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Vineet Laboratories Ltd.

BSE: 543298 Sector: Health care
NSE: VINEETLAB ISIN Code: INE505Y01010
BSE 00:00 | 03 Feb 54.05 -1.30
(-2.35%)
OPEN

57.05

HIGH

57.05

LOW

51.95

NSE 00:00 | 03 Feb 54.25 -0.60
(-1.09%)
OPEN

55.65

HIGH

56.65

LOW

51.80

OPEN 57.05
PREVIOUS CLOSE 55.35
VOLUME 15857
52-Week high 81.85
52-Week low 47.35
P/E 52.48
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 57.05
CLOSE 55.35
VOLUME 15857
52-Week high 81.85
52-Week low 47.35
P/E 52.48
Mkt Cap.(Rs cr) 50
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vineet Laboratories Ltd. (VINEETLAB) - Auditors Report

Company auditors report

To the Members of

Vineet Laboratories Limited

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2022 and its profit and its cash flows for the year ended on that date.

Report on the Financial statements

We have audited the accompanying financial statements of VINEET LABORATORIES LIMITED("the Company") which comprise the Balance Sheet as at 31stMarch 2022 the Statement of Profit and Loss the Cash Flow Statement and the statementof equity for the year ended and a summary of the significant accounting policies andother explanatory information.

Management's Responsibility for the Financial statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Emphasis of Matters

1. During the year 2020-21 M/s. Ortin Laboratories Ltd has demerged and Unit-II of M/s.Ortin Laboratories Ltd is merged with M/s. Vineet Laboratories Limited and the accounts ofUnit -II of M/s. Ortin Laboratories Ltd considered in to the books of accounts of thecompany as per Order of the Hon'ble NCLT Hyderabad Bench dated 24.12.2020. Accordinglythe Accounts of Unit-II of M/s. Ortin Laboratories Ltd have been considered in the book ofaccounts of M/s. Vineet Laboratories Ltd for the financial year 2020-21 and financial year2021-22.

2. During the year under review the company has received the notice from Addl DirectorDirector General of GST Intelligence Visakhapatnam Zone u/s. 74(5) of CGST Act 2017 withregard to availing of input tax credit of Rs.8860129/- on invoices without movement ofgoods of Rs.49222940/- from M/s. Raj Solvents Pvt Ltd during the years 2019-20 &2020-21 relating to Unit-II of M/s. Ortin Laboratories Ltd. During the year the Companyaccounted the liability on account of wrong availing of ITC of Rs.8860129/- andconsidered as expenditure for the year. On account of this the profit of the company wasreduced by Rs.8860129/-.

3. During the year under review the company has received the notice from AdditionalDirector Director General of GST Intelligence Visakhapatnam Zone u/s.74(5) of CGST Act2017 with regard to availing of input tax credit of Rs.1490453/- on invoices withoutmovement of goods of Rs.8280290/- from M/s. Raj Solvents Pvt Ltd during the year2021-22. On account of the above transactions the profit of the company lower stated tothe extent of Rs.9770743/-.

4. The company has received U/s. 91 & 160 Cr.P.C.1973 on 22.03.2022 from CentralBureau of Investigation Banking Securities & Fraud Branch Bangalore on LCNo.0192111LC0000981 for Rs. 23163000/- dated 31.10.2011 with regard to discounting ofthe LC.

5. During the year under review the company has made purchases to the extent ofRs.647499598/- from the related parties and sales to related parties ofRs.868911276/- and the same has been netted off in the party ledger accounts.

6. The company is in the business of manufactures of pharmaceutical intermediates andthe inventories are considered as certified by the management.

7. Account receivables and payables are subject to confirmation from the respectiveparties and majority of the accounts receivable are long outstanding's.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theorder.

