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Nectar Lifescience Ltd.

BSE: 532649 Sector: Health care
NSE: NECLIFE ISIN Code: INE023H01027
BSE 00:00 | 22 Oct 27.85 -0.10
(-0.36%)
OPEN

28.75

HIGH

28.80

LOW

27.65

NSE 00:00 | 22 Oct 27.90 -0.05
(-0.18%)
OPEN

28.25

HIGH

28.85

LOW

27.55

OPEN 28.75
PREVIOUS CLOSE 27.95
VOLUME 36799
52-Week high 48.40
52-Week low 16.20
P/E
Mkt Cap.(Rs cr) 625
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 28.75
CLOSE 27.95
VOLUME 36799
52-Week high 48.40
52-Week low 16.20
P/E
Mkt Cap.(Rs cr) 625
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nectar Lifescience Ltd. (NECLIFE) - Auditors Report

Company auditors report

TO THE MEMBERS OF NECTAR LIFESCIENCES LIMITED Report on the Audit ofthe Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements ofNectar Lifesciences Limited ("the Company") which comprise the Balance Sheet asat March 31 2020 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the standalone financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

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 Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020the profitand total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditors'Responsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is opinion on the standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. In our opinion there is no Key Audit Matter to be reported.

Other Information

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements andour auditors' report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Standalone FinancialStatements

The Company's management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs profit / loss (including other comprehensive income) changes in equity and cashflows of Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement under section whether due to fraud or error. In preparing the standalonefinancial statements management is responsible for assessing the Company's abilityto continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless management either intendsto liquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors is responsible for overseeing the Company's financialreporting process.

AUDITORS' Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives areappropriatetoprovide to obtain reasonablebasisforour assurance about whether the standalone financial statements as a whole arefree from material misstatement whether due to fraud or error and to issue anauditors' report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese standalone financial statements. As part of an audit in accordance with SAs weexercise professional judgment and maintain professional scepticism throughout the audit.

We also:

Identify and assess the risks of material misstatement ofthe standalone financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal financial controlsrelevant to the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

Conclude on the appropriateness of management's use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditors'report to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report.

However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content ofthe standalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

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 internal control that we identify during our audit.

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 standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would 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 of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

(A) As required by Section 143(3) of the Act based on our audit wereport that: a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit. b) In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (includingOther Comprehensive Income) Statement of Changes in Equity and the Statement of Cash Flowdealt with by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under

Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations onits financial position in its standalone financial statements.

ii. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

(C) With respect to the matter to be included in the Auditors'Report under section 197(16): In our opinion and according to the information andexplanations given to us the remuneration paid by the Company to its directors during thecurrent year is in accordance with the provisions of Section 197 of the Act. Theremuneration paid to any director is not in excess of the limit laid down under Section197 of the Act. The Ministry of Corporate Affairs has not prescribed other details underSection 197(16) which are required to be commented upon by us.

For Ashwani K. Gupta & Associates
Chartered Accountants
Firm Regn. No. 003803N
(Paras Gupta)
Partner
Place: Chandigarh M. No. 546125
Dated: 29.07.2020 UDIN: 20546125AAAACM9014

ANNEXURE "A" TO THE AUDITORS' REPORT

REFERRED TO IN PARAGRAPH 1 UNDER ‘REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS' SECTION OF OUR REPORT OF EVEN DATE

1. In respect of its fixed assets:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.

(b) The fixed assets were physically verified during the year by theManagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of major portion of fixed assets at reasonableintervals. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

2. In respect of its inventory:

(a) The inventory has been physically verified by the management atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable.

(b) As explained to us the discrepancies if any noticed between thephysical stocks and the books records were not material and have been properly dealt within the books of accounts.

3. The Company has not granted any loan secured or unsecured tocompanies firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013.Accordingly provisions of clause3 (iii) of the Companies (Auditor Reports) Order 2016 are not applicable to the Company.

4. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of

Section 185 and 186 of the Act with respect to the loans andinvestments made.

5. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits attracting the provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013.

6. We have broadly reviewed the cost records maintained by theCompany pursuant to the rules made by the Central Government U/s 148(1) of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of therecords with a view to determine whether they are accurate or complete.

7. (a) According to the information and explanations given to usand on the basis of our examination of the records of the Company the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees' State Insurance Investor Education and Protection Fund Income TaxCustoms Duty Excise Duty Goods and Services Tax Cess and other material statutory duesas applicable with the appropriate authorities in India. We are informed that there are noundisputed statutory dues as at the end of the year which are outstanding for a period ofmore than six months from the date they became payable.

