Mavens Biotech Ltd.
|BSE: 590083||Sector: Others|
|NSE: N.A.||ISIN Code: INE856C01047|
|BSE 00:00 | 04 Mar||Mavens Biotech Ltd|
|NSE 05:30 | 01 Jan||Mavens Biotech Ltd|
|BSE: 590083||Sector: Others|
|NSE: N.A.||ISIN Code: INE856C01047|
|BSE 00:00 | 04 Mar||Mavens Biotech Ltd|
|NSE 05:30 | 01 Jan||Mavens Biotech Ltd|
To the Members of Mavens Biotech Limited
Report on the Audit of the Ind AS Financial Statements: -
We have audited the standalone Ind AS financial statements of Mavens Biotech Limited("the Company") which comprise the balance sheet as at 31 March 2019 andthe statement of profit and loss (including other comprehensive income) the statement ofchanges in equity and the cash flow statement for the year then ended and notes to thestandalone Ind AS financial statements including a summary of the significant accountingpolicies and other explanatory information (herein after referred to as standaloneInd AS financial statements').
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 (the Act') in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31 March 2019 its losses (includingother comprehensive income) changes in equity and its cash flows for the year ended onthat date.
Basis for Opinion: -
We have conducted our audit in accordance with the Standards on Auditing (SAs)specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the standalone Ind ASfinancial Statements section of our report. We are independent of the Company inaccordance 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 Ind AS financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese 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.
Key Audit Matters: -
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentyear. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
We have determined the matters described below to be the key audit matters to becommunicated in our report:
Other Information: -
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.
Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
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 (including other comprehensive income) cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards ("IND AS") specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the standalone Ind AS 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.
The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the standalone Ind AS financial statements:-
Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial 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 Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting 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 standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We 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 with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Other Matter: -
The audited standalone financial statements for the year ended 31st March 2018 wascarried out and reported by M/s. Mohindra Arora & Co. vide their unmodified auditreport dated 30th May 2018 whose report has been furnished to us by the management andwhich has been relied upon by us for the purpose of our audit of the standalone financialstatements. Our audit report is not qualified in respect of this matter.
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 "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act based on our audit we report to theextent applicable 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 standalone financial statements dealt with by this Report are in agreement withthe relevant books of account;
d. In our opinion the aforesaid financial statements comply with the IND AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofSection 164(2) of the Act.
f. With respect to the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate report in"Annexure B''.
g. 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 has disclosed the impact of pending litigations on its financialposition in the standalone financial statements;
ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading 'Report on Other Legal and RegulatoryRequirements' of our Report of even date)
i. In respect of its property plant & equipment:
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment;
b. As explained to us the property plant & equipment have been physically verifiedby the management at reasonable intervals. No material discrepancies were noticed on suchphysical verification.
c. According to the information and explanations given to us there are no immovableproperties owned by the Company under property plant & equipment. Accordinglyparagraph 3 (i) (c) of the Order is not applicable to the Company.
ii. The Company does not have any inventory as at 31st March 2019.Accordingly clause (ii) of paragraph 3 of the Order is not applicable to the Company.
iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Accordingly clauses (iii) (a) to (c) of paragraph3 of the Order are not applicable to the Company.
iv. According to the information and explanations given to us the company has notprovided any loans guarantees or securities which fall under the purview of Section 185of the Companies Act 2013. The Company has complied with the provisions of Section 186 ofthe Act in respect of investments made and outstanding at the year- end.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public in terms of the directives issuedby the Reserve Bank of India and the provisions of Sections 73 to 76 of the Act or anyother relevant provisions of the Companies Act 2013 and the Rules framed thereunder.Accordingly clause (v) of paragraph 3 of the Order is not applicable to the Company.
vi. As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub - section (1) of Section 148 of the Companies Act 2013 inrespect of the activities carried on by the Company. Accordingly clause (vi) of paragraph3 of the Order is not applicable to the Company.
vii. In respect of statutory dues:
a. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance incometax sales-tax service tax duty of customs duty of excise value added tax cess andany other statutory dues as applicable to the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid statutory dues were in arrears as at 31st March2019 for a period of more than six months from the date they became payable except IncomeTax dues amounting to ^ 24.49 lacs/-.
b. According to the records of the Company there are no dues of sales tax or servicetax or duty of customs or duty of excise or value added tax which have not been depositedon account of any dispute other than the Income Tax. According to the Information andexplanations given to us the dues in respect of Income Tax that has not been depositedwith appropriate authorities on account of dispute and the forum where the disputes arepending are given below:
viii. The Company has not raised/ obtained any loans or borrowings from financialinstitutions or banks or government or by issue of debentures. Accordingly paragraph 3(viii) of the Order is not applicable to the Company.
ix. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable to the Company.
x. According to the information and explanations given to us and based on auditprocedures performed and representations obtained from the management we report that nofraud by the Company or any fraud on the company by its officers or employees has beennoticed or reported during the year under audit.
xi. According to the information and explanations given to us the Company has paid /provided managerial remuneration in accordance with the requirements of the provisions ofSection 197 read with Schedule V to the Companies Act 2013.
xii. According to the information and explanations given to us the Company is not aNidhi Company. Accordingly paragraph 3 (xii) of the Order is not applicable to theCompany.
xiii. According to the information and explanations given to us during the year underreview the Company has not entered into any transaction with Related Parties that requireapproval under Section 177 and Section 188 of the Companies Act 2013 and the Rules madethereunder. Accordingly paragraph 3(xiii) of the Order is not applicable to the Company.
xiv. During the year under review the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures. Accordinglyparagraph 3(xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with its directors or persons connected to itsdirectors hence provisions of Section 192 of the Companies Act 2013 are not applicableto the company. Accordingly reporting under clause (xv) of Paragraph 3 of the Order isnot applicable to the Company.
xvi. According to the information and explanations given to us the Company is notrequired to be registered under Section 45- IA of the Reserve Bank of India Act 1934.
"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2(f) under the heading 'Report on Other Legal and RegulatoryRequirements' section of our Report of even date)
Independent Auditors' Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of MavensBiotech Limited ("the Company") as of 31st March 2019 in conjunction with ouraudit of the financial statements of the Company for the year ended on 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Auditor's 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting: -
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company 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 over Financial Reporting: -
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 financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.