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Cadila Healthcare Ltd.

BSE: 532321 Sector: Health care
NSE: CADILAHC ISIN Code: INE010B01027
BSE LIVE 15:42 | 22 Sep 489.15 -14.25
(-2.83%)
OPEN

504.00

HIGH

511.05

LOW

486.10

NSE 15:54 | 22 Sep 489.10 -15.35
(-3.04%)
OPEN

505.00

HIGH

511.00

LOW

487.10

OPEN 504.00
PREVIOUS CLOSE 503.40
VOLUME 56153
52-Week high 558.00
52-Week low 329.95
P/E 72.15
Mkt Cap.(Rs cr) 50,074
Buy Price 489.15
Buy Qty 74.00
Sell Price 0.00
Sell Qty 0.00
OPEN 504.00
CLOSE 503.40
VOLUME 56153
52-Week high 558.00
52-Week low 329.95
P/E 72.15
Mkt Cap.(Rs cr) 50,074
Buy Price 489.15
Buy Qty 74.00
Sell Price 0.00
Sell Qty 0.00

Cadila Healthcare Ltd. (CADILAHC) - Auditors Report

Company auditors report

To

The Members of

Cadila Healthcare Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of CADILA HEALTHCARELIMITED ("the Company") which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the statement of changes in equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information [in which areincorporated the returns for the year ended on that date audited by other auditor of theCompany's office at Philippines].

Management's Responsibility for the Financial Statements

The Company's management is responsible for the matters stated in section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation and presentationof these standalone financial statements that give a true and fair view of the financialposition financial performance (including other comprehensive income)cash flows and thechanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with relevant rules issued thereunder. This responsibilityalso includes the maintenance of adequate accounting records in accordance with theprovision of the Act for safeguarding of the assets of the Company and for preventing anddetecting the frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement 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 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 Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidences about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS of the financialposition of the Company as at March 31 2017 and its financial performance (includingother comprehensive income); and its cash flows and the changes in equity for the yearended 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 sub-section (11) of Section 143 ofthe Act we give in the "Annexure A" statement on the matters specified inparagraphs 3 and 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 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 [and proper returnsadequate for the purposes of our audit have been received from the branch not visited byus].

(c) The reports on the accounts of the branch office of the Company audited underSection 143 (8) of the Act by branch auditor have been sent to us and have been properlydealt with by us in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andthe statement of changes in equity dealt with by this Report are in agreement with thebooks of account [and with the returns received from the branch not visited by us].

(e) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder;

(f ) On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of section164(2) of the Act.

(g) 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".

(h) 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 - 28 to the standalone financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

iv. The Company has provided requisite disclosures in the standalone financialstatements as regards its holding and dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) dated November 8 2016 of the Ministry of Finance during theperiod from November 8 2016 to December 30 2016. Based on audit procedures performed andthe representations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management.

For MUKESH M. SHAH & CO.
Chartered Accountants
Firm Registration No.: 106625W
Mukesh M. Shah
Place: Ahmedabad Partner
Date: May 27 2017 Membership No.: 030190

Annexure A

Referred to in the Independent Auditors' Report of even date to the members of CADILAHEALTHCARE LIMITED on the Standalone Financial Statements for the year ended March 312017.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

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

(b) Some of the fixed assets were physically verified during the year by the managementin accordance with programme of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanations given to us no material discrepancies were noticed on such verification.In our opinion the frequency of verification of the fixed assets is reasonable havingregard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. (a) The inventories have been physically verified by the management during the year.In our opinion the procedures for the physical verification of inventory followed bymanagement are reasonable and adequate in relation to the size of the company and thenature of its business.

(b) In our opinion and according to the information and explanation given to us thecompany has maintained proper records of inventory. No material discrepancies were noticedon physical verification of inventory.

3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly clause (iii)(a) and (iii)(b) of paragraph of the Order are notapplicable to the company for the current year.

4. In our opinion and according to the information and explanations given to us theCompany has not given any loans guarantees or security or made any investments to whichprovisions of section 185 and 186 of the Act is applicable and accordingly paragraph 3(iv) of the Order is not applicable to the Company.

5. The Company has not accepted any deposits from the Public within the meaning of theprovisions of section 73 to 76 or any other relevant provisions of the Act and the rulesframed thereunder. Further according to the information and explanations given to us noorder has been passed by the Company Law Board of National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal in this regard.

6. We have broadly reviewed the books of accounts maintained by the Company pursuant tothe rules made by the Central Government for maintenance of cost records under subsection(1) of section 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome-tax Sales-tax Service tax Custom duty Excise duty Value Added Tax Cess andany other material statutory dues during the year with the appropriate authorities.Moreover as at March 31 2017 there are no such undisputed dues payable for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us the particulars of duesof Income tax Sales tax Excise duty and Service tax and other material statutory dues asat March 31 2017 which have not been deposited on account of any dispute are as follows:

Name of the Statute Nature of Dues Amounts involved Period to which the amount relates Forum where dispute is pending
( in Millions)
The Income Tax Act 1961 Income Tax 39.7 2008-09 2011-12 Income Tax Appellate Tribunal
0.08 2005-06 Commissioner of Income Tax (Appeals)
140.78 1996-97 1998-99 2001-02 Commissioner/ Deputy Commissioner/
The Central Sales Tax and Local Sales Tax Acts Sales Tax 2005-06 to 2014-15 Joint Commissioner of Sales Tax/ Revision Board/ Adjudicating Authority
9.06 1997-98 2001-02 Appellate Tribunal
9.47 Various cases for the period ACCE/DCCE/JCCE/Add.Comm.
1985-86 to 1988-89 1991-92 to 1998-99
20.94 Various Cases for the period Commissioner (Appeals)
The Central Excise Act and the Service Tax Act Excise Duty Service Tax 311.33 1997-98 2005-06 to 2015-16 Various cases for the period Central Excise and Service Tax
1995-96 to 1999-00 2003-04 to 2015-16 Appellate Tribunal
6.33 1994-95 1995-96 2006-07 2007-08 High Court/ Supreme Court

8. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not defaulted in repayment of loansor borrowings from any financial institution banks government or due to debentureholders during the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments). The term loans raised during the year have beenutilized by the company for the purpose for which the same has been taken.

10. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

11. According to the information and explanations given to us and on the basis of ourexamination of the books of account the managerial remuneration has been paid or providedin accordance with the requisite approvals mandated by the provisions of section 197 (withschedule V) of the Act.

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

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For MUKESH M. SHAH & CO.
Chartered Accountants
Firm Registration No.: 106625W
Mukesh M. Shah
Place: Ahmedabad Partner
Date: May 27 2017 Membership No.: 030190

Annexure B

Report on the Internal Financial Control clause (i) of sub-section 3 of section 143 ofthe Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of CadilaHealthcare Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial control 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 assets theprevention 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.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the Company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial impact 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 detectedalso projections 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 March 31 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 Institute of CharteredAccountants of India.

For MUKESH M. SHAH & CO.
Chartered Accountants
Firm Registration No.: 106625W
Mukesh M. Shah
Place: Ahmedabad Partner
Date: May 27 2017 Membership No.: 030190