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Bharat Parenterals Ltd.

BSE: 541096 Sector: Health care
NSE: N.A. ISIN Code: INE365Y01019
BSE 00:00 | 29 May 275.30 13.10
(5.00%)
OPEN

272.90

HIGH

275.30

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249.10

NSE 05:30 | 01 Jan Bharat Parenterals Ltd
OPEN 272.90
PREVIOUS CLOSE 262.20
VOLUME 9106
52-Week high 275.30
52-Week low 131.00
P/E 6.35
Mkt Cap.(Rs cr) 158
Buy Price 275.30
Buy Qty 5466.00
Sell Price 275.00
Sell Qty 112.00
OPEN 272.90
CLOSE 262.20
VOLUME 9106
52-Week high 275.30
52-Week low 131.00
P/E 6.35
Mkt Cap.(Rs cr) 158
Buy Price 275.30
Buy Qty 5466.00
Sell Price 275.00
Sell Qty 112.00

Bharat Parenterals Ltd. (BHARATPARENTER) - Auditors Report

Company auditors report

TO THE MEMBERS OF BHARAT PARENTERALS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements ofBharat Parenterals Limited ("the Company") which comprise the Balance Sheet asat 31st March 2019 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information. (hereinafter referred to as"'the standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the "Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31st March2019 the profit and total comprehensive income changes in equity and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with theindependence requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Companies Act 2013 and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr no Key Audit Mater Auditor's Response
1 Recoverability and Recognition of Receivables w.r.t Export Incentives under Merchandise Export from India Scheme (MEIS) This has been considered as akeyauditmatter given theinvolvement of management judgement and estimate and any variation may have consequential impact on the recognised revenue.
Under the Foreign Trade Policy (FTP) 2015-20 of Government of India the company has claimed export benefits under Merchandise Export from India Scheme (MEIS). Our audit approach consisted testing of design and effectiveness of internal controls and substantive testingas follows:
Company recognizes these benefits in the period in which the right to receive the same is established i.e. the year during which the exports for grant of MEIS benefits are done. • Evaluation and testing of the design of internal controls relating to recognition ofMEIS Income;
(Please refer Note No. 1.4(K)(ii) of financial statement) • Relied on management judgements key assumptions and estimations regarding revenue recognition for which Exports have been made but pending for receipt of MEIS License at the year ended.
• We have also verified the subsequent realisation of MEIS Receivable as on 31st March 2019 to evaluate whether any change was required to management's positions on this Income Provisioning
• The status ofsuch claims has been reviewed on regular basis.

Information other than the Standalone Financial Statement and Auditor'sReport thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the financial statements and our auditor's report thereon

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Responsibilities ofManagement and Those Charged with Governance for thestandalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance total comprehensive income changes in equityand cash flows ofthe Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India including the accounting Standards specified under Section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness ofthe accounting records relevant to the preparation and presentation of thestandalone financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error;

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so;

That Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibilities for the Audit ofstandalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery; intentional omissions misrepresentations or the overrideof internal control;

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management;

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern;

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation;

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit;

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards;

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits ofsuchcommunication.

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 of the Companies Act 2013 we give in the 'Annexure A" astatement on the matters specified in paragraphs 3 and 4 ofthe Order to the extentapplicable.

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

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination ofthose books;

(c) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income statement of changes in equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from thedirectors as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164(2) ofthe Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B;

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) ofthe Act as amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act;and

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 40 to thestandalone financial statements;

ii. The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For C N K & Associates LLP Kishor Parikh
Place: Vadodara Chartered Accountants Partner
Date: 29th May 2019 Firm Registration No. 101961W/W-100036 Membership No. 039213

ANNEXURE 'K.' TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Para 1 'Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's

Report to the members of the Company on the Standalone FinancialStatements for the year ended 31st March 2019. "

I. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation ofproperty plant and equipment;

(b) As informed to us the company has a phased programme of physicalverification of its fixed assets so as to cover all assets once in three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the company and thenature of its assets;

