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Chemo Pharma Laboratories Ltd.

BSE: 506365 Sector: Health care
NSE: N.A. ISIN Code: INE320M01019
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NSE 05:30 | 01 Jan Chemo Pharma Laboratories Ltd
OPEN 33.25
PREVIOUS CLOSE 33.25
VOLUME 10
52-Week high 45.00
52-Week low 33.00
P/E 49.63
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 33.25
CLOSE 33.25
VOLUME 10
52-Week high 45.00
52-Week low 33.00
P/E 49.63
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Chemo Pharma Laboratories Ltd. (CHEMOPHARMALAB) - Auditors Report

Company auditors report

To

The Members of CHEMO PHARMA LABORATORIES LTD.

Report on the Financial Statements

We have audited the accompanying financial statements of Chemo Pharma LaboratoriesLtd. ('the Company') which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(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 the maintenance of adequate accounting records in accordancewith the provisions of the act for safeguarding the assets of the company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgment and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

Auditors 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 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 control relevant to the Company's preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the has an adequate internal financial controls system over financial reporting inplace and the operating effectiveness of such controls. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by company's directors as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the order") issuedby the Central Government of India in terms of section 143 (11) of the Act we give in theAnnexure A a statement on the matters specified in the paragraph 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 it appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account;

d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in section 133 of the CompaniesAct 2013 read with rule 7 of the Companies (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 sub section (2) ofsection 164 of the Companies Act 2013.

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 included in the Independent Auditor's report inour opinion and to the best of our information and according to the explanations given tous:

1) The company has disclosed the impact of pending litigation on its financial positionin its financial statement.

2) The company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts.

3) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by Company.

4) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank notes during the period from 8 November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 20 to the financial statements.

FOR VMD & CO.
Chartered Accountants
(FRN: 125002W)
Sd/-
CA Amit Ganpule
Place: Mumbai Partner
Date: 22nd May 2017 MRN: 114222
No. : A/02/0517

ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

Report on Companies (Auditor's Report) Order 2016 ('the Order') issued by the CentralGovernment in terms of section 143(11) of the Companies Act 2013

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

(b) Fixed Assets were physically verified by the Management during the current year. Inour opinion the frequency of verification is reasonable having regard to the size of theCompany and the nature of its Fixed Assets.

(c) The company does not have immovable property Hence the paragraph 3(i)(c) of theorder is not applicable.

(ii) The company does not have any inventory accordingly the paragraph 3(ii) of theorder is not applicable.

(iii) (a) The company has given loans to one party covered in the register maintainedunder section 189 of the Companies Act 2013.

(b) In the case of the loans granted to the company in the register maintained undersection 189 of the Act the borrowers have been regular in the payment of the interest asstipulated. The terms of arrangements do not stipulate any repayment schedule and arerepayable on demand. Accordingly paragraph 3(iii)(b) of the Order is not applicable tothe Company in respect of repayment of the principal amount.

(c) There are no overdue amounts in respect of the loans granted to the companieslisted in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect tothe loans and investments made.

(v) In our opinion and according to the information and explanations given to us nofixed deposits were accepted from the public.

(vi) In our opinion clause 3(vi) of the order for maintenance of the cost recordsunder section 148(1) of the Companies Act 2013 is not applicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amount deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Income TaxValue added Tax Service Tax Cess and other material Statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Value added Tax Service Tax Cess andother material Statutory dues were in arrears as at 31st March 2017 for a period of morethan six months from the date they become payable.

(b) According to the information and explanations given to us the dues in respect ofsales tax income tax custom duties wealth tax excise duty and cess that have beendeposited with the appropriate authorities except in cases where there is a dispute. Thedetails of dispute and the forum where such disputes are pending is given below:

Name of the Statute Nature of the dues Amount (Rs.) Forum where dispute is pending
Central Sales Tax Maharashtra Sales Tax Central sales tax & Maharashtra Sales Tax 1805093 Appeal before sales tax authority
Income Tax Act Penalty Tax 6047659 Appeal before ITAT
Income Tax Act Income Tax 3177291 Appeal before ITAT
Central Sales Tax Act Central Sales Tax 167560 Company has filed an appeal against order in High Court
Maharashtra Sales Tax Act Sales Tax 950255 Company has filed an appeal against order in High Court

(viii)The company does not have any loans or borrowings from any Financial InstitutionBanks Government or Debenture Holders during the year. Accordingly paragraph 3(vii) ofthe order is not applicable.

(ix) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3(ix) ofthe order is not applicable.

(x) Based on the audit procedures performed and information and explanations given tous we report that no fraud on or by the company has been noticed or reported during thecourse of our audit.

(xi) The Company has not paid any managerial remuneration for the year hence clause3(xi) of the order is not applicable.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) ofthe order is not applicable.

(xiii)In our opinion and according to the information and explanations given to us theCompany is in compliance with section 177 and 188 of the act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

(xiv)During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected to its Directors and hence provisions of Section 192 of theAct are not applicable.

(xvi)The Company is not required to be registered under Section 45-I of the ReserveBank of India Act 1934.

FOR VMD & CO.
Chartered Accountants
(FRN: 125002W)
Sd/-
CA Amit Ganpule
Place: Mumbai Partner
Date: 22nd May 2017 MRN: 114222
No. : A/02/0517

Annexure B

To The Independent Auditor's Report of even date on the Financial Statements of ChemoPharma Laboratories Ltd.

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

To

The Members of Chemo Pharma Laboratories Ltd.

We have audited the internal financial controls over financial reporting of ChemoPharma Laboratories Ltd. ("the Company") as of 31 March 2017 in conjunctionwith our audit of the 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 (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's 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 and the Standards on Auditing as specified under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 judgement 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 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

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 of changes in conditions or that thedegree 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 VMD & CO.
Chartered Accountants
(FRN: 125002W)
Sd/-
CA Amit Ganpule
Place: Mumbai Partner
Date: 22nd May 2017 MRN: 114222
No. : A/02/0517