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KMC Speciality Hospitals (India) Ltd.

BSE: 524520 Sector: Health care
NSE: N.A. ISIN Code: INE879K01018
BSE 00:00 | 05 Dec 63.75 -0.45
(-0.70%)
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NSE 05:30 | 01 Jan KMC Speciality Hospitals (India) Ltd
OPEN 64.95
PREVIOUS CLOSE 64.20
VOLUME 35114
52-Week high 81.05
52-Week low 50.00
P/E 40.87
Mkt Cap.(Rs cr) 1,040
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 64.95
CLOSE 64.20
VOLUME 35114
52-Week high 81.05
52-Week low 50.00
P/E 40.87
Mkt Cap.(Rs cr) 1,040
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KMC Speciality Hospitals (India) Ltd. (KMCSPECIALITY) - Auditors Report

Company auditors report

To the Members of KMC Speciality Hospitals (India) Limited Report onthe Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of KMCSpeciality Hospitals (India) Limited ("the Company") which comprise theBalance Sheet as at 31 March 2022 and the Statement of Profit and Loss (including OtherComprehensive income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31 March 2022 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards on Auditing specified under section

143(10) of the Act (SAs). Our responsibilities under those Standardsare further described in the Auditor?s Responsibility for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI?sCode of Ethics. We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the financial statements of thecurrent period. We have determined that there are no key audit matters to communicate inour report.

Information Other than the Financial Statements and Auditor?sReport Thereon

• The Company?s Board of Directors is responsible for theother information. The other information comprises the Board?s report CorporateGovernance Report Management Discussion and Analysis and Business Responsibility Reportbut does not include the financial statements and our auditor?s report thereon.

Our opinion on the 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 financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

• If based on the work we have performed we conclude that thereis a material misstatement of this other information we are required to report that fact.We have nothing to report in this regard.

Management?s Responsibility for the Financial Statements

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these financialstatements that give a true and fair including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internalfinancialcontrols that were operating effectively forensuring the accuracy and completeness of the accounting records relevant tothepreparation financialstatement that give a true and presentationofthe fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company?s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany?s financial reporting process.

Auditor?s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the 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 abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

• 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 Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the financialstatements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor?s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced.

We consider quantitative materiality and qualitative factors in (i)planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that: a. We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit. b. Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. c. The Balance Sheet the Statementof Profit and Loss including Other Comprehensive income the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with therelevant books of account. d. In our opinion the aforesaid financial statements complywith the Ind AS specified under Section 133 of the Act. e. On the basis of the writtenrepresentations received from the directors as on 31 March 2022 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2022 from beingappointed as a director in terms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company?s internalfinancial controls over financial reporting.

g. With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section 197(16) of the Actas amended In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h. With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of it?sknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entities ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall directly orindirectly lend or invest in other persons or entities identifiedin any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide anyguarantee on behalf of the Ultimate Beneficiaries.

(b)The Management has represented that to the best of it?sknowledge and belief no funds (which are material either individually or in theaggregate) have been received by the Company from any person or entity including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the

Company shall directly or indirectly lend or invest in other personsor entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures that has been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement. v. The Company has notdeclared or paid any dividend during the year and has not proposed final dividend for theyear.

2. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specifiedinparagraphs 3 and 4 of the Order.

For Deloitte Haskins & Sells
Chartered Accountants
(Firm?s Registration No. 008072S)
Ananthi Amarnath
(Partner)
(Membership No. 209252)
(Unique Document Identification Number: 22209252AJWIDC1147)
Place: Chennai
Date: 30 May 2022

ANNEXURE "A" TO THE INDEPENDENT AUDITOR?S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements? section of our report of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting ofKMC Speciality Hospitals (India) Limited ("the Company") asof 31 March 2022 in conjunction with our audit of the financial statements of the Companyfor the year ended on that date.

Management?s Responsibility for Internal Financial Controls

The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancialcontrols that were operating effectively for ensuring the orderly and efficientbusiness including adherence to company?s policies 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.

Auditor?s Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial

Company based on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India andthe Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. 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 controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company?s internal financial control over financialreporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financialstatements for external purposes in accordancewith generally accepted accounting principles. A company?s internal financial controlover financialreporting 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany?s assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 2022 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

ForDeloitte Haskins & Sells
Chartered Accountants
(Firm?s Registration No. 008072S)
Ananthi Amarnath
(Partner)
(Membership No. 209252)
(Unique Document Identification Number: 22209252AJWIDC1147)
Place: Chennai
Date: 30 May 2022

ANNEXURE "B" TO THE INDEPENDENT AUDITOR?S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements? section of our report of even date) In terms of theinformation and explanations sought by us and given by the Company and the books ofaccount and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that

(i) (a) (A)The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment capital work-in progress investment property and relevant details ofright-of-use assets.

(B)The Company has maintained proper records showing full particularsof intangible assets.

(b) The Company has a program of verification of property plant andequipment so to cover and surgical instruments every year and all other items once everytwo years which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. Pursuant to the program certain property plant andequipment were physically verified by the Management during the year. According to theinformation and explanations given to us no materialdiscrepancieswerenoticedonsuchverification.

