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Lotus Eye Hospital & Institute Ltd.

BSE: 532998 Sector: Health care
NSE: LOTUSEYE ISIN Code: INE947I01017
BSE LIVE 15:40 | 21 Sep 28.85 -1.15
(-3.83%)
OPEN

29.65

HIGH

31.00

LOW

28.50

NSE 15:30 | 21 Sep 29.85 -0.10
(-0.33%)
OPEN

29.65

HIGH

31.40

LOW

28.50

OPEN 29.65
PREVIOUS CLOSE 30.00
VOLUME 12522
52-Week high 42.65
52-Week low 17.00
P/E 90.16
Mkt Cap.(Rs cr) 60
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.65
CLOSE 30.00
VOLUME 12522
52-Week high 42.65
52-Week low 17.00
P/E 90.16
Mkt Cap.(Rs cr) 60
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lotus Eye Hospital & Institute Ltd. (LOTUSEYE) - Auditors Report

Company auditors report

To the Members of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of LOTUS EYE HOSPITAL ANDINSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited) ("the Company")which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss andthe Cash Flow Statement for the year then ended and a summary of significant accountingpolicies 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 Rule 7 of the Companies (Accounts) Rules2014 ("the Act"). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

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 thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the company's directors as well as evaluating the overall presentationof 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.

Opinion

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 profit and its cash flows for the year ended on that date.

Emphasis of Matters:

We draw attention to the following matters in the Notes to the financial statements.

Note No.1 (B) (d) to the financial statements which describes the impact of change inthe method of valuation of inventory of optical and lens.

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 section 143 (11) of the Act we givein the Annexure "A" a statement on the matters specified in Paragraphs 3 and 4of the Order to the extent applicable

2. As required by section 143 (3) of the Act we report to the extent applicable that:a. We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purpose of our audit; b. In our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books; c. The Balance Sheet Statement of Profit and Lossand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount; d. In our opinion the aforesaid Financial Statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. e . On the basis of written representations received from thedirectors as on March 31 2017 and taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2017 from being appointed as a director interms of section 164 (2) of the Companies Act 2013; and f. With respect to adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls we give our separate report in ‘Annexure B' and g.With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations as at March 31 2017 on its financial positionin its financial statements

- Refer to note 28 to the financial statements. ii. The Company did not have anylong-term contracts including derivative contracts. iii. There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.iv. The Company has provided requisite disclosures in the financial statements as regardsits holding and dealings in Specified Bank Notes as defined in the Notification S.O3407(E) dated the 8th November 2016 of the Ministry of Finance during theperiod from 8th November 2016 to 30th December 2016. Based on auditprocedures performed and the representations provided to us by the management we reportthat the disclosures are in accordance with the books of account maintained by thecompany.

- Refer to note 29 to the financial statements.

For V E K A M AND ASSOCIATES

Chartered Accountants

Firm Registration No: 05256S

(Sd.) CA M.P. Panneerselvan

Partner

Membership No. 026129

Place : Coimbatore

Date : 27th May 2017

ANNEXURE 'A' TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" in the Independent Auditors' report of even date to themembers of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care HospitalLimited) on the financial statements for the year ended 31st March 2017.

(i) a) The company is in the process of updating its records showing full particularsincluding quantitative details and situation of fixed assets. However an item wise list offixed assets containing the particulars for calculation of depreciation is maintained.

b) All the fixed assets have not been physically verified by the management during theyear but there is a phased programme of verification based on the item wise listmaintained for calculation of depreciation which in our opinion needs to be strengthenedhaving regard to the size of the company and nature of its assets. As informed nomaterial discrepancies were noticed on such verification. However in absence of completeinformation in fixed asset register as stated in clause (a) above we are unable tocomment on the discrepancies if any.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company. (except leasehold land & building's)

(ii) As explained to us the inventories except goods in transit has been physicallyverified by the Management during the year and there were no material discrepancies werenoticed on such verification between the physical stock and the book records. In ouropinion the frequency of such verification is reasonable.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered in theregister maintained under Section 189 of the Companies Act 2013. Accordingly theprovisions stated in paragraph 3 (iii) (a) and 3 (iii) (b) of the Order are notapplicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans made investments provided guarantees or security andhence reporting under clause (iv) of the CARO 2016 Order is not applicable.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Sections 73to 76 of the Act and the rules framed there under.

