Bharat Immunological & Biological Corporation Ltd Directors Report.

To

The Members of M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED, Report on the Audit of the Ind-AS Financial Statements We have audited the accompanying Ind-AS financial statements of M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED (“the Company”), which comprise the Balance Sheet as at 31st March 2021, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year ended on that date and a summary of the significant accounting policies and other explanatory information containing in Note No.1 to 34 (hereinafter referred to as “the financial statements”). Adverse Opinion In our opinion and to the best of our information and according to the explanations given to us, because of the significance of the matters described in the basis for Adverse opinion section of our report, wherein effect of basis of qualification are quantified under Para 1 to 25, the aforesaid financial statements do not give the information required by the Companies Act 2013 (“The Act”) in the manner so required and do not give a true and fair view, in conformity with accounting principles generally accepted in India of the state of affairs of the company as at March 31, 2021, the Profit, changes in equity and its cash flow for the year ended on that date.

Basis for Adverse Opinion

1. No fixed assets register was made available to us for verification. Only quantitative physical verification report of the fixed assets, conducted by companys own staff, was provided, which do not have any financial figures which can be matched with the financial statement. Further there are many assets are marked “Damaged Condition” or “Not Found” but no adjustment of the same is provided in the books. Financial effect of the same is not quantifiable.

2. In Depreciation Schedule (Note No.4), corresponding figures of last year do not match with the financial statement of last year, even the sum of net carrying amount as on 31.03.2020 is incorrectly mentioned as Rs.470.16 Lacs instead of Rs. 446.51 Lacs. Further the depreciation chart / calculations / deprecation rate provided to us are also incorrect and not co relating with the figures in Financial Statements. Financial effect of the same is not quantifiable.

3. Capital Work in progress amounting to Rs. 3190.00 Lacs (Last Year Rs. 21.93 Lacs) pertains to incomplete structure pertaining to housing complex building pending for more than 26 years and due to time leg incomplete structure cannot be used now and needs demolition. During the year company made revaluation of the Capital Work in progress and booked a revaluation profit of Rs.3168.07 Lacs. Here, more than 26 years old incomplete temporary structure and land having costing Rs.21.93 Lacs has been valued at Rs.65.00 Lac for construction and Rs.3124.95 Lacs for Land. Further company do not have records which established that the value of land is a part of capital work in progress. Through this revaluation the profits of the company are over stated by Rs.3,168.07 Lacs.

4. As per the IndAS-16, if an assets carrying amount is increased as a result of a revaluation, the increase shall be recognized as other comprehensive income and accumulated/entered on the liabilities side in Equity under the heading Revaluation Reserve, but the company wrongly entered it as retained earnings, in violation of provisions of IndAS-16.

5. As per IndAS-36, the Impairment testing of PPE at the end of each reporting period, is required but no impairment testing was conducted by the company. Financial effect of the same is not quantifiable.

6. In the statement of profit and loss, the company has shown Income Tax Liability at Rs. 881.36 Lacs but as per Note 30 Income Tax Liability is calculated at Rs.1554.82 Lacs. No provision for Income Tax has been made in the books of accounts and as such the same is wrongly clubbed / displayed as retained earnings in Balance Sheet. However actual tax liability should be NIL as no tax is payable on revaluation gains.

7. Company has installed solar plant in the premises and net metering was started from February 2019. Although all elements for identification of leased assets are satisfied but the company has not recognized the Lease assets, Lease liability, depreciation, interest and cash flow for principal lease payment & interest payment. Financial effect of the same is not quantifiable.

8. Inventory movement registers and cost records are not made available to us for our audit and inventory valuation. Financial effect of the same is not quantifiable.

9. Sundry debtors include an amount of Rs. 645.42 Lacs as appearing in Note 31 (h) of the financial statement represent the late delivery charges, pertains to financial year 2013-14 and 2014-15, deducted by the Ministry of Health and Family Welfare (Debtor) which are doubtful about its recoverability and required suitable provision. Further, No details of any late delivery charges / other deductions were made available from financial year 2015-16 onwards. No balance confirmation / party statement and reconciliation are provided for our verification. Financial effect of the same is not quantifiable.

