Mar 31, 2023
To the Members of Abbott India Limited Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of Abbott India Limited (âthe Companyâ), which comprise the Balance sheet as at March 31 2023, 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 notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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, 2023, its Profit including Other Comprehensive Income, its Cash Flows and the Changes in Equity for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Financial Statementsâ section of our report. We are independent of the Company
in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.
Key audit matters |
How our audit addressed the key audit matter |
(a) Provision for Non-Saleable returns (as described in note 22 of the financial statements) |
|
The Company makes sales to stockiest who further sells products in the market. Stockiest have a right of return in case goods expiring, while in supply chain till end consumers. Return of these expired goods, results in deductions to gross amounts invoiced in arriving at revenue and creation of obligations for the Company to give credit for sales returns. The amounts pertaining to such sales return are estimated at the time of sale and deducted from gross sales and recorded as provisions for sales returns. These estimates are based on analysis of historical trends of sales return and shelf life of the products. The management has determined provision for sales returns amounting to '' 173.11 Crores which have been recorded at March 31, 2023 (including reimbursable sales return amounting to '' 61.84 Crores) |
Our audit procedures included, amongst others, ⢠Obtained an understanding of management process for making provision for Non-saleable returns including related controls. ⢠Tested the Companyâs key controls relating to the deductions made to gross sales for sales returns, including those controls over booking of sales and sales return process. ⢠We obtained managementâs calculations for provisions, recalculated the amounts and evaluated the assumptions used with reference to historical sales returns levels and current trends. ⢠We considered the managementâs estimates by comparing historical accrued provisions and revenue deductions recorded to the actual amounts. |
Key audit matters |
How our audit addressed the key audit matter |
|
We focused on this area because establishing an appropriate |
⢠|
We tested the working of discounting of non-current |
year-end position requires significant judgement and |
provisions for sales return prepared by the management |
|
estimation by the management. The assumptions required |
including the underlying assumptions. |
|
for estimating provisions for sales returns are complex |
⢠|
We understood and assessed the Companyâs revenue |
in nature, the estimates may not be appropriate and, as a result, provisions and revenue may be incorrectly recorded. Accordingly, we regard these as key audit matter. |
recognition accounting policies, including the recognition and measurement of deductions to gross sales relating to sales returns and related disclosures. |
|
(b) Evaluation of uncertain tax positions (as described in note 36 (b) (ii) of the financial statements) |
||
The Company has litigations involving question of law and |
⢠|
We obtained an understanding of the managementâs process |
certain disallowances made by Income tax authorities in |
for: |
|
assessment orders that the Company has appealed against |
- identification of tax matters initiated against the |
|
before the relevant appellate authorities. |
Company, |
|
The Company has disclosed '' 80.81 Crores as Contingent liability (including uncertain tax positions for open assessment orders) in accordance with Ind AS 37 Provisions, |
- assessment of accounting treatment for each such litigation identified under applicable accounting |
|
Contingent Liabilities and Contingent Assets, based on |
principles, and for measurement of amounts involved. |
|
managementâs assessment in consultation with professional |
⢠|
We evaluated the design and tested the operating |
advice from the external legal counsel. |
effectiveness of controls around the above process. |
|
The eventual outcome of the legal proceedings is dependent |
⢠|
We obtained an understanding of the nature of litigations |
on the outcome of future events and unexpected adverse |
pending against the Company and discussed the key |
|
outcomes could significantly impact the Companyâs reported |
developments during the year with the management. |
|
Profits and Balance Sheet position. |
⢠|
We focused on the key developments in the tax litigations, |
Key judgments are also made by the management in |
which could have materially impacted the amounts |
|
estimating the amount of contingent liabilities related to |
recorded as provisions or disclosed as contingent liability |
|
aforementioned litigations. |
in the financial statements. We inspected the demand |
|
Considering the degree of judgment, significance of the amounts involved, inherent high estimation uncertainty and reliance on external legal counsel, this matter has been |
notices, assessment orders received for such cases and obtained grounds of appeal submitted by the management in consultation with their external legal counsel. |
|
identified as a key audit matter. |
⢠|
We evaluated the appropriateness of methods used and the reliability of underlying data for quantifying the amounts involved by analyzing the relevant demand notices, assessment orders received. We also tested the arithmetical accuracy of such calculations. |
⢠|
We also tested the independence, objectivity and competence of such external legal counsel involved. |
|
⢠|
We engaged internal tax specialists to evaluate management assessment of the outcome of such litigation cases. The tax specialists considered legal precedence and other rulings in evaluating managementâs position on such litigation cases. |
|
⢠|
We have evaluated the disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards. |
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORâS REPORT THEREON
The Companyâs Board of Directors is responsible for the other information. The other information comprises the Directorâs Report, Management Discussion and Analysis, Corporate Governance Report but does not include the financial statements and our auditorâs report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these 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 the 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 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.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
as disclosed in the Note 44 to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, and as disclosed in the Note 44 to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe
⢠Evaluate the overall presentation, structure and content of financial statements, including the disclosures, and whether financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act, based on our audit, we give in the âAnnexure 1â 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 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 books, the back-up of books of account were taken on a server physically located in India except for an application used for processing expenses of field employees where backup taken on a daily basis were kept on server physically located outside India as stated in Note 45 to the financial statements
(c) The Balance Sheet, the 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 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 the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph (b) above
(g) With respect to the adequacy of the internal financial controls with reference to these financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(h) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
(i) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 financial statements - Refer Note 36 to the 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. a) The management has represented that, to
the best of its knowledge and belief, and
that the representations under Sub-clause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
As stated in Note 14 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Dolphy Dsouza
Partner
Membership Number: 038730
UDIN: 23038730BGYSNK6600
Place of Signature: Mumbai
Date: May 19, 2023
Mar 31, 2022
in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2022. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.
