Mar 31, 2023
To The Members of Apollo Hospitals Enterprise Limited Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Apollo Hospitals Enterprise Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No. |
Key Audit Matter |
Auditorâs Response |
Allowance for credit losses relating to trade |
We performed the following principal audit procedures: |
|
receivables |
1. We tested the design and implementation and operating |
|
As stated in Note 12, the Company has determined |
effectiveness of controls over (a) development of methodology |
|
the allowance for credit loss based on historical |
for the allowance for credit losses, including consideration |
|
loss experience which is adjusted to reflect |
of the overall economic conditions (b) completeness and |
|
current and estimated future economic conditions. |
accuracy of information used in estimation of the probability |
|
The historical loss experience model takes into |
of default (c) computation of the expected credit loss |
|
consideration the overall economic conditions and its impact on the customers'' business operations / ability to pay dues. |
allowances |
Based on such analysis the Company has recorded |
2. For a sample of customers under each category, verified |
an allowance aggregating to '' 874 Million as |
publicly available credit reports and other information relating |
included Note 12 of the standalone financial |
to the Companyâs customers to test if the Management had |
statements. |
appropriately considered the adjustments to credit risk. |
We identified allowance for credit losses as a |
3. Recomputed the expected credit loss allowance considering |
key audit matter because the Company exercises |
the above determined input data and compared the |
significant judgment in calculating the expected |
amounts so recomputed with the amounts recorded by |
credit losses. |
the Management to determine if there were any material |
difference individually or in the aggregate. |
Information Other than the Financial Statements and Auditorâs Report Thereon
⢠The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Directors'' Report to the shareholders including Annexures to Boardâs Report, Business Responsibility and Sustainability Report, Corporate Governance report, but does not include the consolidated financial statements, standalone financial statements and our auditorâs report thereon.
⢠Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
⢠In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained 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 material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Companyâs Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠I dentify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to 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 misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. 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 standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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) I n 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 including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) I n our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to standalone financial statements.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) 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, as amended in our opinion and 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 financial position in its standalone financial statements - Refer Note 47 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of it''s knowledge and belief, other than as disclosed in the
note 55(iv) to the financial statements no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of it''s knowledge and belief, as disclosed in the note 55(v) to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise,
that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with section 123 of the Act, as applicable.
The interim dividend declared and paid by the Company, during the year, is in accordance with section 123 of the Act, as applicable.
As stated in note 56 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells LLP
Chartered Accountants (Firm''s Registration No. 117366W/W 100018)
(Partner)
Place: Bengaluru (Membership No. 060408)
Date: August 3, 2023 (UDIN 23060408BGYGQH1779)
Mar 31, 2022
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Apollo Hospitals Enterprise Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2022, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
S.No. |
Key Audit Matters |
Auditor''s Response |
1. |
Allowances for credit losses relating to trade |
We performed the following principal audit |
receivables |
procedures: |
|
As stated in Note 12, the Company has determined the |
1. We tested the design and implementation and |
|
allowance for credit loss based on historical loss experience |
operating effectiveness of controls over (a) |
|
which is adjusted to reflect current and estimated future |
development of methodology for the allowance for |
|
economic conditions. The historical loss experience model |
credit losses, including consideration of the overall |
|
takes into consideration the overall economic conditions |
economic conditions (b) completeness and accuracy |
|
and its impact on the customers'' business operations/ability |
of information used in estimation of the probability |
|
to pay dues. |
of default (c) computation of the expected credit loss allowances |
S.No. |
Key Audit Matters |
Auditor''s Response |
Based on such analysis the Company has recorded an |
2. For a sample of customers under each category, |
|
allowance aggregating to ''1,184 Million as included Note |
verified publicly available credit reports and other |
|
12 of the standalone financial statements. |
information relating to the Company''s customers to test |
|
We identified allowance for credit losses as a key audit |
if the Management had appropriately considered the |
|
matter because the Company exercises significant judgment |
adjustments to credit risk. |
|
in calculating the expected credit losses. |
3. Recomputed the expected credit loss allowance considering the above determined input data and compared the amounts so recomputed with the amounts recorded by the Management to determine if there were any material difference individually or in the aggregate. |
⢠The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Directors'' Report to the shareholders including Annexures to Board''s Report, Business Responsibility and Sustainability Report, Corporate Governance, but does not include the consolidated financial statements, standalone financial statements and our auditor''s report thereon.
⢠Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
⢠In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained 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 material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠I dentify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to 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 misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. 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 standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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) I n 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 including Other Comprehensive Income, the Statement of Cash Flows
and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) I n our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of
the Act.
e) On the basis of the written representations received from the directors as on 31st March 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditorâs 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 to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. (a) The Management has represented that, to the best of itâs knowledge and belief, as disclosed in the Note 56(iv) to
the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of itâs knowledge and belief, as disclosed in Note 56(v) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with section 123 of the Act, as applicable.
As stated in note 57 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable.
2. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Chartered Accountants (Firm''s Registration No. 117366W/W-100018)
Partner
Place: BENGALURU (Membership No. 060408)
Date: July 30, 2022 (UDIN 22060408ANZSTG7309)
Mar 31, 2021
To The Members of Apollo Hospitals Enterprise Limited
We have audited the accompanying standalone financial statements of Apollo Hospitals Enterprise Limited ("the Company"), which comprise of the Balance Sheet as at March 31, 2021, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS"), and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2021, and its Profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
We draw your attention to Note: 4.1.12 to the Financial Statements, which describes Management''s assessment of the impact of COVID -19 pandemic on significant uncertainties involved in developing some of the estimates involved in preparation of the financial statement including recoverability of receivables, Property, plant & equipment including Capital work in progress and certain investments. Based on information available as of this date, Management believes that no further adjustments are required to the financial statements. However, in view of the highly uncertain economic environment, a definitive assessment of the impact is highly dependent upon circumstances as they evolve in future and the actual results may differ from those estimated as at the date of approval of these financial statement. Our opinion is not modified in respect of this matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
Auditor''s Response |
Allowances for credit losses relating to trade |
We performed the following principal audit procedures: |
receivables |
1. We tested the design and implementation and operating effectiveness |
As stated in Note 12, the Company has determined |
of controls over (a) development of methodology for the allowance |
the allowance for credit loss based on historical loss |
for credit losses, including consideration of the overall economic |
experience which is adjusted to reflect current and |
conditions (b) completeness and accuracy of information used |
estimated future economic conditions. The historical loss |
in estimation of the probability of default (c) computation of the |
experience model takes into consideration the overall |
expected credit loss allowances. |
economic conditions and its impact on the customers'' business operations/ability to pay dues. |
2. For a sample of customers under each category, verified publicly available credit reports and other information relating to the |
Based on such analysis the Company has recorded |
Company''s customers to test if the Management had appropriately |
an allowance aggregating to Rs. Rs.1,137 Million as |
considered the adjustments to credit risk. |
included Note 12 of the standalone financial statements. |
3. Recomputed the expected credit loss allowance considering the above |
We identified allowance for credit losses as a key audit |
determined input data and compared the amounts so recomputed |
matter because the Company exercises significant |
with the amounts recorded by the Management to determine if there |
judgment in calculating the expected credit losses. |
were any material differences individually or in the aggregate |
Scheme of Arrangement |
We performed the following key audit procedures: |
The Scheme of Arrangement (''the Scheme'') for transfer |
1. We obtained the Scheme and examined its terms and conditions for |
of front-end retail pharmacy business included in the |
identification of the assets and liabilities to be transferred |
standalone pharmacy segment (''divestment business'') to Apollo Pharmacies Limited, a wholly owned subsidiary of Apollo Medicals Private Limited was approved by the National Company Law Tribunal vide their Order |
2. Tested the internal controls over identification of such assets and liabilities, the accounting treatment in the books of accounts in compliance with the Scheme and other statues, as applicable |
dated August 3, 2020. The Scheme was effective from September 1, 2020 (''effective date'').As per the Scheme, accounting in the books of the Company is given effect as on the effective date considering the transfer of the |
3. Tested the completeness of the assets and liabilities to be transferred and to be retained in the Company based on comparison with the Scheme and other discussions with the Management |
divestment business with effect from April 1, 2019 |
4. Evaluated the accounting treatment for compliance with the Scheme |
(''appointed date''). |
and other statutes, as applicable and tested the resulting accounting |
Giving effect to the Scheme involves identification of |
entries recorded by the Company |
the divestment assets and liabilities of the divestment |
5. Evaluated the appropriateness of the relevant disclosures in respect of |
business as defined under it and are subject to the provisions of the Scheme and accordingly has been identified as a key audit matter. |
the Scheme for compliance with the applicable accounting standards |
Refer Note 55 for the disclosures on the Scheme of Arrangement. |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
⢠The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Directors'' Report to the shareholders including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance, but does not include the consolidated financial statements, standalone financial statements and our auditor''s report thereon.
⢠Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
⢠In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained 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 material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to 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 misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. 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 standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) I n our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act .
e) On the basis of the written representations received from the directors as on March 31,2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
I n our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the
Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) 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, as amended in our opinion and 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 financial position in its standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section
143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Chartered Accountants (Firm''s Registration No. 117366W/W-100018)
Partner
Place: Bengaluru Membership No. 060408)
Date: August 7, 2021 (UDIN 21060408AAAACJ2676)
Mar 31, 2019
INDEPENDENT AUDITOR''S REPORT
To The Members of Apollo Hospitals Enterprises Limited, Chennai
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Apollo Hospitals Enterprise Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2019, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Eguity, and the Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2019, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to 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 most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
to. |
Key Audit Matter |
Auditor''s Response |
1 |
Evaluation of the recoverable amounts of investments in and advances to certain subsidiaries (Refer to Notes 8 and 12 to the standalone financial statements and accounting policies 3.19). The Company''s evaluation of the recoverable amounts of investments in and advances to certain subsidiaries aggregating to Rs. 1,162 Million, involves comparison of their recoverable value and the carrying amount. Management determines the recoverable amount on the basis of value-in-use approach. Management applies significant judgement, assumptions and uses significant unobservable inputs and estimates to determine the recoverable amount. |
Principal audit procedures include: a) Evaluated appropriateness of the value-in-use model for the impairment assessment. b) Evaluated the design of internal controls relating to the development of key assumptions used in the value-in-use model and tested operating effectiveness of these controls. c) Assessed the reasonableness of the key business assumptions such as revenue growth and EBIDTA margins, by understanding the management''s plan and performing retrospective testing. d) Assessed the reasonableness of the discount rates used with the assistance of our internal valuation experts. e) Evaluated management''s sensitivity analysis around the key assumptions, to determine if any reasonably possible changes to key assumptions would impact the recoverable amounts. |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, for example, Corporate Overview, Statutory Section (such as Directors'' Report to the Shareholders, Corporate Governance Report and Business Responsibility Report), and Business Review (such as Management Discussion and Analysis) but does not include the consolidated financial statements, standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained 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 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards and other accounting principles generally accepted in India. 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to 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 misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. 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 standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, the Statement of Changes in Eguity and Statement of Cash Flows 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 Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) 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, as amended in our opinion and 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 financial position in its standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells LLP |
|
Chartered Accountants |
|
Firm Registration No. 117366W/W-100018 |
|
Vikas Bagaria |
|
Place : Mumbai |
Partner |
Date : May 30, 2019 |
Membership No. 060408 |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph l(f) under ''Report on Other Legal and Regulatory Reguirements'' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Apollo Hospitals Enterprise Limited ("the Company") as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the "internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India". These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or 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 the explanations given to us the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019, based on the "criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India".
