You are here » Home » Companies » Company Overview » Neogem India Ltd

Neogem India Ltd.

BSE: 526195 Sector: Consumer
NSE: N.A. ISIN Code: INE552E01014
BSE 00:00 | 24 Sep 3.30 0
(0.00%)
OPEN

3.30

HIGH

3.30

LOW

3.30

NSE 05:30 | 01 Jan Neogem India Ltd
OPEN 3.30
PREVIOUS CLOSE 3.30
VOLUME 1
52-Week high 3.81
52-Week low 3.30
P/E
Mkt Cap.(Rs cr) 3
Buy Price 3.30
Buy Qty 990.00
Sell Price 3.30
Sell Qty 1.00
OPEN 3.30
CLOSE 3.30
VOLUME 1
52-Week high 3.81
52-Week low 3.30
P/E
Mkt Cap.(Rs cr) 3
Buy Price 3.30
Buy Qty 990.00
Sell Price 3.30
Sell Qty 1.00

Neogem India Ltd. (NEOGEMINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF

NEOGEM INDIA LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of M/sNeogem India Limited ("the company") which comprise the Balance Sheet as at31st March 2019 and the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.

Opinion

Without qualifying our opinion we draw attention to note 24 of the financial statementrelating to cash credit limit from Punjab National Bank and Bank of India for Rs. 10 croreand 5 crore respectively which has been classified as "Non – PerformingAssets" by the lead banker as on 31-03-2016. The company has not received balanceconfirmation from the bankers as on 31-03-2019. Pending confirmation received the companyhas not provided for interest payable in the financial statement till 31-03-2019 sincethe same is not quantifiable and accordingly the loss for the year is understated to thatextent.

The company has stopped manufacturing activities since 01-01-2018 and no detailed plansare made available to us regarding commencement of business activity in near future. Thecompany is in the process of restructuring/revival of its business in view of themanagement's expectation of the successful outcome of revival of its business thefinancial statement has been prepared on going concern basis. However in view of the aboveuncertainty we are unable to comment on the ability of the company to continue as a goingconcern and the consequential adjustment to the accompanying financial statement if anythat might have been necessary had the financial statement been prepared under liquidationbasis.

We refer to the outstanding debtor's receivable as reflected in current assets of Rs.411067159/- which are outstanding for more than three years. The amount outstanding areunconfirmed by the parties.

We refer to the outstanding creditor's payable as reflected in current liabilities ofRs. 157116849/- which are outstanding for more than three years. The amount outstandingare unconfirmed by the parties.

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 inconformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as atMarch31 2019 and its Loss and its Cash Flow for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 thefinancial statements under the provisions of the Companies Act 2013 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 financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Nil

Management's Responsibility for the Standalone 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 preparationand presentation of these Standalone Ind AS financial statements that give a true and fairview of the financial position profit or loss cash flow and changes in equity and of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit.

We have taken in to 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 thereunder.

We conducted our audit of Standalone Ind AS financial statement in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the Standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Standalone Ind AS financial statements that give true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the Standalone Ind AS financial statements.

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

Other Matters

Nil

Report on other Legal and Regulatory Requirements

1. As required of 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 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 Balance Sheet and the Statement of Profit and Loss dealt with by this Report arein agreement with the books of account.

d) 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.

In our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company subject to note no. 23.

e) On the basis of written representations received from the directors as on 31 March2019 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2019 from being appointed as a director in terms of Section 164(2) of theAct.

In our opinion and to the best of our information and according to the explanationsgiven to us we report as such no other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014:

f) With respect of adequacy of the internal financial control over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in Annexure B.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us no remuneration has been paid by the Company to its directors during the yearis in accordance with the provisions of section 197 of the Act.

h) Auditor‘s Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014: in our opinion and to the best of our information and according tothe 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 derivatives contractsfor which there were any material foreseeable losses.

iii) There is no amount required to be transferred to the Investor Education andProtection Fund by the company.

For D S Solanki & Co
Chartered Accountants
Firm Reg. No. 124118W
Dharmendra S Solanki
Partner (M.No. F 115223)
Place : Mumbai
Date : 30/05/2019

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

The annexure referred to in our Independent Auditor's Report to the member for the yearended march 31st March 2019.

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

b. The Fixed Assets have been physically verified by the management in a phased mannerdesigned to cover all the items over a period of three years which in our opinion isreasonable having regard to the size of the company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed assets have been noticed.

c. The title deeds of immovable properties are held in the name of the company.

2) The physical verification of inventory have been conducted at reasonable intervalsby management during the year. The discrepancies noticed on physical verification ofinventory as compared to books records were not material.

3) 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 Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of theOrder are not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act2013; In respect of loans investments guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under subsection (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7) a. According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2019 for a period of more than six monthsfrom the date on when they become payable.

b. According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute.

8) Based on our audit procedure and according to the information and explanations givento us by the management the Company has defaulted in the repayment of dues to banks. Wedraw attention to note 24 of the financial statement relating to cash credit limit fromPunjab National Bank and Bank of India for Rs. 10 crore and 5 crore respectively whichhas been classified as "Non – Performing Assets" by the lead banker as on31-03-2016. The company has not received balance confirmation from the bankers as on31-03-2019. Pending confirmation received the company has not provided for interestpayable in the financial statement till 31-03-2019 since the same is not quantifiable andaccordingly the loss for the year is understated to that extent.

9) Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made preferential allotment of shares duringthe year under review and the requirement of Section 42 of the Companies Act 2013 are notapplicable to the company..

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

16) In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For D S Solanki & Co
Chartered Accountants
Firm Reg. No. 124118W
Dharmendra S Solanki
Partner (M.No. F 115223)
Place : Mumbai
Date : 30/05/2019

ANNEXURE B TO THE AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s NEOGEMINDIA LIMITED (the company) as of 31st March 2019 in conjunction with our audit of thestandalone 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 (ICAI).These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 conduct our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(‘the Guidance Note") and 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 Institute Of Chartered Accountants Of India. ThoseStandards and 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 were established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofinternal 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 assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of risks of materialmisstatement 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 Profit and Loss of thecompany are being made only in accordance with authorizations of the Management anddirectors of the Company; and (3) provide reasonable assurance regarding prevention ortimely detection 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 financial reporting

Because of 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.

Opinion

In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based oninternal control over financial reporting criteria established by the company consideringthe essential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by Institute of Chartered Accountantsof India.

For D S Solanki & Co
Chartered Accountants
Firm Reg. No. 124118W
Dharmendra S Solanki
Partner (M.No. F 115223)
Place : Mumbai
Date : 30/05/2019

.