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Vimta Labs Ltd.

BSE: 524394 Sector: Others
NSE: VIMTALABS ISIN Code: INE579C01029
BSE 00:00 | 14 Oct 298.00 -3.00
(-1.00%)
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303.55

HIGH

309.45

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297.20

NSE 00:00 | 14 Oct 297.95 -3.20
(-1.06%)
OPEN

301.50

HIGH

310.00

LOW

297.00

OPEN 303.55
PREVIOUS CLOSE 301.00
VOLUME 2058
52-Week high 346.35
52-Week low 124.10
P/E 21.07
Mkt Cap.(Rs cr) 659
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 303.55
CLOSE 301.00
VOLUME 2058
52-Week high 346.35
52-Week low 124.10
P/E 21.07
Mkt Cap.(Rs cr) 659
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vimta Labs Ltd. (VIMTALABS) - Auditors Report

Company auditors report

To the Members of Vimta Labs Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofVimta Labs Limited ("the Company") which comprise the balance sheet as at March31 2021 the Statement of Profit and Loss (including other comprehensive income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and notes to the financial statements including a summary of the SignificantAccounting Policies and other explanatory information("the standalone financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. 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 (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made 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 audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe Key Audit Matters to be communicated in our report.

Sl. Key Audit Matter How the matter was addressed in our audit
1. Provision for impairment loss in accounts receivables. In view of significance of the matter we applied the following audit procedures in respect of this area among others to obtain sufficient appropriate audit evidence:
The credit loss provision in respect of account receivables represent management's best estimate of the credit losses incurred on the receivables at the balance sheet date.
• Understand and assess the management's estimate and related policies used in the credit loss analysis.
• Obtained an understanding of and assessed the design implementation and operating effectiveness of key controls relating to collection monitoring process credit control process and estimation of expected credit losses.
• Reviewed the data flows from source systems to spreadsheet-based models to test their completeness and accuracy.
We have considered provisioning for credit loss as a key audit matter because of the significance of balance of trade receivables to the balance sheet and because of the the calculation of credit loss provision is a complex area and requires management to make significant assumptions on customer payment behaviour and estimating the level and timing of expected future cash flows. • For Expected Credit Loss (ECL) of trade receivables assessed on individual level by the management examined on a test check basis the objective evidence relating to the impairment of trade receivables and the key assumptions used in the estimate of the cash shortfalls and reviewed whether amounts have been recovered after the end of reporting period.
• For samples selected circularized independent confirmations and where confirmations were not received performed alternate testing procedures. This includes testing on sample basis subsequent collections for the outstanding receivables.
• Obtained debtors' credit information on sample basis to ascertain whether the classification of debtors is in compliance with the company's policy.
• Reviewed the management's ageing analysis based on days past due by examining the original documents (such as invoices and bank deposit advices).
Refer to Note No.12 to the standalone Financial statements.
• Verified the calculation of ECL of each type of trade receivables according to the provision matrix.

Information other than the Standalone Financial Statements andAuditor's Report thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theAnnual Report but does not include the standalone financial statements and our auditor'sreport thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate 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 statements 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 isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with the SAs we exerciseprofessional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)

(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists 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 conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial 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 standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The standalone financial statements dealt with by this Report arein agreement with the relevant books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under Section 133 of the Act.

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure A". Our reportexpresses an unmodified opinion on the adequacy and operating effectiveness of thecompany's internal financial controls with reference to financial statements.

(g) With respect to the other matters to be included in the Auditor'sReport in accordance 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 theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company as detailed in Note No.34 to the standalone financialstatements has disclosed the impact of pending litigations on its financial position asat 31st March 2021.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as at 31stMarch 2021.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31st March 2021.

2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of section 143 (11) ofthe Act we give in "Annexure-B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For GATTAMANENI & CO.
Chartered Accountants
(Firm.Regn.No:009303S)
G. SRINIVASARAO
Partner
Place: Hyderabad (ICAI Ms. No. 210535)
Date: May 14 2021 UDIN: 21210535AAAADT3508

Annexure - A to the Independent Auditor's Report

(Referred to in paragraph 1(f) under "Report on Other Legal andRegulatory Requirements" section of our report of even date to the Members of VimtaLabs Limited)

Report on the Internal Financial Controls with reference to financialstatements of the Company under Clause (i) of Subsection (3) of Section 143 of theCompanies Act 2013

We have audited the Internal Financial Controls with reference tofinancial statements of VIMTA LABS LIMITED ("the Company") as of March 31 2021in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining Internal Financial Controls based on the internal controls with referenceto financial 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 ("The Guidance Note"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to respective company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financialcontrols with reference to financial statements of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan 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 tofinancial statements were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to financial statements.

