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IOL Chemicals & Pharmaceuticals Ltd.

BSE: 524164 Sector: Health care
NSE: IOLCP ISIN Code: INE485C01011
BSE 00:00 | 22 Feb 196.10 1.55
(0.80%)
OPEN

194.35

HIGH

197.40

LOW

192.00

NSE 00:00 | 22 Feb 196.05 1.40
(0.72%)
OPEN

194.50

HIGH

197.50

LOW

192.25

OPEN 194.35
PREVIOUS CLOSE 194.55
VOLUME 70152
52-Week high 225.40
52-Week low 70.45
P/E 7.52
Mkt Cap.(Rs cr) 1,102
Buy Price 194.20
Buy Qty 500.00
Sell Price 196.10
Sell Qty 101.00
OPEN 194.35
CLOSE 194.55
VOLUME 70152
52-Week high 225.40
52-Week low 70.45
P/E 7.52
Mkt Cap.(Rs cr) 1,102
Buy Price 194.20
Buy Qty 500.00
Sell Price 196.10
Sell Qty 101.00

IOL Chemicals & Pharmaceuticals Ltd. (IOLCP) - Auditors Report

Company auditors report

To the Members of IOL Chemicals and Pharmaceuticals Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of IOLChemicals and Pharmaceuticals Limited (‘the Company') which comprise thebalance sheet as at 31 March 2018 the statement of profit and loss (including othercomprehensive income) the statement of changes in equity and the statement of cash flowsfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; the selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financialstatements based 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 in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Board of Directors as well as evaluating the overall presentation of theInd AS financial statements.

We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 and its profit total comprehensive income the changes inequity and the 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") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure A" which forms a partof this report a statement on the matters specified in the paragraph 3 and 4 of theorder.

2. As required by Section 143(3) of the Act based on our audit wereport 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 of those books;

(c) The balance sheet the statement of profit and loss (includingother comprehensive income) the statement of cash flows and statement of changes inequity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards prescribed under Section 133 of the Act read withrelevant rules issued thereunder;

(e) On the basis of the written representations received from thedirectors of the Company as on 31st March 2018 taken on record by the Board of Directorsnone of the Directors is disqualified as on 31st March 2018 from being appointed as aDirector in terms of Section 164(2) of the 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". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company's internalfinancial controls over financial reporting and;

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The company has disclosed the impact of pending litigations on itsfinancial position in its Ind AS financial statements. Refer Note 31 to the Ind ASfinancial statements. ii. The company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses; and

iii. There were no amounts which were to be transferred to theInvestor Education and Protection Fund by the Company.

Other Matter

The comparative financial information of the Company for the year endedMarch 31 2017 and the transition date opening balance sheet as at April 01 2016 includedin these standalone Ind AS financial statements are based on previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounts) Rules 2014 (asamended) whose report for the year ended March

312017 and March 31 2016 dated 27 May 2017 and 2nd May 2016respectively expressed an unmodified opinion on those standalone financial statements asadjusted for the differences in the accounting principles adopted by the Company ontransition to the Ind AS which have been audited by us.

For SCV & Co. LLP; Chartered Accountants Reg. No.000235N/N500089

Sd/-(Sanjiv Mohan) Place: Ludhiana Partner Date: 16th May 2018 M. No.086066

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of IOL Chemicals andPharmaceuticals Limited of even date)

i) In respect of the Company's fixed assets:-

a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b) According to information and explanations given to us the fixedassets of the Company have been physically verified by the management during the year. Nomaterial discrepancies were noticed on such physical verification. In our opinion thefrequency of physical verification of fixed assets is reasonable having regard to the sizeof the Company and nature of its assets.

c) According to information and explanations given to us and on thebasis of our examination of records of the company the title deeds of immovable propertiesare held in the name of the company.

(ii) According to the information and explanations given to us theinventories have been physically verified by the management at the reasonable intervalsduring the year. In our opinion the frequency of verification is reasonable.

According to the information and explanations given to us nodiscrepancies were noticed on physical verification.

(iii) According to the information and explanations given to us wereport that the Company has not granted any loans secured or unsecured to companiesfirms limited liability partnership or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Therefore the provisions of paragraph 3(iii)(a) (b) and (c) of the Order are not applicable to the Company.

(iv) According to the information and explanations given to us theCompany has not granted loans to directors or any other person in whom director isinterested and also has not made loans guarantees or provided security in connection withloan to any person or other body corporates and has not acquired securities of any otherbody corporate. Therefore the provisions of section 185 and section 186 of the CompaniesAct 2013 are not applicable to the company. Thus paragraph 3(iv) of the Order is notapplicable to the company.

(v) According to the information and explanations given to us theCompany has not accepted deposits cover under the provisions of sections 73 to 76 otherrelevant provisions of the Companies Act 2013 and the rules framed thereunder. Accordingto the information and explanations given to us no order under the aforesaid sections hasbeen passed by the Company Law Board National Company Law Tribunal or Reserve Bank ofIndia or any Court or any other Tribunal on the Company.

(vi) We have broadly reviewed the books of account maintained by thecompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have however not made adetailed examination of such records with a view to determine whether they are accurate orcomplete.

(vii) (a) According to the information and explanations given to us andon the basis of the records of the Company examined by us in our opinion the Company hasbeen regular in depositing undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax duty of custom dutyof excise value added tax cess goods and service tax and other statutory dues with theappropriate authorities.

According to the information and explanations given to us noundisputed amounts in respect of statutory dues payable were outstanding as on the lastday of the financial year concerned for a period of more than six months from the datethey became payable as at 31st March 2018.

(b) According to the information and explanations there are no dues ofincome tax service tax duty of custom duty of excise which have not been deposited withthe appropriate authorities on account of any dispute.

(viii) According to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to a financial institutionbank or government. The Company has not issued any debentures during the year or in thepreceding year.

(ix) In our opinion and according to the information and explanationsgiven to us the term loans taken during the year by the Company have been applied for thepurpose for which they were raised. The company has not raised money by way of initialpublic offer or further public offer (including debt instruments) during the year.

(x) According to the information and explanations given to us no fraudon or by the company or on the company by its officers or employees has been noticed orreported during the course of our audit.

(xi) According to the information and explanations given to us andbased on the records of the company the company has paid / provided for the managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us thecompany is not a Nidhi Company. Therefore the provisions of paragraph 3(xii) of the orderare not applicable.

(xiii) According to the information and explanations given to us andbased on our examinations of the records of the company transactions with the relatedparties are in compliance with section 177 and section 188 of the Act where applicableand the details of the transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us thecompany has not made preferential allotment or private placement of shares or fully orpartly convertible debentures during the financial year under audit. Thus the provisionsof paragraph 3 (xiv) of the Order are not applicable.

(xv) According to information and explanations given to us and basedon our examination of the records of the company the company has not entered intonon-cash transactions with directors or persons connected with them. Accordinglyprovisions of paragraph 3 (xv) of the Order are not applicable.

(xvi) According to the information and explanations given to us thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For SCV & Co. LLP; Chartered Accountants Reg. No.000235N/N500089

Sd/-(Sanjiv Mohan) Place: Ludhiana Partner Date: 16th May 2018 M. No.086066