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Biocon Ltd.

BSE: 532523 Sector: Health care
NSE: BIOCON ISIN Code: INE376G01013
BSE LIVE 15:51 | 09 Dec 943.25 20.75
(2.25%)
OPEN

930.00

HIGH

948.20

LOW

925.00

NSE LIVE 15:53 | 09 Dec 943.65 19.30
(2.09%)
OPEN

927.70

HIGH

949.30

LOW

925.00

OPEN 930.00
PREVIOUS CLOSE 922.50
VOLUME 109941
52-Week high 1020.00
52-Week low 430.80
P/E 36.46
Mkt Cap.(Rs cr) 18865.00
Buy Price 0.00
Buy Qty 0.00
Sell Price 943.25
Sell Qty 615.00
OPEN 930.00
CLOSE 922.50
VOLUME 109941
52-Week high 1020.00
52-Week low 430.80
P/E 36.46
Mkt Cap.(Rs cr) 18865.00
Buy Price 0.00
Buy Qty 0.00
Sell Price 943.25
Sell Qty 615.00

Biocon Ltd. (BIOCON) - Auditors Report

Company auditors report

To the Members of Biocon Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Biocon Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe 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 financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as 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 financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone 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 March31 2016 its profit and its cash flows 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of

the Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of 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 purpose 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

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

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct;

(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 2" to this report;

(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 35 to the financial statements;

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

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

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm registration number: 101049W

per Aditya Vikram Bhauwala

Partner

Membership No.: 208382

Place: Bengaluru

Date: April 26 2016

Annexure 1 to the Auditors’ Report

The Annexure referred to in our report to the Members of Biocon Limited (‘theCompany’) for the year ended March 31 2016. We report that:

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

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification intended to cover all the fixedassets of the Company over a period which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties are held in the name of theCompany except for five number of immovable properties aggregating Rs. 271 million as atMarch 31 2016 for which the Company is in process of obtaining registration. Alsoaccording to information and explanations given by the management immovable propertiesaggregating Rs. 1 million for which the title is in dispute and is sub-judice as at March31 2016.

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year. In our opinion the frequency of verification is reasonable. Nomaterial discrepancies were noticed on such physical verification. Inventories lying withoutside parties have been confirmed by them as at year end and no material discrepancieswere noticed in respect of such confirmations.

(iii) (a) The Company has granted loans to two companies covered in the registermaintained under Section 189 of the Companies Act 2013. In our opinion and according tothe information and explanations given to us the terms and conditions of the loans notprejudicial to the Company’s interest.

(b) In respect of loans granted to companies covered in the register maintained underSection 189 of the Companies Act 2013 repayment of the principal amount

is as stipulated and payment of interest has been regular.

(c) There is no overdue amount of loans granted to companies listed in the registermaintained under Section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to usprovisions of Section 185 and 186 of the Companies Act 2013 in respect of loans and

(v) The Company has not accepted any deposits from the public.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Companies Act 2013 related to the manufacture ofbiopharmaceuticals and biotechnology products and are of the opinion that prima facie thespecified accounts and records have been made and maintained. We have not however made adetailed examination of the same.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees’ state insuranceincome-tax sales-tax wealth-tax service tax customs duty excise duty value addedtax cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees’ state insurance income- taxwealth-tax service tax sales-tax customs duty excise duty value added tax cess andother material statutory dues were outstanding at the year end for a period of more thansix months from the date they became payable.

(c) According to the records of the Company the dues outstanding of income-taxsales-tax wealth-tax service tax customs duty excise duty value added tax and cess onaccount of any dispute are as follows:

Name of the Statute Nature of dues Amount Claimed (Rs. Mn) Payment under protest (Rs. Mn) Period to which the amount relates Forum where dispute is pending
The Central Excise Act 1944 Excise Duty 1 1 1994-1995 Assistant Collector of Central Excise
The Central Excise Act 1944 Excise Duty 20 - 2009-2014 Commissioner (Appeals)
The Central Excise Act 1944 Excise Duty 243 7 2005-2008 and 2009-2013 Customs Excise and Service Tax Appellate
Tribunal
The Central Excise Act 1944 Excise Duty 1 - 2009-2011 Revision application before Central
Government
The Customs Act 1962 Customs Duty 46 45 2004-2005 2007-2008 and Customs Excise and Service Tax Appellate
2009-2012 Tribunal
The Customs Act 1962 Customs Duty 23 23 2008-2009 to 2011-2012 Commissioner (Appeals)
Finance Act 1944 Service Tax 91 - FY 2006 to FY 2011 Customs Excise and Service Tax Appellate
Tribunal
Finance Act 1944 Service Tax 1 - FY 2009 to FY 2011 Commissioner (Appeal)
Income-tax Act 1961 Income Tax 4 4 FY1996-1997 Supreme Court
Income-tax Act 1961 Income Tax 93 86 FY 1997-1998 and FY High Court of Karnataka
2002-2007
Income-tax Act 1961 Income Tax 154 - FY 2007-2009 and FY Income Tax Appellate Tribunal
2010-2011
Income-tax Act 1961 Income Tax 1483 - FY 2009-2010 Commissioner (Appeals)
Income-tax Act 1961 Income Tax 319 - FY 2011-2012 Dispute Resolution Panel
Income-tax Act 1961 Withholding tax 45 16 FY 2003-2004 to FY 2006- Income Tax Appellate Tribunal
2007 and FY 2011-2012
Income-tax Act 1961 Withholding tax 8 - FY 2012-2013 Commissioner (Appeals)

(viii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to a financial institution bank or government. The Company does nothave any borrowing by way of debenture.

(ix) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management and on an overall examination of the balance sheet we report thatmonies raised by way of term loan was applied for the purposes for which the loan wasobtained though funds amounting to Rs. 1326 million received by the Company on March 312016 which were not required for immediate utilisation have been invested in fixeddeposit and current account with bank. No monies were raised during the year by theCompany by way of initial public offer or further public offer (including debtinstruments).

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or material fraud on theCompany by its the officers or employees of the Company has been noticed or reportedduring the year.

(xi) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that the managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to the information andexplanations given by the management transactions with the related parties are incompliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the notes to the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) According to the information and explanations given to us the provisions ofSection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. Batliboi & Associates LLP

Chartered Accountants

ICAI Firm registration number: 101049W

per Aditya Vikram Bhauwala

Partner

Membership No.: 208382

Place: Bengaluru

Date: April 26 2016

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