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-2.2 (-0.79%) | Auditor's Report (Biocon) | Year End : Mar '12 |
1. We have audited the attached Balance Sheet of Biocon Limited (''the
Company'') as at March 31, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company''s 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 (Auditor''s 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, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account,
iv. In our opinion, the balance sheet, statement of profit and loss
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, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 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, 2012,
(b) in the case of the statement of profit and loss, 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.
Annexure referred to in paragraph 3 of our report of even date
Re: Biocon Limited (''the Company'')
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification, intended to cover all the fixed assets of the Company
over a period, which in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable. Inventories lying with outside parties have been confirmed
by them as at year end.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory.
Discrepancies noted on physical verification of inventories were not
material, and have been properly dealt with in the books of account.
(iii) (a) Company has granted unsecured loans to four companies covered
in the register maintained under section 301 of the Companies Act, 1956
(''the Act''). The maximum amount involved during the year was Rs 2,123
million and the balance outstanding at March 31, 2012 from such parties
was Rs 1,729 million.
(b) In our opinion and according to the information and explanations
given to us, and having regard to management''s representation that
interest free loans given to certain wholly-owned subsidiaries of the
Company are in the interest of the Company''s business, the rate of
interest, wherever applicable, and other terms and conditions for such
loans are not prima facie prejudicial to the interest of the Company
(c) In respect of loans granted, repayment of the principal amount is
as stipulated and payment of interest, wherever applicable, has been
regular.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Act.
(e) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under section 301 of
the Act. Accordingly, the provisions of clause 4(iii)(e) to (g) of the
Companies (Auditor''s Report) Order, 2003 (as amended) (''the Order'') are
not applicable to the Company and hence not commented upon.
(iv) I n 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, we have not observed any major weakness or
continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas.
(v) (a) 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.
(b) I n respect of transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakhs entered into
during the financial year, because of the unique and specialized nature
of the items involved and absence of any comparable prices, we are
unable to comment whether the transactions were 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, related
to the manufacture of biotechnology products, and are of the opinion
that prima facie, the prescribed accounts and records have been made
and maintained.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities 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.
(b) According to the information and explanations given to us, no
undisputed amounts payable 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 material statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, custom duty, excise
duty and cess on account of any dispute, are as follows:
Name of the statute Nature of dues Amount Period to which
the amount
(Rs.in
Million) relates
The Central Excise
Act, 1944 Excise Duty 1* 1994-1995
The Central Excise
Act, 1944 Excise Duty 89 2005-2008
The Central Excise
Act, 1944 Excise Duty 10 2010-2011
The Customs
Act, 1962 Customs Duty 4 2004-2005
(3*)
and
2007-2008
The Customs
Act, 1962 Customs Duty 23* 2008-2009,
2010-2011
and
2011-2012
Karnataka VAT
Act, 2003 Value added tax 6 2005-2006
Appeals,
Bangalore
(1*)
Income-tax
Act, 1961 Income Tax 4* 1996-1997
Income-tax
Act, 1961 Income Tax 4* 1997-1998
Income-tax
Act, 1961 Income Tax 90 2002-2008
(Appeals)
(82*)
Name of the
Director Forum where dispute
is pending
The Central
Excise Act,1944 Assistant Collector
Central Excise
The Central
Excise Act,1944 Cutoms, Excise and
service Tax Appellate
Triubunal Chennai
The Central
Excise Act,1944 Commissioner Appeals
Chennai
The Customs
Act,1962 Cutoms. Excise and
service Tax Appellate
Tribunal Chennai
The Customs Commissioner Appeals
Banngalore
Karnataka VAT
Act,2003 Joint Commissioner
Appeals Bangalore
Act,1962
Income -tax
Act,1961 Supreme Court
Income -tax
Act,1961 High Court of Karnataka
Income -tax Commissioner of Income
Act,1961 Tax (Appeals)
* These amounts are paid in protest.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial institution
and banks. The Company does not have any borrowing by way of debenture.
(xii) According to the information and explanations given to us and
based on the documents and records produced before 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) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company
(xiv) I n our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order 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) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(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 Act.
(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 year.
For S.R. BATLIBOI & ASSOCIATES
Firm registration number: 101049W
Chartered Accountants
per Aditya Vikram Bhauwala
Partner
Membership No.: 208382
Bangalore
April 27, 2012 |
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