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Medi Caps Ltd.

BSE: 523144 Sector: Others
NSE: MEDICAPS ISIN Code: INE442D01010
BSE 00:00 | 17 Sep 44.45 -0.85
(-1.88%)
OPEN

46.40

HIGH

46.40

LOW

44.00

NSE 05:30 | 01 Jan Medi Caps Ltd
OPEN 46.40
PREVIOUS CLOSE 45.30
VOLUME 13414
52-Week high 53.75
52-Week low 19.35
P/E 493.89
Mkt Cap.(Rs cr) 55
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 46.40
CLOSE 45.30
VOLUME 13414
52-Week high 53.75
52-Week low 19.35
P/E 493.89
Mkt Cap.(Rs cr) 55
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Medi Caps Ltd. (MEDICAPS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF MEDICAPS LIMITED

Report on Audit of Ind AS Standalone Financial Statements

We have audited the accompanying Ind AS Standalone Financial Statements of MEDICAPSLIMITED (‘the Company') which comprise the balance sheet as at 31% March 2020 thestatement of profit and loss (including other comprehensive income) the cash flowstatement and the statement of changes in equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas “The Ind AS Standalone Financial Statements”). Opinion In our opinion and tothe best of our information and according to the explanations given to us the aforesaidInd AS Standalone Financial Statements give the information required by the Companies Act2013 (“the Act”) in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended (“IndAS”) and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 the profit and loss and total comprehensiveincome changes in equity and its cash flows for the year ended on that date. Basis forOpinion We conducted our audit of the Ind AS Standalone Financial Statements in accordancewith the Standards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Ind AS Standalone Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Ind AS Standalone Financial Statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these Tequirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Ind AS Standalone FinancialStatements. Key Audit Matters Key audit matters are those matters that in ourprofessional judgment were of most significance in our audit of the Standalone FinancialStatements of the current period. These matters were addressed in the context of our auditof the Standalone Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. Responsibility of Management forInd AS Standalone Financial Statements The Company's Board of Directors is responsible forthe matters stated in section 134(5) of the Act with Tespect to the preparation of theseInd AS Standalone Financial Statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the Ind AS prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended and otheraccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS Standalone Financial Statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.In preparing the Ind AS Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are responsible for overseeingthe Company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also: Identify and assess the risks of materialmisstatement of the Standalone Financial Statements whether due to fraud or error designand perform audit procedures responsive to those risks and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control.

? Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3){i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

? Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. We also provide those charged with governance with a statement that we havecomplied with relevant ethical Tequirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the ‘Annexure A' statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable.

2. 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 bestof our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss Including other comprehensiveincome the Cash Flow Statement and statement of change in equity dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid Ind AS Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act.

e. On the basis of the written representations received from the directors as on 31%March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a directorin terms of Section164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure B”.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: L TheCompany has disclosed the impact of pending litigations in its financial position in theInd AS Standalone Financial Statements.

IL The Company did not have any long term contracts including derivatives contract forwhich there were any material foreseeable losses. I Eligible amount has been transferredto the Investor Education and Protection Fund by the Company.

Annexure ‘A' to Independent Auditors' Report

(Referred to Para 1 under the heading of “Report on Other Legal and RegulatoryRequirements” of our report of even date to the members of Medicaps Ltd. for the yearended 31* March 2020)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant & Equipments.

(b) As explained to us the Property Plant & Equipments have been physicallyverified by the management of the Company in accordance with phased programme ofverification which in our opinion is reasonable considering the size and nature of itsbusiness. No material discrepancies were noticed during such verification.

(c) According to information and explanation given to us including registered titledeeds we report that the title deed comprising all the immovable properties of land andbuildings which are freehold are held in the name of company as at the Balance Sheetdate. In respect of immovable property of land that have been taken on lease and disclosedas property plant and equipment in the Standalone Financial Statements the leaseagreements are in the name of the company where the company is the lessee in theagreement.

(ii) According to the information and explanations given to us physical verificationof the inventories has been conducted by the management at reasonable interval. TheCompany has maintained proper records of inventory there was no material discrepanciesnoticed on physical verification of the inventories as compared to the book.

