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Auditor Report of Chennai Meenakshi Multispeciality Hospital Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Chennai Meenakshi Multispeciality Hospital Limited ('the Company'), which comprise the balance sheet as at 31 March 2015, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions' of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statement We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statement.

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

(b) in the case of the Statement of Profit and Loss, of the loss for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

5. Emphasis of Matter

We draw attention to Note No.3.1 the Company has suffered losses from its operations during the year. The Net Worth of the Company has been fully eroded as at the Balance Sheet date. The Current Liabilities as at the year end exceeds the Current Assets by Rs.8,78,33,224/- .This raises serious doubt about the ability of the Company to continue as a going concern. Our opinion is not qualified in respect of the above matters.

6. Report on Other Legal & Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

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 best of 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 the Company so far as it appears from our examination of those books;

c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;

d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) on the basis of the written representations received from the directors as on 31 March 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2015from being appointed as a director in terms of Section 164 (2)of The Act; and

(f) the matters discussed in "Emphasis of Matter" paragraph above, In our opinion, may have an adverse impact on the functioning of The Company.

(g) with respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has no material pending litigations for its disclosure to show its impact on the financial position in the financial statements.

ii. The Company does not have any long term Contracts including Derivative Contracts as at the end of the year

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

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2015, we report that:

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

(b) As explained to us, the fixed assets have been physically verified by the management at the end of the year, which, in our opinion is reasonable having regard to the size of the company and the nature of assets and that no material discrepancies have been noticed on such verification.

(ii) (a) we are informed that the inventory has been physically verified by the management during the year, the frequency of which, in our opinion, is reasonable, having regard to the size of the Company and the nature of its business;

(b) In our opinion and according to the explanations given to us, the procedures of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business;

(c) The company is maintaining proper records of inventory and as informed to us, the discrepancies noticed on verification wherever material, between the physical stocks and book records have been properly dealt with in the books of account;.

(iii) (a) The Company had not granted any loans or advances , secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 ('the Act').

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of pharmacy, consumables, and fixed assets and for the sale of services. We have not observed any major weakness in the internal control system during the course of the audit.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the Company.

(vii) a. According to the information and explanations given to us, and on the basis of our examination of the records of the Company, the Company has been fairly regular in depositing the statutory dues including provident fund, Employees State Insurance, income tax, sales tax, wealth tax, service tax, duty of customs, excise duty, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us and the records of the Company examined by us, there were no disputed dues that have not been deposited with appropriate authorities as at 31 st March, 2015, on account of dispute.

c. According to the information and explanations given to us there were no amounts which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules there under.

(viii) The accumulated losses as at the end of the financial year under audit are more than 50% of the Net Worth of the company as at the year end. The company has not incurred cash losses during the current financial year and in the immediately preceding financial year.

(ix) The Company did not have any outstanding dues to financial institutions, banks or debenture holders during the year.

(x) In our opinion and according to the information and the explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xi) The Company has not availed any term loan during the Year.

(xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.

For Varma & Varma

Chartered Accountants

(FRN.004532S)

K.M Sukumaran

Place : Chennai Partner

Date : 28.05.2015 M. No. 15707


Mar 31, 2014

We have audited the accompanying financial statements of Chennai Meenakshi Multispeciality Hospital Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, the Profit and Loss Statement and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act,2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2014;

(b) in the case of the Profit and Loss Statement, of the Profit for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal & Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 (" the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227 (3) of the Act, we report that:

a) we have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet, Profit and Loss Statement, and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) in our opinion, the Balance Sheet, Profit and Loss Statement, and Cash Flow Statement comply with the notified under the Act read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act,2013;

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE REFFERED TO IN PARA 1 OF OUR AUDIT REPORT OF EVEN DATE

1. a. The company is maintaining records showing full particulars, including quantitative details and situation of fixed assets.

b. As per the information and explanations furnished to us, the Fixed Assets of the company have been physically verified by the Management as at the year end, which in our opinion is reasonable having regard to the size of the business and nature of its assets.

c. There has not been disposal of any substantial portion of fixed assets of the company during the year, which would affect the status of the company as a going concern.

