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Bal Pharma Ltd.

BSE: 524824 Sector: Health care
NSE: BALPHARMA ISIN Code: INE083D01012
BSE 00:00 | 20 Jul 70.50 -1.20
(-1.67%)
OPEN

73.20

HIGH

73.20

LOW

70.05

NSE 00:00 | 20 Jul 70.80 -0.25
(-0.35%)
OPEN

70.50

HIGH

72.60

LOW

70.10

OPEN 73.20
PREVIOUS CLOSE 71.70
VOLUME 1029
52-Week high 128.00
52-Week low 69.55
P/E 16.83
Mkt Cap.(Rs cr) 100
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 73.20
CLOSE 71.70
VOLUME 1029
52-Week high 128.00
52-Week low 69.55
P/E 16.83
Mkt Cap.(Rs cr) 100
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bal Pharma Ltd. (BALPHARMA) - Auditors Report

Company auditors report

TO THE MEMBERS OF BAL PHARMA LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of BAL PHARMA LIMITED("the company") which comprise the balance sheet as at 31 March 2017 thestatement of profit and loss the cash flow statement for the year then ended and asummary of significant 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; 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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'sjudgment 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 management and Board of Directors as well as evaluatingthe overall presentation of 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 31st March 2017 its profits and its 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 ("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' statement on the matters specified in paragraphs3 and 4 of the 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

(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 and with the returnsreceived from branches not visited by us.

(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 the written representations received from the directors as on 31March 2017 taken on record by Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of section 164(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 if any of pending litigations as at 31 March2017 on its financial position in its financial statements - Refer Note 38 to thefinancial 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 to theInvestor Education and Protection Fund by the company.

iv) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and these are in accordance with the books ofaccount maintained by the company. Refer Note 48 to the standalone financial statements.

For M/s T D JAIN AND D I SAKARIA

Chartered Accountants

Firm registration no: 002491S

T D JAIN

Partner

M. No.: 012034

Bengaluru

30 May 2017

Annexure-A to the Independent Auditor's Report

(The annexure referred to in paragraph 1 under the heading "Report on other legaland regulatory requirements" of our report of even date to the members of Bal PharmaLimited for the year ended 31 March 2017)

i. In respect of its fixed assets

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

(b) As informed to us by the management the Company has a policy of physicallyverifying fixed assets in a phased manner over a period which in our opinion isreasonable having regard to the size of the Company and the nature of its assets.

We are informed that there were no material discrepancies noticed on such verification.

(c) The title deeds of all the immovable properties are held in the name of thecompany.

ii. As explained to us the inventories have been physically verified by the Managementat reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable. The discrepancies noticed on such physical verificationbetween physical stock and book records were not material and have been adequately dealtwith in the books of account.

iii. The Company has granted unsecured loans to companies and Limited LiabilityPartnerships covered in the register maintained under Section 189 of the Companies Act2013 (‘the Act').

(a) We are unable to comment as to whether the terms and conditions of the loansgranted to the companies and Limited Liability Partnerships covered in the registermaintained under Section 189 of the Act are not prejudicial to the Company's interest asthere has been no stipulation with respect to the same.

(b) We are unable to comment on the repayment of loans granted to companies and LimitedLiability Partnerships covered in the register maintained under Section 189 of the Act asthere has been no stipulation with respect to the repayment of such loans or the paymentof interest.

(c) We are also unable to ascertain the overdue amount as there has been no stipulationwith respect to the repayment of such loans or the payment of interest.

iv. In respect of loans investments and guarantees the provisions of Section 185 and186 of the Companies Act 2013 have been complied with.

v. The Company has not accepted any deposits to which the provisions of Section 73 to76 or any other relevant provisions of the Companies Act and the rules framed there underand the directions issued by the RBI are applicable. Hence paragraph 3(v) of CARO is notapplicable to the Company.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Accounting Records) Rules as amended specified by the Central Governmentunder Section 148(1) of the Companies 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. According to information and explanations given to us:

(a) The Company has generally been regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employees State Insurance Income TaxSales Tax Service Tax Customs Duty Excise Duty Cess and other material statutory duesapplicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of income tax service tax sales tax customs duty excise duty andcess were in arrears as at 31 March 2017 for a period of more than six months from thedate they became payable.

