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Aurobindo Pharma Ltd.

BSE: 524804 | NSE: AUROPHARMA |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE406A01037 | SECTOR: Pharmaceuticals

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BSE Live

Feb 20, 10:30
605.25 3.00 (0.50%)
Volume
AVERAGE VOLUME
5-Day
374,895
10-Day
331,082
30-Day
199,928
221,397
  • Prev. Close

    602.25

  • Open Price

    610.00

  • Bid Price (Qty.)

    605.30 (98)

  • Offer Price (Qty.)

    605.60 (15)

NSE Live

Feb 20, 10:30
605.25 3.40 (0.56%)
Volume
AVERAGE VOLUME
5-Day
9,176,008
10-Day
8,096,862
30-Day
5,101,319
6,554,311
  • Prev. Close

    601.85

  • Open Price

    612.05

  • Bid Price (Qty.)

    605.25 (132)

  • Offer Price (Qty.)

    605.50 (2300)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Auditor's Report

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Aurobindo Pharma Limited (''the Company''), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the 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 of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act., read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these standalone Ind AS 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 there under. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 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 standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair 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 the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS 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 March 31, 2017, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s report) Order, 2016 (''the Order'') issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 purpose 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 books;

c. The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

e. On the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2017, from being appointed as a director in terms of Section 164 (2) of the Act;

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure 2'' to this report;

g. 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 of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 31(C) to the standalone Ind AS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any 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 Company;

iv. The Company has provided requisite disclosures in Note 12(D) to these standalone Ind AS financial statements as to the holding of Specified Bank Notes on November 8, 2016 and December 30, 2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on our audit procedures and relying on the management representation regarding the holding and nature of cash transactions, including Specified Bank Notes, we report that these disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the management.

Annexure 1 referred to in paragraph 1 of our report of even date

Re: Aurobindo Pharma 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 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. According to information and explanations given by the management, the title deeds of immovable properties, included in property, plant and equipment except for the following, are held in the name of the Company. As explained to us, registration of title deeds is in progress in respect of these immovable properties:

Category

No. of instances

Freehold/leasehold

Gross block as at March 31, 2017 (Rs.)

Net block as at March 31, 2017 (Rs.)

Land

5

Freehold land

131,777,536

131,777,536

Building

1

Freehold building

35,341,469

16,374,923

TOTAL

167,119,005

148,152,459

ii. The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.

iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.

iv. In our opinion and according to the information and explanations given to us, the Company has not advanced loans to directors/to a Company in which the director is interested to which, the provisions of Section 185 of the Companies Act, 2013 apply and hence not commented upon. In our opinion and according to the information and explanations given to us, the Company has made investments and given guarantees/provided security which is in compliance with the provisions of Section 186 of the Companies Act, 2013.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

vi. 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 148(1) of the Companies Act, 2013, related to the manufacture of Active Pharmaceutical Ingredients and Formulations and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

vii. a. The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, 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, employees'' state insurance, income tax, service tax, sales tax, duty of custom, duty of excise, value added tax, 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, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:

Nature of the statute

Nature of the dues

Disputed Amount (Rs.)

Paid under protest (Rs.)

Period to which the amount relates

Forum where dispute is pending

Central Excise and Customs Act, 1944

Excise duty and penalty

9,224,104

5,559,640

2007-08, 2008-09, 2009-10, 2010-11

CESTAT

Customs duty and penalty

8,709,455

346,340

2002-03, 2003-04, 2004-05, 2005-06

CESTAT

Excise duty

14,606,598

14,471,641

2005-06

Commissioner of Central Excise

Interest and penalty

14,013,0666

1,181,753

2006-07, 2007-08, 2008-09, 2009-10

CESTAT

Excise duty and penalty

2,035,680

1,017,840

2009-10, 2010-11

CESTAT

Excise duty and penalty

5,980,852

2006-07, 2007-08, 2008-09, 2009-10, 2010-11

CESTAT

Nature of the statute

Nature of the dues

Disputed Amount (Rs.)

Paid under protest (Rs.)

Period to which the amount relates

Forum where dispute is pending

Customs duty and penalty

4,689,566

3,739,566

2011-12, 2012-13

Commissioner of Customs - Appeals

Excise duty and penalty

6,278,701

1,809,138

2000-01, 2001-02, 2002-03

CESTAT

Excise duty

3,962,773

3,962,773

2012-13

Revision Authority

Interest

2,297,939

2,297,939

2007-08, 2008-09, 2009-10, 2010-11

Revision Authority

Excise duty

4,760,055

-

2006-07, 2007-08

High Court

Excise duty

4,490,484

2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12

CESTAT

Excise duty and penalty

636,956

318,478

2008-09

CESTAT

Excise duty and penalty

1,226,000

1,176,000

2012-13

CESTAT

Excise duty

100,943

-

2012-13, 2013-14, 2014-15

Commissioner of Central Excise (Appeals)

Excise duty and penalty

83,242

83,242

2008-09, 2009-10

CESTAT

Excise duty and penalty

1,989,820

1,889,820

2014-15, 2015-16

Commissioner of Central Excise (Appeals)

Excise duty and penalty

84,215

-

2014-15

Commissioner of Central Excise (Appeals)

Excise duty

5,665,193

5,336,665

2012-13, 2013-14

Revision Authority

Service tax

3,369,212

428,697

2012-13

CESTAT

Service tax

11,295,379

2,066,239

2011-12

CESTAT

Service tax

12,308,490

9,376,541

2006-07, 2007-08, 2008-09, 2009-10, 2010-11

CESTAT

Service tax

97,222,192

''

2005-06, 2007-08, 2008-09, 2009-10, 2010-11

CESTAT

Service tax

69,299,037

5,197,428

2011-12

CESTAT

Service tax

429,697

429,697

2012-13

CESTAT

Service tax

32,871,546

2,465,366

2013-14

CESTAT

Service tax

120,542,613

-

2014-15

CESTAT

Service tax

49,083,119

-

2014-15, 2015-16

Commissioner (Appeals)

Income Tax Act,

Income tax

190,070,479

-

2008-09

ITAT

1961

Income tax

31,585,269

-

2010-11

ITAT

Income tax

991,130

-

2013-14

Commissioner of Income Tax (Appeals)


viii. In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowings to a bank or government. There are no dues which are payable to financial institutions or debenture holders.

ix. In our opinion and according to the information and explanations given by the management, the Company has utilized the monies raised by way of term loans for the purposes for which they were raised. The Company has not raised any money way of initial public offer/further public offer/debt instruments and hence, not commented upon.

x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.

xi. According to the information and explanations given by the management, the managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.

xii. In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. According to the information and explanations given by the management, transactions with the related parties are in compliance with Sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.

xv. According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in Section 192 of Companies Act, 2013.

xvi. According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

ICAI Firm''s Registration Number: 101049W/E300004

per VIKAS KUMAR PANSARI

Partner

Membership No. 093649

Hyderabad, May 29, 2017