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Sun Pharmaceuticals Industries Ltd.

BSE: 524715 Sector: Health care
NSE: SUNPHARMA ISIN Code: INE044A01036
BSE 00:00 | 16 Nov 519.60 4.65
(0.90%)
OPEN

522.00

HIGH

525.60

LOW

514.15

NSE 00:00 | 16 Nov 519.75 4.65
(0.90%)
OPEN

518.40

HIGH

525.55

LOW

513.40

OPEN 522.00
PREVIOUS CLOSE 514.95
VOLUME 458058
52-Week high 678.80
52-Week low 434.80
P/E 161.37
Mkt Cap.(Rs cr) 124,668
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 522.00
CLOSE 514.95
VOLUME 458058
52-Week high 678.80
52-Week low 434.80
P/E 161.37
Mkt Cap.(Rs cr) 124,668
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sun Pharmaceuticals Industries Ltd. (SUNPHARMA) - Auditors Report

Company auditors report

To the Members of Sun Pharmaceutical Industries Limited

Report on the Consolidated Ind AS Financial Statements

We have audited the accompanying consolidated Ind AS financial statements of SunPharmaceutical Industries Limited (hereinafter referred to as “the HoldingCompany”) its subsidiaries (the Holding Company and its subsidiaries togetherreferred to as “the Group”) its associates and joint ventures comprising of theconsolidated Balance Sheet as at March 31 2018 the consolidated Statement of Profit andLoss including other comprehensive income the consolidated Cash Flow Statement theconsolidated Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas “the consolidated Ind AS financial statements”).

Management's Responsibility for the Consolidated Ind AS Financial Statements

The Holding Company's Board of Directors is responsible for the preparation of theseconsolidated Ind AS financial statements in terms of the requirement of the Companies Act2013 (“the Act”) that give a true and fair view of the consolidated financialposition consolidated financial performance including other comprehensive incomeconsolidated cash flows and consolidated statement of changes in equity of the Groupincluding its Associates and Joint Ventures in accordance with accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with the Companies (Indian Accounting Standard) Rules2015 as amended. The respective Board of Directors of the companies included in the Groupand of its associates and joint ventures are responsible for maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Group and of its associates and joint ventures 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror which have been used for the purpose of preparation of the consolidated Ind ASfinancial statements by the Directors of the Holding Company as aforesaid.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated Ind AS financialstatements based on our audit. While conducting the audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder. We conducted our audit in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India as specified under 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 consolidated financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe consolidated financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the HoldingCompany's preparation of the consolidated Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Holding Company's Board ofDirectors as well as evaluating the overall presentation of the consolidated financialstatements. We believe that the audit evidence obtained by us and the audit evidenceobtained by the other auditors in terms of their reports referred to in sub-paragraph (a)of the Other Matters paragraph below is sufficient and appropriate to provide a basis forour audit opinion on the consolidated Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separatefinancial statements and on the other financial information of the subsidiariesassociates and joint ventures the aforesaid consolidated Ind AS financial statements givethe information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of theconsolidated state of affairs of the Group its associates and joint ventures as at March31 2018 their consolidated profit including other comprehensive income theirconsolidated cash flows and consolidated statement of changes in equity for the year endedon that date.

Other Matter

(a) We did not audit the financial statements and other financial information inrespect of 24 subsidiaries whose Ind AS financial statements without giving effect toelimination of intra group transactions include total assets of ' 566133.5 Million andnet assets of ' 418322.5 Million as at March 31 2018 and total revenues of ' 185173.2Million and net cash outflows of ' 6056.8 Million for the year ended on that date. Thesefinancial statement and other financial information have been audited by other auditorswhich financial statements other financial information and auditor's reports have beenfurnished to us by the management. The consolidated Ind AS financial statements alsoinclude the Group's share of net loss of ' 254.4 Million for the year ended March 312018 as considered in the consolidated financial statements in respect of 8 associatesand joint ventures whose financial statements other financial information have beenaudited by other auditors and whose reports have been furnished to us by the Management.Our opinion on the consolidated Ind AS financial statements in so far as it relates tothe amounts and disclosures included in respect of these subsidiaries joint ventures andassociates and our report in terms of sub-sections (3) of Section 143 of the Act in sofar as it relates to the aforesaid subsidiaries joint ventures and associates is basedsolely on the reports of such other auditors.

