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Medinova Diagnostic Services Ltd.

BSE: 526301 Sector: Health care
NSE: N.A. ISIN Code: INE047C01019
BSE 12:45 | 19 Oct 48.00 -0.60
(-1.23%)
OPEN

49.00

HIGH

50.50

LOW

47.25

NSE 05:30 | 01 Jan Medinova Diagnostic Services Ltd
OPEN 49.00
PREVIOUS CLOSE 48.60
VOLUME 1845
52-Week high 62.60
52-Week low 11.97
P/E 15.14
Mkt Cap.(Rs cr) 48
Buy Price 47.55
Buy Qty 98.00
Sell Price 48.00
Sell Qty 390.00
OPEN 49.00
CLOSE 48.60
VOLUME 1845
52-Week high 62.60
52-Week low 11.97
P/E 15.14
Mkt Cap.(Rs cr) 48
Buy Price 47.55
Buy Qty 98.00
Sell Price 48.00
Sell Qty 390.00

Medinova Diagnostic Services Ltd. (MEDINOVADIAGNO) - Auditors Report

Company auditors report

To the Members of Medinova Diagnostic Services Limited Report on the Audit ofStandalone Financial Statements

Opinion

We have audited the Standalone financial statements of Medinova Diagnostic ServicesLimited ("the Company") which comprises the Standalone Balance Sheet as at March31st 2021 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of changes in equity and Standalone Statement of cash flows for theyear then ended and notes to the Standalone financial statements including a summary ofsignificant accounting policies and other explanatory information. (hereinafter referredto 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 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2021 and profit and othercomprehensive income changes in equity and its cash flow 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 (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor sResponsibilities for the audit of the Standalone 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 (ICAI) together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Acts and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI s Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

Key Audit Matters

Key Audit matters are those matters that in our professional judgement were most ofsignificance in our audit of the Standalone financial statements of the current period.These matters were addressed in the context of our audit of the Standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report.

Other Information

The Company s management and Board of Directors are responsible for the preparation ofOther Information. The other Information comprises the information included in the Companys annual report but does not include the Standalone Financial Statements and our auditor sreport thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially in consistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.

Managements & Board of Directors Responsibility for the Standalone FinancialStatements

The Company s management and Board of Directors are responsible for the matters statedin Section

134 (5) of the Companies Act 2013 ( the Act ) with respect to the preparation of theseStandalone financial statements that give a true and fair view of the state of affairsprofit and other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting 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 Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone Financial Statements management and Board of Directors areresponsible for assessing the Company s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company s financial reportingprocess.

Auditors Responsibilities 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 in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: i. Identify and assess therisks of material misstatement of the standalone 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.

ii. Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to the financialstatements in place and the operating effectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in the standalone financial statements madeby management and Board of Directors.

iv. Conclude on the appropriateness of management s and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor s report tothe related disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor s report.

However future events or conditions may cause the Company to cease to continue as agoing concern.

v. 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 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 & Regulatory Requirement

1. As required by the Companies (Auditor s Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss includingOther Comprehensive Income the Standalone Statement of Changes in Equity and theStandalone Statement of Cash Flow dealt with by this Report are in agreement with therelevant books of account.

d. In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified 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 the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B" g. With respect to the othermatters to be included in the Auditor s Report in accordance with the requirements ofsection 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has not paid to its directors during the year and accordingly thereporting of adherence to provisions of section 197 of the Act are not applicable.

h. 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 as amended in our opinion and tothe best of our information and according to the explanations given to us: a. The Companyhas disclosed impact of pending litigations in Notes on IND AS Standalone

Financial Statements under "Contingent liabilities and Commitments to the extentnot provided for" b. The Company does not have any long-term contracts includingderivative contracts.

