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Syncom Formulations (India) Ltd.

BSE: 524470 Sector: Health care
NSE: N.A. ISIN Code: INE312C01025
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NSE 05:30 | 01 Jan Syncom Formulations (India) Ltd
OPEN 9.84
PREVIOUS CLOSE 9.66
VOLUME 1959407
52-Week high 13.55
52-Week low 2.39
P/E 28.41
Mkt Cap.(Rs cr) 802
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.84
CLOSE 9.66
VOLUME 1959407
52-Week high 13.55
52-Week low 2.39
P/E 28.41
Mkt Cap.(Rs cr) 802
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Syncom Formulations (India) Ltd. (SYNCOMFORMUL) - Auditors Report

Company auditors report

TO THE MEMBERS OF SYNCOM FORMULATIONS (INDIA) LIMITED

Opinion

We have audited the accompanying financial statements of Syncom Formulations (India)Limited ("the Company") which comprises the Balance Sheet as at March 312021 the Statement of Pro t and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and summary of significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements"). In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid financial statements give the information required by the Companies Act2013 ("the Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 the profit and total comprehensive incomechanges in equity and its cash flows 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 Act (SAs). Our responsibilities under those Standards arefurther described in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI’sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

S.N. Key Audit Matter Auditor’s Response
1. Valuation Accuracy Completeness and disclosures pertaining to Inventories with reference to Ind AS 2. Inventories constitutes material component of financial statement. Correctness completeness and valuation are critical for reflecting true and fair financial results of operations. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing is as follows:
a) We have assessed the Company’s process regarding Maintenance of records Valuation and accounting of transactions relating to Inventory as per the Indian Accounting Standard 2.
b) We have evaluated the design of Internal Controls relating to recording and valuation of Inventory.
c) We have verified the compliance with the standard norms relating to production as framed and timely updated by the management.

Share Price Performance in Comparison to Board Based Indices BSE Sensex

Particulars 01 April 2020 31 March 2021 % Change
Company Share Price (Rs.) 0.72 3.10 330.55
BSE Sensex 29468.49 49509.15 68.00

Share Transfer System

The Board has authorized Stakeholder Relationship Committee to approve and authorizematters relating to share transfers/transmission issue of duplicate share certificates;etc. The Company's Registrars M/s Ankit Consultancy Pvt. Ltd. has adequate infrastructureto process the share transfers.

The Share transfer requests received at the Registrar & Share Transfer Agent areprocessed and delivered within 15 days from the days of lodgment and in case ofdematerialization requests are processed within 21/30 days from the date of receipt.

A predetermined process cycle at regular interval ensures the transfer of shares (inphysical form) within the stipulated time limit.

As per the requirement of Regulations 40(9) of the Listing Regulations a CompanySecretary in Practice has certified due compliance of share transfer formalities on a halfyearly basis.

i. Sub-division of shares

The Company had sub-divided its equity shares of Rs. 10/- each to Re. 1/- each on 8thJuly 2013.

ii. Distribution of Shareholding as on 31stMarch 2021

Shareholding of Nominal Value Rs. No. of shareholder % Shares Amount in Rs. %
Up to 1000 43097 59.25 16219067 2.05
1001- 2000 7861 10.81 13241183 1.68
2001- 3000 4021 5.53 10802001 1.37
3001 - 4000 2636 3.62 9592674 1.21
4001 - 5000 3514 4.83 17243851 2.18
5001- 10000 5286 7.27 42903261 5.43
10001 - 20000 2826 3.89 42346986 5.36
20001 - 30000 1103 1.52 28146424 3.56
30001 - 40000 525 0.72 18757291 2.37
40001 - 50000 481 0.66 22834879 2.89
50001 - 100000 763 1.05 57802879 7.32
100000 Above 623 0.85 510061684 64.58
Total 72736 100.00 789952180 100.00

