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Sunil Healthcare Ltd.

BSE: 537253 Sector: Others
NSE: N.A. ISIN Code: INE671C01016
BSE 00:00 | 27 May 19.20 0.90
(4.92%)
OPEN

18.30

HIGH

19.20

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18.30

NSE 05:30 | 01 Jan Sunil Healthcare Ltd
OPEN 18.30
PREVIOUS CLOSE 18.30
VOLUME 89
52-Week high 37.50
52-Week low 13.80
P/E
Mkt Cap.(Rs cr) 20
Buy Price 18.35
Buy Qty 225.00
Sell Price 19.20
Sell Qty 50.00
OPEN 18.30
CLOSE 18.30
VOLUME 89
52-Week high 37.50
52-Week low 13.80
P/E
Mkt Cap.(Rs cr) 20
Buy Price 18.35
Buy Qty 225.00
Sell Price 19.20
Sell Qty 50.00

Sunil Healthcare Ltd. (SUNILHEALTHCARE) - Auditors Report

Company auditors report

To

The Members of

Sunil Healthcare Limited.

Report on theAudit of theStandalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Sunil HealthcareLimited ("the Company") which comprise the Balance sheet as at March 31 2019the Statement of Profit and Loss (including the Statement of Other Comprehensive Income)the Statement of Changes in Equity and the Cash Flow Statement for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "the financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind-AS financial statementsgive the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfairview in conformitywith the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 its profit including othercomprehensive income the changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalonefinancial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities 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 togetherwith the ethical requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence obtained by us is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

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 standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe keyaudit matters to be communicated in our report.

We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the financial statements section of our report including in relation tothese matters. Accordingly our audit included the performance of procedures designed torespond to our assessment of the risks of material misstatement of the financialstatements. The results of our audit procedures including the procedures performed toaddress the matters below provide the basisforourauditopinion on the accompanyingfinancial statements

S.N. Key Audit Matter Auditor's Response
1. Revenue Recognition How our audit addressed the key audit matter:
For the financial year ended 31 March 2019 the Company has recorded revenue amounting to Rs. 8124.10 Lakhs. The accounting policies for revenue recognition are set out in Note 2.13 to the financial statements and the different revenue streams of the Company have been disclosed in Note 25 to the financial statements. We have identified sales cut-off to be significant because of the high volume of transactions and the varying sales contractual commercial and billing terms. Revenue recognition is susceptible to the higher risk that the revenue is recognised when the control of goods has not been transferred to the customers. We assessed the overall sales process and the relevant systems and the design of controls over the capture and recording of revenue transactions. We have tested the effectiveness of controls on the processes related to revenue recognition relevant to our audit. We performed sample testing on revenue and checked that the revenue recognition criteria are appropriately applied. We have also performed cut-off tests to ensure the Company has complied with proper cut-off procedures and revenue is recognized in the appropriateaccounting period.
Our Observation:
We found the Company's revenue recognition to be consistent with its accounting policy as disclosed in Note 2.13 to the financial statements. We are satisfied that the Company's revenue has been appropriately recognized and in the relevant accounting period.
2. Valuation of inventories How our audit addressed the key audit matter:
We refer to Note 6 and 2.14 to the financial statements. We have checked and analyzed the ageing of the inventories reviewed the historical trend on whether there were significant inventories written off or reversal of the allowances for inventory obsolescence.
As at March 31 2019 the total carrying amount of inventories was Rs. 1509.12 lakhs. The assessment of impairment of inventories involves significant estimation uncertainty subjective assumptions and the application of significant judgment. We conducted a detailed discussion with the key management and considered their views on the adequacy of allowances for inventory obsolescenceconsidering the current economic environment. We have also reviewed the subsequent selling prices in the ordinary course of business and compared against the carrying amounts of the inventories on a sample basis atthe reporting date.
Reviews are made periodically by management on inventories for obsolescence and decline in net realizable value below cost. Allowances are recorded against the inventories for any such declines based on historical obsolescence and slow-moving history. Key factors considered include the nature of the stock its ageing shelf life and turnover rate. Our Observations:
We found management's assessment of the allowance for inventory obsolescence to be reasonable based on available evidence.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe standalone financial statements and our auditor's report thereon. We have obtained allotherinformation prior to thedate ofthis auditor's report.

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 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 reportin this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the CompaniesAct 2013 ("the Act") with respect to the preparation ofthese Financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial statements that give a true and fair view and arefreefrom materialmisstatement whetherdue to fraud or error.

In preparing the standalone financial statements management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative butto do so The Board of Directors are also responsibleforoverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancialstatements 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 standalone financialstatements.

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 thestandalonefinancial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• 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 Companies Act 2013 we are also responsible forexpressing our opinion on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubton the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• 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 thatwe identify during our audit.

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "AnnexureA"a statementon the matters specified inparagraphs 3 and 4 of the Order.

