To the Members of SANGAM HEALTH CARE PRODUCTS LIMITED.
Report on the Financial Statements
We have audited the accompanying financial statements of SANGAM HEALTH CARE PRODUCTSLIMITED which comprise the Statement of Financial Position as at March 31 2019 and theStatement of Profit and Loss and Other Comprehensive for the year ended 31stMarch 2019 and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position and financial performance of the Company inaccordance with the Indian Accounting Standards referred to in Section 133 of theCompanies Act 2013 ("the Act"). This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) In the case of the Statement of Financial Position( Balance Sheet) of the state ofaffairs of the Company as at March 31 2019;
b) In the case of the Statement of Profit and Loss and Other Comprehensive IncomeOperating and Non Operating profit for the year ended on that date March 31 2019;
c) In the case of cash flow the movement of cash in the company for the period
d) In case of Changes in Equity the movement of net flows in other Equity for theperiod.
Emphasis of Matter Paragraph
As referred to Note no: 26 relating to balances due from and due by the companytowards Long Term / Short Term borrowings debtors advances other current assets andcurrent liabilities in respect of which confirmations have not been received. Pendingreceipt of confirmation of balances and consequent adjustments arising on account of suchreconciliations if any including differences arising on account of netted off balances ofcertain debtors advance from customers and creditors if any and the resultant impact onthe financial statements including the operating results is not ascertainable at thisstage.
Our Opinion is not qualified in respect of these matters. Report on Other Legal andRegulatory Requirements
1. This report include a statement on the matters specified in paragraphs 3 and 4 ofthe Companies (Auditor's Report) Order 2016 issued by the Department of CompaniesAffairs in terms of sub section (11) of section 143 of the Companies Act 2013 since inour opinion and according to the information and explanations given to us the said orderis applicable to the company.
2. As required by section 143(3) of the Companies Act 2013 we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books
c) The Statement of Financial Position and Statement of Profit and Loss dealt with bythis Report are in agreement with the books of account.
d) In our opinion the Statement of Financial Position and Statement of Profit and Losscomply with the Accounting Standards referred to in Section 133 of the Companies Act2013 read with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of sub section 2 ofsection 164 of the Companies Act 2013.
f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule.11 Of the Companies (Audit and Auditors) Rules2014 in our Opinionand to the best of our information and according to the explanation given to us
i. The Company doesn't have any pending litigations which would impact its financialposition.
ii. The Company didn't have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection fund by the company.
Annexure to the Auditors' Report
The annexure as referred in Report on other Legal and Regulatory requirements ofour independent auditors' report to the members of SANGAM HEALTH CARE PRODUCTS LIMITEDon the financial statements for the year ended March 31 2019 we report that
i. a) The company has maintained proper records showing full particulars includingquantitative details and situation of its principal fixed assets.
b) Other than the location of furniture and fixture and office equipments which areunder compilation accordingly the fixed assets are physically verified by the managementaccording to the programme of periodical verification in a phased manner designed tocover all items over a period of one year which in our opinion is reasonable havingregards to the size of the company and the nature of its assets. Pursuant to themanagement during the year and no material discrepancies have been noticed on suchverification.
c) The Title Deed of the Immovable property as disclosed in Schedule III of Financialstatements are held in the Name of Company as at the Balance Sheet date.
|Particulars ||Land ||Factory Building |
|Gross Block as on 31st March2019 ||79050000 ||65130130 |
|Net Block as on 31st March2019 ||79050000 ||38780053 |
ii. The inventory other than in transit has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of suchverification is adequate.
iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013.
iv. According to the information and explanations given to us the Company has notgiven any guarantees for loans taken by Directors from banks and financial institutionsand no investments Guarantees Securities given by the company.
v. The Company has not accepted any deposits during the year from the public within themeaning of the provisions of Section 73 to 76 or any other relevant provisions of theCompanies Act 2013 and rules made there under. Hence the Clause (v) of the order is notapplicable.
vi. The Central Government has not prescribed maintenance of the cost records underSection 148(1) of the Companies Act 2013 in respect to the Company's product. Hence theClause (VI) of the order is not applicable.
vii. a) According to the information and explanations given to us and the recordsexamined by us the Company is not regularly in depositing with appropriate authorities inrespect of provident fund employees' state insurance wealth tax income-tax goods andservices tax and other statutory dues wherever applicable undisputed arrears of statutorydues were outstanding as at 31st March 2019.
b) According to the information and explanations given to us there are dues ofProvident Fund Investor Education and Protection Fund Employees State Insurance SalesTax Wealth Tax Goods and Services Tax Excise Duty and Cess which have not beendeposited on account of any dispute.
c) On the basis of our examination the following are the undisputed statutory dueswhich were arrears as at 31st march 2018.
|Name of the statute ||Nature of dues ||Amount (Rs. In lakhs) ||Period to which the amount relates ||Remarks |
|The Employee's Provident Funds And Miscellaneous Provisions Act1952 ||Provident Fund ||3.98 ||March 2019 ||Not Deposited |
|Employee's State Insurance Act1948 ||ESI ||9.53 ||Sep 2016 & Apr 2017 ||Not Deposited |
viii. Based on our audit procedures and the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto banks.
ix. The nature of Company is Public limited the Company has not raised any money byway of Initial Public offer further public offer including debt instruments during theyear. Accordingly the provisions of Clause 3(ix) of the Order not applicable to theCompany.
x. On the basis of our examination and according to the information and explanationsgiven to us no fraud on or by the Company has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on ourexamination of the records the company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V of the act.
xii. On the basis of our examination the company is not a Nidhi company hence theparagraph 3(xiii) of the order is not applicable.
xiii. In our opinion and according to the information and explanations given to us thecompany entered into related party transactions (the details of such transactions wereenclosed in the financial statements).
xiv. On the basis of our examination the company has not issued or allotted anypreferential shares/debentures hence the paragraph 3(xiv) of the order is not applicable.
xv. In our opinion and according to the information and explanations given to us thecompany didn't entered into non-cash transactions with directors or persons concerned andsuch transactions were disallowed while calculating the income tax as per Income Tax Act.
xvi. The nature of Business is such that the Clause (xvi) of Order- Register under RBIAct 1934 is not applicable.
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SANGAMHEALTH CARE PRODUCTS LIMITED as of 31 March 2019 in conjunction with our audit of thefinancial 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 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 judgment 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 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 31 March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For K.R.Shekher & Co. |
| ||Firm Registration Number: 010828S |
| ||Chartered Accountants |
| ||Sd/- |
|Hyderabad May 30 2019. ||Rajashekhar Kaparti |
| ||Partner M.No.214810 |