Zenith Drugs Ltd Auditor Reports

To, TheMembers,

ZENITHDRUGSLTD. Opinion

WehaveauditedtheaccompanyingstandalonefinancialstatementsofM/SZENITHDRUGSLIMITED("theCompany"), (PAN:AAACZ1475F)(CIN:U24231MP2000PLC014465)whichcomprisetheBalanceSheetasatMarch31,2024,and theStatementofProfitandLoss,statementofchangesinEquityandstatementofcashflowsfortheperiodendedonthat dateandasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas"the FinancialStatements").

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalone financialStatementsgivetheinformationrequiredbytheCompaniesAct,2013("theAct")inthemannersorequiredand giveatrueandfairviewinconformitywiththeAccountingStandardsprescribedundersection133oftheActreadwith the Companies (Accounting Standards) Rules, 2021, as amended, ("AS") and other accounting principles generally acceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2024,itsProfit,changesinequityanditscash flowsfortheyearendedonthatdate.

Basisforopinion

WeconductedourauditofthestandalonefinancialstatementsinaccordancewiththestandardsonAuditingspecified undersection143(10)oftheAct(SAs).OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheauditors responsibilitiesfortheauditofthestandalonefinancialstatementssectionofourreport.Weareindependentofthe CompanyinaccordancewiththecodeofethicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)together withtheindependencerequirementsthatarerelevanttoourauditofthestandalonefinancialstatementsunderthe provisionsoftheActandtherulesthereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewith theserequirementsandtheICAIscodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientand appropriatetoprovideabasisforourauditopiniononthestandaloneFinancialStatements.

Keyauditmatters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificantinourauditofthe standaloneFinancialStatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthe standalonefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopinion onthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobecommunicatedinour report.

TradePayables:

CompanyhasidentifiedandclassifiedTradepayableintoMicroEnterprises,SmallEnterprisesMediumEnterprisesand othertradepayablesasrequiredbyMSMEAct,2006onthebasisofavailableinformationonly.However, interestasper MSMEActforthepaymentsoutstandingformorethan45dayshasnotbeenprovidedfor.

Further,Tradepayablesbalancesaresubjecttoconfirmation.

ThoughtheCompanyhasmaintainedsufficientinformationinrespectofthenon-paymentsinrespectofsupplierswhose inputtaxcreditonGSThasbeenavailed.Butinviewofourtestchecks,wearenotinpositiontofullyverifytheamountin taxcreditreversibleinrespectofcreditorswhoarenotpaidformorethan180days.

TradeReceivables:

Tradereceivablesbalancesaresubjecttoconfirmation.

Others

OneofthefirmBiogenesisCorpapartnershipfirm(Inwhichpromotersandtheirrelativesarehaving67%interest)to whichsaleandpurchaseismadeandtotaldebitbalancestandsRs.192,095,189.00/-. Balanceinrespectofwithheld Amountsaresubjecttoconfirmations.

Companygotlisted inFY2023-24ason27^th February2024andraisedtotaladditionalcapitalofRs.5,14,88,000 (51,48,800*FV-10pershare)and35,52,67,200(51,48,800*69=TransferredtoSecuritypremium).Companyalsoissued bonussharebeforegettinglisted(No.1,16,00,000*10=11,60,00,000).Detailedbifurcationprovidedinnotesoffinancial statement.

OtherInformation BoardofDirectorsReport:

TheCompanysBoardofDirectorsisresponsibleforthepreparationofotherinformationandpresentationofitsreport (herein after called as "Board Report") which comprises various information Required under section 134(3) of the CompaniesAct,2013However,ouropiniononthestandalonefinancialstatementsdoesnotcovertheotherinformation andwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthestandalonefinancialstatements,ourresponsibilityistoreadtheotherinformationand, indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththestandalonefinancialstatementsor ourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;we arerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.

ManagementsResponsibilityfortheFinancialStatements

TheCompanysBoardofDirectorsareresponsibleforthemattersstatedinsection134(5)of theCompaniesAct,2013 ("theAct")withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthe financialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciples generallyacceptedinIndia,includingtheaccountingtheIndianAccountingStandardsprescribedundersection133ofthe Act.Thisresponsibilityalsoincludesmaintenanceofadequateaccountingrecords inaccordancewiththeprovisionsofthe ActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities; selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableand 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 presentationofthestandalonefinancialstatementthatgiveatrueandfairviewandarefreefrommaterialmisstatement, whetherduetofraudorerror.