2. a. According to the explanation given to us, the inventories comprising of pharmacy items and consumables have been physically verified by the management during the year.

b. In our opinion and according to the explanations given to us, the procedures followed by the management with regard to physical verification of inventories are reasonable and adequate in relation to the size of the company and nature of its business.

c. On the basis of our examination of the books of accounts of the company, we are of the opinion that the company is maintaining proper records of inventory in respect of pharmacy items. As per the information and explanation furnished to us, no material discrepancies are found on such physical verification as compared to the books and records maintained by the company.

3. a. The Company has not granted any loans or advances, secured or unsecured to companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

b. As explained to us, the company has not taken any loans or advances in the nature of loan from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 other than as given below:

No. of Parties Amount Involved Amount (Max. Amount O/S) As on 31-03-2014

2 Rs. 17,97,81,217 Rs. 17,97,81,217

(c) In our opinion, the terms and conditions of the above loan taken from parties listed in the register to be maintained under section 301 of the Companies Act, 1956 are not prima-facie prejudicial to the interests of the Company.

(d) As per the information and explanations furnished to us, the repayment of principal amount of the term loans has not fallen due yet. While there is no repayment of principal amount of the term loans during the year, the interest due on the above loans have been paid/duly provided for in the accounts, as agreed.

4. In our opinion and according to the information and explanations given to us,the internal control procedures for purchase of pharmacy and other consumables and fixed assets and for sale of goods and services are commensurate with the size of the company and nature of its business. We have not observed any continuing failure to correct any major weakness in respect of the Internal Control in any of the above areas.

5. a. According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, in respect of each of such transactions made in pursuance to contracts and arrangements entered in the register maintained under section 301 of the Companies Act, 1956 with the aforesaid parties exceeding value of Rs. Five Lakhs in respect of each such party which have been entered into during the Financial Year are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. During the year, the Company has not accepted any deposits under Section 58A & 58AA and other relevant provisions of the Companies Act, 1956 and the rules framed there under.

7. In our opinion, the Internal Audit of the Company is done by a firm of Chartered Accountants, the scope and coverage of which is commensurate with the size and nature of its business.

8. As per the information and explanations furnished to us, the Company is not required to maintain Cost Records under Section 209(1 )(d) of the Companies Act, 1956.

9. a. The Company has been fairly regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax and Service Tax with the appropriate authorities during the year except for minor delays in stray cases. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection fund, Employees'' State Insurance, Income Tax, Wealth tax, Service tax, Sales tax, Excise duty, Customs Duty, Cess and any other statutory dues which are over due for a period of more than six months as on the Balance Sheet date.

b. According to the information and explanations given to us and as per our verification of records of the company, there are no disputed amounts of tax/duty/cess,which has not been deposited with appropriate authorities as at the year end.

10. The accumulated loss at the end of the financial year is more than 50% of net worth of the Company. The Company has not incurred cash losses during the year and immediately preceding financial year.

11. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to any banks or financial institutions.

12. In our opinion and according to the information and explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanations given to us, the nature of activities of the company does not attract any special statute applicable to chit fund and nidhi / mutual benefit fund / societies.

14. In our opinion, the company is not dealing or trading in shares, securities, debentures or other investments, and accordingly, the relative reporting requirements of the order are not applicable to the company.

15. According to the information and explanations given to us, during the year the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. The Company has not availed any fresh term loans during the year.

17. During the year, the company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act.

18. The company has not issued any debentures during the year and accordingly the reporting requirement under clause 4 (xix) of the Order is not applicable to the company.

19. The company has not raised any money by public issues during the year and accordingly the reporting requirement under clause 4 (xx) of the Order is not applicable to the company.

20. During the course of our examination of the books and records of the Company, carried out in accordance with the Generally Accepted Auditing Practice in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such cases by the management.



