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Bharat Immunological & Biological Corporation Ltd.

BSE: 524663 Sector: Health care
NSE: N.A. ISIN Code: INE994B01014
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OPEN 24.90
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VOLUME 25493
52-Week high 62.35
52-Week low 21.20
P/E
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
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Bharat Immunological & Biological Corporation Ltd. (BHARATIMMUNOLOG) - Auditors Report

Company auditors report

To

The Members of M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED Reporton the Audit of the Ind-AS Financial Statements We have audited the accompanying Ind-ASfinancial statements of M/s BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED(“the Company”) which comprise the Balance Sheet as at 31st March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flow Statement for the year ended on that date and asummary of the significant accounting policies and other explanatory informationcontaining in Note No.1 to 34 (hereinafter referred to as “the financialstatements”). Adverse Opinion In our opinion and to the best of our information andaccording to the explanations given to us because of the significance of the mattersdescribed in the basis for Adverse opinion section of our report wherein effect of basisof qualification are quantified under Para 1 to 25 the aforesaid financial statements donot give the information required by the Companies Act 2013 (“The Act”) in themanner so required and do not give a true and fair view in conformity with accountingprinciples generally accepted in India of the state of affairs of the company as at March31 2021 the Profit changes in equity and its cash flow for the year ended on that date.

Basis for Adverse Opinion

1. No fixed assets register was made available to us for verification. Onlyquantitative physical verification report of the fixed assets conducted by company's ownstaff was provided which do not have any financial figures which can be matched with thefinancial statement. Further there are many assets are marked “DamagedCondition” or “Not Found” but no adjustment of the same is provided in thebooks. Financial effect of the same is not quantifiable.

2. In Depreciation Schedule (Note No.4) corresponding figures of last year do notmatch with the financial statement of last year even the sum of net carrying amount as on31.03.2020 is incorrectly mentioned as Rs.470.16 Lacs instead of Rs. 446.51 Lacs. Furtherthe depreciation chart / calculations / deprecation rate provided to us are also incorrectand not co relating with the figures in Financial Statements. Financial effect of the sameis not quantifiable.

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

4. As per the IndAS-16 if an asset's carrying amount is increased as a result of arevaluation the increase shall be recognized as other comprehensive income andaccumulated/entered on the liabilities side in Equity under the heading RevaluationReserve but the company wrongly entered it as retained earnings in violation ofprovisions of IndAS-16.

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

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

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

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

9. Sundry debtors include an amount of Rs. 645.42 Lacs as appearing in Note 31 (h) ofthe financial statement represent the late delivery charges pertains to financial year2013-14 and 2014-15 deducted by the Ministry of Health and Family Welfare (Debtor) whichare doubtful about its recoverability and required suitable provision. Further No detailsof any late delivery charges / other deductions were made available from financial year2015-16 onwards. No balance confirmation / party statement and reconciliation are providedfor our verification. Financial effect of the same is not quantifiable.

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

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

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

13. Company shows Rs. 321106/- as the recoverable from the Mr. Sethi while companyhas accepted the liability to pay of Rs. 99000/- before the Hon'ble High Court. Henceprofit of the company is overstated by Rs. 420106/-.

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

15. In note 13 company shows Rs. 689.32 Lacs as Balance with Revenue Authority whichconsists of the amount of GST credit and GST TDS. Recoverability of the full amount isdoubtful as the same are not matching with the balances appearing on the GST website andno reconciliation exercise has been done. Financial effect of the same is notquantifiable.

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

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

18. As per note 6 company has security deposits amounting to Rs. 44.84 Lacs but nodetails of the same is available with the company as such these amounts are doubtful ofrecovery. Thus needs necessary provision for the same. Thus the profits of the companyare over stated by Rs.44.84 Lacs.

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

20. Many figures have been differently grouped in comparison to the last year butcorresponding figures are not regrouped accordingly. Further no reason for doing so hasbeen disclosed. Even payments to auditor are merged with professional & legalexpenses.

