AUDIT REPORT OF JUBILANT LIFESCIENCES

SUBMITTED BY: DEVYANI BISHT BCOM (HONS) - IInd year ENROLLMENT NO - A3104611032

SUBMITTED TO: DR MEENAKSHI KAUL

INTRODUCTION We have audited the Balance Sheet of JUBILANT LIFESCIENCES as at March 31. . 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. the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto. 2012.

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.LITERATURE REVIEW We conducted our audit in accordance with the 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. as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. on a test basis. .

On the basis of written representations received from the Directors as on March 31.HYPOTHESIS 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. The Balance Sheet. In our opinion. 1956. In our opinion. we . the Balance Sheet. proper books of account. Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act. have been kept by the Company. as required by law. Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account. so far as appears from our examination of those books. 2012 and taken on record by the Board of Directors.

the said accounts read together with the Significant Accounting Policies and notes thereon give the information required by the Companies Act. 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. 2012 from being appointed as a director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act. of the cash flows for the year ended on that date. 1956. of the state of affairs of the Company as at March 31. of the profit for the year ended on that date. 1956. 2012. and (iii) in the case of the Cash Flow Statement.report that none of the Directors is disqualified as on March 31. (ii) in the case of the Statement of Profit and Loss. . In our opinion and to the best of our information and according to the explanations given to us.

50 8.70 1.97 1.600.441.25.698.467.682.02 1.BALANCE SHEET OF JUBILANT LIFESCIENCES Balance sheet (Rscrore) Mar ' 12 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block 2.492.00 2.270.453.00 78.00 1.03 1.37 3.784.012.64 88.31 871.21 56.558.27 62.00 91.770.13.00 10.15.21.545.14.82 11.229.51 3.655.25 1.864.37 1.596.824.09.670.12.42.604.50 50.251.127.057.62 .945.799.552.095.271.21.53 69.345.273.95 1.470.97 2.628.206.455.00 1.239.26 42.37 6.00 5.804.658.573.00 3.825.56 6.17.88.861.285.879.47 1.70 1.40 77.00 1.37.47 61.44.71 1.44 2.49.00 51.90.59.55 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 1.92 63.969.47 11.19 10.39 1.697.17 29.00 2.04.10 3.75 49.571.

65 2.959.00 4.03 1.82 23.62 Mar ' 09 69.Mar ' 12 Capital work-in-progress Investments Net current assets Current assets.492.00 2.651.71 9.13.43 - 62.126.432.61 32710.09 37.18.377.043.622.63 36.221.339.550.675.930.00 1.722.861.13 15.56 37.248.70 1.057.49 .470.831.531.975.00 Mar ' 11 12.008.60 91.606.83 8.74 32703.21 18.839.26 15.88.21 - 2.37 32.048.49 Mar ' 08 23.502.00 1.00 54.063.78 45.138.16 10. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 23.98 14536.75 53.02 22.84 22.885.05 51.584.228.69 12.22 25.00 70.90.35 25.746.00 45.596.78 65.59 32733.927.31 41.196.97 - 54.08 11.157.83 21.037.07 - 43.00 31.825.74 15737.00 48.54 Mar ' 10 12.17.005.284.563.963.21.759.439.819.

616.78.63 29.81 4.330.62.831.10 2.00 2.52 772.75 894.49.80 5.35 1.865.39 1.46 3.00 24.340.424.194.847.17 23.101.162.94.00 1.00 4.559.00 38.372.67 -449.324.82 4.741.96.71 2.98 40.397.607.123.75 -3.162.687.59 2.195.49 48.203.95 10.857.17.77 2.29 18.119.805.496.00 1.856.34 15.373.92 4.47 -175.713.00 11.865.77 1.00 5.355.61 1.PROFIT AND LOSS ACOOUNT Mar ' 12 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments 2.710.00 1.11.03 2.00 18.07 2.393.65 2.204.00 -37.12 1.969.13 32.00 2.557.58 24.699.969.00 5.518.833.26 33.832.584.265.06 1.091.27 2.303.63 -1.14 19.01 3.96 2.38 2.78 1.999.90 4.896.35 22.69 2.665.78 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 2.80 1.193.136.30 6.97 15.768.394.00.29.758.00 37.651.67 670.432.50 3.47 5.38 25.10 .87 1.634.621.16 1.00 5.152.00 2.823.615.137.30 13.08.20 1.229.51 2.959.326.53 19.806.33 3.122.85 13.217.328.92.10.353.284.72 4.14 17.92 24.48.388.59 5.25 -30.520.26 4.33.41.860.774.00 2.00 2.65 3.932.69 1.095.668.170.732.

