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Indoco Remedies Ltd.

BSE: 532612 Sector: Health care
NSE: INDOCO ISIN Code: INE873D01024
BSE LIVE 15:41 | 15 Dec 274.95 -3.75
(-1.35%)
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HIGH

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NSE 15:42 | 15 Dec 275.50 -3.30
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OPEN 278.25
PREVIOUS CLOSE 278.70
VOLUME 5073
52-Week high 314.00
52-Week low 179.00
P/E 75.54
Mkt Cap.(Rs cr) 2,534
Buy Price 0.00
Buy Qty 0.00
Sell Price 274.95
Sell Qty 1.00
OPEN 278.25
CLOSE 278.70
VOLUME 5073
52-Week high 314.00
52-Week low 179.00
P/E 75.54
Mkt Cap.(Rs cr) 2,534
Buy Price 0.00
Buy Qty 0.00
Sell Price 274.95
Sell Qty 1.00

Indoco Remedies Ltd. (INDOCO) - Auditors Report

Company auditors report

to the Members of Indoco Remedies Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of IndocoRemedies Limited ("the Company") which comprise the Balance Sheet as atMarch 312017 the Statement of Profit and Loss including other comprehensive income CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as 'standalone Ind AS financial statements').

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation and presentation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards(Ind AS) specified underSection 133 of the Act read with the relevant rules issued there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding the assets of the Company and for preventing anddetecting 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 controlsthat wereoperating effectively for ensuring the accuracy and completeness of the accountingrecordsrelevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements 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 including the Ind AS of thefinancial position of the Company as at March 312017 and its financial performanceincluding other comprehensive income its cash flows and 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 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 purposes of our audit;

b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c) the Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

d) in our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rulesissued there under;

e) on the basis of written representations received from the directors as on March312017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 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 standalone Ind AS financial statements - Refer note 32 to the standaloneInd AS 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.

iv) the Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 5c to the standalone Ind AS financialstatements.

For PATKAR & PENDSE
Chartered Accountants
Firm Registration No:107824W
B. M. PENDSE
Place : Mumbai Partner
Date : May 26 2017 M. No. 32625

ANNEXURE

to Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the

standalone Ind AS financial statements for the year ended March 31 2017 we reportthat:

1. (a) The Company had maintained proper records showing full particulars includingquantitative

details and situation of the fixed assets.

(b) As explained to us all fixed assets had been physically verified by the managementduring the year in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification.

(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. As explained to us inventories have been physically verified by the management atreasonable intervals and in our opinion and as explained to us there were no materialdiscrepancies noticed on physical verification of inventories as compared with the booksof account..

3. The Company has granted loan to one body corporate covered in the registermaintained under Section 189 of Companies Act2013.

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the bodies corporate listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company.

(b) In the case of loan granted to the body corporate listed in the register maintainedunder Section 189 of the Act the borrower has been regular in the payment of the interestas stipulated.

(c) There is no overdue amount in respect of the loan granted to the body corporatelisted in the register maintained Section 189 of the Act.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and investments made.

5. According to the information and explanation given to us the Company has notaccepted any deposits from the public.

6. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government underSection 148(1)(d) of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and cost records have been maintained. We have however 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 explanation given to us and on the basis of ourexamination of

the records of the Company amounts deducted / accrued in the books of account inrespect of 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 have been regularly deposited during the year with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were in arrears as at March312017 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us there are no dues ofcustoms duty and service tax that have not been deposited on account of any dispute.However according to the information and explanation given to us the following dues ofincome tax central excise and sales tax have not been deposited by the Company on accountof disputes:

Sr

No

Particular Financial year to which matter pertains Forum where dispute is pending Amount Rupees in Lakhs
1 Income Tax Act 1961 2007-08 DCIT(TDS) Mumbai 0.59
2008-09 DCIT(TDS) Mumbai 0.11
2009-10 DCIT(TDS) Mumbai 7.3 7
2010-11 DCIT(TDS) Mumbai 4.45
2011-12 DCIT(TDS) Mumbai 0.58
2012-13 DCIT(TDS) Mumbai 0.39
2013-14 DCIT(TDS) Mumbai 0.60
2014-15 DCIT(TDS) Mumbai 1.47
2015-16 DCIT(TDS) Mumbai 0.15
2 Central Excise Act 1944 1995-96 CESTAT 0.66
1997-98 Divisional Dy. Comn. Boisar 3.40
1997-98 Honbl. Supreme Court 2.92
1997-98 Divisional Dy. Comn. Mumbai 0.98
1998-99 Divisional Dy. Comn. Boisar 1.64
2005-06 Divisional Dy. Comn. Goa 1.25
2006-07 CESTAT 91.97
2007-08 Commissioner of Service tax Mumbai 247.21
Various CESTAT 11.20
2010-14 Principal Commissioner of Central Excise Raigad 139.78
3 Sales Tax 2005-09 The Commercial Tax Officer Nacharam Circle A.P. 94.90
2007-08 Commissioner Goa Sales Tax 9.03
2009-10 Commissioner Goa Sales Tax 11.18
2012-13 The Commercial Tax Officer Nacharam Circle A.P. 24.60
2013-14 The Commercial Tax Officer Nacharam Circle A.P. 91.29

8. In our opinion and according to the information and explanations given to us theCompany had not defaulted in repayment of dues to a financial institution bankGovernment or debenture holder.

9. In our opinion and according to the information and explanations given to us theCompany has raised term loans and the term loans so raised have been applied for thepurpose for which these were obtained. The Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments).

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give 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.

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.

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 Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.

14. 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.

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.

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

For PATKAR & PENDSE
Chartered Accountants
Firm Registration No:107824W
Place : Mumbai B. M. PENDSE

Partner

Date : May 26 2017 M. No. 32625

ANNEXURE - B

to the Auditors' 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 IndocoRemedies Limited ("the Company") as of March 312017 in conjunction with ouraudit of the Standalone Ind AS financial statements of the Company for the year ended onthat 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 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 Companies Act 2013.

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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 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 judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor 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 that transactions arerecorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of theCompany are being made only in accordance with authorisations of management and directorsof the Company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assets thatcould 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 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 PATKAR & PENDSE
Chartered Accountants
Firm Registration No:107824W
B. M. PENDSE
Place : Mumbai Partner
Date : May 26 2017 M. No. 32625