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Link Pharma Chem Ltd.

BSE: 524748 Sector: Industrials
NSE: N.A. ISIN Code: INE302F01011
BSE 00:00 | 25 Nov 41.45 0.75
(1.84%)
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NSE 05:30 | 01 Jan Link Pharma Chem Ltd
OPEN 40.00
PREVIOUS CLOSE 40.70
VOLUME 1332
52-Week high 64.45
52-Week low 31.30
P/E 11.20
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 40.00
CLOSE 40.70
VOLUME 1332
52-Week high 64.45
52-Week low 31.30
P/E 11.20
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Link Pharma Chem Ltd. (LINKPHARMACHEM) - Auditors Report

Company auditors report

To the Members of Link Pharma Chem Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofLink Pharma Chem Limited ("the Company") which comprise the balance sheet as at31st March 2022 and the statement of Profit and Loss (including Other ComprehensiveIncome) the statement of Cash Flows and the statement of Changes in Equity for the yearended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by Company's Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies ( Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its profit total comprehensive income its cash flows and change in equity for theyear 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 Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities forthe Audit of the Standalone Financial Statements section of our report. We are independentof the Company in accordance with the Code of Ethics issued by the Institute ofChartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the CompaniesAct 2013 and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matter described below to be the key audit matter tobe communicated in our report.

Revenue Recognition:

Revenue is one of the key profit drives and is therefore susceptible tomisstatement. Cut-off is the key assertion in so far as revenue recognition is concernedsince an inappropriate cut-off can result in material misstatement of result for the year.

Our audit procedure with regard to revenue recognition includes testingcontrols. Automated and manual around dispatched/ deliveries inventory reconciliationsand circularization of receivables balances substantives testing for cutoffs andanalytical reviews procedures.

Information other than the financial statements and Auditor's ReportThereon

• The Company's management and Board of Directors is responsiblefor the other information. The other information comprise the information included in theBoard's Report annexure thereto and report on corporate governance but does not includestandalone financial statement and our auditor's report thereon.

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

• In connection with our audit of the standalone financialstatement our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the standalone financialstatement or our knowledge obtained during the course of our audit or otherwise appears tobe materially misstated.

• 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 statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

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

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

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(I) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding thefinancial information of the Company to express an opinion on the standalone financialstatement.

Materiality is the magnitude of misstatement in the standalonefinancial statement that individual or in aggregate makes it probable that the economicdecision of a reasonably knowledgeable user of the standalone financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work ; and (ii) toevaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters 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 provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 Section143(11) of the Act based on our audit we give in the "Annexure A" a statementon the matter specified in Para 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen 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 othercomprehensive income Cash Flow Statement and the statement of changes in equity dealtwith by this Report are in agreement with the books of account

(d) In our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B" our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company's internal financialcontrols over the financial reporting.

(g) With respect to the other matters to be included in the auditors'report in accordance with the requirements of section 197(16) of the Act as amended. Inour opinion and to the best of our information and according to the explanation given tous the remuneration paid by the Company to its directors during the year is inaccordance with the provision of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor'sReport in accordance Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

i. The Company did not have litigations having impact on financialposition in its Standalone financial statements none reported for the current year. ;

ii. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There is no amount required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. (a) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the company toor in any other person(s) or enti'ty(ies) including foreign entities("intermediaries") with the understanding whether recorded in writing orotherwise that the intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the company("ultimate beneficiaries") or provided any guarantee security or the like onbehalf of the ultimate beneficiaries.

(b) The management has represented that to the best of its knowledgeand belief no funds have been received by the company from any person(s) or enti'ty(ies)including foreign entities ("funding parties") with the understanding whetherrecorded in writing or otherwise that the company shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe funding party ("ultimate beneficiaries") or provided any guarantee securityor the like on behalf of the ultimate beneficiaries.

