To
The Members of Welcure Drugs & Pharmaceuticals Limited Report on the Audit of the
Financial Statements
Opinion
We have audited the accompanying financial statements of
Welcure Drugs & Pharmaceuticals Limited ("the Company"), which
comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and
Loss(including Other Comprehensive Income), Statement of Changes in Equity and Cash Flow
Statement for the year ended on that date, and notes to the financial statements,
including a summary of significant accounting policies and other explanatory information
(hereinafter referred to as financial statements).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013("the Act") in the manner so required and give a true and
fair 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 the
State of affairs of the Company as at 31st March 2023, its profit(including other
comprehensive income), changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the financial statement 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 Auditor’s 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 a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the 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 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 other
information. The other information comprises the information included in the
Director’s Report, but does not include the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do
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 during the
course of our 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 and those charged with governance for the Financial
Statements
The Company’s Board of Directors is responsible for the matters stated in section
134(5) of the Act, with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance(including other
comprehensive income), changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the accounting standards
specified under section 133 of the Act, read with relevant rules issued thereunder. 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 statement 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
Company’s 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.
Those Board of Directors is responsible for overseeing the Company’s financial
reporting process.
Auditor’s 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 auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs 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 SAs, 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 the override of 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 section 143(3)(i) of the
Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to financial statements 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 management’s 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
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s 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 financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
? Materiality is the magnitude of misstatements in the Standalone Financial Statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We
consider quantitative materiality and qualitative factors in planning the scope of our
audit work and in evaluating the results of our work; and to evaluate the effect of any
identified misstatements in the Standalone Financial Statements.
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
auditor’s 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
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 of the
Companies Act, 2013, we give in the "Annexure A" a statement on the matters
specified 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 best of 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 the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive
income), Statement of Changes in Equity and the Cash Flow Statement dealt with by this
report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards ("Ind AS") specified under section 133 of the Act, read
with relevant rules issued thereunder.
(e) On the basis of the written representations received from the directors as on 31st
March 2023 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 section
164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate report in "Annexure B". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Company’s internal
financial controls with reference to financial statements.
(g) In our opinion and according to the information and explanations given to us, the
managerial remuneration for the year ended March 31,2023 paid by the Company to its
directors, is in accordance with the provisions of section 197 read with Schedule V to the
Act ;
(h) With respect to the other matters to be included in the Auditor’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 to the explanations given to
us:
i. The Company has disclosed the impact of pending litigations on its financial
position 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 for which
there were any material foreseeable losses as at March 31,2023; iii. There were no amounts
which were required to be transferred to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2023.
4. As required by the Companies (Auditor’s Report) Order, 2020 ("the
Order") issued by the Central Government in terms of Section 143 (11) of the Act, we
give I "Annexure B" a statement on the matters specified in paragraph 3 and 4 of
the Order.
Annexure "A" referred to in paragraph 1 of "Report on Other Legal and
Regulatory Requirements" of Independent Auditor’s Report to the members of
Welcure Drugs & Pharmaceuticals Ltd on its financial statements as of and for the
year ended 31st March 2023, we report that:
(i) In our opinion, the Company does not have any property, plant and equipment and
intangible assets, accordingly, provisions of clause 3(i)(a) to (e) of the Order are not
applicable.
(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 not
granted any loans, secured or unsecured, to Companies, firms, limited liability
partnership or other parties covered in the register maintained under section 189 of the
Companies 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 neither
granted any loan nor made any investment or provided guarantee or security during the
year. In view of this, clause 3(iv) of the Companies (Auditor’s
Report) Order, 2016 is not applicable.
(v) According to the information and explanations given to us, the Company has not
accepted deposits as defined in Company (Acceptance of Deposits) Rules, 2014.
In view of this, 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 Central
Government. 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 of
the Company examined by us, in our opinion, the Company is generally regular in depositing
with appropriate authorities undisputed statutory dues including income tax and other
statutory dues applicable to it. According to the information and explanations given to
us, no amount in respect of above was in arrears as at 31.03.2023 for a period of more
than six months from the date they became payable. (b) According to the information and
explanations given to us and the records of the Company examined by us, in our opinion,
there are no statutory dues which have not been deposited on account of any dispute
(viii). According to the information and explanation given to us and the records of the
Company examined by us, in our opinion, the Company has not taken any amount from a
financial institution, Bank or Government nor has issued debenture during the year.
Therefore, clause 3(viii) of the Companies (Auditor’s Report) Order, 2016 is not
applicable.
(ix). According to the information and explanation given to us, the Company has neither
raised money by way of initial public offer or further public offer (including debt
instruments) nor obtained any term loans during the year. Therefore, clause
3(ix) of the Companies (Auditor’s Report) Order, 2016 is not applicable.
(x). According to information and explanation given to us, no fraud by the Company or
any fraud on the Company by its officers or employees has been noticed or reported during
the year.
