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Jubilant Life Sciences Ltd.

BSE: 530019 | NSE: JUBILANT | Series: NA | ISIN: INE700A01033 | SECTOR: Pharmaceuticals

BSE Live

May 26, 16:00
445.95 -10.20 (-2.24%)
Volume
AVERAGE VOLUME
5-Day
25,947
10-Day
44,080
30-Day
30,450
14,539
  • Prev. Close

    456.15

  • Open Price

    469.00

  • Bid Price (Qty.)

    445.95 (5)

  • Offer Price (Qty.)

    463.00 (3)

NSE Live

May 26, 15:59
444.10 -12.10 (-2.65%)
Volume
AVERAGE VOLUME
5-Day
384,295
10-Day
383,612
30-Day
376,992
158,365
  • Prev. Close

    456.20

  • Open Price

    465.00

  • Bid Price (Qty.)

    444.10 (485)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

We have audited the accompanying financial statements of Jubilant Life Sciences Limited (''the Company'') which comprise the Balance Sheet as at 31 March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 (together referred to as the Act). This responsibility includes the design, implementation and maintenance of internal control 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. Auditor''s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, and to the best of our information and according to the explanations given to us, the 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: (a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2014; (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 the Cash Flow Statement, of the 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, 2003 (the Order), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. As required by section 227(3) of the Act, we report that: (a) we have 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 appears from our examination of those books; (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 Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013; and (e) on the basis of written representations received from the directors as on 31 March 2014 and taken on record by the Board of Directors, none of the directors is disqualifed as on 31 March 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. Annexure to the Auditor''s Report The Annexure referred to in our report to the members of Jubilant Life Sciences Limited (''the Company'') for the year ended 31 March 2014. We report that: (i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of its fixed assets. (b) According to the information and explanations given to us, the Company has a regular programme of physical verifcation of its fixed assets by which fixed assets are verifed in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verifed during the year. As informed to us, no material discrepancies were noticed on such verifcation. In our opinion, this periodicity of physical verifcation is reasonable having regard to the size of the Company and the nature of its assets. (c) Fixed assets disposed off during the year were not substantial and, therefore, do not affect the going concern assumption. (ii) (a) The inventory, except goods-in-transit and stocks lying with third parties, has been physically verifed by the management during the year. In our opinion, the frequency of such verifcation is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained. (b) In our opinion and according to the information and explanations given to us, the procedures for physical verifcation 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) The Company is maintaining proper records of inventory. As informed to us, the discrepancies noticed on verifcation between the physical stocks and the book records were not material and have been properly adjusted in the books of account. (iii) (a) According to the information and explanations given to us, the Company has granted unsecured loans to two subsidiary companies covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year and the year-end balance of such loans aggregated to Rs. 2,472.80 million and Rs. 2,430.42 million respectively. (b) In our opinion, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company. (c) In respect of the aforesaid loans, the parties are repaying the principal amounts, as stipulated, and are also regular in payment of interest as applicable. (d) In respect of the aforesaid loans, there is no overdue amount more than Rs. One Lakh. (e) The Company has taken unsecured loan from a subsidiary company covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year and the year-end balance of that loan aggregated to Rs. 357.50 million and Rs. 357.50 million respectively. (f) In our opinion, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company. (g) In respect of the aforesaid loans, the Company is regular in repaying the principal amounts, as stipulated, and is also regular in payment of interest, as applicable. (iv) In our opinion, and according to the information and explanations given to us, and having regard to the explanation that purchase of certain items of inventories and fixed assets are for the Company''s specialised requirements and similarly certain goods sold are for the specialised requirements of the buyers and suitable alternative sources are not available to obtain comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and for the sale of goods and services. In our opinion, and according to the information and explanations given to us, we have not been informed or observed any major weakness in the internal control system during the course of the audit. (v) (a) In our