To the Members of Abbott India Limited Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of Abbott India Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31 2022, 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 notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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, 2022, its Profit including Other Comprehensive Income, its Cash Flows and the Changes in Equity for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Financial Statementsâ section of our report. We are independent of the Company
Key audit matters |
How our audit addressed the key audit matter |
(a) Provision for Non-Saleable returns (as described in note 22 of the financial statements) |
|
The Company makes sales to stockiest who further sells products in the market. Stockiest have a right of return in case goods expiring, while in supply chain till end consumers. Return of these expired goods, results in deductions to gross amounts invoiced in arriving at revenue and creation of obligations for the Company to give credit for sales returns. The amounts pertaining to such sales return are estimated at the time of sale and deducted from gross sales and recorded as provisions for sales returns. These estimates are based on analysis of historical trends of sales return and shelf life of the products. The management has determined provision for sales returns amounting to '' 168.06 Crores which have been recorded at March 31, 2022 (including reimbursable sales return amounting to '' 50.48 Crores) |
Our audit procedures included, amongst others, ⢠Obtained an understanding of management process for making provision for Non-saleable returns including related controls. ⢠Tested the Companyâs key controls relating to the deductions made to gross sales for sales returns, including those controls over booking of sales and sales return process. ⢠We obtained managementâs calculations for provisions, recalculated the amounts and evaluated the assumptions used with reference to historical sales returns levels and current trends. ⢠We considered the managementâs estimates by comparing historical accrued provisions and revenue deductions recorded to the actual amounts. |
Key audit matters |
How our audit addressed the key audit matter |
|
We focused on this area because establishing an appropriate |
⢠|
We tested the working of discounting of non-current |
year-end position requires significant judgement and |
provisions for sales return prepared by the management |
|
estimation by the management. The assumptions required |
including the underlying assumptions. |
|
for estimating provisions for sales returns are complex |
⢠|
We understood and assessed the Companyâs revenue |
in nature, the estimates may not be appropriate and, as a result, provisions and revenue may be incorrectly recorded. |
recognition accounting policies, including the recognition and measurement of deductions to gross sales relating to |
|
Accordingly, we regard these as key audit matter. |
sales returns and related disclosures. |
|
(b) Evaluation of uncertain tax positions (as described in note 37 (b) (ii) of the financial statements) |
||
The Company has litigations involving question of law and |
⢠|
We obtained an understanding of the managementâs process |
certain disallowances made by Income tax authorities in |
for: |
|
assessment orders that the Company has appealed against |
- identification of tax matters initiated against the |
|
before the relevant appellate authorities. |
Company, |
|
The Company has disclosed '' 87.18 Crores as Contingent |
- assessment of accounting treatment for each such |
|
liability (including uncertain tax positions for open |
litigation identified under applicable accounting |
|
assessment orders) in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets, based on |
principles, and for measurement of amounts involved. |
|
managementâs assessment in consultation with professional |
⢠|
We evaluated the design and tested the operating |
advice from the external legal counsel. |
effectiveness of controls around the above process. |
|
The eventual outcome of the legal proceedings is dependent |
⢠|
We obtained an understanding of the nature of litigations |
on the outcome of future events and unexpected adverse |
pending against the Company and discussed the key |
|
outcomes could significantly impact the Companyâs reported |
developments during the year with the management. |
|
Profits and Balance Sheet position. |
⢠|
We focused on the key developments in the tax litigations, |
Key judgments are also made by the management in |
which could have materially impacted the amounts |
|
estimating the amount of contingent liabilities related to aforementioned litigations. |
recorded as provisions or disclosed as contingent liability in the financial statements. We inspected the demand notices, assessment orders received for such cases and |
|
Considering the degree of judgment, significance of the amounts involved, inherent high estimation uncertainty and reliance on external legal counsel, this matter has been |
obtained grounds of appeal submitted by the management in consultation with their external legal counsel. |
|
identified as a key audit matter. |
⢠|
We evaluated the appropriateness of methods used and the reliability of underlying data for quantifying the amounts involved by analyzing the relevant demand notices, assessment orders received. We also tested the arithmetical accuracy of such calculations. |
⢠|
We evaluated external legal counselâs response and analysed the conclusions reached which are supported by legal rationale. |
|
⢠|
We also tested the independence, objectivity and competence of such external legal counsel involved. |
|
⢠|
We have obtained direct confirmation for litigation cases from the external legal counsel, to support the decisions and rationale for disclosure of contingent liabilities in respect of the litigation cases. |
|
⢠|
We engaged internal tax specialists to evaluate management assessment of the outcome of such litigation cases. The tax specialists considered legal precedence and other rulings in evaluating managementâs position on such litigation cases. |
|
⢠|
We have evaluated the disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards. |
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORâS REPORT THEREON
The Companyâs Board of Directors is responsible for the other information. The other information comprises the Directorâs Report, Management Discussion and Analysis, Corporate Governance Report but does not include the financial statements and our auditorâs report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these 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 the 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 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.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
b) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the Note 45 to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the financial year ended March 31, 2022 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act, based on our audit, we give in the âAnnexure 1â 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 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 books;
(c) The Balance Sheet, the 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 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 the written representations received from the directors as on March 31, 2022 taken
on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 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 with reference to these financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 financial statements - Refer Note 37 to the 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. a) The management has represented that, to
the best of its knowledge and belief and as disclosed in the Note 45 to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
As stated in Note 14 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Dolphy Dsouza
Partner
Membership Number: 038730
UDIN: 22 038730AJBYDV8682
Place of Signature: London, UK
Date: May 17, 2022
Mar 31, 2021
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Abbott India Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2021, 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 notes to the Ind AS financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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, 2021, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Ind AS Financial Statementsâ section of our report. We are independent of the
Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements for the financial year ended March 31, 2021. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying Ind AS financial statements.
Key audit matter |
How our audit addressed the key audit matter |
(a) Provision for Non-Saleable returns (as described in note 24 of the Ind AS financial statements) |
|
The Company makes sales to stockiest who further sells products in the market. Stockiest have a right of return in case goods expiring, while in supply chain till end consumers. Return of these expired goods, results in deductions to gross amounts invoiced in arriving at revenue and creation of obligations for the Company to give credit for sales returns. The amounts pertaining to such sales return are estimated at the time of sale and deducted from gross sales and recorded as provisions for sales returns. These estimates are based on analysis of historical trends of sales return and shelf life of the products. |
Our audit procedures included, amongst others, ⢠Obtained an understanding of management process for making provision for Non-saleable returns including related controls. ⢠Tested the Companyâs key controls relating to the deductions made to gross sales for sales returns, including those controls over booking of sales and sales return process. ⢠We obtained managementâs calculations for provisions, recalculated the amounts and evaluated the assumptions used with reference to historical sales returns levels and |
The management has determined provision for sales returns amounting to '' 159.54 crores which have been recorded at March 31, 2021 (including reimbursable sales return amounting to '' 50.80 crores) |
current trends. ⢠We considered the managementâs estimates by comparing historical accrued provisions and revenue deductions recorded to the actual amounts. |
We focused on this area because establishing an appropriate year-end position requires significant judgement and estimation by the management. The assumptions required for estimating provisions for sales returns are complex in nature, the estimates may not be appropriate and, as a result, provisions and revenue may be incorrectly recorded. Accordingly, we regard these as key audit matter. |
⢠We tested the working of discounting of non-current provisions for sales return prepared by the management including the underlying assumptions. ⢠We understood and assessed the Companyâs revenue recognition accounting policies, including the recognition and measurement of deductions to gross sales relating to sales returns and related disclosures. |
Key audit matter |
How our audit addressed the key audit matter |
(b) Evaluation of uncertain tax positions (as described in note 39 (b) (ii) of the Ind AS financial statements) |
|
The Company has litigations involving question of law and certain disallowances made by Income tax authorities in assessment orders that the Company has appealed against before the relevant appellate authorities. The Company has disclosed '' 78.74 crores as Contingent liability (including uncertain tax positions for open assessment orders) in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets, based on managementâs assessment in consultation with professional advice from the external legal counsel. |
⢠We obtained an understanding of the managementâs process for : - identification of tax matters initiated against the Company, - assessment of accounting treatment for each such litigation identified under applicable accounting principles, and for measurement of amounts involved. ⢠We evaluated the design and tested the operating effectiveness of controls around the above process. |
The eventual outcome of the legal proceedings is dependent on the outcome of future events and unexpected adverse outcomes could significantly impact the Companyâs reported profits and Balance Sheet position. Key judgments are also made by the management in estimating the amount of contingent liabilities related to aforementioned litigations. Considering the degree of judgment, significance of the amounts involved, inherent high estimation uncertainty and reliance on external legal counsel, this matter has been identified as a key audit matter. |
⢠We obtained an understanding of the nature of litigations pending against the Company and discussed the key developments during the year with the management. ⢠We focused on the key developments in the tax litigations, which could have materially impacted the amounts recorded as provisions or disclosed as contingent liability in the financial statements. We inspected the demand notices, assessment orders received for such cases and obtained grounds of appeal submitted by the management in consultation with their external legal counsel. ⢠We evaluated the appropriateness of methods used and the reliability of underlying data for quantifying the amounts involved by analyzing the relevant demand notices, assessment orders received. We also tested the arithmetical accuracy of such calculations. |
⢠We evaluated external legal counselâs response and analysed the conclusions reached which are supported by legal rationale. |
|
⢠We also tested the independence, objectivity and competence of such external legal counsel involved. |
|
⢠We have obtained direct confirmation for litigation cases from the external legal counsel, to support the decisions and rationale for disclosure of contingent liabilities in respect of the litigation cases. |
|
⢠We engaged internal tax specialists to evaluate management assessment of the outcome of such litigation cases. The tax specialists considered legal precedence and other rulings in evaluating managementâs position on such litigation cases. |
|
⢠We have evaluated the disclosures made by the Company in the financial statements in view of the requirements as specified in the Indian Accounting Standards. |
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORâS REPORT THEREON
The Companyâs Board of Directors is responsible for the other information. The other information comprises the Directorâs Report, Management Discussion and Analysis, Corporate Governance Report but does not include the Ind AS financial statements and our auditorâs report thereon.
