Libas Consumer Products Limited — Audit Report / Information 2021

Jun 2, 2021

National Stock Exchange of India Ltd.

Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400051

Scrip Symbol – LIBAS Series: EQ

Dear Sir/Ma'am,

Sub: Clarification with respect to financial result submitted

In furtherance to your e-mail dated May 27, 2021 asking below clarification:

Clarification	Reply
The company has not submitted the Statement	Signedcopyofdeclarationtomodified
of Modified Opinion or in case of unmodified	statement effect is attached herewith.
opinion(s), a declaration to that effect to the
StockExchange.(Pleasesubmitsigned
statement of impact)

We request you take this on your record.

For & on behalf of Libas Consumer Products Ltd.

Riyaz Eqbal Ahmed Ganji (Whole-time Director) Mumbai (DIN: 02236203) June 2, 2021

Statement on Impact of Audit Qualifications on Consolidated Financials for the Financial Year ended March 31, 2021

SI.No.	Particulars	Audited Figures (asreported before adjustingfor qualifications)	Adjusted Figures(audited figures afteradjusting forqualifications)
1.	Turnover / Total income	540,807,636	540,807,636
2.	Total Expenditure	514,907,828	516,851,828
3.	Net Profit/(Loss)	(11, 887, 871)	(13, 831, 871)
4.	Earnings Per Share	(0.95)	(1.13)
5.	Total Assets	655,688,460	655,688,460
6.	Total Liabilities	281,591,646	283,535,646
7.	Net Worth	374,096,814	372, 152, 814
8.	Any other financial item(s) (as feltappropriate by the management)	$\overline{\phantom{a}}$
II. Audit Oualification (each audit qualification separately):

[Regulation 33 of the SEBI (LODR) (Amendment) Regulations, 2016]

a. Details of Audit Qualification:

• Attention is also invited to the note no.'e' of the Consolidated financial results wherein the undisputed 1. income tax liability of Rs.41.18 Lakhs the for FY 2018-19 and of Rs 6.76 Lakhs for FY 2019-20 are unpaid as at $10^{th}$ May 2021
• $2.$ Attention is also invited to the note no 'i' of the Consolidated financial results wherein the undisputed tax liability in relation to Professional Tax are unpaid as at March 2021 amounting to Rs. 2.39 Lakhs/-.
• 1. As per note "h(a)" of the Consolidated financial result, company has pending litigation under ESIC and amount involved under litigation is amounting to Rs 19.44 Lakhs, same were not provided in the financial statement therefore the profit for the quarter is over stated by Rs. 19.44 Lakhs and current Liabilities were understated by 19.44 Lakhs and Loss is understated by Rs 19.44 Lakhs for the year ended march 2021
• 1. Attention is also invited that the company is yet to obtain ODI permission from RBI for investment in foreign subsidiary.

b. Type of Audit Qualification: Qualified Opinion

c. Frequency of qualification: All Qualification is continued from March 2019.

d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views:

The management has provided in the books for income tax dues of AY 2019-20 and AY 2020-21 and Paid partly on 30/06/2020 and ensure to pay balance for the both AYs.

As far As Profession Tax of Rs. 2.22 Lakhs is concern the company has send the details for compiling and filing of the required return to consultant but he was unable to provide interest and penalty working and due to technical error on Profession Tax site company was unable to pay the dues in time. Management ensures to comply the deficiency as soon as technical error resolved by the PT department.

e. For Audit Qualification(s) where the impact is not quantified by the auditor:

• (i) Management's estimation on the impact of audit qualification: Not Ascertainable
• (ii) If management is unable to estimate the impact, reasons for the same: Management will provide the liability as prior period item in next quarterly results for the satisfaction of Auditor.
• (iii) Auditors' Comments on (i) or (ii) above: Qualifications are not material to the operation of the Company.

III. Signatories:Reshma GangjiManaging DirectorDIN: 07576582
CFO	Informal interesting
Audit Committee Chairman
Statutory Auditor	For JAIN JAGAWAT KAMDAR & CO.Chartered AccountantsGAWAT KANFirm Regn. No. 122530WrelacerFRN122530WCA Chandrashekhar JagawaPartnerM.No:- 116078
Date: 10 th May, 2021

Statement on Impact of Audit Qualifications on Standalone Financials for the Financial Year ended March 31, 2021

SI.No.	Particulars	Audited Figures (asreported before adjustingfor qualifications)	Adjusted Figures(audited figures afteradjusting forqualifications)
1.	Turnover / Total income	349,971,717	349,971,717
2.	Total Expenditure	328,687,625	330,631,625
3.	Net Profit/(Loss)	(16, 503, 587)	(184, 447, 587)
4.	Earnings Per Share	(1.33)	(1.51)
5.	Total Assets	582, 343, 156	582, 343, 156
6.	Total Liabilities	280,809,101	282,753,101
7.	Net Worth	301,534,055	299,590,055
8.	Any other financial item( $s$ ) (as feltappropriate by the management)	$\overline{\phantom{0}}$
II. Audit Oualification (each audit qualification separately):

[Regulation 33 of the SEBI (LODR) (Amendment) Regulations, 2016]

a. Details of Audit Qualification:

• Attention is also invited to the note no.'e' of the Standalone financial results wherein the undisputed 1. income tax liability of Rs.41.18 Lakhs the for FY 2018-19 and of Rs 6.76 Lakhs for FY 2019-20 are unpaid as at $10^{th}$ May 2021
• $2.$ Attention is also invited to the note no 'i' of the Standalone financial results wherein the undisputed tax liability in relation to Professional Tax are unpaid as at March 2021 amounting to Rs. 2.39 Lakhs/-.
• 1. As per note "h(a)" of the Standalone financial result, company has pending litigation under ESIC and amount involved under litigation is amounting to Rs 19.44 Lakhs, same were not provided in the financial statement therefore the profit for the quarter ended March 21 is over stated by Rs. 19.44 Lakhs and current Liabilities were understated by 19.44 Lakhs and Loss is understate by Rs 19.44 for year ended March 2021
• 1. Attention is also invited that the company is yet to obtain ODI permission from RBI for investment in foreign subsidiary.

b. Type of Audit Qualification: Qualified Opinion

c. Frequency of qualification: All Qualification is continued from March 2019.

d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views:

The management has provided in the books for income tax dues of AY 2019-20 and AY 2020-21 and Paid partly on 30/06/2020 and ensure to pay balance for the both AYs.

As far As Profession Tax of Rs. 2.22 Lakhs is concern the company has send the details for compiling and filing of the required return to consultant but he was unable to provide interest and penalty working and due to technical error on Profession Tax site company was unable to pay the dues in time. Management ensures to comply the deficiency as soon as technical error resolved by the PT department.

e. For Audit Qualification(s) where the impact is not quantified by the auditor:

• (i) Management's estimation on the impact of audit qualification: Not Ascertainable
• (ii) If management is unable to estimate the impact, reasons for the same: Management will provide the liability as prior period item in next quarterly results for the satisfaction of Auditor.
• (iii) Auditors' Comments on (i) or (ii) above: Qualifications are not material to the operation of the Company.

III. Signatories:Reshma GangjiManaging DirectorDIN: 07576582
CFO	Infant milacelement
Audit Committee Chairman
Statutory Auditor	For JAIN JAGAWAT KAMDAR & CO.Chartered AccountantsGAWAT KANFirm Regn. No. 122530WrelacenFRN122530WCA Chandrashekhar JagawaPartnerM.No:-116078
Date: 10 th May, 2021