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Rainbow Childrens Medicare Ltd.

BSE: 543524 Sector: Health care
NSE: RAINBOW ISIN Code: INE961O01016
BSE 12:54 | 17 Aug 595.00 -6.10
(-1.01%)
OPEN

586.00

HIGH

600.00

LOW

586.00

NSE 12:44 | 17 Aug 595.20 -6.60
(-1.10%)
OPEN

595.00

HIGH

600.00

LOW

585.30

OPEN 586.00
PREVIOUS CLOSE 601.10
VOLUME 7535
52-Week high 607.95
52-Week low 410.00
P/E 42.35
Mkt Cap.(Rs cr) 6,039
Buy Price 594.95
Buy Qty 9.00
Sell Price 595.85
Sell Qty 2.00
OPEN 586.00
CLOSE 601.10
VOLUME 7535
52-Week high 607.95
52-Week low 410.00
P/E 42.35
Mkt Cap.(Rs cr) 6,039
Buy Price 594.95
Buy Qty 9.00
Sell Price 595.85
Sell Qty 2.00

Rainbow Childrens Medicare Ltd. (RAINBOW) - Auditors Report

Company auditors report

To the Members of

Rainbow Children's Medicare Private Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Rainbow Children's MedicarePrivate Limited ("the Company") which comprise the standalone balance sheet asat 31st March 2021 and the standalone statement of profit and loss (includingother comprehensive income) standalone statement of changes in equity and standalonestatement of cash flows for the year then ended and notes to the standalone financialstatements including a summary of the significant accounting policies and otherexplanatory 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 Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2021 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements Section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the Standalone financial statements.

Other Information

The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Director'sreport but does not include the financial statements and our auditors' report 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 I other information and in doing so consider whether the otherinformation is materially inconsistent A with the standalone financial statements or ourknowledge obtained in the audit or otherwise appears to / be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report in^ this regard.

Management's and 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 Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit and othercomprehensive income changes in equity and cash Hows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring accuracy and completeness of the accounting records relevant tothe preparation and presentation of the standalone financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements the Management and Board of Directorsare responsible 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 the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's 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:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible a for expressing our opinion on whether the Companyhas adequate internal financial controls with jl reference to financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial statementsmade by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board of Directors use ofthe going 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 maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent 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 identity 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.

Report on Other Legal and Regulatory Requirements

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

2. (A) 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 necessaiy 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 flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 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".

B) With respect to the other matters to be included in the Auditors' 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 as at 31 March 2021 onits financial position in its standalone financial statements - Refer Note 2.31(A) to thestandalone financial statements;

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.

iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these financial statements since they do not pertain to thefinancial year ended 31 March 2021.

C) With respect to the matter to be included in the Auditors' Report under Section197(16):

In our opinion and according to the information and explanations given to us theprovisions of Section 197 of the Act are applicable only to a public Company. Accordinglythe matter to be included in the Auditor's Report under Section 197(16) is not applicableto the Company.

for B S R & Associates LLP

Chartered Accountants

ICAI Firm Registration number: 116231W / W-100024

Hemant Maheshwari

Partner

Membership Number: 096537

UDIN: 21096537AAAAEV5000

Place: Hyderabad

Date : 19 July 2021

Annexure A to the Independent Auditor's Report to the Standalone financial statements

With reference to the Annexure A referred to in paragraph 1 in Report on Other Legaland Regulatory Requirements of Independent Auditor's report to the Members of RainbowChildren's Medicare Private Limited (‘the Company') on the Standalone financialstatements for the year ended 31 March 2021 we report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of its fixed assets bywhich all the fixed assets are verified in a phased manner over a period of two years. Inour opinion the periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. In accordance with this program certainfixed assets were verified during the year. No material discrepancies were noted on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deed of immovable property asdisclosed in Note 2.1 (a)(i) on property plant and equipment to the Standalone financialstatements is not held in the name of the Company.

Amount in Rs. crores
Total number of cases (number of sale deeds) Whether leasehold or freehold Gross block as on 31 March 2021 Net block as on 31 March 2021
1 Freehold 3.31 3.31

ii. The inventories have been physically verified by the Management at regularintervals during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noted on verification between the physical stocks and bookrecords were not material.

iii. The Company has granted unsecured loans to five companies covered in the Registermaintained under Section 189 of the Companies Act 2013 ('the Act').

(a) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the terms and conditions onwhich unsecured loans have been granted is not prima facie prejudicial to the interestof the Company.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company for the unsecured loans granted terms andconditions with respect to repayment of principal and payment of interest are notstipulated. We are therefore unable to make specific comment on the regularity ofrepayment of principal and payment of interest.

