| Report on the Financial Statements
We have audited the accompanying financial statements of Fresenius Kabi
Oncology Limited, which comprise the Balance Sheet as at 31st March
2013, and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and fair presentation of the financial
statements that are free from material misstatement, whether due to
fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company's preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our qualified audit opinion.
We have relied on management assertion under note no.37 of financial
statements for treatment of Rs. 58 crore towards upgradation of Kalyani
Plant under different heads of expenses during financial year 2012-13.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from branch not visited by us;
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 [and with the returns received from branch not visited by us];
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement (read with note no. 27 (iii) & 27 (iv) of
Financial Statements) comply with the accounting standards referred to
in sub-section (3C) of section 211 of the Act;
e. On the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets in respect of all its locations.
b) The fixed assets have been physically verified by the management at
all locations at reasonable intervals. No material discrepancies
between book records and the physical inventories have been noticed on
such verification.
c) Fixed assets disposed of during the year are not material enough to
affect the going concern of the company.
2. a) The inventories have been physically verified during the year at
reasonable intervals by the Management.
b) In our opinion, 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) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
3. a) The Company has not granted any loan, secured or un-secured to
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956, during the year.
b) The Company has not taken any loan secured or unsecured from firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956, during the year.
However the Company has taken unsecured loans from one body corporate
listed in the register maintained under section 301 of the Companies
Act, 1956. The year end balance in respect of the same was Rs. 9,522.05
lacs which is also the maximum balance against these loans during the
year. The rate of interest and other terms and conditions of these
loans are not, prima facie, prejudicial to the interest of the Company.
The principal amount of loan has not yet become due for payment.
Interest thereon have been paid as per the terms of Loans.
4. In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of inventories and fixed assets and for the sale of goods and
services. During the course of our audit no major weakness has been
noticed in the internal control system.
5. a) Based on audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the
registers maintained under section 301 of Companies Act, 1956 have been
so entered.
b) According to information and explanation given to us, the
transactions of sales made in pursuance of contracts or arrangements
entered in the registers maintained under section 301, during the year
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. In our opinion and according to information and explanations given
to us the Company has not accepted any deposit from the public and as
such the question of compliances of section 58, 58AA and other relevant
provisions of act do not arise.
7. In our opinion the Company has an internal audit system
commensurate with its size and nature of its business.
8. On the basis of records produced, we are of the opinion that prima
facie cost records and accounts prescribed by the Central Government
under section 209(i)(d) of the Companies Act, 1956 in respect of
products of the Company covered under the rules under said section have
been maintained. However we are neither required to carry out nor have
carried out any detailed examination of such accounts and records.
9. a) According to information and explanation given to us, the
Company has been regular in depositing with appropriate authorities
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
statutory dues to the extent applicable to it.
We have been informed that there are no undisputed statutory dues as at
the year end outstanding for a period of more than six months from the
date they became payable.
b) There is no disputed due on account of sales tax, wealth tax,
service tax, customs duty and cess. Dues on account of Income Tax /
Excise Duty disputed by the Company vis-a- vis forums where such
disputes are pending are mentioned below :
Excise Duty:
Name of Nature of Amount Period to Forum where
Statue the dues (Rs. in which the the dispute is
Lacs) amount
relates pending
Excise Duty Excise 9.78 2003 CESTAT,
Demand to New Delhi
Disputed on 2009
PME Deductions
& Service tax
reversal (Baddi)
Excise Duty Excise 615.55 2010 Appeal to be
Demand to filed with
Disputed on 2012 CESAT
Cenvat utilised
& Rebate claims
(Baddi)
Excise Duty Excise 117.03 2005 Appeal to be
Demand to filed with
Disputed on 2011 CESAT
Sterility Samples
consumed during
testing (Kalyani)
Income Tax:
Name of Nature of Amount Period to Forum where
Statue the dues (Rs. in which the the dispute is
Lacs) amount
relates pending
Income Tax Assessed 228.58 A.Y2005-06 CIT(A),N Delhi
demand Disputed
Income Tax ....do.... 9.17 A.Y2006-07 ITAT,N Delhi
Income Tax ....do.... 304.97 A.Y2007-08 CIT(A),N Delhi
Income Tax ....do.... 1056.55 A.Y2008-09 CIT(A),N Delhi
Income Tax Reduction - A.Y2009-10 CIT(A),N Delhi
of Loss
10. The Company does not have any accumulated loss as on 31st March
2013. It has not incurred cash losses in the current financial year and
in the immediately preceding financial year.
11. Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Company has not
defaulted in repayment of dues to any bank, debentureholder, financial
or institutional lenders.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
13. The Company has not been dealing in shares, securities, debentures
or any other investment.
14. The Company has not furnished a guarantee for loans taken by
others from banks or financial institutions.
15. Term loan obtained from bank by the Company has been applied for
the purpose for which they were raised. Company does not have any
financial institutional lender or debenture holder.
16. No fund has been raised on short term basis during the year which
has been used for long term purposes.
17. The Company has not made any preferential allotment of shares
during the year to any party or Companies covered in the register
maintained under section 301 of the Companies Act, 1956.
18. The Company has not issued any debenture.
19. The Company has not made any public issue during the year.
20. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
21. Other clauses of the order are not applicable to the Company for
the year.
For G. Basu & Co.
Chartered Accountants
Firm registration number: 301174E
S.LAHIRI
Gurgaon Partner
27th May 2013 Membership Number: 51717 | 