(b) On the basis of our examination of the documents and records of the Company thereare no dues of Income Tax Sales Tax Service Tax Customs Duty Excise Duty and Cesswhich have not been deposited on account of an any dispute except as enumerated hereinbelow which are pending before respective authorities as mentioned there against:

Name of Statue Nature of dues Forum where dispute is pending Period(s) to which the amount relates Amount involved* ( Rs )
Chapter V of Finance Act 1994 Service Tax and equivalent penalty Commissioner of Central Excise Nov 2007 to March 2012 8588511
The Central Excise Act 1944 Central Excise Duty and Penalty Commissioner of Central Excise January to October 2010 288356
The Central Excise Act 1944 Central Excise Duty and Penalty CESTAT January to October 2010 2491506
The Central Excise Act 1944 Central Excise Duty CESTAT Nov 2007 to July 2011 8501823
The Central Excise Act 1944 Central Excise Duty and Penalty CESTAT July 2011 to December 2011 179119
The Central Excise Act 1944 Central Excise Duty and Penalty CESTAT Jan to Feb 2012 328671
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise March -June 2012 191590
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise July 2012 to January 2013 1159254
The Central Excise Act 1944 Central Excise Duty and Penalty Additional Commissioner of Central Excise December 2008 179184
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY 2010-112011-12 & 2012-13 2182891
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY 2013-14 & 2014-15 325881
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY 2013-14 & 2014-15 416416
Income Tax Act 1961 Income Tax Honourable High Court of Karnataka FY 2005-06 963682
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY 2013-14 420945
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY 2013-14 & 2014-15 306151
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY2014-15 273898
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY 2013-14 & 2014-15 153283
The Central Excise Act 1944 Central Excise Duty and Penalty Assistant Commissioner of Central Excise FY 2013-14 & 2014-15 117741

* Net of amounts paid under protest or otherwise. Amount as per demand order includinginterest wherever quantified.

viii. Based on our audit procedures information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto financial institutions and banks.

ix. In our opinion and according to the information and explanations given to us theterm loans taken by the company during the year have been applied for the purposes forwhich they were obtained. Further the company has not raised any money by way of publicissue/ follow on offer.

x. Based on the audit procedures performed and information and explanations given bythe management we report that no fraud by the company and no fraud on the company by itsofficers/ employees has been noticed or reported during the course of our audit.

xi. The Managerial Remuneration has been paid in accordance with the requisiteapprovals mandated by section 197 read with Schedule V of the Companies Act.

xii. The company is not a Nidhi Company and therefore clause 3(xii) of the Order is notapplicable to the company.

xiii. All transactions with the related parties are in compliance with Section 188 and177 (where applicable) of Companies Act 2013 and the details thereof have been disclosedin the standalone financial statements as required by the Accounting standards andCompanies Act 2013.

xiv. The requirements of Section 42 of the Companies Act 2013 regarding preferentialallotment of shares made during the year under review have been complied with. Furtherthe amounts raised have been used for the purposes for which the funds were raised.

xv. The Company has not entered into any non-cash transactions with directors orpersons connected with him and therefore clause 3(xv) of the Order is not applicable.

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

For M/s T D JAIN AND D I SAKARIA

Chartered Accountants

Firm registration no: 00249IS

T D JAIN

Partner

M. No.: 012034

Bengaluru

30 May 2017

‘Annexure - B' to the Independent Auditors' Report of Even Date on the StandaloneFinancial Statements of Bal Pharma Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BAL PHARMALIMITED ("the Company") as of 31 March 2017 in conjunction with our audit of thestandalone 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 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 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 financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system 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 financialreporting includes those policies and procedures that:

a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b) 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

c) 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 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 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 M/s T D JAIN AND D I SAKARIA

Chartered Accountants

Firm registration no: 002491S

T D JAIN

Partner

M. No.: 012034

Bengaluru

30 May 2017