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Medico Remedies Ltd.

BSE: 540937 Sector: Health care
NSE: N.A. ISIN Code: INE630Y01016
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NSE 05:30 | 01 Jan Medico Remedies Ltd
OPEN 257.00
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VOLUME 1200
52-Week high 257.00
52-Week low 73.20
P/E 41.12
Mkt Cap.(Rs cr) 107
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 257.00
CLOSE 257.00
VOLUME 1200
52-Week high 257.00
52-Week low 73.20
P/E 41.12
Mkt Cap.(Rs cr) 107
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Medico Remedies Ltd. (MEDICOREMEDIES) - Auditors Report

Company auditors report

To the Members of MEDICO REMEDIES LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Medico Remedies Limited("the Company") which comprise the balance sheet as at 31st March 2020 and thestatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2020 and profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Key audit Matter 1 - Impact of COVID-19 pandemic on financial reporting

On 11 March 2020 the World Health Organisation declared the Novel Coronavirus(COVID-19) outbreak to be a pandemic. We have identified the impact of and uncertaintyrelated to the COVID-19 pandemic as a key element and consideration for overall financialreporting by the Company. The extent to which COVID-19 pandemic will impact the Companywill depend on future events which are highly uncertain.

How our audit addressed the key audit matter

Our audit procedures considered the guidance laid down by ICAI especially in relationto -

• Impairment of assets

• Revenue recognition

• Provisions and contingent liabilities

• Going concern assessment

• Post balance sheet events

• Audit evidence through electronic mode

We considered the above points and appropriately modified our audit procedures toobtain sufficient and appropriate audit evidence and reached appropriate conclusionsthereon.

Key audit Matter 2- Accuracy of measurement of capital expenditure in light ofsubstantial capital expenditure incurred

The company has incurred capital expenditure towards purchase / construction oftangible fixed assets amounting to Rs. 321.66 lakhs (including Rs. 127.26 lakhs as capitalwork in progress) during the financial year.

Considering that this amount is substantial and errors in measurement can lead tomaterial impact on carrying amount of tangible fixed assets as well as profit for the yearwe have considered this as a key audit matter.

How our audit addressed the key audit matter

• Obtained an understanding of management's process and evaluated design andtested operating effectiveness of controls around measurement of capital expenditure

• We undertook substantive audit procedures to test whether any revenueexpenditure is classified as capital expenditure or capital expenditure is classified asrevenue expenditure.

• We tested the adherence to Accounting Standard 10 "Property Plant &Equipment" and Accounting Standard 16 "Borrowing Costs" to verify accuracyof measurement of expenditure and adequacy of disclosures made.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

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 realistic alternative but to do so. ThoseBoard of Directors are also responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

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.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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 purposes 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in 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:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 17 to the financial statements for otherlitigations;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

UDIN: 20164370AAAABC1191
Place: Mumbai For V J SHAH & CO
Date :- 27/06/2020 Chartered Accountants
FRN: 109823W
CHINTAN V. SHAH
(PARTNER)
Membership No.164370

MEDICO REMEDIES LIMITED

Annexure "A" Auditors' Report

Annexure referred to in Paragraph 1 under the heading of "Report on Other Legaland Regulatory Requirements" of the Independent Auditor's Report on the Accounts of

MEDICO REMEDIES LIMITED (‘the company') for the year ended 31st March 2020.

I) In respect of Fixed Assets:

(a) The company has maintained the fixed assets register showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.

(b) As explained to us all the fixed assets have been physically verified by themanagement during the year at reasonable intervals which in our opinion is reasonablehaving regard to the size of the company and the nature of assets. No materialdiscrepancies were noticed on such physical verification.

(c) The title deeds of immovable properties are held in the name of the company.

II) In respect of Inventories:

(a) As explained to us the inventory has been physically verified by the management atregular intervals during the year.

(b) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of inventory the Company has maintainedproper records of inventory and there were no material discrepancies noticed on physicalverification of inventory as compared to the book records.

III) In respect of loans secured or unsecured the company has not granted tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act.

The company has not granted any loans therefore sub clause (iii) (a) (b) and (c) arenot applicable.

IV) According to the information and explanations given to us the company has compliedwith the provisions of section 185 & 186 of The Act in respect of loans investmentsguarantees and securities.

V) The company has not accepted deposits therefore the clause (v) is not applicable.

VI) We have broadly reviewed the cost records maintained by the company pursuant to theRules made by the Central Government for the maintenance of cost records under sub section(1) of section 148 of the Companies Act and are of the opinion that prima facie theprescribed cost records have been made and maintained as per the documentary evidenceprovided by the management. We have however not made a detailed examination of therecords with a view to determining whether they are accurate or complete.

VII) In respect of statutory dues:

(a) According to the information & explanation given to us the company wasgenerally regular in depositing dues in respect of Employees Provident Fund EmployeesState Insurance Fund Income Tax and other statutory dues with the appropriate authorityduring the year.

(b) According to records examined by us and the information and explanation given tous there are no undisputed amounts due in respect of income tax GST sales tax exciseduty Employees Provident Fund Employees State Insurance Fund and other statutory dues atthe end of the year.

However the following dues have not been deposited by the Company on account ofdisputes:

Name of the statute Nature of the dues Amount of Tax (Rs) Period to which amount relates Forum where dispute is pending
The Income Tax Act 1961 Income Tax 133090 AY 2010-11 CIT(A)

VIII) Based on our audit procedures and on the basis of information and explanationsgiven by the management the company has not defaulted in the repayment of dues to bankfinancial institution and Debentures holders during the year.

IX) In our opinion and according to the information and explanations given to us theCompany has utilized the money raised by way of term loans during the year for thepurposes for which those were raised.

X) In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year that causes thefinancial statements to be materially misstated.

XI) In our opinion and according to the information and explanations given managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 with Schedule V to the Companies Act 2013.

XII) In our opinion the company is not a Chit Fund Nidhi or Mutual Benefit activityand therefore the provisions of Clause 3(xii) of the said order are not applicable.

XIII) In our opinion and according to the information and explanations alltransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 and details are disclosed in the Financial statement as per AccountingStandard 18.

XIV) The company has not made any preferential allotment to parties and companiescovered under register maintained under section 42 of the Companies Act 2013 during theyear therefore the provisions of Clause 3(xiv) of the said order are not applicable.

XV) In our opinion according to the information and explanations company has notentered into any non-cash transaction with directors or persons connected with him as perprovision of section 192 of Companies Act 2013.

XVI) According to the information and explanations given to us company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

ANNEXURE "B" AUDITORS' REPORT

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

We have audited the internal financial controls over financial reporting of MedicoRemedies Limited ("the Company") as of March 31 2020 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 Act.

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 Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

c) provide reasonable assurance regarding 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 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 March 31 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.

UDIN: 20164370AAAABC1191
Place: Mumbai For V J SHAH & CO
Date :- 27/06/2020 Chartered Accountants
FRN: 109823W
CHINTAN V. SHAH
(PARTNER)
Membership No.164370

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