Biocon
BSE: 532523 | NSE: BIOCON | ISIN: INE376G01013 | Pharmaceuticals
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of Biocon Limited (the
Company) as at March 31, 2009 and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
v. On the basis of the written representations received from the
directors, as on March 31, 2009, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2009 from being appointed as a director in terms of Clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the balance sheet, of the state of affairs of the
Company as at March 31, 2009;
(b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
(c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
Re: BIOCON LIMITED
(i) The Company has maintained proper records showing full particulars,
including quantitative details and situation, of fixed assets. Fixed
assets have been physically verified by the management during the year
in accordance with a regular programme of verification, intended to
cover all the fixed assets of the Company over a period of two years,
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. As informed, no material
discrepancies were noticed on such verification. There was no disposal
of fixed assets during the year.
(ii) The management has conducted physical verification of inventory at
reasonable intervals during the year. The procedures of physical
verification of inventory (except for goods in bond and in transit)
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business. The Company is
maintaining proper records of inventory and there were no material
discrepancies noticed on physical verification.
(iii) As informed, the Company has granted unsecured loans to three
companies listed in the register maintained under Section 301 of the
Companies Act, 1956 (the Act). The maximum amount involved during the
year was Rs 2,237,590 thousands and the balance outstanding as at March
31, 2009 is Rs 2,024,938 thousands. In our opinion and according to the
information and explanations given to us, the rate of interest, where
applicable, and other terms and conditions of the loans given by the
Company, are not prima facie prejudicial to the interest of the
Company. In respect of loans granted, repayment of the principal amount
is as stipulated and payment of interest, wherever applicable, has been
regular. Based on our audit procedures and the information and
explanation made available to us, there is no overdue amount of the
loan granted by the Company to the companies listed in the register
maintained under Section 301 of the Companies Act, 1956. The Company
has not taken/granted any other loans from/to companies, firms or other
parties listed in the register maintained under Section 301 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, as well as taking into consideration the management
representation that certain items of fixed assets are of special nature
for which alternative quotations are not available, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business, for the purchase of fixed
assets and inventory and for the sale of goods and services. During the
course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas.
(v) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Act, that need to be
entered into the register maintained under Section 301 have been so
entered. In respect of transactions made in pursuance of such contracts
or arrangements exceeding value of Rupees five lakhs entered into
during the financial year, because of the unique and specialized nature
of items involved and absence of any comparable prices, we are unable
to comment whether the transactions are made at prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system,
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Act, and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained.
(ix) Undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income-tax,
sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and
other material statutory dues applicable to it have generally been
regularly deposited with the appropriate authorities.
According to the information and explanations given to us, there were
no undisputed dues in respect of provident fund, investor education and
protection fund, employees state insurance, income-tax, wealth-tax,
service tax, sales-tax, customs duty, excise duty, cess and other
statutory dues which were outstanding, at the year end for a period of
more than six months from the date they became payable.
According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of the statute Nature of dues Amount
(Rs In thousands)
The Central Excise Act, 1944 Excise duty 633*
The Central Excise Act, 1944 Excise duty 859
The Customs Act, 1962 Customs duty 1,491
The Customs Act, 1962 Customs duty 1,514*
The Central Excise Act, 1944 Excise duty 88,209
Finance Act, 1994 Service tax 1,437
Karnataka Tax on Entry of Entry tax 1,537
Goods Act, 1979
Income-tax Act, 1961 Income tax 2,077*
Period to which the Forum where dispute is pending
amount relates
1994-1995 Assistant Collector of Central Excise.
2005-2006 Customs, Excise and Service Tax Appellate
Tribunal, Chennai
2004-2005 Customs, Excise and Service Tax Appellate
Tribunal, Chennai
2004-2005 Customs, Excise and Service Tax Appellate
Tribunal, Chennai
April 2005 till March Customs, Excise and Service Tax Appellate
2008 Tribunal, Chennai
2004-2005 Customs, Excise and Service Tax Appellate
Tribunal, Chennai
2002-2003 The Company is in the process of filing an
appeal with High Court
1993-1994 High Court of Karnataka.
Name of the statute Nature of dues Amount
(Rs in thousands)
Income-tax Act, 1961 Income tax 2,874*
Income-tax Act, 1961 Income tax 2,952*
Income-tax Act, 1961 Income tax 3,879*
Income-tax Act, 1961 Income tax 4,040*
Income-tax Act, 1961 Incometax 1071*
Income-tax Act, 1961 Incometax 17,619
*(14,968paid)
Income-tax Act, 1961 Incometax 30,551*
Income-tax Act, 1961 Income tax 18,940*
Income-tax Act, 1961 Incometax 15,062
Period to which the Forum where dispute is pending
amount relates
1994-1995 Supreme Court
1995-1996 Supreme Court
1996-1997 Supreme Court
1997-1998 High Court of Karnataka.
1999-2000 Commissioner of Income Tax (Appeals)
2002-2003 Commissioner of Income Tax (Appeals)
2003-2004 Commissioner of Income Tax (Appeals)
2004-2005 Commissioner of Income Tax (Appeals)
2005-2006 Commissioner of Income Tax (Appeals)
* These amounts are paid
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) As informed to us, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of Clause
4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) As informed to us, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of Clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks or
financial institutions, the terms and conditions whereof in our opinion
are not prima - facie prejudicial to the interest of the Company.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For S.R. BATLIBOI & ASSOCIATES
Chartered Accountants
per Sunil Bhumralkar
Partner
Membership Mo.: 35141
Bangalore
April 28, 2009 |
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