To the Members of MANGALAM DRUGS AND ORGANICS LIMITED Report on the
Audit of the Financial Statements Opinion
We have audited the standalone financial statements of Mangalam Drugs
and Organics Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2023, the statement of Profit and Loss, (statement of changes in equity) and
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 Ind AS standalone financial statements give the
information required by the Companies Act, 2013, as amended ("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 31
March, 2023 its Profit including other comprehensive income, its cash flows and the
changes in equity 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 Act. 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 Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Emphasis of Matter Paragraph
1. Balances of Trade Receivables, Trade Payables, Loans and advances
are subject to confirmation and reconciliation. Management has confirmed that the final
impact upon reconciliation would not be material.
2. The company has acquired and taken possession of the vehicles which
were in the name of Director and erstwhile Director of the Company.
Our opinion is not modified in respect of these . matters
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment,wereofmostsignificance financialstatements of the current ourauditofthe period.
These matterswereaddressed financialstatements as a whole and in forming our opinion
thereon, and we thecontextofourauditofthe do not provide a separate opinion on these
matters.
We have determined that there are no key audit matters to be
communicated in our report for the year ended 31st March, 2023.
Information other than the Financial Statements and Auditors
Report thereon
The Companys Board of Directors is 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 report in this regard.
Managements Responsibility for the Standalone Financial
Statements
The Companys Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial position, financial
performance, (changes in equity) and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the accounting Standards
specified under section 133 of theAct. 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, management is 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 management 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:
1. 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.
2. Obtain an understanding of internal 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.
3. Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
4. 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.
5. 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.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant findings,
including any significant deficiencies in internal control that we identify during our
audit. We 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 the 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
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 Companies Act, 2013, we give in the "Annexure A" a
statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
As required by Section 143(3) of the Act, we report that: a) We have
sought and 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 it
appears from our examination of those books adequate for the purposes of our audit. c) The
Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by
this Report are in agreement with the books of account. d) In our opinion, the aforesaid
standalone financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015.
e) On the basis of the written representations received from the
directors as on 31st March, 2023 taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2023 from being appointed as a director in
terms of Section 164 (2) of theAct. 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". g) With respect
to the other matters to be included in the Auditors Report in accordance with the
requirement of section197(16) of the Act as amended, in our opinion and to the best of our
information and according to the explanations given to us, the Company has paid
remuneration to its directors during the year. h) With respect to the 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 the impact of pending
litigations on its financial position in its Financial Statements refer note no.41. ii.
The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses. iii. There are no amounts which are 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 advance or loaned
or invested (either from borrowed funds or share premium or any other source or kind of
fund) 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 person 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 representation under sub-clause
(i) and (ii) of the Rule 11 (e), as provided under (a) and (b) above, contain any material
misstatement. v. The Company has not proposed any final dividend in the previous year, in
accordance with section 123 of the Act, as applicable. vi. Proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 for maintaining books of account using accounting
software which has a feature of recording audit trail (edit log) facility is applicable to
the Company with effect from April 1, 2023, and according, reporting under Rule 11(g) of
the Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year
ended March 31st, 2023.
For V.S.SOMANI and Co.,
Chartered Accountants F. R. No.117589W
|
Sd/- |
|
Vidyadhar Somani |
| Place: Mumbai |
Proprietor |
| Date: May 30, 2023 |
MembershipNo.102664 |
|
UDIN: 23102664BGUQHG1336 |
The Annexure A referred to in Independent Auditors Report to the
members of the Company on the financial statements for the year ended
31 March 2023 we report that: i. (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
Intangible assets.
(b) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the Company has conducted
physical verification of major fixed assets of its property, plant and equipment. In this
verification there was no material discrepancies were notice.
(c) The title deeds of all the immovable properties (other than
properties where the Company is the Lessee) and the lease agreements are duly executed in
favour of the lessee disclosed in the financial statements are held in the name of the
Company.
(d) The Company has not revalued its Property, plant and equipment
(including Right-of-use assets) or Intangible assets or both during the year. (e) No
proceedings initiated or pending against the Company for holding any benami property under
the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder. ii.
(a) Physical verification of inventory has been conducted at reasonable intervals by the
management in our opinion, the coverage and discrepancies of 10% or more in
physicalprocedure of such verification of inventory were reported by them.
(b) The Company has been sanctioned working capital limits in excess of
five crore rupees, from the banks and financial basis of security of current assets; the
quarterly returns or statements filedby the Company with such banks and financial are not
in agreement with the books account of the Company.
(Amount In Lacs)
| Quarter |
Statements filed to bank |
As per Books |
Difference |
|
|
Stock (a) |
Debtors (b) |
Stock (c) |
Debtors (d) |
Stock (a-c) |
Debtors (b-d) |
| Q1 |
14,619.73 |
5,892.44 |
13,610.01 |
4,749.91 |
1,009.71 |
1,142.54 |
| Q2 |
15,167.73 |
6,664.99 |
13,927.80 |
6,592.58 |
1,239.93 |
72.41 |
| Q3 |
16,222.75 |
3,983.47 |
15,014.69 |
4,256.12 |
1,208.06 |
(272.65) |
| Q4 |
13,612.68 |
5,625.21 |
13,269.57 |
4,653.29 |
343.10 |
971.92 |
iii. During the year, the Company has not made 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.