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

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

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

24. Under the Head “Other Income” (Note-24) company has written back certainliabilities of earlier years as prior period adjustments amounting to Rs. 59.48 Lacs butno documentary evidence for the same has been made available for our verification. Thusthe company has overstated its income by Rs.59.48 Lacs.

25. Financial Statements are not prepared / presented / displaying the requisitedetails in compliance of provisions of the Companies Act 2013 and applicable accountingstandards. Even in Note 1 date of approval of the financial statements by Board ofDirectors of the company is mentioned as 31.03.2021 though no meeting was held on thatdate.

Further no minutes of Board and various committees were provided to us for our review/ verification of various decisions. We have conducted our audit of the financialstatements in accordance with the standards on Auditing as specified under section 143(10)of the Act (SAs). Our responsibilities under those standards are further described in theAuditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent to the company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that our adverse audit opinion on the financial statements is based onsufficient and appropriate audit evidences gathered by us.

Emphasis of Matters

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

2. Attention is drawn to note no 31(f) Company had received the various grants fromthe Government of India in previous years. These grants should be utilized accordinglywith line of its object as defined in the sanction order. But the significant amounts arelaying unspent as on 31st March 2021 even after the expiry of the scheduled completiondate.

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

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

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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

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

 

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

Information other than the Financial Statements and 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 thefinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. 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. However nosuch report / information was made available to us for our reading and comparison and assuch we have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Management / Board of Directors is responsible for the matters stated inSection 134(5) of the Act with respect to preparation and presentation of these financialstatements that give a true and fair view of the financial position financialperformance change in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements management is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors is responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

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 weexercise professional judgment and maintain 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 financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act 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 themagnitude of misstatements in the financial statements that individually or in aggregatemakes it probable that the economic decisions of a reasonably knowledgeable user of thefinancial statements may be influenced. We consider quantitative materiality andqualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. We also provided 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. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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

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

b) In our opinion proper books of account as required by law have NOT 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 Statement of Cash Flow dealt with by thisReport are NOT in agreement with the relevant books of account.

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

e) Being the government company Section 164 (2) of the Companies Act 2013 is notapplicable on the company.

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 A”.

g) Being the government company Section 197 (16) of the Companies Act 2013 is notapplicable on the company.

h) 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 not provided us the records of pending litigations for ourverification. Further the company has not disclosed any impact of pending litigations onits financial position in its financial statements and accordingly we are unable tocomment on that.

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

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

2. 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 ofthe Act we give in Annexure "B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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

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

“Annexure- A” to the Independent Auditor's Report

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

Report on the Internal Financial Controls with reference to financial statements underClause (i) of Sub- section 3 of Section 143 of the Companies Act 2013 (“theAct”) We have audited the internal financial controls over financial reporting of M/sBHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED (“the Company”) asof 31st March 2021 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the “Guidance Note”) issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. 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 performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's internal financial controls system over 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) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.

Disclaimer of Opinion

According to the information and explanation given to us the Company has notestablished its internal financial control over financial reporting on criteria based onor considering 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. Because of this reason we are unable to obtain sufficientappropriate audit evidence to provide a basis for our opinion whether the Company hadadequate internal financial controls over financial reporting and whether such internalfinancial controls were operating effectively as at March 31 2021. We have considered thedisclaimer reported above in determining the nature timing and extent of audit testsapplied in our audit of the financial statements of the Company and the disclaimer doesnot affect our opinion on the financial statements of the Company.

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

“Annexure- B” to the Independent Auditor's Report

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

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

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

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

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

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

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

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

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

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

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

(a) We are unable to comment whether the Company is regular in depositing undisputedstatutory dues including Provident fund Employees' State Insurance Income Tax SalesTax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess and any otherstatutory dues to the appropriate authorities or not.

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

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

(ix) According to the information and explanations given to us the Company has notraised any money out of initial public offer or further public offer (including debtinstruments) and term loans.

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

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

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

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

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

(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with the Directors or persons connected with itduring the year.

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

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

Annexure ‘C' to the Independent Auditor's Report

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

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

 

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

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