opinion, and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section. (b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts and arrangements referred to in paragraph 4(v)(a) above and exceeding the value of Rs. 5 lakh with any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time except for the purchases of certain items of inventories which are for Company''s specialised requirements and similarly for sale of certain goods for the specialised requirements of the buyers and for which suitable alternative sources are not available to obtain comparable quotations. However, on the basis of information and explanations provided, the same appear reasonable. (vi) According to the information and explanations given to us, the Company has not accepted any deposits from the public. (vii) According to the information and explanations given to us, we are of the opinion that the Company has an internal audit system commensurate with the size of the Company and nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 209(1)(d) of the Act, in respect of its products and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed examination of the records with a view to determine whether these are accurate or complete. (ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and any other statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us and on the basis of our examination of the records of the Company, no undisputed amounts payable in respect of including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and any other statutory dues were in arrears as at 31 March 2014 for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, there are no dues of Wealth Tax which have not been deposited with the appropriate authorities on account of any dispute. According to the information and explanations given to us, the following dues of Income Tax, Sales Tax, Excise Duty, Service Tax and Custom Duty have not been deposited by the Company on account of disputes: Name of the Nature of the Dues Amount involved* Amount paid under Statute (Rs. in million) protest (Rs. in million) Income- tax Act, Income Tax 265.17 - 1961 94.39 - Central Excise Act, Excise Duty 10.38 - 1944 2.48** - 236.90 - 140.43** - 42.12 - Name of the Statute Financial year Forum where to which the dispute is pending amount relates Income-tax Act, 1961 1988-89, Income Tax 1997-98 Appellate Tribunal 2001-08 1987-88, High Court, 1990-91, Allahabad 1992-94, 1995-97 Central Excise Act, 1944 1996-97, Custom Excise 2003-12 and Service Tax Appellate Tribunal 2006-12 Commissioner 2011-13 Additional Commissioner/ Commissioner Name of the Nature of the Dues Amount involved* Amount paid under Statute (Rs. in million) protest (Rs. in million) Service Tax, Service Tax 1.59 - Finance Act, 1994 99.20** - 0.15 - 5.95 - Customs Act, 1962 Custom Duty 19.99 - 0.08 - 11.23 - UP VAT Act, 2008 UP Vat Tax 2.87 - 45.88 - Central Sales Tax Sales Tax 2.84 - Act, 1956 UP VAT Act, 2008 Central Sales Tax Act, 1956 Name of the Statute Financial year Forum where to which the dispute is pending amount relates Service Tax, 2002-03 High Court, Finance Act, 1994 Allahabad 2006-12 Custom Excise and Service Tax Appellate Tribunal 2007-09 Commissioner (Appeals) 2007-11 Additional Commissioner Customs Act, 1962 2000-02, Assistant 2012-14 Commissioner 2000-02 Deputy Commissioner 2001-11 Additional Commissioner UP VAT Act, 2008 2000-08 Sales Tax Appellate Tribunal 2010-14 Supreme Court 2008-13 Sales tax appellate Tribunal * amount as per demand orders including interest and penalty, wherever indicated in the order. ** a stay order has been received against the amount disputed and not deposited. The above table excludes the disputed cases pertaining to the businesses demerged into Jubilant Industries Limited pursuant to the Scheme of Amalgamation and Demerger as sanctioned by Hon''ble Allahabad High Court in the earlier year, though some of the same are still being pursued in the Company''s name. (x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year and in the immediately preceding financial year. (xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its bankers or to any financial institutions. The Company has not issued debentures during the year. (xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) According to the information and explanations given to us, the Company is not a chit fund or a nidhi/mutual benefit fund/ society. (xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. (xv) In our opinion, and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by a subsidiary company from banks during the year are not prejudicial to the interest of the Company. (xvi) Based on our examination of books of account and according to the information and explanations given to us, the term loans have been applied for the purposes for which they 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 the 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 during the year. (xix) The Company did not have any outstanding debentures during the year. (xx) The Company has not raised any money by public issues. (xxi) Based on our examination of the books of account and in accordance with the information and explanations given to us by the management, no fraud on or by the Company has been noticed or reported during the course of our audit. For B S R & Co. LLP Chartered Accountants ICAI Firm registration number: 101248W Akhil Bansal Place: Noida Partner Date: 26 May 2014 Membership No.: 090906