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Advik Laboratories Ltd.

BSE: 531686 Sector: Health care
NSE: N.A. ISIN Code: INE537C01019
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NSE 05:30 | 01 Jan Advik Laboratories Ltd
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OPEN 1.52
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VOLUME 719
52-Week high 1.52
52-Week low 1.01
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Advik Laboratories Ltd. (ADVIKLABS) - Auditors Report

Company auditors report

To the Members of Advik Laboratories Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of ADVIK LABORATORIES LIMITED(“The Company”) which comprise the Standalone Balance Sheet as at March 312021 and the Standalone Statement of Profit and Loss (including other comprehensiveincome) Standalone Statement of Changes in Equity and Standalone Statement of Cash Flowsfor the year then ended and notes to the standalone financial statements including asummary of the significant accounting policies and other explanatory information(hereinafter referred to as “the standalone financial statements”).

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matters described in the “Basis forQualified Opinion” section below the aforesaid Financial Statements give theinformation required by the Companies Act 2013 (“the Act”) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended (“Ind AS”) and other accounting principlesgenerally accepted in India of the state of the affairs of the Company as at 31st March2021 and the profit and total comprehensive income changes in equity and its cash flowsfor the year ended on that date.

Basis for Qualified Opinion

a) Due to default in payments of bank loans the company's accounts have beenclassified as Non-Performing Assets (NPA) by the bank. Indian Overseas Bank has notcharged interest on Cash credit & Term Loan Limits. During the period under review noprovision has been made for such interest in the books of account of the company and tothat extent bank's loan liability and total loss is understated by Rs. 924.63 lacs pluspenal charges that the bank may charge. The amount disclosed in the Financial Statementsis subject to confirmation reconciliation and adjustments if any.

b) The company had recorded the cost of the investment at the face value of the equityshares issued and had not determined the fair value as required by Ind AS. The shares werenot made available for physical verification. Hence we are unable to comment upon thephysical existence and express an opinion on the value of investment recorded.

c) The stock of raw material and work in progress has been valued at cost price. In thecurrent year there has been no production it may have impact on profitability to theextent of its cost less realizable amount if any.

d) The Capital work in Progress has been stalled. The physical conditions of theseassets under construction require technical evaluation to determine impairments or writeoffs if any. However in view of the management the suspension is temporary in nature andassets under construction are not obsolete and the company will be able to resumeconstruction activities in near future and accordingly no provision is required.

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the independence requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ourqualified opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

In addition to the matters described in the Basis for Qualified Opinion section abovewe have determined there are no other matters to communicate in our report.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 (“the Act”) with respect to the preparation ofthese Financial Statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2015.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government in terms of Section 143(11) of the Act we give in“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Companies (Indian Accounting Standards) Rules2015 as amended;

e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure B”. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

3. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Financial Statements- Refer Note No. 24 to the Financial Statements;

ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses and;

iii. According to the information and explanations given to us there was no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company

For M/s. RMA & Associates LLP
Chartered Accountants
Firm Regn .No. 000978N/N500062
Sd/-
Place: New Delhi (Amit Jain)
Dated : 30th June 2021 Partner
Membership No. 503109
UDIN: 21503109AAAABM6834

ANNEXURE “A” TO THE INDEPENDENT AUDITORS'

The Annexure referred to in our report of even date

1. In respect of Fixed Assets of the Company:

(a) Accordingly to the information and explanations given to us the company hasmaintained proper records showing full particulars including quantitative details andsituation of the fixed assets.

(b) Accordingly to the information and explanations given to us the fixed assets ofthe company have been physically verified by the management at reasonable intervals and nomaterial discrepancies were noticed on such verification as compared to books of accounts.

(c) Accordingly to the information and explanations given to us and on the basis ofexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. According to the information and explanation given to us Physical verification ofinventory has been conducted at reasonable intervals by the Management of the Company andno material discrepancies were noticed on physical verification conducted by themanagement

3. Accordingly to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 during the year. Therefore the provision of clause (iii) of Para 3 ofthe Companies (Auditor's Report) Order 2016 is not applicable to the company.

