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Strides Pharma Science Ltd.

BSE: 532531 | NSE: STAR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE939A01011 | SECTOR: Pharmaceuticals

BSE Live

Jun 05, 16:00
416.60 -2.90 (-0.69%)
Volume
AVERAGE VOLUME
5-Day
193,110
10-Day
192,462
30-Day
230,195
109,331
  • Prev. Close

    419.50

  • Open Price

    417.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jun 05, 16:02
416.55 -3.15 (-0.75%)
Volume
AVERAGE VOLUME
5-Day
1,352,838
10-Day
1,326,549
30-Day
1,390,680
569,780
  • Prev. Close

    419.70

  • Open Price

    423.40

  • Bid Price (Qty.)

    416.55 (313)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2012 2011 2010 2009

Auditor's Report

1. We have audited the attached Balance Sheet of STRIDES ARCOLAB LIMITED as at December 31, 2009, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Management of the Company. 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 the 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 issued by the Government of India in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. The Company has early adopted Accounting Standard 30 Financial Instruments: Recognition and Measurement, along with the limited revision to Accounting Standard 2 Valuation of Inventories, Accounting Standard 11 The Effect of Changes in Foreign Exchange Rates, Accounting Standard 19 Leases, Accounting Standard 21 Consolidated Financial Statements and Accounting for Investment in Subsidiaries in Separate Financial Statements, Accounting Standard 23 Accounting for Investments in Associates in Consolidated Financial Statements, Accounting Standard 26 Intangible Assets, Accounting Standard 27 Financial Reporting of Interest in Joint Ventures, Accounting Standard 28 Impairment of Assets, and Accounting Standards 29 Provisions, Contingent Assets and Contingent Liabilities, arising from the announcement of the Institute of Chartered Accountants of India on March 29, 2008. Pursuant to the above: (i) The Foreign Currency Convertible Bonds (FCCBs or Bonds) have been segregated into two components comprising (a) option component which represents the value of the conversion option given to the FCCB-holders to convert the bonds into equity shares of the Company and (b) debt component which represents the debt to be redeemed in the absence of conversion option being exercised by FCCB-holder, net of issuance costs. The debt component has been recognised and measured at amortised cost and the fair value of the option component has been determined using a valuation model and a charge of Rs.41.12 Million has been recognised in the Profit and Loss Account for the year ended December 31, 2009, being the change in the fair value of embedded option during the year. (ii) Certain US Dollar investments in subsidiaries and joint ventures have been designated as hedged items in a fair value hedge for changes in spot rates and have been restated at the end of the every reporting period. Consequently, a charge of Rs.107.01Million has been recognised in the Profit and Loss account for the year ended December 31, 2009 as compared to the policy of valuing investments at cost less diminution that is other than temporary, as required under Accounting Standard 13 Accounting for Investments, notified under section 211(3C) of the Companies Act, 1956. 5. We refer to Note A.2 of Schedule P, regarding the accounting for the Scheme of Arrangement (the Scheme) between the Company, some of its subsidiaries and their respective shareholders under section 391 to 394 and the other provisions of the Companies Act, 1956, which has been approved by the Honble High Court of Mumbai. (i) As explained in Note A.2.2 (b) of Schedule P, in accordance with the Scheme, the excess of fair value of assets of the Company over the previously carried book values, amounting to Rs.6,891.77 Million has been credited to Reserve for Business Restructuring, instead of such assets being recorded at historical costs or written down value, as required by Accounting Standard 10 Accounting for Fixed Assets and Accounting Standard 13 Accounting for Investments, as applicable. (ii) As explained in Note A.2.2(c) of Schedule P, in accordance with the Scheme, certain expenses and impairments amounting to Rs.2,277.77 Million have been debited to the Reserve for Business Restructuring, instead of being charged to the Profit and Loss Account as required by Accounting Standard 5 Net Profit or Loss for the Period, Prior Period Items. 6. Attention is invited to Note B.17.1 of Schedule P regarding the excess managerial remuneration of earlier years in respect of which the Companys application is pending with the Central Government. 7. Further to our comments in the Annexure referred to above, 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 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 the books; (c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; (d) subject to our comments in paragraph 5 above and read with our comments in paragraph 4 above, the Balance Sheet, the Profit and Loss Account and the 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; (e) on the basis of the written representations received from the directors, as on December 31, 2009, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on December 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. (f) in our opinion, and to the best of our information and according to the explanations given to us, the said accounts, read together with the notes thereon, 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: (i) in the case of the Balance Sheet, of the state of affairs of the Company as at December 31, 2009; (ii) in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date; and (iii) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. Annexure to the Auditors Report (Referred to in our report of even date) (i) In respect of its fixed assets: (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) The fixed assets were physically verified during the year by the management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification. (c) Although some of the fixed assets of the Company have been disposed off during the year, in our opinion and according to the information and explanation given to us, the ability of the Company to continue as a going concern is not affected. (ii) In respects of its inventories: (a) As explained to us, inventories were physically verified during the year by the management at reasonable intervals. (b) In our opinion, and