To,
The Members of
DENIS CHEM LAB LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of DENIS CHEM LAB LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit & Loss,Statement of Changes in Equityand Statement of
Cash Flows 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 read together with significant accounting
policies and accompanying notes thereon 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 31st
March, 2023, the net profit and total comprehensive income, changes in equity and
its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the entity in accordance
with the Code of Ethics issued by ICAI together with the ethical requirement that are
relevant to our audit of the financial statements under the provisions of the Companies
Act, 2013 and the rules thereunder and we have fulfilled our other ethical
responsibilities in accordance with the Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the annual
report,but does not include the financial statements and our auditors 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 the 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 reportin this regard.
Responsibilities of Management and those charged with Governance for the Financial
Statements
The Companys management and Board of Directors are 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 and
financial performance of the Company in accordance with the accounting principles
generally accepted in India, including the accounting Standards specified under section
133 of the Act. 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 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, the management and Board of Directors are
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors 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 Companys financial
reporting process.
Auditors 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 auditors 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 financial 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 system 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors 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 auditors
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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
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 standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors 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 (Auditors Report) Order, 2020 ( "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" 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 & 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 appears from our examination of those books.
c. The Balance sheet, statement of Profit & Loss (including other comprehensive
income), the statement of Changes in equity 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 Indian accounting
standards specified in section 133 of the Act, read with Rule 7 of the Companies (Indian
Accounting Standards) Rules, 2015, as amended.
e. On the basis of the written representation received from the directors as on 31st
March, 2023 taken on record by Board of Directors, none of the director is disqualified as
on 31st March, 2023 from being appointed as a director in terms of section
164(2) of the Companies Act, 2013.
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 "Annexure B".Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls over financial reporting.
g. With respect to the other matters to be included in the Auditors report in
accordance with the requirements of section 197(16) of the Act, as amended, in our
opinion, and to the best of our information and according to the information and
explanations given to us, 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;
h. With respect to other matters to be included in the Auditors 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 impact of pending litigations on its financial position in
its 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,
no funds (which are material either individually or in the aggregate) 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 or entity, including foreign
entity ("Intermediaries"), 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 ("Ultimate Beneficiaries") 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, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), 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
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures 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 (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v) The final dividend paid by the Company during the year in respect of financial year
2021-2022 is in accordance with Section 123 of the Act to the extent it applies to payment
of Dividend. As stated in Note No.42 of 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 proposed is in
accordance with section 123 of the Act to the extent it applies to declaration of dividend
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For SHAH & SHAH ASSOCIATES |
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Chartered Accountants |
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Firm Regn. No. 113742W |
| Place : |
Ahmedabad |
VASANT C.TANNA |
| Date : |
30th May,2023 |
Partner |
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Membership Number: 100422 |
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UDIN 23100422BGSDKD4124 |
Annexure A to the Independent AuditorsReport
of even date on the Financial Statements of DENIS CHEM LAB LIMITED.
Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement of our report of even date to the financial statements of the
Company for the year ended March 31, 2023: i. In respect of Companys property, plant and
equipment and intangible assets: a) (A) The Company has maintained proper records showing
full particulars, including quantitative details and situation of Property, Plant and
Equipment.
(B) The Company has maintained proper records showing full particulars of intangible
assets. b) The Property, Plant and Equipment have been physically verified by the
management during the year and no material discrepancies were noticed on such physical
verification. c) Based on our audit procedures and according to the information and
explanations given to us, we report that, the title deeds of immovable properties included
in Property, Plant and Equipment are held in the name of the Company. d) During the year
under review, the Company has not revalued its Property, Plant and Equipment or intangible
assets or both. e) There are no proceedings initiated or are pending against the Company
for holding any benami property under the Prohibition of BenamiProperty Transactions Act,
1988 and rules made thereunder. ii. (a) Physical verification of inventory has been
conducted by the management at reasonable intervals.
In our opinion, the frequency of verification by the management is reasonable and the
coverage and procedure of such verification is appropriate. No discrepancies of 10% or
more in aggregate for each class of inventory were noticed on such physical verification.
(b) The Company has working capital limits sanctioned from banks exceeding Rs.5.00
crores, on the basis of security of current assets.The quarterly returns/statements filed
by the Companyare broadly in agreement with the books of accounts and no material
unreconciled discrepancies have been observed. ii
i. According to the information and explanations given to us, during the year the
Company has not made any investments in, provided any guarantee or security or granted any
loans or advances in the nature of loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or any other parties. Accordingly reporting under clause 3
(iii)
(a) to 3
(iii)
(f) of the Order are not applicable to the Company.
iv. There are no loans, investments, guarantees and security in respect of which
provisions of Sections 185 and 186 of the Act are applicable and accordingly requirement
of report on clause 3
(iv) of the Order is not applicable to the Company.
v. According to the information and explanations given to us, the Company has not
accepted any deposits, in terms of the directives issued by the Reserve Bank of India and
the provisions of sections 73 to 76 or any other relevant provisions of the Act and the
Companies (Acceptance of Deposit) Rules, 2015. v
i. In respect of business activities of the Company, maintenance of cost records has
been specified by the Central Government under sub-section
(1) of section 148 of the Companies Act, 2013. We have broadly reviewed the cost
records maintained by the Company and are of the opinion that prima facie, the prescribed
accounts and cost records have been maintained. We have, however, not made detailed
examinations of the records with a view to determining whether they are accurate or
complete. vi
i. In respect of statutory dues: a) As per information and explanations given to us,
the Company is regular in depositing undisputed statutory dues including Goods and
Services tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service
Tax, duty of Custom, duty of Excise, Value Added Tax and other material statutory dues
applicable to it with the appropriate authorities. There were no undisputed amounts
payable in respect of Goods and Service tax, Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax and
other material statutory dues in arrears as at March 31, 2023 for a period of more than
six months from the date they became payable. b) According to information and explanations
given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, Goods
& service tax and cess which have not been deposited as on March 31, 2023 on account
of disputes. vii
i. According to the information and explanations given to us, the Company did not have
any transactions relating to previously unrecorded income that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
ix.
