ind AS financial statements").

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the state of a3airs (financial position) profit (financial performance includingother comprehensive income) cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevantrules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is su3cient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of a3airs (financial position) of the Company as at 31st March 2017 and its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act read with relevantrules issued thereunder;

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"; and

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact if any of pending litigations as at 31st March 2017 onits financial position in its standalone Ind AS financial statements - Refer Note 46 tothe standalone Ind AS financial statements;

ii. The Company has not entered into any long-term contracts including derivativecontracts requiring provision under the applicable law or accounting standards formaterial foreseeable losses;

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

iv. The Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company. - Refer Note 50 to the standalone Ind AS financialstatements.

For Kapoor & Parekh Associates
Chartered Accountants
ICAI FRN 104803W
Nilesh Parekh
Partner
M.No. 33528
Mumbai 3rd May 2017

Annexure A to the Independent Auditor's Report

(The Annexure referred to in para 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the Members of AJANTA PHARMALIMITED on the standalone Ind AS financial statements for the year ended 31st March 2017.)

1) In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As informed to us by the management the Company has a policy of physicallyverifying fixed assets in a phased manner over a period which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. We areinformed that there were no material discrepancies noticed on such verification and thesame has been properly dealt with in the books of account.

c) According to the information and explanation given to us the title deeds ofimmovable properties of the Company are held in the name of the Company.

2) According to the information and explanation given to us the inventories have beenphysically verified by the management at reasonable intervals during the year except forstocks with third parties for which most of the confirmation certificates have beenobtained by the Company. The discrepancies noticed on such physical verification betweenphysical stock and book records were not material and have been adequately dealt with inthe books of account.

3) According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms Limited Liability Partnershipor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013. Accordingly paragraph 3(iii) of the Order is not applicable to the Company.

4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act2013.

5) The Company has not accepted any deposit from public.

6) We have broadly reviewed the books of accounts maintained by the Company pursuant tothe rules prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Companies Act 2013 in relation to products manufactured and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. We have not made a detailed examination of the records with a view todetermine whether they are accurate and complete.

7) According to the information and explanations given to us:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Sales Tax Service TaxCustom Duty Excise Duty Value Added Tax Cess and other material statutory dues with theappropriate authorities during the year. There are no undisputed amounts payable inrespect of aforesaid material statutory dues as at 31st March 2017 which were in arrearsfor a period of more than six months from the date they became payable.

b) On the basis of our examination of the documents and records of the Company thereare no dues of Income Tax Sales Tax Service Tax Customs Duty Excise Duty Value AddedTax and Cess as at 31st March 2017 which have not been deposited on account of a disputeexcept as enumerated herein below which are pending before respective authorities asmentioned there against:

Name of the statute Nature of the Dues Amount* (Rs. in cr.) Period to which amounts relate Forum where dispute is Pending
Central Excise Act 1944 Excise 0.06 FY 2007-08 to FY 2008-09 Commissioner of Central Excise Thane-II
Central Excise Act 1944 Excise 0.04 FY 2006-07 to FY 2010-11 Assistant Commissioner of Central Excise Thane-II
Central Excise Act 1944 Excise 0.16 FY 2010-11 to FY 2015-16 Superintendent of Central Excise Customs & Service Tax Aurangabad
Central Excise Act 1944 Excise 0.13 FY 2010-11 to FY 2015-16 Additional Comissioner of Central Excise Customs & Service Tax Aurangabad
Central Excise Act 1944 Excise 0.11 FY 2015-16 to FY 2016-17 Joint Comissioner of Central Excise Customs & Service Tax Aurangabad
Finance Act 1994 Service Tax 1.87 FY 2012-13 to FY 2014-15 Additional Comissioner of Central Excise Customs & Service Tax Aurangabad
The Income Tax Act 1961 Penalty 0.47 FY 2011-12 Commissioner of Income Tax (Appeals) Mumbai

* Net of amounts paid under protest or otherwise. Amount as per demand order includinginterest and penalty wherever quantified.

8) Based on our audit procedures information and explanations given to us in ouropinion the Company has not defaulted in repayment of loans or borrowings to financialinstitutions banks Government. The Company does not have any outstanding debenturesduring the year.

9) According to the information and explanations given to us the Company has notraised any money by way of initial public o3er or further public o3er (including debtinstruments) and has not taken any term loan during the year.

10) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its o3cers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

11) In our opinion and according to the information and explanation given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapproval mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

12) In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

13) The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Companies Act 2013. The details of suchrelated party transactions have been disclosed in the standalone Ind AS financialstatements as required by the applicable Ind AS.

14) According to the information and explanation given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly paragraph 3(xiv) of the Order is notapplicable to the Company.

15) According to the information and explanation given to us the Company has notentered into any non-cash transactions with directors or persons connected with directors.Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

16) According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For Kapoor & Parekh Associates
Chartered Accountants
ICAI FRN 104803W
Nilesh Parekh
Partner
M.No. 33528
Mumbai 3rd May 2017

Annexure B to the Independent Auditor's Report

(The Annexure referred to in para 2 (f) under the heading "Report on Other Legaland Regulatory Requirements" of our report of even date to the Members of AJANTAPHARMA LIMITED on the Standalone Ind AS financial statements for the year ended 31st March2017.)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AJANTAPHARMA LIMITED("the Company") as of 31st March 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and e3cientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation and presentation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the ICAI and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls. Those Standards and the above mentioned Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is su3cient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For Kapoor & Parekh Associates
Chartered Accountants
ICAI FRN 104803W
Nilesh Parekh
Partner
M.No. 33528
Mumbai 3rd May 2017