Mangalam Drugs & Organics : Resignation

V. S. SOMANI & CO.

CHARTERED ACCOUNTANTS

127, UNIQUE INDUSTRIAL ESTATE, TWIN TOWER LANE,

OFF. VEER SAVARKAR MARG, PRABHADEVI, MUMBAI 4000 025. PHONE NO: 022 66625448

EMAIL ID: [e-mail]

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to,

The Board of Directors,

Mangalam Drugs and Organics Limited,

Rupam Building, 3rd Floor,239,

P.D'Mello Road, Mumbai 400001.

1. We have reviewed the accompanying statement of unaudited financial results of Mangalam Drugs and Organics Limited (the "Company") for the quarter ended December 31, 2021 and year to date from April 01, 2021 to December 31, 2021 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
2. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
4. Basis for Qualified Conclusion:
   Company has capitalised two vehicles amounting to Rs.132 lakhs during the year ended on March 31, 2021 in the names of Individual Directors and has also disclosed the corresponding secured loans availed from bank as its liabilities, one of the Non-Executive Director had resigned during the year ended on
   March31, 2021. Ownership of the vehicles are not yet transferred in the name of the Company, hence the assets of the Company are overstated to the extent of `108.19 lakhs net of Depreciation, liabilities are overstated to the extent of `.72.57 lakhs.
   Since the ownership of the vehicles are not in the name of the Company, the expenses and Tax expenses are overstated for the quarter ended December 31, 2021 by ` 03.52 lakhs and for the Nine months ended on December 31, 2021 by ` 10.87 lakhs.

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