To the Members of Cian Healthcare Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying Standalone financial results of Cian HealthcareLimited (hereinafter referred to as the "Company") which comprise the StandaloneBalance sheet as at 31s1 March 2021 the Standalone Statement of Profit andLoss the Standalone Statement of Changes in Equity the Standalone Statement of cashflows for the year ended on that and notes to the financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "the Standalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with Accounting Standards prescribed under section 133 of theAct read with the rule 7 of the Companies (Account) Rules 2014 and other accountingprinciples generally accepted in India of the Standalone state of affairs (financialposition) of the company as at March 31 2021 its profit changes in equity and cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined that there are no key audit matters to communicate in our report.
Information other than the financial statements and auditors' report thereon
The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the AnnualReport namely Financial Performance Director's Report including Annexures to theDirector's Report etc.; but does not include the Standalone financial statements and ourauditor's report thereon.
These reports are expected to be made available to us after the date of this auditor'sreport. Our opinion on the Standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report the fact. We havenothing to report in this regard.
Management's Responsibility and those charged with Governance for the FinancialStatements
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 financial statements that give a true and fair view of the Standalonefinancial position Standalone financial performance change in equity and Standalone cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
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.
Company's Board of Directors is also responsible for overseeing the company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.
As part of an audit in accordance with SAs We exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the Standalone Financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud of higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
b. Obtain an undertaking of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(l)(i) of theAct We are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
d. Conclude on the appropriateness of Management's use of going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events and conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ouraudit report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
e. Evaluate the overall presentation structure and content of the Standalone financialstatements including the disclosures and whether the Standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of the misstatements in the Standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of the users of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and evaluating the results of our work and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure B a statement on the matters specifiedin paragraphs 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 of the aforesaidStandalone financial statements.
(b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Standalone financial statements have been kept so far as it appears fromour examination of those books.
(c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss changein equity and the Standalone Cash Flow Statement dealt with by this Report are inagreement with the books of account.
(d) In our opinion the aforesaid Standalone financial statements comply with theaccounting standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the Directors as on 31jlMarch 2021 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2021 from being appointed as director in termsof Section 164 (2) of the Companies Act 2013.
(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".
(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 Standalonefinancial position in its Standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts assuch the question of commenting on any material foreseeable losses thereon doesn't arise.
iii. There has not been an occasion in case of the company during the year under reportto transfer any sums to the Investor Education and Protection Fund.
|Partner FRN: 008007C |
Membership No. 164172
Place: - Pune
Date: - 30.06.2021
With reference to the ''Annexure-A" referred to in the Independent Auditors'Report to the Members of Cian Healthcare Limited ('the Company') on the Standalonefinancial statements for the year ended 31st March 2021 we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us the Company has a regular programme of physical verification ofIts fixed assets by which fixed assets are verified in a phased manner. In accordance withthis programme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical 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) As explained to us physical verification of inventories apart from goods intransit and inventories lying with outside parties has been conducted by the managementduring the year and no material discrepancies were noticed on such verification betweenthe physical stock and book records. In our opinion the frequency of such verification isreasonable. Inventories lying with outside parties have been substantially confirmed bythem as at the year-end and no material discrepancies were noticed in respect of suchconfirmations.
(iii) The Company has not given unsecured loan to its associate concern covered in theregister maintained under section 189 of the Companies Act 2013 in the normal course ofbusiness.
(iv) According to the information and explanations given to us the company has notgiven any loans or advances to entities as mentioned under section 185 and 186 of theCompanies Act except trade advances as given in Related Party Transaction disclosure ofNote 30 of financial statement.
(v) According to the information and explanations given to us the Company has notaccepted deposits from the public during the year. Therefore the provisions of clause3(v) of the Order are not applicable to the Company.
(vi) According to the information and explanations given to us and in our opinion thecost records pursuant to the Companies (Cost Records and Audit) Rules 2014 as amendedand prescribed by the Central Government under subsection (1) of Section 148 of theCompanies Act 2013 needs to be maintained by the company as per the recommendation givenby the Cost Auditor.
(vii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Income-tax sales tax valueadded tax duty of customs service tax goods and service tax cess and other materialstatutory dues have been regularly deposited during the year generally by the Company withthe appropriate authorities.
(a) According to the information and explanations given to us no undisputed amountspayable in respect of Income tax sales tax value added tax duty of customs servicetax cess and other material statutory dues were in arrears as at 31 March 2021 for aperiod of more than six months from the date they became payable as on 31' March 2021except given below
|Name of the Statute ||Nature of Dues ||F.Y ||Amount Undisputed not yet deposited ||Pending Since |
|Income Tax ||TDS on Contractor ||2019-20 ||780000 ||Jun 2019 |
(b) According to the information and explanation given to us there are no materialdues of income tax or sales tax or service tax or duty of customs or duty of excise orvalue added tax which have not been deposited with appropriate authorities on account ofany dispute except given below
|Name of the Statute ||Nature of Dues ||F.Y ||Amount Under dispute not yet deposited ||Forum where dispute is pending |
|Sales Tax Department ||Central Sales Tax ||2013-14 ||2146537.67 ||Joint Commissioner |
(viii) According to the information and explanations given to us the Company hasdelayed (defaulted) in repayment of loans and borrowings to banks and financialinstitution as on the balance sheet date of Rs.279.73 lakhs. Out of which Rs.97.46 lakhshas been repaid as on the date of report.
(ix) The Company has not availed any fresh term loan from bank or financial institutiongi fur-thef pubtie-off-or (including-debt instruments) during the year.
(x) During the course of our examination of the books and records of the companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such cases by theManagement.
(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) According to the information and explanations given to us the Company is not aNidhi company and the Nidhi Rules 2014 are not applicable to it. Accordingly paragraph3(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 financial statements as required under Accountingstandard "Related Party Disclosures" specified under section 133 of the Act readwith relevant rules issued thereunder.
(xiv) During the year Company has not converted any debenture into equity shares.
(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. Accordingly paragraph 3(xv) ofthe Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
Annexure-B to the Independent Auditors' Report - 31st March 2021
Report on the Internal Financial Controls under clause (i) of sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act")
We have audited the Internal Financial Control over financial reporting of CianHealthcare Limited (hereinafter referred to as the "Company") as at March 31s12021 in conjunction with our audit of the financial statements of the Company for the yearended 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 Control over Financial Reportingissued by the ICAI. These responsibilities include the design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of assets the prevention and detection of fraud anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We have conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the standards on auditing issued by ICAIand deemed to be prescribed under section 143 (10) of the Companies Act 2013 to theextent applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those standards and the Guidance Note requirethat we comply with the ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting were established and maintained and if such controls operated effectively in allmaterial 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 understanding of internal financial controls over financial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risk 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 of records that in reasonable detail accurately andfairly reflect the transaction and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made in accordancewith authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of internal Financial Controls over Financial Reporting
Because of inherent limitations of internal controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
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 March 31 2021 based on the internal financialcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the ICAI.
Place: - Pune
Date: - 30.06.2021