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Lincoln Pharmaceuticals Ltd.

BSE: 531633 Sector: Health care
NSE: LINCOLN ISIN Code: INE405C01035
BSE 00:00 | 19 Jul 192.05 -4.10
(-2.09%)
OPEN

195.00

HIGH

195.00

LOW

191.00

NSE 00:00 | 19 Jul 192.20 -3.15
(-1.61%)
OPEN

197.00

HIGH

197.00

LOW

191.10

OPEN 195.00
PREVIOUS CLOSE 196.15
VOLUME 2114
52-Week high 274.80
52-Week low 148.00
P/E 11.72
Mkt Cap.(Rs cr) 384
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 195.00
CLOSE 196.15
VOLUME 2114
52-Week high 274.80
52-Week low 148.00
P/E 11.72
Mkt Cap.(Rs cr) 384
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lincoln Pharmaceuticals Ltd. (LINCOLN) - Auditors Report

Company auditors report

To

The Members of

Lincoln Pharmaceuticals Limited

Ahmedabad

1. Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of LINCOLNPHARMACEUTICALS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2017 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended anda summary of the significant accounting policies and other explanatoryinformation.

2. Management's Responsibility for the Standalone 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 Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies(Accounts)Rules2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; makingjudgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor's 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 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 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 financial statements.

4. 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 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:-

i. In the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

ii. In the case of the Statement Profit and Loss Account of the profit for the yearended on that date and

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

5. Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure-A a statement on the matters specified in paragraphs 3and4of the Order.

(ii) As required by Sectionl43(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 ofthose 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 Companies Act2013 read with Rule7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the 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 31st March 2017 from being appointed as a director in termsof Section 164(2)oftheAct.

(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 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 pending litigations on its financialposition in its financial statements. - Refer Note 26(k) to the financial statements;

ii. The Company does not have any long term contracts including derivative contractsfor which there were any material 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 the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management. - Refer Note 26(s) tothe financial statements.

ForJ. T. Shah & Co.
Chartered Accountants
[Firm Regd. No. - 109616W]
(J. T. Shah)
Place : Ahmedabad Partner
Date : 30-05-2017 [M. No. 3983]

ANNEXURE "A" TO THE AUDITORS REPORT Referred to in paragraph 5(i) of ourReport of even date to the Members of Lincoln Pharmaceuticals Limited for the year ended31st March 2017.

1. In respect of Fixed Assets :

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets on the basis of available information.

(b) As per the information and explanations given to us the management at reasonableintervals during the year in accordance with a programme of physical verificationphysically verified the fixed assets and no material discrepancies were noticed on suchverification as compared to the available records.

(c) As explained to us the title deeds ofall the immovable properties are held in thename of the company.

2. In respect of its Inventories :

As per the information and explanations given to us inventories were physicallyverified during the year by the management at reasonable intervals. No materialdiscrepancies were noticed on such physical verification.

3. In respect of Loans and Advances granted during the year:

The Company has granted unsecured loans to party covered in the Register maintainedunder section 189 of the Companies Act 2013. The details in respect of clause (iii) (a)to (c) of the Order are as under:-

(a) The terms and conditions of the grant of such loans are prima facie not prejudicialto the interest of the company.

(b) The principal amount of loan has been repaid as per stipulated terms and such partyis regular in payment of interest.

(c) There is no overdue amount of loans granted to parties covered in the Registermaintained under section 189 of the Companies Act 2013.

4. Loans Investments and guarantees:

In our opinion and according to the information and explanation given to us thecompany had complied with provisions of section 185 and 186 of the Companies Act 2013 inrespect of granting loans guarantee or security or making any investments.

5. Acceptance of Deposits:

During the year the company has not accepted any deposits and hence the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under are notapplicable to the company. Therefore clauses (v) of companies (Auditor's Report) Order2016 is not applicable.

