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Astrazeneca Pharma India Ltd.

BSE: 506820 Sector: Health care
NSE: ASTRAZEN ISIN Code: INE203A01020
BSE LIVE 15:45 | 09 Dec 947.45 9.80
(1.05%)
OPEN

950.00

HIGH

954.00

LOW

945.60

NSE LIVE 15:31 | 09 Dec 953.55 15.65
(1.67%)
OPEN

945.00

HIGH

955.90

LOW

942.15

OPEN 950.00
PREVIOUS CLOSE 937.65
VOLUME 191
52-Week high 1348.00
52-Week low 916.00
P/E 115.12
Mkt Cap.(Rs cr) 2368.62
Buy Price 0.00
Buy Qty 0.00
Sell Price 947.45
Sell Qty 4.00
OPEN 950.00
CLOSE 937.65
VOLUME 191
52-Week high 1348.00
52-Week low 916.00
P/E 115.12
Mkt Cap.(Rs cr) 2368.62
Buy Price 0.00
Buy Qty 0.00
Sell Price 947.45
Sell Qty 4.00

Astrazeneca Pharma India Ltd. (ASTRAZEN) - Auditors Report

Company auditors report

To the Members of AstraZeneca Pharma India Limited

Report on the Financial Statements

We have audited the accompanying financial statements of AstraZeneca Pharma IndiaLimited ("the Company") which comprise the Balance Sheet as at 31 March 2016the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the 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 financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the said Order to the extent applicable.

(ii) 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 31March 2016 and taken on record by the Board of Directors none of the directors aredisqualified as on 31 March 2016 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. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer note 2.6 and note 2.23 to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

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

for B S R & Co. LLP

Chartered Accountants

Firm registration number: 101248W / W-100022

Supreet Sachdev

Partner

Membership number: 205385

Place: Bangalore

Date: May 25 2016

Annexure A to the Independent Auditor’s Report

Annexure referred to in the Independent Auditor’s Report to the Members ofAstraZeneca Pharma India Limited ("the Company") for the year ended 31 March2016. We report that:

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

(b) The Company has a regular program of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. In accordance with this program certainfixed assets were verified during the year. No material discrepancies were noticed on suchverification.

(c) According to the information and explanations give to us the title deeds ofimmovable properties are held in the name of the Company.

(ii) The inventories except goods-in-transit and stock lying with third parties havebeen physically verified by the Management during the year. In our opinion the frequencyof verification is reasonable. The discrepancies identified on physical verification ofinventories between physical stocks and book records were not material. For stocks lyingwith third parties at the year-end written confirmations have been obtained.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theAct.

(iv) According to the information and explanations given to us the Company has notgiven any loan or made any investments or given any guarantees under provisions of Section185 and 186 of the Act.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Act in respect of bulk drugs and formulations and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained.However we have not made a detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales-tax wealth-tax service tax customs duty excise duty value added tax cess andany other material statutory dues have been regularly deposited during the year by theCompany with the appropriate authorities though there has been a slight delay in a fewcases.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income-tax wealth- tax service tax sales-taxcustoms duty cess and other material statutory dues were in arrears as at 31 March 2016for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofwealth-tax sales-tax excise duty or cess which have not been deposited with theappropriate authorities on account of any dispute. According to the information andexplanations given to us the following dues of income-tax customs duty and service taxhave not been deposited by the Company on account of disputes:

Name of the Statute Nature of the dues Amount ( Rs. ) Period to which the amount relates Forum where dispute is pending
Income tax Act 1961 Income tax demand in relation to sale and lease back arrangement 42373443 1996-1997 Honourable High Court Karnataka
Customs Act 1962 Customs duty 21248482 2005-2006 Deputy Commissioner Customs Mumbai
Finance Act 1994 Disallowance of input service tax credit 5188201 April 2005 to March 2010 Central Excise and Service Tax Appellate Tribunal Bangalore
Finance Act 1994 Service tax on import of services 256481742 April 2006 to March 2012 Central Excise and Service Tax Appellate Tribunal Bangalore
Finance Act 1994 Service tax on import of services 34217273 April 2012 to March 2013 Central Excise and Service Tax Appellate Tribunal Bangalore
Income tax Act 1961 Income tax demand in relation to various disallowances 842995334 2008-2009 Income tax Appellate Tribunal Bangalore
Income-tax Act 1961 Income tax demand in relation to various disallowances 50774605 April 2009 to March 2010 Income tax Appellate Tribunal Bangalore
Income-tax Act 1961 Income tax demand in relation to various disallowances 10397300 April 2010 to March 2011 Income tax Appellate Tribunal Bangalore
Punjab VAT VAT Assessment 1771199 2006-2007 Punjab High Court and Deputy Excise and Taxation Commissioner Patiala Division Patiala
Delhi VAT VAT Assessment 8870176 2010-2011 Commissioner Delhi VAT

1 an amount of Rs. 26000 has been paid under protest by utilizing credit

2 an amount of Rs. 1764842 has been paid under protest by cash

3 an amount of Rs. 243700 has been paid under protest by utilizing credit

4 an amount of Rs. 42149717 has been paid under protest by cash and adjustmentof income tax refund

5 an amount of Rs. 5077460 has been under protest.

6 an amount of Rs. 88701 has been paid under protest

(viii) According to the information and explanations given to us the Company did nothave any outstanding dues to any financial institution banks or debentureholders duringthe year.

(ix) The Company has not raised any money by public issues / further public offerduring the year. The Company did not have any term loans outstanding during the year.

(x) According to the information and explanations given to us no fraud by the Companyor any fraud on the Company by its employees / officers has been noticed or reportedduring the course of our audit.

(xi) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company managerial remuneration has been paid andprovided as per provisions of Section 197 read with Schedule V of the Act.

(xii) In our opinion and according to the information and explanation given to us theCompany is not a nidhi company.

(xiii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company all the transactions entered with therelated parties are in compliance with Section 177 and 188 of the Act where applicableand the details disclosed in the financial statements are as required by the accountingstandards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them.

(xvi) In our opinion the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

for B S R & Co. LLP

Chartered Accountants

Firm registration number: 101248W / W-100022

Supreet Sachdev

Partner

Membership number: 205385

Place: Bangalore

Date: May 25 2016

Annexure B to the Independent Auditor’s Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AstraZenecaPharma India Limited ("the Company") as of 31 March 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor’s 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 the ICAI anddeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 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 sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlsover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that:

• pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

• provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

• provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company’s assets that could havea 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 with reference to financial statements over financial reporting andsuch internal financial controls over financial reporting were operating effectively as at31 March 2016 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe ICAI.

for B S R & Co. LLP

Chartered Accountants

Firm registration number: 101248W / W-100022

Supreet Sachdev

Partner

Membership number: 205385

Place: Bangalore

Date: May 25 2016

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