Our opinion on the Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements, our responsibility is to read the other information identified as above and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT FOR THE IND AS FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these 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 the 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 controls, 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.
In preparing the Ind AS financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF THE IND AS FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Ind AS financial statements, including the disclosures, and whether the Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS financial statements for the financial year ended March 31, 2021 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, based on our audit, we give in the âAnnexure 1â 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 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 books;
(c) The Balance Sheet, the 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 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 the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 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 with reference to these Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2021 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 Ind AS financial statements - Refer Note 39 to the 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.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Ravi Bansal
Partner
Membership Number: 49365
UDIN: 21049365AAAABF9138
Place of Signature: Mumbai
Date: May 18, 2021
Mar 31, 2018
REPORT ON THE INDAS FINANCIAL STATEMENTS
We have audited the accompanying Ind AS financial statements of Abbott India Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, 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.
MANAGEMENTâS RESPONSIBILITY FOR THE INDAS FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these 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 thereunder. We conducted our audit of the 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 auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the 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 Companyâs Directors, as well as evaluating the overall presentation of the 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 Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the 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, 2018, 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 (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub-section (11) of Section 143 of the Act, we give in the âAnnexure 1â, 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 Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) (Amendment) Rules, 2016, as amended;
(e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, 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 with reference to these Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) With respect to the other matters to be included in the Auditorâs 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 Ind AS financial statements - Refer Note 40 to the 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.
ANNEXURE 1 TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ABBOTT INDIA LIMITED
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some fixed assets were physically verified by the management during the year in accordance with a planned programme of verifying them once in three years 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 the information and explanations given by the management, the title deeds of immovable properties, included in property, plant and equipment are held in the name of the Company, except for the following:
Sr. No. |
Asset Category |
Gross Block at March 31,2018 (Rs. in Lakhs) |
Net Block at March 31,2018 (Rs. in Lakhs) |
Remarks |
1 |
Buildings * |
12,75.97 |
11,61.46 |
The title deeds are in the erstwhile name of the Company. |
2 |
Buildings * |
30,50.61 |
28,67.73 |
The title deeds are in the name of the entity that was merged with the Company. |
* The above amounts include Assets held for saleâ.
(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, provisions of Section 185 and 186 of the Companies Act, 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(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 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) Undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, Goods and Services Tax (GST), cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there have been delays in few cases of payment of professional tax.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax, service tax, sales tax, duty of custom, duty of excise, value added tax, Goods and Services Tax (GST), cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable except as below :
Name of the Statute |
Nature of Dues |
Amount (Rs. in Lakhs) |
Period to which the amount relates |
Due Date |
Date of Payment |
The Jharkhand Tax on Professions, Trades, Callings and Employments Act, 2011 |
Profession tax |
0.45 |
Novâ16 - Sepâ17 |
Various dates |
18-04-2018 |
Madhya Pradesh Professional Tax Act, 1995 |
Profession tax |
1.11 |
Aprâ17 - Sepâ17 |
Various dates |
Yet to be paid |
(c) According to the records of the Company, the dues 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 :
Name of the Statute |
Nature of Dues |
Amount disputed in Rs. Lakhs (net of payments) |
Forum where dispute is pending |
Period to which the amount relates |
Income Tax Act, 1961 |
Income Tax |
4,86.15 |
ITAT |
A.Y. 2006 - 2007, A.Y. 2009 - 2010, A.Y. 2010 - 2011, A.Y. 2011 - 2012, A.Y. 2013 - 2014 |
Central Excise Act, 1944 |
Excise Duty |
3.20 |
Commissioner (Appeals) |
1991 -1992 |
3.56 |
Commissioner |
1994 -1995 |
||
2.51 |
Assistant Commissioner |
1994 and 1997 to 2002 |
||
26.72 |
CESTAT |
2005 - 2006 |
||
The Bombay Sales Tax Act, 1959 |
Sales Tax |
39.87 |
Deputy Commissioner of Sales Tax |
1999-2000 |
Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
1.50 |
Additional Commissioner of Commercial Tax (Appeals) |
2008 to 2010 |
Central Sales Tax Act, 1956 (Uttar Pradesh) |
Sales Tax |
8.36 |
Additional Commissioner of Commercial Tax (Appeals) |
2010 - 2011 |
Kerala General Sales Tax Act, 1963 |
Sales Tax |
13.05 |
Sales Tax Appellate Tribunal, Additional Bench |
2002 - 2003 |
Goa Value Added Tax Act, 2005 |
Value Added Tax |
2.07 |
Additional Commissioner of Commercial Taxes |
2006 - 2007 |
Central Sales Tax, 1956 (Goa) |
Sales Tax |
9,00.80 |
Additional Commissioner of Commercial Taxes |
2006 to 2009 |
16.67 |
Assistant Commissioner of Commercial Taxes, Panaji, Goa |
2009 - 2010 |
||
Central Sales Tax Act, 1956 (Gujarat) |
Sales Tax |
2,40.96 |
Deputy Commissioner of Commercial Taxes (Appeals) |
2006 - 2007 |
Maharashtra Value Added Tax Act 2002 |
Value Added Tax |
27,67.18 |
Deputy Commissioner of Sales Tax (Appeals) |
2011 - 2012 |
Customs Act, 1962 |
Custom Duty |
4.43 |
Commissioner (Appeals) |
1996 |
75.00 |
CESTAT |
2011 to 2013 |
(viii) The Company did not have any outstanding loans or borrowing dues in respect of a financial institution or bank or to government or dues to debenture holders during the year.
(ix) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer/further public offer/debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company 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/material 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 Section 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 noncash 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 B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number : 324982E/E300003
per Ravi Bansal
Partner
Membership Number: 49365
Place: Mumbai
Date : May 14,2018
Mar 31, 2017
REPORT ON THE IND AS FINANCIAL STATEMENTS
We have audited the accompanying Ind AS financial statements of Abbott India Limited (âthe Companyâ), 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.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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 Rule 7 of the Companies (Accounts) Rules, 2014 and 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.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these 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 thereunder. We conducted our audit of the 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 auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS 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 effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the 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 Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the 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 (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (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 Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015;
(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 âAnnexure 2â to this report;
(g) With respect to the other matters to be included in the Auditorâs 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 Ind AS financial statements - Refer Note 40 to the 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 36 to these 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 account maintained by the Company and as produced to us by the Management.
ANNEXURE 1 TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ABBOTT INDIA LIMITED
(i) (a) The Company has maintained proper records showing lull particulars, including quantitative details and situation of fixed assets.