iii. Shareholding Pattern as on 31st March 2021

Category of Shareholder No. of Shares held % No. of outstanding Convertible Warrants Shareholding as a % assuming full conversion of convertible securities (as a % of Diluted Share Capital)
Promoters 325299779 41.18 150047820 50.57
Mutual Funds/UTI - - - -
Financial Institutions/Banks - - - -
Insurance Companies - - - -
Foreign Institutional Investors - - - -
Directors & Relatives - - - -
Individuals 429047262 54.31 - 45.64
Non- Resident Indians & OCB 20626106 2.61 - 2.19
Others 14979033 1.90 - 1.60
TOTAL 789952180 100.00 150047820 100.00

iv. Dematerialization of Shares & Liquidity as on 31stMarch 2021

The shares of the Company are compulsorily traded in electronic mode and haveestablished connectivity with both the Depositories namely National Securities DepositoryLimited (NSDL) and Central Depository Services Limited (CDSL). As on 31st March 2021 thenumbers of shares held in dematerialized and physical mode are as under:

Particulars Number of Shares Percentage to Total Capital Issued
Held in demat mode in NSDL 495875118 35.56
Held in demat mode in CDSL 280896827 62.77
Sub Total (demat mode) 776771945 98.33
Physical Mode 13180235 1.67
Total 789952180 100.00

v. Outstanding GDRs/ADRs/Warrants or any convertible instruments etc.

During the year company has taken approval from the members/shareholders on 12thJanuary 2021 to issue 159347820 warrants of Rs. 2.53 each convertible into the equityshares of Rs.1/- each to Promoter and Promoter Group. Out of the above on 27th March2021 9300000 warrants had been converted into the equity shares of the company and on27th August 2021 further 40000820 warrants are converted into equity shares of thecompany and 110047000 warrants is still outstanding for conversion into the equityshare of the company. Except from above no convertible securities is issued at outstandingat the year end.

vi. Foreign exchange risk and hedging activities

The Company has no foreign exchange exposures; however hedging/forwarding contract isdone wherever it was required.

vii. Credit Rating

Company has not issued any debenture or accepted deposits so the rating from CRISIL orany other agency was not required to be obtained.

viii. Details of utilization of funds raised through preferential allotment asspecified under Regulation 32 (7A)

During the year ended 31st March 2021 the Company had allotted 159347820Convertible Warrants (‘Warrants’) each carrying a right to subscribe to OneEquity Share per Warrant at a price of Rs. 2.53 Per Warrant (‘Warrant Price’)aggregating to Rs. 4031.50Lakhs on a preferential basis to Promoter and Promoter Group.

An amount of Rs. 0.65 not less than the 25% of the Warrant Price was paid at the timeof subscription aggregating Rs. 1035.76Lakhs and the balance 75% of the Warrant Price ispayable by the Warrant holder at the time of conversion in one or more trances.

On 27th March 2021 on receipt of balance option money of Rs. 1.88 per warrantaggregating Rs. 174.84 Lakhs for conversion of 9300000 warrants 9300000 converted intothe 9300000 equity share of the company.

Further after 31st March 2021 on 27th August 2021 on receipt of balance option moneyof Rs. 1.88 per warrant aggregating Rs. 752.01 Lakhs for conversion of 40000820warrants converted into the 40000820 equity share of the company. Order") issuedby the Central Government of India in terms of subsection (11) of section 143 of the Actwe give in the "Annexure B" a statement on the matters specified in paragraphs3 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 and proper returns areadequate for the purposes of our audit.

c) The Balance Sheet the Statement of Pro t and Loss including Other ComprehensiveIncome Statement of Changes in equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the 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 the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodi edopinion on the adequacy and operating effectiveness of the Company’s internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with requirements of section 197(16) of the Act as amended: In our opinion andto the best of our information and according to the explanations given to us theremuneration paid by the company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

h) 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 does have pending litigations which are disclosed in sub clause (c) ofclause (vii) of the Annexure B however there is no material impact on its financialposition.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amount required to be transferred to theInvestor Education and Protection Fund by the Company.

