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Claris Lifesciences Ltd.

BSE: 533288 Sector: Health care
NSE: N.A. ISIN Code: INE562G01018
BSE 09:19 | 14 Mar Claris Lifesciences Ltd
NSE 05:30 | 01 Jan Claris Lifesciences Ltd
OPEN 395.10
PREVIOUS CLOSE 396.05
VOLUME 1002
52-Week high 396.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 2,161
Buy Price 396.05
Buy Qty 13.00
Sell Price 396.90
Sell Qty 100.00
OPEN 395.10
CLOSE 396.05
VOLUME 1002
52-Week high 396.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 2,161
Buy Price 396.05
Buy Qty 13.00
Sell Price 396.90
Sell Qty 100.00

Claris Lifesciences Ltd. (CLARISLIFESCIEN) - Auditors Report

Company auditors report

To

The Members of

CLARIS LIFESCIENCES LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the standalone Ind AS financial statements of CLARIS LIFESCIENCES LIMITED (the company) which comprise the Balance Sheet as at March 31 2019 the Statement of Profit & Loss (including Other Comprehensive Income) Statement of Changes in Equity and Statement of Cash Flows for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the company as at March 31 2019 and its loss (including other comprehensive Income) changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act2013. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirement that are relevant to our audit of the financial statements under the provisions of the Companies Act2013 and the rules thereunder and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to note no: 40 with respect to the losses incurred by the company and erosion of its net worth and preparation of the standalone financial statements on going concern assumption based on the reasons and assumptions stated in the aforesaid note. The company's ability to continue as a going concern is dependent on generation of the expected cash flows to be able to meets its obligations as and when they arise for which an uncertainty exists that may cast significant doubt on the ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

Other information

The Company's management and Board of Directors are responsible for the other information. The other information comprises the information included in the company's annual report but does not include the standalone financial statements and our auditors' report thereon.

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

In connection with our audit of the standalone financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance (including other comprehensive income) changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

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

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

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

 Obtain an understanding of internal control relevant to the audit in order to design 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 has adequate internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.

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

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by 'the Companies (Auditors' Report) Order 2016 (the Order) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we report that :

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

c) The Balance Sheet the Statement of Profit and Loss (including other comprehensive income) the Statement of changes in equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 (as amended).

e) On the basis of the written representations received from the directors as on March 31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the Internal Financial Control over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure B.

g) With respect to the other matters to be included in the Auditor's report in accordance with the requirements of section 197(16) of the Act as amended in our opinion and to the best of our information and according to the explanations given to us the Company has not paid any managerial remuneration to the directors during the year and accordingly reporting on compliance with section 197 is not applicable;

h) With respect to other matters to be included in the Auditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and 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 March 31 2019 on its financial position. Refer Note 31 to the standalone Ind AS financial statements.

ii) The company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.

For SHAH & SHAH ASSOCIATES
Chartered Accountants
FRN:113742W
SUNIL K DAVE
Place : Ahmedabad.PARTNER
Date : August 16 2019Membership Number: 047236
UDIN No.: 19047236AAAACX6103

Annexure A to the Independent Auditors' Report of even date on the Standalone Ind AS financial statements of CLARIS LIFESCIENCES LIMITED

(Referred to in paragraph 1 under the heading `Report on Other Legal & Regulatory Requirements' of our report of even date to the Standalone Ind AS financial statements of the Company for the year ended on March 31 2019)

1. The Company does not hold any fixed assets; Thus paragraph 3(i) (a) (b) and (c) of the Order is not applicable to the Company.

2. The Company does not hold any physical inventories; Accordingly paragraph 3 (ii) of the Order is not applicable to the Company.

3. According to the information and explanations given to us the company has not granted any loans secured or unsecured to companies firms limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Hence reporting under clause 3(iii) of Order does not arise.

4. Company has not granted loan to any persons covered under section 185 of the Companies Act 2013 or given guarantees or securities in connection with loan taken by such persons. In our opinion and according to the information and explanations given to us the company has complied with the provisions of section 186 of the Act in respect of investments made by the company.