(c) Based on our examination of the registered sale deed provided tous we report that the title deeds of all the immovable properties (other than immovableproperties where the Company is the lessee and the lease agreements are duly executed infavour of the Company) disclosed in the financial statements included in

(property plant and equipment capital work-in progress and investmentproperty) are held in the name of the Company as at the balance sheet date.

(d) The Company has not revalued any of its property plant andequipment (including Right of Use assets) and intangible assets during the year.

(e) No proceedings have been initiated during the year or are pendingagainst the Company as at 31 March 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The inventories were physically verified during the year bythe Management at reasonable intervals. In our opinion and according to the informationand explanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations.

No discrepancies of 10% or more in the aggregate for each class ofinventories were noticed on such physical verification of inventories when compared withbooks of account.

(b) According to the information and explanations given to us at anypoint of time of the year the Company has not been sanctioned any working capitalfacility from banks or financial institutions and hence reporting under clause (ii)(b) ofthe Order is not applicable.

(iii) The Company has provided guaranteeto companies during the yearin respect of which:

(a) The Company has not made any investments in provided security andgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties during the year.

The Company has stood guarantee during the year and details of whichare given below:

Particulars Guarantee
A Aggregate amount of loans granted/provided during the year -
- Others 3180.42
B. Balance outstanding as at balance sheet date in respect of above cases -
- Others 6456.39

(b) The guarantees provided during the year are in our opinion primafacie not prejudicial to the Company?s interest.

(c) The Company has not granted any advances in the nature of loans.Hence reporting under clause (iii)(c to f) of the Order is not applicable

(iv) The Company has complied with the provisions of Sections 185 and186 of the Companies Act 2013 in respect of loans granted investments made andguarantees and securities provided as applicable.

(v) The Company has not accepted any deposit or amounts which aredeemed to be deposits. Hence reporting under clause (v) of the Order is not applicable.

by the Central Government under section 148(1) of the (vi) Themaintenance of cost records has been specified

Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under subsection (1) of Section 148 of theCompanies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained We have however not made a detailed examination ofthe cost records with a view to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us inrespect of statutory dues:

(a) Undisputed statutory dues including Goods and Service taxProvident Fund Employees? State Insurance Income-tax cess and other materialstatutory dues applicable to the Company have been regularly deposited by it with theappropriate authorities in all cases during the year.

There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees? State Insurance Income-tax cess and othermaterial statutory dues in arrears as at 31 March 2022 for a period of more than sixmonths from the date they became payable.

(b)There are no statutory dues referred in sub-clause (a) above whichhave not been deposited on account of disputes as on 31 March 2022.

(viii) There were no transactions relating to previously unrecordedincome that were surrendered or disclosed as income in the tax assessments under theIncome Tax Act 1961 (43 of 1961) during the year.

(ix) (a) In our opinion the Company has not defaulted in the repaymentof loans or other borrowings or in the payment of interest thereon to any lender duringthe year.

(b) The Company has not been declared willful defaulter by any bank orfinancial institution or government or any government authority.

(c) To the best of our knowledge and belief in our opinion term loansavailed by the Company were applied by the Company during the year for the purposes forwhich the loans were obtained.

(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used duringthe year for long-term purposes by the Company.

(e) The Company did not have any subsidiary or associate or jointventure during the year and hencereporting under clause (ix)(e) and (ix)(f) of the Orderis not applicable.

(x) (a) The Company has not issued any of its securities (includingdebt instruments) during the year and hence reporting under clause (x)(a) of the Order isnot applicable.

(b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause (x)(b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.

(b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.

(c) As represented to us by the Management there were no whistleblower complaints received by the Company during the year.

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

(xiii) In our opinion the Company is in compliance with Section 177and 188 of the Companies Act 2013 where applicable for all transactions with therelated parties and the details of related party transactions have been disclosed in thefinancial statements etc. as required by the applicable accounting standards.

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports issued to theCompany during the year and covering the period upto 31 March 2022 under audit indetermining the nature timings and extent of our audit procedures.

(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with its directors or persons connected with its directors andhence provisions of section 192 of the Companies Act 2013 are not applicable to thecompany

(xvi) (a) The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause (xvi) (a) (b)and (c) of the Order is not applicable.

(b) In our opinion and according to the information and explanationsgiven to us there is no core investment company

Investment Companies (Reserve Bank) Directions 2016) and accordinglywithintheGroup(asdefined reporting under clause (xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realization of financialassets and payment of financialliabilities other informationaccompanying the financial statements and our knowledge of the Board of

Directors and Management plans and based on our examination of theevidence supporting the assumptions nothing has come to our attention which causes us tobelieve that any material uncertainty exists as on the date of the audit report indicatingthat Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

(xx) The Company has fully spent the required amount towards CorporateSocial Responsibility (CSR) and there are no unspent CSR amount for the year requiring atransfer to a Fund specified in Schedule VII to the Companies Act or special account incompliance with the provision of sub-section (6) of section 135 of the said Act.Accordingly reporting under clause (xx) of the Order is not applicable for the year.

(xxi) The Company does not have any requirement to prepare consolidatedFinancial Statements and hence reporting under clause (xxi) of the Order is not applicablefor the year.

ForDeloitte Haskins & Sells
Chartered Accountants
(Firm?s Registration No. 008072S)
Ananthi Amarnath
(Partner)
(Membership No. 209252)
(Unique Document Identification Number: 22209252AJWIDC1147)
Place: Chennai
Date: 30 May 2022

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