(xi). According to information and explanation given to us, the Company has not paid or
provided managerial remuneration during the year. Therefore, the provisions of clause
3(xi) of the Companies (Auditor’s Report) Order, 2016 is not applicable.
(xii). In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of
clause 3(xii) of the Companies (Auditor’s Report) Order, 2016 are not applicable to
the Company.
(xiii). According to information and explanation given to us, all transactions with the
related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and the
details have been disclosed in the notes to the financial statements as required by the
applicable accounting standards.
(xiv). According to information and explanation given to us, the Company has not made
any preferential allotment or private placement of shares of fully or partly convertible
debentures during the year. Therefore, the provisions of clause 3(xiv) of the Companies
(Auditor’s Report) Order, 2016 is not applicable.
(xv). According to information and explanation given to us, the Company has not entered
into any non-cash transactions with directors or persons connected with them and hence
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 not
required 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 in the
immediately preceding financial year.
(xviii). There has been no resignation of the statutory auditors during the period and
accordingly this clause is not applicable.
(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 auditor’s knowledge of the Board of
Directors and management plans, whether the auditor is of the opinion that no material
uncertainty exists as on the date of the audit report 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). (a) whether, in respect of other than ongoing projects, the company has
transferred unspent amount to a Fund specified in Schedule VII to te Companies Act within
a period of six months of the expiry of the financial year in compliance with second
proviso to sub-section (5) of Section 135 of the said Act
(b) whether any amount remaining unspent under sub-section (5) of Section 135 of the
Companies Act, pursuant to any ongoing project, has been transferred to special account in
compliance with the provision of sub-section (6) of Section 135 of the said Act;
(xxi). Whether there have been any qualification or adverse remarks by the respective
auditors in the Companies (Auditor’s Report) Order (CARO) reports of the companies
included in the consolidated financial statement, if yes, indicate the details of the
companies and the paragraph numbers of the CARO Report containing the qualifications or
adverse remarks.
Annexure "B" to the independent auditor’s report of even date on the
financial statements of Welcure Drugs & Pharmaceuticals Ltd.
Report on the Internal Financial Controls under Clause (i) of sub section 3 of Section
143 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 statements
of Welcure Drugs & Pharmaceuticals Limited ("the Company") as of 31st
March 2023 in conjunction with our audit of the financial statements of the Company for
the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control with reference to financial statements
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting 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 its business, including adherence to Company’s 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
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the "Guidance Note") and the Standards on
Auditing as specified under section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls with reference to financial statements, both
applicable to an audit of Internal Financial Controls and, both 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
internal financial controls with reference to financial statements were established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls with reference to financial statements and their operating
effectiveness. Our audit of internal financial controls with reference to financial
statements included obtaining an understanding of internal financial controls, assessing
the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence, we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls
with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A Companys internal financial control with reference to financial statements 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 generally accepted accounting principles. A Companys internal financial control with
reference to financial statements includes those policies and procedures that (1) pertain
to the maintenance of records that in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with 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 (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial
statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, 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 internal financial controls with
reference to financial statements to future periods are subject to the risk that the
internal financial control with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls with reference to financial statement and such internal financial
controls were operating effectively as at 31st March 2023, based on the internal financial
controls with reference to financial statements criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued by the
"ICAI".
Auditor’s Report on Quarterly Financial Results and Year to Date Results of the
Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
TO THE BOARD OF DIRECTORS OF
WELCURE DRUGS & PHARMACEUTICALS LIMITED
We have audited the quarterly financial results of WELCURE DRUGS &
PHARMACEUTICALS LIMITED (Name of the company) for the quarter ended 31 march 2023
(date of the quarter end) and the year to date results for the period 01.04.2022 to
31.03.2023, attached herewith, being submitted by the company pursuant to the requirement
of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. These quarterly financial results as well as the year to date financial
results have been prepared on the basis of the interim financial statements, which are the
responsibility of the company’s management. Our responsibility is to express an
opinion on these financial results based on our audit of such interim financial
statements, which have been prepared in accordance with the recognition and measurement
principles laid down in Indian Accounting Standard 34 (Ind AS 34)for Interim Financial
Reporting, prescribed, under Section 133 of the Companies Act, 2013 read with relevant
rules issued there under; or by the Institute of Chartered Accountants of India2, as
applicable and other accounting principles generally accepted in India.
We conducted our audit in accordance with the auditing standards generally accepted in
India. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial results are free of material misstatement(s). An
audit includes examining, on a test basis, evidence supporting the amounts disclosed as
financial results. An audit also includes assessing the accounting principles used and
significant estimates made by management. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion and to the best of our information and according to the explanations
given to us these quarterly financial results as well as the year to date results:
i. are presented in accordance with the requirements of Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and
ii. give a true and fair view of the net profit/ loss and other financial information
for the quarter ended 31.03.2023 (date of the quarter end) as well as the year to date
results for the period from 01.4.2022 to 31.03.2023.
+91-9892691696