5. According to the information and explanations given to us the company has not accepted any deposits in terms of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015.

6. The Central Government of India has not specified the maintenance of cost records under Sub-section (1) of Section 148 of the Companies Act 2013 for any of the activities performed by the Company. Accordingly paragraph 3(vi) of the Order is not applicable to the Company.

7. a) As per information and explanations given to us the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income tax sales-tax service tax GST duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities. There are no outstanding statutory dues as at the last day of the financial year under audit for a period of more than six months from the date they became payable.

b) According to the information and explanation given to us the details of dues in respect of income tax sales tax and excise duty which have not been deposited as at March 31 2019 on account of disputes are given below:

StatuteNature of DuesForum where Dispute is pendingPeriod to which the amount relatesAmount involved (Rs. in lakhs*)
Income Tax Act 1961Income TaxIncome Tax Appellate Tribunal2005-200671.50
StatuteNature of DuesForum where Dispute is pendingPeriod to which the amount relatesAmount involved (Rs. in lakhs*)
Income Tax Act 1961Income TaxIncome Tax Appellate Tribunal2006-200771.18
Income Tax Act 1961Income TaxIncome Tax Appellate Tribunal2007-200891.50
Income Tax Act 1961Income TaxCommissioner of Income Tax (appeals)2010-20110.13
Andhra Pradesh VAT Act 2005Sales TaxSales Tax Appellate Tribunal2006-20108.93
Gujarat Value added Tax Act2003Sales TaxSales Tax Appellate Tribunal2005-200611.09
Central Excise Act 1994Excise DutyDeputy

Commissioner Central Excise

2011-201214.87

* Net of amounts paid under protest or otherwise.

8. According to the information and explanation given to us and based on our audit procedures the company has not obtained loan or borrowing from financial institution bank government or by way of issue of debentures. Therefore the provisions of clause 3(viii) of the Order are not applicable to the Company.

9. The company has not raised money by way of initial public offer or further public offer (including debt instruments) or term loan and hence clause 3(ix) of the Order is not applicable to the company.

10. There has been neither any fraud by the company nor any fraud on the company by its officers or employees has been noticed or reported during the year.

11. In our opinion and according to the information and explanation given to us and the records of the Company examined the Company has not paid or provided for managerial remuneration during the year. Accordingly reporting under paragraph 3 (xi) of the Order does not arise.

12. The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Order are not applicable to the Company.

13. The Company has entered in to transactions with related parties in compliance with Sections 177 and 188 of Act. The details of such related party transactions have been disclosed in the Standalone Ind AS financial statements as required by the applicable accounting standards.

14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period under review. Accordingly the provisions of clause 3(xiv) of the Order are not applicable to the company.

15. Based upon the audit procedures performed and the information and explanations given by the management the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly the provisions of clause 3(xv) of the Order are not applicable to the company.

16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For SHAH & SHAH ASSOCIATES
Chartered Accountants
FRN:113742W
SUNIL K DAVE
Place : Ahmedabad.PARTNER
Date : August 16 2019Membership Number: 047236
UDIN No.: 19047236AAAACX6103

Annexure B to the Independent Auditors' Report of even date on the Standalone Ind AS financial statements of CLARIS LIFESCIENCES LIMITED.

Referred to in paragraph 2(f) under the heading `Report on Other Legal & Regulatory Requirement' of our report of even date to the Standalone Ind AS financial statements of the Company for the year ended March 31 2019

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of CLARIS LIFESCIENCES LIMITED (the Company) as of March 31 2019 in conjunction with our audit of the Standalone Ind AS 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by the Institute of Chartered Accountants of India and deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the Auditors' judgement including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Ind AS financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition use or disposition of the company's assets that could have a material effect on the Standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For SHAH & SHAH ASSOCIATES
Chartered Accountants
FRN:113742W
SUNIL K.DAVE
Place : Ahmedabad.PARTNER
Date : August 16 2019Membership Number: 047236
UDIN No.: 19047236AAAACX6103