For Varma & Varma Chartered Accountants FRN.004532S

K.M Sukumaran Place : Chennai Partner Date : 29.05.2014 M. No. 15707


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Chennai Meenakshi Multispecialty Hospital Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (" the Act").This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2013;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal 8t Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 (" the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227 (3) of the Act, we report that:

a) We have obtained all the information and explanations, which to the best of 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 the Company so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on March 31,2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) Attention is invited to Note No.4.1 attached to financial statements regarding the going concern status of the company. The net worth as at the Balance Sheet date is negative Rs.4,94,80,779 and the current liabilities as at the yearend exceeds the current assets by Rs.6,27,29,468. However, the financial statements are prepared on a going concern basis for the reason stated therein.

1. a) The company is maintaining records showing particulars, including quantitative details and situation of fixed assets.

b) As per the information and explanations furnished to us, the Fixed Assets of the company have been physically verified by the Management as at the year end, which in our opinion is reasonable having regard to the size of the business and nature of its assets.

c) The company has not disposed off any major part of fixed assets during the year.

2. a) According to the explanation given to us, inventories comprising of pharmacy items and consumables have been physically verified by the management during the year.

b) We are of the opinion that the procedure followed by the management in regard to physical verification of inventories is reasonable and adequate in relation to the size of the company and nature of its business.

c) On the basis of our examination of the books of account of the company we are of the opinion, that the company is maintaining proper records of inventory in respect of pharmacy items. As per the information and explanation furnished to us, no material discrepancies are found on such physical verification as compared to the books and records maintained by the company.

3. (a) The company has not granted any loans or advances, secured or unsecured to companies,

firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) As explained to us the company has not taken any loans or advances in the nature of loans from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 other than as given below.

No. of Parties Amount Involved Amount

(Max. Amount O/S) As on 31-03-2013

16 Rs. 19,74,35,492 Rs.15,89,74,570

(c) In our opinion, the terms and conditions of the above loan taken from parties listed in the register to be maintained under section 301 of the Companies Act, 1956 are not prima- facie prejudicial to the interests of the Company.

(d) As per the information and explanations furnished to us, the repayment of principal amount of the term loans has not fallen due yet. While there is no repayment of principal amount of the term loan during the year, the interest due on the above loans have been paid/ duly provided for in the accounts, as agreed.

4. In our opinion and according to the information and explanations given to us, the internal control procedures for purchase of pharmacy and other consumables and fixed assets and for sale of goods and services are commensurate with the size of the company. We have not observed any continuing failure to correct any major weakness in respect of the internal controls in any of the above areas.

5. a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance to contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 with the aforesaid parties exceeding value of Rupees Five Lakhs in respect of each such party which have been entered into during the financial year are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 58A, 58AAand other relevant provisions of the Companies Act 1956, under the rules framed there under in respect of deposits accepted from public.

7. In our opinion, the internal audit of the Company is done by a firm of Chartered Accountants, the scope and coverage of which is commensurate with the size and nature of its business.

8. As per the information and explanations furnished to us the company is not required to maintain cost records under section 209(1) (d) of the companies Act, 1956.

9. (a) The Company has been fairly regular in depositing undisputed statutory dues including

Provident Fund, Income-tax, Sales-tax and Service tax with the appropriate authorities during the year except for minor delay in stray cases. According to the information and explanation given to us, there are no undisputed amount payable in respect of Provident Fund, Investors Education and Protection Fund, ESI, Income Tax, Sales Tax, Service Tax, Wealth Tax, Customs duty, Excise Duty, Cess and any other statutory due which are overdue for a period of more than six months as on the Balance Sheet date.

(b) As per the information and explanations given to us and according to the records of the company examined by us, there are no disputed amounts of tax/duty/cess, which has not been deposited with the concerned authorities as at the year end.

10. The accumulated loss at the end of the financial year is more than 50% of net worth of the company. The company has not incurred cash losses during the year and immediately preceding financial year.

11. According to the information and explanations given to us, the company has not defaulted in repayment of dues to banks and financial institutions.

12. In our opinion, and according to the information and explanations furnished to us, the company has not granted any loans or advances on the basis of securities by way of pledge of shares, Debentures and other securities.

13. In our opinion, the provisions of any special statute applicable to chit funds and nidhi /mutual fund/ Society are not applicable to the Company.

