MANGALAM DRUGS AND ORGANICS LIMITED
Report on the Audit of the Standalone Financial Statements
The Annexure A referred to in Independent Auditors’ Report to the members of the Company on the financial statements for the year ended 31 March
2025 we report that:
i. (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of Intangible assets.
b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has conducted physical verification of major fixed assets of its property, plant and equipment. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No discrepancies were noticed on such verification.
c) The title deeds of all the immovable properties (other than properties where the Company is the Lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the Standalone financial statements are held in the name of the Company. ( Ref Note No. 2 - Note on Property, Plant and Equipment of financial statements)
d) The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets) or Intangible assets or both during the year.
e) No proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
ii a) The inventory, except goods-in-transit and stocks lying with third parties, has been physically verified by the management at each quarter. For stocks lying with third parties at the year-end, written confirmations have been obtained and for goods-in-transit subsequent evidence of receipts has been linked with inventory records. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were more than 10% in the aggregate of each class of inventory.
b) The Company has been sanctioned working capital limits in excess of five crore rupees, from the banks and financial institutions on the basis of security of current assets; the quarterly returns or statements filed by the Company with such banks and financial institutions are not in agreement with the books account of the Company.
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Quarter
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Statements Submitted to The Bank
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As per the Book of Accounts
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Difference
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Stock (a)
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Debtors(b)
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Stock (c)
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Debtors(d)
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Stock (a-c)
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Debtor (b-d)
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Q1
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11,047.75
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3,533.65
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12,882.43
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2,938.96
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(1,834.68)
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594.69
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Q2
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13,643.16
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2,307.95
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14,295.26
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2,563.84
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(652.10)
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(255.89)
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Q3
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12,958.48
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2,732.94
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13,467.56
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3,209.62
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(509.08)
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(476.68)
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Q4
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13,748.82
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3,069.09
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13,880.18
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3,598.58
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(131.36 )
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(529.49)
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iii. During the year, The Company has not made investments in, provided any guarantees or securities or advances in the nature of loan, secured or unsecured to companies, firm, Limited Liability Partnerships or any other parties
iv. During the year, the Company has not given any loans, guarantees, and securities and invested any amount. Hence reporting under these clause related with provisions of section 185 and 186 of the Act are not applicable.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Hence the directions issued by Reserve Bank of India in relation to sections 73 to 76 or any other relevant provisions of the Companies Act and the rules made thereunder are not applicable.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the order made by the Central Government for maintenance of cost records prescribed under sub-section 1 of section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us and the records of the Company examined by us, in our opinion,
a. The Company is regular in depositing undisputed statutory dues including Goods and Services Tax, provident fund, employees' state insurance, income-tax, duty of customs, cess and any other statutory dues to the appropriate authorities.
Further no undisputed amounts payable in respect of provident fund, employee state insurance, income tax, GST, duty of customs, cess and any other material statutory dues were in arrears as at 31st March 2025 for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no statutory dues relating to Provident Fund, Employees State Insurance, or Cess or other statutory dues, which have not been deposited with the appropriate authorities on account of any dispute. The following dues of income tax have not been deposited by the Company on account of dispute:
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Name of the statute
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Nature of Dues
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Amount (Rs. In Lacs)
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Period to which the amount relates
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Forum where dispute is pending
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The Income-tax Act, 1961
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Income Tax
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2.20
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2017-18
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Commissioner of Income tax
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Appeals
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viii. During the year, there are no transactions recorded in the books of account which have been surrendered or disclosed as income during the
year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
ix. (a) During the year, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any
lender.
(b) During the year, the Company has not been declared a wilful defaulter by any bank or financial institution or any other lender.
(c) During the year, term loans availed from banks were applied for the purpose for which the loans were obtained.
(d) During the year, funds raised on short term basis have not been utilised for long term purposes.
(e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries as defined
under the Act.
x. (a) During the year, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments).
Accordingly, clause 3(x) (a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures. Hence reporting is not applicable.
xi. (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, no fraud
by the Company or on the Company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Act has been
filed by the auditors in Form ADT-4 as prescribed under Rule13 of the Companies (Audit and Auditors) Rules, 2014 with the Central
Government.
(c) As represented to us by the management, there are no whistle blower complaints received by the Company during the year.
xii. In our opinion the Company is not a Nidhi Company. Accordingly reporting under clause 3(xii)(a), (b) and (c) of the Order is not applicable.
xiii. As per information and explanation given to us all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act and the details have been disclosed in notes to the financial statements, as required by the applicable accounting standards.
xiv. (a) The Company has an internal audit system which has been conducted by the Independent Chartered Accountants which is in
commensurate with the size and nature of its Business.
(b) The internal audit reports of the Company issued by him, till date of the audit report for the period under audit have been considered by us.
xv. The Company has not entered into any non-cash transactions with directors or persons connected with him, as per referred to in section 192 of the Act.
xvi. (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) (a)
of the Order is not applicable.
(b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) (b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi) (c) of the Order is not applicable.
(d) According to the information and explanations provided to us during the course of audit, the Group does not have any CIC. Accordingly, the requirements of clause 3(xvi) (d) are not applicable.
xvii. The Company has not incurred any cash losses in the current and in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
Also refer to the Other Information paragraph of our main audit report which explains that the other information comprising the information included in Company's annual report is expected to be made available to us after the date of this auditor’s report.
xx. In our opinion and according to the information and explanations given to us, the provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility are not applicable to the company for the financial year under review. Accordingly, reporting under Clause 3(xx) of the Companies (Auditor’s Report) Order, 2020 is not applicable. Further, there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project other than ongoing projects. The Company has complied the provisions under section 135 of the Act. Hence there are no unspent amount to a Fund specified in Schedule VII to the Act.
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