For Deloitte Haskins & Sells LLP |
|
Chartered Accountants |
|
Firm Registration No. 117366W/W-100018 |
|
Vikas Bagaria |
|
Place : Mumbai |
Partner |
Date : May 30, 2019 |
Membership No. 060408 |
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the Management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed/transfer deed/conveyance deed/title deeds pledged with banks, we report that, the title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company as at the balance sheet date
In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted unsecured loans, , to companies covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company''s interest.
b) The schedule of repayment of principal and payment of interest has been stipulated and according to the terms of the agreement, no amounts towards principal and interest have fallen due during the current year.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to the deposits accepted. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013 in respect of healthcare services rendered. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Value Added Tax, Goods and Service Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Value Added Tax, Goods and Service Tax, cess and other material statutory dues in arrears as at March 31, 2019 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Service Tax, Customs Duty, and Value Added Tax which have not been deposited as on March 31, 2019 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amounts in (Rs.million) |
Income Tax Act, 1961 |
Income Tax |
Honorable Supreme Court |
AY: 2000-01 |
136.76 |
Customs Act, 1962 |
Customs Duty |
Assistant Collector of Customs (Chennai, Hyderabad |
1996, 1997 |
99.70 |
Finance Act, 1994 |
Service Tax |
Appeal with CESTAT, New Delhi, Commissioner of Service Tax, Vizag |
2010-11, 2013-14 |
4.09 |
Value Added Tax Act, 2004 |
Value Added Tax |
Joint Commissioner, Kolkata |
2012-13 |
0.05 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and dues to debenture holders. The Company has not taken any loans from the government.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes of which they are raised. The company has not raised monies by way of initial public offer or further public offer (including debt instruments).
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid /provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP |
|
Chartered Accountants |
|
Firm Registration No. 117366W/W-100018 |
|
Vikas Bagaria |
|
Place : Mumbai |
Partner |
Date : May 30, 2019 |
Membership No. 060408 |
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Apollo Hospitals Enterprise Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income),the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income,changes in equity and the cash flows of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting 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 thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
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 Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows 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 Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs 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 to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âBâ
TO THE INDEPENDENT AUDITORSâ REPORT_
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the Management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed / title deeds pledged with banks, we report that, the title deeds, comprising all the immovable properties of land and buildings,are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and buildings that have been taken on lease in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to the deposits accepted. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013 in respect of healthcare services rendered. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax,Customs Duty Value Added Tax, Goods and Service Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax,Customs Duty, Value Added Tax, Goods and Service Tax,cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, and Value Added Tax which have not been deposited as on March 31, 2018 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount (Rs. million) |
Income Tax Act, 1961 |
Income Tax |
Honorable Supreme Court |
Assessment Year 2000-2001 |
136.76 |
Customs Act, 1962 |
Customs Duty |
Honourable Madras High Court |
1996, 1 997 |
99.70 |
Finance Act, 1994 |
Service Tax |
CESTAT, New Delhi, CESTAT Raipur |
July 2010 to July 2015 |
22.50 |
Commissioner of Central Excise (Appeals], Vizag |
||||
Value Added Tax Act, 2004 |
Value Added Tax |
Joint Commissioner, Kolkata |
2011-2012 |
0.04 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks and financial institutions and dues to debenture holders. The Company has not taken any loans from government.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments).
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firmâs Registration No. 1 17366W/W-1 00018)
Vikas Bagaria
Place: Singapore (Partner)
Date: 30th May, 2018 (Membership No. 060408)
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Apollo Hospitals Enterprise Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as âStandalone Ind AS financial Statementsâ)
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone IND AS financial statements that give a true and fair view of the state of affairs (financial position), profit (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (IND AS) prescribed under section 133 of the Act read with relevant rules issued thereunder.
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; the 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 standalone IND AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone IND AS 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 thereunder.We conducted our audit of the standalone Ind AS financial statements 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 standalone IND AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone IND AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone IND AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the
Companyâs preparation of the standalone IND AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone IND AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone IND AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone IND AS 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 including the IND AS,
a) of the state of affairs (financial position) of the Company as at 31st March, 2017,
b) its profit (financial performance including other comprehensive income), for the year ended 31st March 2017.
c) its cash flows and the changes in equity for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âThe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, 2013, 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 (including other comprehensive income),the Cash Flow Statement and the statement of changes in equity dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone IND AS Financial Statements comply with the Indian Accounting Standards (Ind As) specified under section 133 of the Act, read with rule 7 of the companies (Accounts) Rules, 2014
e) On the basis of written representations received from the Directors as at 31st March 2017 taken on record by the Board of Directors, none of the directors is disqualified as at 31st March 2017 from being appointed as a director in terms of Sec.164(2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in âAnnexure B.â
g) With respect to the other matters to be included in the Auditorâs 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 disclosed the impact of pending litigations on its financial position in its Standalone Ind AS Financial Statements - Refer Note 38 to the Standalone Ind AS Financial Statements.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company; and
(iv) The company had provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with the books of accounts maintained by the company and as produced to us by the management - Refer Note 43 to the Standalone Ind AS financial Statements.