90 22.39 22.29 .67 346.05 322.188.631.86 Mar ' 10 16.513.00 23.00 26.40 17.619.084.24 19.23 20.040.00 410.554.75 2.285.384.24 277.Mar ' 12 Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 20.86 2.531.67 21.00 Mar ' 11 20.363.271.286.506.30 25.897.16 Mar ' 08 19.672.76 1.99 386.32 19.00 2.309.95 Mar ' 09 15.61 1.453.613.235.

462.713.23 23.973.465.835.176.894.24 20.280.29 39.204.70 1.86 13.463.490.00 33.57 -10.22 18.65 22.433.974.35 4.00 13.58 8.084.04 2.134.05 12.999.598.21 -8.53 .242.00 724.65 22.750.14 26.00 -20.046.282.444.CASH FLOW STATEMENT Cash flow (Rscrore) Mar ' 12 Profit before tax Net cashflow-operating activity Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 25.732.332.88 17.955.280.426.08 Netcash used in fin.176.00 27.672.00 25.462.60 23.20 -23.547.00 13.010.74 Net cash used in investing activity -3.53 4.135.88 -18.52 20. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year -11.24 27.44 18.86 17.245.50 -24.

. c) In our opinion.RESULT AND DISCUSSION 1. b) In our opinion and according to the information and explanations given to us. having regard to the size of the Company and nature of its assets. In our opinion. the frequency of verification is reasonable. In respect of its fixed assets: a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information. 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. 2. all the fixed assets have been physically verified by the management in a phased periodical manner. No material discrepancies were noticed on such physical verification. the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected. In respect of its inventories: a) The inventories have been physically verified during the year by the management. b) As explained to us. which in our opinion is reasonable.

secured or unsecured. As explained to us. c) The principal amounts are repayable over a period of three to five years. firms or other parties covered in the register maintained under Section 301 of the Companies Act. In respect of the loans. granted or taken by the Company to / from companies. b) In our opinion and according to the information and explanations given to us. the maximum amount outstanding at any time during the year wasRs 10. e) The Company has not taken any loan during the year from companies. the requirements of Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not applicable.254 crore and the year-end balance is Rs 10.615 crore). are not prima facie prejudicial to the interest of the Company. there were no material discrepancies noticed on physical verification of inventories as compared to the book records. . Consequently. d) In respect of the said loans and interest thereon. the rate of interest and other terms and conditions of the loans given by the Company. In respect of the said loans. firms or other parties covered in the Register maintained under Section 301 of the Companies Act.239 crore (including interest free loan of Rs 6. there are no overdue amounts. 3. while the interest is payable annually at the discretion of the Company.c) The Company has maintained proper records of inventories. 1956. 1956: a) The Company has given loans to two subsidiaries.

the Company has not accepted any deposit from the public. In our opinion and according to the information and explanations given to us. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act. the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.4. According to the information and explanations given to us. 1956: (a) In our opinion and according to the information and explanations given to us. (b) In our opinion and according to the information and explanations given to us. we have not observed any continuing failure to correct major weaknesses in internal control system. the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act. 6.000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company. Therefore. the transactions made in pursuance of contracts / arrangements entered in the Register maintained under section 301 of the Companies Act. 1956 and exceeding the value of Rs 5. 1956 have been so entered. 5. During the course of our audit. .00. there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services.