6. Cost Records:

We have broadly reviewed the books of account maintained by the company pursuant to thecompanies (Cost Accounting Records) Rule2011 prescribed by the Central Government undersub section (1) of section 148 of the Companies Act 2013. However we have not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. In respect of Statutory Dues :

(a) According to the records of the Company the Company is by and large regular indepositing with appropriate authorities undisputed statutory dues including providentfundemployees' state insuranceincome tax duty of customs duty of excise value addedtaxcessand any other statutory dues with the appropriate authorities applicable to itexcept delay in few cases in respect of tax deducted at source and service tax. Accordingto the information and explanations given to us no undisputed amounts payable in respectof statutory dues were outstanding as at 31st March 2017 for a period of morethan six months from the date they became payable.

(b) According to the records of the company the dues of income tax service tax dutyof customs duty of excise value added tax or cess which have not been deposited onaccount of disputes and the forum where the dispute is pending are as under:

Name of the Statute Nature of the Dues Financial Year Amount

(?)

Forum where dispute is pending
Income Tax Act1961 Income Tax Demand 2009-10 17018480 Commissioner of Income Tax (Appeals)
Income Tax Act1961 Income Tax Demand 2012-13 410360 Income Tax Appellate Tribunal
Income Tax Act1961 Income Tax Demand 2013-14 4074950 Commissioner of Income Tax (Appeals)

8. Default in repayment:

Based on our audit procedure and according to the information and explanation given tous we are of the opinion that the Company has not defaulted in repayment of dues to aFinancial Institutions Banks or Government authorities. The company has no debentureholder borrowing during the year.

9. Application of raised fund:

According to the information and explanations given to us the company had not raisedany money by way of public issue during the year. According to the information andexplanations given to us and on an overall examination of the balance sheet of thecompany in our opinion the term loans taken during the year were applied for the purposefor which they were obtained.

10. Fraud:

Based upon the audit procedures performed and information and explanations given by themanagement we report that no fraud by the Company or any fraud on the company by itsofficer or employees has been noticed or reported during the course of our audit.

11. In our opinion and according to the information and explanations given to us thecompany had paid managerial remuneration which is in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V of The CompaniesAct 2013.

12. In our opinion and according to the information and explanations given to us theprovisions of special statute applicable to chit funds and nidhi / mutual benefit funds /societies are not applicable to the company. Hence paragraph3(xii) of the Company's(Auditor's Report) Order 2016 is not applicable.

13. In our opinion and according to the information and explanations given to us thetransactions entered by the company with related parties are in compliance with theprovisions of section 177 and 188 of the Companies Act 2013 and details thereof areproperly disclosed in the financial statements.

14. During the year The Company has converted warrants into equity shares issuedpreviously through preferential allotment of shares and has complied with the requirementof section 42 of the Companies Act 2013 further amount raised by said preferential issuehave been used for the purpose for which funds were raised. Refer Note 26(r) to thefinancial statements.

15. The company had not entered in to any non-cash transactions with the directors orpersons connected with him during the year hence section 192 of the Companies' Act 2013is not applicable hence clause (xvi) of Company's (Auditor's Report) Order 2016 is notapplicable.

16. As the company is not required to register under section 45-IA of Reserve Bank ofIndia Act 1934 hence clause (xvi) of Company's (Auditor's Report) Order 2016 is notapplicable.

For J. T. Shah & Co.
Chartered Accountants
[Firm Regd. No. - 109616W]
(J. T. Shah)
Place : Ahmedabad Partner
Date : 30-05-2017 [M. No. 3983]

ANNEXURE "B" TO THE AUDITORS REPORT Referred to in paragraph 5(ii) (f) to TheIndependent Auditor's Report of Even Date on the Standalone Financial Statements ofLincoln Pharmaceuticals Limited

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 financial reporting of LincolnPharmaceuticals Limited as of 31st March 2017 in conjunction with our audit of thestandalone 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 (l)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 31st 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.

ForJ. T. Shah & Co.
Chartered Accountants
[Firm Regd. No. - 109616W]
(J. T. Shah)
Place : Ahmedabad Partner
Date : 30-05-2017 [M. No. 3983]