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Veritas (India) Ltd.

BSE: 512229 Sector: Others
NSE: N.A. ISIN Code: INE379J01029
BSE 00:00 | 19 Feb 31.45 0
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NSE 05:30 | 01 Jan Veritas (India) Ltd
OPEN 31.45
PREVIOUS CLOSE 31.45
VOLUME 36
52-Week high 59.50
52-Week low 26.50
P/E 8.93
Mkt Cap.(Rs cr) 84
Buy Price 31.45
Buy Qty 510.00
Sell Price 26.50
Sell Qty 4.00
OPEN 31.45
CLOSE 31.45
VOLUME 36
52-Week high 59.50
52-Week low 26.50
P/E 8.93
Mkt Cap.(Rs cr) 84
Buy Price 31.45
Buy Qty 510.00
Sell Price 26.50
Sell Qty 4.00

Veritas (India) Ltd. (VERITASINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF VERITAS INDIA LIMITED

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS Financial Statements of Veritas India Limited(the "Company") which comprise the Balance Sheet as at March 31 2019 and theStatement of Changes in Equity the Statement of Profit and Loss (including OtherComprehensive Income) and the Statement of Cash Flows for the year ended on that date andnotes to the Ind AS Financial Statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as the "Ind ASFinancial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (the "Ind AS") prescribed underSection 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 asamended of the state of affairs (financial position) of the Company as at March 31 2019and the changes in equity its loss (financial performance including other comprehensiveincome) and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Ind AS Financial Statements in accordance with theStandards on Auditing (the "SAs") specified under Section 143 (10) of the Act.Our responsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Ind AS Financial Statements' section of our report.

We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (the "ICAI") together with theethical requirements that are relevant to our audit of the Ind AS 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's Codeof Ethics.

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

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in the audit of the Ind AS Financial Statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have not determined any matters to be the key audit matters to becommunicated in our report.

Information Other than the Ind AS Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the information other than the IndAS Financial Statements and Auditor's Report thereon. The Other Information comprises theManagement Discussion and Analysis Directors' Report including Annexures to Directors'Report (collectively called as "Other Information") but does not include the IndAS Financial Statements and our auditor's report thereon. The Other Information isexpected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the Other Information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe Other Information and in doing so consider whether the Other Information ismaterially inconsistent with the Ind AS Financial Statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated.

When we read the Other Information if we conclude that there is a materialmisstatement therein we are required to communicate the matters to those charged withgoverence.

Responsibilities of Management for the Ind AS 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 Ind AS Financial Statementsthat give a true and fair view of the state of affairs (financial position) changes inequity profit or loss (financial performance including other comprehensive income) andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Ind AS.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS Financial Statements management is responsible for assessingthe Company'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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's responsibilities for the audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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 Ind AS 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 Ind AS 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 omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143 (3)(i) of Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system with reference to Ind AS Financial Statementsin 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 Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings 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 Ind AS Financial Statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in the paragraph 3 and 4of the Order to the extent applicable.

(ii) As required by sub-section (3) of Section 143 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 Changes in Equity the Statement of Profit andLoss and the Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid Ind AS Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the Directors as on March 312019 and taken on record by the Board of Directors in its meeting held on May 30 2019none of the directors is disqualified as on March 31 2019 from being appointed as adirector in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference toInd AS Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure B". Further our reportexpresses an unmodified opinion on the adequacy and operating effectiveness of theCompany's internal financial controls with reference to Ind AS Financial Statements;

(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 the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 read with Schedule V of the Act; and

(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 Ind AS Financial Statements - Refer Note 29 to the Ind AS FinancialStatements;

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

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For M. P. Chitale & Co.

Chartered Accountants

ICAI Firm Registration No.: 101851W

Sd/-

Ashutosh Pednekar

Partner

ICAI Membership No.: 041037

Place : Mumbai

Date : May 30 2019

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND AS FINANCIALSTATEMENTS OF VERITAS INDIA LIMITED

(Referred to in paragraph (i) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of the Company)

We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment (fixed assets).

(b) The Property Plant and Equipment of the Company are physically verified by theManagement in a phased program of three to five years cycle. In our opinion the programmeis reasonable having regard to the size of the Company and the nature of its assets. Inour opinion and as per the information given by the management the discrepancies observedwere not material and have been appropriately accounted in the books of account.