(a) According to the information and explanations given to us, as also on the basis of
books and records examined by us, the Company has not defaulted in repayment of dues to
financial institution, banks or any lenders. The Company has not taken any loans from the
Government and has not issued any debenture during the year.
(b) According to the information and explanations given to us and on the basis of our
audit procedures, the Company is not declared willful defaulter by any bank or financial
institution or other lender. (c) The According to the information and explanations given
to us and on the basis of the books and records examined by us, the term loans taken
during the year have been applied for the purposes for which those were obtained.
(d) On an overall examination of the financial statements of the Company, funds raised
on short-term basis have, prima facie, not been used during the year for long-term
purposes by the Company. (e) The Company is having no subsidiary or associate companies
and therefore clause 3(ix)(e) and (f) of the order are not applicable to the Company. x.
(a) According to the information and explanations given to us and on the basis of books
and records verified by us, the Company has not raised any money by way of initial public
offer or further public offer including debt instruments during the year. Accordingly
reporting under clause 3(x)(a) of the Order is not applicable.
(b) According to the information and explanations given to us and on the basis of books
and records verified by us, during the year, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully or partly or
optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable. xi.
(a) On the basis of books and records of the Company examined by us and according to the
information and explanation given to us, we report that there has been neither any fraud
by the Company nor any fraud on the Company has been noticed or reported during the year.
(b) According to the information and explanation given to us, no report under
sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as
prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government, during the year and upto the date of this report.
(c) As represented to us by the management, the Company has not received any whistle
blower complaint during the year and upto date of this report. xii. The Company is not a
Nidhi Company. Therefore, the provision of clause 3(xii) of the Order is not applicable to
the Company. xiii. According to the information and explanation given to us and on the
basis of records of the Company examined by us, transaction with related parties are in
compliance with section 177 and section 188 of the Companies Act, 2013, where applicable
and the details of such transactions have been disclosed in the financial statements as
required by the applicable accounting standards.
xiv. (a) According to the information and explanation given to us, in our opinion
theCompany has an adequate internal audit system commensurate with the size and the nature
of its business.
(b) We have considered the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures. xv. Based upon the audit procedures performed and the information
and explanations given by the management, the Company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, the provisions of
clause 3(xv) of the Order are not applicable to the Company. xvi. (a) According to the
information and explanation given to us and on the basis of books and records examined by
us, the Company is not required to be registered under section 45-IA of the Reserve Bank
of India Act, 1934. Hence, reporting under clause 3(xvi)(a), 3(xvi)(b) and 3(xvi)(c) of
the Order is not applicable to the Company.
(b) According to the information and explanation given to us, the Company has no CIC as
part of the Group. xvi
i. The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year. xvii
i. There has been no resignation of the statutory auditors of the Company during the
year. x
ix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due. x
x. There are no unspent amounts towards Corporate Social Responsibility (CSR) on other
than ongoing projects requiring a transfer to a fund specified in Schedule VII to the
Companies Act, 2013 in compliance with second proviso to sub-section
(5) of Section 135 of the said Act. According to the information and explanation given
to us, there is no ongoing project with respect to Corporate Social Responsibility (CSR).
Accordingly, reporting under clause 3
(xx)
(a) and
(b) of the Order is not applicable for the year. xx
i. The reporting under Clause 3
(xxi) of the Order is not applicable in respect of audit of standalone financial
statements. Accordingly, no comment in respect of the said clause has been included in
this report.
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For SHAH & SHAH ASSOCIATES |
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Chartered Accountants |
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Firm Regn. No. 113742W |
| Place : Ahmedabad |
VASANT C.TANNA |
| Date : 30th May, 2023 |
Partner |
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Membership Number: 100422 |
Annexure B to the Independent Auditors Report
of even date on the Financial Statements of DENIS CHEM LAB LIMITED.
Referred to in paragraph 2(f) under the heading ‘Report on Other Legal &
Regulatory Requirement of our report of even date to the financial statements of the
Company for the year ended March 31, 2023.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act").
We have audited the internal financial controls over financial reporting of DENIS
CHEM LAB LIMITED, ("the Company") as of March 31, 2023 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls:
The Companys management is responsible for establishing and maintaining internal
financial controls based on "the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India". These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to Companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the Auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on
"the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India".
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For SHAH & SHAH ASSOCIATES |
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Chartered Accountants |
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Firm Regn. No. 113742W |
| Place : |
Ahmedabad |
VASANT C.TANNA |
| Date : |
30th May,2023 |
Partner |
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Membership Number: 100422 |
+91-9892691696