(b) Some fixed assets were physically verified by the management during the year in accordance with a planned programme of verifying them once in three years 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 the information and explanations given by the management, the title deeds of immovable properties, included in Property, plant and equipment are held in the name of the Company, except for the following:
Sr. No |
Asset Category |
Gross Block at March 31, 2017 (Rs. in lakhs) |
Net Block at March 31, 2017 (Rs. in lakhs) |
Remarks |
1 |
Buildings |
1,882 |
1,195 |
The title deeds are in the erstwhile name of the Company |
2 |
Buildings |
3,432 |
2,911 |
The title deeds are in the name of the entities that was merged with the Company |
(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, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(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 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) Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ 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:
Name of Statute |
Nature of Dues |
Amount disputed in Rs. Lakhs (net of payments) |
Forum where dispute is pending |
Period to which the amount relates |
Income Tax Act, 1961 |
Income Tax |
3,79.66 |
ITAT |
A.Y. 2006-2007, A.Y. 2009-2010 and A.Y. 2011-12 |
14.35 |
CIT Appeals |
A.Y. 2010-2011 and A.Y. 2011-2012 |
||
Central Excise Act, 1944 |
Excise Duty |
3.20 |
Commissioner (Appeals) |
1991-1992 |
3.56 |
Commissioner |
1994 - 1995 |
||
2.51 |
Assistant Commissioner |
1994 and 1997 to 2002 |
||
26.72 |
CESTAT |
2005 to 2006 |
||
The Bombay Sales Tax Act, 1959 |
Sales Tax |
39.87 |
Deputy Commissioner of Sales Tax |
1999-2000 |
Uttar Pradesh Value Added |
Value Added Tax |
1.50 |
Additional Commissioner of |
2008 to 2010 |
Tax Act, 2008 |
Commercial Tax (Appeals) |
|||
Central Sales Tax Act, 1956 |
Central Sales Tax |
8.36 |
Additional Commissioner of |
2010-2011 |
(Uttar Pradesh) |
Commercial Tax (Appeals) |
|||
Kerala General Sales Tax Act, 1963 |
Sales Tax |
13.05 |
Sales Tax Appellate Tribunal, Additional Bench |
2002-2003 |
Central Sales Tax, |
Central Sales Tax |
9,00.80 |
Additional Commissioner of |
2006 to 2009 |
1956 (Goa) |
Commercial Taxes |
|||
16.67 |
Assistant Commissioner of Commercial Taxes, Panaji, Goa |
2009-2010 |
||
Goa Value Added Tax Act, |
Value Added Tax |
2.07 |
Additional Commissioner of |
2006-2007 |
2005 |
Commercial Taxes |
|||
Central Sales Tax Act 1956 |
Central Sales Tax |
2,40.96 |
Deputy Commissioner of |
2006-2007 |
(Gujarat) |
Commercial Taxes (Appeal) |
|||
Karnataka Value Added Tax |
Value Added Tax |
9.88 |
Joint Commissioner of |
2010-11 |
Act, 2003 |
Commercial Taxes (Appeals), Bengaluru |
|||
Central Sales Tax Act 1956 |
Central Sales Tax |
6.76 |
Department of Trade and |
2012-13 |
(Delhi) |
Taxes, Delhi |
|||
Customs Act, 1962 |
Custom Duty |
4.43 |
Commissioner (Appeals) |
1996 |
75.00 |
CESTAT |
2011 to 2013 |
(viii) The Company did not have any outstanding loans or borrowing dues in respect of a financial institution or bank or to government or dues to debenture holders during the year.
(ix) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer / further public offer / debt instruments and term loans hence, reporting under clause 3 (ix) is not applicable to the Company 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 material 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 explanation 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 section 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 noncash 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 B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Ravi Bansal
Partner
Membership Number: 49365
Place: Mumbai
Date: May 19, 2017
Mar 31, 2015
We have audited the accompanying financial statements of Abbott India
Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss and 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
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 financial statements that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with 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 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 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 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 thereunder. We conducted our
audit 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 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 effectiveness of such
controls. 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 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 financial statements.
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 of the state of affairs of the Company as at March 31, 2015, 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
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, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid 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 written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164 (2) of the Act;
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 of pending litigations on its
financial position in its financial statements - Refer Note 33 (i) to
the 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.
ANNEXURE TO OUR REPORT OF EVEN DATE
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Some fixed assets were physically verified by the management during
the year in accordance with a planned programme of verifying them once
in three years 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.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(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 and no
material discrepancies were noticed on 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 or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Accordingly, the provisions of clause
3(iii) (a) and (b) 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 and having regard to the explanation that certain items of
inventory purchased from strategic vendors or are of special nature for
which suitable alternative sources are not readily available for
obtaining comparable quotations, there is an adequate internal control
system 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. 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) The Company has not accepted any deposits from the public.
(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 formulations and bulk drugs, 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 generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, 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, Wealth Tax, Service Tax, Sales Tax,
Customs Duty, Excise Duty, 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, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax and Cess on account of any dispute, are as
follows :
(Rs. in Lakhs)
Name of Statute Nature of Amount Forum where dispute
Dues disputed is pending
(Net of
Payments)
Income Tax Act, 1961 Income Tax 2,47.08 ITAT
2,53.57 CIT Appeals
Central Excise Act, 1944 Excise Duty 3.20 Commissioner
(Appeals)
3.56 Commissioner
2.51 Assistant
Commissioner
26.60 CESTAT
The Bombay Sales Tax Act, Sales Tax 39.87 Deputy Commissio
1959 ner of Sales Tax
Central Sales Tax Act,1956 Central Sales 46.42 Maharashtra Sales
Maharasthra Tax Tax Tribunal
Central Sales Tax Act,1956 Central Sales 81.80 The Joint Commiss
(Maharashtra) Tax ioner of Sales tax
(Appeals)
Uttar Pradesh Trade Tax Act, Sales Tax 0.59 Additional Commiss
1948 ioner of Commerc
ial Tax (Appeals)
0.26 Trade Tax Tribunal
Uttar Pradesh Value Added Value Added 2.67 Additional Commiss
Tax Act, 2008 Tax ioner of Commerci
al Tax (Appeals)
Uttar Pradesh Sales Tax Act, Sales Tax 8.36 Additional Commiss
2008 ioner Commercial
Tax (Appeals)
West Bengal Sales Tax Act, Sales Tax 2.44 Appellate & Revis
1994 ional Board
Commercial Tax
Central Sales Tax Act, 1956 Sales Tax 2.66 Additional Commiss
(West Bengal) ioner Commercial
Taxes
5.31 Appellate &
Revisional Board,
Commercial Tax
3.81 Joint Commissi
oner of
Commercial Taxes
Name of Statute Period to which the
amount relates
Income Tax Act, 1961 A.Y. 2006-2007,
A.Y. 2008-2009,
A.Y.2009-2010
A.Y. 2009-2010,
A.Y. 2010-2011
Central Excise Act, 1944 1991-1992
1994 to 1995
1994 and 1997 to 2002
2005 to 2006
The Bombay Sales Tax Act, 1959 1999-2000
Central Sales Tax Act,1956(Maharashtra) 2007 to 2009
Central Sales Tax Act,1956(Maharashtra) 2009- 2010
Uttar Pradesh Trade Tax Act, 1948 1988-1989
1996-1997
Uttar Pradesh Value Added Tax Act, 2008 2007 to 2011
Uttar Pradesh Sales Tax Act, 2008 2010-2011
West Bengal Sales Tax Act, 1994 2004- 2005
Central Sales Tax Act, 1956(West Bengal)2006-2007,
2008 to 2010
2005- 2006, 2010-2011
2006- 2007
Name of Statute Nature of Amount Forum where dispute
Dues disputed is pending
(Net of
Payments)
West Bengal Value Added Tax Value Added 10.60 Appellate & Revisi
Act, 2003 Tax onal board Commer
cial Taxes
11.11 Joint Commissioner
of Commercial
Taxes
2.71 Additional
Commissioner of
Commercial Taxes
40.49 Appellate and
Revisional Board,
Commercial Taxes,
West Bengal
Kerala General Sales Tax Act, Sales Tax 13.05 SalesTax Appellate
1963 tribunal Additional
Bench
Central Sales Tax, 1956 (Goa) Sales Tax 9,00.80 Additional Commiss
ioner of Commercial
Taxes
Central Sales Tax, 1956 (Goa) Sales Tax 16.67 Assistant Commissi
oner of Commercial
Taxes, Panaji, Goa
Goa Value Added Tax Act, Value Added 2.07 Additional Commissi
2005 Tax oner of Commercial
Taxes
Central Sales Tax Act 1956 Sales Tax 2,40.96 Deputy Commissioner
(Gujarat) of Commercial Taxes
(Appeal)
Customs Act, 1962 Custom Duty 4.43 Commissioner (App
eals)
Cenvat Credit Rules, 2004 Excise Duty 7.30 The Additional
Commissioner
Customs & Central
Excise
3.14 The Assistant
Commissioner
Customs & Central
Excise
Name of Statute Period to which the
amount relates
West Bengal Value Added Tax Act, 2003 2005- 2006
2006- 2007
2010-2011
2009 to 2011
Kerala General Sales Tax Act, 1963 2002-2003
Central Sales Tax, 1956 (Goa) 2006 to 2009
Central Sales Tax, 1956 (Goa) 2009-2010
Goa Value Added Tax Act, 2005 2006-2007
Central Sales Tax Act 1956 (Gujarat) 2006-2007
Customs Act, 1962 1996
Cenvat Credit Rules, 2004 April 2006 to
October 2009
November 2009 to
June 2011
(d) According to the information and explanations given to us, the
amount required to be transferred to Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made thereunder has been transferred to such
fund within time.
