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Narayana Hrudayalaya Ltd.

BSE: 539551 Sector: Health care
NSE: NH ISIN Code: INE410P01011
BSE LIVE 15:40 | 13 Dec 289.70 -3.35
(-1.14%)
OPEN

293.80

HIGH

294.90

LOW

288.00

NSE 15:42 | 13 Dec 289.05 -3.00
(-1.03%)
OPEN

293.00

HIGH

295.80

LOW

288.50

OPEN 293.80
PREVIOUS CLOSE 293.05
VOLUME 3982
52-Week high 349.00
52-Week low 280.70
P/E 69.64
Mkt Cap.(Rs cr) 5,920
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 293.80
CLOSE 293.05
VOLUME 3982
52-Week high 349.00
52-Week low 280.70
P/E 69.64
Mkt Cap.(Rs cr) 5,920
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Narayana Hrudayalaya Ltd. (NH) - Auditors Report

Company auditors report

To

The Members of

Narayana Hrudayalaya Limited

Report on the Standalone Indian Accounting Standards (‘Ind AS') FinancialStatements

We have audited the accompanying Standalone Ind AS financial statements of NarayanaHrudayalaya Limited (‘the Company') which comprise the Balance Sheet as at March 312017 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash Flows and the Statement of Changes in Equity for the year then endedpolicies and and a summary of the significant other explanatory information (herein afterreferred to as “Standalone Ind AS financial statements”).

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors sufficient and appropriate to provide is responsiblefor the matters stated in Section 134(5) of the Companies Act 2013 (“the Act”)with respect to the preparation of these Standalone Ind AS financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including Ind AS prescribed underSection 133 of the Act read with relevant rules issued thereunder.

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 completeness of effectively the accounting records relevantto the preparation and presentation of the Standalone Ind AS financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit.

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 of the Standalone Ind AS financial statements in accordance withthe 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 Standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the Standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is a basis for our audit opinion onthe Standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at March 31 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear 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 Section 143(11) of the Act we give in“Annexure A” a statement on the matters specified in the paragraphs 3 and 4 ofthe Order.

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 the Statement of Cash Flowsand the Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account;

(d) in our opinion the aforesaid Standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with relevantrules issued thereunder;

(e) on the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls 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 has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS financial statements

Refer Note 27 to the Standalone Ind AS financial statements;

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 during the year which were required to be transferred to theInvestor Education and Protection Fund by the Company; and

iv. the Company has provided requisite disclosures in its Standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016. However as stated in Note 48 to theStandalone Ind AS financial statements amount aggregating to Rs. 0.06 lakhs as representedto us by the Management have been utilized for other than permitted transactions andreceived amount aggregating Rs. 57.24 lakhs from transactions which are not permitted.

for B S R & Co. LLP
Chartered Accountants
Firm's registration number: 101248W/W-100022 Amit Somani
Place: Bengaluru Partner
Date: May 29 2017 Membership number: 060154

Annexure - A to the Independent Auditor's Report

The Annexure referred to in paragraph 1 in ‘Report on Other Legal and RegulatoryRequirements' of the Independent Auditor's Report to the members of Narayana HrudayalayaLimited (“the Company”) on the standalone Ind AS financial statements for theyear ended March 31 2017 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The Company has a regular programme of physical verification of its property plantand equipment by which all property plant and equipment are verified in a phased mannerover a period of three years. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Inaccordance with this programme certain property plant and equipment were verified duringthe year and no material discrepancies were noticed on such verification.

(c) According to the information and explanations give 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.

(ii) The inventory has been physically verified by the Management during the year. Inour opinion the frequency of such verification is reasonable and no materialdiscrepancies were noticed on such verification

(iii) The Company in the previous years and the current year has granted unsecuredloans to companies covered in the register maintained under section 189 of the CompaniesAct 2013 (‘the Act'). However no loan secured or unsecured has been granted bythe Company to firms or other parties covered in the register maintained under section 189of the Act. Further there are no Limited Liability Partnerships covered in the registermaintained under section 189 of the Act.

(a) The terms and conditions on which the loan has been granted during the current yearis not prejudicial to the interest of the Company.

(b) The loans granted are repayable on demand and the Company has not sought repaymentof these loans during the current year. Accordingly paragraph 3(iii)(b) of the Order inrespect of the receipt of the principal amounts of such loans is not applicable to theCompany. The interest on such loans has been received regularly during the year.

(c) There are no overdue amounts in relation to the principal and the interest on suchloans.

(iv) According to the information and explanations given to us the Company hascomplied with the provisions of section 185 and section 186 of the Act in respect ofloans investments guarantees and security made.

(v) According to information and explanations given to us the Company has not acceptedany deposits. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government of India for maintenance of cost recordsunder sub-section (1) of section 148 of the Act in respect of services rendered and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the accounts and records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Income-Tax Sales Tax Value Added Tax Duty of Customs Service Tax and othermaterial statutory dues have generally been regularly deposited during the year with theappropriate authorities. As explained to us the Company did not have any dues on accountof Duty of Excise.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income Tax Sales TaxValue Added Tax Duty of Customs Service Tax and other material statutory dues were inarrears as at March 31 2017 for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us there are no dues ofSales Tax Value Added Tax Service Tax and Duty of Customs which have not been depositedwith the appropriate authorities on account of any dispute. The following dues of Incometax have not been deposited by the Company on account of disputes.

Name of the statute Nature of dues Amount disputed Period to which the amount relates Forum where dispute is pending
(Rs. in lakhs)
Income Tax Act 1961 Income Tax 21.72* AY 2009-10 High Court of Karnataka

* The amounts disclosed above is net of Rs. 100 lakhs paid under protest.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany did not have any dues to debenture holders and loans outstanding from financialinstitutions and Government during the year.

(ix) According to the information and explanations given to us and based on ourexamination of the records of the Company the monies raised by the Company by way of termloan during the year was not utilised till the year end. No monies were raised during theyear by the Company by way of initial public offer or further public offer (includingdebt instruments).

(x) According to the information and explanations given to us no fraud by the Companyor any material fraud on the Company by its officers or employees has been noticed orreported during the 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) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

for B S R & Co. LLP
Firm's registration number: 101248W/W- 100022 Chartered Accountants
Amit Somani
Place: Bengaluru Partner
Date: May 29 2017 Membership number: 060154

Annexure - B to the Independent Auditor's Report

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 NarayanaHrudayalaya Limited (“the Company”) sufficientandappropriatetoprovide as ofMarch 31 2017 in conjunction with our audit of the Standalone Ind AS financial statementsof 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 Reporting(“Guidance Note”) issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal for ensuring financial controls that were operating effectively theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's 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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act 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 financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and asatMarch31 testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the Standalone Ind AS financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is a basis for our audit opinion onthe Company's internal financial controls system over 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 Standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the StandaloneInd AS 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 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

for B S R & Co. LLP
Chartered Accountants
Firm's registration number: 101248W/W-100022 Amit Somani
Place: Bengaluru Partner
Date: May 29 2017 Membership number: 060154