In preparing the standalone financial statements, management is responsible for assessing the Companysability to continueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasis ofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealistic alternativebuttodoso.TheBoardofDirectorsarealsoresponsibleforoverseeingtheCompanysfinancialreporting process.

AuditorsResponsibilitiesfortheAuditoftheFinancialStatements

A. Ourresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.Inconducting ouraudit,wehavetakenintoaccounttheprovisionsoftheAct;theaccounting andauditingstandardsandmatters whicharerequiredtobeincludedintheauditreportundertheprovisionsoftheactandRulesmadethereunder. B. Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthestandalonefinancialstatementsasawholearefree frommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditorsreportthatincludesouropinion.

Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewith SAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandare consideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomic decisionsofuserstakenonthebasisofthesestandalonefinancialstatements.

C. AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticism throughouttheaudit.Wealso: Identifyandassesstherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraud orerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficient andappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterial misstatementresultingfrom fraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions, misrepresentations,ortheoverrideofinternalcontrol.

Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatare appropriateinthecircumstancesbutnotforthepurposeofexpressinganopinionontheeffectivenessofthe Companysinternalcontrolsystems.

Undersection143(3)(i)oftheCompaniesAct,2013,wearealsoresponsibleforexpressingouropinionon whetherthecompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessof suchcontrols.

Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesand relateddisclosuresmadebymanagement.

Concludeontheappropriatenessofmanagementsuseofthegoingconcernbasisofaccounting and,basedonthe auditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycast significantdoubtontheCompanysabilitytocontinueasagoingconcern.Ifweconclude,thatamaterial uncertaintyexists,wearerequiredtodrawattentioninourauditorsreporttotherelateddisclosuresinthe standalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsare basedontheauditevidenceobtaineduptothedateofourauditorsreport.However,futureeventsorconditions maycausetheCompanytoceasetocontinueasagoingconcern.

Evaluatetheoverallpresentation,structureandcontentofthestandalonefinancialstatements,includingthe disclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsina mannerthatachievesfairpresentation.

Materialityisthemagnitudeofmisstatementsinthestandalonefinancialstatementsthat,individuallyorinaggregate, makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthestandalonefinancialstatements maybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditwork andinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthestandalone financialstatements.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingofthe auditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringour audit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirements regardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethought tobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmost significanceintheauditofthestandalonefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters. Wedescribethesemattersinourauditorsreportunlesslaworregulationprecludespublicdisclosureaboutthematteror when,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausethe adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

OtherMatter

Thestandaloneannualfinancialresultincludestheresultsforthehalfyear ended31^st March24beingthe balancingfigurebetweentheauditedfiguresinrespectofthefullfinancialyearandthepublishedauditedyearto datefiguresforthehalfyearended30^th September2023ofthecurrentfinancialyear.(SubmittedinSEBIAudit report.)

SeparatebankaccountnotopenedtokeepIPOproceedsasrequired.

As per proposed schedule of implementation and deployment of net proceeds mentioned in prospectus There is variation in the utilization of IPO proceeds, the amount allocated towards General Corporate Purposeisusedtowardsworkingcapital(anotherobjectiveinschedule)withoutpassingresolutioninthe BoardMeeting.Detailsofvariationprovidedinnotestofinancialreporting.

MinistryOfCorporateAffairshowingstatusofcompanyasunlisted.

ReportonOtherLegalandRegulatoryRequirements

1.AsrequiredbytheCompanies(AuditorsReport)Order,2020("theOrder")issuedbytheCentralGovernmentofIndia intermsofsection143(11)oftheAct,wegiveinthe"AnnexureA",astatementonthemattersspecifiedinparagraphs3 and4oftheOrder.

2.AsrequiredbySection143(3)oftheAct,basedonouraudit,wereportthat:

(A)Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwere necessaryforthepurposesofouraudit.