We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules. and other statutory dues have been generally regularly deposited with the appropriate authorities. Cess. Amounts due and outstanding for a period exceeding 6 months as at March 31. Investor Education and Protection Fund. In respect of statutory dues: a) According to the records of the Company. According to the information and explanations given to us. 8. Employees'' State Insurance.7. no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31. In our opinion. undisputed statutory dues including Provident Fund. Customs Duty. which are held in abeyance due to pending legal cases. 2012 to be credited to Investor Education and Protection Fund of Rs 9 crore. Excise Duty. 2012 for a period of more than six months from the date of becoming payable. b) The disputed statutory dues aggregating Rs 828 crorethat have not been deposited on account of disputed matters pending before . however. have not been considered. not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. We have. 9. 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act. Income-Tax. Service Tax. Sales Tax. Wealth Tax. 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. the Company has an internal audit system commensurate with the size and nature of its business.

The Company does not have accumulated losses at the end of the financial year. In our opinion. debentures and other securities. The Company has not incurred cash losses during the financial year covered by the audit and in the immediately preceding financial year. 11. 12. no loans and advances have been granted by the Company on the basis of security by way of pledge of shares. . Therefore. All shares. 10. the Company is not a chit fund / nidhi / mutual benefit fund / society. debentures and other investments have been held by the Company in its own name. banks and debenture holders. securities. securities. In our opinion and according to the explanations given to us and based on the information available. the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company. 14.appropriate authorities. we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions. The Company has maintained proper records of the transactions and contracts in respect of dealing or trading in shares. Based on our audit procedures and according to the information and explanations given to us. 13. debentures and other investments and timely entries have been made therein.

The Company has not raised any monies by way of public issues during the year. In our opinion and according to the information and explanations given to us.15. The term loans outstanding at the beginning of the year and those raised during the year have been applied for the purposes for which they were raised. we are of the opinion that there are no funds raised on short-term basis that have been used for long. 21. 18. The Company has raised new term loans during the year. 16. 20. we are of the opinion that the terms and conditions thereof are not prima facie prejudicial to the interest of the Company. The Company has given guarantees for loans taken by Others from banks and financial institutions. 19. According to the information and explanations given to us. The Company has created securities / charges in respect of secured debentures issued. no material fraud has been reported during the year. 1956. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company. .term investment. 17.

CERTIFICATE The project entitled submitted to the ACCF. The research work has not been submitted elsewhere for the award of any degree.MeenakshiKaul.I understand that I myself could be held responsible and accountable of plagiarism if any detected later on. The material borrowed from other sources and incorporated in the research has been duly acknowledged. AUUP for auditing as part of internal assessment is based on my original work carried out under the guidance of Dr. DEVYANI BISHT 18TH MARCH 2013 .

Depositories Act. 1996. 1999 to the extent applicable to Overseas Direct Investment (ODI). Foreign Direct Investment (FDI) and External Commercial Borrowings (ECB) and all the Regulations and Guidelines of SEBI as applicable to the Company. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations. 1992.CONCLUSION The Audit Report confirms that the Company has complied with all the applicable provisions of the Companies Act. if made. 1956. 1998 and Listing Agreements with the Stock Exchanges. The Company has received letters from all of them to the effect that their reappointment. 2008 and The Securities and Exchange Board of India (Buy Back of Securities) Regulations. . Securities Contracts (Regulation) Act. would be within the prescribed limits under Section 224(1B) of the Companies Act. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. 2011. including The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. 1999. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations. The Foreign Exchange Management Act. 1956. 1956 and that they are not disqualified for reappointment within the meaning of Section 226 of the said Act.

COM .REFERENCES  MONEYCONTROL.  JUBL.MONEYWIZ  SEVERAL ARTICLES BASED ON AUDITING PROCEDURES AND CONCLUSIONS  INFORMATION GIVEN BY DELLOITE HASKINS AND SELLS.COM  REDIFF.

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