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Hikal Ltd.

BSE: 524735 Sector: Health care
NSE: HIKAL ISIN Code: INE475B01022
BSE LIVE 15:40 | 23 Aug 202.75 -1.45
(-0.71%)
OPEN

204.00

HIGH

206.45

LOW

202.50

NSE 15:56 | 23 Aug 202.85 -1.25
(-0.61%)
OPEN

203.35

HIGH

206.00

LOW

202.30

OPEN 204.00
PREVIOUS CLOSE 204.20
VOLUME 12237
52-Week high 256.10
52-Week low 161.75
P/E 24.08
Mkt Cap.(Rs cr) 1,667
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 204.00
CLOSE 204.20
VOLUME 12237
52-Week high 256.10
52-Week low 161.75
P/E 24.08
Mkt Cap.(Rs cr) 1,667
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hikal Ltd. (HIKAL) - Auditors Report

Company auditors report

Independent Auditors’ Report

To the members of Hikal Limited

Report on the standalone financial statements

We have audited the accompanying standalone financial statements of Hikal Limited ('theCompany') which comprise the Balance Sheet as at 31 March 2016 and the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's responsibility for the standalone 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement 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 thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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 of the state of affairs of the Companyas at 31 March 2016 and 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 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the “Annexure A” a statement on the matters specified in paragraphs 3and 4 of the said Order to the extent applicable.

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;

(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 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 31 March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 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 B"; and

(g) with respect to the other matters to be included in the Auditors' 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 26 to the standalone financial statements;

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

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2016.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Aniruddha Godbole
Mumbai Partner
6 May 2016 Membership No: 105149

Annexure A to the Independent Auditors’ Report - 31 March 2016

With reference to the Annexure A referred to in the Independent Auditors’ Reportto the members of the Company on the standalone financial statements for the year ended 31March 2016 we report the following: (i) (a) The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assetswhich includes freehold and leasehold land by which all fixed assets are is verified in aphased manner over a period of three years In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. In accordance with the above programme the Company has verified certain fixedassets during the year and we are informed that no discrepancies were noticed on suchverification.

(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 asdisclosed in Note 11 to the standalone financial statements are held in the name of theCompany (ii) The inventory except goods-in-transit and stocks lying with third partieshas been physically verified by the management during the year. In our opinion thefrequency of such verification is reasonable. For stocks lying with third parties at theyear-end written confirmations have been obtained. The discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen dealt with in books of account. (iii) (a) The Company has granted interest free loansto a body corporate covered in the register maintained under Section 189 of the CompaniesAct 2013 ('the Act'). The Company has not granted any loans secured or unsecured tocompanies firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Act. In our opinion the rate of interest and otherterms and conditions on which loans have been granted to a body corporate listed in theregister maintained under Section 189 of the Act are not prima facie prejudicial to theinterest of the Company (b) The interest free loans granted to a body corporate covered inthe register maintained under Section 189 of the Act does not have stipulations withregard to the repayment of principal. Accordingly we are unable to comment on theregularity of repayment of principal.

(c) The interest free loans granted to a body corporate covered in the registermaintained under Section 189 of the Act does not have stipulations with regard to therepayment of principal. Accordingly we are unable to comment whether there is any amountoverdue for more than ninety days in respect of such loans.

(iv) In our opinion and according to the information and explanations given to us inrespect of the loans given to a body corporate the Company has complied with theprovisions of Section 185 and 186 of the Act. The Company has not made any investmentgiven any guarantee or provided any security under Section 185 and 186 of the Act.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia under the provisions of Sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under. Accordingly paragraph 3 (v) of the Order is notapplicable to the Company.

(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 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 records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Service tax Sales tax Value added tax Professional tax Duty of customsDuty of excise Cess and other material statutory dues have been regularly deposited withthe appropriate authorities. According to the information and explanations given to us andon the basis of our examination of records of the Company amounts deducted/ accrued inthe books of account in respect of

Income tax have generally been regularly deposited with the appropriate authoritiesthough there have been slight delay in a few cases According to the information andexplanations given to us no undisputed amounts payable in respect of Provident fundEmployees' State Insurance Income tax Service tax Sales tax Value added taxProfessional tax Duty of customs Duty of excise Cess and other material statutory dueswere in arrears as at 31 March 2016 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us there are no dues ofService tax Sales tax Value added tax and Duty of customs which have not been depositedwith the appropriate authorities on account of any dispute. According to the informationand explanations given to us the following dues of Income-tax and Duty of excise have notbeen deposited as on 31 March 2016 by the Company on account of disputes:

Name of the statute Nature of the dues Demand ( Rs. ) Amount not deposited on A/c of demand ( Rs. ) Period to which the amount relates Forum where dispute is pending
Income tax Act 1961 Income-tax 1966691 1966691 2001-02 Deputy Commissioner of Income-tax
Income tax Act 1961 Income-tax 3768299 3768299 2002-03 Deputy Commissioner of Income-tax
Income tax Act 1961 Income-tax 5674485 5674485 2003-04 Deputy Commissioner of Income-tax
Income tax Act 1961 Income-tax 15292537 15292537 2006-07 Deputy Commissioner of Income-tax
Income tax Act 1961 Income-tax 3046111 3046111 2007-08 Deputy Commissioner of Income-tax
Income tax Act 1961 Income-tax 5465280 5465280 2009-10 Commissioner of Income-tax (appeals)
Income tax Act 1961 Income-tax 1805620 1805620 2010-11 Commissioner of Income-tax (appeals)
Central Excise Act 1932 Excise duty 40126609 34126609 July-2007 to Customs Excise and Service Tax
December-2011 Appellate Tribunal Bangalore

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to financial institutions or banks. TheCompany does not have any loans or borrowings from government or dues to debenture holdersduring the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. In our opinion and according tothe information and explanations given to us the term loans taken by the Company havebeen applied for the purpose for which they are raised.

(x) 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.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) 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.

(xiii) 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 Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give 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. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

(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. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Mumbai
Aniruddha Godbole
6 May 2016
Partner
Membership No: 105149

Annexure B to the Independent Auditors’ Report - 31 March 2016

(Referred to in our report of even date)

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 internalfinancial controls over financial reporting of Hikal Limited (“the Company”) asof 31 March 2016 in conjunction with our audit of the standalone financial statements ofthe 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”). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 deemed tobe 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 Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout 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 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 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 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 internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 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 ICAI.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Mumbai
Aniruddha Godbole
6 May 2016
Partner
Membership No: 105149