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Fredun Pharmaceuticals Ltd.

BSE: 539730 Sector: Health care
NSE: N.A. ISIN Code: INE194R01017
BSE 00:00 | 25 Sep 231.75 6.75
(3.00%)
OPEN

222.20

HIGH

240.00

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222.20

NSE 05:30 | 01 Jan Fredun Pharmaceuticals Ltd
OPEN 222.20
PREVIOUS CLOSE 225.00
VOLUME 1769
52-Week high 299.70
52-Week low 103.00
P/E 53.77
Mkt Cap.(Rs cr) 92
Buy Price 231.00
Buy Qty 4.00
Sell Price 233.00
Sell Qty 48.00
OPEN 222.20
CLOSE 225.00
VOLUME 1769
52-Week high 299.70
52-Week low 103.00
P/E 53.77
Mkt Cap.(Rs cr) 92
Buy Price 231.00
Buy Qty 4.00
Sell Price 233.00
Sell Qty 48.00

Fredun Pharmaceuticals Ltd. (FREDUNPHARMA) - Auditors Report

Company auditors report

TO the Members of FREDUN PHARMACEUTICALS LTD.

Report on the lnd AS Financial Statements

We have audited the accompanying lnd AS Financial Statements of FREDUN PHARMACEUTICALLTD. (‘ the Company') which comprise of the Balance Sheet as on March 31 2019; theStatement of Profit and Loss (Including comprehensive Income) Cash Flow statement and thestatement of changes in Equity for the year then ended and summary of significantaccounting policies and other explanatory information (herein referred to as "lnd ASFinancial Statements").

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for matters stated in Section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of the theselnd AS Financial Statements in that give a true and fair view of the state of affairs(financial position) Profit (financial performance including comprehensive income) CashFlows and changes in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (lnd AS) specifiedunder Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the act for safeguarding assets of the Company and for preventing anddetecting frauds and other irregularities; the selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent: andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the lnd AS Financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility for the Financial Statements

Our responsibility is to express an opinion on these lnd AS Financial Statements basedon our Audit.

While conducting the Audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theAudit Report under the provisions 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 lnd AS Financial Statements are free from material misstatement.

An Audit includes examining on a test basis evidence supporting the amounts anddisclosures in the lnd AS Financial Statements. An Audit also includes assessing theaccounting principles used and significant estimates made by management as well asevaluating the overall lnd AS Financial Statement presentation. We believe that our Auditprovides a reasonable basis for our opinion.

An Audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the lnd AS Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thelnd AS Financial Statements whether due to fraud or error. In making those riskassessments the Auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Financial statements. We believe that the Auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the lnd AS Financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid lnd AS Financial Statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India Including the lnd AS of the state ofaffairs (financial position) of the Company as on March 31 2019; and its Profit(financial performance including other comprehensive Income) its Cash Flow and changes InEquity for the year ended on that date.

Report on 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 ofthe Act we give in the Annexure I a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. Further to our comments in the Annexure referred to in paragraph 5 above and asrequired by Section 143 (3) of the Act we report to the extent applicable that;

(i) 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 of the aforesaidFinancial Statements.

(ii) In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of such books.

(iii) The Balance Sheet Profit & Loss Account Cash Flow Statement and the Statementof Changes of Equity referred to in this report are in agreement with the books ofaccount.

(iv) In our opinion the aforesaid Ind AS Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder.

(v) On the basis of written representations received from the Directors as on 31stMarch 2019; and taken on record by the Board of Directors we report that none of theDirectors of the Company is disqualified from being appointed as Director under subsection (2) of Section 164 of the Companies Act 2013.

(vi) 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 II".

(vii) With respect to the maters to be included in the Auditors' Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014; in our opinion and to thebest of our information and according to the explanations given to us:

i. There are no pending litigations on the financial position of the Company.

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 Company.

iv. The reporting on disclosure relating to Specified Bank Notes is not applicable tothe Company for the year ended 31 March 2019.