(vi) The Company informed us that the Central Government of India has not prescribedthe maintenance of cost records under section 148(1) of the Companies Act for any of theservices rendered by the Company.

(vii) a) According to the information and explanations and records provided to us theundisputed statutory dues including provident fund income tax sales tax customs dutycess and other material statutory dues applicable to it have generally been regularlydeposited with appropriate authorities however there have been slight delay in a fewcases.

According to the information and explanation given to us no undisputed amounts payablein respect of provident fund income tax sales tax value added tax customs dutyservice tax cess and any other material statutory dues were in arrears as at 31.03.2017for a period of more than six months from the date they became payable except TDS demandsof procedural nature which are under rectification.

b) According to the information and explanations given to us the dues outstanding withrespect to income tax sales tax service tax value added tax customs duty exciseduty cess and other material statutory dues applicable to it on account of any disputeare as follows:

Nature of statute Nature of Dues Amount ( in Lakhs) Period to which the amount relates Forum where dispute is pending
Kerala Value VAT Liability 1.89/- 01.04.2012 to The Assistant
Added Tax Act 31.03.2013 Commissioner (Appeals)
Kerala Value VAT Liability 5.16/- 01.04.2013 to An Appeal to the
Added Tax Act 31.03.2014 VAT Appellate Tribunal is under process
Kerala Value VAT Liability 9.71/- 01.04.2011 to High Court
Added Tax Act 31.03.2012 Kerala
Kerala Value VAT Liability 11.90/- 01.04.2011 to High Court
Added Tax Act 31.03.2012 Kerala
Kerala Value VAT Liability 2.73/- 01.04.2010 to The Assistant
Added Tax Act 31.03.2011 Commissioner (Appeals)

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institutions(s) bank(s) or debentureholder(s). The company did not have any outstanding dues to any financial institutionsgovernment or debenture holders during the year.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause (ix) ofthe CARO 2016 order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 order is not applicable.

(xiii) Based on the information and explanations given to us by the Companytransactions with related parties are in compliance with sections 177 and 188 of CompaniesAct 2013 where applicable and the details of such transactions have been disclosed in theFinancial Statements with applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination and records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) Based on the information and explanations given to us by the Company the companyhas not entered into any non-cash transactions with directors or persons connected withhim and hence provisions of section 192 of the companies Act 2013 are not applicable.

(xvi) Based on the information and explanations given to us by the Company the companyis not required to be registered under section 45-IA of the Reserve Bank of IndiaAct1934..

For V E K A M AND ASSOCIATES

Chartered Accountants

Firm Registration No: 05256S

(Sd.) CA M.P. Panneerselvan

Partner

Membership No. 026129

Place : Coimbatore

Date : 27th May 2017

ANNEXURE 'B' TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 (f) under ‘Report on Legal and Regulatory Requirementsof our report of even date)

Report on the Internal financial controls Over Financial Reporting under clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of LOTUS EYEHOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited) (‘theCompany') as of 31st March 2017 in conjunction with our audit of the financialstatements 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 internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's polices the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors Responsibility

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") issued by ICAI and standards on Auditing prescribed undersection 143(10) of the companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wereestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 anddisposition 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 authorizations of themanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany 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 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.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 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 V E K A M AND ASSOCIATES

Chartered Accountants

Firm Registration No: 05256S

(Sd.) CA M.P. Panneerselvan

Partner

Membership No. 026129

Place : Coimbatore

Date : 27th May 2017