Download - Glenmark

Annexure to the Auditors’ Report of even date to the members of Glenmark
Pharmaceuticals Limited, on the financial statements for the year ended 31 March 2011.
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the
Company and taking into consideration the information and explanations given to us and the books of account and other
records examined by us in the normal course of audit, we report as under:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are
verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification
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) In our opinion, a substantial part of fixed assets has not been disposed off during the year.
(ii) (a) Physical verification of inventory (except stocks lying with third parties and stocks in transit, confirmations for
which have been obtained) have been conducted at reasonable intervals by the management.
(b) In our opinion, 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) (a) There are four companies covered in the register maintained under section 301 of the Act to which the Company
has granted unsecured loans. The maximum amount outstanding during the year was ` 15,248.94 million and
the year-end balance was ` 13,713.96 million.
(b) In our opinion, the rate of interest and other terms and conditions of such loans are not, prima facie, prejudicial
to the interest of the Company.
(c) In respect of loans granted, repayment of the principal amounts is as stipulated and payment of interest has
been regular.
(d) There is no amount overdue in respect of loans granted to companies, firms or other parties listed in the register
maintained under section 301 of the Act.
(e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in
the register maintained under Section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(f) and 4(iii)(g)
of the Order are not applicable.
(iv) In our opinion, 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.
(v) (a) The Company has not entered into contracts or arrangements referred to in section 301 of the Act. Accordingly,
the provisions of clause 4(v) of the Order are not applicable.
(b) There are no transactions in pursuance of contracts or arrangements entered in the registered maintained under
section 301 of the Act during the year aggregating to rupees five lakhs or more in respect of any party.
(vi) The Company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Act
and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order
are not applicable.
(vii) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the
Central Government under section 209 (1)(d) of the Act for the maintenance of cost records in respect of Company’s
products and are of the opinion that, prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the records with a view to determine whether they
are accurate or complete.
(ix) (a)
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, as applicable, have generally been regularly deposited with the appropriate authorities. No
undisputed amounts payable in respect thereof were outstanding at the year end for a period of more than six
months from the date they became payable.
50
GLENMARK PHARMACEUTICALS LIMITED