(viii) 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.
(ix) Based on our audit procedures and as per the information and
explanations given by the management, there are no dues to banks,
financial institutions or debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) The Company did not have any term loans outstanding during the
year.
(xii) 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 by the Company and no material fraud on the Company has
been noticed or reported during the year.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number : 324982E
Per Ravi Bansal
Partner
Membership Number : 49365
Mumbai, May 27, 2015
Mar 31, 2014
We have audited the accompanying fnancial statements of ABBOTT INDIA
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the 15 months period from 1st January, 2013 to 31st
March, 2014 and a summary of the significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
fnancial statements that give a true and fair view of the fnancial
position, fnancial performance and cash flows of the Company in
accordance with the Accounting Standards notifed under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the fnancial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the fnancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fnancial
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 fnancial 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 the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the fnancial 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 aforesaid fnancial 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 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit of the
Company for the 15 months period from 1st January, 2013 to 31st March,
2014; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the 15 months period from 1st January, 2013 to 31st March,
2014.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) 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 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 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
notifed under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualifed as on 31st March, 2014
from being appointed as a director in terms of Section 274 (1)(g) of
the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT TO THE MEMBERS OF ABBOTT
INDIA LIMITED
(Referred to in paragraph 1 under ''Report on other Legal and Regulatory
Requirements'' section of our report of even date)
i. Having regard to the nature of the Company''s
business/activities/result during the period, clauses xi, xii, xiii,
xiv, xvi, xix and xx of para 4 of the Order are not applicable to the
Company.
ii. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Some of the fixed assets were physically verifed during the period
by the Management in accordance with a regular programme of verifcation
which, in our opinion, provides for physical verifcation of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verifcation.
(c) The fixed assets disposed of during the period, in our opinion, do
not constitute a substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
(a) As explained to us, the inventories were physically verifed during
the period by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation 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
verifcation.
iv. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, frms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
v. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining 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 purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
vi. To the best of our knowledge and belief and according to the
information and explanations given to us, there are no contracts or
arrangements that needed to be entered in the Register maintained in
pursuance of section 301 of the Companies Act, 1956.
vii. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the period
within the meaning of the provisions of Sections 58A & 58AA or any
other relevant provisions of the Companies Act, 1956. There are no
unclaimed deposits as at the period end.
viii. In our opinion, the internal audit functions carried out during
the period by an external agency appointed by the Management have been
commensurate with the size of the Company and the nature of its
business.
ix. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011 and the
Cost Accounting Records (Pharmaceutical Industry) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been made and maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
x. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing 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, Cess and other
material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues in arrears as at
31st March, 2014 for a period of more than six months from the date
they became payable.
Details of dues of Income-tax, Sales Tax, Custom Duty and Excise Duty
which have not been deposited as on 31st March, 2014 on account of
disputes are given below:
Name of Statute Nature of Dues Forum where Dispute is
pending
Income Tax Act, 1961 Income Tax ITAT
CIT Appeals
DCIT
Central Excise
Act, 1944 Excise Duty Commissioner (Appeals)
Commissioner
Assistant Commissioner
CESTAT
The Bombay Sales
Tax Act, 1959 Sales Tax Deputy Commissioner of
Sales Tax
Central Sales Tax
Act,1956 Sales Tax The Joint Commissioner of
(Maharashtra) Sales tax (Appeals)
Uttar Pradesh Trade
Tax Act, 1948 Sales Tax Additional Commissioner of
Commercial Tax (Appeals)
Trade Tax Tribunal
Uttar Pradesh Value
Added Tax Act, Value Added Tax Additional Commissioner of
2008 Commercial Tax (Appeals)
West Bengal Sales
Tax Act, 1994 Sales Tax Appellate & Revisional
Board, Commercial Tax
Central Sales
Tax Act, 1956 Sales Tax Sr. Joint Commissioner of
(West Bengal) Commercial Taxes
Additional Commissioner of
Commercial Taxes
Appellate & Revisional
Board, Commercial Tax
Joint Commissioner of
Commercial Taxes
West Bengal Value
Added Tax Act, 2003 Value Added Tax Appellate & Revisional
Board, Commercial Taxes
Joint Commissioner of
Commercial Taxes
Sr.Joint Commissioner of
Commercial Taxes
Additional Commissioner of
Commercial Taxes
Kerala General Sales
Tax Act, 1963 Sales Tax Sales Tax Appellate
Tribunal, Additional Bench
Central Sales Tax,
1956 (Goa) Sales Tax Additional Commissioner of
Commercial Taxes
Name of Statue Period to which the Rs. in Lakhs
amount relates
Income Tax Act, 1961 A.Y. 2006-2007, A.Y. 2,47.08
2008-2009 and A.Y.
2009-2010
A.Y. 2009-2010 and 1,13.73
A.Y. 2010-2011
A.Y. 2010-2011 1,34.46
Central Excise Act, 1944 1991-1992 3.20
1994 to 1995 3.56
1994 and 1997 to 2002 2.51
2005 to 2006 26.60
The Bombay Sales Tax
Act, 1959 1999-2000 39.87
Central Sales
Tax Act,1956
(Maharashtra) 2007 to 2009 46.42
Uttar Pradesh Trade
Tax Act, 1948 1988-1989 0.59
1996-1997 0.26
Uttar Pradesh Value
Added Tax Act,
2008 2007-2008, 2009 to 4.71
2011
West Bengal Sales
Tax Act, 1994 2003 to 2005 17.38
Central Sales Tax Act, 1956
(West Bengal) 2006-2007 2.28
2008 to 2011 1.00
2005-2006 4.69
2006-2007 3.81
West Bengal Value
Added Tax Act, 2003 2005-2006 14.77
2006-2007 11.11
2006-2007 2.44
2008 to 2011 95.16
Kerala General Sales Tax
Act, 1963 2002-2003 13.05
Central Sales Tax,
1956 (Goa) 2006 to 2009 9,00.80
Name of Statute Nature of Dues Forum where Dispute is
pending
Central Sales Tax,
1956 (Goa) Sales Tax Assistant Commissioner of
Commercial Taxes, Panaji, Goa
Goa Value Added Tax
Act, 2005 Value Added Tax Additional Commissioner of
Commercial Taxes
Central Sales Tax
Act  Sales Tax Deputy Commissioner of
Ahmedabad Commercial Taxes (Appeal)
Customs Act, 1962 Custom Duty Commissioner (Appeals)
Cenvat Credit
Rules, 2004 Excise Duty The Additional Commissioner
Customs & Central Excise
The Assistant Commissioner
Customs & Central Excise
Name of Statue Period to which the Rs. in Lakhs
amount relates
Central Sales Tax,
1956 (Goa) 2009-2010 16.67
Goa Value Added Tax
Act, 2005 2006-2007 2.07
Central Sales Tax Act Â
Ahmedabad 2006-2007 2,40.96
Customs Act, 1962 1996 4.43
Cenvat Credit Rules, 2004 April 2006 to October 7.30
2009
November 2009 to 3.14
June 2011
There were no dues of Wealth Tax, Service Tax and Cess which have not
been deposited as on 31st March, 2014 on account of disputes.
