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Apollo Hospitals Enterprise Ltd.

BSE: 508869 Sector: Health care
NSE: APOLLOHOSP ISIN Code: INE437A01024
BSE LIVE 15:49 | 14 Dec 1205.15 18.65
(1.57%)
OPEN

1192.85

HIGH

1208.00

LOW

1173.15

NSE 15:53 | 14 Dec 1206.90 23.30
(1.97%)
OPEN

1183.95

HIGH

1210.00

LOW

1183.95

OPEN 1192.85
PREVIOUS CLOSE 1186.50
VOLUME 12507
52-Week high 1356.75
52-Week low 959.00
P/E 73.84
Mkt Cap.(Rs cr) 16,766
Buy Price 1205.15
Buy Qty 120.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1192.85
CLOSE 1186.50
VOLUME 12507
52-Week high 1356.75
52-Week low 959.00
P/E 73.84
Mkt Cap.(Rs cr) 16,766
Buy Price 1205.15
Buy Qty 120.00
Sell Price 0.00
Sell Qty 0.00

Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) - Auditors Report

Company auditors report

To the Members of apollo Hospitals Enterprise Limited Chen-nai

report on the Standalone Ind aS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof Apollo Hospitals Enterprise Limited ("the Company") which comprise theBalance Sheet as at 31st March 2017 and the Statement of Profit and Loss (includingOther Comprehensive Income) the Cash Flow Statement and the Statement of Changes inEquity for the year then ended and a summary of the significant accounting policies andother explanatory information (herein after referred to as "Standalone Ind ASfinancial Statements")

Management' s responsibility for the Standalone Ind aS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone IND AS financial statements that give a true and fairview of the state of affairs (financial position) profit (financial performance includingother comprehensive income) cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (IND AS) prescribed under section 133 of the Act read with relevantrules issued thereunder.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; the selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone IND AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

auditor' s responsibility

Our responsibility is to express an opinion on these standalone IND ASfinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder.Weconducted our audit of the standalone Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone IND AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone IND AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone IND AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the

Company's preparation of the standalone IND AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of thestandalone IND AS financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone IND AS financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone IND AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the INDAS

a) of the state of affairs (financial position) of the Company as at31st March 2017

b) its profit (financial performance including other comprehensiveincome) for the year ended 31st March 2017.

c) its cash flows and the changes in equity for the year ended on thatdate.

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 section143(11) of the Act we give in "Annexure A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act 2013 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 have beenkept 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 Cash Flow Statement and the statement of changes in equity dealtwith by this report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone IND AS Financial Statementscomply with the Indian Accounting Standards (Ind As) specified under section 133 of theAct read with rule 7 of the comapnies (Accounts) Rules 2014

e) On the basis of written representations received from the Directorsas at 31st March 2017 taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2017 from being appointed as a director in terms ofSec.164(2) of the Act.

f) With respect to the adequacy of internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B." g) With respect to the other matters tobe 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 andaccording to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS Financial Statements - Refer Note 38 to theStandalone Ind AS Financial Statements.

(ii) The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.

(iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company; and

(iv) The company had provided requisite disclosures in its standaloneInd AS financial statements as to holdings as well as dealings in Specified Bank Notesduring the period from 8th November 2016 to 30th December 2016. Based on auditprocedures and relying on the management representation we report that the disclosuresare in accordance with the books of accounts maintained by the company and as produced tous by the management – Refer Note 43 to the Standalone Ind AS financial Statements.

For S Viswanathan LLP
Chartered Accountants
FRN: 004770S/S200025
V C Krishnan
Place: Chennai Partner
Date : 30th May 2017 Membership No: 022167

annexure "a" to Independent auditors' report

The Annexure referred to in paragraph 1 of our report of even date tothe members of Apollo Hospitals Enterprise Limited. On the accounts of the Company for theyear ended 31 March 2017.

i. On the basis of such checks as we considered appropriate andaccording to the information and explanations given to us during the course of our auditwe report that:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Fixed assets have been physically verified by the management atreasonable intervals; according to the information and explanation given to us nomaterial discrepancies were found on such verification.

(c) The title deeds of Immovable properties owned by the Company areheld in the name of the Company.