(c) According to the information and explanations given to us and onthe basis of our examination of the records ofthe Company the title deeds ofimmovableproperties are held in the name ofthe Company;

II. As per the information and explanations given to us physicalverification of inventory has been conducted at reasonable intervals by the management andno material discrepancies were noticed on physical verification;

III. According to the information and explanations given to us theCompany has not granted any secured or unsecured loans to companies firms limitedliability partnership or other parties covered in the register maintained under section189 ofthe Companies Act 2013. Therefore the requirements ofsub-clause (a) (b) and (c)ofclause (iii) are not applicable to the Company;

IV. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theAct in respect of grant of loans making investments and providing guarantees andsecurities as applicable;

V. In our opinion and as explained to us the Company has not acceptedany deposits during the year and therefore the provisions of sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed thereunder arenot applicable to the company;

VI. We have broadly reviewed the cost records maintained by the Companyas prescribed by the Central Government under sub section (1) of Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed cost recordshave been made and maintained by the company. We have however not made a detailedexamination ofthe cost records with a view to determine whether they are accurate orcomplete;

VII. According to the information and explanations given to us inrespect ofstatutory dues:

(a) According to the information and explanations given to us and therecords examined by us the Company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax Goods and Service Tax (GST) custom duty cess and other statutory dues andthere are noundisputed statutory dues outstandingas at 31st March 2019 for a periodofmore than six months from the date they becamepayable;

(b) According to the information and explanations given to us and therecords examined by us there are no dues ofincome tax sales tax wealth-tax servicetax duty ofcustoms duty of excise value added tax or cess that has not been depositedon account ofdisputes except the following:

Name of the statute Nature of dues Amounts (Rs.) Period to which the amounts relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 5268970 2014-15 CIT (Appeal)
Income Tax Act 1961 Income Tax 1058298 2015-16 CIT (Appeal)
Finance Act 1994 Service Tax 1272261 April 2011 to September 2011 CESTAT
Finance Act 1994 Service Tax 969599 April 2012 to March 2015 CESTAT

VIII. Based on our audit procedure and according to the information andexplanation given by the management we are of the opinion that the company has notdefaulted in repayment of dues to financial institutions or banks Government or dues todebenture holders;

IX. According to the information and explanations given to us nomoneys were raised by way of initial public offer or further public offer (including debtinstruments) and the term loans were applied for the purpose for which the loan wereobtained during the year;

X. During the course of our examination of the books of account andrecords of the company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither came across any incidence of fraud on or by the company noticed or reported duringthe year nor we have been informed ofany suchcase by the management;

XI. In our opinion and according to the information and explanationsgiven to us the Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct;

XII. In our opinion and according to the information and explanationgiven to us the provisions related to Nidhi Company are not applicable;

XIII. In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 ofthe Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards;

XIV. According to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review;

XV. According to the information and explanation given to us and basedon our examination of the records the Company has not entered into non-cash transactionswith the directors or persons connected with them. Hence the provisions ofSection 192ofthe Act are not applicable;

XVI. The Company is not required to be registered under section 45-IAofthe Reserve Bank oflndia Act 1934.

For C N K & Associates LLP Kishor Parikh
Place: Vadodara Chartered Accountants Partner
Date: 29th May 2019 Firm Registration No. 101961W/W-100036 Membership No. 039213

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of BHARAT PARENTERALS LIMITED ("the Company") as of 31st March2019 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of internal financialcontrols with reference to financial statements of the company that were operatingeffectively for ensuring the orderly and efficient conduct of its business thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliablefinancial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit oflnternal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether internal financial controls with reference to financial statements of thecompany were established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence aboutthe internal financial controls with reference to financial statements of the company andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone financial statementswhether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning oflnternal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 oflnternal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an internal financialcontrols with reference to financial statements of the company and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2019 basedon 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 oflndia.

For C N K & Associates LLP Kishor Parikh
Place: Vadodara Chartered Accountants Partner
Date: 29th May 2019 Firm Registration No. 101961W/W-100036 Membership No. 039213