10. As stated in Note No.31 (d) of the financial statements, the company has provided but defaulted in payment of Gratuity liability amounting of Rs. 420.00 Lacs as demanded by the LIC of India. No actuarial valuation of gratuity as at year end, is made. Financial effect of the same is not quantifiable.

11. An amount of Rs. 84.54 Lacs appearing in notes no 7 of non-current tax assets out of which Rs. 77.13 Lacs pertain to the TDS deducted from the F.Y. 2005-06 to 2019-20 for which no assessment details were available with company. Rest Rs. 7.71 Lacs belong to current FY, however in the Form 26AS TDS shown is Rs. 31.18 Lacs, reconciliation of the difference not made available, which leaves the possibility of non-recording of corresponding income also. Financial effect of the same is not quantifiable.

12. No Government Grant is received during the FY 2020-21 by the company. Further no details for previously received grants were made available to us and as such we are unable to comment on the utilization of the same. Again, the company has violated the disclosure requirements for Grants provided in IndAS-20. In note 2.10, company disclosed that Grants are to be routed through profit and loss. However, no such policy has been followed by the company. Grants are neither routed through profit and loss nor considered while preparing cash flow statement. Financial effect of the same is not quantifiable.

13. Company shows Rs. 3,21,106/- as the recoverable from the Mr. Sethi while company has accepted the liability to pay of Rs. 99,000/- before the Honble High Court. Hence profit of the company is overstated by Rs. 4,20,106/-.

14. No provision for known liabilities or disclosure for contingent liability, has been made for pending legal cases. Financial effect of the same is not quantifiable.

15. In note 13, company shows Rs. 689.32 Lacs as Balance with Revenue Authority, which consists of the amount of GST credit and GST TDS. Recoverability of the full amount is doubtful as the same are not matching with the balances appearing on the GST website and no reconciliation exercise has been done. Financial effect of the same is not quantifiable.

16. The company have booked GST input on the provisions made, for which Invoices are still not issued, thus company making short payment of the GST by wrong / illegal booking of Input. Financial effect of the same is not quantifiable.

17. Company follows segment reporting based on its various final products. However, no policy w.r.t to identification of reportable segments along with the basis of allocation of profit/loss or asset/liabilities is made available to us by the company. Further figures reported in segment reporting do not tally / reconcile with figures reported in the Balance sheet of the company. No calculation of figures reported has been provided to us for our verification

18. As per note 6, company has security deposits amounting to Rs. 44.84 Lacs, but no details of the same is available with the company as such these amounts are doubtful of recovery. Thus, needs necessary provision for the same. Thus, the profits of the company are over stated by Rs.44.84 Lacs.

19. Cash flow statement is not made properly, it contains mathematical calculation error and its internal figures do not tally with each other. Further, it also contains revaluation gain on capital work in progress, which overstated the operating cash flow by Rs. 3168.07 Lacs and thus making negative operating cash flow of Rs. 1990.38 to positive operating cash flow of Rs. 1181.83 Lacs.

20. Many figures have been differently grouped in comparison to the last year, but corresponding figures are not regrouped accordingly. Further no reason for doing so has been disclosed. Even payments to auditor are merged with professional & legal expenses.

21. In Note 31(d) under head “Details of unfunded post retirement defined benefit obligation”, closing value are written in opening balance column and date is also wrongly marked as 1st April 2021 instead of 1st April 2020.

22. No calculation of figures reported in financial risk framework (Note-32) has been provided to us for our verification.

23. The recoverability / calculations of Deferred Tax Assets and MAT credit are not verifiable due to non-availability of Income Tax Calculations / assessment order of past years. Financial effect of the same is not quantifiable.

24. Under the Head “Other Income” (Note-24), company has written back certain liabilities of earlier years as prior period adjustments amounting to Rs. 59.48 Lacs, but no documentary evidence for the same has been made available for our verification. Thus, the company has overstated its income by Rs.59.48 Lacs.