(B)InouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromour examinationofthosebooks; (C)Thestandalonebalancesheet,thestatementofProfitandLossandCashFlowStatementdealtwithbythisReportare inagreementwiththebooksofaccount; (D)Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeAccountingStandardsspecifiedunder Section133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014; (E)OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2024takenonrecordbythe BoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2024frombeingappointedasadirectorinterms ofSection164(2)oftheAct; (F)WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompany&theoperating effectivenessofsuchcontrols,refertoourseparateReportin"AnnexureB".Ourreportexpressesanunmodifiedopinion ontheadequacyandoperatingeffectivenessoftheCompanysinternalfinancialcontrolswithreferencetostandalone financialstatements.

(G)WithrespecttotheothermatterstobeincludedintheAuditorsReportinaccordancewithRule11oftheCompanies (AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiven tous: i.TheCompanyhavependinglitigationrelatingtodrugdepartmentandu/s138ofNegotiableInstrumentActbut wehavebeeninformedthatthesewillnotimpactitsfinancialposition; ii.TheCompanyhavelong-termcontractsforsupplyofgoodstogovernmentdepartmentbuttheproperrecordof thesecontractwerenotavailableforverification.Asinformedtousbythesecontractsincludingderivative contractsforwhichiftherewereanymaterialsforeseeablelosses. iii.TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFund bytheCompany. iv.(a)TheManagementhasrepresentedthat,tothebestofitsknowledgeandbelief,otherthanasdisclosedinthe notestotheaccounts,nofundshavebeenadvancedorloanedorwhicharematerialeitherindividuallyorinthe aggregate)havebeenadvancedorloanedorinvested(eitherfromborrowedfundsorsharepremiumoranyother sourcesorkindoffunds)bytheCompanytoorinanyotherperson(s)orentity(ies),includingforeignentities ("Intermediaries"),withtheunderstanding,whetherrecordedinwritingorotherwise,thattheIntermediaryshall, whether,directlyorindirectlylendorinvestinotherpersonsorentitiesidentifiedinanymannerwhatsoeverbyor onbehalfoftheCompany("UltimateBeneficiaries")orprovideanyguarantee,securityorthelikeonbehalfof theUltimateBeneficiaries;

(b)TheManagementhasrepresented,that,tothebestofitsknowledgeandbelief,otherthanasdisclosedinthe notestotheaccounts,nofunds(whicharematerialeitherindividuallyorintheaggregate)havebeenreceivedby theCompanyfromanyperson(s)orentity(ies),includingforeignentities("FundingParties"),withthe understanding,whetherrecordedinwritingorotherwise,thattheCompanyshall,whether,directlyorindirectly, lendorinvestinotherpersonsorentitiesidentifiedinanymannerwhatsoeverbyoronbehalfoftheFunding Party("UltimateBeneficiaries")orprovideanyguarantee,securityorthelikeonbehalfoftheUltimate Beneficiaries;and (c)Basedonauditprocedureswhichweconsideredreasonableandappropriateinthecircumstances,nothinghas cometotheirnoticethathascausedthemtobelievethattheirpresentationsundersubclause(i)and(ii)containany materialmisstatement. v.ThecompanyhasprovideddividendandthesameisapprovedbyBoardofDirectorsofthecompanysubjectto approvalbytheshareholdersinensuingannualgeneralmeeting. vi)CompanyhasusedaccountingsoftwarePERPERPofProgenERPSystem(P)Ltd.formaintainingitsbooks ofaccountwhichhasfeatureofrecordingaudittrail(editlog)facilityandthesamehasbeenoperatedthroughout theyearforalltransactionsrecordedinthesoftwareandtheaudittrailfeaturehasnotbeentamperedwithandthe audittrailhasbeenpreservedbythecompanyasperthestatutoryrequirementsforrecordretention. vii.TheCompanyhasmadeinvestmentinMYMEDPVTLTD.Bypurchasing51%ofitssharecapitalondated 25thMarch2022.Duetoholdingof51%MYMEDPVTLTDissubsidiaryofcompany.

H.WithrespecttothemattertobeincludedintheAuditorsReportunderSection197(16)oftheAct,inouropinionand accordingtotheinformationandexplanationsgiventous,theremunerationpaidbythecompanytoitsdirectorsduringthe currentyearisinaccordancewiththeprovisionsofSection197readwithScheduleVtotheAct.

PLACE:INDORE	FORVDS&CO.
DATED:29.05.2024	CHARTEREDACCOUNTANTS
	FRN004029C

 

(D.S.DHING)

PARTNER

M.No.-075588

UDIN:24075588BKEYUS7330

Annexure‘AToTheIndependentAuditorsReport

(Referredtoinparagraph(1)ofourreportofevendate)under‘ReportonOtherLegalandRegulatory RequirementssectionofourreporttotheMembersofZenithDrugsLimitedofevendate.

