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Bharat Immunological & Biological Corporation Ltd.

BSE: 524663 Sector: Health care
NSE: N.A. ISIN Code: INE994B01014
BSE 00:00 | 22 Mar 8.00 -0.50
(-5.88%)
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NSE 05:30 | 01 Jan Bharat Immunological & Biological Corporation Ltd
OPEN 8.55
PREVIOUS CLOSE 8.50
VOLUME 130326
52-Week high 27.15
52-Week low 7.50
P/E
Mkt Cap.(Rs cr) 35
Buy Price 8.05
Buy Qty 238.00
Sell Price 8.18
Sell Qty 30.00
OPEN 8.55
CLOSE 8.50
VOLUME 130326
52-Week high 27.15
52-Week low 7.50
P/E
Mkt Cap.(Rs cr) 35
Buy Price 8.05
Buy Qty 238.00
Sell Price 8.18
Sell Qty 30.00

Bharat Immunological & Biological Corporation Ltd. (BHARATIMMUNOLOG) - Auditors Report

Company auditors report

TO THE SHAREHOLDERS OF BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED.

Report on the Ind AS Financial Statements

This revised report is in supersession of our earlier report dated 31/05/2018 on thebasis of preliminary review of financial statements by Comptroller & Auditor General(C&AG) of India. We confirm that these changes do not affect true & fair view andalso none of the figures have undergone any change in the financial Statements of theCompany as at 31st March 2018.

We have audited the accompanying Ind AS financial statements of BHARATIMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED ("the Company") whichcomprise the Balance Sheet as at March 31 2018 the Statement of Profit and Lossincluding the statement of Other Comprehensive Income the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information.(herein after referred to as"Ind As Financial Statement").

Management 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act. read with Rule 7 of The Companies (Indian Accounting Standards)Rules 2015 as amended and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS 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 Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder and Order issued under section143(11) of the Act.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 judgment including the assessment of the risks of material misstatement ofthe Ind AS 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 Ind AS financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the 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 Ind AS financial statements.

Basis of Qualification

a) Non furnishing of information in respect of payment of remuneration to ChiefFinancial Officer and Company Secretary of the company under note no 31(k) for disclosuresmade in compliance to Ind AS-24 ‘Related Party Disclosure’.

b) Sundry debtors amounting to Rs 645.42 Lacs as appearing in Note No 31(h). of theFinancial Statement represent the late delivery charges deducted by the Ministry Of Healthand family welfare which raises doubt about its recoverability and require suitableprovision as per Ind AS-37" Provisions Contingent Liabilities and ContingentAssets" issued by the Institute Of Chartered Accountants Of India .

c) There are irregularities in the implementation of the MACPS (Modified AssuredCareer Progression Scheme) which is not as per the recommendation of the sixth CentralPay commission which has resulted in excess payment to the some selected employees duringthe financial year 2010-11 to 2016-17 to the extent of Rs 30.69 lakhs and Rs 5.03 lakhsfor the financial year 2017-18.

Our Audit Report is qualified in respect of above matter.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the matters described in the Basis for Qualified Opinionwhereinbasis of qualification a)does not have any financial impact and impact of basis ofqualification b) is presently unascertainable and had the company provided remuneration asper sixth central pay commission the profit before tax would be more by Rs. 5.03 lakhs andother equity would be more by 35.72 lakhs and other current assts would be more by 35.72lakhs the Ind AS 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 of the state of affairs of the Company as at March31 2018 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date

Emphasis On Matter

1. Non-furnishing of information in respect of dues of Micro Small and MediumEnterprises as per Note No.31(g)

2. Attention is drawn to note no 31(f) in earlier years company has received variousgrants from Government of India. These grants should be utilized accordingly with the lineof its objects. Further attention is also invited to Note No 31(f) "IV and Vregarding Grant received in 20102011 and 2012-2013 but the significant amount lyingunspent as on 31st March 2018. Management stated that the above grant relatedto upgradation of OPV projects due to

change in technology the matter has been referred to Ministry for purchase of newMachinery and direction from the Ministry awaited.

3. Regarding non attendance of Sh.Venkata Subba Rao Kanury director of the company tothe entire Board meeting during the financial year which require immediate vacation of thedirector as per the provision of section 167(1)(b).

4. An amount of Rs 21.936 Lakh appearing in Capital work in progress. The work has beensuspended and has been in abeyance since long time. The company has referred the matter toministry to sale of the uncompleted structure or to permit to use this structure for otherpurposes after completing the work.

5. The company has not provided pay and allowances of the employees as perrecommendation of 7th Central pay commission since same is not implemented inthe absence of profit as the office memorandum W-02/0058/2016-DPE(WC)-GL-XV/17 dated 17thAugust 2017 issued by Department of public Enterprises is applicable for profit makingCentral Public Sector Enterprises.

