Chennai Meenakshi Multispeciality Hospital Limited
1. Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ChennaiMeenakshi Multispeciality Hospital Limited ('the Company') which comprise the balancesheet as at 31 March 2015 the statement of profit and loss and the cash flow statementfor the year then ended and a summary' of significant accounting policies and otherexplanatory information.
2. Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 statementsbased on our audit. We have taken into account the provisions' of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell as evaluating the overall presentation of the financial statement We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statement.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 312015;
(b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and
(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
5. Emphasis of Matter
We draw attention to Note No.3.1 the Company has suffered losses from its operationsduring the year. The Net Worth of the Company has been fully eroded as at the BalanceSheet date. The Current Liabilities as at the year end exceeds the Current Assets byRs.87833224/- .This raises serious doubt about the ability of the Company to continueas a going concern.
Our opinion is not qualified in respect of the above matters.
6. Report on Other Legal 8t Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inthe 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 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 and the cash flow statementdealt with by this Report are in agreement with the books of account;
d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) on the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
(f) the matters discussed in "Emphasis of Matter" paragraph above in ouropinion may have an adverse impact on the functioning of the Company.
(g) with respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 itsimpact on the financial position in the financial statements.
ii. The Company does not have any long term Contracts including Derivative Contracts asat the end of the year
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For VARMA & VARMA |
| ||Chartered Accountants |
| ||(FRN.004532S) |
| ||K.M Sukumaran |
|Place: Chennai ||Partner |
|Date: 28.05.2015 ||M. No. 15707 |
Annexure to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2015 we reportthat:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative detailsand situation of fixed assets.
(b) As explained to us the fixed assets have been physically verified by themanagement at the end of the year which in our opinion is reasonable having regard tothe size of the company and the nature of assets and that no material discrepancies havebeen noticed on such verification.
(ii) (a) we are informed that the inventory has been physically verified by themanagement during the year the frequency of which in our opinion is reasonable havingregard 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 ofphysical verification of inventory followed by the management is reasonable and adequatein 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 thediscrepancies noticed on verification wherever material between the physical stocks andbook 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 tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013 (the Act).
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of pharmacy consumables and fixed assetsand for the sale of services. We have not observed any major weakness in the internalcontrol 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 undersection 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 ofour examination of the records of the Company the Company has been fairly regular indepositing the statutory dues including provident fund Employees State Insurance incometax sales tax wealth tax service tax duty of customs excise duty value added taxcess and other material statutory dues have been regularly deposited during the year bythe Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues were in arrears as at31st 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 theCompany examined by us there were no disputed dues that have not been deposited withappropriate authorities as at 31 st March 2015 on account of dispute.
c. According to the information and explanations given to us there were no amountswhich were required to be transferred to the investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesthere under.
(viii) The accumulated losses as at the end of the financial year under audit are morethan 50% of the Net Worth of the company as at the year end. The company has not incurredcash losses during the current financial year and in the immediately preceding financialyear.
(ix) The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(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 onor 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 |