You are here » Home » Companies » Company Overview » Lotus Eye Hospital & Institute Ltd

Lotus Eye Hospital & Institute Ltd.

BSE: 532998 Sector: Health care
NSE: LOTUSEYE ISIN Code: INE947I01017
BSE LIVE 15:40 | 07 Aug 34.70 -0.10
(-0.29%)
OPEN

34.50

HIGH

35.20

LOW

34.50

NSE 15:48 | 07 Aug 34.95 0.35
(1.01%)
OPEN

34.95

HIGH

35.90

LOW

32.95

OPEN 34.50
PREVIOUS CLOSE 34.80
VOLUME 6577
52-Week high 42.65
52-Week low 14.50
P/E 108.44
Mkt Cap.(Rs cr) 72
Buy Price 34.70
Buy Qty 304.00
Sell Price 0.00
Sell Qty 0.00
OPEN 34.50
CLOSE 34.80
VOLUME 6577
52-Week high 42.65
52-Week low 14.50
P/E 108.44
Mkt Cap.(Rs cr) 72
Buy Price 34.70
Buy Qty 304.00
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

(Formerly Lotus Eye Care Hospital 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) ("theCompany") which comprise the Balance Sheet as at March 31 2016the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant 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 Rule 7 of the Companies (Accounts) Rules2014 . This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 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 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 2016 and its profit and its cash flows for the year ended on that date.

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 bestof our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith 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 Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164 (2) ofthe Companies Act 2013;

f. With respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such controls we give our separatereport in 'Annexure B'

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 has disclosed the impact of pending litigations on its financialposition in its financial statements-Refer note 27 Contingent Liabilities to thefinancial statements;

ii) The Company did not have any long-term contracts including derivative contracts.Hence the question of any material foreseeable losses does not arise;

iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For V E K A M AND ASSOCIATES
Chartered Accountants
Firm Registration No: 05256S
Place : Coimbatore (Sd.) CA M.P. Panneerselvan
Date : 30th May 2016 Partner
Membership No. 026129

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 CareHospital Limited) on the financial statements for the year ended 31st March2016.

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 therewere 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 prescribed themaintenance 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 employee's state insurance incometax sales tax customs duty cess and other material statutory dues applicable to it havegenerally been regularly deposited with appropriate authorities however there have beenslight delay in a few cases.

According to the information and explanation given to us no undisputed amounts payablein respect of provident fund employee's state insurance income tax sales tax valueadded tax customs duty service tax cess and any other material statutory dues were inarrears as at 31.03.2016 for a period of more than six months from the date they becamepayable.

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) Amount Paid in Lakhs) Period to which the amount relates Forum where dispute is pending
Kerala Value Added Tax Act VAT Liability 1.89/- 0.57/- 01.04.2012 to 31.03.2013 The Assistant Commissioner (Appeals)
Kerala Value Added Tax Act VAT Liability 5.21/- 1.54/- 01.04.2013 to 31.03.2014 The Assistant 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). In our opinion and according to the information andexplanations given to us the term loans taken by the Company have been applied for thepurposes for which they were raised.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

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 managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe 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 companyhas not required to be registered under section 45-IA of the Reserve Bank of India Act1934.

For VEKAMAND ASSOCIATES
Chartered Accountants
Firm Registration No: 05256S
Place : Coimbatore (Sd.) CA M.P. Panneerselvan
Date : 30th May 2016 Partner
Membership No. 026129

ANNEXURE 'B' TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 (f) under 'Report on Legal and Regulatory Requirements ofour 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 LOTUSEYE HOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited) ('theCompany') as of 31 March 2016 in conjunction with our audit of the financial statements ofthe 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's polices the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 wasestablished 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'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 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 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.

Opinion

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 31 March 2016 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
Place : Coimbatore (Sd.) CA M.P. Panneerselvan
Date : 30th May 2016 Partner
Membership No. 026129