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Sunil Healthcare Ltd.

BSE: 537253 Sector: Others
NSE: N.A. ISIN Code: INE671C01016
BSE 00:00 | 07 May 32.90 0.40
(1.23%)
OPEN

31.05

HIGH

33.95

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31.05

NSE 05:30 | 01 Jan Sunil Healthcare Ltd
OPEN 31.05
PREVIOUS CLOSE 32.50
VOLUME 1360
52-Week high 43.75
52-Week low 17.05
P/E
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 31.05
CLOSE 32.50
VOLUME 1360
52-Week high 43.75
52-Week low 17.05
P/E
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Opinion

We have audited the accompanying standalone financial statements ofSunil Healthcare Limited ("the Company”) which comprise the Balance sheet as atMarch 31 2020 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 312020its loss 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 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' issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the 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 judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 31 2020. 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.

Key Audit Matter Auditor's Response
1 Revenue Recognition How our audit addressed the key audit matter:
For the financial year ended 31 March 2020 the Company has recorded revenue from operation amounting to Rs. 7012.93 Lakhs. The accounting policies for revenue recognition are set out in Note 2.13 to the financial statements of the Company have been disclosed in Note 24 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 cutoff tests to ensure the Company has complied with proper cut-off procedures and revenue is recognized in the appropriate accounting period. 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. As at March 31 2020 the total carrying amount of inventories was Rs. 2243.41 lakhs. The assessment of impairment of inventories involves significant estimation uncertainty subjective assumptions and the application of significant judgment. 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 and turnover rate. We have 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. We conducted a detailed discussion with the key management and considered their views on the adequacy of allowances for inventory obsolescence considering 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 at the reporting date. 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 otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone financial statements and our auditor's reportthereon. We have obtained all other information prior to the date of this auditor'sreport.

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 financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act”) with respect to thepreparation of these Financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andstatement of changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015and Companies (Indian Accounting Standards) Amendment Rules 2016 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management 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 Standalone FinancialStatements

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(3X0 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 the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto 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 regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso 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” a statement on thematters specified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(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) read with the Companies (IndianAccounting Standards) Rules 2015 and Companies (Indian Accounting Standards) AmendmentRules 2016 as amended specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2013;

(e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 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 director 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 the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations 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.

For JKVS & Co.
Chartered Accountants
Firm Reg. No. 318086E
Sd/-
Kuldeep Maloo
Partner
Place: New Delhi Membership No. 515708
Date: June 30 2020 UDIN: 20515708AAAAAN9220

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 lockdown imposed byCentral Government of India due to Covid-19 pandemic no physical verification ofproperty plant & equipment covered by the regular programme were carried out. In ouropinion programme of physical verification with reference to frequency need to beimproved.

c. The title deed of immovable properties is held in the name of theCompany.

(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 State InsuranceIncome-tax Sales-tax Service Tax Goods and Service Tax Duty of customs Duty ofexcise Value Added Tax Cess and other material statutory dues where applicable withthe appropriate authorities. There were no undisputed outstanding statutory dues as at theyearend for a period of more than six months from the date they became payable.

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 financial statements and according to theinformation 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 made private placement of redeemable preferenceshares during the year which is in compliance with requirements of Section 42 of CompaniesAct 2013 and the amount raised have been used for the purposes for which the funds wereraised. The company has not made any preferential allotment or fully or partly convertibledebentures during the year.

(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.

For JKVS & Co.
Chartered Accountants
Firm Reg. No. 318086E
Sd/-
Kuldeep Maloo
Partner
Place: New Delhi Membership No. 515708
Date: June 30 2020 UDIN: 20515708AAAAAN9220

ANNEXUREB

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”) as ofMarch 31 2020 in conjunction with our audit of the standalone financial statements of theCompany 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 safeguarding ofits 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting (the "guidance Note”) and the standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to as audit of internal financial controls both applicableto an audit 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 aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial 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 that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system with reference to financial statements.

Meaning of Internal Financial controls with reference to financialstatements

A Company's internal financial controls with reference to 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 internal;financial control with reference to financial statements includes those policies andprocedures 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 as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorization of management and directors of the company ; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition 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 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.

Opinion

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 312020 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 however same need to be further strengthened.

For JKVS & Co.
Chartered Accountants
Firm Reg. No. 318086E
Sd/-
Kuldeep Maloo
Partner
Place: New Delhi Membership No. 515708
Date: June 30 2020 UDIN: 20515708AAAAAN9220

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