Hence reporting under clause iii (a) to (f) is not applicable. iv. During the year, the
Company has not given any loans, guarantees, and securities and invested any amount. Hence
reporting under these clause related with provisions of section 185 and 186 of The
Companies Act, 2013 are not applicable. v. The Company has not accepted any deposits or
amounts which are deemed to be deposits from the public. Hence the directions issued by
Reserve Bank of India in relation to sections 73 to 76 or any other relevant provisions of
the Companies Act and the rules made thereunder are not applicable. vi. We have broadly
reviewed the books of account maintained by the Company pursuant to the order made by the
Central Government for maintenance of cost records prescribed under sub-section 1 of
section 148 of the Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have, however not made a detailed
examination of the said records with a view to determine whether they are accurate or
complete. vii. According to the information and explanations given to us and the records
of the Company examined by us, in our opinion, (a) 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 customs, duty of excise,
value added tax, cess and any other statutory dues to the appropriate authorities Further
no undisputed amounts payable in respect of provident fund, employee state insurance,
income tax, sales tax, service tax, GST, duty of customs, duty of excise, value added tax,
cess and any other material statutory dues were in arrears as at 31 March 2023 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 on
the basis of our examination of the records of the Company, there are no statutory dues
relating to Provident Fund, Employees State Insurance, or Cess or other statutory dues,
which have not been deposited with the appropriate authorities on account of any dispute.
The following dues of Excise duty, income tax and Securities and Exchange Board of India
Act, 1992 have not been deposited by the Company on account of dispute:
| Name of the statute |
Nature of Dues |
Amount (Rs. In Lacs) |
Period to which the amount relates |
Forum where dispute is pending |
| The Income-tax Act, 1961 |
Income Tax |
2.20 |
2017-18 |
Commissioner of Income tax Appeals |
viii. During the year, there are no transactions recorded in the books
of account which have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of 1961). ix. (a) During the year, the
Company has not defaulted in repayment of loans or other borrowings or in the payment of
interest thereon to any lender.
(b) During the year, the Company has not been declared a wilful
defaulter by any bank or financial institution or any other lender. (c) During the year,
term loans availed from banks were applied for the purpose for which the loans were
obtained.
(d) During the year, funds raised on short term basis have not been
utilised for long term purposes.
(e) The Company does not have any subsidiaries, associates or joint
ventures. Hence reporting under clause ix (e) and (f) of the Order is not applicable. x.
(a) During the year, the Company has not raised any moneys by way of initial public offer
or further public offer (including debt instruments). Accordingly, clause 3(x) (a) of the
Order is not applicable.
(b) During the year, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures. Hence
reporting is not applicable xi. (a) As per information and explanation given to us no
fraud by the Company and on the Company has been noticed by the management and reported to
us. Hence reporting under clause xi (a) and (b) is not applicable.
(c) We have taken into consideration whistle-blower complaints received
by the Company during the year while determining the nature, timing and extent of audit
procedure. xii. In our opinion the Company is not a Nidhi Company. Accordingly reporting
under clause 3(xii)(a), (b) and (c) of the Order is not applicable xiii. As per
information and explanation given to us all transactions with the related parties are in
compliance with sections 177 and 188 of Companies Act and the details have been disclosed
in notes to the financial statements, as required by the applicable accounting standards.
xiv. (a) The Company has an internal audit system which has been conducted by the
Independent Chartered Accountants which is in commensurate with the size and nature of its
Business.
(b) The internal audit reports of the Company issued by him, till date
of the audit report for the period under audit have been considered by us. xv. The Company
has not entered into any non-cash transactions with directors or persons connected with
him, as per referred to in section 192 of the Act. xvi. (a) The Company is not required to
be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,
clause 3(xvi) (a) of the Order is not applicable. (b) The Company is not required to be
registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause
3(xvi) (b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in
the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi) (c) of the
Order is not applicable. (d) According to the information and explanations provided to us
during the course of audit, the Group does not have any CIC. Accordingly, the requirements
of clause 3(xvi) (d) are not applicable. xvii. The Company has not incurred any cash
losses in the current and in the immediately preceding financial year. xviii. The
Statutory Auditor has not resigned during the previous year.
xix. On the basis of the financial ratios, ageing and expected dates of
realisation of financial assets and payment of financial liabilities, other information
accompanying the financial statements, our knowledge of the Board of Directors and
management plans and based on our examination of 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 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 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 are due.
xx. (a) The Company has complied the provisions under section 135 of the Act. Hence there
are no unspent amount to a Fund specified in Schedule VII to the Act. (b) No amount
remaining unspent under sub-section (5) of section 135 of the Act, pursuant to any ongoing
project.
For V.S.SOMANI and Co.,
Chartered Accountants F. R. No.117589W
|
Sd/- |
|
Vidyadhar Somani |
| Place: Mumbai |
Proprietor |
| Date: May 30, 2023 |
MembershipNo.102664 |
|
UDIN: 23102664BGUQHG1336 |
Annexure - B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial
reporting of Mangalam Drugs and Organics Limited. ("The Company") as of 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
(‘ICAI).These responsibilities include the design, implementation and
maintenance of adequate internal financialcontrols 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 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 Act 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 financialreporting 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 judgment, 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 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
controloverfinancialreporting 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 and to the best of our information and according to the
explanations give to us, 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 31 March 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.
For V.S.SOMANI and Co.,
Chartered Accountants F. R. No.117589W
|
Sd/- |
|
Vidyadhar Somani |
| Place: Mumbai |
Proprietor |
| Date: May 30, 2023 |
MembershipNo.102664 |
|
UDIN: 23102664BGUQHG1336 |
+91-9892691696