25. Financial Statements are not prepared / presented / displaying the requisite details in compliance of provisions of the Companies Act, 2013 and applicable accounting standards. Even in Note 1, date of approval of the financial statements by Board of Directors of the company is mentioned as 31.03.2021 though no meeting was held on that date.

Further, no minutes of Board and various committees were provided to us for our review / verification of various decisions. We have conducted our audit of the financial statements in accordance with the standards on Auditing as specified under section 143(10) of the Act (SAs). 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 to the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that our adverse audit opinion on the financial statements is based on sufficient and appropriate audit evidences gathered by us.

Emphasis of Matters

1. Non -furnishing of Information in respect of Micro, Small and Medium Enterprises. Reference in this regard is drawn to Note no. 31 (g).

2. Attention is drawn to note no 31(f), Company had received the various grants from the Government of India in previous years. These grants should be utilized accordingly with line of its object as defined in the sanction order. But the significant amounts are laying unspent as on 31st March 2021, even after the expiry of the scheduled completion date.

3. In note 8, Company books Rs. 1568.09 Lacs as deferred tax assets and Rs. 441.17 Lacs as MAT credit. As per IND-AS and prudence concept deferred tax assets and MAT credit is to be recognized only to the extent, the same can be utilized in the coming years. The management is of the view that due to project available, it has become reasonable that sufficient taxable income will be available against which deferred tax assets can be realized. However, the Income Tax records were not made available to us for verification of correctness of the unspent MAT credit.

4. Balance confirmation from the debtors and creditors were not obtained by the company.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the 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 Matter Auditors Response
Revaluation of Capital Work in Progress
The company during the year revalue the Capital Work in Progress and booked the revaluation gain amounting to Rs. 3168.07 Lacs. Our audit plan / procedures, amongst others, include the following:
We identified Revaluation of Capital Work in Progress as a key audit matter because of its nature and its effect on the financial position of the company having an inherent risk of misstatement. • Obtaining an understanding of the process relating to Identification and requirements of Revaluation of Capital Work in Progress.
• Assessing the appropriateness of the Companys accounting policy for Revaluation of assets and compliance of the policy with applicable accounting standards;
• Obtaining an understanding of the valuation process performed by the external valuer in valuation of the Capital WIP.
However, we could not obtain any information and explanation from the company except the valuation report of M/s Global (I) International, Delhi. The provisions of IndAS-16 for revaluation are also not complied.

 

Valuation of Inventories Refer note 9 to the financial statements.
We identified valuation of inventories as a key audit matter as it involves significant management judgments in determining the carrying value of stock. Our audit plan / procedures, amongst others, included the following:
• Assessing the appropriateness of Companys accounting policy for valuation of stock and compliance of the policy with the requirements of the prevailing accounting standards;
• Obtaining an understanding of internal controls over valuation of stock and testing, on a sample basis, their design, implementation and operating effectiveness;
• Obtaining an understanding and assessing reasonableness of the managements determination of net realizable value (NRV) and the key estimates adopted, including future selling prices and costs necessary to make the sales and their basis; and
• Comparing the NRV, on a sample basis, to the cost of stock-in-trade to assess whether any adjustments are required to the value of stock in trade in accordance with the accounting policy.
However, company has not provided any stock valuation and movement records. Further the details provided are also remained un reconciled / unexplained. The provisions of IndAS-2 for inventory are also not complied. However, in compliance to the audit observation made in the FY 2019-20, company has written off the stock of Rs. 662.37 Lacs.

Information other than the Financial Statements and Auditors Report thereon

The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, 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 during the course of our 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. However, no such report / information was made available to us for our reading and comparison and as such we have nothing to report in this regard.