according to the information and explanation given to us, the procedures for physical verification of inventories followed by the management were 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 no material discrepancies were noticed on physical verification. (iii) Accordingly to the information and explanation given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. (iv) In respect of loans, secured or unsecured, taken by the Company from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956, according to the information and explanations given to us: (a) The Company had taken unsecured loans from two parties. At the year-end, the outstanding balances of such loans taken aggregated to Nil and the maximum amount involved during the year was Rs.75.70 Million. (b) The rate of interest and other terms and conditions of such loan are in our opinion, prima facie, not prejudicial to the interests of the Company. (c) The payments of principal amounts and interest have during the year been regular as per stipulations. (v) In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items of inventory and fixed assets purchased are of a special nature and suitable alternative sources do not exist for obtaining comparable quotations, there are adequate internal control systems commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services and we have not observed any continuing failure to correct major weaknesses in such internal controls. (vi) In respect of contracts or arrangements entered in the register maintained in pursuance of section 301 of the Companies Act 1956, to the best of our knowledge and belief, and according to the information and explanations given to us: (a) The particulars of contracts or arrangements referred to in Section 301 that needed to be entered into the register maintained under the said section have been so entered. (b) In our opinion and having regard to our comments in paragraph (v) above, with regard to purchases of certain items of inventory for which comparative quotes are not available, transactions (excluding loans covered by our comments under paragraph (iv) above) made in pursuance of such contracts or arrangements, in excess of Rs.5 Lakhs in respect of any party, have been made at prices which are, prima facie, reasonable having regard to the prevailing market prices at the relevant time. (vii) The Company has not accepted deposits from public. (viii) In our opinion, the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the management has been commensurate with the size of the Company and the nature of its business. (ix) We have broadly reviewed the books of account and records maintained by the Company pursuant to the order made by the Central Government for the maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. (x) In respect of statutory dues: (a) According to the information and explanations given to us, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Investor Education and Protection Fund, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, cess and any other material statutory dues with the appropriate authorities during the year and there are no undisputed statutory dues as noted above which are outstanding for a period more than six months from the date they became payable. (b) According to the information and explanations given to us, details of disputed Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and cess, which have not been deposited as on December 31, 2009 on account of any dispute are given below: Amount Nature of the (Rupees in Name of statute dues Million) Income - tax Act, 1961 Income Tax (incl. 3.38 interest) Income - tax Act, 1961 Income Tax (incl. 3.31 interest) Income - tax Act, 1961 Penalty 19.1 Income - tax Act, 1961 Penalty 0.70 Income - tax Act, 1961 Income Tax (incl. 38.97 interest) Income - tax Act, 1961 Income Tax (incl. 121.95 interest) Customs and Excise Excise duty 3.86 Laws Name of the Period to which the Forum where dispute is pending amount relates Income - tax Act, 1961 AY 1998-99 Income Tax Appellate Tribunal and Commissioner of Income - tax (Appeals) Income - tax Act, 1961 AY 1999-00 Income Tax Appellate Tribunal and Commissioner of Income - tax (Appeals) Income - tax Act, 1961 AY 2000-01 Commissioner of Income - tax (Appeals) Income - tax Act, 1961 AY 2001-02 Commissioner of Income - tax (Appeals) Income - tax Act, 1961 AY 2004-05 Commissioner of Income - tax (Appeals) Income - tax Act, 1961 AY 2005-06 Commissioner of Income - tax (Appeals) Customs and Excise Laws Aug-2005 Customs and Excise Service Tax Appellate Tribunal (xi) The Company does not have accumulated losses at the end of the financial year and has not incurred cash losses during the year and in the immediately preceding financial year. (xii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions and banks. (xiii) The Company has not granted loans and advances on the basis of the security by way of pledge of shares, debentures and securities. (xiv) The Company is not a chit fund or a nidhi/mutual benefit fund/ society. (xv) The Company is not in the business of dealing or trading in shares, securities, debentures and other investments. (xvi) 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 wholly owned subsidiary companies from financial institutions, are not prima facie prejudicial to the interest of the Company. (xvii) To the best of our knowledge and belief and according to the information and explanations given to us, in our opinion, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained, other than temporary deployment pending application. (xviii) According to the information given to us and having regard to the explanation that Foreign Currency Convertible Bonds amounting to Rs.2,100.70 Million are due for redemption / conversion on April 19, 2010, on an overall examination of the Balance Sheet of the Company, other funds raised on short term basis have not been used during the year for long term investment. (xix) According to the information and explanations given to us, the price at which the Company has made preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956 is not prima facie prejudicial to the interests of the Company. (xx) The Company has not issued any debentures. (xxi) The Company has not raised any money by public issues during the year. (xxii) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year. For DELOITTE HASKINS & SELLS Chartered Accountants Registration No. 0080728 Place: Bangalore V. BALAJI Date: February 24, 2010 Partner Membership No. 203685