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Veritas (India) Ltd.

BSE: 512229 Sector: Others
NSE: N.A. ISIN Code: INE379J01029
BSE 00:00 | 23 May 116.40 2.25
(1.97%)
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NSE 05:30 | 01 Jan Veritas (India) Ltd
OPEN 116.25
PREVIOUS CLOSE 114.15
VOLUME 4345
52-Week high 187.50
52-Week low 73.30
P/E 58.49
Mkt Cap.(Rs cr) 312
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 116.25
CLOSE 114.15
VOLUME 4345
52-Week high 187.50
52-Week low 73.30
P/E 58.49
Mkt Cap.(Rs cr) 312
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company auditors report

TO THE MEMBERS OF VERITAS (INDIA) LIMITED Report on the Audit of the Standalone Ind ASFinancial Statements

Opinion

We have audited tile accompanying Standalone Indian Accounting Standard ("IndAS") financial statements of Veritas (India) Limited ("the Company") whichcomprise the Balance Sheet as at March 31 2021 the Statement of Profit and Loss(including Other Comprehensive Income) the Statement of Changes in Equity and theStatement of Cash flows for the year ended on that date and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the 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 accounting principles generally accepted in India ofthe state of affairs of the Company as at March 312021 its profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (" the SAs")Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (the "ICAI") together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act arid 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 andappropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to Note 44 to the standalone financial statements which explains thefact that the Company through its wholly-owned subsidiary Veritas Polychem PrivateLimited has initiated a setup of an integrated manufacturing complex at Dighi Port In thestate of Maharashtra The project is presently financed by the Company and would besuitably finance subsequently through appropriate means at appropriate time.

We draw attention to Note 1 to the standalone financial statements which explains theuncertainties and management's assessment of the financial impact due to the lockdown andother restrictions imposed by the Government and condition related to the COVID-19pandemic situation for which definitive assessment of the impact would highly depend uponcircumstances as they evolve in the subsequent period.

Our opinion is not modified in respect of above matters.

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. We have determined that there are no key audit mattersto communicate in our report.

Information Other than the Standalone Financial Statements and Auditors' Report Thereon

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. Directors' Report including Annexure to Directors' ReportCorporate Governance and Shareholder's Information but does not include the standaloneFinancial statements and our auditor's report thereon. The Other information as above isexpected to be made available to us after the date of this Auditors' report.

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

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit orotherwise appears to be materially misstated When we read the other information if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.

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 standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the 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 theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under sectionI43(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.

Ÿ 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 standalone 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent 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 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 about thematter or 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

1. 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 the Annexure I a statement on the matters specified in paragraph 3 and 4 of the Orderto the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 returnsadequate for the purposes of our audit have been received from branches not visited by us.

c) The Balance Sheet the Statement of Profit 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 relevant books of account.

d) [n our opinion and to the best of our information and according to the explanationsgiven to us die aforesaid Standalone financial statements comply with the IndianAccounting Standard specified under section 133 of the Act read with the relevant rulesthere under.

e) On the basis of written representations received from the Directors as on March 312021 and taken on record by the Board of Directors in its meeting held on June 30 2021none of the directors is disqualified as on March 312021 from being appointed as adirector in terms of Section ! 64 (2) of the Act;

f) With respect to the adequacy of the internal financial controls with reference tolnd 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 the standalone financialstatements;

g) As required by Section 197(16) of the Act in our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid by theCompany to its directors during the year is in accordance with the provisions of section197 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note No32 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 has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

ANNEXURE T TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph I under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of Veritas (India)Limited)

i. In respect of the Company's fixed assets:

(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 years cycle. In our opinion the programme isreasonable having regard to the size of the Company and the nature of its assets. In ouropinion 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 and on the basis ofrepresentation of the management which we have relied upon the loans investmentsguarantees and security given to subsidiaries is covered u/s 185 and 186 of the Companiesact 2013 is complied with.

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 die 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
Income Tax Act 1961 Income Tax 158.45 AY 2014-15 ITAT Appeal -
Income Tax Act 1961 Income Tax 0.66 AY 2009-10 ITAT Appeal -
Income Tax Act 1961 Income Tax 0.62 AY 2018-19 Assessing Officer -
Income Tax Act 1961 Income Tax 636.92 AY 2017-18 Assessing Officer -
Sales Tax Sales Tax 877.78 AY 2013-14 CST APPEAL -
Sales Tax Sales Tax 427.80 AY 2014-15 VAT 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 thereare no loans outstanding during the year or as at year end and no monies are raised by wayof initial public offer or further public offer (including debt instruments). As a resultthis clause is not applicable to the company.

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 L97 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 transactions have been disclosed in the Ind AS FinancialStatements as 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-LA of the ReserveBank of India Act 1934.

ANNEXURE II TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 3(g) under "Report on Other Legal and RegulatoryRequirements" of our report of even date)

Report on the Internal Financial Controls with reference to Financial Statements underclause (i) of sub-section 3 of section 143 of the Companies Act 2013 ("theAct")

We have audited the Internal Financial Controls with reference to Financial Statementsof Veritas (India) Limited (‘the Company') as of March 31 2021 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial control with reference to standalonefinancial statements 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 (ICA1). 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 financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAl and asprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of interna! 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 tofinancial statements was established and maintained and if such controls operatedeffectively 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 standalone financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone 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 withreference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company's Internal Financial Controls with reference to Financial Statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone Ind AS financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's InternalFinancial Control over Financial Reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone 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) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone Ind AS Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

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 Financial Statements to future periods are subject to the risk that theInternal Financial Control with reference to Financial Statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate InternalFinancial Controls with reference to Financial Statements and such Internal FinancialControls with reference to Financial Statements were operating effectively as at March 312021 based on the criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Mote on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia

For M.P. Chitale & Co.
Chartered Accountants
ICAI FRN.101851W Ashutosh Pedhekar
Partner
ICAI Membership No. 041037
UDIN 21041037AAAADH1362
Place: Mumbai
Date: June 302021

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