(c) Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under sub clause (i) and (ii) of Rule 11 (e)as provided under (a)and (b) above contain any material misstatement.

v. The Company has not declared or paid any dividend during the yearfor the period under consideration.

For Sanjay Soni & Associates
Chartered Accountants
ICAI Firm Registration No. 113251W
CA Sanjay Soni
Partner
Place : Vadodara Membership No. 040616
Date : 30.05.2022 ICAI UDIN: 22040616AJVZMO1710

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT - 31st MARCH2022 (Referred to in paragraph 1 under ' Reports on other Legal and RegulatoryRequirements ' section of our Report of even date)

In terms of information and explanations sought by us and given by theCompany and the books of account and records examined by us in the normal course of auditand to the best of our knowledge and belief we state that

(i) (a) The Company has maintained proper records showing full particulars includingquantitative detail and situation of fixed assets i.e. Property Plant and Equipment(PPE).

(b) The Company during the year under consideration did not own any intangibleassets.

(c) The property plant and equipments were physically verified during the currentyear in accordance with this program. According to the information and explanations givento us no material discrepancies were notice on such verification.

(d) The Land in possession of the Company is on a long term lease from GIDC. Advanceof Rs 1.03 crore is paid for purchase of another land from Firm in which Director is apartner and the process of transferring title deed for the same is in progress.

(e) The Company has not revalued any of its property

No Proceedings have been initi'tated or are pending against the company for holding anybenami property under the Benami Transactions ( Prohibition) Act1988 (45 of 1988) andrules thereunder.

(ii) (a) As explained to us the inventories were physically verified during the yearby the management at reasonable intervals and no material discrepancies of 10% or mor werenoticed on physical verification.

(b) During the year the company's sanctioned limit for working capital on the basisof security of current assets do not exceed rupees Five Crore .Hence no commentsrequired.

(iii) During the year the company has not made any investments in or provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms Limited Liability Partnerships or any other parties or topromoters or related parties.

(iv) The Company has not granted any loans or made any investments guarantees andsecurity to which the provisions of sections 185 and 186 of the Companies Act 2013 apply.

(vi) The provisions for maintenance of cost records under section 148 of the Act arenot applicable for the Company for the current year as the turnover for PY does not exceedprescribed limit.

(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding Goods and Service Tax Provident fund Employees State Insurance Income taxsales Tax Service Tax Custom Duty Excise Duty Value Added Tax cess and otherstatutory liabilities except as under:

(Rs in Lakh)
Sl No Dues under Nature and amount of demand Period to which amount relates Due date Date of Payment
1 Profession Tax Act 1987 Prof. Tax due 12.35 FY 2016- 2022 - -
The Income Tax Act 1961 TDS demand 5.99 FY 2008-2022 - -

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no dues referred to in 9a) above as on31st March 2022 which has not been deposited on account of dispute except asunder :

(Rs in Lakh)

Name of status Nature of Dues Forum where dispute is pending Period(s) to which the amount relates Amount unpaid (Rs in Lakh) Amount paid under Protest
The Income Tax Act 1961 Income Tax demand CPC Banglore FY 2019-20 29.65 -

(viii) There are no amounts that are in the nature of undisclosedtransactions or amounts surrendered as income in assessments under the Income Tax Act Act1961 (43 of 1961)

(ix) (a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment f interest thereon to any lender.

(b) The Company is not declared as wilful defaulter by any bank orfinancial institution or other lender.

(c) To the best of our knowledge and belief in our opinion term loansavailed by the Company were applied by the Company during the year for the purposes forwhich the loans were obtained.

(d) On an overall examination of the financial statements of theCompany funds raised on short term basis have prima facie not been used during theyear for long term purposes by the Company.

(e) The Company does not have any subsidiaries associates or jointventures.

(x) (a) The Company has not raised during the year any amounts by wayof initial public offer or further public offer ( Including debt instruments).

(b) The Company has not made any preferential allotment or privateplacement of convertible debentures( fully partially or optionally convertible) duringthe year.