Our report is not qualified in respect to the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of section 143(11) of the CompaniesAct 2013 we give in the "Annexure A" statement on the matters specifiedin paragraphs 3 and 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 purpose 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 including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.

d. In our opinion except (a) and (b) of the basis of qualification theaforesaid Ind AS financial statements comply with the Indian Accounting Standardsspecified under section 133 of the Act read Companies (Indian Accounting Standards)Rules 2015 as amended;

e. On the basis of written representations received from the directors as on March312018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312018 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 Ind AS financial statements - Refer Note 31(e) to the Ind AS financialstatements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For B.K.KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
PLACE: GHAZIABAD (Partner)

Membership No: 074615

DATED: 17-07-2018

3. As required by the direction under section 143(5) of the Act we report that :

S.

No

Directions Observations
1.. Whether the company has clear title/ lease deeds for freehold and leasehold respectively? If not please state the area of freehold and leasehold land for which title / lease deeds are not available According to the information and explanation provided by the management title / lease deeds are not available however the allotment letter is available which is held in the name of the company.
2. Whether there are any cases of waiver/ write off of debts /loans/interest etc. if yes the reasons there for and amount involved No waiver/ write off of debts /loans/interest etc. However as per Basis of qualified opinion as described above the company needs to make suitable provision in respect of the same.
3. Whether proper records are maintained for inventories lying with third parties & assets received as gift/ grant(s( from Government or other authorities According to the information and explanation provided by the management there was no such case during the period under audit

 

For B.K.KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
(Partner)
PLACE: GHAZIABAD Membership No: 074615
DATED: 17-07-2018

(Referred to in paragraph (1) of our Report on other Legal and Regulatory requirementssection of our report of even date to the shareholder of BHARAT IMMUNOLOGICALS &BIOLOGICALS CORPORATION LIMITED)

1. a). The company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.

b. The fixed assets of the company have been physically verified during the year by themanagement at reasonable intervals and no material discrepancies between the book recordsand the physical inventory have been noticed on such verification.

c. According to the information and explanation given to us it being a public sectorundertaking only allotment letter is issued in respective of the immovable propertieswhich is held in the name of the company.

2. a. The management has conducted the physical verification of inventory at reasonableintervals.

b. The discrepancies noticed on physical verification of the inventory as compared tobooks records are not material and have been properly dealt with in the Books of Accounts

3. According to information made available to us the company has not granted any loan secured or unsecured to companies firms LLPs or other parties covered in the registermaintained under section 189 of the Act .accordingly Para 3(iii)(a) & (c) of the Orderare not applicable to the company.

4. On the basis of information and explanation given to us the company has not enteredinto transactions mentioned in section 185 and 186 of the Act accordingly paragraph 3(iv)of the Order is not applicable.

5. On the basis of information and explanation given to us and our scrutiny of companyrecords in our opinion the company has not accepted any public deposits.

6. We have broadly reviewed the books of accounts maintained by the company pursuant tothe Rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act2013 and are of the opinion that prima facie the prescribedaccounts have been made and maintained.

7. (a) According to the information and explanation given to us the company isgenerally regular in

depositing with appropriate authorities the undisputed statutory dues includingprovident fund income- tax sales-tax service tax custom duty excise duty value addedtax cess and any other statutory dues applicable to it. Further there was no arrears ofundisputed statutory dues outstanding as at 31st March 2018 for a period ofmore than six month from the date they became payable.

(b) According to the information and explanations given to us there are no tax dues ofincome-tax sales- tax service tax custom duty excise duty value added tax which havenot been deposited on account of any dispute except the following:-

Financial Year Nature Of the Statutory Dues Amount Remark
2013-14 Custom Duty 535.11 Lacs Appeal is pending before Tribunal Allahabad.
2007-18 Income tax 34.61 Lacs Appeal is pending before ITAT DELHI

8. Based on our examination and according to the information and explanation giventhere are no dues of term loan to the banks financial institutions or due to debentureholders.

9. The company did not raise money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.

10. To the best of our knowledge and belief and according to the information andexplanation given to us no fraud on or by the company has been noticed or reported duringthe course of our audit for the year ended 31 March 2018.

11. According to the information and explanations give to us the company has notpaid/provided any Managerial remuneration to any of the Directors of the company.Accordingly paragraph 3(xi) of the Order is not applicable.

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 financial statements as required by the applicableaccounting 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 B.K.KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
PLACE: GHAZIABAD (Partner)
Date: 17.07.2018 Membership No: 074615

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 BHARATIMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED ("the Company") as at31 March2018 in conjunction with our audit of the Ind As financial statements of theCompany for the period 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 safeguardingof its 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.

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 the Internal Financial Controls over the 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 thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 31 March2018 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 B.K.KAPUR AND CO.
Chartered Accountants
Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
(Partner)
PLACE: GHAZIABAD Membership No: 074615
Date: 17.07.2018