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Pfizer Ltd.

BSE: 500680 Sector: Health care
NSE: PFIZER ISIN Code: INE182A01018
BSE LIVE 15:40 | 17 Nov 1928.20 10.00
(0.52%)
OPEN

1944.00

HIGH

1948.00

LOW

1918.00

NSE 15:41 | 17 Nov 1934.30 7.85
(0.41%)
OPEN

1927.40

HIGH

1945.65

LOW

1916.20

OPEN 1944.00
PREVIOUS CLOSE 1918.20
VOLUME 1535
52-Week high 1999.00
52-Week low 1625.00
P/E 30.68
Mkt Cap.(Rs cr) 8,822
Buy Price 1933.00
Buy Qty 41.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1944.00
CLOSE 1918.20
VOLUME 1535
52-Week high 1999.00
52-Week low 1625.00
P/E 30.68
Mkt Cap.(Rs cr) 8,822
Buy Price 1933.00
Buy Qty 41.00
Sell Price 0.00
Sell Qty 0.00

Pfizer Ltd. (PFIZER) - Auditors Report

Company auditors report

To The Members of Pfizer Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Pfizer Limited("the Company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement of CashFlows the Statement of Changes in Equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "financial statements").

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 financial statements that give a true and fair view of the financial positionfinancial performance (including other comprehensive income) cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (IND AS) specified under Section 133 ofthe Act read with relevant rules issued thereunder.

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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including the IND AS of the financial position ofthe Company as at 31 March 2017 and its financial performance including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

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 ‘Annexure A' a statement on the matters specified in paragraphs3 and 4 of the Order.

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 purpose 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 financial statements comply with the IndianAccounting Standards (IND AS) specified under Section 133 of the Act read with relevantrules issued thereunder;

(e) On the basis of the written representations received from the directors as on 31March 2017 and 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'; 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 financial statements; – Refer Note 42 and 44 to the financialstatements;

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 during the year ended 31 March2017.

iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016. Based on the audit procedures performed and relying onmanagement representations we report that the disclosures made by the Company are inaccordance with the books of accounts maintained by the company – Refer Note 47 tothe financial statements.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sadashiv Shetty
Mumbai Partner
6 May 2017 Membership No: 048648

Annexure A to the Independent Auditor's Report-31 March 2017

(Referred to in our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. Certain fixed assets were verifiedduring this year as per this program. No material discrepancies were noticed on suchverification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of an examination of the records of the Company the title deed of the immovableproperties as disclosed in Note 6 and 18 to the financial statements are held in the nameof the Company.

(ii) The inventory has been physically verified by the management at reasonableintervals during the year. For stocks lying with third parties at the year-end writtenconfirmations have been obtained. The discrepancies noticed during the physicalverification of inventories as compared to book records were not material and have beenproperly dealt with 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 firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly paragraph 3 (iii) of the order is not applicable.

(iv) 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.

(v) The Company has not accepted any deposits from the public within the meaning ofSection 73 to 76 of the Act. Accordingly paragraph 3 (v) of the order is not applicable.

(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 in relation to products manufactured and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Wehave not however made a detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the books of account of the Company amounts deducted/accrued in thebooks of account in respect of undisputed statutory dues including provident fundemployees' state insurance income tax sales tax value added tax service tax duty ofcustoms duty of excise cess and other material statutory dues have been generallyregularly deposited with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxvalue added tax service tax duty of customs duty of excise cess and other materialstatutory dues were in arrears as at 31 March 2017 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us the dues set out inAppendix I in respect of income tax sales tax service tax duty of customs value addedtax and duty of excise have not been deposited by the Company with the appropriateauthorities on account of disputes.

(viii) The Company did not have any outstanding dues to any financial institutionbanks or debenture holders during the year.

(ix) The Company did not raise money by way of initial public offer or further publicoffer (including debt instruments) or term loans during the year.

(x) 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.

