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Mangalam Drugs and Organics Ltd.

BSE: 532637 Sector: Health care
NSE: MANGALAM ISIN Code: INE584F01014
BSE 15:01 | 14 Aug 100.50 -3.45
(-3.32%)
OPEN

109.60

HIGH

109.60

LOW

99.40

NSE 14:49 | 14 Aug 101.20 -4.10
(-3.89%)
OPEN

106.90

HIGH

106.90

LOW

99.50

OPEN 109.60
PREVIOUS CLOSE 103.95
VOLUME 12176
52-Week high 225.90
52-Week low 68.55
P/E 8.00
Mkt Cap.(Rs cr) 159
Buy Price 100.10
Buy Qty 53.00
Sell Price 100.50
Sell Qty 51.00
OPEN 109.60
CLOSE 103.95
VOLUME 12176
52-Week high 225.90
52-Week low 68.55
P/E 8.00
Mkt Cap.(Rs cr) 159
Buy Price 100.10
Buy Qty 53.00
Sell Price 100.50
Sell Qty 51.00

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

Company auditors report

TO THE MEMBERS OF MANGALAM DRUGS & ORGANICS LIMITED Report on the FinancialStatements

We have audited the accompanying financial statements of MANGALAM DRUGS & ORGANICSLIMITED("the Company")which comprise the st March 2017 theStatement of Profit and Loss the Cash Flowyear then ended and a summary of thesignificant accounting polic Statement for the ies 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 Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

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 misstat material ement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtainedissufficien t and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit/ loss and its cash flows for the 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 section 143(11) of the Act we givein the ‘Annexure

A’ a statement on the matters specified in paragraph and Nos.3 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 companyhavebeenaudi ted 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 andLossandtheCas h Flow Statement dealtwith by this Report are in agreement with the books of account.

(e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(f) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act.

(g) With respect to adequacy of internal financial controls over financial reporting ofthe company and the operating effectiveness of such controls refer to our separate reportin

‘Annexure B’

(h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition .

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The company has provided requisite disclosures in the financial statements as tothe dealings in Specified Bank Notes during the period from November 08 2016 to

December 30 2016 and these are in accordance with the books of accounts maintained bythe Company. Refer Note35tothefinan cial statements

‘Annexure A’ and ‘Annexure B’ attached hereto form an integral part of this report
Place: Mumbai Name of the signatory: CA Rakesh K Milwani
Dated: 08th May 2017 Membership No. No. 036099
Name of the proprietary firm:MILWANI ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 106405W

Annexure – A to Independent Auditors’ Report

Forming partof the Independent Auditors’ Report of even date on the financialstatement as of and for the year ended 31st March 2017.

i. In respect of 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.

(b) As explained to us all the assets have been physically verified by the managementin a phased periodical manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the Company does not have any immovableproperty in its name and therefore the said clause is not applicable.

ii. In respect of Inventories:

(a) According to the information and explanation given to us the physical verificationof inventory has been conducted at reasonable intervals by the management.

(b) According to the information and explanation given to us the discrepancies betweenphysical stock and the book stock were not material and have been properly dealt with inthe books of accounts.

iii. In respect of the loans secured or unsecured granted by the company tocompanies firms limited liability partnership or other parties covered in the registermaintained under section 189 of the Companies Act 2013.

(a) The Company has not granted loans secured or unsecured to companies firmslimited liability partnership or other parties covered in the register maintained underSection 189 of Companies Act 2013. Hence we express our inability to give our comments onloan receipts or principal interest or steps taken for recovery of overdue amount ofprincipal and interest.

iv. In our opinion and according 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. According to information andexplanations provided to us the company has not accepted any deposit from public asdefined according to the provisions of Section 73 to 76 of the Companies Act 2013 andthe Rules framed there under. Hence we offer no comments in respect of any contraventionsthereto. No order has been passed by Company Law Board or National Company Law Tribunal orthe Reserve Bank of India or any Court or other tribunal in respect of any deposit asdefined according to the provisions of Section 73 to 76 of the Companies Act 2013 andRules framed there under. vi. The company is maintaining the cost accounting records asprescribed by the Central Government under Section 148(1) of the Companies Act 2013 forthe Company. vii. In respect of Statutory Dues:

(a) According to information and explanations given to us and based on records of theCompany examined by us in our opinion the Company is generally regular in depositing theundisputed statutory dues including Provident Fund Employees’ State InsuranceIncome Tax Sales Tax Service Tax duty of Customs duty of Excise Value Added Tax Cessand other statutory dues as applicable with the appropriate authorities. As explained tous the Company did not have any such dues outstanding as on the last day of the financialyear for more than six months from the date the same became payable.