14. In our opinion, and according to the information and explanations furnished to us, the company is not dealing or trading in shares, securities, debentures and other investments.

15. According to the information and explanations given to us, during the year the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. The company has not availed any fresh term loans during the year.

17. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act.

18. The company has not issued any debentures during the year.

19. The company has not raised any money by way of public issue during year.

20. During the course of our examination of the books and records of the Company, carried out in accordance with the Generally Accepted Accounting Principles in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such cases by the management.

For Varma 6t Varma

Chartered Accountants

FRN.004532S

K.M Sukumaran Place : Chennai Partner

Date : 09.05.2013 M. No. 15707


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. Chennai Meenakshi Multispeciality Hospital Limited as at 31st March 2012, Profit and Loss Statement and the Cash Flow statement for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003 as amended by Companies (Auditor's Report) Amendment Order 2004 issued by the Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

4. We report that:

a) We have obtained all the information and explanations, which to the best of 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 the Company so far as appears from our examination of such books;

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statements dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956

e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the directors of the Company are disqualified as on 31st March 2012, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) Attention is invited to Note No.4 attached to financial statements regarding the going concern status of the company. As stated therein the company has been continuously incurring cash losses for the past three years. The net worth as at the Balance Sheet date is negative Rs.5,63,50,736 and the current liabilities as at the year end exceeds the current assets by Rs.4,96,36,252. However, the financial statements are prepared on a going concern basis for the reasons stated therein.

5. In our opinion and to the best of our information and according to the explanations given to us, the said Accounts read with the Notes attached thereto, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012.

b. in the case of the Profit and Loss Statement, of the profit for the year ended on that date; and

c. In the case of the Cash Flow Statement, of the cash flows for the year ended on that date

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE

1. a) The company is maintaining records showing particulars, including quantitative details and situation of fixed assets.

b) As per the information and explanations furnished to us, the Fixed Assets of the company have been physically verified by the Management as at the year end, which in our opinion is reasonable having regard to the size of the business and nature of its assets.

c) The company has not disposed off any major part of fixed assets during the year.

2. a) According to the explanation given to us, inventories comprising of pharmacy items and consumables have been physically verified by the management during the year.

b) We are of the opinion that the procedure followed by the management in regard to physical verification of inventories is reasonable and adequate in relation to the size of the company and nature of its business.

c) On the basis of our examination of the books of account of the company we are of the opinion, that the company is maintaining proper records of inventory in respect of pharmacy items. As per the information and explanation furnished to us, no material discrepancies are found on such physical verification as compared to the books and records maintained by the company.

3. (a) The company has not granted any loans or advances, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) As explained to us the company has not taken any loans or advances in the nature of loans from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 other than as given below.

No. of Parties Amount Involved Amount

(Max. Amount O/S) As on 31-03-2012

13 Rs. 17,95,76,917 Rs.17,69,13,766

(c) In our opinion, the terms and conditions of the above loan taken from parties listed in the register to be maintained under section 301 of the Companies Act, 1956 are not prima- facie prejudicial to the interests of the Company.

(d) As per the information and explanations furnished to us, the repayment of principal amount of the term loans has not fallen due yet, except in case of public deposit which has been duly repaid. While there is no repayment of principal amount of the term loan during the year, the interest due on the above loans have been paid/ duly provided for in the accounts, as agreed.

4. In our opinion and according to the information and explanations given to us, the internal control procedures for purchase of pharmacy and other consumables and fixed assets and for sale of goods and services are commensurate with the size of the company. We have not observed any continuing failure to correct any major weakness in respect of the internal controls in any of the above areas.

5. a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance to contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 with the aforesaid parties exceeding value of Rupees Five Lakhs in respect of each such party which have been entered into during the financial year are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 58A, 58AA and other relevant provisions of the Companies Act 1956, under the rules framed there under in respect of deposits accepted from public.

7. In our opinion, the internal audit of the Company is done by a firm of Chartered Accountants, the scope and coverage of which is commensurate with the size and nature of its business.

8. As per the information and explanations furnished to us the company is not required to maintain cost records under section 209(1) (d) of the companies Act, 1956.