(iii) According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Therefore the provision clause 3 (iii) (a) to (C) of the Companies (Auditors'Report) Order 2016 are not applicable to the Company.

(iv) According to the information and explanations given to us the company has notentered into any eligible transactions as specified in the provisions of section 185 and186 of the Companies Act 2013 hence this clause is not applicable to the Company. Thecompany has guaranteed Rs. 2.00 Crores for the Loan taken by Medgel Private Limited(wholly owned subsidiary) from IDBI Bank Ltd.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Sections 73 to76 of the Act and the Rules framed there under to the extent notified.

(vi) According to the information and explanations given to us the Company is notcovered under Companies (Cost Records and Audit) Rules 2014 prescribed by the CentralGovernment under Section 148(1) of the Act hence this clause is not applicable to theCompany.

(vii)(a) According to the information and explanations given to us and on the basis ofthe records of the Company the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employee's State Insurance Sales Tax ServiceTax Custom Duty Excise Duty Value Added Tax Cess and other material statutory dueswith the appropriate authorities. As provided to us by the management the extent of thearrears of outstanding statutory dues as at the last day of the financial year concernedfor a period of more than six months from the date they became payable are nil

(b) According to the records of the Company there are no dues outstanding of incometax / Sales Tax/ wealth tax / service tax / custom duty / excise duty / VAT / cess etc. onaccount of any dispute except the following:

Name of the Statute Nature of Dues Forum where dispute is pending Period to which the amount relates Amount Involved Amount Unpaid
Income Tax Act 1961] Income Tax ITAT AY. 2013-14 Rs. 1801360/- Rs. 26110/-
Income Tax Act 1961] Income Tax CIT(A) AY. 2014-15 Rs. 2123210/- Rs.1223210/-
Income Tax Act 1961] Income Tax CIT(A) AY. 2015-16 Rs. 1745580/- Rs. 270830/-
Income Tax Act 1961] Income Tax CIT(A) AY. 2016-17 Rs. 1513441/- Rs. 302690/-
Income Tax Act 1961] Income Tax CIT(A) AY. 2017-18 Rs. 986409/- Rs. 788128/-

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans to banks. The Company has nottaken any loan either from financial institutions or the government and has not issued anydebentures during the year.

(ix) In our opinion and according to the information and explanations given to us thecompany has not raised moneys by way of any public offer including debt instruments andterm Loans during the year and hence the provisions of clause 3 (ix) of the Order are notapplicable to the Company

(x) On the basis of our examination of the books and records of the Company andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct;

(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 and the details have been disclosed in the Ind AS Standalone FinancialStatements as required by the applicable Indian accounting standards.

(xiv) In our opinion and according to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Accordingly the provisions ofclause 3 (xiv) of the Order are not applicable to the Company.

(xv) In our opinion and according to the information and explanations given by themanagement the company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of clause 3 (xv) of the Order arenot applicable to the Company.

(xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company.

Annexure ‘B' to Independent Auditors' Report

(Referred to Para 2(f) under the heading of “Report on Other Legal and RegulatoryRequirements” of our report of even date to the members of Medicaps Ltd. for the yearended 31*t March 2020) Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”) We haveaudited the internal financial controls over financial reporting of MEDICAPS LIMITED(‘the Company”) as of 31% March 2020 in conjunction with our audit of the IndAS Standalone Financial Statements of the Company for the year ended on that date.Management's Responsibility for Internal Financial Controls The Company's management isresponsible for establishing and maintaining internal financial controls based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.Auditors' Responsibility Our responsibility is to express an opinion on the Company'sinternal financial controls over financial teporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the “Guidance Note”) and the Standards on Auditing anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls over Financial Reporting bothapplicable to an audit of the Internal Financial Controls and both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting. Meaning of Internal Financial Controls overFinancial Reporting A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial

Statements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance tegarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements. Inherent Limitations of Internal FinancialControls over Financial Reporting Because of the inherent limitations of internalfinancial controls over financial reporting including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate. Opinion In our opinion to the best of our information and according tothe explanations given to us the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

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