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Pharmaids Pharmaceuticals Ltd.

BSE: 524572 Sector: Health care
NSE: N.A. ISIN Code: INE117D01018
BSE 10:08 | 10 Aug 12.40 -0.18
(-1.43%)
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12.58

HIGH

12.58

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12.12

NSE 05:30 | 01 Jan Pharmaids Pharmaceuticals Ltd
OPEN 12.58
PREVIOUS CLOSE 12.58
VOLUME 184
52-Week high 24.10
52-Week low 10.17
P/E
Mkt Cap.(Rs cr) 13
Buy Price 12.40
Buy Qty 17.00
Sell Price 13.77
Sell Qty 222.00
OPEN 12.58
CLOSE 12.58
VOLUME 184
52-Week high 24.10
52-Week low 10.17
P/E
Mkt Cap.(Rs cr) 13
Buy Price 12.40
Buy Qty 17.00
Sell Price 13.77
Sell Qty 222.00

Pharmaids Pharmaceuticals Ltd. (PHARMAIDSPHARMA) - Auditors Report

Company auditors report

To The Members of

Pharmaids Pharmaceuticals Limited Hyderabad

Report on the Audit of the Financial Statements Opinion

We have audited the Financial Statements of PHARMAIDS PHARMACEUTICALS LIMITED("the Company") which comprise the Balance Sheet as at March 31 2022 and theStatement of Profit and Loss Statement of Changes in Equity and Statement of Cash Flowsfor the year then ended and Notes to the Financial Statements including a summary ofSignificant Accounting Policies and other explanatory information [hereinafter referred toas "the Financial Statements"].

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the Accounting Principles generally accepted in India of the State of Affairs of theCompany as at March 31 2022 and its Profit Changes in Equity and its Cash Flows for theYear ended on that date.

Basis for Opinion

We conducted our Audit of the Financial Statements in accordance with the Standards onAuditing (SAs) specified under Section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements Section of our Report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our Audit of the Financial Statements under the provisions of the Companies Act 2013and the Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the Other Information. The OtherInformation comprises the information included in the Director's Report but does notinclude the Financial Statements and Our Auditor's Report thereon.

Our Opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with the 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 stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Financial Statements that give a true and fair view of the Financial PositionFinancial Performance Changes in Equity and Cash Flows of the Company in accordance withthe Accounting 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 Accounting

Policies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Financial Statements the Board of Directors 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 unlessthe Board of Directors either intend to liquidate the Company or to cease the operationsor has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's FinancialReporting Process.

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 orerror and to issue an Auditor's Report that includes Our Opinion. Reasonable assurance isa 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 Financial Statements.

As part of an Audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the Audit. We also: a. Identify and assess therisks of material misstatement of the Financial Statements whether due to fraud or errordesign and perform Audit Procedures responsive to those risks and obtain Audit Evidencethat is sufficient and appropriate to provide a basis for Our Opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of Internal Controls. b. Obtain an understanding ofInternal Controls relevant to the Audit in order to design Audit Procedures that areappropriate in the circumstances. Under Section 143(3)(i) of the Companies Act 2013 weare also responsible for expressing our opinion on whether the Company has adequateInternal Financial Controls System in place and the operating effectiveness of suchcontrols. c. Evaluate the appropriateness of the Accounting Policies used and thereasonableness of accounting estimates and related disclosures made by the Management. d.Conclude on the appropriateness of the 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 asGoing Concern. e. 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.

Materiality is the magnitude of misstatements in the Financial Statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Financial Statements may be influenced. We considerquantitative materiality and qualitative factors in:

(i) Planning the Scope of our audit work and in evaluating the results of our work; and(ii) To evaluate the effect of any identified misstatements in the Financial Statements.

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 Financial Statements of thecurrent period and are therefore the Key Audit Matters. We describe these matters in ourAuditor's Report unless law or regulation precludes public disclosure about the matter orwhen 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 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" statement on the mattersspecified in paragraphs 3 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 purposes of our Audit. b) In ouropinion proper Books of Accounts as required by law have been kept by the Company sofar as it appears from our examination of those Books. c) The Balance Sheet theStatement of Profit and Loss the Statement of Changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the Books of Accounts. d) In ouropinion the aforesaid Financial Statements comply with the Accounting Standards specifiedunder 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 March 312022 taken on record by the Board of Directors None of the Directors is disqualified ason March 31 2022 from being appointed as a Director in terms of Section 164(2) of theAct. 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 beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: (i) The Company does not have any pending litigations whichwould impact its Financial Position (ii) The Company did not have any long term contractsincluding Derivative Contracts for which 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.

