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Medico Intercontinental Ltd.

BSE: 539938 Sector: Others
NSE: N.A. ISIN Code: INE858Q01019
BSE 00:00 | 17 Sep 43.05 1.20
(2.87%)
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41.00

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NSE 05:30 | 01 Jan Medico Intercontinental Ltd
OPEN 41.00
PREVIOUS CLOSE 41.85
VOLUME 148
52-Week high 59.30
52-Week low 24.40
P/E 11.54
Mkt Cap.(Rs cr) 14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 41.00
CLOSE 41.85
VOLUME 148
52-Week high 59.30
52-Week low 24.40
P/E 11.54
Mkt Cap.(Rs cr) 14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Medico Intercontinental Ltd. (MEDICOINTERCON) - Auditors Report

Company auditors report

TO THE MEMBERS OF

MEDICO INTERCONTINENTAL LIMITED

(formerly known as INTERCONTINENTAL LEASING & FINANCE COMPANY LIMITED)

Report on the Standalone Financial Statements:

We have audited the accompanying standalone financial statements of MEDICOINTERCONTINENTAL LIMITED (formerly known as INTERCONTINENTAL LEASING & FINANCE COMPANYLIMITED) ("the company") which comprise the Balance Sheet as at 31st March2020 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (hereinafter referred to as "the Act") in the mannerso required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended (hereinafter referred to as "IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion:

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (hereinafter referred toas "SAs"). Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (hereinafter referred to as"ICAI") together with the ethical requirements that are relevant to our audit ofthe standalone financial statements under the provisions of the Act and the Rules madethere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.

Emphasis of matter:

We draw your attention to Note 27 to the financial statements which explain theuncertainties and the management's assessment of the financial impact due to thelock-downs and other restrictions and conditions related to the COVID-19 pandemicsituation for which a definitive assessment of the impact in the subsequent period ishighly dependent upon circumstances as they evolve. Our opinion is not modified in respectof this matter.

Key audit matters:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
Revenue recognition as per Ind AS 115 Our audit procedures included the following:
Refer to Note - 1 (Significant Accounting Policies) and Note - 1.10 (Revenue from operations) of the financial statements. We evaluated the design and tested operating effectiveness of the relevant controls with respect to revenue recognition including those relating to cut off at year end;
The Company's revenue is principally derived from sale of various medicine products. We assessed the appropriateness of the revenue recognition accounting policies in line with Ind AS 115 "Revenue from Contracts with Customers";
In accordance with Ind AS 115 revenue from sale of goods is recognized when control of the products being sold is transferred to the customer and when there are no unfulfilled obligations. The performance obligations in the contracts are fulfilled at the time of dispatch delivery or upon formal customer acceptance depending on terms of contract with the customer. We performed substantive testing of revenue transactions recorded during the year by testing the underlying documents which included goods dispatch notes shipping documents and customer acknowledgments as applicable;
Revenue is measured at fair value of the consideration received or receivable after deduction of any trade/ volume discounts and taxes or duties collected. We tested manual journal entries posted to revenue to identify unusual items;
We identified revenue recognition as a key audit matter since revenue is significant to the financial statements and is required to be recognized as per the requirements of applicable accounting framework. We tested on a sample basis specific revenue transactions recorded before and after the financial year end date including examination of credit notes issued after the year end to determine whether the revenue has been recognized in the appropriate financial period.
Based on the above stated procedures no significant exceptions were noted in revenue recognition.

Other Information:

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and our auditor's report thereon. Our opinion on the financialstatements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements:

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India (Indian GAAPs) including the Accounting Standards (‘IndAS') specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditor's Responsibility:

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: o Identifyand assess the risks of material misstatement of the financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. o Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances; Under Section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the company has adequate internalfinancial controls with reference to financial statements in place and the operatingeffectiveness of such controls. o Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates and related disclosures made by management.o 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 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'sreport. However future events or conditions may cause the Company to cease to continue asa going concern. o Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe 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 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" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept 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 OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from theDirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure – B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

o The Company has not any pending litigations on its financial positionin its standalone financial statements.

o The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.

o There were no any amounts required to be transferred to the InvestorEducation and Protection Fund by the Company.