Annexure âAâ to Independent Auditorsâ Report
The Annexure referred to in paragraph 1 of our report of even date to the members of Apollo Hospitals Enterprise Limited. On the accounts of the Company for the year ended 31 March, 2017.
i. On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Fixed assets have been physically verified by the management at reasonable intervals; according to the information and explanation given to us, no material discrepancies were found on such verification.
(c) The title deeds of Immovable properties owned by the Company are held in the name of the Company. The title deeds of immovable property in the form of building constructed on leasehold land are held in the name of the Company. Also refer Note 5 in notes to accounts.
ii. Stock of medicines, stores, spares, consumables, chemicals and lab materials have been physically verified at reasonable intervals by the management. According to the information and explanations given to us no material discrepancies were noticed.
iii. According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Consequently the provisions of clauses 3(a), 3(b) and 3(c) are not applicable.
iv. The Company has not provided any loan or investments or guarantees or Securities which fall under the purview of section 185 and section 186 of the Act.
v. In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and provisions of Section 73 to 76 or any other relevant provisions of the Act and Companies (Acceptance of Deposits) amended Rules, 2015 with regard to deposits accepted from Public including unclaimed deposits matured in earlier years that are outstanding during the year. To the best of our knowledge and according to the information and explanations given to us, no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of India or any other Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 1 of section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records
vii. (a) According to the information and explanations given to us, the Company has been regular in depositing with the appropriate authorities, undisputed statutory dues including Provident Fund, Employeesâ state insurance, Income-tax, Customs duty, Service Tax. Cess, and other statutory dues applicable to it. To the best of our knowledge and according to the information and explanations given to us, there are no arrears of outstanding statutory dues as at March 31, 2017 for a period of more than six months from the date they became payable. To the best of our knowledge and belief and according to the information and explanations given to us, excise duty is not applicable to this Company.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues disputed with respect to cess. The particulars of sales tax, service tax, custom duty and income tax which have not been deposited on account of any dispute are as follows:
Name of the Statute |
Nature of the Dues |
Amount (Rs. in million as on 31.03.2017) |
Period to which the amount relates |
Forum where dispute is pending |
Customs Act, 1962 |
Custom Duty |
99.70 |
1996,1997 |
Assistant Collector of Customs (Chennai, Hyderabad) |
Service Tax |
Service Tax |
32.45 |
2007-12, 2012-13, 2013-14 |
Appeal with CESTAT, New Delhi |
Value Added Tax Act, 2004 |
Value Added Tax |
24.93 |
2008-09 & 2012-13 |
Deputy Commissioner of Commercial Tax (Enforcement), Chennai |
Income tax Act, 1961 |
Income Tax |
136.76 |
AY: 2000-01 |
Honorable Supreme Court, |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of any dues to financial institutions, banks, governments or debenture holders.
ix. In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and Term Loans during the year. Accordingly, the provisions of clause 3 (ix) of the order is not applicable.
x. According to the information and explanations given to us no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course our audit.
xi. The Managerial remuneration paid by the Company is as per section 197read with Schedule V of the Act.
xii. The Company is not a Nidhi Company and hence clause3 (xii) is not applicable.
xiii. According to the information and explanations given to us, the transactions with related parties are in compliance with section 177 and section 188 of the Act, where applicable and the details have been disclosed in the Standalone Ind AS financial statements as required under the relevant Indian Accounting Standard.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year under review. Accordingly clause 3 (xiv) is not applicable.
xv. According to the information and explanations, the Company has not entered into non-cash transactions with the Directors or persons connected with him. Accordingly, clause 3 (xv) is not applicable.
xvi. The Company is not engaged in non-banking financial services therefore clause 3 (xvi) is not applicable
For S Viswanathan LLP
Chartered Accountants
FRN:004770S/S200025
V C Krishnan
Place: Chennai Partner
Date: 30th May 2017 Membership No: 022167
Mar 31, 2016
We have audited the accompanying financial statements of Apollo Hospitals Enterprise Limited (the Company), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these 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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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 controls relevant to the Companyâs preparation 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 the Companyâs directors, 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 aforesaid 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, 2016;
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 and Regulatory Requirements:
1. As required by the Companies (Auditorâs Report) Order, 2016 (âThe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Companies Act 2013 , 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 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, 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 written representations received from the directors as on March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of section 164(2) of the Companies Act, 2013.
f) With respect the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure âBâ.
g) With respect to the other matters to be included in the Auditorâs 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 disclosed the impact of pending litigations on its financial position in its financial statements - Refer note 28 to the financial statements;
(ii) The Company is fully hedged for all long term derivative contracts and there are no material foreseeable losses on long term contracts for which any provision is required
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
The Annexure referred to in paragraph 1 of our Report of even date to the members of Apollo Hospitals Enterprise Limited, on the accounts of the Company for the year ended March 31, 2016.
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
i. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of its fixed assets.
(b) The fixed assets have been physically verified by the management at reasonable intervals; according to the information and explanation given to us, no material discrepancies were found on such verification.