For Sanjay Mehta & Associates

Chartered Accountants

Firm Regn No. 011524C

Manish Mittal

Partner

M. No. 079452

Place: Indore

Date: 30th June 2021

ANNEXURE "A" TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of Syncom Formulations (India)Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting 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

SYNCOM FORMULATIONS (INDIA) LIMITED ("the Company") as of March 31 2021in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 respective company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company 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 the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A

Information Other than the Standalone Financial Statements and Auditor’s ReportThereon

The Company’s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board’s Report including Annexures to Board’s ReportBusiness Responsibility Report Corporate Governance and Shareholder’s Informationbut does not include the standalone financial statements and our auditor’s reportthereon. Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the standalone financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement in the otherinformation we are required to report that fact. We have nothing to report in thisregard.

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 Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the IND AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal controls that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the company’s financialreporting process.

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omission misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be in uenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit ndings 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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor’s report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("thecompany’s internal financial control over financial reporting includes those policiesand 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 havea material effect on the financial statements.

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.

Opinion

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 March 31 2021 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.

For Sanjay Mehta & Associates

Chartered Accountants

Firm Regn. No. 011524C

Manish Mittal

Partner

M. No. 079452

Place: Indore

Date: 30th June 2021

ANNEXURE "B" TO THE AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report to the Members of Syncom Formulations (India)Limited of even date)

i. In respect of the Company’s xed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of xed assets.

(b) The Company has a program of veri cation to cover all the items of xed assets in aphased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain xed assets werephysically veri ed by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such veri cation.

(c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds/registered sale deeds provided tous we report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the balance sheetdate.

ii. The management has conducted physical veri cation of inventory at reasonableintervals during the year and no material discrepancies were noticed on physical verication.

iii. The company has not granted any loans secured or unsecured to companies rmslimited 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.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

v. The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2021 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company.

vi. The Central Government has prescribed maintenance of cost records under sub section(1) of Section 148 of Companies Act 2013 in respect of manufacturing activity of thecompany. We have broadly reviewed the accounts and records of the company in thisconnection and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained adequately.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income Tax Sales Tax ServiceTax Goods and Service Tax Value Added Tax Customs Duty Excise Duty Cess and othermaterial statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income Tax Sales Tax Service Tax Value Added TaxGoods and Service Tax Customs Duty Excise Duty Cess and other material statutory duesin arrears as at March 31 2021 for a period of more than six months from the date theybecame payable.

(c) Details of dues of Income Tax Sales Tax Service Tax Excise Duty and Value AddedTax which have not been deposited as at March 31 2021 on account of dispute are givenbelow:

(Rs. in Lakhs)

Nature of the Statue Nature of Dues Forum where dispute is pending Period to which the demand pertains Amount Amount paid under protest
The Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal Mumbai 2006-07 45.3 -
Commercial Tax District Commissioner Appeal Sales Tax Indore 2013-14 1.02 0.26
MP VAT Act 2002 Commercial Tax District Commissioner Appeal Sales Tax Indore 2014-15 1.01 0.20
Commercial Tax District Commissioner Appeal Sales Tax Indore 2015-16 0.13 0.02
Provident Fund Act Provident Fund High Court Indore 2005-06 7.55 3.77

viii. In our opinion and according to the information and explanation given tous the Company has not defaulted in the repayment of dues to banks. The company has notissued any debentures.

ix. The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by its of cers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given tous the Company is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableIndian Accounting Standards.

xiv. The Company has issued 159347820 share warrants on 1:1 basis by the way ofpreferential allotment at the issue price of Rs. 2.53 per warrant which are convertiblein the equity shares of the Company having face value of Rs. 1 per share. Out of the totalshare warrants 9300000 share warrants have been converted into 9300000 equity sharesof the Company. The amount raised has been utilized towards the purpose for which it wasraised

(Rs. in Lakhs)

Nature of the Statue Nature of Dues Total Amount Raised Amount utilized for the purpose Unutilized balance as at Balance sheet date if any Remarks
Share Warrants Expansion of Injectable capacity and modernization of tablet department at Pithampur Unit 12.106 1.84 10.266 -

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company

xvi. The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For Sanjay Mehta & Associates

Chartered Accountants

Firm Regn. No. 011524C

Manish Mittal

Partner

M. No. 079452

Place: Indore

Date: 30th June 2021

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