Mercury Laboratories Ltd.
|BSE: 538964||Sector: Health care|
|NSE: N.A.||ISIN Code: INE947G01011|
|BSE 00:00 | 22 Sep||718.00||
|NSE 05:30 | 01 Jan||Mercury Laboratories Ltd|
|Mkt Cap.(Rs cr)||86|
|Mkt Cap.(Rs cr)||86.16|
Mercury Laboratories Ltd. (MERCURYLABS) - Auditors Report
Company auditors report
To The Members of Mercury Laboratories Limited Report on theStandalone Financial Statements Opinion
We have audited the accompanying Financial Statements of MERCURYLABORATORIES LIMITED ("the Company") which comprise the Balance sheet as at31stMarch 2020 the Statement of Profit & Loss and Statement of Cash Flows for theyear then ended 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 the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312020 and profit and its cash flows for the yearended on that date.
Basis for Opinion
We have conducted our audit in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our auditof the financial statements under the provisions of the Companies Act 2013and the Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
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.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company Inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Companies Act 2013 read with Rule7 of the Companies (Account) Rules 2014. This responsibility also Includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe 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.
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 Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial 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 financial statements.
A further description of the auditor's responsibilities for the auditof the financial statements is located in Appendix A. This description forms part of ourauditors report.
Appendix A to Independent Auditors* Report
Further description of Auditor's responsibilities for audit offinancial statements
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of thefinancial 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 inorder to design audit procedures that are appropriate in the circumstances. Under section143(3X0 of the Companies Act 2013 we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating 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 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 theCompany to cease to continue as a going concern
- Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that ach ieves fai rpresentation.
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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order. 2016("the order*) issued by the Central Government in terms of section 143 (11) of theCompanies Act 2013 we enclose in the Annexure-A a statementon the matters specified inparagraph 3 &4 of the said Order to the extent applicable.
2. As required by Section 143(3) oftheAct we reportthat:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessaryforthe purpose of ourAudit;
b) In our opinion proper books of accounts as required by the law havebeen kept by the Company so far as appears from our examination of the said books;
c) The Balance Sheet Statement of Profit & Loss and Cash FlowStatement dealt with by this report are in agreement with the books of accounts of theCompany;
d) In our opinion the aforesaid Financial Statements comply with theAccounting Standards specified under Section 133 oftheAct read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basts of written representations received from the directorsas on 31 "March 2020 and taken on record by the Board of Directors we report thatnone of the directors is disqualified as on 31" March 2020 from being appointed asadirector of the Company in terms of Section 164(2)of the Act
f) With resped to the adequacy of the internal financial controls overfinancial reporting and the operating effectiveness of such oontrols; refer to ourseparatereport inAnnexure-B attached herewith.
g) The remuneration paid by company to its directors Is in accordancewith the provisions of section 197 of the companies Ad 2013 read with Schedule V and isnot in excess of the limits specified therein.
h) With resped to the other matters to be included in our 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 no pending litigation as on the balance sheet dateexcept as mentioned in Note 27
of the Finandal Statements.
(ii) There are no long term contrads for which provision is required.
(iii) There has been no delay in transferring amounts required to betransferred to the Investor Protedion Fund by the Company
FOR R J SHAH & ASSOCIATES CHARTERED ACCOUNTANTS (F.R.N. 109752W)
Date : May 302020 PARTNER
Place: Vadodara (M R N 034139)
"ANNEXURE - A" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date for the year ended 31"March2020 of MERCURY LABORATORIES LIMITED)
(b) All the assets have not been physically verified by the managementduring the year but there is a regular program of verification which in our opinion isreasonable having regard to the size of the company and the nature of Its assets. Asinformed to us no material discrepancies were noticed on such verification.
(c) The tide deeds of the immovable properties are held in the name ofthe company.
(ii) (a) The inventory has been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) On the basis of our examination of the records of inventory we areof the opinion that the company is maintaining proper records of inventory. Thediscrepancies noticed on verification between the physical stocks and the book recordshave been properly dealt with In the books of accounts
(ill) The Company has not granted any loan secured or unsecured toCompanies Firms or Other Parties
covered in the register maintained u/s. 189 of the Companies Act 2013during the year under report. Consequently no comments are necessary on Para (ill) (a)(b)& (c) of CARO 2016.
(iv) The Company has not granted any loans or advances or has not givenany guarantee or has not acquired securities of any other body corporate exceeding sixtypercent of its paid up share capital free reserves and securities premium account or onehundred percent of its free reserves and securities premium account whichever is more andhence the question of compliance of Section 185 and 186 of Companies Act 2013doesn'tarise.
(v) The Company has accepted deposits from members/directors and thesame is in compliance with the provisions of Section 73 to76 of the Companies Act 2013.
(vi) We have broadly reviewed the cost records maintained by thecompany for its products pursuant to the Companies (Cost Records and Audit) Rules 2014prescribed by the Central Government for the maintenance of cost records under Section148(1) of the Companies Act 2013 and we are of the opinion that prima facie theprescribed cost records have been made and maintained. However we have not made adetailed examination of these records with a view to determine whether they are accurateor complete.
(vii) (a) According to the records of the Company the Company isregular in depositing with appropriate
authorities undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Goods and Service Tax Custom Duty Excise Dutyand other material statutory dues applicable to it.
(b) According to the records of the company there are no dues of SalesTax Income Tax Service Tax Customs Duty Wealth Tax Excise Duty Goods and ServicesTax Cess which have not been deposited on account of any dispute.
(c) Amount required to be transferred to Investor Education andProtection Fund in terms of Section 642 of the Companies Act 1956 read with sub-section(3) of Section 205C of the said Act and the Investor Education and Protection Fund(Awareness and Protection of Investors) Rules 2001 has been duty transferred.
(viii) Based on our audit procedures and on the information andexplanations given by the management we are of the opinion that the company has notdefaulted in repayment of dues to financial institutions or banks. The Company has notissued any debentures.
(ix) The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) exoept a term loan which hasbeen applied for the purpose forwhich it was raised.
(x) Based upon the audit procedures performed and information andexplanations given by the management we report that no fraud on or by the company hasbeen noticed or reported during the course ofouraudit.
(xi) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid/provlded formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii> of theOrder is not applicable.
(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards Ind AS-24 "Related Party Disclosures".
(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.
(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered Intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly the provisions of3(xvi) of the orderarenot applicable to the Company.
"Annexure - B" to the Independent Auditors' Report Report onthe Internal Financial Controls under 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 MERCURY LABORATORIES LIMITED ("the Company") as on 31** March2020 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.
Management's Responsibility forlntemal Financial Controls
The Respective Board of Directors of the Company are responsible forestablishing and maintaining internal financial controls 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 ("iCAl'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by ICAl and the Standards on Auditingissued by ICAE and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial oontrols over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors judgment including the assessment of the risksof material misstatement of the financial statements whetherdue to fraud 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 overfinanclal 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 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 havea 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 oontrols material misstatements due to error or fraud may occur and not bedelected. 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 conditionsorthat the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company have In all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 312020 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.