(b) According to the information and explanation given to us and as perrecords of the Company examined by us there are no dues of Custom Duty Goods andServices Tax and Cess which are outstanding as at 31st March 2020 and which have not beendeposited on account of any dispute. However according to information and explanationgiven to us the following dues of Excise duty Income Tax and Service Tax have not beendeposited by the Company on account of disputes as detailed below

(Rs. In Million*)
Statute Nature of the Dues Amount Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 0.41 Assessment Year 01-02 Commissioner of Income Tax Appeal
Income Tax Act 1961 Income Tax 2.34 Assessment Year 01-02 Commissioner of Income Tax Appeal
Income Tax Act 1961 Income Tax 0.03 Assessment Year 03-04 Income Tax Appellate Tribunal Delhi
Income Tax Act 1961 Income Tax 0.19 Assessment Year 04-05 Income Tax Appellate Tribunal Delhi
Income Tax Act 1961 Income Tax 1.19 Assessment Year 10-11 DCIT Chandigarh
Income Tax Act 1961 Income Tax -** Assessment Year 14-15 Income Tax Appellate Tribunal Delhi
Income Tax Act 1961 Income Tax -** Assessment Year 15-16 Income Tax Appellate Tribunal Chandigarh
Income Tax Act 1961 Income Tax 1.47 Assessment Year 17-18 DCIT Chandigarh
Central Excise Act1944 Excise Duty 1.05 Financial Year 07-09 Joint Secretary Ministry of Finance Delhi
Central Excise Act1944 Excise Duty 5.58 Financial Year 05-06 CESTAT Chandigarh
Central Excise Act1944 Excise Duty 0.45 Financial Year 10-13 CESTAT Chandigarh
Service Tax1994 Service Tax 5.78*** Financial Year 09-10 CESTAT Chandigarh
Service Tax1994 Service Tax 0.84 Financial Year 2011-12 CESTAT Chandigarh
Service Tax1994 Service Tax 0.08 Financial Year 2011-2012 CESTAT Chandigarh
Punjab VAT Act 2005 VAT 4.66 Financial Year 2011-2012 DETC Mohali
Punjab VAT Act 2005 VAT 4.46 Financial Year 2012-2013 DETC Mohali

* Net of amounts deposited under protest

** In case of adverse judgment MAT credit entitlement would reduceby 190.69 million *** In case demand is confirmed penalty up to equivalent amountmay be imposed.

8. According to the records of the Company examined by us and theinformation and explanations given to us the Company has not defaulted in repayment ofdues to any financial institution or bank or debenture holders as at the balance sheetdate.

9. In our opinion and according to the information and explanationsgiven to us during the year the Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) and the term loans availedduring the year have been applied for the purpose for which they were raised.

10. According to the information and explanation given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

11. According to the information and explanations give to us andbased on our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

12. In our opinion and according to the information andexplanations given to us the Company is not a Nidhi Company. Accordingly paragraph3(xii) of the Order is not applicable.

13. 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 standalone financial statements asrequired by the applicable accounting standards.

14. 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. 15. According to the information and explanations givento us and based on our examination of the records the Company the Company has not enteredinto non-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.

16. According to information and explanations given to us theCompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934.

For Ashwani K. Gupta & Associates
Chartered Accountants
Firm Regn. No. 003803N
(Paras Gupta)
Partner
Place: Chandigarh M. No. 546125
Dated: 29.07.2020 UDIN: 20546125AAAACM9014

ANNEXURE "B" TO THE AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Nectar Lifesciences 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 for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls 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(‘ICAI'). 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 offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in 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 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 aboutthe adequacy of the internal financial controls system over reporting and their operatingeffectiveness. Our audit of internal controls over financial reporting included obtainingan understanding of internal financial controls over financial reporting assessing therisk a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk

The procedures selected depend on the auditors' judgmentincluding 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 andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures

(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of the Management and directors of theCompany; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat could have a 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 controls material misstatements due to error or fraud may occur and not bedetected. 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 in adequate because of change in conditionsor that the degree of compliance with the policies or procedure may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2020 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 Institute ofChartered Accountants of India.

For Ashwani K. Gupta & Associates
Chartered Accountants
Firm Regn. No. 003803N
(Paras Gupta)
Partner
Place: Chandigarh M. No. 546125
Dated: 29.07.2020 UDIN: 20546125AAAACM9014

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