TheAnnexurereferredtoinIndependentAuditorsReporttothemembersoftheCompanyonthestandalonefinancial statementsoftheCompanyasonMarch31,2024wereportthat,Tothebestofourinformationandaccordingtothe explanationsprovidedtousbytheCompanyandthebooksofaccountandrecordsexaminedbyusinthenormalcourseof audit,westatethat:

Para3(i) a) (A)Thecompanyhasmaintainedreasonablerecordsshowingfullparticulars,quantitativedetailsandsituation ofPropertyPlantEquipment.

(B)Thecompanyhasmaintainedreasonablerecordsshowingfullparticularsofintangibles. b) TheCompanyhasaprogramofverificationtocoveralltheitemsofPPEinaphasedmannerwhich,inour opinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Pursuanttothe program,certainPPEwerephysicallyverifiedbythemanagementduringtheyear.Accordingtotheinformation andexplanationsgiventous,nomaterialdiscrepancieswerenoticedonsuchverification. c) Accordingtotheinformationandexplanationsgiventous,therecordsexaminedbyusandbasedonthe examinationoftheconveyancedeeds/registeredsaledeedprovidedtous,wereportthat,thetitledeeds, comprisingalltheimmovablepropertiesoflandandbuildingswhicharefreehold,areheldinthenameofthe Companyasatthebalancesheetdate.Inrespectofimmovablepropertiesoflandandbuildingthathavebeen takenonleaseanddisclosedasfixedassetsinthestandalonefinancialstatements,theleaseagreementsareinthe nameoftheCompany.

Basedonourexamination,thelandonwhichbuildingisconstructed,registeredsaledeeddisclosedinThe StandalonefinancialstatementsincludedunderPPEislodgedwithHDFCBankLtd.,HDFCBankHouse, SenapatiBapatMarg,LowerParel,Mumbai 400013sharing paripassuchargeswithPunjabNationalbank, MidCorporateCentre,2ndFloor,C21BusinessPark,RadissonSquare,MR10Road,Indore,Indore,Madhya Pradesh,India,452010forobtainingsecuredloanasattheBalanceSheetdate. d) CompanyhasadoptedhistoricalcostmodelforaccountingforPPEandintangibles,hencenorevaluationhas beencarriedoutbythecompany. e) Accordingtoinformationandexplanationsgiventousandresultofourauditprocedures,inouropinion,no proceedingshavebeeninitiatedorarependingagainstthecompanyforholdinganyBenamipropertyunderthe BenamiTransactions(Prohibition)Act,1988(45of1988)andrulesmadethereunder.

Para3(ii) Inrespectofitsinventories:-

TheinventoryhasbeenphysicallyverifiedbytheManagementduringtheyear.Inouropinionthefrequencyof verification, coverage and procedure of such verification by the management is appropriate. No material discrepancieswerenoticedonsuchphysicalverificationexceptinWIPwhichwasmaterialandrectificationhas beendoneconfirmedbythemasatMarch31,2024andnomaterialdiscrepancieswerenoticedinrespectofsuch confirmations.

TheCompanyhasbeensanctionedworkingcapitallimitsinexcessof 5crore,inaggregate,frombanksonthe basisofsecurityofcurrentassets.TheCompanyhasfiledquarterlyreturnsorstatementswithsuchbanks,which Areinagreementwiththebooksofaccountexceptdifferencereportedasunder:

