To the Members of KMS MEDISURGI LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of KMS Medisurgi Limited("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summaryof the significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE 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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing an opinionon whether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profits and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order 2017 issued by the CentralGovernment of India in terms of Section (11) of section 143 of the Act (hereinafterreferred to as the "Order") and on basis of such checks of the books and recordsof the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure A a statement on the matters specifiedin the paragraph 3 and 4 of the Order to the extent applicable.
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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant rule issued thereunder; e) On the basis of the written representations received from the directors as on31st March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164(2) of the Act; and
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we refer to ourseparate Report in Annexure B and
g) With respect to the other matters to be included in the Auditor's 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 does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2017 to 30 December 2017 and these are in accordance with the books of accountsmaintained by the company Refer Note No. 29 to the financial statements.
For Mayur Mahesh Shah & Co Chartered Accountants Firm Registration No.: 117604W
(Mayur Shah) Proprietor Membership No. : 103146
Place : Mumbai
Date : 5th September 2017
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT.
Annexure A to the Independent Auditors; Report of even date to the members of theCompany on the Financial Statements for the year ended 31st March 2017
On the basis of sample checks and according to the information and explanations givento us during the course of the audit we report that;
i a The company has generally maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets.
i b The company has regular programmed of physical verification of its fixed assets bywhich all fixed assets are physically verified periodically by the management. In ouropinion periodicity of physical verification is reasonable having regard to the size ofthe company and the nature of its business. According to the information and explanationgiven to us no material discrepancies were noticed on such verification . i c Accordingto the information and explanation given to us and on the basis of our examination of therecords of the company the title deeds of immovable properties are held in the name ofthe company
ii. The inventory has been verified during the year by the management. Thediscrepancies noted on physical verification of inventory as compared to book records werenot material.
iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintain undersection 189 of the Companies Act 2013. Accordingly provisions of sub-clause iii (a) (b)and (c) are not applicable.
iv In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.
v The Company has not accepted any deposits from public within the meaning of Section73 to 76 of the Act and rules framed there under to the extent notified
vi The provisions of clause 4 (vi) of the Companies (Auditors Report) Order 2015 arenot applicable to the Company.
vii a The Company is generally regular in depositing the undisputed statutory duesincluding Provident Fund Employee's State Insurance Income tax Sales-tax ServiceTax duty of Custom duty of Excise value added tax Cess and any other statutory duesto appropriate authorities.
vii b According to the information and explanations given to us there were no dues inrespect of income tax or sales tax or duty of custom or duty of excise or value added taxwhich have not been deposited on account of any dispute viii According to information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto the financial institution or banks or government as at Balance Sheet date.
ix The Company has not raised any money by way of initial public offer further publicoffer (including debt instruments). The company has not taken any term loans.
x According to the information and explanation given to us no fraud on or by theCompany has been noticed or reported during the year.
xi The Company has not paid/ provided for managerial remuneration in accordance withthe requisite approvals mandated by the provision of Section 197 read with Schedule V tothe Act.
xii In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable.
xiii According to the information and explanation given to us all the transactionswith related parties are in compliance with the provisions of Section 177 and 188 of theAct where applicable. The details of related party transactions have been disclosed inthe financial statements as required under Accounting Standard (AS) 18 Related PartyDisclosures specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
xiv The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
xv The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3 (xv) of the Order arenot applicable to the Company.
xvi The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3 (xvi) of the Order arenot applicable to the Company.
FOR MAYUR MAHESH SHAH & CO Chartered Accountants Firms Registration No : 117604W
(Mayur Shah) Proprietor
Membership No : 103146
Place : Mumbai
Date : 5th September 2017
Annexure B to the Independent Auditors' Report
Annexure B to the Independent Auditors; Report of even date to the members of theCompany on the Standalone Financial Statements for the year ended 31st March 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of KMSMEDISURGI PRIVATE LIMITED. ("the Company") as of March 31 2017 in conjunctionwith 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 internalfinancial controls based on the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued byThe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing specified under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
FOR MAYUR MAHESH SHAH & CO Chartered Accountants Firms Registration No : 117604W
(Mayur Shah) Proprietor
Membership No : 103146
Place : Mumbai : Date : 5th September 2017