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Jubilant Life Sciences Ltd.

BSE: 530019 Sector: Health care
NSE: JUBILANT ISIN Code: INE700A01033
BSE LIVE 15:40 | 17 Oct 644.50 -11.40
(-1.74%)
OPEN

659.00

HIGH

660.30

LOW

641.80

NSE 15:48 | 17 Oct 643.70 -13.90
(-2.11%)
OPEN

657.60

HIGH

662.85

LOW

641.60

OPEN 659.00
PREVIOUS CLOSE 655.90
VOLUME 22140
52-Week high 879.10
52-Week low 515.00
P/E 127.62
Mkt Cap.(Rs cr) 10,267
Buy Price 644.50
Buy Qty 4.00
Sell Price 0.00
Sell Qty 0.00
OPEN 659.00
CLOSE 655.90
VOLUME 22140
52-Week high 879.10
52-Week low 515.00
P/E 127.62
Mkt Cap.(Rs cr) 10,267
Buy Price 644.50
Buy Qty 4.00
Sell Price 0.00
Sell Qty 0.00

Jubilant Life Sciences Ltd. (JUBILANT) - Auditors Report

Company auditors report

To the Members of Jubilant Life Sciences Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of JubilantLife Sciences Limited ("the Company") which comprise the Balance Sheet as at 31March 2017 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash Flows the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "the 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 ("the Act") with respect to the preparation 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 Indian Accounting Standards ("IndAS") prescribed under Section 133 of the Act read with the relevant rules issuedthereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS 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 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 of the standalone Ind AS financial statements in accordance withthe Standards on Auditing 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 standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial 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 31 March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear 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 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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act read withrelevant rules issued thereunder.

(e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act.

(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".

(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 38(B) and 38(C) to the standalone Ind AS financial 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 - Refer Note 46 to the standalone Ind AS financial statements;

(iii) there has been no delay in transferring amounts required to be transferred tothe investor education and protection fund by the Company; and

(iv) the Company has provided requisite disclosures in the standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016. Based on the audit procedures performed by usand relying on the management representation we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe management - Refer Note 47 to the standalone Ind AS financial statements.

For B S R & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 101248W/W-100022
Pravin Tulsyan
Place: Noida Partner
Date: 23 May 2017 Membership No.: 108044

Annexure A to the Independent Auditor's Report

The Annexure A referred to in our report to the members of the Company for the yearended 31 March 2017. We report that:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) According to the information and explanations given to us the Company has aregular programme of physical verification of its fixed assets by which fixed assets areverified in a phased manner over a period of three years. In accordance with thisprogramme certain fixed assets were verified during the year. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. As informed to us the discrepancies noticed on suchverification were not material and have been properly adjusted in the books of account.

(c) According to the information and explanations given to us and on the basis of ourexamination of the books of account the title deeds of immovable property are held in thename of the Company.

(ii) The inventory except goods-in-transit and stocks lying with third parties hasbeen physically verified by the management during the year. In our opinion the frequencyof such verification is reasonable. For stocks lying with third parties at the year-endwritten confirmations have been obtained. As informed to us the discrepancies noticed onverification between the physical stocks and the book records were not material and havebeen properly adjusted in the books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Act. As informedto us there are no firms covered in the register maintained under section 189 of the Act.Accordingly paragraph 3(iii) of the Order is not applicable.

(iv) According to the information and explanations given to us in respect of loans andinvestments made by the Company the provisions of section 185 and 186 of the Act havebeen complied with. As informed to us the Company has not provided any guarantee orsecurity as specified under Section 185 and 186 of the Act.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public. Accordingly paragraph 3(v) of the Order is notapplicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules specified by the Central Government for maintenance of cost records undersection 148(1) of the Act in respect of its products and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot carried out a detailed examination of the records with a view to determine whetherthese are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues have generally been regularly depositedwith the appropriate authorities.

According to the information and explanations given to us no amounts payable inrespect of undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand other material statutory dues were in arrears as at 31 March 2017 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofsales-tax which have not been deposited with the appropriate authorities on account of anydispute. According to the information and explanations given to us the following dues ofincome-tax service tax duty of customs duty of excise and value added tax have not beendeposited by the Company on account of disputes:

Name of the Statute Nature of the Dues Amount involved* (' in million) Amount paid under protest (' in million) Financial year to which the amount relates Forum where dispute is pending
Income-tax Act 1961 Income Tax 261.56 1988-89 2001-02 2003-08 Income Tax Appellate Tribunal
Central Excise Act Excise Duty 280.51 - 2006-2010 High Court
1944 3.03 - 2003-07 Custom Excise and Service
247.13** - 2003-11 Tax Appellate Tribunal
8.31 0.05 2010-14 Commissioner (Appeals)
648.66 - 2008-15 Commissioner
2.47 - 2011-15 Assistant Commissioner
Finance Act 1994 Service Tax 1.70 - 2006-07 High Court
5.74 0.05 2007-11 Custom Excise and Service Tax Appellate Tribunal
Customs Act 1962 Customs Duty 12.04 - 2012-14 Commissioner (Appeals)
0.01 - 2006-07 Assistant Commissioner
Uttar Pradesh Value Value Added 66.75 - 2010-16 Supreme Court
Added Tax Act Tax 27.36 - 2014-15 Deputy commissioner
2008 0.21 0.40 2015-16 Assistant Commissioner

* amount as per demand orders including interest and penalty wherever indicated in theorder.

** a stay order has been received against the amount disputed and hence not deposited.

The above table excludes the disputed cases pertaining to the businesses demerged intoJubilant Industries Limited pursuant to the Scheme of Amalgamation and Demerger assanctioned by Hon'ble Allahabad High Court in the earlier year and businesses transferredinto Jubilant Generics Limited though some of the same are still being pursued in theCompany's name.

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to its bankers or to any financial institutions and dues to debenture holders.The Company did not have any loans or borrowings from government during the year.

(ix) Based on our examination of books of account and according to the information andexplanations given to us the term loans taken during the year have been applied for thepurposes for which they were obtained. Further moneys raised through issue ofnon-convertible debentures have been applied for the purposes for which they wereobtained partially during the year and the balance was utilized subsequent to the yearend for the purposes for which they were raised. As informed to us the Company has notraised any other moneys by way of initial public offer or further public offer (includingdebt instruments).

(x) Based on our examination of the books of account and according to the informationand explanations given to us no fraud by the Company and no fraud on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(xi) Based on our examination of the books of account and according to the informationand explanations given to us the Company has paid / provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V of the Act.

(xii) According to the information and explanations given to us the Company is not anidhi company. Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) Based on our examination of the books of account and according to theinformation and explanations given to us all transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and the details have beendisclosed in the standalone financial statements as required by the applicable accountingstandards.

(xiv) Based on our examination of the books of account and according to the informationand explanations given to us the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the Order is not applicable.

(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.

For B S R & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 101248W/W-100022
Pravin Tulsyan
Place: Noida Partner
Date: 23 May 2017 Membership No.: 108044

Annexure B to the Independent Auditor's Report of even date on the standalone Ind ASfinancial statements of Jubilant Life Sciences Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of JubilantLife Sciences Limited ("the Company") as of 31 March 2017 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India (‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required 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 and the Standards on Auditing issued by ICAI and deemed to beprescribed 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto 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 controls 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 controls 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) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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 controlsover 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 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note issued by theICAI.

For B S R & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 101248W/W-100022
Pravin Tulsyan
Place: Noida Partner
Date: 23 May 2017 Membership No.: 108044