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Cadila Healthcare Ltd.

BSE: 532321 Sector: Health care
NSE: CADILAHC ISIN Code: INE010B01027
BSE LIVE 15:40 | 09 Dec 391.15 -3.65
(-0.92%)
OPEN

394.70

HIGH

397.85

LOW

388.30

NSE LIVE 15:59 | 09 Dec 391.40 -4.30
(-1.09%)
OPEN

398.40

HIGH

399.00

LOW

388.25

OPEN 394.70
PREVIOUS CLOSE 394.80
VOLUME 23043
52-Week high 429.45
52-Week low 295.50
P/E 27.20
Mkt Cap.(Rs cr) 40042.03
Buy Price 0.00
Buy Qty 0.00
Sell Price 391.15
Sell Qty 694.00
OPEN 394.70
CLOSE 394.80
VOLUME 23043
52-Week high 429.45
52-Week low 295.50
P/E 27.20
Mkt Cap.(Rs cr) 40042.03
Buy Price 0.00
Buy Qty 0.00
Sell Price 391.15
Sell Qty 694.00

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 CADILAHEALTHCARE LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation [in which are incorporated the returns for the year ended on that date auditedby other auditor of the Company'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 and cash flows of the Company in accordance with theaccounting 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial 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 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 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 control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements of the Company 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:

1. in the case of the Balance Sheet of the state of affairs of the Company as at March312016;

2. in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

3. in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 offices of the Company audited undersection 143 (8) of the Act by branch auditors 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account [and with the returnsreceived 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 Rule 7 of theCompanies (Accounts) Rules 2014; and

(f) On the basis of the written representations received from the directors as on March31 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 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 standalonefinancial position in its standalone financial statements - Refer Note 20(A) to thefinancial statements;

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.

For Mukesh M. Shah & Co.
Chartered Accountants
Firm Registration No. 106625W
Place : Ahmedabad Mukesh M. Shah
Date : May 13 2016 Partner
Membership No. 030190

"Annexure A" referred to in the Independent Auditor's Report of even date tothe members of CADILA HEALTHcARE Limited on the Standalone Financial Statements for theyear ended March 31 2016.

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 except for the following cases where the transfer oftitle is under process as on the date of report:

Category Total Number ofcases leasehold/ freehold Gross Value [INR in Mto] Net Value [mR in Mw] Remarks
Building One Freehold 23 23 Deed of Conveyance executed by the Company pending receipt of registered document from the office of the SubRegistrar of Assurance.
Land One Leasehold 65 65 Transfer permission received by the Company from State Industrial and Infrastructure Authority the execution of lease deed is under process.

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 Act.Accordingly clause (iii)(a) and (iii)(b) of paragraph of the Order are not applicable tothe 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 rulesframes thereunder. Further according to the information and explanations given to us noorder has been passed by the Company Law Board or 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 sub-section(1) of section 148 of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

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 2016 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 312016 which have not been deposited on account of any dispute are as follows:

Name of the Statute Nature of Dues Amounts involved (Rs. in Millions) period to which the amount relates Forum where dispute is pending
The Income Tax Act 1961 Income Tax 7.40 2008-09 2009-10 Income Tax Appellate Tribunal
0.40 2005-06 2011-12 Commissioner of Income Tax (Appeals)
The Central Sales Tax and Local Sales Tax Acts Sales Tax 116.65 1996-97 1998-99 1999-00 2001-02 2004-05 to 2013-14 Commissioner/Deputy Commissioner/ Joint Commissioner of Sales Tax/ Revision Board/Adjudicating Authority
9.06 1997-98 2001-02 Appellate Tribunal
The Central Excise Act and the Service Tax Act Excise Duty Service Tax 9.47 Various cases for the period 1985-86 to 1988-89 1991-92 to 1998-99 ACCE/DCCE/JCCE/Add.Commissioner.
22.96 Various Cases for the period 1997-98 200506 to 2014-15 Commissioner (Appeals)
258.75 Various cases For the period 1995-96 to 1999-00 2003-04 to 2013-14 Central Excise and Service Tax 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 has beenutilised 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
Place : Ahmedabad Mukesh M. Shah
Date : May 13 2016 partner
Membership No. 030190

"Annexure B" to the Auditor's Report - March 31 2016

Report on the internal Financial control clause (i) of subsection 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 312016 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.

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 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 Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate Internal Financial Controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 2016 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
Place : Ahmedabad Mukesh M. Shah
Date : May 13 2016 Partner
Membership No. 030190

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