To the Members of Mavens Biotech Limited
Report on the Audit of the Ind AS Financial Statements: -
Opinion: -
We have audited the standalone Ind AS financial statements of Mavens Biotech Limited
("the Company"), which comprise the balance sheet as at 31 March 2021, and the
statement of profit and loss (including other comprehensive income), the statement of
changes in equity and the cash flow statement for the year then ended, and notes to the
standalone Ind AS financial statements, including a summary of the significant accounting
policies and other explanatory information (herein after referred to as standalone Ind AS
financial statements).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone Ind AS financial statements give the information
required by the Companies Act, 2013 (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 2021, its losses (including other
comprehensive income), changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion: -
We have conducted our audit in accordance with the Standards on Auditing (SAs)
specified under Section 143(10) of the Act. Our responsibilities under those SAs are
further described in the Auditors Responsibilities for the Audit of the standalone Ind AS
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
standalone Ind AS 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.
Key Audit Matters: -
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone Ind AS financial statements of the current
year. These matters were addressed in the context of our audit of the standalone Ind AS
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be
communicated in our report:
| Key Audit Matters |
How the matter was addressed in our audit |
| Regulatory - Litigations/ Contingencies and claims |
Our procedures included: |
| • The Company is exposed to a variety of different Central and State/Local laws,
regulations and interpretations thereof. In this regulatory environment, there is an
inherent risk of litigations and claims. |
• Review the outstanding litigations against the Company for
consistency with the previous years. Enquire and obtain explanations for movement during
the year. |
| • Consequently, provisions and contingent liability disclosures may arise from
direct and indirect tax proceedings, legal proceedings, including regulatory and other
government/department proceedings, as well as investigations by authorities and commercial
claims. |
• Reading the latest correspondence between the Company and the
various tax/legal authorities and review of correspondence with / legal opinions obtained
by the management, from external legal advisors, where applicable, for significant
matters. |
| • As at 31 March 2021, the Companys contingent liabilities were Rs.356.18 lacs.
Refer Note No. 20. |
• Discussing the status of significant litigation with the
Companys Legal Counsel and other senior management personnel and assessing their
responses. |
| • Management applies significant judgement in estimating the likelihood of the
future outcome in each case when considering whether, and how much, to provide or in
determining the required disclosure for the potential exposure of each matter. This is due
to the highly complex nature and magnitude of the legal matters involved along with the
fact that resolution of tax and legal proceedings may span over multiple years, and may
involve protracted negotiation or litigation. |
• With respect to tax matters, involving our tax specialists, and
discussing with the Companys officers and Legal Counsel, their views and strategies on
significant cases, as well as the related technical grounds relating to their conclusions
based on applicable tax laws. |
| • These estimates could change substantially over time as new facts emerge and
each legal case progresses. |
• Assessing the decisions and rationale for provisions held or for
decisions not to record provisions or make disclosures. |
| • Given the inherent complexity and magnitude of potential exposures across the
Company and the judgement necessary to estimate the amount of provisions required or to
determine required disclosures, this is a key audit matter. |
• For those matters where management concluded that no provisions
should be recorded, considering the adequacy and completeness of the Companys
disclosures. |
Other Information: -
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the financial statements and our auditors report
thereon.
Our opinion on the standalone Ind AS 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 standalone Ind AS financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone Ind AS 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 Financial Statements: -
The Companys Board of Directors is 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,
financial performance (including other comprehensive income), cash flows and changes in
equity of the Company in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards ("IND AS") specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgements 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 standalone Ind AS 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.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the standalone Ind AS financial statements:
-
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS
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 standalone Ind AS 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 standalone Ind AS
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 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 with reference to financial statements 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 standalone Ind AS 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 standalone Ind
AS financial statements, including the disclosures, and whether the standalone Ind AS
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 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 Ind AS 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.
Other Matter: -
The audited standalone financial statements for the year ended 31st March 2021, was
carried out and reported by M/s. KSA & Co., vide their unmodified audit report dated
31st May, 2021, whose report has been furnished to us by the management and
which has been relied upon by us for the purpose of our audit of the standalone financial
statements. Our audit report is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements: -
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of Section 143 of
the Act, we give in "Annexure A", a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, we report, to the
extent applicable 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;
c. The standalone financial statements dealt with by this Report are in agreement with
the relevant books of account;
d. In our opinion, the aforesaid financial statements comply with the IND AS specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors as on 31st
March, 2021, taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2021, from being appointed as a director in terms of
Section 164(2) of the Act.
f. With respect to 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 requirements of section 197(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 remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
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 the standalone 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.
