Independent Auditor’s Report
To the Members of Morepen Laboratories Limited
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the accompanying standalone
financial statements of Morepen Laboratories Limited
("the Company"), which comprise the Balance Sheet as
at March 31, 2023, the Statement of Profit and Loss
(including Other Comprehensive Income), Statement of
Changes in Equity and Statement of Cash Flows for the
year then ended, and summary of significant
accounting policies and other explanatory information
(hereinafter referred to as "the standalone financial
statements").
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013 ("the Act") in the
manner so required and give a true and fair view in
conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015,
as amended, ("Ind AS") and other accounting principles
generally accepted in India, of the state of affairs of the
Company as at March 31, 2023, the profit and total
comprehensive income, changes in equity and its cash flows
for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described
in the "Auditor's Responsibilities for the Audit of standalone
financial statements" section of our report. We are
independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of
India together with the independence requirements that are
relevant to our audit of the standalone financial statements
under the provisions of the Act and the rules thereunder, and
we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report.
However, future events or conditions may cause the
company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the
standalone financial statements represent the
underlying transaction and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
financial statements may be influenced. We consider
quantitative materiality and qualitative factor in (i)
planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters that were
of most significance in the audit of the standalone
financial statements of the current period and are
therefore the key audit matters. We describe these
matters in our auditor's report unless law or regulation
precludes public disclosures about the matter or when,
in extremely rare circumstances, we determine that a
matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be 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, 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 the Order, to 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 best of our knowledge
and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of accounts as required
by law have been kept by the company so far as it
appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss
(including other comprehensive income), Statement
of Changes in Equity and the Statement of Cash
Flows dealt with by this report are in agreement with
the books of accounts.
d) In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards prescribed under section 133 of the Act
read with relevant rules issued thereunder.
e) On the basis of the written representations received
from the directors as on 31stMarch,2023 taken on
record by the Board of Directors, none of the
directors are disqualified as on 31st March 2023
from being appointed as a director in terms of
section 164(2) of the Act.
f) With respect to the adequacy of the internal financial
controls over financial reporting of the company and
the operating effectiveness of such controls, refer to
our separate report in "Annexure B".Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's
internal financial controls over financial reporting.
g) With respect to the other matters to be included in the
Auditor's Report 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 the explanations given to us, the
remuneration paid by the company to its directors
during the year 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's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our
opinion and to the best of our information and
according to the explanations given to us:
a) The Company has disclosed the impact of
pending litigations on its financial position in its
standalone financial statements.
(Referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of our
report of even date on the standalone financial statements of Morepen Laboratories Limited for the year ended
31st March, 2023)
(i) (a) (A) The company is maintaining proper
records showing full particulars,
including quantitative details and
situation of Property, Plant and
Equipment;
(B) The company is maintaining proper
records showing full particulars of
intangible assets;
(b) Property, Plant and Equipment have been
physically verified by the management at
reasonable intervals and no material
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 financial statements are held in the name
of the company;
(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) According to the information and
explanations given to us, no proceedings
have been initiated or are pending against the
company for holding any benami property
under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and rules made
thereunder;
(ii) (a) As explained to us , physical verification of
inventory has been conducted at reasonable
intervals by the management and in our
opinion, the coverage and procedure of such
verification by the management is
appropriate and no discrepancy of 10% or
more in the aggregate for each class of
inventory was noticed;
(b) The company has not been sanctioned
working capital limits in excess of five crore
rupees, in aggregate, during the year from
banks or financial institutions on the basis of
security of current assets;
(iii) According to the information and explanations
given to us and based on audit procedures
performed, we are of the opinion that during the
year the company has made investments of '5.00 lakhs
in equity share capital in newly created wholly owned
subsidiary Morepen Rx Limited, but not provided any
guarantee or security or granted any loans or advances
in the nature of loans, secured or unsecured,
to companies, firms, Limited Liability Partnerships or any
other parties. In our opinion, investment made in wholly
owned subsidiary is not prejudicial to the company's
interest;
(iv) According to the information and explanations given to
us and based on audit procedures performed, we are of
the opinion that in respect of loans, investments,
guarantees and security, the company has complied
with the provisions of section 185 and 186 of the Act;
(v) According to the information and explanations given to
us, the company is complying Hon'ble National
Company Law Tribunal (NCLT) order dated 12.03.2018
in the matter of fixed deposit holders. (Refer Note 13(G)
to standalone financial statements);
(vi) According to the information and explanations given to
us, maintenance of cost records has been specified by
the Central Government under subsection (1) of section
148 of the Companies Act and as explained to us such
accounts and records have been so made and
maintained by the company;
(vii) (a) According to the information and explanations
given to us and based on audit procedures
performed, the company is regular in depositing
undisputed statutory dues including Goods and
Services Tax, provident fund, employees' state
insurance, sales-tax, service tax, duty of customs,
duty of excise, value added tax, cess and any other
statutory dues to the appropriate authorities except
payment of advance income tax. No such dues are
outstanding as on 31st March 2023 for a period
exceeding six months;
(b) According to the records and information and
explanation given to us, there are no dues in
respect of Income tax, Sales tax, VAT, Service-tax,
Custom duty, cess outstanding as at March
31,2023 due to any dispute;
(viii) According to the records and information and
explanation given to us, no transaction/amount
has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax
Act, 1961;
(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, we are of the
opinion that no material uncertainty exists as on
the date of the audit report that company is
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;
(xx) (a) According to the information and
explanations given to us and based on our
examination of the records of the company,
there is no unspent amount required to be
transferred to a Fund specified in Schedule VII
to the Companies Act in respect of other than
ongoing projects as per sub-section (5) of section
135 of the said Act;
(b) According to the information and explanations
given to us and based on our examination of the
records of the company, there is no amount
remaining unspent under sub-section (5) of section
135 of the Companies Act which is required to be
transferred to a special account in compliance with
the provision of sub-section (6) of section 135 of the
said Act;
(xxi) There is no qualification or adverse remarks by the
respective auditors in the Companies (Auditor's Report)
Order (CARO) reports of the companies included in the
consolidated financial statements.
For S.P Babuta & Associates
Chartered Accountants
F.No. 007657N
CA S.P Babuta
Managing Partner
FCA, AIIA, IP, DISA, CCA
GST Cert, Forensic Auditor
Date :16th May, 2023 Membership No. : 086348
Place :Gurugram, Haryana UDIN : 23086348BGYBEC6052
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