(c) The title deeds of immovable properties owned by the Company are held in the name of the Company. The title deeds of immovable property in the form of building constructed on leasehold land are held in the name of the Company. Also refer to note no: 11 in notes to accounts.
ii. Stock of medicines, stores, spares, consumables, chemicals, lab materials and surgical instruments have been physically verified at reasonable intervals by the management. According to the information and explanation given to us no material discrepancies were noticed.
iii. According to the information and explanation given to us and on the basis of our examination of the books of accounts, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Consequently the provisions of clauses 3(a) and 3(b) are not applicable.
iv. The Company has not provided any loan or investments or Guarantees or Securities which falls under the purview of Sec 185 and Sec 186 of the Companies Act, 2013.
v. In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and Companies (Acceptance of Deposits) amended Rules, 2015 with regard to deposits accepted from the public including unclaimed deposits matured in earlier years that are outstanding during the year. To the best of our knowledge and according to the information and explanations given to us, no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of India or any other Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under sub-section 1 of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
vii. (a) According to the information and explanations given to us, the Company is regular in depositing with appropriate authorities, undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service tax, Customs Duty, Cess, and other statutory dues applicable to it. To the best of our knowledge and according to the information and explanations given to us, there are no arrears of outstanding statutory dues as at March 31, 2016 for a period of more than six months from the date they became payable. To the best of our knowledge and belief and according to the information and explanations given to us, excise duty is not applicable to this Company.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues disputed with respect to Cess. The particulars of Sales tax, Service Tax, Customs duty and Income tax which have not been deposited on account of any dispute are as follows:
Name of the statute |
Nature of the dues |
Amount (in million) 31.03.2016 |
Period to which the amount relates |
Forum where dispute is pending |
Customs Act, 1962 |
Customs duty |
99.70 |
1996,1997 |
Assistant Collector of Customs (Chennai, Hyderabad & Customs duty) |
 |  |  |
 |
|
Service Tax |
Service tax |
29.63 |
2007-12, 2012-13, 2013-14 |
CESTAT, Delhi |
Value Added Tax Act, 2004 |
Value Added Tax |
24.88 |
2008-09 2009-10 2010-11 |
Deputy Commissioner of Commercial Tax (Enforcement), Chennai |
Income Tax Act, 1961Â | Â Income Tax |
49.12 |
Assessment Year 1996-1997, 1997-1998, 1998-1999, 1999-2000, 2000-2001, 2001-2002 |
Department has filed appeal before Madras High Court |
 |  |
142.66 |
Assessment Year 2010-2011 2011-2012, 2012-2013 |
CIT (Appeals) |
 |  |
136.76 |
Assessment Year 2000-2001 |
Honourable Supreme Court |
Total |
 |
482.75 |
 |  |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of any dues to financial institutions, banks and debenture holders.
ix. In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer (including debt instruments) and hence this clause is not applicable.
x. According to the information and explanations given to us, by the Company, no fraud on or by the Company has been noticed or reported, during the year.
xi. The managerial remuneration paid by the Company is as per Sec 197 of the Companies Act, 2013 and Schedule V of the Companies Act, 2013.
xii. The Company is not a Nidhi Company and hence this clause is not applicable.
xiii. All the transactions mentioned are in compliance with Sec 177 and Sec 188 of the Companies Act, 2013 and are disclosed as required under the applicable Accounting Standards.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence this clause is not applicable.
xv. According to the information and explanation given to us, the Company has not entered into non cash transactions with directors or persons connected with them which will come under the purview of Sec 192 of the Companies Act, 2013.
xvi. As the Company is not in non banking financial services, this clause is not applicable.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Apollo Hospitals Enterprise Limited (âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (l) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S Viswanathan LLP
Chartered Accountants FRN:004770S/S200025
V C Krishnan
Place: Chennai Partner
Date: 25th May 2016 Membership No: 022167
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Apollo
Hospitals Enterprise Limited, which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information
We have also considered the independent audit observations of the
divisional auditors for the Pharmacy Division, Project Division,
Hyderbad Division, Bilaspur Division, Mysore Division, Vizag Division,
Pune Division, Karim Nagar Division and Mandya Division for forming an
opinion on the accounts for the respective divisions.
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. 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 controls 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 Profit and Loss Account, 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 and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 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, 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
subsection (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) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of Our Report of even date to
the members of Apollo Hospitals Enterprise Limited. On the accounts of
the company for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) The company has a program of physical verification of its fixed
assets by which all fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the company and
the nature of its assets. According to the information and explanations
given to us, no material discrepancies were observed by the management
on such verification.
(c) In our opinion and according to the information and explanations
given to us, the fixed assets that have been sold/disposed off during
the year do not constitute a substantial part of the total fixed assets
of the company. Hence, the going concern assumption has not been
affected.
2. (a) Stock of medicines, stores, spares, consumable, chemicals lab
materials and surgical instruments have been physically verified at
reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stock of
medicines, stores, spares, consumable, chemicals lab materials and
surgical instruments followed by the management are reasonable and
adequate in relation to the size of the company and the nature of its
business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses 3 (b),
3(c) and 3 (d) of the order are not applicable to the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that some of the
items purchased are of special nature and suitable alternatives sources
do not exists for obtaining comparable quotations, there is generally
an adequate internal control procedure commensurate with the size of
the company and the nature of its business, for the purchase stores,
medicines and fixed assets for sale of goods and services. During the
course of our audit, we have not observed any major weaknesses in the
internal control system.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and provisions of Section 58A, Section 58AA and
other relevant provisions of the Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public including unclaimed deposits matured in
earlier years that are outstanding during the year. To the best of our
knowledge and according to the information and explanations given to
us, no order has been passed by the Company Law Board, National Company
LawTribunal or Reserve Bank of India or any Court or any other Tribunal
on the Company in respect of the aforesaid deposits.
