To
The Members of
Pharmaids Pharmaceuticals Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Pharmaids
Pharmaceuticals Limited (‘the Company), which comprise the Standalone Balance Sheet
as at March 31, 2023, the Standalone Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Cash Flow Statement and the Standalone Statement of
Changes in Equity for the year ended, and a summary of significant accounting policies and
other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us except for thunder section 133 of the Act, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 (‘Act) in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India including Indian Accounting Standards (‘Ind
AS) specified under section 133 of the Act, of the state of affairs (Financial position)
of the Company as at March 31, 2023, and its profit (financial performance including other
comprehensive income), its cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditors Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India (‘ICAI) together
with the ethical requirements that are relevant to our audit of the financial statements
under the provisions of the Act and the rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
abasis for our opinion.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were
addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matter described below to be the key audit matters to be
communicated in our report.
Information other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the financial statements and our auditors report thereon. Our opinion on the financial
statements does not cover the other information and we will not express any form of
assurance conclusion thereon. In connection with our audit of the financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this
other information; we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the state of affairs (financial position), profit or
loss (financial performance including other comprehensive income), cash flows and changes
in equity of the Company in accordance with the accounting principles generally accepted
in India, including the Ind AS specified under section 133 of the Act. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report on Standalone Financials that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or override internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section143(3)(i)
of the Act, we are also responsible for explaining our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of
such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 (‘the Order) issued
by the Central Government of India in terms of section 143(11) of the Act, we give in the
Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order.
Further to our comments in Annexure A, as required by section 143(3) of the Act, we
report that:
a) we have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
c) the standalone financial statements dealt with by this report are in agreement with
the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS
specified under section 133 of the Act;
e) on the basis of the written representations received from the Directors and taken on
record by the Board of Directors, none of the directors is disqualified as on 31st
March, 2023 from being appointed as a director in terms of section164(2) of the Act;
f) we have also audited the internal financial controls over financial reporting
(IFCoFR) of the Company as on March 31, 2023 in conjunction with our audit of the
standalone financial statements of the Company for the year ended on that date and our
report as per Annexure B expressed unmodified opinion; and
g) with respect to the other matters to be included in the Auditors Report in
accordance with rule11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in
our opinion and to the best of our information and according to the explanations given to
us:
i) The Company has disclosed the impact of pending litigations on its financial
position as at March 31, 2023;
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses as at March 31, 2023;
iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company during the year ended March 31,
2023; and
iv)
• The Management has represented that, to the best of its knowledge and belief,
other than as disclosed in the Notes to the Accounts, No Funds have been advanced or
loaned or invested (either from Borrowed Funds or Share Premium or any other sources or
kind of funds) by the Company to or in any other Person(s) or Entity(ies), including
Foreign Entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
• The Management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the Notes to the Accounts, No Funds have been received by the
Company from any Person(s) or Entity(ies), including Foreign Entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
• Based on such Audit Procedures that the Auditor has considered reasonable and
appropriate in the circumstances, nothing has come to their notice that has caused them to
believe that the representations under sub-clause (i) and (ii) contain any material
mis-statement.
• The Company has not declared Dividend and nor paid during the year.
| For PPKG & Co |
| Chartered Accountants |
| Firms Registration No.: 009655S |
| Sd/- |
| Girdhari Lai Toshniwal |
| Partner |
| Membership No: 205140 |
| UDIN: 23205140BGUNKB7110 |
| Place: Hyderabad |
| Date: 29th August 2023 |
Annexure - A to the Independent Auditors Report of even date to the Members of M/s
Pharmaids Pharmaceuticals Limited, on the Standalone Financial Statements for the Year
ended March 31, 2023
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the Standalone Financial Statements of the Company and taking into consideration
the information and explanations given to us and the Books of Accounts and other records
examined by us in the normal course of Audit, and to the best of our knowledge and belief,
we report that:
(i)
a. The Company has maintained proper records showing full particulars, including
quantitative details and situation of Fixed Assets.
b. The Company has a regular program of physical verification of its Fixed Assets under
which Fixed Assets are verified in a phased manner over a period.
c. The Title Deeds of all the Immovable Properties (which are included under the head
(‘Property, Plant and Equipment) are held in the name of the Company.
d. The Company has not revalued any of its Property, Plant and Equipments during the
year.
e. As per the information given to us there are no proceedings initiated or pending
against the Company for holding any Benami Property under the Benami Transactions
(Prohibition) Act, 1988 and Rules made there under.
