We have audited the accompanying standalone financial results of Neogem India Limited (hereinafter referred to as the
"Company"), for the year ended on March 31, 2024 ("the statement") attached herewith, being submitted by the company
pursuant to the requirement of Regulation 33 and 52 of the SEBI (Listing Obligation and disclosure Requirements) Regulation,
2015, as amended (the "Listing Regulations").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone annual
financial results:
i. is presented in accordance with the requirements of Regulation 33 and 52 of the Listing Regulations in this regard
and;
ii. does not give a true and fair view in conformity with the recognition and measurement principles laid down in the
applicable accounting standard and other accounting principles generally accepted in India, of the net loss and its
cash flow other comprehensive income and other financial information of the Company for the year ended March
31, 2024.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies
Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's
Responsibilities for the Audit of the Standalone Financial Results" 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 Companies Act, 2013 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 on
the standalone annual financial statement.
Basis of Adverse Opinion
The Company's is unable to repay its liability (current & non-current) as on March 31, 2024. These events indicate a material
uncertainty that may cast significant doubt on the Company's ability to continue as a going concern and, therefore, it may be
unable to realize its assets and discharge its liabilities in the normal course of business. The financial statements (and notes
thereto) do not disclose this fact.
Adverse Opinion
In our opinion, because of the omission of the information mentioned in the Basis for Adverse Opinion paragraph, the financial
statements do not give the information required by the Companies Act, 2013 in the manner so required and also do not 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, and its profit/loss and its cash flows for the year ended on that date.
Emphasis of Matters
Attention is invited to Note No. 3 in the financial statement, which indicate that the company has incurred a loss of Rs.
80,16,827.54 during the year and as at 31st March, 2024 has a negative net worth of Rs. Rs. 35,40,69,560/-, if provision for the
unrealized sundry debtors outstanding for more than three years amounting to Rs. 41,10,67,159/- is made by the company, the
company's current liability will exceed current assets of the company. Sundry debtor's amount outstanding are unconfirmed by
the parties and outstanding for more than three years.
These condition along with Other Matters set forth, indicate the material uncertainty that may cast significant doubt about the
Company's ability to continue as a going concern. In absence of sufficient appropriate audit evidence in support of management's
assessment regarding going concern basis of accounting is appropriate. Our opinion is not modified in respect of this matter.
Other Matter
Without qualifying our opinion, we draw attention to financial statement relating to cash credit limit from Punjab National Bank
and Bank of India for Rs. 10 crore and 5 crore respectively, which has been classified as "Non - Performing Assets" by the lead
banker as on 31-03-2016. The company has not received balance confirmation from the bankers since 31-03-2016. Pending
confirmation received the company has not provided for interest payable in the financial statement till 31-03-2024, since the
same is not quantifiable and accordingly the loss for the year is understated to that extent.
The company has stopped manufacturing activities since 01-01-2018 and no detailed plans are made available to us regarding
commencement of business activity in near future. The company is in the process of restructuring/revival of its business, in view
of the management's expectation of the successful outcome of revival of its business the financial statement has been prepared
on going concern basis. However, in view of the above uncertainty we are unable to comment on the ability of the company to
continue as a going concern and the consequential adjustment to the accompanying financial statement if any that might have
been necessarily had the financial statement been prepared under liquidation basis.
We refer to the outstanding debtor's receivable as reflected in current assets of Rs. 41,10,67,159/- which are outstanding for
more than three years. The amount outstanding are not confirmed by the parties. In our opinion the provision for the amount
outstanding for more than three years of Rs. 41,10,67,159/- be made as these are unrealized and unconfirmed by the parties, no
steps have been taken in the current year either to confirm the balances from parties or for recovery of amount from parties
outstanding for over three years.
We refer to the outstanding creditor's payable as reflected in current liabilities of Rs. 15,82,47,094/- which are outstanding for
more than three years. The amount outstanding are not confirmed by the parties. In our opinion the amount outstanding for
more than three years be written back, no steps have been taken in the current year to pay the balances to parties or for
settlement of amount outstanding for over three years.
We refer to the outstanding provisions of Rs. 1,52,76,630/- towards expenses of Rent & Water charges as reflected under other
current liabilities are outstanding for more than three years. The amount outstanding are not confirmed by the parties. In our
opinion the amount outstanding for more than three years be written back, no steps have been taken in the current year to pay
the balances to parties or for settlement of amount outstanding for over three years.
Management's and Board of Director Responsibilities for the Standalone Financial Results
The standalone financial results have been prepared on the basis of the standalone annual financial statements.
The Company's management and the Board of Directors are responsible for the preparation and presentation of the statement
that gives a true and fair view of the net loss and other comprehensive income of the Company and other financial information
in accordance with the applicable accounting standard prescribed under section 133 of the Act read with relevant rules issued
thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 and 52 of the Listing
Regulation. This responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 judgements and estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the statement that gives
a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the statement, the 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
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone 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 auditor's 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 the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone
financial results.
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 Companies Act, 2013, we are also responsible for expressing our opinion
on whether the company has adequate internal financial controls system 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.
• Conclude on the appropriateness of management's use of the going concern basis of accounting 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 auditor's 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 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 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 auditor's 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 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 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, Statement of Changes
in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of
account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by
the Board of Directors, none of the directors is disqualified as on March 31, 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 over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in "Annexure A". 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, as amended in our opinion and 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 financial position in its standalone financial
statements - Refer Note No 20 to the standalone financial statements;
ii. The Company has disclosed and made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There is not required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government in terms of
Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Ashok Bairagra & Associates
Chartered Accountants
Firm Registration Number: 118677W
Ashish Jalan
Partner
Membership Number: 125707
UDIN: 24125707BKCSTU8001
Place : Mumbai
Date : 30th May, 2024
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