(xi) (a) During the course of our audit we have not come across anyinstances of fraud by the Company or any fraud on the Company.

(b) There is no instance during the year under consideration thatnecessitates reporting in Form ADT-4.

(c) There are no instance of whistle blower complaints received duringthe year by the Company.

(xii) Company is not a Nidhi Company.

(xiii) All transactions with the related party are in compliance with section 177 and188 of the

Companies Act where applicable and the details have been disclosed in the financialstatements etc. As required by the applicable accounting standards.

(xiv) (a) Company has an internal audit system commensurate with the size and nature ofits business. The Company has engaged a firm of Chartered Accountants to carry outinternal audit and submit their report to the board of Directors and audit committee.

(b) The report of the internal auditors for the period under audit have been consideredby us.

(xv) The Company has not entered into any non cash transactions with directors orpersons connected with them.

(xvi) (a) The Company is not required to be registered under section 45 - IA of theReserve Bank of India Act 1934 (2 of 1934)

(b) The Company has not conducted any non banking financial or housing financeactivities without a valid certificate of registration (COR) from the Reserve Bank ofIndia as per the Reserve Bank of India Act 1934.

(c) The Company is not a core investment company ( CIC) as defined in the regulationsmade by the Reserve Bank of India.

(d) The Company is not part of any "group" as defined under the applicableregulati'ons/guidelines.

(xvii) The Company has not incurred cash losses in the financial year and in theimmediately preceding financial year.

(xviii) There has not been any resignation of the statutory auditors during theyear.(xix) On the basis of the financial ratios aging and expected dates of realisationof financial assets and payment of financial liabilities other information accompanyingthe financial statements and our knowledge of the Board of Directors and managementplans we are of the opinion that no material uncertainty exists as on the date of ouraudit report that company is capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate.

(xx) (a) The provisions of section 135 of the Companies Act 2013 regarding CSR Schemeare not applicable to the Company.

(b) No reporting required under CSR scheme in view of (a) above.

(xxi) The Company does not have any subsidiary or associates or joint ventures theaccounts of which are to be consolidated and as such there are no consolidated financialstatements.

For Sanjay Soni & Associates
Chartered Accountants
ICAI Firm Registration No. 113251W
CA Sanjay Soni
Partner
Place : Vadodara Membership No. 040616
Date : 30.05.2022 ICAI UDIN: 22040616AJVZMO1710

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 (f) under ' Reports on other Legal andRegulatory Requirements ' section of our Report of even date)

Report on the Internal Financial Controls over financial reportingunder clause ( i ) of sub- section 3 of Section 143 of the Companies Act 2013 ( the"Act")

We have audited the internal financial controls over financialreporting of Link Pharma Chem Ltd. ("the company") As of March 31 2022in conjunction with our audit of the standalone Ind As financial statements of the Companyfor the year ended on that date.

Management's responsibility for internal Financial Controls

The Company's Management is responsible for establishing andmaintaining Internal financial controls based on the Internal Control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ( ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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 of reliablefinancial information as required under the Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's Internalfinancial controls over financial reporting based on our audit. We conducted our auditaccordance with the Guidance Note on Audit of internal Financial Controls Over FinancialReporting ( " the Guidance Note") and the Standards on Auditing prescribed undersection 143 (10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued bythe ICAI. 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 audit procedures to obtain audit evidenceabout the adequacy of internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining and understanding of internal financial controlsover financial reporting assessing the risk that material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risk of material misstatement of the financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess 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 control overfinancial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company are beingmade only in accordance with authorisations of management and directors of the company;and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould 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 tobe detected . 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 conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respect an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting criteria 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.

For Sanjay Soni & Associates
Chartered Accountants
ICAI Firm Registration No. 113251W
CA Sanjay Soni
Partner
Plac : Vadodara Membership No. 040616
Date :30.05.2022 ICAI UDIN: 22040616AJVZMO1710

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