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Tatva Chintan Pharma Chem Ltd.

BSE: 543321 Sector: Industrials
NSE: TATVA ISIN Code: INE0GK401011
BSE 00:00 | 26 Oct 2546.60 237.10
(10.27%)
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2659.95

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NSE 00:00 | 26 Oct 2559.90 247.65
(10.71%)
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OPEN 2330.00
PREVIOUS CLOSE 2309.50
VOLUME 38690
52-Week high 2659.95
52-Week low 2000.75
P/E 59.33
Mkt Cap.(Rs cr) 5,646
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2330.00
CLOSE 2309.50
VOLUME 38690
52-Week high 2659.95
52-Week low 2000.75
P/E 59.33
Mkt Cap.(Rs cr) 5,646
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tatva Chintan Pharma Chem Ltd. (TATVA) - Auditors Report

Company auditors report

TO THE BOARD OF DIRECTORS OF TATVA CHINTAN PHARMA CHEM LIMITED (Formerly known as TatvaChintan Pharma Chem Private Limited)

Auditor's Report on the audited Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Tatva ChintanPharma Chem Limited (formerly known as "Tatva Chintan Pharma Chem PrivateLimited") {"the Company1') which comprises the Balance Sheet as at 31 March2021 the statement of profit and loss (including Other Comprehensive Income) Statementof changes in equity and statement of cash flows for the year then ended and notes to thestandalone financial statements including summary of significant accounting policies andother explanatory information (hereinafter referred as "standalone financialstatements")

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2021 total comprehensive income(comprising of profit and other comprehensive income) its cash flows and the changes inequity 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. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone 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 together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment 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.

Reporting of key audit matters as per SA 701 Key Audit Matters are not applicable tothe Company it is an unlisted Public Company.

Emphasis of Matter

We draw your attention to Note 46 to the standalone financial statements whichexplains the uncertainties and the Management's assessment of the financial impact due tothe lock-downs and other restrictions and conditions related to the COVID-19 pandemicsituation for which a definitive assessment of the impact in the subsequent period ishighly dependent upon circumstances as they evolve. Further our attendance at thephysical inventory verification as at year end done by the Management was impracticableunder the then prevailing lock-down restrictions imposed by the Government and we havetherefore relied on the related alternative audit procedures to obtain comfort over theexistence and condition of inventory at year end.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board's Report but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact.

We have nothing to report in this regard.

Responsibility of Management 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 standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under section 133 of the Act read with the Companies (IndianAccounting standards) Rules 2015 as amended. 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 implementation andmaintenance of 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 ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in the aggregatethey could reasonably be expected to influence the economic decisions of users taken onthe basis of these standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings that we identifyduring 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.

Report on Other Legal and Regulatory Requirements

1. As required by 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 the "Annexure - A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 the Statement of Profit and Loss (including other comprehensiveincome) statement of change in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tostandalone Financials of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

g) The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

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 has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 33 to the standalonefinancial statements.

ii. The Company did not 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 Investor Educationand protection fund by the Company.

For NDJ & Co.

Chartered Accountants

Firm's Registration Number: 136345W

CA Shirish Shah

Partner

Membership No. 035742

UDIN No:- 21035742AAAAEJ1554

Dated: 15 June 2021

Place: Surat

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements' of our report of even date)

1. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all items over a period of three financial years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the Property Plant and Equipment has beenphysically verified by the management during the year and no material discrepanciesbetween the book records and the physical verification have been noticed.

(c) According to information and explanations given to us and based on our examinationof the records of the Company the title deeds of owned immovable properties are held inthe name of the Company.

2. According to information and explanations given to us the inventory has beenphysically verified by the management at reasonable intervals during the year and nomaterial discrepancies were noticed on such verification by the management.

3. According to information and explanations given to us the Company has not grantedany loan secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of clause 3(iii) of the Order are not applicable to theCompany during the year.

4. According to information and explanations given to us the Company has not grantedany secured or unsecured loans or provided any guarantee or security as per provisions ofSections 185 of the Act. While the investments made by the company does not exceed thelimit given and thus are in compliance as per provision of 186 of the Act.

5. According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of Sections 73 to 76 of the Act and the rulesframed thereunder during the year. Accordingly the provisions of clause 3(v) of the Orderare not applicable to the Company during the year.

6. According to information and explanations given to us as the requirement formaintenance of cost records specified by the Central Government under section 148(1) ofthe Act Cost audit of the Company is carried out during the year. However the Company hasnot furnished cost records for our verification during the course of our audit. Hence weare unable to comment on the same.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has been generally regular indepositing the undisputed statutory dues including provident fund employees' stateinsurance income tax goods and service tax custom duty excise duty value added taxcess and other material statutory dues as applicable to the appropriate authorities duringthe year. No undisputed amounts payable in respect of aforesaid statutory dues wereoutstanding as on the last day of the financial year for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome-tax Duty of customs Duty of excise Sales tax Service tax Value added tax andGoods and Services tax as at 31 March 2021 which have not been deposited with theappropriate authorities on account of any dispute except as stated below:

Name of Statue Nature of Dues Amount involved (In Millions) Amount unpaid (In millions) Period to which amount related (Financial Year) Forum where the dispute is pending
CGST Act 2017 Goods and Service Tax 0.61 0.61 2017-18 Superintendent CGST
IGST Act 2017 Goods and Service Tax 4.53 4.53 2018-19 to 2020-21 DGGI

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. There were no due tofinancial institution government or debenture holder during the year.

9. According to the information and explanations given to us the Company has notraised moneys by way of public offer (including debt instruments). The Company hasutilized the money raised by way of term loans during the year towards the purposes forwhich they were raised.

10. According to the information and explanation given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. The Company has paid / provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

12. The Company is not a nidhi company. Accordingly the provisions of clause 3(xii) ofthe Order are not applicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company the transactions with related parties are incompliance with Section 177 and 188 of the Act and the details have been disclosed in thestandalone financial statements as required by the applicable Indian accounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us the Company has notentered into any noncash transactions with directors or persons connected with them duringthe year. Accordingly the provisions of clause 3(xv) of the Order are not applicable tothe Company during the year.

16. According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly the provisions of clause 3(xvi) of the Order are not applicable to theCompany.

For NDJ & Co.

Chartered Accountants

Firm's Registration Number: 136345W

CA ShirishShah [JU=

Partner W N

Membership No. 035742

UDIN No:- 21035742AAAAEJ1554

Date: 15 June 2021

Place: Surat

ANNEXURE - ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under the "Report on Other Legal and RegulatoryRequirements" of our report of even date)

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 with reference to standalone financialstatements of Tatva Chintan Pharma Chem Limited (formerly known as "Tatva ChintanPharma Chem Private Limited" ("the Company") as of 31 March 2021 inconjunction with our audit of standalone financial statements of the Company for the yearended 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 with reference to standalone financialstatements established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls with referenceto standalone financial statements issued by the Institute of Chartered Accountants ofIndia. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingissued by ICAI and prescribed under section 143(10) of the Act to the extent applicableto an audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tostandalone financial statements 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 ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of internal financialcontrols with reference to financial statements assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone 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 systemwith reference to standalone financial statements.

Meaning of internal Financial Controls over Financial Reporting

A Company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance 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 standalone financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to standalone financial statements to further periods are subject to the riskthat the internal financial control with reference to standalone financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols with reference to standalone financial statements were operating effectively asat 31 March 2021 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.

For NDJ & Co.

Chartered Accountants

FRI^l Jf 345W .

CA Shirish Shah Partner

Membership No. 035742

UDIN No:- 21035742AAAAEJ1554

Date: 15 June 2021

Place: Surat

.