(ii)
a. The Management has conducted physical verification of Inventory at regular intervals
of time.
b. The Company has not availed any Financial Assistance from any Bank or Financial
Institutions.
c. There was no Inventory Lying with the company at the end of the Financial Year.
(iii) The Company has not granted any Loans, secured or unsecured, to any Companies,
Firms, Limited Liability Partnerships or other parties, but the Company has invested the
amount in the Partnership for stake of 25.5%.
(iv) In our opinion, the Company has complied with the provisions of Section 186 in
respect of the Investments and Loans. Further, in our opinion, the Company has not entered
into any transaction covered under Section185 and Section 186 of the Act in respect of
Guarantees and Security.
(v) In our opinion, the Company has not accepted any Deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as
amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The provisions of Section 148 are not applicable to the Company.
(vii)
a. Undisputed Statutory Dues including Provident Fund, Employees State Insurance,
Income Tax, Goods and Service Tax, Duty of Customs, Cess and other Material Statutory
Dues, as applicable, have generally been regularly deposited with the appropriate
authorities.
b. There is no Dues outstanding in respect of Income Tax, Sales Tax, Service Tax, Duty
of Customs on account of disputes:
(viii) All the transactions recorded in the books of account have been disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
(ix)
a. The Company has not defaulted in repayment of Loans or Borrowings to any Bank during
the Year under review. The Company has No Loans or Borrowings payable to Financial
Institutions or Government and does not have any Outstanding Debentures during the year.
b. The Company is not declared Wilful Defaulter by any Bank or Financial Institution or
other Lender.
c. The Company has not raised any Term Loan from any Bank or Financial Institution.
d. To the extent of our check, no funds raised by the Company for short-term has been
utilized for long term purposes.
e. The Company has not taken any funds from any entity or person on account of or to
meet the obligations of its Subsidiaries, Associates or Joint Ventures.
f. The Company has not raised loans during the Year on the Pledge of Securities held in
its Subsidiaries, Joint Ventures or Associate Companies.
(x)
a. The Company has not raised any moneys by way of Initial Public Offer or Further
Public Offer during the year under review, but there is an increase in Authorised Capital
as well as paid up share capital and the requisite details have been disclosed in the
Financial Statements as required by the applicable IndAs.
b. The Company has made Preferential Allotment or Private Placement of Shares or
Convertible Debentures during the year under review. (Please Find below details of the
Private Placement of shares during the year under review)
1. On October13, 2022, the company allotted 37,00,000 convertible share warrants with a
face value of Rs. 10/- each at a premium of Rs. 5/- each on a preferential basis. The
company received Rs. 1,38,75,000/- (25% of the total consideration of Rs. 5,55,00,000/-)
on the date of allotment.
2. During the year under review the Company allotted 27,75,000 Equity Shares
(consequent to the conversion of 27,75,000 share warrants out of 37,00,000 share warrants
allotted on October 13, 2022) having face value of Rs. 10/- each at a premium of Rs. 5/-
each on preferential basis.
3. On January 17, 2023, Company Allotted 84,00,000 equity shares at face value of Rs.
10/- each at a premium of Rs. 10/- each on preferential basis.
(xi)
a. In our opinion, no fraud by the Company or any fraud on the Company has been noticed
or reported during the year under review.
b. No Report under sub-section (12) of section 143 of the Companies Act has been filed
by the Auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and
Auditors) Rules, 2014 with the Central Government.
c. No Whistle Blowers Complaints were received during the year under review.
(xii) In our opinion, the Company is not a Nidhi Company, and accordingly, provisions
of Clause 3(xii) of the Order are not applicable.
(xiii) In our opinion all transactions with the Related Parties are in compliance with
Sections 177 and 188 of the Act, where applicable, and the requisite details have been
disclosed in the Standalone Financial Statements etc., as required by the applicable Ind
AS.
(xiv) The Company has established an Internal Audit System commensurate with the size
and nature of its Business. However, the Statutory Auditor did not consider the reports of
the Internal Auditor for the Audit Period.
(xv) In our opinion, the Company has not entered in any non-cash transactions with the
Directors or persons connected with them covered under Section 192 of the Act.
Accordingly, the provisions of Clause 3(xv) of the order are not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
(xvii) The Company has not incurred cash losses in the Financial Year and in the
immediately preceding Financial Year.
(xviii) The Statutory Auditors of the Company has not resigned during the year.