Quarter Ended Particulars	Amountasper booksofaccounts	Amountasper reportedinthe quarterly statement SubmittedtoPunjab NationalBank	Difference	Reasons
1st Inventoriesand Debtorsless Creditors	314,645,360.00	359,833,780.00	45,188,420.00	Companyhassubmitted excessin WCtoPunjab NationalBank,(inventories anddebtorlesscreditors.)As perunauditedbooksof accounts.
2nd Inventoriesand Debtorsless Creditors	381,347,084.00	377,294,538.00	(40,52,546.00)	Companyhassubmittedshort i n WCto PunjabNational Bank,(inventoriesanddebtor esscreditors.)Asper l unauditedbooksofaccounts.
3rd Inventoriesand Debtorsless Creditors	412,544,427.00	403,624,208.00	(89,20,219.00)	Companyhassubmittedshort i n WCto PunjabNational Bank,(inventoriesanddebtor l esscreditors.)Asper unauditedbooksofaccounts.
4th Inventoriesand Debtorsless Creditors				Insteadof31st March companyhassubmitteddata ason28th March,therefore dueto unavailabilityofdata asonrequireddate weare unabletoreportundersame.
Quarter Ended Particulars	Amountasper booksofaccounts	Amountasper reportedin the quarterlystatement SubmittedtoHDFC Bank	Difference	Reasons
1st Inventoriesand Debtorsless Creditors	314,645,360.00	313,393,408.00	(12,51,952.00)	Companyhassubmitted shortin WCtoHDFCBank, (inventoriesanddebtorless creditors.)Asperunaudited booksofaccounts.
2nd Inventoriesand Debtorsless Creditors	381,347,084.00	377,294,538.00	(40,52,546.00)	Companyhassubmittedshort inWCto HDFCBank, (inventoriesanddebtorless creditors.)Asperunaudited booksofaccounts.
3rd Inventoriesand Debtorsless Creditors	412,544,427.00	403,624,208.00	(89,20,219.00)	Companyhassubmittedshort inWCto HDFCBank, (inventoriesanddebtorless creditors.)Asperunaudited booksofaccounts.
4th Inventoriesand Debtorsless Creditors				Insteadof31st March companyhassubmitteddata ason28th March,therefore duetounavailabilityofdata asonrequireddate weare unable o t reportundersame.

Para3(iii)

TheCompanyhasmadeinvestmentsinitssubsidiaryM/sMyMedPvt.Ltd.Butnotgivenloanandadvances,any loan,anyguaranteeorprovideanysecurityorgrantedanyloanoradvanceinthenatureofloantocompanies, firms,LimitedLiabilityPartnershiporanyotherpartiesotherthansubsidiaryduringtheyear,inrespectofwhich:

TheCompanyhasmadeinvestmentstothetuneofRs.255000.00initssubsidiaryM/sMyMedPvt.Ltd. butnotgivenanyloan,anyguaranteeorprovideanysecurityorgrantedanyloanoradvanceinthenature ofloantocompanies,firms,LimitedLiabilityPartnershiporanyotherparties.

Accordingtotheinformationandexplanationgiventousandbasedonourauditprocedureconductedby uscompanyhasnotgrantedanyloansandadvancesduringtheyearhenceclause3(iii)(b),(c),(d)and(e) arenotapplicabletothecompany.

TheCompanyhasnotgrantedanyloansoradvancesinthenatureofloanseitherrepayableondemandor withoutspecifyinganytermsorperiodofrepaymentduringtheyear.Hence,reportingunderclause3(iii) (f)isnotapplicable.

Para3(iv)

Inouropinionandaccordingtoinformationandexplanationgiventous,theCompanyhascompliedwiththe provisionsunderSections185and186oftheCompaniesAct,2013inrespectofinvestmentsmade.Thecompany hasnotgrantedanyloanorprovidedanysecurityorgrantedanyguaranteeintermsofsection185and186ofthe Act.

Para3(v)

Accordingtoinformationandexplanationsgiventousandbasedonourauditprocedures,theCompanyhasnot acceptedanydepositfromthepublicoramountswhicharedeemedtobedepositswithinthemeaningofsection 73to76oftheactoranyotherrelevantprovisionsofCompanyAct,2013 Para3(vi) Wehavebroadlyreviewedthebooksofaccounts&recordsmaintainedbythecompanyrelatingtomanufacturing offormulations,persontotheordermadebycentralgovernmentforthemaintenanceofcostrecordsundersection 148(1)oftheCompaniesAct,2013andareoftheopinionthatprimafacie,theprescribedrecordshavebeen maintainedandtheprescribedaccountsareintheprocessofbeingmadeup.Wehavehowever,notmadea detailedexaminationoftherecordswithaviewtodeterminingwhethertheyareaccurateorcomplete. Para3(vii) Inrespectofstatutorydues: Inouropinion,thecompanyhasgenerallybeenregularindepositingundisputedstatutorydues,includingGoods andServicestax,ProvidentFund,EmployeesStateInsurance,IncomeTax,SalesTax,ServiceTax,dutyof Custom,dutyofExcise,ValueAddedTax,Cessandothermaterialstatutoryduesapplicabletoitwiththe appropriateauthorities.