"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under the heading ‘Report on Other Legal and
Regulatory Requirements’ of our Report of even date)
i. In respect of its property plant & equipment:
a. The Company has maintained proper records showing full particulars, including
quantitative details and situation of property plant & equipment;
b. As explained to us, the property plant & equipment have been physically verified
by the management at reasonable intervals. No material discrepancies were noticed on such
physical verification.
c. According to the information and explanations given to us, there are no immovable
properties owned by the Company under property plant & equipment. Accordingly,
paragraph 3 (i) (c) of the Order is not applicable to the Company.
ii. The Company does not have any inventory as at 31st March, 2021.
Accordingly, clause (ii) of paragraph 3 of the Order is not applicable to the Company.
iii. The Company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
Section 189 of the Companies Act, 2013. Accordingly, clauses (iii) (a) to (c) of paragraph
3 of the Order are not applicable to the Company.
iv. According to the information and explanations given to us, the company has not
provided any loans, guarantees or securities which fall under the purview of Section 185
of the Companies Act, 2013. The Company has complied with the provisions of Section 186 of
the Act, in respect of investments made and outstanding at the year- end.
v. In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from the public, in terms of the directives issued
by the Reserve Bank of India and the provisions of Sections 73 to 76 of the Act or any
other relevant provisions of the Companies Act, 2013 and the Rules framed thereunder.
Accordingly, clause (v) of paragraph 3 of the Order is not applicable to the Company.
vi. As informed to us, the maintenance of Cost Records has not been specified by the
Central Government under sub - section (1) of Section 148 of the Companies Act, 2013 in
respect of the activities carried on by the Company. Accordingly, clause (vi) of paragraph
3 of the Order is not applicable to the Company.
vii. In respect of statutory dues:
a. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company is generally regular in depositing
undisputed statutory dues including 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, as applicable to the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid statutory dues, were in arrears as at 31st March,
2021, for a period of more than six months from the date they became payable except Income
Tax dues amounting to ^ 24.49 lacs/-.
b. According to the records of the Company, there are no dues of sales tax or service
tax or duty of customs or duty of excise or value added tax which have not been deposited
on account of any dispute other than the Income Tax. According to the Information and
explanations given to us,
the dues in respect of Income Tax that has not been deposited with appropriate
authorities on account of dispute and the forum where the disputes are pending are given
below:
| Name of the Statute |
Nature of Dues |
Period to which it relates |
Amount in lacs) |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax |
A.Y. 2010-11 |
70.57 |
CIT (Appeal) |
| A.Y. 2011-12 |
153.85 |
| A.Y. 2012-13 |
88.83 |
| A.Y. 2013-14 |
42.93 |
viii. The Company has not raised/ obtained any loans or borrowings from financial
institutions or banks or government or by issue of debentures. Accordingly, paragraph 3
(viii) of the Order is not applicable to the Company.
ix. The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments) and term loans during the year. Accordingly,
paragraph 3 (ix) of the Order is not applicable to the Company.
x. According to the information and explanations given to us and based on audit
procedures performed and representations obtained from the management, we report that no
fraud by the Company or any fraud on the company by its officers or employees has been
noticed or reported during the year under audit.
xi. According to the information and explanations given to us, the Company has paid /
provided managerial remuneration in accordance with the requirements of the provisions of
Section 197 read with Schedule V to the Companies Act, 2013.
xii. According to the information and explanations given to us, the Company is not a
Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not applicable to the
Company.
xiii. According to the information and explanations given to us and based on our
examination of the records of the Company, all transactions with the related parties are
in compliance with Sections 177 and 188 of the Act, where applicable, and details of such
transactions have been disclosed in the financial statements as required by the applicable
Indian Accounting Standards
xiv. During the year under review, the Company has not made any preferential allotment
or private placement of shares or fully or partly convertible debentures. Accordingly,
paragraph 3(xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us, the Company has not
entered into any non-cash transactions with its directors or persons connected to its
directors, hence, provisions of Section 192 of the Companies Act, 2013 are not applicable
to the company. Accordingly, reporting under clause (xv) of Paragraph 3 of the Order is
not applicable to the Company.
xvi. According to the information and explanations given to us, the Company is not
required to be registered under Section 45- IA of the Reserve Bank of India Act, 1934.
"ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under the heading ‘Report on Other Legal and
Regulatory Requirements section of our Report of even date)
Independent Auditors 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 Mavens
Biotech Limited ("the Company"), as of 31st March, 2021 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") issued by the Institute of Chartered Accountants of India
and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013,
to the extent applicable to an audit of internal financial controls. 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 authorisations of management and Directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised 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, to the best of our information and according to the explanations given
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 31st March, 2021, 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.
+91-9892691696
