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Mangalam Drugs and Organics Ltd.

BSE: 532637 Sector: Health care
NSE: MANGALAM ISIN Code: INE584F01014
BSE 00:00 | 19 Oct 79.10 0.65
(0.83%)
OPEN

78.00

HIGH

79.85

LOW

76.00

NSE 00:00 | 19 Oct 78.45 -0.05
(-0.06%)
OPEN

82.65

HIGH

82.65

LOW

76.00

OPEN 78.00
PREVIOUS CLOSE 78.45
VOLUME 4322
52-Week high 225.90
52-Week low 64.20
P/E 7.64
Mkt Cap.(Rs cr) 125
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 78.00
CLOSE 78.45
VOLUME 4322
52-Week high 225.90
52-Week low 64.20
P/E 7.64
Mkt Cap.(Rs cr) 125
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mangalam Drugs and Organics Ltd. (MANGALAM) - Auditors Report

Company auditors report

To the members of Mangalam Drugs & Organics Limited Report on the Ind AS FinancialStatements

We have audited the accompanying Ind AS financial statements of Mangalam Drugs &Organics Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement (hereinafter referred to as "Ind AS FinancialStatements) the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for Ind AS 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with relevant rules there under and otheraccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements is free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of IndAS financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the Company's preparation ofInd AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 and itsloss(including other comprehensive income) its cash flows and the changes in equity forthe year 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 a statement on the matters specified in theparagraph 3 and 4 of the order

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;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The accounts of the branch offices of the company have been audited by us undersection 143(8) of the Act and have been properly dealt with by us in preparing thisreport;

(d) The Balance sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport 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.

(f) On the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of the act;

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate report in "Annexure B".

(h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

(i) The Company has disclosed the impact of pending litigations as at March 312018 onits financial position in its financial statements;

(ii) The Company does not have any long term contract including derivative contracts.Hence the question of material foreseeable losses does not arise.

(iii) There were no amounts required to be transferred to the Investor Education andProtection Fund by the company.

For Batliboi & Purohit

Chartered Accountants

Firm Registration Number: 101048W

CA. Raman D Hangekar

Senior Partner

Membership Number: 030615

Place: Mumbai

Date: 28th May 2018

Annexure - A to the Auditors' Report

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

(b) As explained to us the fixed assets have been physically verified by management atreasonable intervals under a phased programme of verification. In accordance with thisprogram a portion of the fixed assets has been physically verified by the managementduring the year and no material discrepancies have been noticed on such verification. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of company and nature of its assets.

(c) The title deeds of the immovable properties as disclosed in schedule of fixedassets to the financial statements are the Company.

(ii) The physical verification of inventory has been conducted at reasonable intervalsby the management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. In our opinion the frequency of verificationis discrepancies have been noticed on such verification.

(iii) In our opinion and according to the information and explanation given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnership or other parties covered in the register maintained under Section189 of the Act. Accordingly paragraph 3 (iii) (a) 3 (iii) (b) and 3 (iii) (c) of theorder are not applicable to the Company.

(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 Act with respectto loans investments guarantees and securities.

(v) The Company has not accepted any deposits from the public within the meaning ofSection 73 to 76 of the Act and Rules framed there under to extent notified.

(vi) We have broadly reviewed the books of accounts maintained by the company pursuantto the order made by the Central Government for maintenance of cost records prescribedunder sub-section 1 of section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have however not made adetailed examination of the said records with a view to determine whether they areaccurate or complete.

(vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund employee state insurance incometax sales tax service tax GST duty of customs duty of excise value added tax cessand any other material statutory dues as applicable with the appropriate authorities.

According to the information and explanations given to us and the records of thecompany examined by us no undisputed amounts payable in respect of provident fundemployee state insurance income tax sales tax service tax GST duty of customs dutyof excise value added tax cess and any other material statutory dues were in arrears asat 31 March 2018 for a period of more than six months from the date they became payableexcept an undisputed statutory due of ESIC (deducted from the payment made to contractors) amounting to Rs. 6810559 is payable from last 2 years.

b) According to the information and explanations given to us and the records of thecompany examined by us the dues in respect of sales tax income-tax duty of customsservice tax GST entry tax value added tax central sales tax duty of excise whichhave not been deposited with the appropriate authority on account of any disputes are asunder:

Sr.No Excise Duty & Service Tax Amount (Rs.in Lacs) Forum where dispute is pending
a) 2010-2011 5.20 CESTAT AHMEDABAD
b) 2011-2012 208.37 CESTAT AHMEDABAD
c) 2015-2016 171.77 APPEAL-BARODA
d) 2016-2017 8.37 APPEAL-VALSAD
Total Amt (In Lacs) (A) 393.71
Sr.No INCOME TAX Amount (Rs.in Lacs) Forum where dispute is pending
a) AY-2002-2003 0.86 Income Tax appellant Tribunal Mumbai
b) AY-2003-2004 0.88 Income Tax appellant Tribunal Mumbai
c) AY-2005-2006 1.36 Income Tax appellant Tribunal Mumbai
d) AY-2006-2007 21.42 Commissioner of Income tax Appeals-IV Mumbai
Income Tax appellant Tribunal Mumbai has referred the matter to
e) AY-2011-12 56.14 assessing officer
Total Amt.(In Lacs) (B) 80.66
Sub Total Amt 474.37

(viii) According to the records of the company examined by us and the information andexplanation given to us the company has not defaulted in repayment of loans or borrowingsto any financial institution bank or Government as at the Balance sheet date.

(ix) The Company did not raise any moneys by way of initial public offer or furtherpublic offer (including debt instruments) nor has obtained any term loans during the yearhence paragraph 3 (ix) of the order is not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstances of material fraud by the Company or on the Company by its officers oremployeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required under Ind AS andCompanies Act 2013.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Therefore paragraph 3(xiv) of the order is not applicable to the Company.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the order are notapplicable to the Company.

For Batliboi & Purohit

Chartered Accountants

Firm Registration Number: 101048W

CA. Raman D Hangekar

Senior Partner

Membership Number: 030615

Place: Mumbai

Date: 28th May 2018.

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 financialreporting of controlsover MangalamDrugs & Organics Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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'). 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 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 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 are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion and to the best of our information & according to the explanationsgive to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial at 31 March 2018based on the internal control over financial reporting criteria established by the Companyconsidering the essential 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 Batliboi & Purohit

Chartered Accountants

Firm Registration Number: 101048W

CA. Raman D Hangekar

Senior Partner

Membership Number: 030615

Place: Mumbai

Date: 28th May 2018.