The Members of
Beryl Drugs Limited
Report on the Audit of the financial statements
1. We have audited the accompanying financial statements of Beryl Drugs Limited ("theCompany") which comprise the Balance Sheet as at 31 March 2021 the Statement ofProfit and Loss (including other comprehensive income) the statement of Changes in Equityand Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements").
2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021its profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the financial statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the financial statements.
Key Audit Matters
4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended 31stMarch 2021. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion on these matters and we do not providea separate opinion on these matters.
5. We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditors' responsibilities for the audit of the financial statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the financial statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on the accompanying financial statements
|The key audit matters ||How our audit addressed the key audit matter |
|Expected Credit Loss || |
|(as described in note 2(N) 52(d)(i) of the financial statements) || |
|The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions relating to industries the Company deals with. ||Our audit procedures related to verification of expected credit losses for trade receivables included the following among others: |
|In calculating expected credit loss the Company has also considered market condition and other related credit information for its customers to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID -19. ||We tested the effectiveness of controls over the |
|We identified allowance for credit losses as a key audit matter because the Company exercises significant judgment in calculating the expected credit losses. ||(1) Development of the methodology for the allowance for credit losses including consideration of the current and estimated future economic conditions |
| ||(2) Completeness and accuracy of information used in the estimation of probability of default and |
| ||(3) Computation of the allowance for credit losses based on the age wise details of trade receivables provided to us. |
| ||We tested the mathematical accuracy and Computation of the allowances by using the same input data used by the Company. |
Information other than the financial statements and Auditor's Report thereon
6. The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the Financial Statements and our auditors' reportthereon. Our opinion on the Financial Statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
In connection with our audit of financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the Financial Statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information; we are requiredto report that fact. We have nothing to report in this regard.
Management's Responsibility for the financial statements
7. The Company's management and Board of Directors are responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these FinancialStatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act read with thecompanies (Indian Accounting Standards) rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Financial Statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
8. In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless Board of Directors and management either intends to liquidatethe Company or to cease operations or has no realistic alternative but to do so. Board ofDirectors is also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the financial statements
9. 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.
10. 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 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 our 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 in order todesign 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 hasadequate internal financial controls with reference to Financial Statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting 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 auditors'report. 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 financialstatements including the disclosures and whether the Financial Statements represent theunderlying transactions and events in a manner that achieves fair presentation.
11. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
13. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditors' report unless law or regulation precludes public disclosure about the matteror when 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
14. The Balance Sheet and the Profit & Loss Account have been drawn up inaccordance with the provision of Section 133 of the Act read with rule 7 of the CompaniesRules 2014 (as amended).
15. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
16. With respect to the matter to be included in the Auditors' Report under section197(16) we report that In our opinion and according to the information and explanationgiven to us the remuneration paid by the Company to its directors during the current yearis in accordance with the provisions of Section 197 read with Schedule V of the Act.
17. (A) As required by Section 143(3) of the Act based on our Audit we report to theextent applicable 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 and the Statement of Profit and Loss (including othercomprehensive income) statement of changes in equity and statement of cash flows dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid Financial Statements comply with the Ind AS specifiedunder Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 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 with reference toFinancial Statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B" to this report.
(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31st March 2021 onits financial position in its financial statements- Refer Note 39 to the financialstatements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31st March 2021;
iii. There were no amounts which were required to be transferred to the investoreducation & protection fund by the company.
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 15 under Report on Other Legal and RegulatoryRequirements' section of our Report of even date of Beryl Drugs Limited for the year ended31st March 2021)
1. In respect of its fixed assets:
The Company has maintained adequate records showing full particulars includingquantitative details and situation of fixed assets.
As explained to us all the items of property plant and equipment have beenphysically verified by the management in a phased periodical manner which in our opinionis reasonable having regard to the size of the Company and nature of its assets. Nomaterial discrepancies were noticed on such physical verification.
According to the information and explanations given to us and the recordexamined by us and based on the examination of the conveyance deeds provided to us wereport that the title deeds comprising of the immovable properties of land and buildingwhich are free hold and lease hold are in the name of the company as at the balance sheetdate.
As explained to us the inventories have been physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.
3. Loan given by company
According to the information and explanations given to us the company has not grantedany loans secured or unsecured to companies firms limited liability partnerships orother parties covered in the register maintained under Section 189 of the Companies Act2013 ("the Act") in during the year. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the order are not applicable to the Company.
