To the members of Dr Lalchandani Labs Limited
Report on the standalone financial statements
We have audited the financial statements of Dr Lalchandani Labs Limitedcomprising of the Balance Sheet as at March 31 2020 the Statement of Profit and Loss andCash FlowStatement for the year ended and a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the financialstatements").
Management's Responsibility for the financial statements
The Company's Board of Directors is responsible for thepreparation of these financial statements in terms of the requirement of the CompaniesAct 2013 ("the Act") that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 andCompanies (Accounting Standards) Amendment Rules 2016. The respective Board of Directorsof the companies are responsible for maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error which have been used for the purpose ofpreparation of the financial statements by the Directors of the Company as aforesaid.
Our responsibility is to express an opinion on these financialstatements based on our audit. While conducting the audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade there under. We conducted our audit in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India as specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the consolidated financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the consolidated financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Board of
Directors as well as evaluating the overall presentation of thefinancial statements. We believe that the audit evidence obtained by us and the auditevidence obtained by the other auditors in terms of their reports referred to in OtherMatters paragraph below is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India as at March 31 2020 their profit andtheir cash flows for the year ended on that date.
Report on other legal and Regulatory Requirements
|1. ||As required by the Companies (Auditor's Report) Order 2015 (the Order') issued by the Central Government of India in terms of subsection (11) of section 143 of the Act we enclose in the "Annexure 1" a statement on the matters specified in Paragraph's 3 and 4 of the Order. |
|2. ||As required by Section 143 (3) of the Act based on our audit we report to the extent applicable 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 purpose of our audit of the aforesaid financial statements; |
|(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 Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of the financial statements; |
|(d) ||In our opinion the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and Companies (Accounting Standards) Amendment Rules 2016; |
|(e) ||On the basis of written representations received from the directors as on March 31 2020 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2020 from being appointed as a director in terms of Section 164 (2) of the Act. |
|(f) ||With respect to the adequacy and the operating effectiveness of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in "Annexure 2" to this report; |
|(g) ||With respect to the other matters to be included in the Auditor's 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 tous: |
|i. ||The Company does not have any pending litigations which would impact its financial position. |
|ii. ||The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. |
|iii. ||There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. |
|iv. ||Due to restriction and lock down laid by the government due to COVID 19 pandemic it was impractical for us to attend the physical verification of cash and inventory. Consequently we have relied on the management representation for the existence of inventory and cash as on March 31 2020. |
Our opinion is not modified in respect of the above matter.
|For Jain Agarwal and Company. |
|Chartered Accountants |
|FRN: 024866N |
|CA KARAN JAIN |
|Membership No: 521992 |
|Place: NEW DELHI |
|Date: 04th September 2020 |
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of Dr LalchandaniLabs Limited for the year Ended on 31.03.2020. We report that:
|S. No. ||Particulars ||Auditors Remark |
|(i) ||(a) whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; ||Yes the company is maintaining the proper records in regards to its Fixed assets & their location. |
| ||b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||Yes |
| ||(c) whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof; ||The company has acquired a property by way of an agreement to sell during the financial year 201718. As per the representations from the management the said property has been mortgaged with AU Small Finance Bank by way of registered mortgage during the financial year 2019-20. |
|(ii) ||whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account; ||Yes |
|(iii) ||whether the company has 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 Companies Act 2013. If so ||Rs.100000 has been given as advance to Mrs. Geetika Bhatia during FY 19-20. |
| ||(a) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; ||Yes |
| ||(b) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; ||Yes |
| ||(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; ||Not applicable |
|(iv) ||in respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. ||Yes |
|(v) ||in case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? ||Not applicable |
|(vi) ||whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained. ||Not applicable |
|(vii) ||(a) whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; ||The company has generally been regular in deposit of statutory dues except for delays on few instances in case of deposit of TDS PF & ESI. |
| ||(b) where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute). ||No such dues |
|(viii) ||whether the company has defaulted in repayment of loans or borrowing to a financial institution bank Government or dues to debenture holders? If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and Government lender wise details to be provided). ||The company has been generally regular in repayment of installments of loans from various financial institutions & banks except for delays of few days on few instances. |
|(ix) ||whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification if any as may be applicable be reported; ||Not applicable for this financial year |
|(x) ||whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated; ||No such instance has been reported |
|(xi) ||whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same; ||Yes |
|(xii) ||whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; ||Not applicable |
|(xiii) ||whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards; ||Yes |
|(xiv) ||whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and nature of noncompliance; ||No such issue has been made during the Financial year 2019-20 |
|(xv) ||whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with ||No such transactions have been entered during the year. |
|(xvi) ||whether the company is required to be registered under section ||Not applicable |
| ||45-IA of the Reserve Bank of India Act 1934 and if so whether || |
| ||the registration has been obtained. || |
| ||For Jain Agarwal and Company Chartered Accountants Firm's registration number: 024866N |
|Place: New Delhi Date: 04th September 2020 ||Sd/- CA KARAN JAIN Partner Membership number: 521992 |
Annexure 2" to the Independent Auditor's Report of even dateon the Standalone Financial Statements of Dr Lalchandani Labs Limited
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Dr Lalchandani Labs Limited ("the Company") as of March 31 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India". 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 offrauds and 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'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit 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 ICAI and deemedto be 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our 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.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting isa process 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 controlover financial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over 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 our 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 theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India."
|For Jain Agarwal and Company |
|Chartered Accountants |
|FRN: 024866N |
|CA KARAN JAIN |
|Membership No: 521992 |
|Place: NEW DELHI |
|Date: 04th September 2020 |