(c) According to the information and explanations given to us and based on verificationof records we report that the title deeds of immovable properties held as Property Plantand Equipment are held in the name of the Company.

ii) As explained to us inventories have been physically verified by the management atreasonably regular intervals during the year. The discrepancies noticed on physicalverification of inventory as compared to the book records were not material and have beenproperly dealt with in the books of account.

iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships and other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Accordingly paragraphs 3(iii) (a) (b) and (c) of the Order are notapplicable.

iv) According to the information and explanations given to us the Company has notgiven any loan guarantee made investment nor provided any security under the provisionsof Section 185 and 186 of the Act.

v) According to the information and explanations given to us the Company has notaccepted deposits from the public in terms of provisions of Sections 73 to 76 of theCompanies Act 2013.

vi) Pursuant to the rules prescribed by the Central Government for the maintenance ofcost records under Section 148(1) of the Companies Act 2013 company is not required tomaintain cost records.

vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company in our opinion the Company is generallyregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax goods and service tax duty of customs cess and other materialstatutory dues as applicable with the appropriate authorities.

(b) As at the year-end according to the records of the Company and information andexplanations given to us there were no disputed statutory dues payable in respect ofincome tax goods and service tax and duty of customs except for the cases listed outbelow:

Name of Statute Nature of amount disputed Amount (Rs. In Lakhs) Period to which amount relates Forum where dispute is pending Remarks if any
Sales Tax Act 1956 Sales Tax 159.12 AY 2008-09 STO-Survey Branch
Income Tax Act 1961 Income Tax 1736.56 AY 2014-15 CIT Appeal

viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto banks as at the balance sheet date. The Company has not issued debentures nor borrowedany funds from financial institutions or Government.

ix) In our opinion and according to the information and explanations given to us on anoverall basis the term loans were applied for the purpose for which loans were obtained.The Company has not raised any moneys by way of initial public offer or further publicoffer (including debt instruments). Further no additional terms loans were taken duringthe year.

x) According to the information and explanations given to us and on the basis ofrepresentation of the management which we have relied upon no fraud by the Company or onthe Company by its officers or employees has been noticed or reported during the year.

xi) According to the information and explanations given to us and on the basis of thecomputation made for managerial remuneration the same has been paid in accordance withthe requisite approvals mandated by provisions of Section 197 read with Schedule V to theAct.

xii) Since the Company is not a nidhi company this clause is not applicable to theCompany.

xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of the Act as applicableand the details of such transations have been disclosed in the Ind AS Financial Statementsas required by the applicable Indian Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) The Company has not entered into any non cash transactions with directors orpersons connected with the directors.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of lndia Act 1934.

For M. P. Chitale & Co.

Chartered Accountants

ICAI Firm Registration No.: 101851W

Sd/-

Ashutosh Pednekar

Partner

ICAI Membership No.: 041037

Place : Mumbai

Date : May 30 2019

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND AS FINANCIALSTATEMENTS OF VERITAS INDIA LIMITED

(Referred to in paragraph (ii) (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members the Company)

Report on the Internal Financial Controls with reference to Ind AS Financial Statementsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls with reference to Ind AS FinancialStatements of Veritas India Limited ("the Company") as of March 31 2019 inconjunction with our audit of the Ind AS 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 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 (the "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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Ind AS Financial Statements based on our audit. We conductedour audit in accordance with the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting (the "Guidance Note") and the Standards on Auditingissued by ICAI and specified under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to Ind AS Financial Statements were 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 with reference to Ind AS Financial Statements andtheir operating effectiveness. Our audit of internal financial controls with reference toInd AS Financial Statements included obtaining an understanding of internal financialcontrols with reference to Ind AS 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 judgement including the assessment of the risks of material misstatement of theInd AS 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 Ind AS Financial Statements.

Meaning of Internal Financial Controls with reference to Ind AS Financial Statements

A company's internal financial control with reference to Ind AS Financial Statements isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of the Ind AS Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol with reference to Ind AS Financial Statements includes those policies andprocedures 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 the Ind AS Financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to Ind AS FinancialStatements

Because of the inherent limitations of internal financial controls with reference toInd AS Financial 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 Ind AS Financial

Statements to future periods are subject to the risk that the internal financialcontrol with reference to Ind AS Financial Statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to Ind AS Financial Statements and such internalfinancial controls with reference to Ind AS Financial Statements were operatingeffectively as at March 31 2019 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.

For M. P. Chitale & Co.

Chartered Accountants

ICAI Firm Registration No.: 101851W

Sd/-

Ashutosh Pednekar

Partner

ICAI Membership No.: 041037

Place : Mumbai

Date : May 30 2019