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Gujarat Themis Biosyn Ltd.

BSE: 506879 Sector: Health care
NSE: GUJTHEMIS ISIN Code: INE942C01029
BSE 00:00 | 26 Nov 506.75 -11.65
(-2.25%)
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NSE 05:30 | 01 Jan Gujarat Themis Biosyn Ltd
OPEN 513.50
PREVIOUS CLOSE 518.40
VOLUME 8528
52-Week high 692.00
52-Week low 196.00
P/E 18.42
Mkt Cap.(Rs cr) 736
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 513.50
CLOSE 518.40
VOLUME 8528
52-Week high 692.00
52-Week low 196.00
P/E 18.42
Mkt Cap.(Rs cr) 736
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Themis Biosyn Ltd. (GUJTHEMIS) - Auditors Report

Company auditors report

TO THE MEMBERS OF GUJARAT THEMIS BIOSYN LIMITED Report on the Audit of the Ind ASFinancial Statements Opinion

We have audited the accompanying Ind AS financial statements of GUJARAT THEMISBIOSYN LIMITED ("the Company') which comprise the Balance Sheet as at March 312021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and notes to financial statements including a summary of significant accountingpolicies (hereinafter referred to as the "the Ind AS financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 and the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

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 Ind AS financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Sr. No. Key Audit Matter How was the matter addressed in our audit
1. Revenue recognition [refer note no. 2.2(k) and 20 to the Ind AS financial statements]
Revenue is one of the key profit drivers and is therefore susceptible to misstatement. Cut-off is the key assertion in so far as revenue recognition is concerned since an inappropriate cut-off can result in material misstatement of results for the year. Audit procedures with regard to revenue recognition included testing controls automated and manual around dispatches/deliveries inventory reconciliations and circularization of receivable balances substantive testing for cut-offs and analytical review procedures.
2. Provisions and Contingent Liabilities (including direct and indirect taxes) [ refer note no. 2.2(n) and 30(B) to the Ind AS financial statements]
The Company is involved in direct and indirect tax litigations that are pending with various tax authorities. Whether a liability is recognised or disclosed as a contingent liability in the financial statements is inherently judgmental and dependent on a number of significant assumptions and assessments. These include assumptions relating to the likelihood and/or timing of the cash outflows from the business and the interpretation of local laws and pending assessments at various levels of the statute. Obtained an understanding from the management with respect to process and controls followed by the Company for identification and monitoring of developments in relation to the litigations including completeness thereof.
Obtained the list of litigations from the management and reviewed their assessment of the likelihood of outflow of economic resources being probable possible or remote in respect of the litigations. This involved assessing the probability of an unfavorable outcome of a given proceeding and the reliability of estimates of related amounts.
Performed substantive procedures including tracing from underlying documents / communications from the tax authorities and re-computation of the amounts involved. Assessed management's conclusions and understanding precedents in similar cases.

Other information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Management Discussion and Analysis Directors' Report includingAnnexures to Directors' Report and Corporate Governance but does not include the Ind ASfinancial statements and our auditor's report thereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe will not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements.

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 Ind AS 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness 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 Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Ind AS financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Ind AS financial statements.

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

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's 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

1. 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 Companies Act 2013 we give in the "Annexure A" a statement on thematters 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 bestof our knowledge and belief were necessary for the purposes of our audit of the aforesaidInd AS financial statements.

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Ind AS financial statements have been kept by the Company so far as itappears from our examination of those books.

c) The company does not have any branches. Hence the provisions of section 143(3)(c)is not applicable.

d) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Changes in Equity and the Statement of Cash Flow dealt with bythis Report are in agreement with the books of account.

e) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

f) In our opinion there are no financial transactions or matters which have anyadverse effect on the functioning of the company.

g) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

h) There is no adverse remark relating to the maintenance of accounts and other mattersconnected therewith.

i) With respect to adequacy of internal financial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate reportin "Annexure B"

j) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition as referred to Note 30(B) to the Ind AS financial statement.

(ii) The Company did not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses thereon does notarise.