(xix) On the basis of the Financial Ratios, ageing and expected dates of realization of
Financial Assets and payment of Financial Liabilities, other information accompanying the
Financial Statements, the Auditors knowledge of the Board of Directors and the
Managements plans, the Auditor is of the opinion that no material uncertainty exists as
on the date of the Audit Report and that the Company is capable of meeting its Liabilities
existing at the Date of Balance Sheet, as and when they fall due within a period of one
year from the Balance Sheet Date.
(xx) The Company is not liable to contribute under Section 135 of the Companies Act,
2013.Accordingly, the provisions of Clause 3(xx) of the order are not applicable.
(xxi) There has been no qualifications and adverse remarks by the respective Auditors
in the Companies (Auditors Report) Order (CARO) Reports of the Companies to be included
in the Consolidated Financial Statements.
| For PPKG & Co |
| Chartered Accountants |
| Firms Registration No. 009655S |
| Sd/- |
| Girdhari Lai Toshniwal |
| Partner |
| Membership No. 205140 |
| Date: 29th August 2023 |
| Place: Hyderabad |
Annexure - B to the Independent Auditors Report of even date to the Members of M/s
Pharmaids Pharmaceuticals Limited, on the Financial Statements for the Year ended March
31, 2023
Independent Auditors Report on the Internal Financial Controls under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 (‘the Act)
Opinion
1. In conjunction with our Audit of the Financial Statements of M/s Pharmaids
Pharmaceuticals Limited (‘the Company) as at and for the Year ended March 31, 2023,
we have audited the Internal Financial Controls Over Financial Reporting (‘IFCoFR)
of the Company as at that date.
2. In our opinion, the Company has, in all material respects, adequate Internal
Financial Controls over Financial Reporting and such controls were operating effectively
as at March 31, 2023, based on the Internal Control over Financial Reporting criteria
established by the Company, considering the essential components of Internal Control as
stated in the Guidance Note issued by the ICAI.
Managements Responsibility for Internal Financial Controls
3. The Companys Board of Directors is responsible for establishing and maintaining
Internal Financial Controls based on the Internal Control Over Financial Reporting
criteria established by the Company considering the essential components of Internal
Control, as stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (‘the Guidance Note) issued by the Institute of Chartered
Accountants of India(‘ICAI).These responsibilities include the Design,
Implementation and Maintenance of adequate Internal Financial Controls that were operating
effectively for ensuring the orderly and efficient conduct of the Companys Business,
including adherence to the Companys Policies, the Safeguarding of its Assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
Accounting Records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors Responsibility
4. Our responsibility is to express an opinion on the Companys IFCoFR based on our
Audit. We conducted our Audit in accordance with the Standards on Auditing issued by the
ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent
applicable to an Audit of the IFCoFR, and the Guidance Note issued by the ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were
established and maintained and if such controls operated effectively in all material
respects.
5. Our Audit involves performing procedures to obtain Audit Evidence about the adequacy
of the IFCoFR and their operating effectiveness. Our Audit of IFCoFR includes obtaining an
understanding of IFCoFR, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of the Internal Controls based on
the assessed risk. The procedures selected depend on the Auditors judgment, including the
assessment of the risks of material misstatement of the Financial Statements, whether due
to fraud or error.
6. We believe that the Audit Evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion on the Companys IFCoFR.
Meaning of Internal Financial Controls Over Financial Reporting
7. A Companys IFCoFR is a process designed to provide reasonable assurance regarding
the reliability of Financial Reporting and the preparation of Financial Statements for
external purposes in accordance with the Generally Accepted Accounting Principles. A
Companys IFCoFR include those policies and procedures that
(i) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the Assets of the Company;
(ii) Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of the Financial Statements in accordance with the Generally Accepted
Accounting Principles and that receipts and expenditures of the Company are being made
only in accordance with authorizations of Management and Directors of the Company; and
(iii) Provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the Companys Assets that could have a
material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
8. Because of the Inherent Limitations of the IFCoFR, including the possibility of
collusion or improper Management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the IFCoFR
to future periods are subject to the risk that the IFCoFR may become inadequate because of
changes in conditions, or that the degree of compliance with the Policies or Procedures
may deteriorate.
| For PPKG & Co |
| Chartered Accountants |
| Firms Registration No. 009655S |
| Sd/- |
| Girdhari Lal Toshniwal |
| Partner |
| Membership No. 205140 |
| Date: 29th August 2023 |
| Place: Hyderabad |
+91-9892691696