xi. The Company does not have accumulated losses as at 31st March,
2014 and the Company has not incurred cash losses in the fifteen months
period ended on that date and in the immediately preceding fnancial
year.
xii. According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
and fnancial institutions.
xiii. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the period for long-term investment.
xiv. During the period the Company has not made any preferential
allotment of shares to the parties and companies covered in the
Register maintained under Section 301 of the Companies Act, 1956.
xv. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the period.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Registration No. 117366W/ W-100018)
Khurshed Pastakia
Partner
(Membership No. 031544)
MUMBAI, May 28, 2014
Dec 31, 2012
1. We have audited the attached Balance Sheet of Abbott India Limited,
("the Company") as at December 31, 2012, Statement of Profit and Loss
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 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the 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 (Auditors'' Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) 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 in paragraph 3
above, we report as follows:
(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
those books;
(c) 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;
(d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
(e) 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at December 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iiii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of written representations received from the Directors
as on December 31, 2012 and taken on record by the Board of Directors,
none of the Directors is disqualified as on December 31, 2012 from
being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT TO THE MEMBERS OF ABBOTT INDIA LIMITED
(Referred to in paragraph 3 of our report of even date)
i. Having regard to the nature of the Company''s
business/activities/result, clauses x, xi, xii, xiii, xiv, xv, xvi,
xviii, xix and xx of CARO are not applicable
ii. In respect of its fxed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fxed assets.
(b) The fxed assets were physically verifed during the year by the
Management in accordance with a regular programme which, in our
opinion, provides for physical verifcation of all the fxed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verifcation.
(c) The fxed assets disposed of during the year, in our opinion, do not
constitute a substantial part of the fxed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
(a) As explained to us, the inventories were physically verifed during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation 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
verifcation.
iv. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, frms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
v. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining 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 purchases of
inventory and fxed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
vi. To the best of our knowledge and belief and according to the
information and explanations given to us, there were no transactions
required to be entered in the register maintained in pursuance of
section 301 of the Companies Act, 1956.
vii. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year
within the meaning of the provisions of Sections 58A & 58AA or any
other relevant provisions of the Companies Act, 1956. There are no
unclaimed deposits as at the year end.
viii. In our opinion, the internal audit functions carried out during
the year by an external entity appointed by the Management have been
commensurate with the size of the Company and the nature of its
business.
ix. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 in respect of formulations and are of the opinion
that prima facie the prescribed cost records have been maintained. We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
x. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at December 31, 2012 for a period of more than six
months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Custom Duty and Excise
Duty which have not been deposited as on December 31, 2012 on account
of disputes are given below:
(Rs. In Lakhs)
Forum where
Dispute is Year to which Amount
the
Statute Nature of Dues pending amount relates
Income Tax
Act, 1961 Income Tax ITAT A.Y 2005 to 2008 1,53.81
Central
Excise
Act, 1944 Excise Duty Commissioner
(Appeals) 1991-1992 3.20
Excise Duty Commissioner 1994 to 1995 3.56
Excise Duty Assistant
Commissioner 1994 and 1997
to 2002 2.51
Excise Duty CESTAT 2005 to 2006 26.60
The Bombay
Sales Tax
Act, 1959 Sales Tax Deputy
Commissioner
of 1999-2000 39.87
Sales Tax
Uttar Pradesh
Trade Tax
Act, 1948 Sales Tax Additional
Commissioner
of 1988-1989 1.59
Commercial
Tax (Appeals)
Sales Tax Trade Tax
Tribunal 1996-1997 0.26
Uttar Pradesh
Value Added
Tax Act, Value Added Tax Additional
Commissioner
of 2007-2011 4.26
2008 Commercial
Tax (Appeals)
West Bengal
Sales Tax
Act, 1994 Sales Tax Appellate &
Revisional
Board, 2003-2005 17.38
Commercial
Tax
Central
Sales Tax
Act, 1956 Sales Tax Sr. Joint
Commissioner
of 2006-2007 2.28
(West Bengal) Commercial
Taxes
Sales Tax Additional
Commissioner
of 2003-2004 and 0.57
Commercial
Taxes 2008-2010
Sales Tax Appellate &
Revisional
Board, 2005-2006 4.69
Commercial
Tax
Sales Tax Joint
Commissioner
of 2006-2007 3.81
Commercial
Taxes
West Bengal
Value Added
Tax Act, 2003 Value Added Tax Appellate &
Revisional
Board, 2005-2006 14.77
Commercial
Taxes
Value Added Tax Joint
Commissioner
of 2006-2007 11.1
Commercial
Taxes
Value Added Tax Sr Joint
Commissioner
of 2006-2007 2.44
Commercial
Taxes
Value Added Tax Additional
Commissioner
of 2007 to 2010 1,45.63
Commercial
Taxes
Value Added Tax Deputy
Commissioner
of 2012-2013 10.41
Sales Tax
Kerala
General Sales
Tax Act, 1963 Sales Tax Sales Tax
Appellate
Tribunal, 2002-2003 13.05
Additional
Bench
Central Sales
Tax, 1956
(Goa) Sales Tax Assistant
Commissioner
of 2005-2006 2,92.43
Commercial
Taxes
Sales Tax Additional
Commissioner
of 2006 to 2009 9,00.72
Commercial
Taxes
Goa Value
Added Tax
Act, 2005 Value Added Tax Assistant
Commissioner
of 2005-2006 0.31
Commercial
Taxes
Value Added Tax Additional
Commissioner
of 2006-2007 2.07
Commercial
Taxes
Central Sales
Tax Act -
Gujarat Sales Tax Deputy
Commissioner
of 2006-2007 2,40.96
Commercial
Taxes
(Appeal)
Customs
Act, 1962 Custom Duty Commissioner
(Appeals) 1996 4.43
Cenvat Credit
Rules, 2004 Excise Duty The
Additional
Commissioner April 2006
to October 7.30
Customs &
Central
Excise 2009
Excise Duty The Assistant
Commissioner November 2009
to June 3.14
Customs &
Central
Excise 2011
There were no disputed dues which remained unpaid in respect of Wealth
Tax, Service Tax and Cess during the year.
xi. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No.117366W)
B. R Shroff
Partner
(Membership No. 034382)
MUMBAI, February 20, 2013
Dec 31, 2010
1. We have audited the attached Balance Sheet of Abbott India Limited,
("the Company") as at 31st December, 2010, the Profit and Loss Account
and the Cash Flow Statement of the Company for the period from 1st
December, 2009 to 31st December, 2010, both annexed thereto. These
financial statements are the responsibility of the Companys
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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the 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 (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) 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 in paragraph 3
above, we report as follows:
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 those
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956;
e) 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2010;
ii) In the case of the Profit and Loss Account, of the profit of the
Company for the period from 1st December, 2009 to 31st December, 2010;
and
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the period from 1st December, 2009 to 31st December, 2010.