4. In our opinion and according to the information and explanations given to us theCompany has not given any loans guarantees and security to any Director or to any otherperson in whom Director is interested in compliance with the section 185 & 186 of theAct.

5. The company has not accepted any deposits. Therefore the provision of clause (v) ofPara 3 of the Companies (Auditor's Report) Order 2016 is not applicable to the company.

6. As per notification no. F.No.1/40/2013-CL-V dated 31.12.2014 maintenance of costrecords has not been prescribed by the Central Government U/s. 148(1) of the CompaniesAct 2013.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account of Company the company is generally regular indepositing undisputed statutory dues including provident fund employees state insuranceincome-tax service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues as applicable with the appropriate authorities.

According to the information and explanation given to us no other undisputed amountsare payable on account of provident fund employees state insurance income-tax servicetax duty of customs duty of excise value added tax as at 31.03.2021 for a period ofmore than six months from the date they become payable.

(b) According to the information's and explanations given to us there are no pendingdues in respect of Sales Tax Wealth Tax Service Tax Value Added Tax Duty of Customsand Cess which has not been deposited on account of any dispute.

8. According to information & explanation given to us and based on the documentsand records produced before us the company is not regular in depositing of its dues withtheir banker Indian Overseas bank due to that banker has considered the company accountas NPA.

Sr. No. Principal due Amount in INR Nature of Credit Facility Remarks
1. 374.99 Lacs Term Loan Both Term Loans & Cash Credit Accounts are become NPA since 01.07.2014.
2. 83.65 Lacs Cash Credit Limit Due to that interest amount of Rs. 924.63 on Term Loan & CC limits as on 31.03.2021 has not been accounted for.

9. According to the information & explanation given to us and the records of theCompany examined by us the Company has not raised any money by way of initial public offeror further public offer (including debt instruments) or term loans during the year.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year under audit nor have we been informed of any suchcase by the Management.

11. No Managerial Remuneration is paid by the company during the year hence provisionsof Section 197 read with Schedule V to Companies Act 2013 are not applicable.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.

Therefore the provisions of clause (xii) of Para 3 of the Companies (Auditor's Report)Order 2016 are not applicable to the Company.

13. Based on our audit procedures and according to the information and explanationsgiven to us transactions with the related parties are in compliance with section 177 and188 of Act where applicable and the details have been disclosed in the notes to thestandalone Ind AS financial statements as required by the applicable accountingstandards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with Directors or persons connected with him. Therefore the provisions ofclause (xv) of Para 3 of the Companies (Auditor's Report) Order 2016 are not applicableto the Company.

16. According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For M/s. RMA & Associates LLP
Chartered Accountants
Firm Regn .No. 000978N/N500062
Sd/-
Place: New Delhi (Amit Jain)
Dated : 30th June 2021 Partner
Membership No. 503109
UDIN: 21503109AAAABM6834

ANNEXURE “B” To THE INDEPENDENT AUDITOR'S REPORT OF “ADVIK LABORATORIESLIMITED” FOR THE YEAR ENDED 31st MARCH 2021.

Report on the internal Financial Controls under Clause (i) of Sub-Section 143 of theCompanies Act 2013.

Report on the Internal Financial Controls

We have audited the Internal Finance Controls over financial reporting of “ADVIKLABORATORIES LIMITED” (the Company) as of 31st March 2021 in conjunctionwith our audit of the Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls.

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Controls overFinancial Reporting issued by the institute of Chartered Accountants of India (ICAI) Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits the prevention and detection of frauds and errors the accuracy and completeness ofthe accounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of internalFinancial Controls and both issued by the institute of Chartered Accounts of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining and understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risk ofmaterial misstatement of the financial statement where due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purpose in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For M/s. RMA & Associates LLP
Chartered Accountants
Firm Regn .No. 000978N/N500062
Sd/-
Place: New Delhi (Amit Jain)
Dated : 30th June 2021 Partner
Membership No. 503109
UDIN: 21503109AAAABM6834

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