We have audited the financial statements of Dr Lalchandani Labs Limited (“the Company”), which comprise the
balance sheet as at 31st March 2024, 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 notes to the financial statements, including
a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the
financial statements”).
Our opinion is qualified for
• According to the information and explanations given to us and the records examined by us, the accounts
of the company with the lenders are NPA and no working capital limit is sanctioned or renewed during
the year;
• As the account has been classified as NPA by various banks and NBFC’s, Company has done one time
settlement with various banks and NBFC’s during the year and booked one time settlement gain of Rs.
1.19 crores in exceptional gains;
• Company has defaulted in repayment of principal and interest thereon of various term loan and
unsecured loans from banks & NBFC’sdespite of having significant cash & cash equivalents;
• Long term Borrowing are continued to be classified as non-performing by most of the lenders and actual
liability towards interest, principal etc. is pending to be crystalized. In view of the uncertainty the
company has not provided interest including penal interest and other dues up to 31.03.2024 on such
borrowings, to the extent the same has remain unpaid. Hence the operational loss suffered by the
company is understated by the aforesaid interest/penal interest;
• The company has not paid statutory dues i.e. ESI, PF and TDS for the financial year under consideration
and also for the previous financial years. (Details has been annexed in CARO Report);
• Gratuity Liability & Leave Encashment Liability is not provided for in the books of accounts of the
company and is thus not in accordance with Accounting Standard-15 on “Employee Benefits” issued by
the Institute of Chartered Accountants of India.
Subject to above,
• In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid 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 accounting principles generally
accepted in India, of the state of affairs of the Company as at 31st March 2024, profit and other
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 SAs are further described in the Auditor’s Responsibilities for the Audit of the 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 ethical requirements that are relevant to our audit of the
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
obtained by us is sufficient and appropriate to provide a basis for our opinion on the financial statements.
Emphasis of Matter
• Company has not received balance confirmation from Amount receivables, loans & Advances and
Amount Payables. We have relied on the management representations in regard to the confirmation of
these balances; and
• Despite of the long ageing of receivables, Company has not provided for the provision of doubtful debts.
Other Information
The Company’s management and Board of Directors are responsible for the other information. The other information
comprises the information included in the Company’s annual report but does not include the financial statements and our
auditors’ report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with
the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and take necessary actions, as applicable under the relevant
laws and regulations.
Management’s and Board of Directors’ Responsibilities for the Financial Statements
• The Company’s management and Board of Directors are responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give a true and
fairview of the state of affairs, profit/loss and other comprehensive income, changes in equity and
cash flowsof the Company in accordance with the accounting principles generally accepted in India,
including the Accounting Standards (AS) specified under section 133 of the Act. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management and Board of Directors are responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Board of Directors
either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do
so.
The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the company has adequate internal financial controls with reference
to financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management and Board of Directors.
• Conclude on the appropriateness of management’s and Board of Directors’ use of the going concern
basis of accounting in preparation of financial statements and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors’ report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditors’ 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 financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
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 financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors’ report unless law or regulation precludes public disclosure 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 of India in terms of section 143(11) of the Act, we give in the “Annexure A” a statement
on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) As required by Section 143(3) of the Act, 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 account 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), the
statement of changes in equity and the statement of cash flows dealt with by this Report are in
agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the AS specified under section 133
of the Act
(e) On the basis of the written representations received from the directors as on 31st March 2024, taken
on record by the Board of Directors, none of the directors is disqualified as on 31st March 2024
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 with reference to financial statements
of the Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure B”.
(B) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11
of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
a) The Company has no pending litigations as at 31st March 2024.
b) The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.
c) There has been no delay in transferring amounts required to be transferred to the Investor Education
and Protection Fund by the Company.
(i) The Management has represented that, to the best of its knowledge and belief, no funds
have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other persons or entities,
including foreign entities (“Intermediaries”), with the understanding, whether recorded i n
writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on
behalf of the Company or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(ii) The Management has represented that, to the best of its knowledge and belief, no funds
have been received by the Company from any persons or entities, including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the
Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries
d) Based on the audit procedures performed that have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e) contain any material mis- statement.
e) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account
using accounting software which has a feature of recording audit trail (edit log) facility is applicable
to the Company with effect from April 1, 2024, and accordingly, reporting under Rule 11(g) of
Companies (Audit and Auditors) Rules, 2014 are applicable for the financial year ended March 31,
2024.Based on our examination, the audit trail has been preserved by the company as per the
statutory requirements for record retention. Based on our examination which included test checks,
the Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software. Further, during the course of our audit we did not
come across any instance of audit trail feature being tampered with in respect of the accounting
software where audit trail was enabled.
(C)With respect to the matter to be included in the Auditors’ Report under section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by
the Company to its directors during the current year are not in accordance with the provisions of section
197 of the Act.
for Jain Agarwal & Company.
Chartered A ccountants
Firm’s Registration No: 024866N
Sd/-
CA. Karan Jain
Partner
Place: New Delhi Membership No: 521992
Date: May 30, 2024 UDIN: 24521992BKHRZN8022
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