9. (a) The Company has been fairly regular in depositing undisputed statutory dues including Provident Fund, Income-tax, Sales-tax and Service tax with the appropriate authorities during the year. According to the information and explanation given to us, there are no undisputed amount payable in respect of Provident Fund, Investors Education and Protection Fund, ESI, Income Tax, Sales Tax, Service Tax, Wealth Tax, Customs duty, Excise Duty, Cess and any other statutory due which are overdue for a period of more than six months as on the Balance Sheet date.

(b) As per the information and explanations given to us and according to the records of the company examined by us, there are no disputed amounts of tax/duty/cess, which has not been deposited with the concerned authorities as at the year end.

10. The accumulated loss at the end of the financial year is more than 50% of net worth of the company. The company has not incurred cash losses during the year but has incurred cash losses in the immediately preceding financial year.

11. According to the information and explanations given to us, the company has not defaulted in repayment of dues to banks and financial institutions.

12. In our opinion, and according to the information and explanations furnished to us, the company has not granted any loans or advances on the basis of securities by way of pledge of shares, Debentures and other securities.

13. In our opinion, the provisions of any special statute applicable to chit funds and nidhi /mutual fund/ Society are not applicable to the Company.

14. In our opinion, and according to the information and explanations furnished to us, the company is not dealing or trading in shares, securities, debentures and other investments.

15. According to the information and explanations given to us, during the year the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. The company has not availed any fresh term loans during the year except for additional unsecured loan taken from a concern in which the director is interested, which as explained to us, is for the purpose of meeting working capital requirements of the company. However the Company has not entered into any formal agreement for the above loan availed.

17. According to the information and explanations given to us, and an overall examination of the Balance sheet of the company, in our opinion short term funds have not been used for long term purposes except to the extent of Rs.4,83,24,026.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act.

19. The company has not issued any debentures during the year.

20. The company has not raised any money by way of public issue during year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the Generally Accepted Auditing Practice in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such cases by the management.

For Varma & Varma Chartered Accountants FRN.004532S

K.MSukumaran

Place : Chennai Partner

Date : 13.08.2012 M. No. 15707


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. Chennai Meenakshi Multispeciality Hospital Limited as at 31 st March 2010, Profit and Loss Account and the Cash Flow statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 as amended by Companies (Auditors Report) Amendment Order 2004 issued by the Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

4. We report that:

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit except as stated in Note No1(b), that Balances of Loans and Advances, Sundry Debtors, Creditors, some of the secured/unsecured loan and some of the Bank Balances are subject to confirmation/reconciliation, the effect of which on the Accounts for the year is not ascertainable by us;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of such books;

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statements dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956

e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the directors of the Company are disqualified as on 31 st March 2010, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) Attention is invited to Note No.2 in schedule 0 attached to financial statements regarding the going concern status of the company. As stated therein the Company has been continuously incurring cash losses for the past three years. The Net Worth as at the Balance Sheet date is negative (Rs.4.90 crores)and the Current Liabilities as at the year end exceeds the Current Assets by Rs.3.41 crores. However, the Financial Statements are prepared on Going Concern basis for the reasons stated therein.

5.

(a) Subject to our comments in para 4 (a) above, in our opinion and to the best of our information and according to the explanations given to us, the said Accounts read with the notes on accounts attached thereto, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March,2010.

b. in the case of the Profit and Loss Account, of the loss for the year ended on that date; and

c. jn the case of the Cash Flow Statement, of the cash flows for the year ended on that date



ANNEXURE REFERRED TO JN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE

1. a) The company is maintaining records showing particulars, including quantitative details and situation of fixed assets.

b) As per the information and explanations furnished to us, the Fixed Assets of the company have been physically verified by the Management as at the year end, which in our opinion is ., reasonable having regard to the size of the business and nature of its assets.

c) The company has not disposed off any part of fixed assets during the year.