For SAVLA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO -109361W
DEEPAK G. SAVLA
Place: Mumbai (PARTNER)
Date: 10thJune2019 Membership No.:043901

Annexure I to Auditors Report

The Annexure as referred in paragraph 1 under 'Report on Legal and RegulatoryRequirements' of our Independent Auditors Report to the members of the Company on theFinancial Statements for the year ended 31 March 2019; we report that:

1. Fixed Assets

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

(b) During the year the Property Plant and Equipment of the Company have beenphysically verified by the Management as per the regular programme of verification whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. As informed no material discrepancies were noticed on such verification.

(c) The title deeds of the immovable properties are partially held by the Company andpartially mortgage. Details of the same are attached herewith marked as 'Annexure Ill'.

2. Inventories

a. The inventory has been physically verified during the year by the Management. In ouropinion the frequency of verification is reasonable.

b. On the basis of our examination of the records of inventory we are of the opinionthat the Company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material.

3. Loans Granted

The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of theOrder are not applicable to the Company and hence not commented upon.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 1 85 and 1 86 of the Companies Act201 3; in respect of loans investments guarantees and security

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from public within the meaning of directives issuedby Reserve Bank of India and the provisions of Section 73 to 76 of the Companies Act 2013or any other relevant provisions of Companies Act and the Rules framed there under. Hencethe Companies (Acceptance of Deposit) Rules 2015; with regard to the deposits acceptedfrom the public are not applicable.

6. We have broadly reviewed the books of account maintained by the Company in respectof products where the maintenance of cost records has been specified by the CentralGovernment under sub - section (1) of Section 148 of the Act and the rules framed thereunder and we are of the opinion that prima facie the prescribed account and records havebeen maintained. However we have not made detailed examination of cost records with aview to determine whether they are accurate or complete.

7. Statutory Dues

a. According to the records of the Company the Company is generally regular indeposing with appropriate authorities undisputed statutory dues including Provident FundEmployees' State Insurance Income-Tax Goods and Service tax Duly of Customs Cess andany other material statutory dues applicable to it.

b. According to the records of the Company there are no dues of Income Tax of SalesTax or Service Tax or Duty of Customs or Duty of Excise or Value Added Tax Goods andService tax which has not been deposited on account of any dispute.

8. Based on our audit procedures and on the information and explanations given by theManagement we are of the opinion that the Company has not defaulted in repayment of Loansor Borrowing to a Financial Institution Bank Government or dues to Debenture holders.

9. The Company has not raised moneys by way of Initial Public Offer or Further PublicOffer (including debt instruments) and term loans were applied for the purposes for whichthose are raised.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come acrossinstance of material fraud or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such instances by theManagement.

11. According to the information and explanations given by the management themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

12. In our opinion and according to the information and explanation given to us theCompany is not a chit fund or a nidhi mutual benefit fund / society. Therefore theprovisions of clause 4 (xii) of the Companies (Auditors Reports) Order 201 3 are notapplicable to the Company.

13. According to the information and explanations given by the Management and based onour examination of records of the Company; transaction entered into by the Company withthe Related Parties are in compliance with Sections 1 77 and 188 of the Act whereapplicable.

14. The details of Related Parly Transaction have been disclosed in the FinancialStatement as required under Indian Accounting Standards (lnd AS) 24 Related partyDisclosures specified under section 133 of the Act read with relevant rules issuedthereunder.

15. Based on our audit procedures and on the information and explanations given by theManagement the Company has made Preferential allotment or Private placement of shares orfully or partly convertible debentures during the year under review. However the detailsof Preferential allotment of shares have been disclosed in financial statement.

16. Based on our audit procedures and on the information and explanations given by theManagement we are of the opinion that the Company has not entered into any non-cashtransactions with Directors or persons connected with him.

17. In our opinion the Company is not required to be registered under section 45 lA ofthe Reserve Bank of India Act 1 934 and accordingly; the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For SAVLA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO - 109361W
DEEPAK G. SAVLA
Place: Mumbai (PARTNER)
Date: 10th June 2019 Membership No.: 043901

Annexure II to Auditors Report

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

We have Audited the internal financial controls over financial reporting of FREDUNPHARMACEUTICALS LTD. ("the Company") as of March 312019 in conjunction with ouraudit 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 ('ICAI'). 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 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 controls systemover 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 31 March 201 9; 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 SAVLA ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REG. NO - 109361W
DEEPAK G. SAVLA
Place: Mumbai (PARTNER)
Date: 10th June 2019 Membership No.: 043901

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