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Cipla Ltd.

BSE: 500087 Sector: Health care
NSE: CIPLA ISIN Code: INE059A01026
BSE 16:01 | 27 Mar 2018 Cipla Ltd
NSE 05:30 | 01 Jan 1970 Cipla Ltd
OPEN 550.70
PREVIOUS CLOSE 540.75
VOLUME 377007
52-Week high 663.00
52-Week low 479.00
P/E 34.43
Mkt Cap.(Rs cr) 43,717
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 550.70
CLOSE 540.75
VOLUME 377007
52-Week high 663.00
52-Week low 479.00
P/E 34.43
Mkt Cap.(Rs cr) 43,717
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cipla Ltd. (CIPLA) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS

TO THE MEMBERS OF

CIPLA LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Cipla Limited ("theCompany") which comprises the Balance Sheet as at 31st March 2014the Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act") read with the GeneralCircular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairsin respect of section 133 of the Companies Act 2013. This responsibility includes thedesign implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company’spreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the entity’s internal control. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Management as well as evaluatingthe overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: i. in the case of the Balance Sheet of the stateof affairs of the Company as at 31st March 2014; ii. in the case of theStatement of Profit and Loss of the profit for the year ended on that date; and iii. inthe case of the Cash Flow Statement of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor’s Report) Order 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure a statement on the matters specified in paragraphs 4and 5 of the Order.

8. As required by sub-section (3) of section 227 of the Act we report that:

a. we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; b. in our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books;

c. the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt 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 CashFlow Statement comply with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Act read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of section 133 of theCompanies Act 2013; e. on the basis of written representations received from thedirectors as on 31st March 2014 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2014 from being appointed asa director in terms of clause (g) of sub-section (1) of section 274 of the Act.

For V. Sankar Aiyar & Co. For R.G.N. Price & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 109208W Firm Reg. No. 002785S
V. Mohan R. Rangarajan
Partner Partner
Membership No. 17748 Membership No. 41883
Mumbai 29th May 2014 Mumbai 29th May 2014

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in Paragraph 7 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the Members of Cipla Limited)

1. a. The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets other than situation offurniture and fixtures and office equipment where the situation recorded is the locationof the Company’s different establishments.

b. The Company has a policy of physically verifying its fixed assets in a phased mannerto cover all the assets of the Company in a block of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its business. Duringthe year some of the fixed assets have been physically verified by the Management anddiscrepancies noticed during the physical verification which were not material have beenappropriately dealt with in the books of account.

c. The fixed assets that have been sold/disposed off during the year do not constitutea substantial part of the total fixed assets of the Company. Hence the going concernconcept has not been affected.

2. a. The inventory has been physically verified by the Management at reasonableintervals during the year. The verification was done on the basis of the perpetualinventory system operated by the Company. In case of materials lying with third partiescertificates confirming such inventory have been obtained by the Company from most of thethird parties.

b. In our opinion and on the basis of the information and explanations given to us theprocedures for physical verification of inventory followed by the Management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c. On the basis of our examination of the inventory records in our opinion theCompany has maintained proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared with the book records were not material and havebeen properly dealt with in the books of account.

3. As informed to us the Company has not granted or taken any loans secured orunsecured to or from companies firms or other parties listed in the Register maintainedunder section 301 of the Act. Consequently the requirements of clause (iii) of paragraph4 of the Order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us thereare generally adequate internal control systems commensurate with the size of the Companyand the nature of its business for purchase of inventory and fixed assets and for the saleof goods and services. Further on the basis of our examination of the books and recordsof the Company and according to the information and explanations given to us during thecourse of audit we have not observed any continuing failure to correct major weaknessesin such internal control systems.

5. a. In our opinion and according to the information and explanations given to us theparticulars of contracts or arrangements referred to in section 301 of the Act have beenentered in the Register required to be maintained under that section.

b. In our opinion and according to the information and explanations given to us thetransactions made in pursuance of contracts or agreements referred to in 5.a. above andexceeding the value of rupees five lakhs in respect of any party during the year have beenmade at prices which are reasonable having regard to the prevailing market prices at therelevant time.

6. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of section 58A58AA or any other relevant provisions of the Act and Companies (Acceptance of Deposits)Rules 1975.

7. In our opinion the Company has an internal audit system commensurate with its sizeand the nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of cost records under section209(1)(d) of the Act in respect of its products and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. However we have notcarried out a detailed examination of the accounts and records with a view to determinewhether these are accurate or complete.

9. a. According to the information and explanations provided to us and the records ofthe Company examined by us in our opinion the Company was regular in depositingundisputed statutory dues including Provident Fund Investor Education and ProtectionFund Employees’ State Insurance Income Tax Sales Tax Wealth Tax Service TaxCustoms Duty Excise Duty and other material statutory dues applicable to it with theappropriate authorities. There were no undisputed arrears that were outstanding as at 31stMarch 2014 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us and based on the recordsof the Company examined by us as on 31st March 2014 there were no dues inrespect of Wealth Tax Income Tax and Customs Duty that have not been deposited with theappropriate authorities on account of dispute.

The particulars of dues towards Excise Duty Sales Tax and Service Tax that have notbeen deposited on account of dispute as at 31st March 2014 and the forum wherethese disputes are pending are as follows:

Name of the statute Nature of dues Financial years to which the matter pertains Forum where the dispute is pending Amount
Rs in crore
The Central Excise Act 1944 Excise Duty 2000-01 to 2012-13 CESTAT/High Court 50.45
Finance Act 1994 Service Tax 2004-05 to 2012-13 Commissioner 25.09
State Sales Tax Acts Sales Tax 2001-02 to 2012-13 State Sales Tax Tribunal/ Joint Commissioner 5.46

10. The Company does not have accumulated losses at the end of the financial year andhas not incurred cash losses in the financial year under report or in the immediatelypreceding financial year.

11. According to the information and explanations given to us and based on our auditprocedures the Company has not defaulted in repayment of dues to any financialinstitution or bank.

12. According to the information and explanations given to us the Company has notgranted any loans and advances on the basis of security by way of pledge of sharesdebentures and other securities.

13. In our opinion the Company is not a chit fund or a nidhi mutual benefitfund/society. Therefore the provisions of clause 4(xiii) of the Order are not applicableto the Company.

14. In our opinion and according to the information and explanations given to us theCompany is not a dealer or trader in shares securities debentures or other investments.Accordingly the provisions of clause 4(xiv) of the Order are not applicable to theCompany.

15. According to the information and explanations given to us and the representationsmade by the Management the Company has not given any guarantee for loans taken by othersfrom banks or financial institutions. 16. The Company has not availed of any term loans.Accordingly the provisions of clause 4(xvi) of the Order are not applicable to theCompany.

17. According to the information and explanations given to us and on an overallexamination of the Balance Sheet of the Company we report that no funds raised on shortterm basis have been used for long term investment. 18. The Company has not madepreferential allotment of shares during the year to parties and companies covered in theRegister maintained under section 301 of the Act.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money through public issue of securities during theyear.

21. During the course of our examination of the books of account and records of theCompany and according to the information and explanations given to us no material fraudon or by the Company has been noticed or reported by the Company during the year.

For V. Sankar Aiyar & Co. For R.G.N. Price & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 109208W Firm Reg. No. 002785S
V. Mohan R. Rangarajan
Partner Partner
Membership No. 17748 Membership No. 41883
Mumbai 29th May 2014 Mumbai 29th May 2014