Alpa Laboratories Ltd.
|BSE: 532878||Sector: Health care|
|NSE: ALPA||ISIN Code: INE385I01010|
|BSE 00:00 | 17 Sep||52.95||
|NSE 00:00 | 17 Sep||53.00||
|Mkt Cap.(Rs cr)||111|
|Mkt Cap.(Rs cr)||111.41|
Alpa Laboratories Ltd. (ALPA) - Auditors Report
Company auditors report
To the Members of Alpa Laboratories Limited
Report on the Audit of the Standalone Financial Statements
1. I have audited the accompanying Standalone financial statements of AlpaLaboratories Limited (the Company) which comprises the Balance Sheet asat 31st March 2020 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of changes in equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.
2. In my opinion and to the best of my information and according to theexplanations given to me the aforesaid standalone financial statements give theinformation required by the Companies Act2013 (the Act') in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including Indian Accounting Standards (Ind AS') ofthe state of affairs of the Company as at 31st March 2020 its totalComprehensive Income (Comprising of profit (changes in equity) and its cash flows for theyear ended on that date.
Basis of Opinion
3. I conducted my audit in accordance with the Standards of Auditing(SAs) specified under section 143(10) of the Companies Act 2013. My responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of my report. I am independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to my audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and I have fulfilled my other ethical responsibilities in accordance withthese requirements and the Code of Ethics. I believe that the audit evidence I haveobtained is sufficient and appropriate to provide a basis for my opinion.
4. Emphasis of the matter
I draw attention to note 42 to the accompanying standalone financialstatements which describes the effects of uncertainties relating to COVID - 19 pandemicoutbreak on the Company's operations and management's evaluation of its impact on theaccompanying standalone financial statement as at 31 March 2020 the impact of which isdependent on future developments.
5. My opinion is not modified in respect of this matter.
Key Audit Matters
6. Key audit matters are those matters that in my professionaljudgment were of most significance in my audit of the financial statements of the currentperiod. These matters were addressed in the context of my audit of the financialstatements as a whole and in forming my opinion thereon and I do not provide a separateopinion on these matters.
Information other than the Financial Statements and Auditor'sReport thereon
7. The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's Annual Report but does not include the financial statements and myauditors' report thereon.
8. My opinion on the standalone financial statements does not cover theother information and I do not express any form of assurance conclusion thereon.
9. In connection with my audit of the standalone financial statementsmy responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements ormy knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work I have performed I conclude that there is a material misstatement ofthis other information I am required to report that fact. I have nothing to report inthis regard.
Responsibility of Management for the Standalone Financial Statements
10. The Company's Board of Directors is responsible for thematters stated in Section 134(5) of the Companies Act 2013 (the Act) withrespect to preparation of these financial statements that give a true and fair view of thefinancial position financial performance (changes in equity) and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 Ire 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.
11. In preparing the financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
12. The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibility for the Audit of the Financial Statements
13. My objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes my opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
14. As part of an audit in accordance with Standards on Auditing Iexercise professional judgment and maintain professional scepticism throughout the audit.I also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for my opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances under Section143(3) (i) of the Act I am also responsible for expressing my opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If I conclude that a materialuncertainty exists I are required to draw attention in my auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify my opinion. My conclusions are based on the audit evidence obtained up to the dateof my auditor's report. However future events or conditions may cause the Company tocease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Obtain sufficient appropriate audit evidence regarding the financialinformation of such entities or business activities within the Company to express anopinion on the standalone financial statements of which I am the independent auditors. Iam responsible for the direction supervision and performance of the audit of financialinformation of such entities. For the other entities included in the standalone financialstatements which have been audited by other auditor such other auditor remainsresponsible for the direction supervision and performance of the audit carried out bythem. I remain solely responsible for my audit opinion.
15. I communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that I identify during myaudit.
16. I also provide those charged with governance with a statement thatI have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on my independence and where applicable related safeguards.
17. From the matters communicated with those charged with governance Idetermine those matters that Ire of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Idescribe these matters in my auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances I determinethat a matter should not be communicated in my report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
18. As required by Section 197(16) of the Act based on my audit Ireport that the Company has paid remuneration to its directors during the year inaccordance with the provisions of and limits laid down under Section 197 read withSchedule V to the Act.