7. The Company has appointed firms of Chartered Accountants, including
a Private Limited Company as Internal Auditors for its various
Divisions and pharmacies. On the basis of the reports submitted by them
to the management, in our opinion, the internal audit system is
reasonable having regard to the size and nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under Section 209(1) (d) of the Companies Act, 1956 for any of the
activities of the Company.
9. (a) According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Service tax, Customs Duty, Cess, Wealth Tax and other statutory dues
applicable to it. To the best of our knowledge and according to the
information and explanations given to us, there are no arrears of
outstanding statutory dues as at 31st March 2013 for a period of more
than six months from the date they became payable. To the best of our
knowledge and belief and according to the information and explanations
given to us, excise duty is not applicable to this Company.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues disputed with
respect to Cess, Wealth Tax and Service tax. The particulars of Sales
tax, Customs duty and Income tax which have not been deposited on
account of any dispute are as follows:
Name of the statute Nature of the Amount
dues (Rs. in million)
31.03.2013
Andhra Pradesh Sales tax 1.04
General Sales Tax
Customs Act, Customs duty 25.99
1962
Value Added Value Added Tax 2.27
Tax Act, 2004
40.86
38.95
Income Tax Act, Income
1961 Tax 77.24
136.76
0.11
TOTAL 323.22
Name of the Statute Period to which the Forum where dispute is
amount relates pending
Andhra Pradesh
General
Sales Tax Assessment Years @ Appellate Tribunal
2002-03,2003-04, Hyderabad
2004-05,2010-11
Customs Act 1962 1996,1997 # Assistant Collector of
Customs (Chennai &
Hyderabad)
Value Added Tax
Act 2004 2008-09,2009-10, ## Deputy Commissioner
2010-11 of Commercial Tax
(Enforcement), Mysore
Assessment Year Department has gone on
2008-2009, appeal to ITAT
2001-02
Assessment Year Department has filed
1996-1997, appeal before Madras High
1997-1998 Court
1999-2000,
2000-2001
Income Tax Act 1961 Assessment Year CIT (Appeals)
2009-2010 &
2010-2011
Assessment Year @@ Honourable
2000-2001 Supreme Court
Assessment Year CIT (Appeals)
2010-2011 &
2011-2012
@ Refer Clause (i) (c) Note 29 - Notes forming part of Accounts
@@ Refer Clause (i) (c) Note 29 - Notes forming part of Accounts
# Refer Clause (i) (c) Note 29 - Notes forming part of Accounts
## Refer Clause (i) (c) Note 29 - Notes forming part of Accounts
10. In our opinion and according to the information and explanations
given to us, the Company has no accumulated losses as at 31st March
2013. The Company has also not incurred cash losses in the financial
year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of any dues to
financial institutions, banks and debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and 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 Company is not a Chit Fund, Nidhi, Mutual Benefit Fund
or Society and hence Clause (xiii) of the Companies(Auditor''s Report)
Order, 2003, as amended by the Companies ( Auditor''s Report) (
Amendment) Order, 2004 is not applicable to the Company.
14. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities, debentures and other investments dealt in by the
Company and timely entries have been made in the records. We also
report that the Company has held and dealt with shares, securities,
debentures and other investments in its own name.
15. In our opinion and according to the information and explanations
given to us, the Company has given guarantees for loans taken by Joint
Venture Companies, subsidiaries ,from banks and financial institutions,
the terms and conditions whereof are not prejudicial to the interest of
the Company.
16. In our opinion and according to the information and explanations
given to us, the Company has availed term loans and the said term loans
have been used for the purpose for which the term loans have been
obtained
17. In our opinion and according to the information and explanations
given to us, the Company has not used any funds raised on short term
basis for long term investments.
18. The Company has issued and allotted 3,276,922 equity warrants
convertible into equity shares of nominal value of Rs. 5/- each at
premium of Rs. 467.46 per share on 5th February 2011 to a promoter
covered in the register maintained under section 301 of the Companies
Act 1956. The issue price is at a minimum price of Rs. 472.46 fixed in
accordance with the guidelines for preferential issues of the
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations 2009. Accordingly the promoter has paid 25%
of the consideration @Rs.472.46 per warrant on the date of allotment.
On receipt of the balance 75% of the consideration from the promoter,
the Company alloted 3,276,922 equity shares of nominal values of Rs.
5/- each at a premium of Rs. 467.46 per share on 25th July 2012 which
is within 18 months from the date of allotment of warrants.
19. The Company had issued 10.30% Secured Redeemable Non-convertible
debentures in the year 2010-11 and also issued 10.15% Secured
Redeemable Non-convertible debentures in the year 2011-12 for which a
pari- passu first charge on all fixed assets of the Company has been
created. During the year 2012-13 the Company has issued 9.80% Secured
Redeemable Non-Convertible debentures for which a pari-passu first
charge on all fixed assets of the Company has been created.
20. During the year the management has not raised money through public
issue and hence we offer no comments on the same.
21. According to the information and explanations given to us, by the
Company, no fraud on or by the Company has been noticed or reported,
during the year.
17, Bishop Wallers Avenue (West), For M/s S Viswanathan
CIT Colony, Mylapore, Chartered Accountants
Chennai- 600 004 FRN : 004770S
V C Krishnan
Place: Chennai Partner
Date :20th May 2013 Membership No: 022167
Mar 31, 2012
1. We have audited the attached Balance Sheet of APOLLO HOSPITALS
ENTERPRISE LIMITED as at 31st March 2012, the related Statement of
Profit and Loss and the Cash Flow statement for the year ended on that
date annexed thereto. 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement(s). 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. We have also considered the independent audit observations of the
divisional auditors for the Pharmacy Division, Projects Division,
Hyderabad Division, Bilaspur Division, Mysore Division, Vizag Division,
Pune Division, Karim Nagar Division and Mandya Division for forming an
opinion on the accounts for the respective Divisions.