(c) In respect of aforesaid loans there are no amounts which are overdue for more thanninety days

The Company has not granted any loans secured or unsecured to firms limited liabilitypartnership or I other parties covered in the Register maintained under Section 189 of theAct.

iv. 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 Act in respect ofthe loans given and investments made. Further the Company has not provided any guaranteesor security to the parties covered under Section 185 and 186 of the Act.

v. The Company has not accepted any deposits from the public within the meaning ofprovisions of Sections 73 74 75 and 76 of the Act and Rules framed thereunder.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules prescribed by the Central Government of India for maintenance of cost recordsunder Section 148 of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a detailedexamination of the records.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' stateinsurance Income-tax Duty of customs Goods and Services tax and other materialstatutory dues have generally been regularly deposited during the year by the Company withthe appropriate authorities though there have been slight delays in few cases. Asexplained to us the Company did not have any dues on account of Cess.

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofProvident fund Employees' state insurance Duty of customs Income-tax Goods andServices tax and other material statutory dues were in arrears as at 31 March 2021 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of Service tax Goods andServices tax and Duty of customs which have not been deposited with appropriateauthorities on account of any dispute. However the Company disputes the dues in respectof Income-tax Sales tax and Value added tax as set out below.

Name of the statute Nature of the dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income tax 5999625 Financial year 2016-2017 Commissioner of Income tax Hyderabad
1754767 Financial year 2018-2019 Commissioner of Income tax Hyderabad
12237154 Financial year 2017-2018 Commissioner of Income tax Hyderabad
Andhra Pradesh Value Added Tax Act 2005 Value added tax 3924529 Financial year 2014-2015 Commercial Tax Officer Hyderabad
Finance Act 1994 Service Tax 5001606 October 2015 to June 2017 Assistant Commissioner Officer Hyderabad
Goods and Service Taxes Goods and Service Tax 18244996 July 2017 to March 2018 Directorate General of GST Hyderabad
Andhra Pradesh Tax on Luxuries Act 1987 Luxury tax 18553033 (8304243paid under protest) Financial year 2010-2011 to 2013-2014 High Court of Telangana.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans or borrowings to any banks or dues todebenture holders as at the Balance sheet date. Further the Company does not have anyoutstanding loans or borrowings from financial institutions and government.

ix. According to the information and explanations given to us and based on examinationof the records of the Company the term loans obtained during the year were applied forthe purpose for which they were obtained. The Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) during the year.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of such case by theManagement.

xi. The provisions of Section 197 read with Schedule V of the Act are applicable onlyto public Company. Accordingly the provisions of paragraph 3(xi) of the said Order arenot applicable to the Company.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of paragraph 3(xii) of thesaid Order is not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 188 of the Act wherever applicable and the details of suchtransactions have been disclosed in the Standalone financial statements as required underIndian Accounting Standard (Ind AS) 24 Related party disclosures specified under Section133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. Further theCompany is not required to constitute an Audit Committee under Section 177 of the Act andaccordingly to this extent the provisions of paragraph 3(xiii) of the said Order is notapplicable to the Company.

xiv. According to the information and explanations 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 or fully or partly convertible debentures duringthe year under review. Accordingly provisions of paragraph 3(xiv) of the said Order isnot applicable to the Company.

xvj) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransaction with the directors or persons connected with him. Accordingly the provisionsof paragraph 3(xv) of the said Order is not applicable to the Company.

xvi. In our opinion and according to the information and explanation given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly the provisions of paragraph 3(xvi) of the said Order is notapplicable to the Company.

for B S R & Associates LLP

Chartered Accountants

ICAI Film Registration No.: 116231W/ W-100024

Hemant Maheshwari

Partner

Membership No.: 096537

UDIN: 21096537AAAAEV5000

Place: Hyderabad

Date: 19 July 2021

Annexure B to the Independent Auditors' report on the standalone financial statementsof Rainbow Children's Medicare Private Limited for the year ended 31 March 2021.

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 ("Act")

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and RegulatoryRequirements' Section of our report of even date)

Opinion

We have audited the internal financial controls with reference to standalone financialstatements of Rainbow Children's Medicare Private Limited ("the Company") as of31 March 2021 in conjunction with our audit of the standalone financial statements of theCompany 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 31 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 theInstitute of Chartered Accountants of India (the "Guidance Note").

Management's and Board of Directors' 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 standalone financial statements criteria established by the Companyconsidering the essential components of internal control 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 Company's policies thesafeguarding 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").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to 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 Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone 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 the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud 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 standalone financial statements include thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of Management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the 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 with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

for B S R & Associates LLP

Chartered Accountants

ICAI Firm Registration number: 116231W / W-100024

Hemant Maheshwari

Partner

Membership Number: 096537

UDIN: 21096537AAAAEV5000

Place: Hyderabad

Date: 19 July 2021.

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