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Makers Laboratories Ltd.

BSE: 506919 Sector: Health care
NSE: N.A. ISIN Code: INE987A01010
BSE 00:00 | 01 Jul 144.00 1.05
(0.73%)
OPEN

144.95

HIGH

147.00

LOW

141.05

NSE 05:30 | 01 Jan Makers Laboratories Ltd
OPEN 144.95
PREVIOUS CLOSE 142.95
VOLUME 1003
52-Week high 228.35
52-Week low 130.00
P/E 496.55
Mkt Cap.(Rs cr) 85
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 144.95
CLOSE 142.95
VOLUME 1003
52-Week high 228.35
52-Week low 130.00
P/E 496.55
Mkt Cap.(Rs cr) 85
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Makers Laboratories Ltd. (MAKERSLABS) - Auditors Report

Company auditors report

To

The Members of

Makers Laboratories Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the Standalone Financial Statements of Makers Laboratories Limited("the Company") which comprise the Balance Sheet as at March 31 2021 and theStatement of Profit and Loss (including Other Comprehensive Income) Statement of Changesin Equity and Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of Significant Accounting Policies and other explanatoryinformation. (hereinafter referred to as "the Standalone Financial Statements").In our opinion and to the best of our information and according to the explanations givento us the aforesaid Standalone Financial Statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 the profit (including othercomprehensive 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 Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of theStandalone Financial Statements under the provisions of the Companies Act 2013 and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on theStandalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone financial statements of the current period.These matters were addressed in the context of our audit of the Standalone financialstatements as a whole and in forming our opinion thereon we do not provide a separateopinion on these matters. We have determined that there are no key audit matters to becommunicated in our report.

Information Other than the Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the Other Information. The otherinformation comprises the information included in the Board's report including theDirectors Report Chairman's Statement Management Discussions and Analysis SummarizedFinancial Information Corporate Governance and Shareholder's Information but does notinclude the Standalone Financial Statements and our Independent Auditors' Report thereon.Our opinion on the Standalone Financial Statements does not cover the Other Informationand we do not and will not express any form of assurance or conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the Other Information identified above and in doing so consider whether theOther Information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information that we obtained priorto the date of this auditor's report we conclude that there is a material misstatement ofthis Other Information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and those Charged with Governance for the StandaloneFinancial Statements The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Standalone Financial Statements that give a true and fair view ofthe financial position financial performance changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative 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 Financial Statements

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

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

1. Identify and assess the risks of material misstatement of the standalone 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.

2. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

5. Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate make it probable that the economicdecisions 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 financial statementsWe 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 withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the KeyAudit Matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits 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 attached 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The Balance Sheet the Statement of Profit and Loss theCash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account. d. In our opinion the aforesaid Standalone FinancialStatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014. e. On the basis of the writtenrepresentations received from the directors as on March 31 2021 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2021 from beingappointed as a director in terms of Section 164 (2) of the Act. f. With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in"Annexure B". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting.

g. 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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act read with Schedule V to the Companies Act 2013..h. With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its standalonefinancial statements – Refer Note 37 to the standalone financial statements ii. TheCompany did not have any long-term contracts including derivative contracts for whichthere were material foreseeable losses iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany.

For Natvarlal Vepari & Co.
Chartered Accountants
Firm Registration No- 106971W
N Jayendran
Partner
Mumbai M. No. – 40441
Dated: June 10 2021 UDIN: 21040441AAAABM2117

ANNEXURE A

To the Independent Auditors' Report on the Financial Statements of Makers LaboratoriesLimited

(i) a. The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of its Property Plant and Equipments. b.Property Plant and Equipments have been physically verified by the management during theyear and no material discrepancies were identified on such verification. b. We haveverified the title deeds of immovable properties forming part of Property Plant andEquipments produced before us by the management and based on such verification we confirmthat the same are held in the name of the company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year. The discrepancies noticed between the book stock and thephysical stocks were not material and they have been properly dealt with in the books ofaccounts. (iii) The Company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedu/s 189 of the Companies Act 2013 and hence the sub clauses (a) (b) and (c) of clause3(iii) of the Companies (Auditor's Report) Order2016 is not applicable.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013with respect to investment made during the year. The Company has not given any loansguarantees or security during the year. (v) The Company has not accepted deposits from thepublic pursuant to sections 73 to 76 or any other relevant provisions of the CompaniesAct 2013 and rules framed thereunder. As informed to us there