(iv) (a) The Management has represented that to the best of its knowledge and beliefother than as disclosed in the Notes to the Accounts No Funds have been advanced orloaned or invested (either from Borrowed Funds or Share Premium or any other sources orkind of funds) by the Company to or in any other Person(s) or Entity(ies) includingForeign Entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries; and (b) the management has representedthat to the best of it's knowledge and belief other than as disclosed in the notes tothe accounts no funds have been received by the company from any person(s) orentity(ies) including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and (c) Based on such Audit Procedures that the Auditor hasconsidered reasonable and appropriate in the circumstances nothing has come to theirnotice that has caused them to believe that the representations under sub-clause (i) and(ii) contain any material mis-statement.

(v) The dividend declared or paid during the year by the company is in compliance withsection 123 of the Companies Act 2013.

(vi) The Company has used such Accounting Software for maintaining its Books ofAccounts which has a feature of recording Audit Trail (edit log) Facility and the same hasbeen operated throughout the year for all transactions recorded in the Software and theAudit Trail feature has not been tampered with and the Audit Trail has been preserved bythe Company as per the statutory requirements for record retention.

For PPKG & Co
Chartered Accountants
Firm's Registration No. 009655S
Sd/-
Girdhari Lal Toshniwal Partner
Membership No. 205140
UDIN: 22205140AJIWTD1057
Date: 21st May' 2022
Place: Hyderabad

Annexure A to the Independent Auditor's Report of even date to the Members of M/sPharmaids Pharmaceuticals Limited on the Financial Statements for the Year ended March31 2022

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Standalone Financial Statements of the Company and taking into considerationthe information and explanations given to us and the Books of Accounts and other recordsexamined by us in the normal course of Audit and to the best of our knowledge and beliefwe report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Fixed Assets.

(b) The Company has a regular program of physical verification of its Fixed Assetsunder which Fixed Assets are verified in a phased manner over a period (c) The Title Deedsof all the Immovable Properties (which are included under the head (‘Property Plantand Equipment') are held in the name of the Company.

(d) The Company has not revalued any of its Property Plant and Equipment's during theyear. (e) As per the information given to us there are no proceedings initiated or pendingagainst the Company for holding any Benami Property under the Benami Transactions(Prohibition) Act 1988 and Rules made there under.

(ii) (a) In our opinion the Management has conducted physical verification ofInventory at reasonable intervals during the year no material discrepancies were noticedon the aforesaid verification.

(b) The Company has not availed any Financial Assistance from any Bank or FinancialInstitutions. (iii) The Company has not granted any Loans secured or unsecured to anyCompanies Firms Limited Liability Partnerships or other parties.

(iv) In our opinion the Company has complied with the provisions of Section 186 inrespect of the Investments and Loans. Further in our opinion the Company has not enteredinto any transaction covered under Section185 and Section 186 of the Act in respect ofGuarantees and Security.

(v) In our opinion the Company has not accepted any Deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) The provisions of Section 148 are not applicable to the Company.

(vii)(a) Undisputed Statutory Dues including Provident Fund Employees State InsuranceIncome Tax Goods and Service Tax Duty of Customs Cess and other Material StatutoryDues as applicable have generally been regularly deposited with the appropriateauthorities.

(b) There is no Dues outstanding in respect of Income Tax Sales Tax Service Tax Dutyof Customs on account of disputes: (viii)All the transactions recorded in the books ofaccount have been disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

(ix) (a) The Company has not defaulted in repayment of Loans or Borrowings to any Bankduring the Year under review. The Company has No Loans or Borrowings payable to FinancialInstitutions or Government and does not have any Outstanding Debentures during the year.

(b) The Company is not declared Wilful Defaulter by any Bank or Financial Institutionor other Lender. (c) The Company has not raised any Term Loan from any Bank or FinancialInstitution. (d) To the extent of our check no funds raised by the Company for short-termhas been utilized for long term purposes.

(e) The Company has not taken any funds from any entity or person on account of or tomeet the obligations of its Subsidiaries Associates or Joint Ventures.

(f) The Company has not raised loans during the Year on the Pledge of Securities heldin its Subsidiaries Joint Ventures or Associate Companies.

(x) (a) The Company has not raised any moneys by way of Initial Public Offer or FurtherPublic Offer during the year under review.

(b) The Company has not made any Preferential Allotment or Private Placement of Sharesor Convertible Debentures during the year under review.

(xi) (a) In our opinion no fraud by the Company or any fraud on the Company has beennoticed or reported during the year under review.

(b) No Report under sub-section (12) of section 143 of the Companies Act has been filedby the Auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit andAuditors) Rules 2014 with the Central Government.

(c) No Whistle Blowers Complaints were received during the year under review.