For V. GOSWAMI & CO. Chartered Accountants (FRN: 0128769W)

Sd/-

Nilesh Purohit (Partner) Mem. No: 162541

UDIN: 20162541AAAABJ2467

Date : 30/06/2020 Place : Ahmedabad

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirement of our report of even date to the members of MEDICO INTERCONTINENTALLIMITED (formerly known as INTERCONTINENTAL LEASING & FINANCE COMPANY LIMITED) onthe standalone financial statements for the year ended 31st March 2020).

1. In respect of its fixed assets: a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.

b) The fixed assets are physically verified by the Management accordingto a phased programme designed to cover all the items every year which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the programmer a portion of the fixed assets has been physically verified by theManagement during the year and no material discrepancies have been noticed on suchverification.

c) According to the information and explanation given to us and on thebasis of our examination of the records of the company the company doesn't have anyfreehold/ immovable properties.

2. As explained to us inventories have been physically verified during the year by themanagement and in our opinion the frequency of verification is reasonable. Discrepanciesnoticed on physical verification of the inventories between the physical inventories andbook records were not material having regards to the size of the operations of thecompany and the same have been properly dealt with.

3. In respect of loans secured or unsecured granted by the company tocompanies firms Limited liability partnerships or other parties covered in the registermaintained under section 189 of Companies Act 2013: a) Whether receipt of the principalamount and interest are also regular;-There are no such loans and hence the said clause isnot applicable b) If overdue amount is more than rupees one lakh whether reasonable stepshave been taken by the company for recovery of the principal and interest: - There are nosuch loans and hence the said clause is not applicable.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities.

5. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the provisions of paragraph 3 (v) of theCARO 2016 are not applicable to the Company.

6. According to the information and explanations given to us Maintenance of Costrecords is not applicable to the company pursuant to the rules made by the CentralGovernment of India regarding the maintenance of cost records under sub–section (1)of Section 148 of the Act. Therefore the provisions of paragraph 3(vi) of the CARO 2016are not applicable to the Company.

7. According to the information and explanations given to us in respectof statutory dues: a. The Company is regular in depositing the undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax wealth taxservice tax duty of customs duty of excise Good and service tax value added tax andother material statutory dues as applicable with the appropriate authorities. b. theCompany examined by us there are no dues of income–tax Goods and services tax andservice tax which have not been deposited on account of any dispute. c. Whether the amountrequired to be transferred to investor education and protection fund in accordance withthe relevant provisions of the Companies Act 2013 and rules made thereunder has beentransferred to such fund within time: - The said clause is not applicable to the company.

8. Based on our audit procedures and information and explanations given by themanagement and considering the Corporate Debt Restructuring (CDR) scheme we are of theopinion that the Company is not having any such term loans as on balance 31st March 2020.

9. According to the information and explanations given to us the term loans raisedduring the year were prima facie been applied for the purpose for which those areraised. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments).

10. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and on the basis of information and explanationsgiven by the management no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

11. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Therefore the provisions of paragraph 3(xii) of the CARO 2016 are not applicable to the Company. 12. According to the informationand explanation given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with sections 177 and 188 of theCompanies Act 2013 where applicable and details of such transactions have been disclosedin the financial statements etc. as required by the applicable accounting standards.

13. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares of fully or partly convertible debentures duringthe year. Therefore the provisions of paragraph 3(xiv) of the CARO

2016 are not applicable to the Company.

14. According to the information and explanations given to us the Company has notentered into non- cash transactions with directors or persons connected with him.Therefore the provisions of paragraph 3(xv) of the CARO 2016 are not applicable to theCompany.

15. In our opinion and according to information and explanations provided to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For V. GOSWAMI & CO. Chartered Accountants (FRN: 0128769W)

Sd/-

Nilesh Purohit (Partner) Mem. No: 162541

UDIN: 20162541AAAABJ2467

Date : 30/06/2020 Place : Ahmedabad

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 (f) under "Report on Other Legal and RegulatoryRequirement of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of MEDICOINTERCONTINENTAL LIMITED (formerly known as INTERCONTINENTAL LEASING & FINANCE COMPANYLIMITED) as of 31st March 2020 in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls:

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility:

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout 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 the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting:

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting:

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion:

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020 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.

For V. GOSWAMI & CO. Chartered Accountants (FRN: 0128769W)

Sd/-

Nilesh Purohit (Partner) Mem. No: 162541

UDIN: 20162541AAAABJ2467

Date : 30/06/2020 Place : Ahmedabad

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