19. As required by the Companies (Auditor's Report) Order 2016(the Order) issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 I give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
20. As required by Section 143 (3) of the Act I report that:
a. I have sought and obtained all the information and explanationswhich to the best of my knowledge and belief were necessary for the purposes of my audit;
b. In my opinion proper books of account as required by law have beenkept by the Company so far as it appears from my examination of those books.
c. The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account.
d. In my opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e. On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto my separate Report in Annexure B.
g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in my opinion and to the best of my information and according to theexplanations given to me:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note 35 and 43 to the financialstatements;
ii. The Company did not have any long-term contracts includingderivative contracts for which their Ire any material foreseeable losses;
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
ANNEXURE A REFERRED TO IN PARAGRAPH 16 OF MY REPORT OF EVENDATE ON THE STANDALONE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED MARCH 31st2020 OF ALPA LABORATORIES LIMITED.
1) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of
(b) All the assets have not been physically verified by the managementduring the year but there is a regular programme of verification which in my opinion isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies Ire noticed on such verification.
(c) The title deeds of immovable properties are held in the name of thecompany.
2) (a) I have been informed that the inventory excluding inventory withthird parties (which have been substantially confirmed)
has been physically verified during the year by the management. In myopinion the frequency of verification is reasonable.
3) (a) The Company has granted unsecured loans to companies covered inthe register maintained under Section 189 of the
Act. The Company has not granted any secured / unsecured loans to anyother party as applicable covered in the register maintained under Section 189 of theCompanies Act 2013.
(i) In respect of the aforesaid loans the terms and conditions underwhich such loans Ire granted are not prejudicial to the Company's interest.
(ii) In respect of the aforesaid loans the schedule of repayment ofprincipal and interest has been stipulated and the parties are repaying the principalamounts as stipulated. However interest on debentures issued by subsidiary company hasnot been paid in light of resolution dated 10th August 2017.
(iii) In respect of the aforesaid loans there is no amount which isoverdue for more than ninety days.
4) In my opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and section 186of the Companies Act 2013 In respect of loans investments guarantees and security.
5) The Company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)Rules 2015 with regard to the deposits accepted from the public are not applicable.
6) I have broadly reviewed the books of accounts maintained by theCompany pursuant to the order of the Central Government for the maintenance of costrecords under sub section (1) of section 148 of the Companies Act 2013 in respect of theproducts dealt with by the Company and are of the opinion that prima facia the prescribedaccounts and record have been made and maintained. I have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.
7) (a) According to information and explanations given to me and on thebasis of my examination of the books of account and
records the Company has been generally regular in depositingundisputed statutory dues including Provident Fund Income-Tax Sales tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and any other statutory dues withthe appropriate authorities. According to the information and explanations given to me noundisputed amounts payable in respect of the above Ire in arrears as at March 31 2020 fora period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to me andrecords of the Company the dues of there are dues of income tax sales tax value addedtax which have not been deposited on account of any dispute are as follows:
8) According to the information and explanations provided by themanagement Company has neither defaulted in the repayment of dues to banks or financialinstitution nor has issued any debentures.
9) Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments. Further the term loansterm loans have been applied for the purposes for which they Ire obtained.
10) During the course of my examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to me I have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have I been informed of any such caseby the Management.
11) Based upon the audit procedures performed and the information andexplanations given by the management the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act;
12) In my opinion the Company is not a Nidhi Company. Therefore theprovisions of clause 4 (xii) of the Order are not applicable to the Company.
13) The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Ind AS 24 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
14) Based upon the audit procedures performed and the information andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
15) Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16) In my opinion the company is not required to be registered undersection 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions ofclause 3 (xvi) of the Order are not applicable to the Company and hence not commentedupon.
ANNEXURE B TO THE INDEPENDENT AUDITOR'SREPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF ALPA LABORATORIES LIMITED
Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (theAct)
I have audited the internal financial controls over financial reportingof ALPA LABORATORIES LIMITED (the Company) as of March 31 2020 in conjunctionwith my audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. 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 safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
My responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on my audit. I conducted my audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note) and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that I comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. My audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Control over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In my opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020 basedon 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.