(b) The following are the disputed dues which have not been deposited :

No. Nature of Dues Amount (Rs. In Lacs) Forum where dispute is Pending
1) Excise Duty & Service Tax
a) 2011 12 24.82 CESTAT Ahmedabad
b) 2011 12 183.55 CESTAT Ahmedabad
Sub Total 208.37
2) Income Tax
a) AY-2002 2003 00.86 Income Tax Appellant Tribunal Mumbai
b) AY-2003 2004 00.88 Income Tax Appellant Tribunal Mumbai
c) AY-2004 2005 54.93 Income Tax Appellant Tribunal Mumbai
d) AY-2005 2006 1.36 Income Tax Appellant Tribunal Mumbai.
e) AY-2006 2007 21.42 Commissioner of Income Tax Appeals IV Mumbai
f) AY-2011 2012 56.14 Income Tax Appellant Tribunal Mumbai
Sub Total 135.59
Total 343.96

viii. As per our examination and according to the information and explanation given tous and based on records of the company examined by us the company has during the yearnot defaulted in the repayment of loans or borrowings to a financial institutions bankGovernment or dues to debenture holders.

ix. As per our examination and according to the information and explanation given to usand based on records of the company examined by us the company has during the year underreview not raised any money via initial public offer or by way of further public offer(including debt instruments) or new term loans. The term loans outstanding at thebeginning of the year have been applied for the purpose for which they were raised. x.According to the information and explanations given to us no instance of material fraudby or on the Company by its officers or employees has been noticed or reported during theyear under review. We therefore express our inability to express any opinion on thenature of fraud or amount involved therein. xi. As per the Notification No. G.S.R. 463 (E)dated June 05 2015 the provision of section 197 r.w. Schedule V of the Act is notapplicable to the Company. Accordingly paragraph 3(xi) of the order is not applicable.xii. In our opinion the company is not a Nidhi Company. Accordingly paragraph 3(xii) ofthe Order is not applicable.

xiii. According to the information and explanations provided to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with Section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards. xiv. According to the information and explanations provided to usand based on the examination of records of the company the company has made preferentialallotment by way of private placement of shares. According to the information andexplanations provided to us and based on our examination of the records of the Companywe are of the opinion that requirements of section 42 of the Companies Act 2013 has beencomplied with and the amount raised has been used for the purposes for which the fundswere raised. xv. According to the information and explanations provided to us and basedon our examination of the records of the Company the company has not entered into anynon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable. xvi. According to the information and explanationsprovided to us and based on our examination of the records of the Company the Company isnot required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

Place: Mumbai Name of the signatory: CA Rakesh K Milwani
Dated: 08th May 2017 Membership No. No. 036099
Name of the proprietary firm:MILWANI ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 106405W

Annexure – B to Independent Auditors’ Report

Forming part of the Independent Auditors’ Report of even date on the financialstatement as of and for the year ended March 31st 2017. Report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of MANGALAMDRUGS & ORGANICS LIMITED ("the Company") as of March 31st 2017in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing and maintainingfinancial 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 safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialin formation as required under the Companies Act 2013.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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

5. 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (a) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (b) 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 authorizations ofmanagement and directors of the company; and (c) 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

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal reporting may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial financial controls over financial reporting wereoperating effectively as at March 31 2017 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.

Place: Mumbai Name of the signatory: CA Rakesh K Milwani
Dated: 08th May 2017 Membership No. No. 036099
Name of the proprietary firm:MILWANI ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 106405W