TherewerenoundisputedamountspayableinrespectofGoodsandServicetax,ProvidentFund,Employees StateInsurance,IncomeTax,SalesTax,ServiceTax,dutyofCustom,dutyofExcise,ValueAddedTax,Cessand othermaterialstatutoryduesinarrearsasatMarch31,2024foraperiodofmorethansixmonthsfromthedate theybecamepayable.Except:IncomeTaxAY2012-Rs.1,06,070/-,AY2019-Rs11,53,360/-(ALTHOUGH fordemandamountingto11,53,360/-ITOhasconsideredapplicationu/s154ofIncomeTaxActandwaivedthe sameon23/04/2024.

Para3(viii)

Therewerenotransactionsrelatingtopreviouslyunrecordedincomethathavebeensurrenderedordisclosedas incomeduringtheyearinthetaxassessmentsundertheIncomeTaxAct,1961(43of1961).Hencereporting underclause(VI)oftheOrderisnotapplicabletotheCompany.

Para3(ix)

Accordingtotheinformationandexplanationandasverifiedfrombooksofaccounts,theCompanyhasnot defaultedinrepaymentofloansorinterestthereontoanylender.

Thecompanyhasnotbeendeclaredwillfuldefaulterbyanybankorfinancialinstitutionorgovernmentorany governmentauthority.

Accordingtotheinformationandexplanationandasverifiedfrombooksofaccounts,theCompanyhasutilized thesameforthepurposeforwhichtheywereobtained.

OnanoverallexaminationofthefinancialstatementsoftheCompany,fundsraisedonshort-termbasishave, primafacie,notbeenusedduringtheyearforlong-termpurposesbytheCompany.

Accordingtotheinformationandexplanationgiventousandasverifiedfrombooksofaccounts,andanoverall examinationofthefinancialstatementsoftheCompany,wecannotverifydirectnexusoffundborrowedbythe companyandlandedtoitssubsidiary.

TheCompanyhasnotraisedanyloansduringtheyearonpledgeofsecuritiesheldinitssubsidiaries,joint venturesorassociatecompaniesandhencereportingonclause3(ix)(f)oftheOrderisnotapplicable.

Para3(x)

Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasutilizedthe moneyraisedbywayofInitialPublicOfferforthepurposesforwhichtheywereraised,exceptforthe

Natureof thefund raised	Purposesforwhich fundwereraised	TotalAmount Raised/Opening unutilized/Balance (inlakhs)	Amount utilizedfor the purpose (inlakhs)	Unutilized balanceasat Balance SheetDate (inlakhs)	DetailsofDefault (Reason/Delay)	Subsequentl yrectified
Capital	Purchaseof Machinery &Equipmentsfor SettingupNew	1060.99	214.00	846.99	AmountLater receivedinFY 23-24i.einmonth ofMarch24	Willbe utilizedinI qtrof24-25
Capital	Unit Existing Manufacturing BlockUpgradation	210.59	3.44	207.15	AmountLater receivedinFY 23-24i.einmonth ofMarch24	Willbe utilizedinI qtrof24-25
Revenue	GeneralCorporate Purposes	883.97	0.00	883.97	AmountLater receivedinFY 23-24i.einmonth ofMarch24	Willbe utilizedinI qtrof24-25
Revenue	WorkingCapital Requirements	1440.00	2014.11	-574.11	Excess utilizationof workingcapital	-

Duringtheyear,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesor convertibledebentures(fullyorpartlyoroptionally)andhencereportingunderclause3(x)(b)oftheOrderis notapplicable.

Para3(xi)

(a) Duringthecourseofourexaminationofthebooksandrecordsofthecompany,carriedoutinaccordancewiththe generallyacceptedauditingpracticesinIndiaandaccordingtotheinformationandexplanationsgiventous,we haveneithercomeacrossanyinstanceoffraudonorbythecompany,noticedorreportedduringtheyear,norwe havebeeninformedofsuchcasebythemanagement.

(b) Tothebestofourknowledgeandinformationwithusthereisnoinstancesoffraudreportableundersubsection (12)ofsection143oftheCompaniesActhasbeenfilledbytheauditorsinFormADT-4asprescribedunderrule 13ofcompanies(AuditandAuditors)Rules,2014withthecentralgovernment.

