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Aster DM Healthcare Ltd.

BSE: 540975 Sector: Health care
NSE: ASTERDM ISIN Code: INE914M01019
BSE 00:00 | 20 Sep 121.60 1.60
(1.33%)
OPEN

121.90

HIGH

125.15

LOW

120.65

NSE 00:00 | 20 Sep 123.35 3.30
(2.75%)
OPEN

119.25

HIGH

124.90

LOW

119.25

OPEN 121.90
PREVIOUS CLOSE 120.00
VOLUME 3888
52-Week high 175.00
52-Week low 109.70
P/E 135.11
Mkt Cap.(Rs cr) 6,144
Buy Price 121.60
Buy Qty 2200.00
Sell Price 124.25
Sell Qty 50.00
OPEN 121.90
CLOSE 120.00
VOLUME 3888
52-Week high 175.00
52-Week low 109.70
P/E 135.11
Mkt Cap.(Rs cr) 6,144
Buy Price 121.60
Buy Qty 2200.00
Sell Price 124.25
Sell Qty 50.00

Aster DM Healthcare Ltd. (ASTERDM) - Auditors Report

Company auditors report

To the Members of

Aster DM Healthcare Limited

Report on the Audit of the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Aster DMHealthcare Limited ('the Company") which comprise the balance sheet as at 31 March2018 the statement of profit and loss the statement of changes in equity and thestatement of cash flows for the year then ended and a summary of the significantaccounting policies and other explanatory information (herein after referred to as'standalone Ind AS financial statements").

Management's responsibility for the Standalone Ind AS 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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs profit/ loss and other comprehensive income changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under section 133 of theAct.

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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditors' 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 accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 of the state of affairs of theCompany as at 31 March 2018 and its loss and other comprehensive income the changes inequity 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 bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of thesaid 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 cash flow statement and thestatement of changes in equity dealt with by this Report are in agreement with the booksof account;

d) in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act;

e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

f) with respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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:

a. the Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 30 to the standaloneInd AS financial statements;

b. The Company did not have any long-term contracts including derivative contracts forwhich there were material foreseeable losses ; and

c. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

d. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made since they do not pertain to the financial year ended 31 March 2018. Howeveramounts as appearing in the audited Standalone Ind AS financial statements for the periodended 31 March 2017 have been disclosed.

for B S R and Associates
Chartered Accountants
Firm's registration number: 128901W
Rushank Muthreja
Bangalore Partner
21 May 2018 Membership number: 211386

Annexure - A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone Ind AS financial statements for the year ended 31 March 2018. Wereport that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of two years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(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.

(ii) The inventory has been physically verified by the management during the year andno material discrepancies were noticed on such verification. In our opinion the frequencyof such verification is reasonable.

(iii) The Company has granted unsecured loans to four parties covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act)

(a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the parties listed in the register maintained under Section 189of the Act were not prima facie prejudicial to the interest of the Company.

(b) The terms of the loan arrangements do not stipulate any repayment terms ofprinciple/interest and are repayable on demand. As the repayment has not been demanded asat the year end paragraph 3(iii)(b) of the Order is not applicable.

(c) Since the terms of the agreement do not stipulate repayment terms ofprinciple/interest and as no demand has been made there are no overdue amounts for morethan 90 days. Accordingly paragraph 3(iii)(c) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to usbased on the legal opinion obtained by the management the Company has complied with theprovisions of section 185 and 186 of the Act with respect to the loans investments andguarantees made.

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

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 as amended prescribed by theCentral Government under Section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. However we have notmade a detailed examination of such 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 service tax goods and services taxcustoms duty cess and other material statutory dues have generally been regularlydeposited during the year by the Company with the appropriate authorities. As explained tous the Company did not have any dues on account of excise duty.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxservice tax goods and services tax customs duty value added tax cess and othermaterial statutory dues were in arrears as at 31 March 2018 for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofservice tax customs duty goods and services tax sales tax and cess which have not beendeposited with the appropriate authorities on account of any dispute. However accordingto information and explanations given to us the following dues of income tax and valueadded tax have not been deposited by the Company on account of disputes:

Name of the statute Nature of dues Nature of dues Period to which the amount relates Forum where dispute is pending
Income tax Act 1961 Income tax and interest 172186780 FY 2013-14 Commissioner of Income Tax Appeals
Income tax Act 1961 Income tax and interest 28581158 FY 2014-15 Commissioner of Income Tax Appeals
Kerala Value Added Tax 2003 Sales tax and interest 12803286 FY 2014-15 Deputy Commissioner (Appeals)

(viii) In our opinion and according to the information and explanations give to us theCompany does not have defaults existing as at the balance sheet date in repayment ofborrowings to banks. The Company did not have any borrowings during the year by way ofdebentures loans from financial institutions or loan from the Government.

(ix) In our opinion and according to the information and explanations given to usmoney raised by way of initial public offer and the term loans have been applied by theCompany during the year for the purposes for which they were raised other than temporarydeployment pending application of proceeds.

(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 course of our audit.

(xi) According to the information and explanations give 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. Thus paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Thus paragraph 3(xiv) ofthe 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. Thus paragraph 3(xv) of theOrder is not applicable.

(xvi) According to the information and explanation given to us and in our opinion theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

for B S R and Associates
Chartered Accountants
Firm's registration number: 128901W
Rushank Muthreja
Bangalore Partner
21 May 2018 Membership number: 211386

Annexure - B to the Independent Auditors' 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 with reference to financial statementsof Aster DM Healthcare Limited ('the Company') as of 31 March 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial controls with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the 'Guidance Note") and the Standards on Auditing issued bythe ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the ICAI. 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 controlswith reference to financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the Ind AS financial statementswhether 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 withreference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrols with reference to financial statements includes those policies and proceduresthat (1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofInd 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 Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an internal financialcontrols with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at 31 March 2018 based onthe internal financial controls with reference to financial statements 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 ICAI.

for B S R and Associates
Chartered Accountants
Firm's registration number: 128901W
Rushank Muthreja
Bangalore Partner
21 May 2018 Membership number: 211386