(xi) According to the information and explanation given to us the managerialremuneration paid to the directors is in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V of 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.

(xiii) According to the information and explanation given to us the Company hasentered into transactions with related parties in compliance with the provisions ofSections 177 and 188 of the Act. The details of such related party transactions have beendisclosed in the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanation given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.

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

(xvi) According to the information and explanation 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.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sadashiv Shetty
Mumbai Partner
6 May 2017 Membership No: 048648

Appendix 1 as referred to in paragraph (vii) (b) of Annexure A to the IndependentAuditors' report

Name of the Statute Forum where dispute is pending Period to which the amount relates Nature of dues Amount (Rs. in lakhs)
The Income tax Act 1961 Commissioner of Income tax Appeals 2004-05 to 2008-09 2010-15 Tax and Interest 10071.67
Commissioner of Income tax Appeals 2010 – 2013 Non-deduction/ short deduction 4513.30
Income Tax Appellate Tribunal 1994-95 1999-2000 2002-03 2007 – 2010 Tax and interest 12352.06
Income Tax Appellate Tribunal 2004-10 Non-deduction/ short deduction 67.84
The Central Excise Act 1944 Customs Excise Service Tax Appellate tribunal 1985-2006 Duty and penalty 1043.04
Assistant Commissioner of Central Excise 1975 to 1982 1986-1987 1993 1996 to 1999 Duty including interest and penalty 270.11
Supreme Court of India 1998 Duty and penalty 14.55
Commissioner (Appeals) 1992 to 1997 and 2005-06 Duty and penalty 662.56
Bombay High Court 2004-2005 Duty and penalty 2.24
Customs Act 1962 Commissioner of Appeals 1995 Duty and penalty on imports and other disputes 1.06
Supreme Court of India 1996-1997 Duty and penalty on imports and other disputes 41.92
The Finance Act 1994 (Service Tax) Bombay High Court 1997-2001 Duty and penalty 193.11
Value Added Tax Act and State and Central Sales Tax Additional Commissioner 1995-96 1997-98 to 1998-99 2008-09 to 2014-15 Tax 176.81
Assessing authority 2006-07 2008-09 to 2011-12 Tax and penalty 68.85
Assistant Commissioner 1986-87 and 2004-05 2011-12 2013-14 Tax 48.18
Commissioner 2002-03 2005-09 Tax 108.51
Deputy Commissioner 1993-94 to 1994-95 1996-97 1998-99 to 2012 -13 Tax 4536.25
First Appellate Authority 2005-06 to 06-07 2008-09 to 2009-10 2012-13 Tax Interest and penalty 314.73
Joint Commissioner 1983-84 1985-86 to 1986 – 87 1995-96 1998 -99 to 2007- 08 2009 – 10 to 2013-14 Tax Interest and penalty 14583.07
Revision board 2006-07 to 2009-10 Tax 15.26
Supreme Court of India 1992-93 Tax 10.27
Senior Joint Commissioner 2003-04 Tax 8.46
High Court 1995-96 2012-13 to 2013-14 Tax and interest 194.02
Tribunal 1994-95 to 1996-97 2003-04 Tax 199.57
2005-06 to 2008-09 2011-12

Annexure ‘B' to the Independent Auditor's Report-31 March 2017

Report on the internal financial controls over financial reporting under clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of PfizerLimited ("the Company") as of 31 March 2017 in conjunction with our audit ofthe Ind AS financial statements of the 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (‘the Guidance Note‘) issued by the Institute of Chartered Accountantsof India. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financial controlover financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note and the Standards onAuditing issued by the Institute of Chartered Accountants of India 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 Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively 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 controls over financial reporting included obtainingan understanding of internal financial controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedure selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Ind AS 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 overfinancial 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 financial reporting includes those policiesand 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 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 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 control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Sadashiv Shetty
Mumbai Partner
6 May 2017 Membership No: 048648