(iii) There has been no delay in transferring amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

3. With respect to the other matters to be included in the Auditor's Report inaccordance 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 explanationsgiven to us The Company has not paid remuneration to its directors during the year andsitting fees paid to its Independent directors during the year are in accordance with theprovisions of section 197 of the Act.

For GMJ & Co
Chartered Accountants
(FRN: 103429W)
(CA S. Maheshwari)
Partner
Place : Mumbai M. No.: 038755
Date : May 12021 UDIN: 210387 55AAAA BZ3685

Annexure ‘A' to the Independent Auditors' Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

i. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of

Property Plant and Equipment.

(b) Property Plant and Equipment have been physically verified by the management atregular intervals which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. No material discrepancies were noticed on suchphysical verification.

(c) According to the information and explanation given to us and on the basis of ourverification title deeds of all immovable properties are held in the name of the company.

ii. As explained to us management has conducted physical verification of inventory atregular intervals during the year and no material discrepancies were noticed on suchphysical verification.

iii. The Company has not granted any loan secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of clause (iii)(a) (iii)(b) and(iii)(c) of paragraph 3 of the Order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to usduring the year the Company has not granted any loans or provided any guarantees orsecurity in respect of any loans to any party covered under section 185 and 186 of theCompanies Act 2013.Therefore the provisions of clause 3(iv) of the said order are notapplicable to the company.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from public within the meaning of Section 73 to 76of the Companies Act 2013 and the rules framed there under.

vi. According to the information and explanations given to us we have broadly reviewedthe books of account maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under section 148 of the Companies Act2013 and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained.

vii. (a) According to the information and explanation given to us and on the basis ofour examination of our records of the Company in respect of undisputed statutory duesincluding provident fund employees' state insurance income tax wealth tax sales taxGoods and service tax service tax duty of customs duty of excise value added tax cessand any other statutory dues have generally been regularly deposited with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were in arrears as at March 31 2021 for a periodof more than six months from the date they became payable.

(b) According to the information and explanation given to us and on the basis of ourexamination of our records of the Company there have been no disputed dues which have notbeen deposited in respect of income tax goods and services tax sales tax service taxexcise duty duty of customs or value added tax as at March 31 2021.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to banks during the year under audit. Thereare no dues to Financial Institution Government and the Company has not issued anydebentures.

ix. According to the information and explanations given to us and based on the recordsand documents produced before us during the year the company has not raised money by wayof initial public offer or further public offer and the term loans have been applied forthe purposes for which they were obtained.

x. To the best of our knowledge and belief and according to the information given tous no material fraud by the company or on the company by its officers or employees hasbeen noticed or reported during the year.

xi. According to the information and explanations given to us and based on the recordsand documents produced before us the Company has not paid / provided for managerialremuneration during the year. Therefore the provisions of clause xi of paragraph 3 of theOrder are not applicable to the Company.

xii. As the company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it therefore the provisions of clause (xii) of paragraph 3 of the Order are notapplicable to the company.

xiii. According to the information and explanation given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of the Companies Act2013. The details of such related party transactions have been disclosed in the financialstatements as required under Indian Accounting Standard (Ind AS) 24 Related PartyDisclosures.

xiv. According to the information and explanations given to us and based on the recordsand documents produced before us the company has not made any preferential allotment orprivate placement of shares or fully or partly 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 directors or persons connected with him underthe provisions of section 192 of Companies Act 2013.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934

For GMJ & Co
Chartered Accountants
(FRN: 103429W)
(CA S. Maheshwari)
Partner
Place : Mumbai M. No.: 038755
Date : May 12021 UDIN: 210387 55AAAA BZ3685

Annexure - ‘B' to the Auditors' Report

(Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act"))

We have audited the internal financial controls over financial reporting of "GUJARATTHEMIS BIOSYN LIMITED" ("the Company") as of March 31 2021 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 Reportingissued by the Institute of Chartered Accountants of India ( ICAI ). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

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 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 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) 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For GMJ & Co
Chartered Accountants
(FRN: 103429W)
(CA S. Maheshwari)
Partner
Place : Mumbai M. No.: 038755
Date : May 12021 UDIN: 210387 55AAAA BZ3685

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