Certain of these subsidiaries are located outside India whose financial statements andother financial information have been prepared in accordance with accounting principlesgenerally accepted in their respective countries and which have been audited by otherauditors under generally accepted auditing standards applicable in their respectivecountries. The Company's management has converted the financial statements of suchsubsidiaries located outside India from accounting principles generally accepted in theirrespective countries to accounting principles generally accepted in India. We have auditedthese conversion adjustments made by the Company's management. Our opinion in so far as itrelates to the balances and affairs of such subsidiaries located outside India is based onthe report of other auditors and the conversion adjustments prepared by the management ofthe Company and audited by us.

(b) The accompanying consolidated Ind AS financial statements include unauditedfinancial statements and other unaudited financial information in respect of 39subsidiaries whose financial statements and other financial information without givingeffect to elimination of intra group transactions reflect total assets of ' 217210.8Million and net assets of ' 208537.0 Million as at March 31 2018 and total revenues of' 6131.0 Million and net cash outflows of ' 496.9 Million for the year ended on thatdate. These unaudited financial statements and other unaudited financial information havebeen furnished to us by the management. Our opinion in so far as it relates amounts anddisclosures included in respect of these subsidiaries joint ventures and associates andour report in terms of sub-sections (3) of Section 143 of the Act in so far as it relatesto the aforesaid subsidiaries joint ventures and associates is based solely on suchunaudited financial statement and other unaudited financial information. In our opinionand according to the information and explanations given to us by the Management thesefinancial statements and other financial information are not material to the Group.

(c) The consolidated Ind AS financial statements of the Company for the year endedMarch 31 2017 included in these consolidated Ind AS financial statements have beenaudited by the predecessor auditor who expressed an unmodified opinion on those statementson May 26 2017.

Our opinion above on the consolidated Ind AS financial statements and our report onOther Legal and Regulatory Requirements below is not modified in respect of the abovematters with respect to our reliance on the work done and the reports of the otherauditors and the financial statements and other financial information certified by theManagement.

Report on Other Legal and Regulatory Requirements

As required by section 143 (3) of the Act based on our audit and on the considerationof report of the other auditors on separate financial statements and the other financialinformation of subsidiaries associates and joint ventures as noted in the 'other matter'paragraph we report to the extent applicable that:

(a) We / the other auditors whose reports we have relied upon have sought and obtainedall the information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit of the aforesaid consolidated Ind AS financialstatements;

(b) In our opinion proper books of account as required by law relating to preparationof the aforesaid consolidation of the financial statements have been kept so far as itappears from our examination of those books and reports of the other auditors;

(c) The consolidated Balance Sheet consolidated Statement of Profit and Loss includingthe Statement of Other Comprehensive Income the consolidated Cash Flow Statement andconsolidated Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account maintained for the purpose of preparation of the consolidatedInd AS financial statements;

(d) In our opinion the aforesaid consolidated Ind AS financial statements comply withthe Indian Accounting Standards specified under section 133 of the Act read withCompanies (Indian Accounting Standard) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors of theHolding Company as on March 31 2018 taken on record by the Board of Directors of theHolding Company and the reports of the statutory auditors who are appointed under Section139 of the Act of its subsidiary companies associate companies and joint venturesincorporated in India none of the directors of the Group's companies its associates andjoint ventures incorporated in India is disqualified as on March 31 2018 from beingappointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy and the operating effectiveness of the internalfinancial controls over financial reporting with reference to these consolidated Ind ASfinancial statements of the Holding Company and its subsidiary companies refer to ourseparate report in “Annexure 1” to this report;

(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 as amended inour opinion and to the best of our information and according to the explanations given tous and based on the consideration of the report of the other auditors on separatefinancial statements as also the other financial information of the subsidiariesassociates joint ventures as noted in the 'Other matter' paragraph:

i. The consolidated Ind AS financial statements disclose the impact of pendinglitigations on its consolidated financial position of the Group its associates and jointventures - Refer Note 40 to the consolidated Ind AS financial statements;

ii. Provision has been made in the consolidated Ind AS financial statements asrequired under the applicable law or accounting standards for material foreseeablelosses if any on long-term contracts including derivative contracts - Refer (a) Note 23and Note 29 to the consolidated Ind AS financial statements in respect of such items as itrelates to the Group its associates and joint ventures and (b) the Group's share of netprofit/loss in respect of its associates;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Holding Company its subsidiariesassociates and joint ventures incorporated in India except a sum of ' 16.9 Million whichis held in abeyance due to pending legal cases.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration No.: 324982E/E300003
per PAUL ALVARES
Partner
Membership No.: 105754
Place: Mumbai
Date: May 25 2018