(c) Asperinformationandexplanationgivenbymanagementand/orauditcommittee,therewerenowhistleblower complaintsreceivedbythecompanyduringtheyear.

Para3(xii)

InouropinionandaccordingtotheinformationandexplanationsgiventousthecompanyisnotaNidhi Company.Accordingly,paragraph3(xii)oftheorderisnotapplicable.

Para3(xiii)

Accordingtotheinformationandexplanations,alltransactionswiththerelatedpartiesareincompliancewith section177and188ofCompaniesAct,2013whereeverapplicableandthedetailshavebeendisclosedinthe standaloneFinancialStatementsetc.asrequiredbytheapplicableaccountingstandards.

Para3(xiv)

(a) CompanyhasanadequateInternalAuditSystemasInternAuditSystemwasapplicabletocompanyaftergetting listedason27Feb2024.

(b) Wehaveconsideredtheinternalauditreportsofcompanyissuedtilldate,fortheperiodunderaudit. Internal AuditReportDated15.04.2024.

Para3(xv)

Accordingtotheinformationandexplanationsgiventous,inouropinionduringtheyearthecompanyhasnot enteredintoanynon-cashtransactionswithitsdirectorsorpersonasconnectedwithitsdirectorsandhence provisionsofsection192oftheCompaniesAct,2013arenotapplicabletothecompany.

Para3(xvi)

(a) Thecompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934therefore, theprovisionPara3(xvi)(a)oftheOrderisnotapplicabletothecompanyfortheyearunderaudit. (b) TheCompanyhasnotconductedanyNon-BankingFinancialorHousingFinanceactivitiesduringtheyear therefore,theprovisionPara3(xvi)(b)oftheOrderisnotapplicabletothecompanyfortheyearunderaudit. (c) TheCompanyisnotaCoreInvestmentCompany(CIC)asdefinedintheregulationsmadebytheReserveBankof India.Therefore,theprovisionPara3(xvi)(c)oftheOrderisnotapplicabletothecompanyfortheyearunder audit.

(d) TheGrouphasnoCIC.Therefore,theprovisionPara3(xvi)(c)oftheOrderisnotapplicabletothecompanyfor theyearunderaudit.

Para3(xvii)

Thecompanyhasnotincurredcashlossesduringthefinancialyearcoveredbyourauditandintheimmediately precedingfinancialyear.

Para3(xviii)

TherehasbeennoresignationofthestatutoryauditorsduringtheyearandaccordinglyreportingunderPara 3(xviii)oftheOrderisnotapplicable.

Para3(xix)

Accordingtotheinformationandexplanationsgiventousandonthebasisofthefinancialratios,ageingand expecteddatesofrealizationoffinancialassetsandpaymentoffinancialliabilities,otherinformation accompanyingthestandalonefinancialstatements,ourknowledgeoftheBoardofDirectorsandmanagement plansandbasedonourexaminationoftheevidencesupportingtheassumptions,nothinghascometoourattention, whichcausesustobelievethatanymaterialuncertaintyexistsasonthedateoftheauditreportthatcompanyis notcapableofmeetingitsliabilitiesexistingatthedateofbalancesheetasandwhentheyfallduewithinaperiod ofoneyearfromthebalancesheetdate.We,however,statethatthisisnotanassuranceastothefutureviability ofthecompany.Wefurtherstatethatourreportingisbasedonthefactsuptothedateoftheauditreportandwe neithergiveanyguaranteenoranyassurancethatallliabilitiesfallingduewithinaperiodofoneyearfromthe balancesheetdate,willgetdischargedbythecompanyasandwhentheyfalldue." Para3(xx) Accordingtotheinformationandexplanationgiventous,andtherecordsofthecompanyexaminedbyus provisionsofthesection135ofthecompaniesAct,2013isapplicabletothecompany.

