Kamron Laboratories Ltd.
|BSE: 524604||Sector: Health care|
|NSE: N.A.||ISIN Code: INE276T01018|
|BSE 00:00 | 29 Jul||Kamron Laboratories Ltd|
|NSE 05:30 | 01 Jan||Kamron Laboratories Ltd|
|BSE: 524604||Sector: Health care|
|NSE: N.A.||ISIN Code: INE276T01018|
|BSE 00:00 | 29 Jul||Kamron Laboratories Ltd|
|NSE 05:30 | 01 Jan||Kamron Laboratories Ltd|
THE MEMBERS OF
KAMRON LABORATORIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of KAMRON LABORATORIES LTD("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("The Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the 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. 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements 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 management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit Opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a. In the case of the Balance Sheet of the state of affairs of the Company as at March31 2021; b. In the case of Statement of Profit and Loss of the Loss for the year endedon that date ; and c. In the case of the Cash Flow Statement of the cash flows for theyear ended on that date.
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 Act we give in the Annexure A attached hereto our comments on the matters specifiedin paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books ; c. The Balance Sheet Statement of Profit and Loss and CashFlow Statement dealt with by this Report are in agreement with the books of account d. inour opinion the Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement dealt with by this report comply with the Accounting Standards notified undersection 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rule2014. e. On the basis of written representations received from the directors as on March31 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2021 from being appointed as a director in terms of ofsub-section (2) of section 164 of the Companies Act 2013 f. We invite reference toseparate report in Annexure B with respect to the adequacy of the internal financialcontrols over financial reporting of the company and the operating effectiveness of suchcontrol during the year under review: g. With respect to other matters to be included inthe Auditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion: a) The company according to the explanations and informationgiven to us did not have any pending litigation which can have the impact on itsfinancial position. b) The company according to explanations and information's given tous did not have any long term contracts including derivatives contracts for which therewere any material foreseeable losses. c) The company did not have any amount which wasrequired to be transferred to the Investor Education and Protection Fund by the company.
ANNEXURE-A TO THE AUDITORS' REPORT KAMRON LABORATORIES LIMITED
(The Annexure A Referred to in Paragraph 1 of our report of even date)
1. In respect of its fixed assets :
A. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.However during the financial year under review the company has disposed off all the fixedassets except intangible assets.
B. As explained to us the fixed assets have been physically verified by the Managementduring the year in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.
C. The company did not hold any immoveable property during the financial year underreview.
2. In respect of its inventory :
A. As explained to us inventories have been physically verified by the management atregular intervals during the year. In our opinion the frequency of verification isreasonable.
B. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
C. The Company has maintained proper records of inventories as explained to us therewere no material discrepancies noticed on physical verification of inventory as comparedto the book records.
3. According to the information and explanation given to us the company has notgranted any loans secured/Unsecured to any company firm or other party covered inregister maintained under section 189 of the Companies Act 2013.
4. According to the information and explanation given to us the Company has notaccepted any deposit from the public within the meaning of sections 73 and 74 of the Actand the rules framed thereunder during the year under review.
5. The Company has not accepted any deposit from the public within the meaning ofsections 73 and 74 of the Act and the rules framed thereunder during the year underreview.
6. The Central Government (Ministry of Corporate Affairs) has prescribed maintenance ofCost Records under section 148(1) of the Companies Act 2013 in respect of certainmanufacturing activities of the Company and the company has complied with the same.However in view of discontinuance of the manufacturing operations by the company witheffect from November 2019 onwards no cost records have been maintained.
7. In respect of statutory dues:
A. According to the records of the Company undisputed statutory dues viz. InvestorEducation and Protection Fund Employees' State Insurance Income tax Sales tax WealthTax Customs Duty Excise Duty Cess and other statutory dues have been generallyregularly deposited with the appropriate authorities.
B. According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were outstanding as at 31st March 2021 for aperiod of more than six months from the date of becoming payable.
C. Details of dues of Income tax Sales Tax Service Tax Custom Duty Excise DutyValue Added Tax and Cess which have not been deposited on 31st March 2021 onaccount of disputes are given below:-
8. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto financial institutions and banks. The Company has not issued any debentures.
9. According to the information's and explanations given to us and on basis ofverification conducted by us in our opinion the company has not availed any term loan andneither the company has raised money by way of initial public officer nor further publicoffer during the year under review. Money raised by way of initial public issue in theearlier years have been applied for acquiring the fixed assets which was the purpose ofthe issue as informed and explained to us by the management of the company.
10. In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year.
11. The Company has paid managerial remuneration in accordance with the requisiteapprovals mandated by provisions of section 197 read with Schedule V to the Companies Act2013.
12. The Company is not a Nidhi Company.
13. The Company has effected financial transactions by way of payment of managerialremuneration sale of the goods directors' fees and accepting loans from the relatedparties which in our opinion are in compliance with sections 177 and 188 of the CompaniesAct 2013 and details have been disclosed as required by the Accounting Standards.
14. The Company has not made any preferential allotment or private placement of theshares or the convertible debentures during the year under review.
15. The Company has not entered into any non-cash transactions with directors orpersons connected with them during the year under review.
16. The Company is not required to be registered u/s 45IA of the Reserve Bank of IndiaAct 1934.
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE
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 KAMRONLABORATORIES LTD ("the Company") as of March 31 2021 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility of Internal Financial Control
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"). 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 company's policies the safeguarding ofthe assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's Internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and 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 control 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 ofmaterials 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company re being made only 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 Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management overridecontrols materials 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 polices or procedures may deteriorate.
We invite reference to our observations in paras Basis for Qualified Report andEmphasis of Matters and subject to the said observations and read with the saidobservation 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 31st March2021 based on 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".