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Alembic Pharmaceuticals Ltd.

BSE: 533573 Sector: Health care
NSE: APLLTD ISIN Code: INE901L01018
BSE LIVE 15:41 | 28 Jul 544.10 1.80
(0.33%)
OPEN

547.30

HIGH

547.35

LOW

540.00

NSE 15:59 | 28 Jul 542.45 -1.65
(-0.30%)
OPEN

544.00

HIGH

550.00

LOW

540.00

OPEN 547.30
PREVIOUS CLOSE 542.30
VOLUME 7661
52-Week high 709.30
52-Week low 492.25
P/E 28.37
Mkt Cap.(Rs cr) 10,256
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 547.30
CLOSE 542.30
VOLUME 7661
52-Week high 709.30
52-Week low 492.25
P/E 28.37
Mkt Cap.(Rs cr) 10,256
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alembic Pharmaceuticals Ltd. (APLLTD) - Auditors Report

Company auditors report

To The Members of

Alembic Pharmaceuticals Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of AlembicPharmaceuticals Limited ("the Company") which comprise the Balance Sheet as at31st March 2017 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the Significant Accounting Policies and Other ExplanatoryInformation.

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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act.

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 theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 auditevidence about the amounts and the disclosures in the standalone

Ind AS financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thestandalone Ind AS financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the standalone Ind AS financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit 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 affairs (financial position) of the Company as at 31st March 2017 and itsprofit (financial performance including other comprehensive income) its cash flows andthe changes 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 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 theOrder.

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss theCash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid standalone Ind ASfinancial statements comply with the Indian Accounting Standards prescribed under section133 of the Act.

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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". g) With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its standalone Ind AS financial statements; refernote no 27.2. ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.

iii There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company. iv The Company has providedrequisite disclosures in its financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016 atNote No. 38 and these are in accordance with the books of accounts maintained by theCompany.

For K.S.AIYAR & Co
Chartered Accountants
Firm Registration Number: 100186W
RAGHUVIR M. AIYAR
Mumbai Partner
Date: 3rd May 2017 Membership No. 38128

Annexure ‘A' to the Independent Auditor's Report

Re: Alembic Pharmaceuticals Limited.

Referred to in paragraph 1 on Report on Other Legal and Regulatory Requirements of ourreport.

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) These fixed assets have been physically verified by the management during the yearas per the phased programme of physical verification of fixed assets. As informed to usthe programme is such that all the fixed assets will get physically verified in three yeartime. In our opinion the same is reasonable having regard to the size of the Company andthe nature of its fixed assets. No material discrepancies were noticed on suchverification. (c) The title deeds of immovable properties are held in the name of thecompany. (ii) Physical verification of inventory has been conducted at reasonableintervals by the management and No material discrepancies were noticed on physicalverification. (iii) The Company has not granted any secured or unsecured loans tocompanies firms limited liability partnership or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Therefore the requirements ofsub-clause (a) (b) and (c) of clause (iii) are not applicable to the Company.

(iv) In respect of loans investments guarantees and security provisions of section185 and 186 of the Companies Act 2013 have been complied with. (v) The Company has notaccepted any deposits during the year. Therefore the question of complying with directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed thereunder do notarise. (vi) The Central Government has specified the maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013. Such accounts and records havebeen made and maintained by the Company.

(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues withthe appropriate authorities. (b) Dues of income tax or sales tax or service tax or duty ofcustoms or duty of excise or value added tax that have not been deposited on account ofany dispute are on the next page.

Nature of dues Amount not deposited Rs Forum where dispute is pending Period to which the amount relates
Sales Tax interest and penalty 1312295 High Court 1999-2000
16384603 Asst. Commissioner Demand 2003-04
44830 Additional Commissioner 2004-05
153406 Revisional Board (Tribunal) 2006-07
2092750 Jt. Commissioner Appeals 2013-14
765686 Jt. Commissioner Appeals 2006-07
827211 Tribunal 2009-10
781346 Tribunal 2009-10
184321 Additional Commissioner 01-04-2006 to 30-11-2008
1506831 Additional Commissioner 2007-08
3646047 Revisional Authority 2012-13
Central Sales Tax 151971 Additional Commissioner 01-04-2006 to 30-11-2008
1093955 Deputy Commissioner II 2006-07
4837 Tribunal 2009-10
123800 Jt. Commissioner Appeals 2006-07
324342 Jt. Commissioner Appeals 2010-11
Excise Duty Interest & Penalty 21395574 CESTAT 2005-06
985233 CESTAT 2011-12
16091 CESTAT 2007-08
210579 CESTAT 1998-99
35000 Commissioner (Appeal) 2009-10
5003165 High Court 2005-06
12099486 High Court 2005-06
55306 CESTAT 2008-09
121276 CESTAT 2010-11
10181463 CESTAT 2006 to 2011
2411210 Commissioner (Appeals) 2013-14
275323 CESTAT 2007-08 to July 2011
56760 CESTAT 2011-12
412504 Commissioner (Appeals) 2013-14
345902 CESTAT 2012-13
118282 CESTAT 2013-14
126179 Commissioner Appeals 2006 to 2011
2523209 CESTAT 2011 to 2015
2799431 CESTAT 2015-16
318507 CESTAT 2014-15
368256 CESTAT 2014-15
35964 CESTAT 2012 to 2014
Stamp duty 50118535 Supreme Court 2011-12

(viii) The Company has not defaulted in repayment of loans or borrowings to a financialinstitution bank government or dues to debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or any term loans during the year. (x) Any fraudby the Company or any fraud on the Company by its officers or employees has not beennoticed or reported during the year. (xi) Managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act. (xii) The Company is not a Nidhi Companyand therefore the compliance requirements relevant to a Nidhi Company are not applicable.

(xiii) All transactions with related parties are in compliance with section 177 and 188of the Companies Act 2013 where applicable and the details have been disclosed in thestandalone Ind AS financial statements etc. as required by the applicable accountingstandards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review thereforethe compliance of the requirement of section 42 of the Companies Act 2013 are notapplicable. (xv) Pursuant to the provisions of section 192 of the Companies Act 2013 theCompany has not entered into any non-cash transactions with directors or persons connectedwith him/her. (xvi) The Company is not required to be registered under section 45-1(A) ofthe Reserve Bank of lndia Act 1934.

For K.S.AIYAR & Co
Chartered Accountants
Firm Registration Number: 100186W
RAGHUVIR M. AIYAR
Mumbai Partner
Date: 3rd May 2017 Membership No. 38128

Annexure ‘B' to the Independent Auditor's Report

REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF ALEMBICPHARMACEUTICALS LIMITED Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ALEMBICPHARMACEUTICALS LIMITED ("the Company") as of March 31 2017 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon that 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient 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 internal financialcontrols system over financial reporting and such internal financial controls wereoperating effectively as at March 31 2017 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For K.S.AIYAR & Co
Chartered Accountants
Firm Registration Number: 100186W
RAGHUVIR M. AIYAR
Mumbai Partner
Date: 3rd May 2017 Membership No. 38128