The title deeds of immovable property in the form of buildingconstructed on leasehold land are held in the name of the Company. Also refer Note 5 innotes to accounts.

ii. Stock of medicines stores spares consumables chemicals and labmaterials have been physically verified at reasonable intervals by the management.According to the information and explanations given to us no material discrepancies werenoticed.

iii. According to the information and explanations given to us and onthe basis of our examination of the books of accounts the Company has not granted anyloans secured or unsecured to companies firms Limited Liability Partnerships or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Consequently the provisions of clauses 3(a) 3(b) and 3(c) are not applicable.

iv. The Company has not provided any loan or investments or guaranteesor Securities which fall under the purview of section 185 and section 186 of the Act.

v. In our opinion and according to the information and explanationsgiven to us the Company has complied with the directives issued by the Reserve Bank ofIndia and provisions of Section 73 to 76 or any other relevant provisions of the Act andCompanies (Acceptance of Deposits) amended Rules 2015 with regard to deposits acceptedfrom Public including unclaimed deposits matured in earlier years that are outstandingduring the year. To the best of our knowledge and according to the information andexplanations given to us no order has been passed by the Company Law Board NationalCompany Law Tribunal or Reserve Bank of India or any other Court or any other Tribunal onthe Company in respect of the aforesaid deposits.

vi. We have broadly reviewed the records maintained by the Companypursuant to the rules prescribed by the Central Government for maintenance of cost recordsunder section 1 of section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records

vii. (a) According to the information and explanations given to us theCompany has been regular in depositing with the appropriate authorities undisputedstatutory dues including Provident Fund Employees' state insurance Income-taxCustoms duty Service Tax. Cess. and other statutory dues applicable to it. To the best ofour knowledge and according to the information and explanations given to us there are noarrears of outstanding statutory dues as at March 31 2017 for a period of more than sixmonths from the date they became payable. To the best of our knowledge and belief andaccording to the information and explanations given to us excise duty is not applicableto this Company.

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no dues disputed with respect to cess.The particulars of sales tax service tax custom duty and income tax which have not beendeposited on account of any dispute are as follows:

Name of the Statute Nature of the Dues Amount (` in million as on 31.03.2017) Period to which the amount relates Forum where dispute is pending
Customs Act 1962 Custom Duty 99.70 1996 1997 Assistant Collector of Customs (Chennai Hyderabad)
Service Tax Service Tax 32.45 2007-12 Appeal with CESTAT New
2012-13 Delhi
2013-14
Value Added Tax Act 2004 Value Added Tax 24.93 2008-09 & 2012-13 Deputy Commissioner of Commercial Tax (Enforcement) Chennai
Income tax Act 1961 Income Tax 136.76 AY: 2000-01 Honorable Supreme Court

viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of any dues to financialinstitutions banks governments or debenture holders. ix. In our opinion and according tothe information and explanations given to us the Company has not raised any money by wayof initial public offer or further public offer (including debt instruments) and TermLoans during the year. Accordingly the provisions of clause 3 (ix) of the order is notapplicable. x. According to the information and explanations given to us no material fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the course our audit. xi. The Managerial remuneration paid by the Company is as persection 197read with Schedule V of the Act. xii. The Company is not a Nidhi Company andhence clause3 (xii) is not applicable. xiii. According to the information and explanationsgiven to us the transactions with related parties are in compliance with section 177 andsection 188 of the Act where applicable and the details have been disclosed in theStandalone Ind AS financial statements as required under the relevant Indian AccountingStandard. xiv. The Company has not made any preferential allotment or private placement ofshares or fully or partially convertible debentures during the year under review.Accordingly clause 3 (xiv) is not applicable. xv. According to the information andexplanations the Company has not entered into non-cash transactions with the Directors orpersons connected with him. Accordingly clause 3 (xv) is not applicable. xvi. The Companyis not engaged in non-banking financial services therefore clause 3 (xvi) is notapplicable

For S Viswanathan LLP
Chartered Accountants
FRN: 004770S/S200025
V C Krishnan
Place: Chennai Partner
Date : 30th May 2017 Membership No: 022167

annexure - "B" to the auditors' report

Report on the Internal Financial Controls under Clause (i) of Section143(3) of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Apollo Hospitals Enterprise Limited ("the Company") as of March312017 in conjunction with our audit of the standalone Ind AS 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 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(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

auditors' responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit 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 and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone IND AS Financial Statements whether dueto 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 internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial reporting

A company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures 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 asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and Directors of theCompany; and

3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financialreporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as March 31 2017 based onthe internal control over financial reporting 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 Institute ofChartered Accountants of India.

For S Viswanathan LLP
Chartered Accountants
FRN: 004770S/S200025
V C Krishnan
Place: Chennai Partner
Date : 30th May 2017 Membership No: 022167