4. Loan to directors and investment by the company
In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 & 186 of the Companies Act2013 with respect to the Loans & Investments made.
According to the information and explanations given to us the Company has not acceptedany deposits under sections 73 & 76 or any other relevant provision of companies act("the act") and the rule framed there under. Therefore the provision of Clause3(v) of the Order is not applicable to the Company.
6. Cost records
The Central Government has not prescribed maintenance of cost records to the companypursuant to the Companies (Cost Records and Audit) Rules 2014 as amended by sub section(1) of Section 148 of the Companies Act 2013.
7. Statutory dues
According to the information and explanations given to us and on the basis ofour examination of the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Customs Duty Goods and ServicesTax Cess and other applicable material statutory dues have been generally regularlydeposited with the appropriate authorities.
According to the information and explanations given to us and on the basis ofour examination of the records of the Company no undisputed amount payable in respect ofthe aforesaid dues were outstanding as at March 312021 for a period of more than sixmonths from the date of they became payable except the following:
|Particulars ||Amount (in R) |
|Service Tax ||8250/- |
|Wealth Tax ||390859/- |
|Professional Tax ||55000/- |
|Vat Tax 12-13 ||4809/- |
|Vat Tax 13-14 ||6217/- |
|Vat Tax 14-15 ||150401/- |
|Vat Tax ||76310/- |
According to the information and explanations given to us there are nostatutory dues which have not been deposited by the Company on account of disputes exceptthe following:
|Sr. No. Nature of the Statute ||Nature of Dues ||Amount ||Period to which the amount relates (F.Y.) ||Forum where dispute is pending |
|1 M.P. Entry Tax ||Entry Tax ||82865/- ||1998-1999 ||Revision filed before Addl. Commissioner of Commercial Tax Indore |
|2 M.P. VAT Act ||Vat Tax ||145662/- ||2015-2016 ||Appeal Filed |
|3 Income Tax Act ||Income Tax Demand ||4452810/- ||2017-2018 ||CPC Bengaluru |
TDS Defaults on traces:
|Financial Year ||Amount (in R) |
|2020-21 ||6400/- |
|2019-20 ||2125/- |
|2018-19 ||7119/- |
|2017-18 ||5192/- |
|2016-17 ||5278/- |
|Prior Years ||242842/- |
8. Repayments of loans
According to the information and explanations given to us the company has notdefaulted in repayment of dues to financial institutions or banks. The Company does nothave any loans from Government and has not issued any debentures during the year.
9. Utilization of funds
During the year The Company has not raised money by way of initial public offer orfurther public offer (including debt instruments). The Term Loans availed were applied forthe purposes for which they are obtained.
10. Reporting of frauds
According to the information and explanations given to us no material fraud on or bythe Company or on the Company by its Officers or Employees has been noticed or reportedduring the year under audit.
11. Approvals of managerial remuneration
According to the information and explanations given to us and based on our examinationof the records of the Company the Company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.
12 Nidhi company
In our opinion the company is not a Nidhi Company as prescribed under Section 406 ofthe Act. Therefore the provisions of clause 3(xii) of the said order are not applicableto the company.
13. Related party transaction
According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable Indianaccounting standards.
14. Private Placement or preferential allotment
According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.Accordingly the Clause 3(xiv) of the order is not applicable to the Company.
15. Non cash transaction
According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withits directors or persons connected with him.
16. Registration of Reserve Bank of India (RBI) Act 1934
The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 17(A)(f) under Report on Other Legal and RegulatoryRequirements' of our report of even date of Beryl Drugs Limited for the year ended 31stMarch 2021)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OFSUB SECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of Beryl DrugsLimited ("the Company") as of 31st March 2021 in conjunction with our audit ofthe 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
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 deemed tohave been prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal financial controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we 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.
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 an 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 risks ofmaterial misstatement of the financial statements whether 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 purposes 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have material effect on the financialstatements
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.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on audit of internal financialcontrols over financial reporting issued by the institute of chartered accountants ofIndia ("ICAI") .
| ||For PRATEEK JAIN & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||FRN-009494C |
| ||PRATEEK JAIN |
| ||PROPRIETOR |
|Date: 30.06.2021 ||M.NO. 079214 |
|Place: Indore ||UDIN: 21079214AAAABH5196 |