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 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 the Statement of Change inEquity and the Cash Flow Statement dealt with by this Reportare in agreementwith the booksof account;

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards (Ind AS) read with the Companies (Indian Accounting Standards)Rules 2015 as amended specified underSection 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2013;

(e) On the basis of the written representations received from the directors as on March312019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312019 from being appointed as a director in terms of Section 164 (2) oftheAct;

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company with reference to these standalone financialstatements and the operating effectiveness of such controls refer to our separate Reportin "Annexure B" to this report;

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 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 remuneration paid /provided by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 33 to the standalonefinancialstatements;

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 due which were required to be transferred to the InvestorEducation and Protection Fund by the Company

For JKVS & Co.
(Formerly Known as Jitendra K Agarwal & Associates)
Chartered Accountants
Firm Reg. No. 318086E
Kuldeep Maloo
Place: New Delhi Partner
Date:May30 2019 Membership No. 515708

Annexure A

referred to in paragraph 1 of our report of even date on the other legal and regulatoryrequirements (Re: Sunil Healthcare Limited)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of plant property and equipment.

(b) The Company has a regular programme of physical verification of its plant propertyand equipment by which plant property and equipment are verified in a phased manner overa period of three years. In accordance with this programme Property Plant and Equipmentwere not physically verified during the year. In our opinion programme of physicalverification with referencet of requency need to be improved.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheldinthe name of theCompany.

(ii) The management has conducted physical verification of inventories during the yearat reasonable interval and no material discrepancies were noticedonsuch physicalverification.

(iii) The Company has granted unsecured loan to a body corporate covered in theregister maintained under Section 189 of the CompaniesAct 2013. The terms and conditionsof the grant of such loans are not prima facie prejudicial to the interest of theCompany. This loan and interest thereon are repayable on demand however it was informed tous that no demand for repayment of loan and interest was made during the year. The Companyhas not granted any loan to Firms Limited Liability Partnership or any other partiescovered in the register maintained under section 189 of the Companies Act 2013.

(iv) The Company has complied with provisions of Section 186 of the Act in respect ofloan given during the year. According to information and explanations given by themanagement no loan or guarantee or security under section 185 and no investment madeguarantee given or security provided under section 186 of the Act during theyear.

(v) The Company has not accepted any deposits covered under section 73 to 76 of theCompanies Act'2013 during the year. Therefore the provisions of clause 3(v) of the Orderare notapplicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Governmentforthe maintenance of cost records undersection 148(1) of the Companies Act 2013 in respect of the Company's products to whichthe said rules are applicable and are of the opinion that prima facie the prescribedrecords have been made and maintained. We have however not made a detailed examinationof the said records with a view to determine whether they are accurate or complete.

(vii) a. According to the records of the Company the Company is generally regular indepositing amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including Provident Fund Employee's State Insurance Income-taxSales-tax Service Tax Duty of customs Duty of excise Value Added Tax Cess and othermaterial statutory dues with the appropriate authorities. There was no undisputedoutstanding statutory dues as at the yearend for a period of more than six months from thedate they became payable.

b. According tothe records of the Company there arenoduesoutstanding on account ofIncome-tax Sales-tax Value Added Tax Service Tax Duty of customs Duty of excise andCess on account of any dispute.

(viii) The Company has not defaulted in repayment of dues to banks and financialinstitutions. The Company did not have any borrowing from Government and dues to debentureholders.

(ix) The Company did not raise any money byway of initial publicoffer or further publicoffer (including debt instruments). Further in our opinion and explanations given to usterm loans were applied for the purpose for which loans were raised.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven to us no fraud by the Company or no fraud on the Company by its officers andemployees has been noticed or reported during the year.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisionsofsection 197 read with ScheduleV to the Act.

(xii) In ouropinion and according to the information and explanations given to us theCompany is not a nidhi company. Therefore the provisions of clause 3 (xii) of the Orderare not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related partiesare incompliance with sections 177 and 188 of the Act where applicable and details ofsuchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give 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. Therefore the provisions of clause 3(xiv) of the Order are not applicable.

(xv) 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 non-cashtransactions with directors or persons connected with directors. Therefore the provisionsof clause 3(xv) of the Order are not applicable.

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

For JKVS & Co.
(Formerly Known as Jitendra KAgarwal & Associates)
Chartered Accountants
Firm Reg. No. 318086E
Kuldeep Maloo
Place: New Delhi Partner
Date:May30 2019 Membership No. 515708

ANNEXURE B

Report on the Internal Financial controls under Clause (I) of Sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to standalone financialstatements of Sunil Healthcare Limited ('the Company") as of March 312019 inconjunction with our audit of the standalone financial statements of the Company for theyear endedonthatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control overthefinancial reporting criteriaestablished by theCompany 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation ofreliablefinancial information as required under theCompanies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "guidance Note") and the standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the CompaniesAct 2013 tothe extent applicable to as audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those standards and the Guidance Note require that we comply withethical requirements of and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statements.

Meaning of Internal Financial controlswith reference to financial statements

ACompany's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal; financial controlwith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorization of management and directors of the company ; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations ofInternal Financial controlswith reference to financialstatements

Because of the inherent limitations of Internal Financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree ofcompliancewiththepolicies orproceduresmaydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectivelyas atMarch 312019 based on the internal control over the financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance Note onAudit of Internal Financial Controls over Financial Reportingissued by the Institute of CharteredAccountantsof Indiahoweversameneedtobefurtherstrengthened.

For JKVS & Co.
(Formerly Known as Jitendra KAgarwal & Associates)
Chartered Accountants
Firm Reg. No. 318086E
Kuldeep Maloo
Place: New Delhi Partner
Date: May 30 2019 Membership No. 515708