Meaning of Internal Financial Controls with reference to financialstatements

A company's internal financial controls with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to financial statements includes those policies andprocedures that (i) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (ii) provide reasonable assurance that transactions are recorded as necessary topermit preparation of 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(iii) 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 financial statements.

Inherent Limitations of Internal Financial Controls with reference tofinancial statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial controls 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 to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols were operating effectively as at March 31 2021 based on the internal controlswith reference to financial statements criteria established by the Company considering theessential components of Internal Financial Controls stated in the Guidance Note.

For GATTAMANENI & CO.
Chartered Accountants
(Firm.Regn.No:009303S)
G. SRINIVASARAO
Partner
Place: Hyderabad (ICAI Ms. No. 210535)
Date: May 14 2021 UDIN: 21210535AAAADT3508

Annexure -B to Independent Auditor's Report

(Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date to the Members of Vimta Labs Limited)

Statement on the matters specified in Paragraphs 3 and 4 of theCompanies (Auditor's Report) Order 2016 ("CARO")

(i) In respect of the Company's fixed assets:

(a) The company has maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets.

(b) The company's fixed assets have been physically verified by themanagement at reasonable intervals as per a regular programme of verification which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification made during the year.

(c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds / registeredsale deeds provided to us we report that the title deeds of all the immovable propertiesof land and buildings which are freehold are held in the name of the company as at thebalance sheet date.

(ii) According to the information and explanations given to us thecompany's inventory has been physically verified by the management at reasonable intervalsand in our opinion the frequency and procedures of verification are reasonable. Nomaterial discrepancies were noticed between the physical stocks and the book stocks onsuch verification made during the year.

(iii) According to the information and explanations given to us andbased on our audit the Company has granted unsecured loans to its wholly owned subsidiarycompany covered in the register maintained U/s.189 of the Companies Act 2013 ("theAct"); and

(a) In our opinion the terms and conditions of grant of such loans arenot prejudicial to the company's interest.

(b) The schedule of repayment of principal and payment of interest hasbeen stipulated and the repayments / receipts are regular.

(c) There is no overdue amount in respect of the loans granted to thewholly owned subsidiary company.

(iv) In our opinion and according to the information and explanationsgiven to us the company has not given/made any loans investments and guarantees andprovided any security to which the provisions of Section 185 is applicable. Further inour opinion the company has not entered into any transaction covered under section 185 ofthe Act.

(v) The Company has not accepted deposits during the year and does nothave any unclaimed deposits as at the year end. Hence the provisions of clause 3(v) ofthe CARO are not applicable to the company.

(vi) As per the information and explanation furnished to usmaintenance of Cost records has been specified by the Central Government U/s.148(1) of theAct for this company and we are of the opinion that the prescribed accounts and recordshave been made and maintained by the company. However we have not conducted any audit ofthe same.

(vii) According to the information and explanations given to us andbased on our audit in respect of statutory dues:

(a) The company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax Goodsand Service Tax Duty of Customs Duty of Excise Cess and other material statutory duesapplicable to it with the appropriate authorities.

There were no undisputed amounts in respect of Provident FundEmployees' State Insurance Income Tax Goods and Service Tax Duty of Customs Duty ofExcise Cess and other material statutory dues as at March 31 2021 for a period of morethan six months from the date they became payable.

(b) There were no material dues of Income tax Goods and Service TaxDuty of Customs Duty of Excise Cess and other material statutory dues which have notbeen deposited on account of any dispute.

(viii) The Company has not defaulted in repayment of loans or borrowingto a financial institution bank and Government. The company has not issued debentures.

(ix) During the year under review the company has not raised anymoneys by way of initial public offer or further public offer (including debtinstruments). The Term loans availed by the company were applied for the purposes forwhich those were raised.

(x) To the best of our knowledge and according to the information andexplanations given to us during the year no fraud by the company or no fraud on theCompany by its officers or employees has been noticed or reported.

(xi) In our opinion and according to the information and explanationsgiven to us the company has paid / provided managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with schedule V tothe Act.

(xii) The Company is not a Nidhi Company and hence reporting underclause 3(xii) of CARO is not applicable to the company.

(xiii) In our opinion and according to the information and explanationsgiven to us the company is in compliance with Section 177 and 188 of the Act and whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause 3(xiv) of the CARO is not applicable to the company.

(xv) In our opinion and according to the information and explanationsgiven to us during the year the company has not entered into any non-cash transactionswith its Directors or persons connected to its Directors. Hence provisions of Section 192of the Companies Act 2013 are not applicable to the company.

(xvi) The company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For GATTAMANENI & CO.
Chartered Accountants
(Firm.Regn.No:009303S)
G. SRINIVASARAO
Partner
Place: Hyderabad (ICAI Ms. No. 210535)
Date: May 14 2021 UDIN: 21210535AAAADT3508

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