Name of statute Nature of dues Amount (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Order under section 143(3) r/w section 147 11.64 AY 2010-11 CIT (Appeals)
Income Tax Order under section 143(3) r/w section 147 57.46 AY 2011-12 CIT (Appeals)
Income Tax Order under section 143(3) r/w section 147 11.17 AY 2013-14 CIT (Appeals)
Income Tax Order under section 143(3) r/w section 147 12.02 AY 2014-15 CIT (Appeals)
Income Tax Order under section 143(3) r/w section 147 21.64 AY 2015-16 CIT (Appeals)
Total 113.93

is no order that has been passed by Company Law Board or National Company Law Tribunalor Reserve Bank of India or any Court or any other tribunal in respect of the saidsections.

(vi) As informed to us the maintenance of the cost records under the sub-section (1)of section 148 of the Companies Act 2013 has been prescribed and we are of the opinionthat prima facie the prescribed accounts and records have been so made and maintained. Wehave not however carried out a detailed examination of the records to ascertain whetherthey are accurate or complete.

(vii) a. The Company has been generally regular in depositing undisputed statutory duesincluding Provident fund Employees State Insurance Income Tax Sales Tax Service Taxduty of Customs duty of Excise Goods and Services Tax cess and other statutory dues tothe appropriate authorities during the year. According to the information and explanationsgiven to us no undisputed amount payable in respect of the aforesaid dues wereoutstanding as at March 31 2021 for a period of more than six months from the date theybecame payable. b. According to the information and explanations given to us there are nodues of Income tax or Sales Tax or duty of customs or duty of excise or Value Added Taxwhich have not been deposited on account of any dispute except as given below:

(viii) According to the information and explanations given to us and based on thedocuments and records produced to us the Company has not defaulted in repayment of loansor borrowings to a financial institution Government or bank. Further the company has notobtained any borrowings by way of debentures. (ix) The company has not raised any money byway of initial public offer / further public offer (including debt instruments) during theyear. On the basis of the documents submitted to the bankers and the other records perusedby us we have to state that the term loan taken during the year have been applied for thepurpose for which the loan was obtained.

(x) According to the information and explanations given to us and to the best of ourknowledge and belief no fraud by the Company or any fraud on the Company by its officersor employees has been noticed or reported during the year.

(xi) The managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) The Company is not a Nidhi Company. Hence clause 3(xii) of Companies (AuditorsReport) Order 2016 is not applicable to the Company.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of the Companies Act 2013 in so far as our examination of the proceedings of themeetings of the Audit Committee and Board of Directors are concerned. The details ofrelated party transactions have been disclosed in the Financial Statements as required bythe applicable Accounting Standards.

(xiv) The company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year under review and hence theclause 3(xiv) of the Companies (Auditors Report) Order 2016 is not applicable to theCompany.

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him and hence the clause 3(xv) of the Companies (Auditors Report)Order 2016 is not applicable to the Company.

(xvi) The nature of business and the activities of the Company are such that theCompany is not required to obtain registration under section 45-IA of the Reserve Bank ofIndia Act 1934.

For Natvarlal Vepari & Co.
Chartered Accountants
Firm Registration No- 106971W
N Jayendran
Partner
Mumbai M. No. – 40441
Dated: June 10 2021 UDIN: 21040441AAAABM2117

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of Subsection 3 of Section 143 of the Companies Act 2013 ("the Act")We have audited the internal financial controls with reference to Financial Statements ofMakers Laboratories Limited ("the Company") as of March 31 2021 in conjunctionwith our audit of the Standalone Financial Statement of the Company for the year ended onthat 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 with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued 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 ofits 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Financial Statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to Financial Statements wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system with reference to Financial Statementsand their operating effectiveness. Our audit of internal financial controls with referenceto Financial Statements included obtaining an understanding of internal financial controlswith reference to Financial Statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. 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.

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 systemwith reference to Financial Statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to Financial Statements 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 withreference to Financial Statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements.

Because of the inherent limitations of financial controls with reference to FinancialStatements 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 with reference toFinancial Statements to future periods are subject to the risk that the internal financialcontrol with reference to Financial Statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to Financial Statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2021 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.

For Natvarlal Vepari & Co.
Chartered Accountants
Firm Registration No- 106971W
N Jayendran
Partner
Mumbai M. No. – 40441
Dated: June 10 2021 UDIN: 21040441AAAABM2117

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