Sunil Healthcare Ltd.
|BSE: 537253||Sector: Others|
|NSE: N.A.||ISIN Code: INE671C01016|
|BSE 00:00 | 08 Aug||104.40||
|NSE 05:30 | 01 Jan||Sunil Healthcare Ltd|
|Mkt Cap.(Rs cr)||107|
|Mkt Cap.(Rs cr)||107.01|
Sunil Healthcare Ltd. (SUNILHEALTHCARE) - Auditors Report
Company auditors report
To the Members of Sunil Healthcare Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements ofSunil Healthcare Limited ("the Company") which comprise the Balance sheet as atMarch 31 2021 the Statement of Profit and Loss including Other Comprehensive Income theStatement of Changes in Equity and the Cash Flow Statement for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the financialstatements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021its profit including other comprehensive income the changes in equity and its cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone FinancialStatements' section of our report. We are independent of the Company in accordancewith the Code of Ethics' issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 31 2021. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. We have determined thematters described below to be the key audit matters to be communicated in our report
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone financial statements and our auditor'sreport thereon. We have obtained all other information prior to the date of thisauditor's report.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge 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 inthis regard.
Responsibilities of Management for the Standalone Financial Statements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Standalone Financial Statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and statement of changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible 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 also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial 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 theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's 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'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant de_ciencies in internal control that we identifyduring our audit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
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 of the Act we give in the "Annexure_A" astatement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act we report that:
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Change in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards (Ind AS) specified under Section 133 of theAct;
(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March_31_2021 from being appointed as a director in termsof Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B" to this report;
(g) In our opinion the remuneration paid /provided by the Company toits directors during the year is in accordance with the provisions of section 197 (16) ofthe Act.
(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule_ 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements Refer Note 32 to thestandalone financial statements;
ii. The Company did not have material foreseeable losses in long-termcontracts including derivative contracts;
iii. There has been no amount which is required to be transferred tothe Investor Education and Protection Fund by the Company.
Annexure A referred to in paragraph 1 of our report of even date on theother legal and regulatory requirements (Re: Sunil Healthcare Limited)
(i) a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant &equipment. b. The Company has a regular programme of physical verification of itsproperty plant and equipment by which property plant and equipment are verified in aphased manner over a period of three years. As informed to us due to Covid-19 pandemicno physical verification of property plant & equipment covered by the regularprogramme were carried out. In our opinion programme of physical verification withreference to frequency need to be improved. c. The title deed of immovable properties isheld in the name of the Company.
(ii) The management has conducted physical verification of inventoriesduring the year at reasonable interval and no material discrepancies were noticed on suchphysical verification.
(iii) The Company has granted unsecured loan in earlier year to a bodycorporate covered in the register maintained under Section 189 of the Companies Act 2013.The terms and conditions of the grant of such loans are not prima facie prejudicial tothe interest of the Company. This loan and interest thereon are repayable on demandhowever it was informed to us that no demand for repayment of loan and interest was madeduring the year. The Company has not granted any loan to Firms Limited LiabilityPartnership or any other parties covered in the register maintained under section 189 ofthe Companies Act 2013.
(iv) The Company has not granted any loan or guarantee given orsecurity provided under section 185 of the Companies Act 2013 and no investment madeloan or guarantee given or security provided under section 186 of the Companies Act 2013during the year. Therefore provisions of clause 3(iv) of the Order are not applicable tothe Company.
(v) The Company has not accepted any deposit covered under sections 73to 76 of the Companies Act 2013 during the year. Therefore provisions of clause 3(v) ofthe Order are not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 in respect of the Company'sproducts to which the said rules are applicable and are of the opinion that prima faciethe prescribed records have been made and maintained. We have however not made adetailed examination of the said records with a view to determine whether they areaccurate or complete.
(vii) a. According to the records of the Company the Company isgenerally regular in depositing amounts deducted/ accrued in the books of account inrespect of undisputed statutory dues including Provident Fund Employee's StateInsurance Income-tax Sales-tax Service Tax Goods and Service Tax Duty of customsDuty of excise Value Added Tax Cess and other material statutory dues where applicablewith the appropriate authorities. There were no undisputed outstanding statutorydues as at the yearend for a period of more than six months from the date they becamepayable.
b. According to the records of the Company there are no duesoutstanding of income tax sales tax service tax duty of customs duty of excise andvalue added tax on account of any dispute.
(viii) The Company has not defaulted in repayment of dues to banks andfinancial institutions. The Company did not have any borrowing from Government and dues todebenture holders.
(ix) During the year the Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments). Further in ouropinion and explanations given to us term loans raised during the year were applied forthe purpose for which loans were raised.
(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the standalone financial statements and according tothe information and explanations given to us no fraud by the Company or no fraud on theCompany by its officers and employees has been noticed or reported during the year.
(xi) The Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act 2013.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Therefore the provisions of clause3(xii) of the Order are not applicable to the Company.
(xiii) According to the information and explanations given by themanagement and based on our examination of the records of the Company transactions withthe related parties are in compliance with section 177 and 188 of the Companies Act 2013where applicable and details for the same have been disclosed in the standalone financialstatements as required by the applicable Indian accounting standards.
(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Thereforethe provisions of clause 3(xiv) of the Order are not applicable to the Company.
(xv) According to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with them. Therefore the provisions of clause 3(xv) of the Order arenot applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
Report on the Internal Financial controls under Clause (i) of Sub -section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference tostandalone financial statements of Sunil Healthcare Limited (the Company") asof March 31 2021 in conjunction with our audit of the standalone financial statements ofthe Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over the financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "guidance Note") and the standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to as audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those standards and the Guidance Note requirethat we comply with ethical requirements of and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system with referenceto financial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to financial statements included obtaining an understanding ofinternal financial controls with reference to financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system with referenceto financial statements.
Meaning of Internal Financial controls with reference to financialstatements
A Company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal; financial control with reference to financial statements includesthose policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany ;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorization of management and directors of thecompany ; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.
Inherent Limitations of Internal Financial controls with reference tofinancial statements
Because of the inherent limitations of Internal Financial controls withreference to 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 financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system with reference to standalone financial statements andsuch internal financial controls with reference to standalone financial statements wereoperating effectively as at March 31 2021 based on the internal control over thefinancial reporting criteria established by the company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.