2. a) According to the explanation given to us, inventories comprising of pharmacy items and consumables have been physically verified by the management during the year.

b) We are of the opinion that the procedure followed by the management in regard to physical verification of inventories is reasonable and adequate in relation to the size of the company and nature of its business.

c) On the basis of our examination of the books of account of the company we are of the opinion, that the company is maintaining proper records of inventory in respect of pharmacy items. As per the information and explanation furnished to us, no material discrepancies are found on such physical verification as compared to the books and records maintained by the company.

3. (a) The company has not granted any loans or advances, secured or unsecured to companies,

firms or other parties covered in the register maintained under Section 301 of the CompaniesAct, 1956.

(b) As explained to us the company has not taken any loans or advances in the nature of loans from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 other than as given below.

No. of Parties Amount Involved Amount Outstanding

(Max. Amount O/S) As on 31-03-2009

13 Rs. 14.65 Crores Rs. 14.65 Crores

(c) In our opinion, the terms and conditions of the above loan taken from parties listed in the register to be maintained under section 301 of the CompaniesAct, 1956 are not prima- facie prejudicial to the interests of the Company.

(d) As per the information and explanations furnished to us, for loans taken as above, repayment terms of principal amount has not been stipulated /fixed as yet. While there is no repayment of principal amount during the year, the interest due on the above loan as agreed has been duly provided for in the accounts.

4. In our opinion and according to the information and explanations given to us, the internal control procedures for purchase of pharmacy and other consumables and fixed assets and for sale of goods and services requires to be strengthened. However in our opinion, we have not observed any continuing failure to correct any major weakness in respect of the internal controls in any of the above areas.

5. a) in our opinion and according to the information and explanation provided by the

management, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered/updated.

b) According to the information and explanation provided by the management, there are no transactions entered with the aforesaid parties for value exceeding Rs.5 lacs in each case have been made at prevailing market rates having regard to the nature of service.

6. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 58A, 58AA and other relevant provisions of the Companies Act 1956, under the rules framed there under in respect of deposits accepted from public.

7. In our opinion, the company has an internal audit system done by a firm of Chartered Accountants which is commensurate with its size and nature of its business.

8. As per the information and explanations furnished to us the company is not required to maintain cost records under section 209(1) (d) of the companies Act, 1956.

9. (a) There has been delays in depositing undisputed statutory dues including Income Tax, and

Property Tax, with the appropriate authorities during the year. According to the information and explanation given to us, there are no undisputed amount payable in respect of Provident Fund, Investors Education and Protection Fund, ESI, Income Tax, Sales Tax, Service Tax, Wealth Tax, Customs duty, Excise Duty, Cess and any other statutory due which are overdue for a period of more than six months as on Balance Sheet date.

(b) According to information and explanations given to us and records of the company examined by us, there are no disputed amounts of tax/duty/cess, which has not been deposited with the authorities as at 31.03.2010.

10. The accumulated loss at the end of the financial year is more than 50% of net worth of the company. The company has incurred cash losses during the year and also in the immediately preceding financial year.

11. According to the information and explanations given to us, the company has not defaulted in repayment of dues to banks and financial institutions.

12. In our opinion, and according to the information and explanations furnished to us, the company has not granted any loans or advances on the basis of securities by way of pledge of shares, Debentures and other securities.

13. In our opinion, the provisions of any special statute applicable to chit funds and nidhi /mutual fund / Society are not applicable to the Company.

14. In our opinion, and according to the information and explanations furnished to us, the company is not dealing or trading in shares, securities, debentures and other investments.

15. According to the information and explanations given to us, during the year the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. The company has not availed any fresh term loan during the year except for additional unsecured loan taken from a director during the year, explained to be for meeting working capital requirements of the company. However there is no formal agreement for the above loan.

17. According to the information and explanations given to us, and an overall examination of the Balance sheet of the company, in our opinion short term funds are not used for long term purposes.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act.

19. The company has not issued any debentures during the year.

20. The company has not raised any money by way of public issue during year.

21. Based upon the audit procedures performed and as per the information and explanation given by the management, we report that no fraud on or by the company has been noticed during the year.

For Varma 8: Varma

Chartered Accountants

FRN.004532S

K.MSukumaran Place :Chennai Partner

Date : 25.08.2010 M. No. 15707



 
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