5. On the basis of written representations received from Directors as
on 31st December, 2010 taken on record by the Board of Directors, none
of the Directors is disqualified as on 31st December, 2010 from being
appointed as a director in terms of Section 274(l)(g) of the Companies
Act, 1956.
Annexure to the Auditors Report
(Referred to in paragraph 3 of our report of even date)
i. Having regard to the nature of the Companys business/
activities/result, clauses x, xi, xii, xiii, xiv, xv, xvi, xviii, xix
and xx of CARO are not applicable.
ii. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
b) The fixed assets were physically verified during the period by the
Management in accordance with a regular programme of which, in our
opinion, provides for physical verification of all fixed assets at
reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the period, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
a) As explained to us, the inventories were physically verified during
the period by the Management at reasonable intervals.
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 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.
iv. The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
v. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining 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 purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
vi. To the best of our knowledge and belief and according to the
information and explanations given to us, there were no transactions
required to be entered in the register maintained in pursuance of
section 301 of the Companies Act, 1956.
vii. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the period
within the meaning of the provisions of Sections 58A & 58AA or any
other relevant provisions of the Companies Act, 1956. There are no
unclaimed deposits as at the period end.
viii. In our opinion, the internal audit functions carried out during
the period by an external entity appointed by the Management have been
commensurate with the size of the Company and the nature of its
business.
ix. 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 Companies
Act, 1956 in respect of formulations 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. To the best of our knowledge and according to the information
and explanations given to us, the Central Government has not prescribed
the maintenance of cost records for any other product of the Company.
x. According to the information and explanations given to us in respect
of statutory dues:
a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities, except for certain
dues in respect of Profession Tax as is stated in Para x (b) below.
b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31st December, 2010 for a period of more than six
months from the date they became payable, except dues of Rs. 4.23 lakhs
payable in respect of Profession Tax under the Assam Professions
Trades, Callings and Employments Taxation Act, 1947 as at 31st
December, 2010. Of the above amount of Rs. 4.23 lakhs, an amount of Rs.
3.77 Lakhs (including Interest of Rs. 1.42 Lakhs) is outstanding for a
period of more than 6 months as at 31st December, 2010.
c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31st December, 2010 on account of disputes are given below :
Statute Nature of Dues Forum where Dispute is
pending
Income Tax Act, 1961 Disputed Income Tax Demand. ITAT
Disputed Income Tax Demand Dispute Resolution
Panel (DRP)
Central Excise
Act, 1944 Classification dispute Commissioner (Appeals)
Modvat credit
availed on inputs Commissioner
Modvat credit availed
on capital goods Assistant Commissioner
Recovery of amount
allegedly Assistant Commissioner
refunded erroneously
Reversal of credit
for Cremaffin Commissioner
& Furamide brought
back for relabeling.
Denial of Modvat credit
on material Assistant Commissioner
received beyond the
stipulated
period of six months
from the date of
invoice-Jejuri
Demand for excise duty
on empty Assistant Commissioner
plastic containers
Classification dispute CESTAT
CESTAT
The Bombay
Sales Tax Disputed Set off Deputy Commissioner of
Act, 1959 Sales Tax
Disputed Set off Maharashtra Sales Tax
Tribunal
Uttar Pradesh
Trade Enhancement of turnover Joint Commissioner
Tax Act, 1948 (Appeals)
Breakages & Damages Claim Trade Tax Tribunal
Disallowed
Seizure of Consignment
by mobile Joint Commissioner
squad (Appeals)
Seizure of Consignment
by mobile Additional
squad Commissioner (Appeals)
Disallowance of
Credit Notes on Deputy Commissioner
goods returned
Central Sales
Tax Act, Rejection of inter-State
credit notes Joint Commissioner
1956
(Uttar Pradesh) (Appeals)
Central Sales Tax Act,
1956 (Uttar Pradesh)
Statute Period to Amount
which the (Rs. In
amount Lakhs)
relates
Income Tax Act, 1961 A.Y2005:2006 23.90
A.Y2007-2008 1,36.92
Central Excise Act, 1944 1991-1992 3.20
1993-1994 0.93
1994-1995 0.33
2000 1.00
1994-1995 2.63
1997-1998 0.64
1998- 2002 0.54
2005 24.27
2006 2.33
The Bombay Sales Tax
Act, 1959 1999-2000 39.87
2000-2001 9.07
Uttar Pradesh Trade
Tax Act, 1948 1988-1989 1.59
1996-1997 0.26
2008-2009 0.72
2009-2010 0.80
2010-2011 1.39
Central Sales Tax Act,
1956 (Uttar Pradesh) 2007-2008 0.62
Statute Nature of Dues Forum where Dispute is
pending
West Bengal Sales Tax Breakages and Damages
claim Revisional Authority,
Act, 1994 Disallowed Commercial Taxes, West
Bengal
Disallowance of Bonus
Claim and Appellate Revisional
Sales Return Board, Commercial
Taxes, West Bengal
Central Sales
Tax Act, Disallowance of
declaration forms Sr.Joint Commissioner of
1956 (West Bengal) Commercial Taxes
West Bengal Value Non consideration of
Challan Appellate & Revisional
Added Tax Act, 2003 of Rs. 2.68 Lakhs,
Credit Note Board, Commercial
disallowance & Interest
imposed. Taxes, West Bengal
Disallowance of
Credit Notes, Sales Sr. Joint Commissioner
to institutions etc. of Commercial Taxes
Enhancement of Turnover Additional
Commissioner of
Commerical Taxes
Kerala General Sales Tax on stock transfer
treated as Sales Tax Appellate
Tax Act, 1963 sales Tribunal, Additional
Bench
Central Sales
Tax, 1956 Disallowance of
Declaration Forms Assistant Commissioner
(Goa) of Commercial Taxes,
Margao, Goa.
Disallowance of
Branch Transfer Additional
Value. Commissioner of
Commercial Taxes,
Panaji.Goa
Goa Value Added Tax Disallowance of
Input Tax Credit Additional
Act, 2005 Commissioner of
Commercial Taxes,
Panaji.Goa
Disallowance of
proportionate Input Additional
Tax Credit Commissioner of
Commercial Taxes,
Panaji, Goa
Customs Act, 1962 Demand for payment of
differential Commissioner (Appeals)
duty
Cenvat Credit Rules Disallowance of
Cenvat credit The Additional.
2004 (Service Tax) Commissioner Customs
& Central Excise, Goa.
Disallowance of
Cenvat credit The Assistant
(Service Tax) Commissioner Customs
& Central Excise, Goa.
Cenvat Credit Rules
,2004
Statute Period to Amount
which the (Rs. In
amount Lakhs)
relates
West Bengal Sales Tax
Act, 1994 T003-2004 1017
2004-2005 4.77
Central Sales Tax Act,
1956 (West Bengal) 2006-2007 2.28
West Bengal Value
Added Tax Act, 2003 2005-2006 4.17
2006-2007 2.44
2007-2008 1,12.54
Kerala General Sales
Tax Act, 1963 2002-2003 13.05
Central Sales Tax, 1956
(Goa) 2005-2006 2,92.43
2006-2007 3,97.00
Goa Value Added Tax
Act, 2005 2005-2006 0.31
2006-2007 2.07
Customs Act, 1962 1996 4.43
Cenvat Credit Rules
,2004 April2006 to 7.30
October 2009
November 1.39
2009
to September
2010
There were no disputed dues which remained unpaid in respect of Wealth
Tax and Cess during the period.
xi. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the period for long- term investment.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the period.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No.117366W)
K. A. Katki Partner
(Membership No. 038568)
MUMBAI, February 28, 2011
Nov 30, 2009
1. We have audited the attached Balance Sheet of Abbott India Limited,
("the Company"), as at November 30, 2009, the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys 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 Statement on Companies (Auditors Report) Order,
2003 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. Attention is invited to note B (4) of Schedule 16 annexed to and
forming part of the financial statements, regarding the re-appointment
of and remuneration paid to the Managing Director, subsequent to the
date of reappointment, i.e. November 01, 2009, amounting to Rs 16.87
lakhs, which is subject to the approval of the Members at the ensuing
Annual General Meeting of the Members of the Company.