Managements Responsibility for the Financial Statements

The Companys Management / Board of Directors is responsible for the matters stated in Section 134(5) of the Act, with respect to preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance, change in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India. 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 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. The Board of Directors is 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 controls 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 financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the 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 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 provided 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 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 Section 143(3) of the Act, based on our audit we report that:

a) We have sought all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit, however, as reported on relevant places, certain information was not made available.

b) In our opinion, proper books of account as required by law have NOT been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are NOT in agreement with the relevant books of account.

d) In our opinion, the aforesaid financial statements in general do NOT comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) Being the government company, Section 164 (2) of the Companies Act, 2013 is not applicable on the company.

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 A”.

g) Being the government company, Section 197 (16) of the Companies Act, 2013 is not applicable on the company.

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, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has not provided us the records of pending litigations, for our verification. Further, the company has not disclosed any impact of pending litigations on its financial position in its financial statements and accordingly we are unable to comment on that.

ii. The Company did not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

iii. The company was not required to transfer any amount to the Investor Education and Protection Fund.

2. 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 "B", a statement on the matters specified in paragraphs 3 and 4 of the Order.

3. As required by the Comptroller and Auditor General of India through directions issued under section 143(5) of the Act, we give a report in the attached Annexure “C”.

For Rasool Singhal & Co.
Chartered Accountants
(FRN: 500015N)
Date: September 23, 2021
Place: Delhi
UDIN: 21071615AAAABD1650 CA Kanti Kumar Gupta
Partner
M No. 071615

“Annexure- A” to the Independent Auditors Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED of even date)

Report on the Internal Financial Controls with reference to financial statements 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 M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION 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 Board of Directors of the Company 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 respective 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 internal financial controls over financial reporting of the Company 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 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 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.

Disclaimer of Opinion

According to the information and explanation given to us, the Company has not established its internal financial control over financial reporting on criteria based on or 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. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2021. We have considered the disclaimer reported above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the Company, and the disclaimer does not affect our opinion on the financial statements of the Company.

For Rasool Singhal & Co.
Chartered Accountants
(FRN: 500015N)
Date: September 23, 2021
Place: Delhi
UDIN: 21071615AAAABD1650 CA Kanti Kumar Gupta
Partner
M No. 071615

“Annexure- B” to the Independent Auditors Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED of even date). Based upon the information and explanations furnished to us and the books and records examined by us in the normal course of our audit, we report that:

(i) (a) No fixed assets records, containing Date of Purchase, Description of Asset, Class of Asset, Quantity, Cost of Purchase, Situation of Fixed Assets etc., have been provided to us for our verification.

(b)As reported by the management, the physical verification of its fixed assets is conducted by its own staff on yearly basis and various assets are marked as “Not found or not usable” but the effect of the same are not entered in the books of accounts. Further the list of fixed assets, for which physical verification has been conducted, is not matched / co-related with fixed assets figures in Financial Statements.

(c)As explained to us and as per the information given to us there are no title deeds in the name of company for the immovable property are available instead company was having the allotment letters dated 28th May, 1992 issued by the Government of India, Ministry of Science and Technology-Department of Bio Technology in the name of company. Details given below:

(ii) During the year, no physical verification of Inventory is reported by the Management.

Nature of Immovable property (i.e. Land / Building etc.) (Freehold / Leasehold) Available Documents
Land at BIBCOL, OPV Plant Village Chola, Bulandshahr 50 Acres Freehold Only allotment order dated 28th May, 1992, No Title Documents
Land at Residential Colony, Village Gangerwa Bulandshahr 9.43 Acres (10 Acres Less 0.57 Acres compulsorily acquired) Freehold Only allotment order dated 28th May, 1992, No Title Documents

(iii) As reported by the Management, the Company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register-maintained u/s 189 of the Act. Further, there is no balance outstanding for loans granted, if any, for the earlier years. In view of above, provisions of clause (iii) (a) to (c) of the order are not applicable.

(iv) According to the information and explanations given to us, no loans, investments, guarantees and securities have been given by the company to concerns which are covered under section 185 and 186 of the Companies Act, 2013.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 73 to 76 and other relevant provisions of the Companies Act, 2013 and rules framed there under. However, there are outstanding balances of sundry creditors / security deposits which are not paid for years, which may be considered as Deemed Deposit as per the provisions of Companies Act, 2013 and rules framed there under.

