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Welcure Drugs & Pharmaceuticals Ltd.

BSE: 524661 Sector: Health care
NSE: N.A. ISIN Code: INE331C01017
BSE 12:49 | 28 Sep 9.00 -0.47
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NSE 05:30 | 01 Jan Welcure Drugs & Pharmaceuticals Ltd
OPEN 9.00
PREVIOUS CLOSE 9.47
VOLUME 42616
52-Week high 12.08
52-Week low 4.88
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 9.00
Sell Qty 978638.00
OPEN 9.00
CLOSE 9.47
VOLUME 42616
52-Week high 12.08
52-Week low 4.88
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 9.00
Sell Qty 978638.00

Welcure Drugs & Pharmaceuticals Ltd. (WELCUREDRUGS) - Auditors Report

Company auditors report

To

The Members of Welcure Drugs & Pharmaceuticals Limited Report on the Audit of theFinancial Statements Opinion

We have audited the accompanying financial statements of Welcure Drugs &Pharmaceuticals Limited ("the Company") which comprise the Balance Sheet asat 31st March 2022 the Statement of Profit and Loss(including Other ComprehensiveIncome) Statement of Changes in Equity and Cash Flow Statement for the year ended on thatdate and notes to the financial statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as financialstatements).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards ("Ind AS")prescribed under section 133 of the Act read with Companies (Indian Accounting Standards )Rules 2015 as amended and other accounting principles generally accepted in India of theState of affairs of the Company as at 31st March 2022 its profit(including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statement in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined that there are no key audit matters to communicate in our report.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the financial statementsand our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and those charged with governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance(including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting standardsspecified under section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud 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 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness 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 doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act based on our audit 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 (including other comprehensiveincome) Statement of Changes in Equity and the Cash Flow Statement dealt with by thisreport are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards ("Ind AS") specified under section 133 of the Act readwith relevant rules issued thereunder.

(e) On the basis of the written representations received from the directors as on 31stMarch 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols with reference to financial statements.

(g) In our opinion and according to the information and explanations given to us themanagerial remuneration for the year ended March 312022 paid by the Company to itsdirectors is in accordance with the provisions of section 197 read with Schedule V to theAct ;

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and 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 financial statements (refer to Note 5 to the financial statements);

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at March 312022;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2022.

Annexure "A" referred to in paragraph 1 of "Report on Other Legal andRegulatory Requirements" of Independent Auditor's Report to the members ofWelcure Drugs & Pharmaceuticals Ltd on its financial statements as of and for theyear ended 31st March 2022 we report that:

(i) In our opinion the Company does not have any property plant and equipment andintangible assets accordingly provisions of clause 3(i)(a) to (e) of the Order are notapplicable.

(ii) The Company did not hold any inventory during the year. Accordingly clause 3(ii)of the Companies (Auditor's Report) Order 2016 is not applicable to the Company.

(iii) According to information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies firms limited liabilitypartnership or other parties covered in the register maintained under section 189 of theCompanies Act 2013. In view of this clause 3(iii) of the Companies (Auditor's Report)Order 2016 is not applicable.

(iv) According to the information and explanations given to us the Company has neithergranted any loan nor made any investment or provided guarantee or security during theyear. In view of this clause 3(iv) of the Companies (Auditor's Report) Order 2016 is notapplicable.

(v) According to the information and explanations given to us the Company has notaccepted deposits as defined in Company (Acceptance of Deposits) Rules 2014. In view ofthis clause 3(v) of the Companies (Auditor's Report) Order 2016 is not applicable.

(vi) In our opinion the cost records have not been specified by the CentralGovernment. Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingwith appropriate authorities undisputed statutory dues including income tax and otherstatutory dues applicable to it. According to the information and explanations given tous no amount in respect of above was in arrears as at 31.03.2022 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us in our opinion there are no statutory dues which have not beendeposited on account of any dispute except income tax. The income tax department hadraised a tax demand for an amount of Rs. 32.99 lakhs for the assessment year 2011-12 andthe Company has filed an appeal before Commissioner of Income Tax (Appeals) AlwarRajasthan against the same. The hearing of the appeal is in progress; and as informed bythe management chances of order in favour of the Company are high on merits and legalgrounds.

(viii). In our opinion there is no transaction which was not been recorded in thebooks of account and have been surrendered or disclosed as income during the period in thetax assessments under the Income Tax Act 1961 (43 of 1961). Accordingly the provisionsof clause 3(viii) of the Order are not applicable.

(ix) . (a) The Company have not taken any loans and accordingly the provisions ofclause 3(ix)(a) 3(ix)(c) to 3(ix)(f) of the Order are not applicable.

(b) In our opinion the Company has not been declared willful defaulter by any bank orfinancial institution or other lender.

(x) . According to the information and explanation given to us the Company has neitherraised money by way of initial public offer or further public offer (including debtinstruments) nor obtained any term loans during the year. Therefore clause 3(ix) of theCompanies (Auditor's Report) Order 2016 is not applicable.

(xi) . (a) No fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the period covered by our audit.

(b)In our opinion no report under sub-section (12) of section 143 of the Companies Acthas been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government. Accordingly the provisionsof clause 3(viii) of the Order are not applicable.

(c) In our opinion no whistle-blower complaints have been received during the periodby the company.

(xii) . In our opinion the Company is not a Nidhi Company. Therefore the provisionsof clause

3(xii) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

(xiii) . According to information and explanation given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013 andthe details have been disclosed in the notes to the financial statements as required bythe applicable accounting standards.

(xiv) . According to information and explanation given to us the Company has effectiveinternal audit system that commensurate with its size and nature of its business. And thereports of the Internal auditors for the period under audit were duly considered by us.

(xv) . According to information and explanation given to us the Company has notentered into any non-cash transactions with directors or persons connected with them andhence provisions of section 192 of the Companies Act 2013 are not applicable.

(xvi) . According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

(xvii) . The Company has not incurred any cash losses in the financial period and inthe immediately preceding financial year.

(xviii) . There has been no resignation of the statutory auditors during the period andaccordingly this clause is not applicable.

(xix). According to the information and explanations given to us and on the basis ofthe financial ratios and information accompanying the financial statements our knowledgeof the Board of Directors and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that company is not capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the company as and when they fall due.

(xx) . The provisions of Section 135 are not applicable to the Company and accordinglyprovisions of clause (xx)(a) and (b) of the Order are not applicable.

(xxi) . Consolidated financial statements are not applicable to the Company andaccordingly provisions of clause (xxi) of the Order are not applicable.

Annexure "B" to the independent auditor's report of even date on thefinancial statements of Welcure Drugs & Pharmaceuticals Ltd

Report on the Internal Financial Controls under Clause (i) of sub section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of"Report on Other Legal and Regulatory Requirements" section:

We have audited the internal financial controls with reference to financial statementsof Welcure Drugs & Pharmaceuticals Limited ("the Company") as of 31stMarch 2022 in conjunction with our audit of the financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").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 Act.

Auditors' 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 asspecified under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements both applicable to anaudit of Internal Financial Controls and both issued by the "ICAI". ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements were established and maintainedand if 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 financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements 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 withreference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A Company's internal financial control 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 control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with 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 control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to financial statement and such internal financialcontrols were operating effectively as at 31st March 2022 based on the internal financialcontrols with reference to financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the"ICAI".

For V.P. Gupta & Co.
Chartered Accountants
(Registration No. 000699N)
CA V. P. Gupta
Partner
M. No. 080557
UDIN:
Place: Delhi
Date: April 2022

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