5. 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, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) in our opinion, the Balance Sheet, Profit and Loss Account 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 written representations received from directors as
on November 30, 2009 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on November 30,
2009 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 read together with
Significant Accounting Policies and 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:
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at November 30, 2009;
(b) in the case of the Profit and Loss Account, 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.
Annexure referred to in paragraph 3 of the Auditors Report on the
Accounts of Abbott India Limited
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.
(b) Physical verification of fixed assets is being conducted in a
phased programme by the management designed to cover all assets over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and the nature of assets. The discrepancies
noticed on such verification were not material and have been properly
dealt with in the books of account.
(c) Although some of the fixed assets have been disposed off during the
year, in our opinion and according to the information and explanations
given to us, the ability of the Company to continue as a going concern
is not affected.
2. In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
(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 or taken any loan secured or unsecured to or
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly
sub clauses (a), (b), (c), (d), (e), (f) and (g) of clause (iii) are
not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal controls.
5. To the best of our knowledge and belief and according to the
information and explanations given to us, there were no transactions
required to be entered in the register maintained in pursuance of
Section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public.
7. In our opinion, the internal audit functions carried out during the
year by an external entity appointed by the management have been
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of formulations,
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
records have been maintained and the prescribed accounts are in the
process of being made up. We have however, not made a detailed
examination of the records with a view to determining whether they are
accurate or complete. To the best of our knowledge and according to the
information and explanations given to us, the Central Government has
not prescribed the maintenance of cost records for any other product of
the Company.
9. In respect of statutory dues:
(a) According to the information and explanations given to us, the
Company has been regular in depositing undisputed statutory dues,
including Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other material statutory dues with the
appropriate authorities during the year; except that: Provident Fund
(along with Interest and damages) in respect of an International worker
amounting to Rs 13.47 lakhs, was outstanding for more than 6 months as
at the year end. The said amount has since been paid subsequent to the
year end.
(b) According to the information and explanations given to us, details
of disputed Income Tax, Excise Duty, Sales Tax and Customs Duty, which
have not been deposited as on November 30, 2009 on account of any
dispute are given below:
Nature of Statute Nature of Dues Amount
Rs In
Lakhs
Income Tax Act, 1961 Disputed Income Tax Demand 1,15.78
Disputed Income Tax Demand 23.90
Disputed Income Tax Demand 39.02
Central Excise
Act, 1944 Classification dispute 3.20
Modvat credit availed on inputs 0.93
Modvat credit availed on
capital goods 0.33
Recovery of amount allegedly
refunded 1.00
erroneously
Reversal of credit for
Cremaffin & 2.63
Furamide brought back for
relabeling.
Denial of Modvat credit
on material 0.64
received beyond the stipulated
period of six months from the
date of invoice-Jejuri
Demand for excise duty on
empty plastic 0.54
containers
Classification dispute 24.27
2.33
The Bombay Sales
Tax Act, Disputed Set off 39.87
1959
Disputed Set off 9.07
Uttar Pradesh Trade
Tax Act, Enhancement of turnover 2.30
1948
Breakages & Damages
Claim Disallowed 0.26
Seizure of Consignment by
mobile squad 0.72
West Bengal Sales
Tax Act, Breakages and Damages claim 10.17
1994 Disallowed
Disallowance of Bonus Claim
and Sales 4.77
Return
Central Sales
Tax Act, 1956 Form F Pending 0.19
(West Bengal)
0.19
Form F Demand 0.09
Disallowance of declaration
forms 2.28
West Bengal Value
Added Tax Non consideration of Challan of 4.17
Act, 2003 Rs 2.68 lakhs, Credit Note
disallowance & Interest imposed.
Disallowance of Credit Notes,
Sales to 2.44
institutions etc
Kerala General
Sales Tax Act, Tax on stock transfer treated
as sales 10.91
1963
Rajasthan Value
Added Tax Act, Disallowance of Credit Notes 1.15
2003
Central Sales
Tax Act, 1956 Declaration Forms (F forms) 0.44
(Rajasthan)
Central Sales
Tax Act, 1956 Disallowance of
Declaration Forms 2,92.43
(Goa)
Goa Value Added
Tax Act, 2005 Disallowance of Input
Tax Credit 0.31
Customs Act, 1962 Demand for payment of
differential duty 4.43
Nature of Stataue Period to Forum where dispute is
which the pending
Amount relates
Income Tax Act, 1961 A.Y. 2004-2005 CIT (Appeals)
A.Y. 2005-2006 CIT (Appeals)
A.Y. 2006-2007 CIT (Appeals)
Central Excise Act, 1944 1991-1992 Commissioner (Appeals)
1993-1994 Commissioner
1994-1995 Assistant Commissioner
2000 Assistant Commissioner
1994-1995 Commissioner
1997-1998 Assistant Commissioner
1998-2002 Assistant Commissioner
2005 CESTAT
2006 CESTAT
The Bombay Sales Tax Act,
1959 1999-2000 Assistant Commissioner of
Sales Tax
2000-2001 Maharashtra Sales Tax Tribunal
Uttar Pradesh Trade Tax Act,
1948 1988-1989 Additional Commissioner
(Appeals)
1996-1997 Trade Tax Tribunal
2008-2009 Joint Commissioner (Appeals)
West Bengal Sales Tax Act,
1994 2003-2004 Revisional Authority,
Commercial
Taxes, West Bengal
2004-2005 Appellate Revisional Board,
Commercial Taxes, West Bengal
Central Sales Tax Act, 1956
(West Bengal) 2003-2004 Revisional Authority,
Commercial Taxes, West Bengal
2004-2005 Deputy Commissioner of
Commercial Taxes
2005-2006 Deputy Commissioner of
Commercial Taxes
2006-2007 Sr Joint Commissioner of
Commercial Taxes
West Bengal Value Added Tax
Act, 2003 2005-2006 Appellate Revisional Board,
Commercial Taxes, West Bengal
2006-2007 Sr Joint Commissioner of
Commercial Taxes
Kerala General Sales Tax Act,
1963 2002-2003 Sales Tax Appellate Tribunal,
Additional Bench
Rajasthan Value Added Tax Act,
2003 2005-2006 Assistant Commissioner,
Special Circle
Central Sales Tax Act, 1956
(Rajasthan) 2005-2006 Assistant Commissioner,
Special Circle
Central Sales
Tax Act, 1956
(Goa) 2005-2006 Assistant Commissioner of
Commercial Taxes, Margao,
Goa.
Goa Value Added
Tax Act, 2005 2005-2006 Assistant Commissioner of
Commercial Taxes, Margao,
Goa.
Customs Act, 1962 1996 Commissioner (Appeals)
There were no disputed dues which remained unpaid in respect of Wealth
Tax, Service Tax and Cess during the year.
10. 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
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not obtained any borrowings from any banks
or financial institutions or by way of debentures.
12. In our opinion, the Company has not granted loans and advances on
the basis of security by way of pledge of shares, debentures and other
securities
13. In our opinion, the Company is not a chit fund or a Nidhi/Mutual
benefit fund/Society. Therefore, the provisions of clause (xiii) are
not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause (xiv) are not applicable to the Company.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
16. The Company has not obtained any term loans during the year.
17. According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have prima-facie, not been used during the
year for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties or
companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issues during the
year.
21. 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
(ICAI Reg. No. 117366W)
K A KATKI
Mumbai, Partner
February 01, 2010 Membership No. 038568
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