You are here » Home » Companies » Company Overview » Concord Drugs Ltd

Concord Drugs Ltd.

BSE: 538965 Sector: Health care
NSE: N.A. ISIN Code: INE858L01010
BSE 00:00 | 20 Jul 25.35 1.40
(5.85%)
OPEN

24.00

HIGH

26.30

LOW

23.60

NSE 05:30 | 01 Jan Concord Drugs Ltd
OPEN 24.00
PREVIOUS CLOSE 23.95
VOLUME 12240
52-Week high 43.00
52-Week low 15.05
P/E 61.83
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.00
CLOSE 23.95
VOLUME 12240
52-Week high 43.00
52-Week low 15.05
P/E 61.83
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Concord Drugs Ltd. (CONCORDDRUGS) - Auditors Report

Company auditors report

on Financial Statements

To the Members of

CONCORD DRUGS LIMITED.

Report on the financial Statements

We have audited the accompanying standalone financial statements of CONCORD DRUGSLIMITED ('the Company') which comprise the balance sheet as at 31st March 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.

Managements 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 andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors 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 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the 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

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 31 March 2017 and its profit and its cash flows for the ended on that dateexceptemphasis of matters stated below.

Emphasis of Matters

1. Company has unsecuredloans of Rs.582.51 Lakhs as outstanding balance as on balancesheet date of which Rs. 348.76 Lakhs received from the Directors and Rs.233.75 Lakhsreceived from others.

2. The stock of raw material work in progress finished goods and packing materialworth of Rs.1102.69 Lakhs are subject to management confirmations.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure A statement on the matters specified in the paragraph 3 and 4 of theOrder 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;

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;

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 the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

f) With respect to the adequacy of the internal financial controls over financialreporting of the company and operating effectives of such controls refer to our separatereport 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 does not have any pending litigations.

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 standalone financialstatements as regards its holding and dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) dated November 8 2016 of the Ministry of Finance during theperiod from November 8 2016 to December 30 2016. Based on audit procedures performed andthe representations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management.

For M M REDDY & CO.
Chartered Accountants
Firm Registration No.010371S
M Madhusudhana Reddy
Place: Hyderabad Partner
Date : 30th May 2017 Membership No.213077

Annexure-A to the Auditors' Report

The Annexure-A referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the Year ended 31 March 2017 we report that:

1. a. The Company has not maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The title deeds of the immovable property are held in the name of the company.

2. The physical verification of the inventory excluding stocks with third parties hasbeen conducted at reasonable intervals by the management during the year. In our opinionthe frequency of the verification is reasonable.

3. The Company has not granted any loans to bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act').

4. 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 ofgrant of loans making investments and providing guarantees and securities as applicable.

5. The Company has not accepted any deposits from the public in specific and acceptedunsecured loans from the directors and promoters.

6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

7. a. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including duty of excise sales taxwealth tax service tax duty of customs value added tax cess and other materialstatutory dues have been regularly depositedduring the year. The company has not compliedthe provisions under income tax(TDS) Employees State Insurance Provident Fund andService tax.

b. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund sales tax wealth tax duty of customs value addedtax cess and other material statutory dues were in arrears as at 31 March 2017 exceptbelow table;

Financial Year Section under which TDS Due Amount in Rs.
2014-15 194 J 210000
2014-15 194 C 3964
2015-16 194J 62800
2015-16 194C 1036
2016-17 196J 296400
2016-17 194C 27900

c. According to the information and explanations given to us there are no materialdues of sales tax service tax and value added tax wealth tax duty of customs and cesswhich have not been deposited with the appropriate authorities on account of any dispute.However according to information and explanations given to us the following dues ofincome tax have not been deposited by the Company on account of disputes:

Particulars Demand U/s Period to which the amount relates Forum where the dispute is pending Amount in Rs.
Income Tax Act 1961 148 -07 Commissioner of Income -II 11987841
Income Tax Act 1961 148 -08 Commissioner of Income -II 2244779
Income Tax Act 1961 148 -09 Commissioner of Income -II 1606275
Income Tax Act 1961 143(1) -11 Jurisdictional AO 1677610
Income Tax Act 1961 143(3) -12 Commissioner of Income -II 38128810
Income Tax Act 1961 143 1(a) -14 Jurisdictional AO 1183700
Income Tax Act 1961 143(3) 4-1 5 Commissioner of Income -II 39384045
Income Tax Act 1961 Others 5-1 6 Jurisdictional AO 1263500

8. In our opinion and according to the information and explanations given to us theCompany is not in regular in repayment of loans or borrowings to banks financialinstitutions. The Company has not issued any debentures.

9. The company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and terms loans during the year.

10. According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit Except IssuesReported Under Matters Emphases.

11. The company has paid/ provided managerial remuneration in accordance with requisiteapprovals mandated by the provisions of section 197 read with schedule V to the act.

12. The company is not Nidhi Company and the Nidhi Rules 2014 not applicable to it.Accordingly the provisions of Clause 3(Xii) of order not applicable to the company.

13. The company has entered transactions with the related parties and complied withSection 188 and 177 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc as required by the accounting standards.

14. 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) of the Order is not applicable to the Company.

15. The company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of order notapplicable to the company.

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

For M M REDDY & CO.
Chartered Accountants
Firm Registration No.010371S
M Madhusudhana Reddy
Place: Hyderabad Partner
Date : 30th May 2017 Membership No.213077

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTSOF CONCORD DRUGS LIMITED

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

We have audited the internal financial controls over financial reporting of CONCORDDRUGS LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 my / our audit. We conducted my our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 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 that the audit evidence I/we have obtained is sufficient and appropriate toprovide a basis for my /our audit opinion on the Company's internal financial controlssystem over financial 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 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 March 31 2017 based on"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 of India".

For M M REDDY & CO.
Chartered Accountants
Firm Registration No.010371S
M Madhusudhana Reddy
Place: Hyderabad Partner
Date : 30th May 2017 Membership No.213077