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 except the sales madethrough trading activities.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) 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 financial statements to the financial statements;

ii. The Company did not have any derivative contracts and the Company has not madehedging on foreign currency exposure for material foreseeable losses if any onlong-term contracts to the financial statements;

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

For M M REDDY & CO.
Chartered Accountants
Firm Reg No.010371S
Date: 28.05.2022
Place: Hyderabad M.Madhusudhana Reddy
Partner
Membership No.213077
UDIN: 22213077AJUUFO1272

Annexure - A to the Independent Auditors' Report:

The Annexure referred to the independent auditors' report to the members of the companyon the Ind AS financial statements for the year ended 31st March 2022 wereport that

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

(b) A major portion of fixed assets have been physically verified by the managementduring the year at reasonable intervals; no material discrepancies were noticed on suchverification.

(c) Book of accounts of the company does not carry any immovable properties for thereporting period. Hence the above point is not applicable.

ii. (a) As explained to us the inventory has been physically verified by themanagement during the year at reasonable intervals;

(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification of stocks as compared to book records.

iii. The Company has granted unsecured loans to companies firms or other partiescovered in the register maintained under Section 189 of the Companies Act 2013 as below:

S. No Name of the Company Nature of Relation Amount in Rs.
I Unsecured Loans given
i. Wohler Laboratories Private Limited Associate Company 20470045
ii. Vineet Life Sciences Private Limited Associate Company 55377958
II Sales
i. Vineet Life Sciences Private Limited Associate Company 241106273
III Purchases
i. Vineet Life Sciences Private Limited Associate Company 489587662

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 orany other relevant provisions of the Companies Act 2013 and no order has been passed byCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courtor any tribunal.

vi. In our opinion and according to the information and explanations given to usmaintenance of cost records as specified by the Central Government under sub section (1)of section 148 of the Companies Act 2013 is not applicable to the company.

vii.(a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company is regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax Goods andservice Tax cess and any other statutory dues to the appropriate authorities and noundisputed amounts payable were outstanding as at 31st March 2022 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of Income Tax or Sales Tax or Service Tax orduty of customs or duty of excise or value added tax or Goods and service Tax or cess asat 31st March 2022 which have not been deposited on account of a dispute.

viii. According to the information and explanations given to us and on the basis ofexamination of the records the Company has not defaulted in the repayment of loans alongwith interest to any financial institutions banks or dues to debenture holders as at thebalance sheet date.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Companies (Auditor's Report) Order 2020 is not applicable.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

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

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Companies (Auditor'sReport) Order 2020 is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment of equity share converted in to equal number equity shares of the company. Therequirement of Section 42 and all the other applicable provisions of the Companies Act2013 and SEBI Regulations were complied with.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Companies (Auditor's Report) Order 2020 is not applicable.

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

xvii. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not incurred any cash losses inthe financial year and in the immediately preceding financial year.

xviii. There has been no instance of any resignation of the statutory auditors occurredduring the year.

xix. According to the information and explanations given to us and based on ourexamination of the records of the Company the company is able to pay off the existingliabilities for next one year and material uncertainty doesn't exist as on date of auditreport.

xx. CSR is not applicable to this company.

xxi. There are no adverse remarks in the audit reports issued by the respectiveauditors in case of companies included in the consolidated financial statements.

For M M REDDY & CO.
Chartered Accountants
Firm Reg No. 010371S
Date: 28.05.2022
Place: Hyderabad M. Madhusudhana Reddy
Partner
Membership No.213077
UDIN: 22213077AJUUFO1272

Annexure - B to the Independent Auditors' Report:

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 over financial reporting of M/s. VINEETLABORATORIES LIMITED ("the Company") as of 31st March 2022 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofun-authorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion as mentioned under emphasis of matters in our report the Company hasin all material respects an adequate internal financial controls system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at 31st March 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For M M REDDY & CO.
Chartered Accountants
Firm Reg No.010371S
Date: 28.05.2022 M.Madhusudhana Reddy
Place: Hyderabad Partner
Membership No.213077
UDIN: 22213077AJUUFO1272

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