(xii)In our opinion the Company is not a Nidhi Company and accordingly provisions ofClause 3(xii) of the Order are not applicable.

(xiii)In our opinion all transactions with the Related Parties are in compliance withSections 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the Standalone Financial Statements etc. as required by the applicable IndAS.

(xiv) a) The Company has implemented an Internal Audit System commensurate with thesize and nature of its Business. b) The Reports of the Internal Auditors for the periodunder Audit were considered by the Statutory Auditor.

(xv)In our opinion the Company has not entered in any non-cash transactions with theDirectors or persons connected with them covered under Section 192 of the Act.Accordingly the provisions of Clause 3(xv) of the order are not applicable.

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

(xvii) The Company has not incurred cash losses in the Financial Year and in theimmediately preceding Financial Year.

(xviii) The Statutory Auditors of the Company has not resigned during the year.

(xix)On the basis of the Financial Ratios ageing and expected dates of realisation ofFinancial Assets and payment of Financial Liabilities other information accompanying theFinancial Statements the Auditor's knowledge of the Board of Directors and theManagement's plans the Auditor is of the opinion that no material uncertainty exists ason the date of the Audit Report and that the Company is capable of meeting its Liabilitiesexisting at the Date of Balance Sheet as and when they fall due within a period of oneyear from the Balance Sheet Date.

(xx)The Company is not liable to contribute under Section 135 of the Companies Act2013. Accordingly the provisions of Clause 3(xx) of the order are not applicable.

(xxi)There has been no qualifications and adverse remarks by the respective Auditors inthe Companies (Auditor's Report) Order (CARO) Reports of the Companies to be included inthe Consolidated Financial Statements.

For PPKG & Co
Chartered Accountants
Firm's Registration No. 009655S
Sd/-
Girdhari Lal Toshniwal Partner
Membership No. 205140
UDIN: 22205140AJIWTD1057
Date: 21st May' 2022
Place: Hyderabad

Annexure B to the Independent Auditor's Report of even date to the Members of M/sPharmaids Pharmaceuticals Limited on the Financial Statements for the Year ended March31 2022 Independent Auditor's Report on the Internal Financial Controls under Clause (i)of Sub-section 3 of Section 143 of the Companies Act 2013 (‘the Act') Opinion

1. In conjunction with our Audit of the Financial Statements of M/s PharmaidsPharmaceuticals Limited (‘the Company') as at and for the Year ended March 31 2022we have audited the Internal Financial Controls Over Financial Reporting (‘IFCoFR')of the Company as at that date.

2. In our opinion the Company has in all material respects adequate InternalFinancial Controls over Financial Reporting and such controls were operating effectivelyas at March 31 2022 based on the Internal Control over Financial Reporting criteriaestablished by the Company considering the essential components of Internal Control asstated in the Guidance Note issued by the ICAI.

Management's Responsibility for Internal Financial Controls

3. The Company's Board of Directors is responsible for establishing and maintainingInternal Financial Controls based on the Internal Control Over Financial Reportingcriteria established by the Company considering the essential components of InternalControl as stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (‘the Guidance Note') issued by the Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include the DesignImplementation and Maintenance of adequate Internal Financial Controls that were operatingeffectively for ensuring the orderly and efficient conduct of the Company's Businessincluding adherence to the 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.

Auditor's Responsibility

4. Our responsibility is to express an opinion on the Company's IFCoFR based on ourAudit. We conducted our Audit in accordance with the Standards on Auditing issued by theICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an Audit of the IFCoFR and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

5. Our Audit involves performing procedures to obtain Audit Evidence about the adequacyof the IFCoFR and their operating effectiveness. Our Audit of IFCoFR includes obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of the Internal Controls based onthe assessed risk. The procedures selected depend on the Auditor's judgment including theassessment of the risks of material misstatement of the Financial Statements whether dueto fraud or error.

6. We believe that the Audit Evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls Over Financial Reporting

7. A Company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of Financial Reporting and the preparation of Financial Statements forexternal purposes in accordance with the Generally Accepted Accounting Principles. ACompany's IFCoFR include those policies and procedures that

(i) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the Assets of the Company; (ii)Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of the Financial Statements in accordance with the Generally AcceptedAccounting Principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of Management and Directors of the Company; and(iii) 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

8. Because of the Inherent Limitations of the IFCoFR including the possibility ofcollusion or improper Management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that the IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the Policies or Proceduresmay deteriorate.

For PPKG & Co
Chartered Accountants
Firm's Registration No. 009655S
Sd/-
Girdhari Lal Toshniwal Partner
Membership No. 205140
UDIN: 22205140AJIWTD1057
Date: 21st May' 2022
Place: Hyderabad

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