(vi) The maintenance of cost records, specified by the Central Government under subsection (1) of section 148 of the Companies Act, 2013, is applicable to the company. However, no such cost records and accounts were made available to us for our verification, as such we are unable to comment on the maintenance of such cost records.

(vii) The Management of the company could not provide us necessary documents / explanations to verify the statutory dues. Thus:

(a) We are unable to comment whether the Company is 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 to the appropriate authorities or not.

(b) We are unable to comment whether the Company has any disputes which have resulted into demands under the income tax or sales tax or service tax or duty of customs or duty of excise or value added tax, GST etc., which have been not been deposited by the company.

(viii) The Management of the company could not provide us the terms of sanction and other necessary documents / explanations to verify whether the company has defaulted in repayment of loans or borrowing to a financial institution, bank, Government. As such, we are unable to comment on such default, if any.

(ix) According to the information and explanations given to us, the Company has not raised any money out of initial public offer or further public offer (including debt instruments) and term loans.

(x) No fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year by the Management.

(xi) Being the Government Company, provisions of section 197 read with Schedule V to the Companies Act, 2013 do not apply on the company.

(xii) The Company is not a Nidhi Company; thus, this para is Not Applicable.

(xiii) According to the information and explanations given to us, transactions with the related parties are in compliance with Sec 177 and 188 of the Act, though in the absence of relevant documents we are unable to verify the same. Further, no details of such transactions have been disclosed in the financial statements, as required by the applicable accounting standards.

(xiv) The company has not made any preferential allotment or private placement of shares or convertible debentures during the year.

(xv) According to the information and explanations given to us, the company has not entered into any non-cash transactions with the Directors or persons connected with it during the year.

(xvi) The company is not required to get itself registered under Section 45-IA of the Reserve Bank of India, Act 1934.

For Rasool Singhal & Co.
Chartered Accountants
(FRN: 500015N)
Date: September 23, 2021
Place: Delhi
UDIN: 21071615AAAABD1650 CA Kanti Kumar Gupta
Partner
M No. 071615

Annexure ‘C to the Independent Auditors Report

Directions indicating the areas to be examined by the Statutory Auditors during the course of audit of annual accounts of M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED for the year 2020-21 issued by the Comptroller & Auditor General of India under Section 143 (5) of the Companies Act, 2013.

Sr. No. Area Examined Observations/Findings
1 Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated. The Company has a system to enter the accounting transactions manually which are processed through IT system by Tally Software.
Further seven different set of account books are maintained on software and the same are not integrated, though no accounting transactions processed outside IT systems. All the seven Trial Balances are merged together manually to Page 32 of 69 prepare the Financial Statements. Further the accounting software permits back dating and amendment in data entered without any audit trail, which cause doubt on data integrity.
2 Whether there is any restructuring of an existing loan or cases of waiver / write off of debts / loans / interest etc. made by a lender to the company due to the companys inability to repay the loan? If yes, the financial impact may be stated. There is no case of restructuring / waiver/ write off of debts / loans / interest reported by the management and / or observed during our audit of the year. However, due to situation caused by Covid-19 pandemic, the bank has allowed concessions / fresh funding as per their approved policies.
3 Whether funds received / receivable for specific schemes from Central / State agencies were properly accounted for / utilized as per its terms and condition? List the cases of deviations. During the year under consideration, as reported by the management, there is no fund received / receivable under any specific schemes of Central / State agencies. Further no such case observed during our audit.
However, no details / documents have been provided by the company for the funds received/receivable for specific schemes from Central/State agencies, for earlier years. Though it is explained that these funds were properly accounted for/utilized as per its terms and conditions except as explained in Note No.- 31(f) to Notes of Accounts.

 

For Rasool Singhal & Co.
Chartered Accountants
(FRN: 500015N)
Date: September 23, 2021
Place: Delhi
UDIN: 21071615AAAABD1650
CA Kanti Kumar Gupta
Partner
M No. 071615