Relevant FinancialYear	Amount Identifiedfor spendingon CSRactivities	Unspent Amountout of(b)	Amount transferredto fundspecifies inschedule VIItotheAct	Duedateof transfertothe specified fund	Actualdate oftransferto thespecified fund	Numberof Daysof Delaysif any
(a)	(b)	(c)	(d)	(e)	(f)	(g)
2023-24	10,43,472.00	-	10,45,000.00	31.03.2024	26.03.2024	-

 

FinancialYear	AmountunspentonCorporate SocialResponsibilityactivities "otherthanOngoingProject"	Amounttransferredtofund specifiesinscheduleVII within6monthsfromtheEnd oftheFinancialYear	Amounttransferredafterthe duedate(specifythedateof deposit)
(a)	(b)	(c)	(d)
2023-24	-	-	-

Para3(xxi)

Thereportingunderpara3(xxi)oftheorderisnotapplicableinrespectofauditofstandalonefinancialstatements ofthecompanyaccordinglynocommenthasbeenincludedinrespectofsaidclauseunderthisreport.

PLACE:INDORE

DATED:29.05.2024CHARTEREDACCOUNTANTS

FRN004029C

 

(D.S.DHING)

PARTNER

M.No.-075588

UDIN:24075588BKEYUS7330

FORVDS&CO.

Annexure-"B"totheIndependentAuditorsReport

ReportontheInternalFinancialControlsoverfinancialreportingunderClause(i)ofSub section3ofSection143ofthe CompaniesAct,2013("theAct")WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofZenithDrugs Limited,(PAN:AAACZ1475F)(CIN:U24231MP2000PLC014465)asofMarch31,2024,inconjunctionwithourauditof thestandalonefinancialstatementsoftheCompanyfortheperiod.

ManagementsResponsibilityforInternalFinancialControls

TheCompanysmanagementsresponsibilityforestablishingandmaintaininginternalfinancialcontrolsbasedonthe internalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof internalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbythe Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficient conductofitsbusiness,includingadherencetocompanyspolicies,thesafeguardingofitsassets,thepreventionand detectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationof reliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

AuditorsResponsibility

OurresponsibilityistoexpressanopinionontheCompanysinternalfinancialcontrolsoverfinancialreportingbasedon ouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOver FinancialReporting(the"GuidanceNote")andtheStandardsonAuditingissuedbytheInstituteofCharteredAccountants ofIndiaandthedeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoan auditofinternalfinancialcontrols.BothapplicabletoanauditofInternalFinancialControlsand,bothissuedbythe InstituteofChartedAccountantsofIndia.ThosestandardsandtheGuidanceNoterequirethatwecomplywithethical requirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancial controlsoverfinancialreportingwereestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterial respects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrols systemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancial reportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthat amaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedon theassessedrisk.Theproceduresselecteddependontheauditorsjudgement,includingtheassessmentoftherisksof materialmisstatementinthestandalonefinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion ontheCompanysinternalfinancialcontrolsystemoverfinancialreportingoftheCompany.

MeaningofInternalFinancialControlsoverFinancialReporting

Acompanysinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassurance regardingthereliabilityoffinancialreportingandthepreparationofstandalonefinancialstatementsforexternalpurposesin accordancewithgenerallyacceptedaccountingprinciples.Acompanysinternalfinancialcontroloverfinancialreporting includesthosepoliciesandproceduresthat --- (i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accurately andfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(ii)providereasonableassurancethat transactionsarerecordedasnecessarytopermitpreparationofstandalonefinancialstatementsinaccordancewithgenerally acceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCompanyarebeingmadeonlyinaccordancewith authorisationsofmanagementanddirectorsofthecompany;and(iii)providereasonableassuranceregardingpreventionor timelydetectionofunauthorisedacquisition,use,ordispositionofthecompanysassetsthatcouldhaveamaterialeffect onthestandalonefinancialstatements.

InherentLimitationsofInternalFinancialControlsoverFinancialReporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityof collusionorimpropermanagementofoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnot bedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiods aresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchanges inconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,tothebestofourinformationandaccountingtotheexplanationsgiventous,theCompanyhas,inall materialrespects,anadequateinternalfinancialcontrolsystemoverfinancialreportingandsuchinternalfinancialcontrols overfinancialreportingwereoperatingeffectivelyasatMarch31,2024basedontheinternalcontroloverfinancial reportingcriteriaestablishedbytheCompany considering theessentialcomponentsofinternal controlstated inthe GuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofChartered AccountantsofIndia(ICAI).

(D.S.DHING)

PARTNER

M.No.-075588

UDIN:24075588BKEYUS7330

 

PLACE:INDORE	FORVDS&CO.
DATED:29.05.2024	CHARTEREDACCOUNTANTS
	FRN004029C