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Kilitch Drugs (India) Ltd.

BSE: 524500 Sector: Health care
NSE: KILITCH ISIN Code: INE729D01010
BSE 00:00 | 17 Aug 155.70 6.35
(4.25%)
OPEN

149.00

HIGH

162.00

LOW

148.50

NSE 00:00 | 17 Aug 156.50 7.10
(4.75%)
OPEN

150.00

HIGH

162.75

LOW

148.30

OPEN 149.00
PREVIOUS CLOSE 149.35
VOLUME 113659
52-Week high 162.00
52-Week low 48.55
P/E 20.41
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 149.00
CLOSE 149.35
VOLUME 113659
52-Week high 162.00
52-Week low 48.55
P/E 20.41
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kilitch Drugs (India) Ltd. (KILITCH) - Auditors Report

Company auditors report

To

The Members of

KILITCH DRUGS (INDIA) LIMITED

Report on the Financial Statements

We have audited the accompanying financial Kilitch Drugs (India) Limited statementsof("the Company") which comprise the Balance Sheet as at 31st March 2017Statement of Profit and Loss and Cash Flow Statement accounting policies and otherexplanatory information.

Management’s 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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecifiedunder section 133 of the Act read with rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofthe appropriate accounting policies; making judgements and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and fair presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s 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 thereunder.

We conducted ourauditinaccordancewiththeStandardsonAuditingspecifiedunder Section143(10) of the Act. Those standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial procedures selected depend on the auditor’s judgementincluding 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 financial control relevant to the statements that give a trueCompany’spreparationofthefinancial 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 system overfinancial reporting and the operating effectiveness of such controls. An audit alsoaccounting policies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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 financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

i. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

ii. In the case of the Statement of Profit and Loss of the Loss of the Company for theyear ended on that date.

iii. In the case of the Cash Flow Statement of the Cash Flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of section 143 of the Act(11 of 2013) we give in the Annexure a statement on the matters specified in paragraph 3and 4 of the Order.

2. As required under provisions of 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 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 aforesaid financial statements comply with the accountingstandards specified read with Rule 7 of the Companies (Accounts) Rules 2014.

e. On the basis of written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of section164(2) of the Act.

f. With respect to the adequacy of the internal financial control 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 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 has disclosed the impact of the pending litigations financial positionvide Note No. 22 (b) to the its financial statements.

ii. The Company did not have any long term contracts including derivative contractsthat require provision under any law or accounting standards for which there were anymaterial foreseeable losses.

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

iv. 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 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. [Refer Note no 33 to the Financial Statements].

For A. M. Ghelani & Company

Chartered Accountants

Firm Registration No. : 103173W

Chintan A. Ghelani

Partner

Membership No. : 104391

Date :30th May2017

Place : Mumbai

Annexure referred to in paragraph 1 under the heading Report on other legal andregulatory requirements of our report of even date

i) In respect of its Fixed Assets :

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of its Fixed Assets which we are informed are beingupdated.

b. As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c. In our opinion and according to the information and explanations given to us theTitle Deeds of immovable properties are held in the name of company.

ii) In respect of its Inventories :

a. As explained to us inventories have been physically verified by the management atthe end of the year. In our opinion the frequency of verification is reasonable.

b. According to the information and explanations given to us in our opinion theprocedures of physical verification of stocks followed by the management are reasonableand adequate in relation to the size of the company and the nature of its business.

c. The Company is maintaining proper records of its inventory. No materialdiscrepancies were noticed on verification between the physical stocks and book recordshaving regards to the size of the operations of the company.

iii) The Company has not granted any loans secured or unsecured to Companies / firmsor other parties covered in the register maintained under section 189 of the Act.Consequently the requirements of Clause (iii) (a) and Clause (iii) (b) of paragraph 3 ofthe Order are not applicable to the company.

iv) According to the information and explanations given to us the Company has notentered into any transactions of loans investments guarantees and securities covered u/s185 and 186 of the Companies Act 2013 and hence the provisions of clause (iv) ofparagraph 3 of the Order are not applicable to the company.

v) According to the information and explanations given to us the company has notaccepted any deposits within the meaning of provisions of section 73 to 76 or any otherrelevant provisions of the Act and rules framed hereunder. Therefore provisions of Clause(v) of paragraph 3 of the Order are not applicable to the company.

vi) We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Accounting Records) Rules 2014 prescribed by the Central Government underSub Section (1) of Section 148 of the Act and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

vii) In respect of Statutory dues :

a. According to the records of the Company undisputed statutory dues includingProvident Fund Employees’ State Insurance Income Tax Sales Tax Service Tax Dutyof Customs Duty of Excise Value Added Tax Cess and other material statutory dues whichare applicable to the company have been regularly deposited with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the aforesaid dues were outstanding as at March 31 2017 fora period of more than six months from the date of becoming payable.

b. The disputed statutory dues aggregating to Rs. 50305650/- that have not beendeposited on account of the matters pending before the appropriate authorities are asunder:

Name of the Statute Nature of Dues Amount in Rupees Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 50305650 A.Y. 2008-09 CIT (Appeals)

not defaulted in re-payment of dues if any to financial institutions/banks.

ix) The Company has not obtained any term loans during the year under report.

x) In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year.

xi) Based upon the audit procedures performed and information and explanation given bythe management the managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provision of section 197 read with "schedulev" to the companies Act 2013.

xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause (xii) of the Paragraph 3 of the order are not applicable to the Company.

xiii) In our opinion all the transactions with related parties are in compliance withsection 177 and 188 of The Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable Accounting Standards.

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause (xiv) of paragraph 3 of the Order are not applicable to the Company.

xv) The Company has not entered into any Non-Cash transaction with Director or Personsconnected with him. Hence the requirements of Clause (xv) of paragraph 3 of the Order arenot applicable to the Company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and accordingly the provisions of Clause (xvi) of the paragraph 3of Order are not applicable to the Company

For A. M. Ghelani & Company

Chartered Accountants

Firm Registration No. : 103173W

Chintan A. Ghelani

Partner

Membership No. : 104391

Date :30th May2017

Place : Mumbai

"Annexure B" referred to in paragraph 1 under the heading Report on otherlegal and regulatory requirements of our report of even date

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

We have audited the internal financial controls over financialreporting ofKilitchDrugs (India) Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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". 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 assetsthe prevention 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 evaluating thedesign and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 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 internal financial control evaluationoftheinternal financial overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in allmaterial respects financial controls systemover financial reporting and such adequateinternal were operating effectively as at March31 2017 based on "the internal control over internalfinancial controlsoverfinancialconsidering the essential components of internal control stated in the Guidance Notefinancial on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India".

For A. M. Ghelani & Company

Chartered Accountants

Firm Registration No. : 103173W

Chintan A. Ghelani

Partner

Membership No. : 104391

Date :30th May2017

Place : Mumbai