We have audited the accompanying standalone financial statements of
AJANTA PHARMA LIMITED (the Company), which comprise the Balance Sheet
as at 31st March 2015, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015, and its profit and its cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2015 (the
Order), issued by the Central Government of India in terms of
sub-section 11 of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of 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 the Company so far as it appears from our examination of those
c) the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on 31st March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2015
from being appointed as a director in terms of Section 164 (2) of the
f) with respect to the other matters to be included in the Auditor''s
Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations
given to us:
i. The Company has disclosed the impact, if any, of pending litigations
as at 31st March 2015, on its financial position in its standalone
financial statements - Refer Note 33 to the financial statements;
ii. The Company has not entered into any on long-term contracts
including derivative contracts requiring provision under the applicable
law or accounting standards, for material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Annexure to the Independent Auditors'' Report (The Annexure referred to
in para 1 under the heading Report on Other Legal and Regulatory
Requirements of our report of even date to the Members of AJANTA
PHARMA LIMITED on the financial statements for the year ended 31st
1) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets except in
respect of additions made during the year which are in the process of
b) As informed to us by the management the Company has a policy of
physically verifying fixed assets in a phased manner over a period
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. We are informed that there was no
material discrepancies noticed on such verification which were
accounted in the financial statements.
2) In respect of its inventories:
a) As explained to us, the inventories were physically verified by the
management at reasonable intervals during the year except for stocks
with third parties for which most of the confirmation certificates have
been obtained by the Company.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and the discrepancies noticed on such physical verification
between physical stock and book records were not material and have been
adequately dealt with in the books of account.
3) According to the information and explanations given to us, the
Company has not granted any loan, secured or unsecured, to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013 and hence, clause 3(iii) of the Order is
not applicable to the Company.
4) In our opinion and according to the information and explanations
given to us, there exist an adequate internal control system
commensurate with the size of the Company and nature of its business
with regard to purchases of inventory, fixed assets and for the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
5) The Company has not accepted any deposit from public. No order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
6) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under 1 48(1 ) of the Companies Act, 2013
in relation to products manufactured, and are of the opinion that,
prima facie, the prescribed accounts and records have been made and
maintained. We have not made a detailed examination of the records with
a view to determine whether they are accurate and complete.
7) According to the information and explanations given to us:
a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues with the
appropriate authorities during the year. There are no undisputed
amounts payable in respect of aforesaid material statutory dues as at
31st March 2015, which were in arrears for a period of more than six
months from the date they became payable.
b) On the basis of our examination of the documents and records of the
Company, there are no dues of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Value Added Tax and Cess which
have not been deposited on account of a dispute, except as enumerated
herein below which are pending before respective authorities as
mentioned there against:
Name of the statute Nature of the Dues Amount*
(Rs in Crore)
The Bombay Sales Tax Act, Sales Tax/Interest/ 0.07
The A. P. VAT Act, 2005 VAT/Interest/Penalty 0.15
Central Excise Act, 1944 Excise 0.06
Central Excise Act, 1944 Excise 0.04
Name of the statute Period to which Forum where dispute
The Bombay Sales
1959 FY 2004-05 Maharashtra Sales Tax
The A. P. VAT Act, 2005 FY 2009-10 Appellate Dy.
Central Excise Act, 1944 FY 2007-08 Commissioner of
to FY 2008-09 Thane-II_
Central Excise Act, 1944 FY 2006-07 Assistant Commissioner
to FY 2010-11 Excise Thane-II
*Net of amounts paid under protest or otherwise. Amount as per demand
order including interest and penalty wherever quant .
c) The amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there under
has been transferred to such fund within time.
8) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash losses during the
current and the immediately preceding financial year.
9) Based on our audit procedures, information and explanations given to
us, in our opinion the Company has not defaulted in repayment of dues
to financial institutions and banks. The Company does not have any
outstanding debentures during the year.
10) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
11) According to the information and explanations given to us, the
Company has not taken any term loan during the year.
12) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the course of our audit.
For Kapoor & Parekh Associates
ICAI FRN 104803W
S. S. Kapoor
Mumbai, 8th May 2015