You are here » Home » Companies » Company Overview » Kilitch Drugs (India) Ltd

Kilitch Drugs (India) Ltd.

BSE: 524500 Sector: Health care
NSE: KILITCH ISIN Code: INE729D01010
BSE LIVE 13:42 | 20 Sep 64.10 -0.75
(-1.16%)
OPEN

64.10

HIGH

65.00

LOW

64.10

NSE 15:31 | 20 Sep 62.85 -1.15
(-1.80%)
OPEN

63.00

HIGH

65.00

LOW

62.20

OPEN 64.10
PREVIOUS CLOSE 64.85
VOLUME 1501
52-Week high 70.65
52-Week low 32.85
P/E
Mkt Cap.(Rs cr) 85
Buy Price 63.00
Buy Qty 250.00
Sell Price 64.00
Sell Qty 43.00
OPEN 64.10
CLOSE 64.85
VOLUME 1501
52-Week high 70.65
52-Week low 32.85
P/E
Mkt Cap.(Rs cr) 85
Buy Price 63.00
Buy Qty 250.00
Sell Price 64.00
Sell Qty 43.00

Kilitch Drugs (India) Ltd. (KILITCH) - Auditors Report

Company auditors report

To

The Members of

KILITCH DRUGS (INDIA) LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Kilitch Drugs (India) Limited("the Company") which comprise the Balance Sheet as at 31st March2016 Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the 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 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 maintenance of adequate accounting recordsin accordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofthe appropriate accounting policies; making judgements and estimates that are reasonableand prudent; 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 fair presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

i. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;

ii. In the case of the Statement of Profit and Loss of the Loss of the Company for theyear ended on that date.

iii. In the case of the Cash Flow Statement of the Cash Flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of section 143 of the Act(11 of 2013) we give in the "Annexure A" statement on the matters specified inparagraph 3 and 4 of the Order.

2. As required under provisions of 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the accountingstandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.\

e. On the basis of written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on March 312016 from being appointed as a director in terms of section164(2) of the Act.

f. With respect to the adequacy of the internal financial control 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 the pending litigations on its financialposition vide Note No. 22 (b) to the financial statements.

ii. The Company did not have any long term contracts including derivative contractsthat require provision under any law or accounting standards for which there were anymaterial foreseeable losses.

iii. There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company during the year.

For A. M. Ghelani & Company

Chartered Accountants

Firm Registration No. : 103173W

Chintan A. Ghelani

Partner

Membership No. : 104391

Date : 30th May 2016

Place : Mumbai

Annexure A referred to in paragraph 1 under the heading Report on other legal andregulatory requirements of our report of even date

i) In respect of its Fixed Assets :

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of its Fixed Assets which we are informed are beingupdated.

b. As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c. In our Opinion and According to the information and explanations given to us titleDeeds of immovable properties are held in the name of company.

ii) In respect of its Inventories :

a. As explained to us inventories have been physically verified by the management atthe end of the year. In our opinion the frequency of verification is reasonable.

b. According to the information and explanations given to us in our opinion theprocedures of physical verification of stocks followed by the management are reasonableand adequate in relation to the size of the company and the nature of its business.

c. The Company is maintaining proper records of its inventory. No materialdiscrepancies were noticed on verification between the physical stocks and book recordshaving regards to the size of the operations of the company.

iii) The Company has not granted any loans secured or unsecured to Companies / firmsor other parties covered in the register maintained under section 189 of the Act.Consequently the requirement of Clause (iii) (a) and Clause (iii) (b) of paragraph 3 ofthe Order not applicable to the company.

iv) According to the information and explanations given to us the Company has notgranted any loans guarantee and has not purchased security of other body corporate.Therefore the provision of Clause (iv) of paragraph 3 of the Order not applicable to theCompany.

v) According to the information and explanations given to us the company has notaccepted any deposits within the meaning of provisions of section 73 to 76 or any otherrelevant provisions of the Act and rules framed hereunder. Therefore provisions of Clause(v) of paragraph 3 of the Order are not applicable to the company.

vi) We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Accounting Records) Rules 2014 prescribed by the Central Government underSub Section (1) of Section 148 of the Act and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

vii) In respect of Statutory dues :

a. According to the records of the Company undisputed statutory dues includingProvident Fund Employees’ State Insurance Income Tax Sales Tax Service Tax Dutyof Customs Duty of Excise Value Added Tax Cess and other material statutory dues whichare applicable to the company have been regularly deposited with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the aforesaid dues were outstanding as at March 31 2016 fora period of more than six months from the date of becoming payable.

b. According to the records examined by us and the information and explanation given tous the disputed statutory dues aggregating to Rs. 50305650/-that have not been depositedon account of the matters pending before the appropriate authorities are as under:

Name of the Statute Nature of Dues Amount in Rupees Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 50305650 A.Y. 2008-09 CIT (Appeals)

viii) According to the records examined by us and the information and explanation givento us we are of the opinion that the company has not defaulted in re-payment of dues ifany to financial institutions/banks.

ix) The Company has not obtained any term loans during the year under report.

x) In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year.

xi) Based upon the audit procedures performed and information and explanation given bythe management the managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provision of section 197 read with "schedulev" to the companies Act 2013.

xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause (xii) of the Paragraph 3 of the Order are not applicable to the Company.

xiii) In our opinion and as per the information & explanations given to us all thetransactions with related parties are in compliance with section 177 and 188 of TheCompanies Act 2013 and the details have been disclosed in the Financial Statements asrequired by the applicable Accounting Standards.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause (xiv) of paragraph 3 of the Order are not applicable to the Company.

xv) The Company has not entered into any Non-Cash transaction with Director or Personsconnected with him. Hence the requirements of Clause (xv) of paragraph 3 of the Order arenot applicable to the Company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and accordingly the provisions of Clause (xvi) of the paragraph 3of Order are not applicable to the Company

For A. M. Ghelani & Company

Chartered Accountants

Firm Registration No. : 103173W

Chintan A. Ghelani

Partner

Membership No. : 104391

Date : 30th May 2016

Place : Mumbai

"Annexure B" referred to in paragraph 1 under the heading Report on otherlegal and regulatory requirements of 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 internal financial controls over financial reporting of KilitchDrugs (India) Limited ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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". 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 assetsthe prevention 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 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 March 31 2016 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For A. M. Ghelani & Company

Chartered Accountants

Firm Registration No. : 103173W

Chintan A. Ghelani

Partner

Membership No. : 104391

Date : 30th May 2016

Place : Mumbai