| We have audited the accompanying standalone financial statements of
Chennai Meenakshi Multispeciality Hospital Limited ('the Company'),
which comprise the balance sheet as at 31 March 2015, the statement of
profit and loss and the cash flow statement for the year then ended,
and a summary of significant accounting policies and other explanatory
information.
2. Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance 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
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions' of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. 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. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statement We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statement.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Emphasis of Matter
We draw attention to Note No.3.1 the Company has suffered losses from
its operations during the year. The Net Worth of the Company has been
fully eroded as at the Balance Sheet date. The Current Liabilities as
at the year end exceeds the Current Assets by Rs.8,78,33,224/- .This
raises serious doubt about the ability of the Company to continue as a
going concern. Our opinion is not qualified in respect of the above
matters.
6. Report on Other Legal & Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order, 2015 ("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
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. 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
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 and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March
2015from being appointed as a director in terms of Section 164 (2)of
The Act; and
(f) the matters discussed in "Emphasis of Matter" paragraph above,
In our opinion, may have an adverse impact on the functioning of
The Company.
(g) 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, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has no material pending litigations for its disclosure
to show its impact on the financial position in the financial
statements.
ii. The Company does not have any long term Contracts including
Derivative Contracts as at the end of the year
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified by
the management at the end of the year, which, in our opinion is
reasonable having regard to the size of the company and the nature of
assets and that no material discrepancies have been noticed on such
verification.
(ii) (a) we are informed that the inventory has been physically
verified by the management during the year, the frequency of which, in
our opinion, is reasonable, having regard to the size of the Company
and the nature of its business;
(b) In our opinion and according to the explanations given to us, the
procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business;
(c) The company is maintaining proper records of inventory and as
informed to us, the discrepancies noticed on verification wherever
material, between the physical stocks and book records have been
properly dealt with in the books of account;.
(iii) (a) The Company had not granted any loans or advances , secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013 ('the
Act').
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of pharmacy, consumables, and fixed assets and for the sale of
services. We have not observed any major weakness in the internal
control system during the course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
(vii) a. According to the information and explanations given to us, and
on the basis of our examination of the records of the Company, the
Company has been fairly regular in depositing the statutory dues
including provident fund, Employees State Insurance, income tax, sales
tax, wealth tax, service tax, duty of customs, excise duty, value added
tax, cess and other material statutory dues have been regularly
deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31st
March, 2015 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, there were no disputed dues that
have not been deposited with appropriate authorities as at 31 st March,
2015, on account of dispute.
c. According to the information and explanations given to us there were
no amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules there
under.
(viii) The accumulated losses as at the end of the financial year under
audit are more than 50% of the Net Worth of the company as at the year
end. The company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(ix) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xi) The Company has not availed any term loan during the Year.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For Varma & Varma
Chartered Accountants
(FRN.004532S)
K.M Sukumaran
Place : Chennai Partner
Date : 28.05.2015 M. No. 15707 |