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

For Ratnam Dhaveji & Co
Chartered Accountants
Firm Regn No 006677S
C V Ratnam Dhaveji
Place: Hyderabad Partner
Date: 23.04.2021 M. No 203479
UDIN: 21203479AAAAAW9103

Annexure A to the Independent Auditor s Report

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirementssection of our report to the Members of Medinova Diagnostic Services Limited of even date)i. In respect of the Company s fixed assets: a. The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets.

b. The Company has a program of physical verification of it's by all the fixed assetsare verified in a phased manner over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain fixed assets were physically verified by the management during theyear. According to the information and explanations given to us no material discrepancieswere noticed on such verification. c. According to the information and explanations givento us the records examined by us as the company owns no immovable properties therequirement on reporting whether title deeds of immovable properties held in the name ofthe company is not applicable.

ii. In respect of Inventories a. Stocks of Diagnostic kits Lab Chemicals ConsumablesMedicare items house-keeping items stationery have been physically verified by themanagement during the year at reasonable intervals the frequency of which in our opinionis reasonable. b. As stated by the management no material discrepancies were observed onphysical verification of stock as compared to book stocks.

iii. In our Opinion and according to the information and explanation given to us TheCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

iv. In our opinion and according to the information and explanations given to us thecompany has not given any loan or guarantees or made any reportable investments ascontemplated under Section 185 and 186 of the Companies Act 2013. v. The Company has notaccepted any deposits from the public and therefore the provisions of the Clause 3(v) ofthe Order are not applicable to the Company.

vi. Reporting under Clause 3(vi) of the Order is not applicable as the Company sbusiness activities are not covered by the Companies (Cost Records and Audit) Rules 2014.vii. According to the information and explanations given to us in respect of statutorydues:

a. The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income Tax Goods and Service TaxCustoms

Duty Cess and other material statutory dues applicable to it with the appropriateauthorities.

b. There were no undisputed amounts payable in respect of Provident Fund EmployeesState

Insurance Income Tax Goods and Service Tax Customs Duty Cess and other materialstatutory dues in arrears as at 31st March 2021 for a period of more than six months fromthe date they became payable c. There were no amounts of applicable statutory dues whichhave not been deposited as at 31st March 2021 on account of dispute.

viii. Based on our audit procedures and on the information and explanations given to usby the management we are of the opinion that the Company has not defaulted in therepayment of dues to banks. The Company has not taken any loan either from financialinstitutions or has not issued any debentures.

39 ix. According to the records of the Company The Company has not raised any moniesby way of initial public offer or further public offer (including debt instruments) Norhas the company obtained any term loans hence comments under clause 3(ix) of the Orderare not called for.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has not paid/ provided any amounts on account of managerial remuneration.Accordingly reporting under clause 3 (xi) is not applicable to the Company.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of such relatedparty transactions have been disclosed in the standalone financial statements as requiredunder Indian Accounting Standards (IND AS) 24 Related Party Disclosures specified underSection 133 of the Act read with the relevant rules issued there under.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Ratnam Dhaveji & Co
Chartered Accountants
Firm Regn No 006677S
C V Ratnam Dhaveji
Place: Hyderabad Partner
Date: 23.04.2021 M. No 203479
UDIN: 21203479AAAAAW9103

Annexure "B" to the Independent Auditor s Report

(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory Requirementssection of our report to the Members of Medinova Diagnostic Services Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of

Section 143 of the Companies Act 2013 ("the Act")

Opinion

We have audited the internal financial controls with reference to the StandaloneFinancial Statements of Medinova Diagnostic Services Limited ("the Company") asof 31st March 2021 in conjunction with our audit of the standalone financial statements ofthe Company for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols were operating effectively as at 31st March 2021 based on the internal financialcontrols with reference to standalone financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial

Reporting issued by the Institute of Chartered Accountants of India ("the GuidanceNote")

Management s Responsibility for Internal Financial Controls

The Company s Management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to the standalone financial statements criteria established by the Companyconsidering the essential components of internal controls stated in the Guidance Note.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to respective company s policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 (hereinafterreferred to as "the Act").

Auditor s Responsibility

Our responsibility is to express an opinion on the Company s Internal FinancialControls with reference to the standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference toStandalone Financial Statements were established and maintained and whether such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to the standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tothe standalone financial statements included obtaining an understanding of such internalfinancial controls assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor s judgement including theassessment of the risks of material misstatement of the standalone financial statementswhether 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 withreference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to Standalone FinancialStatements

A company s internal financial controls with reference to Standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company s internalfinancial controls with reference to financial statements include those policies andprocedures that

1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. 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

3. 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 standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand 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 controls with reference to standalone financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For Ratnam Dhaveji & Co
Chartered Accountants
Firm Regn No 006677S
C V Ratnam Dhaveji
Place: Hyderabad Partner
Date: 23.04.2021 M. No 203479
UDIN: 21203479AAAAAW9103

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