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Bharat Immunological & Biological Corporation Ltd.

BSE: 524663 Sector: Health care
NSE: N.A. ISIN Code: INE994B01014
BSE 00:00 | 22 Jun 19.55 0.50
(2.62%)
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19.90

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NSE 05:30 | 01 Jan Bharat Immunological & Biological Corporation Ltd
OPEN 19.90
PREVIOUS CLOSE 19.05
VOLUME 12436
52-Week high 38.70
52-Week low 16.20
P/E
Mkt Cap.(Rs cr) 84
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 19.90
CLOSE 19.05
VOLUME 12436
52-Week high 38.70
52-Week low 16.20
P/E
Mkt Cap.(Rs cr) 84
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company auditors report

INDEPENDENT AUDITORS' REPORT

TO THE SHAREHOLDERS OF

BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of BHARAT IMMUNOLOGICALS &BIOLOGICALS CORPORATION LIMITED which comprise the Balance Sheet as at March 31 2017the Profit and Loss Statement and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 there under.

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.

Emphasis on Matter

1. Non-furnishing of information in respect of dues of Micro Small and MediumEnterprises as per Note No. 38.

2. Attention is drawn to note no -39 in earlier years company has received variousgrants from Government of India. These grants should be utilized accordingly with the lineof its objects.

Basis of Qualification

Sundry debtors amounting to Rs 645.42 Lacs as appearing in Note No 30 of the FinancialStatement represent the late delivery charges deducted by the Ministry Of Health andfamily welfare which raises doubt about its recoverability and require suitableprovision as per Accounting Standard -29" Provisions Contingent Liabilities andContingent Assets" issued by the Institute Of Chartered Accountants Of India .

Qualified 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 Opinion andtheir consequential impact on financial statements which could not be determined atpresent 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:

a. In the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

b. In the case of the Profit and Loss Statement of the Profit for the year ended onthat date; and

c. In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 in terms of section 143(11) of the Companies Act 2013we give in the Annexure statement on the matters specified in paragraphs 3 and 4 of theOrder.

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

a. We have obtained all the information and explanations which to the best of ourknowledge 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 Profit and Loss Statement and Cash Flow Statement dealt with bythis Report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply except for the matters& described in para of the Basis for Qualified Opinion with the AccountingStandards referred to in section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014:

e. On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164(2) of theAct.

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 have disclosed the pending litigations which would impact its financialpositions in I ts financial statements – Refer Note no—27 (b)- 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in the accordance with the books of accountsmaintained by the company.

PLACE: GHAZIABAD For B.K.KAPUR AND CO. Chartered Accountants
DATED: 04-08-2017 Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
(Partner)
Membership No: 074615

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 avialable 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

 

PLACE: GHAZIABAD For B.K.KAPUR AND CO. Chartered Accountants
DATED: 04-08-2017 Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
(Partner)
Membership No: 074615

"ANNEXURE A" TO THE AUDITORS' REPORT"

(Referred to in paragraph (1) of our Report on other Legal and Regulatory requirementssection of our report of even date)

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 tobook records which has been properly dealt with in the books of account were not material

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 ofcompany's records 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 duesincluding provident fund employees' state insurance income-tax sales-tax service taxcustom duty excise duty value added tax cess and any other statutory dues applicable toit. Further there was no arrears of undisputed statutory dues outstanding as at 31stMarch 2017 for a period of more 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:-

Year Nature Of the Statutory Dues Amount Remark
2013-14 Custom Duty 448.71Lacs Appeal is pending before ITAT DELHI
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 to the banks financial institutions or debenture holders.

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 2017.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

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.

PLACE: GHAZIABAD For B.K.KAPUR AND CO. Chartered Accountants
DATED: 04-08-2017 Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
(Partner)
Membership No: 074615
Page 21 of 50

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 of31 March 2017 in conjunction with our audit of the financial statements of the Company forthe 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 (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 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 except so far as the requirement of the Companies Act 2013 withrespect to preparation of framework of internal financial controls i.e. making summary ofGeneral Financial Rules DPE guidelines and company's existing rules as one singledocument the Company has in all material respects an adequate internal financialcontrols system over financial reporting in accordance to General Financial Rules (GFRs)of the Ministry of Finance Government of India and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

PLACE: GHAZIABAD For B.K.KAPUR AND CO. Chartered Accountants
DATED: 04-08-2017 Firm Registration No. 000852C
(M.S.KAPUR) F. C A.
(Partner)
Membership No: 074615