4. As required by the Companies (Auditor's Report) Order 2003, as
amended by the Companies (Auditor's Report) Amendment) Order 2004,
issued by the Central Government of India, in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, and on the basic of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanation given to
us, we set out in the Annexure a statement on the matters specified in
paragraph 4 and 5 of the said Order.
5. Further to our comments in the Annexure referred to in paragraph 4
above, we report that:
i) 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 ;
ii) 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;
iii) 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 ;
iv) In our opinion, the Balance Sheet , the Statement of Profit and
Loss and the Cash Flow Statement dealt with by this report comply with
the Accounting Standards specified by the Institute of Chartered
Accountants of India, referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the directors is 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, and
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto , give the information
required by the Companies Act, 1956, in the prescribed manner and also
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 Statement of Profit and Loss, of the PROFIT of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The Company has a programme of physical verification of its fixed
assets by which all fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. According to the information and explanations
given to us, no material discrepancies were observed by the management
on such verification.
c) In our opinion and according to the information and explanation
given to us, the fixed assets that have been sold / disposed off during
the year do not constitute a substantial part of the total fixed assets
of the Company. Hence, the going concern assumption has not been
affected.
ii) a) Stock of medicines, stores, spares, consumables, chemicals lab
materials and surgical instruments have been physically verified at
reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stock of
medicines, stores, spares, consumables, chemicals lab materials and
surgical instruments followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
c) In our opinion and according to the information and explanations
given to us and on the basis of our examination, the Company is
maintaining proper records of inventory. Further in our opinion and
according to the information and explanations given to us no material
discrepancies were noticed between the physical stocks verified and
book records.
iii) In respect of loans, secured or unsecured, granted to Companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956.
a) The Company has given unsecured loan to its subsidiary on various
terms and conditions. In respect of the said loan the year end balance
is ' 234 million.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions given
by the Company are prima facie not prejudicial to the interest of the
Company.
c) In our opinion and according to the information and explanations
given to us, the Company is regular in receipt of interest as per the
terms and conditions. With respect to the principal we have been
informed that the subsidiary Company will start repaying as and when
the subsidiary makes positive cash flows.
d) In our opinion and according to the information and explanations
given to us, reasonable steps have been taken by the Company to recover
the principal and interest where the amount overdue is more than rupees
one lakh.
e) The Company has not taken any loans, secured or unsecured, from
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence sub clauses (e),
(f) and (g) of clause (iii) of the Order are not applicable to the
Company.
iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that some of the
items purchased are of a special nature and suitable alternative
sources do not exist for obtaining comparable quotations, there are
adequate internal control procedures commensurate with the size of the
Company and the nature of its business for the purchase of stores,
medicines and fixed assets and for sale of goods and services. During
the course of our audit, we have not observed any major weaknesses in
the internal control system.
v) a) In our opinion, the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and provisions of Section 58A, Section 58AA and
other relevant provisions of the Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public including unclaimed deposits matured in
earlier years that are outstanding during the year. To the best of our
knowledge and according to the information and explanations given to
us, no order has been passed by the Company Law Board, National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company in respect of the aforesaid deposits.
vii) The Company has firms of Chartered Accountants, including a
Private Limited Company as Internal Auditors for its various Divisions
and pharmacies. On the basis of the reports submitted by them to the
management, in our opinion, the internal audit system is reasonable
having regard to the size and nature of its business.
viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under Section 209(1) (d) of the Companies Act, 1956 for any of the
activities of the Company.
ix) a) According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees- State Insurance, Income Tax, Sales Tax,
Service tax , Customs Duty, Cess, Wealth Tax and other statutory dues
applicable to it. To the best of our knowledge and according to the
information and explanations given to us, there are no arrears of
outstanding statutory dues as at 31st March 2012 for a period of more
than six months from the date they became payable. To the best of our
knowledge and belief and according to the information and explanations
given to us, excise duty is not applicable to this Company.
b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues disputed with
respect to Cess, Wealth Tax and Service tax. The particulars of Sales
tax, Customs duty and Income tax which have not been deposited on
account of any dispute are as follows:
Amount
Name of the statute Nature of the dues (Rs in million)
31.03.2012
Andhra Pradesh Sales tax 1.41
General Sales Tax
Customs Act, 1962 Customs duty 99.70
Value Added Tax Act, Value Added Tax 2.27
2004
Income Tax Act, 1961 Income Tax 191.14
28.04
40.85
136.76
TOTAL 500.17
Name of the Statute Period to which the Forum where
amount relates dispute is pending
Andhra Pradesh Assessment Years @ Appellate Tribunal
General Sales Tax 2002-03, 2003-04, Hyderabad
2004-05, 2010-11
Customs Act,1962 1996,1997 # Assistant Collector
of Customs (Chennai &
Hyderabad)
Value Added Tax Act 2008-09, ##Deputy
2004 2009-10, 2010-11 Commissioner of
Commercial Tax
(Enforcement), Mysore
Income Tax Act,1961 Assessment Years Department has gone
2001-2002, 2004-05, on appeal to ITAT
2006-2007, 2007-2008
Assessment Year Department has filed
1996-1997, 1997-1998, appeal before Madras
1999-2000, 2000-2001 High Court
Assessment Year CIT (Appeals)
2008-2009 & 2009-2010
Assessment Year @@Honorable
2000-2001 Supreme Court
Total - -
@ Refer Clause (i) (c) Note 30 - Notes forming part of Accounts Refer
Clause (i) (c) Note 30 - Notes forming part of Accounts
# Refer Clause (i) (c) Note 30 - Notes forming part of Accounts
## Refer Clause (i) (c) Note 30 - Notes forming part of Accounts
x) In our opinion and according to the information and explanations
given to us, the Company has no accumulated losses as at 31st March
2012. The Company has also not incurred cash losses in such financial
year and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of any dues to
financial institutions, banks and debenture holders.
xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion and according to the information and explanations
given to us, the Company is not a Chit Fund, Nidhi, Mutual Benefit Fund
or Society and hence Clause (xiii) of the Companies(Auditor's Report)
Order, 2003, as amended by the Companies (Auditor's Report) (Amendment)
Order, 2004 is not applicable to the Company.
xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities, debentures and other investments dealt in by the
Company and timely entries have been made in the records. We also
report that the Company has held and dealt with shares, securities,
debentures and other investments in its own name.
xv) In our opinion and according to the information and explanations
given to us, the Company has given guarantees for loans taken by Joint
Venture Companies, subsidairies ,from banks and financial institutions,
the terms and conditions whereof are not prejudicial to the interest of
the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has availed term loans and a portion of these
loans have been applied for the purpose for which the loans have been
obtained pending utilization of the term loan for the stated purpose,
the funds have been temporarily invested in Mutual Funds and Short Term
Deposits.
xvii) In our opinion and according to the information and explanations
given to us, the Company has not used any funds raised on short term
basis for long term investments.
xviii)The Company has issued and allotted 3,089,242 equity share of
nominal value of Rs 5/- each at premium of Rs 380.88 per share on 10th
December 2011 to a Promoter covered in the register maintained under
section 301 of the Companies Act,1956. The issue price is at minimum
price of Rs 385.88 fixed in accordance with the guidelines for
preferential issues of the Securities Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations 2009. Accordingly the
party has paid the balance 75% of the consideration @ Rs 385.88 per
warrant.
The Company has issued and allotted 3,276,922 warrants convertible into
equity shares nominal value of Rs. 5/- each at a premium of Rs 467.46
per share on 5th February 2011 to a Promoter covered in the register
maintained under section 301 of the Companies Act, 1956. The issue
price is at minimum price of Rs 472.46 fixed in accordance with the
guidelines for preferential issues of the Securities Exchange Board of
India (Issue of Capital and Disclosure Requirements) Regulations 2009.
Accordingly the party has paid 25% of the consideration @ Rs 472.46 per
warrant on the date of allotment. The Balance 75% is payable on the
exercise of option for conversion within 18 months of date of
allotment.
xix) The Company has issued 10.30% Secured Redeemable Non-convertible
debentures in the year 2010-11 and 10.15% Secured Redeemable
Non-convertible debentures during the year on which a pari-passu first
charge on all fixed assets of the Company has been created.
xx) During the year the management has not raised money through public
issue and hence we offer no comments on the same.
xxi) According to the information and explanations given to us, by the
Company, no fraud on or by the Company has been noticed or reported,
during the year.
17, Bishop Wallers Avenue (West), For M/s.S.VISWANATHAN
CIT Colony, Mylapore, Chartered Accountants
Chennai - 600 004. Firm Registration No. 004770S
V.C. KRISHNAN
Place: Chennai Partner
Date : 29th May 2012 Membership No. 022167
Mar 31, 2011
1. We have audited the attached Balance Sheet of APOLLO HOSPITALS
ENTERPRISE LIMITED as at 31st March 2011, the related Profit and Loss
Account and the Cash Flow statement for the year ended on that date
annexed thereto. 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement(s). 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. We have also considered the independent audit observations of the
divisional auditors for the Pharmacy Division, Projects Division,
Hyderabad Division, Bilaspur Division, Mysore Division, Vizag Division,
Pune Division, Karim Nagar Division and Mandya Division for forming an
opinion on the accounts for the respective Divisions.
4. As required by the Companies (Auditors Report) Order 2003, as
amended by the Companies (Auditors Report) (Amendment) Order 2004,
issued by the Central Government of India, in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we set out in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
5. In the absence of any notification from the Central Government with
respect to the Cess payable under Section 441A of the Companies Act,
1956, no quantification is made. Hence, no opinion is given on Cess
unpaid or paid, as per the provisions of Section 227(3) (g) of the
Companies Act, 1956.
6. Further to our comments in the Annexure referred to in paragraph 4
above, we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards specified by the Institute of Chartered
Accountants of India, referred to in subsection (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956, and
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto , give the information
required by the Companies Act, 1956, in the prescribed manner and also
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 2011;
(b) in the case of the Profit and Loss Account, of the PROFIT of the
Company for the year ended on that date and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure to the Auditors Report
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a programme of physical verification of its fixed
assets by which all fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the company and
the nature of its assets. According to the information and explanations
given to us, no material discrepancies were observed by the management
on such verification.
(c) In our opinion and according to the information and explanation
given to us, the fixed assets that have been sold /disposed off during
the year do not constitute a substantial part of the total fixed assets
of the Company. Hence, the going concern assumption has not been
affected.
(ii) (a) Stock of medicines, stores, spares, consumables, chemicals lab
materials and surgical instruments have been physically verified at
reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stock of
medicines, stores, spares, consumables, chemicals lab materials and
surgical instruments followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination, the Company is
maintaining proper records of inventory. Further in our opinion and
according to the information and explanations given to us no material
discrepancies were noticed between the physical stocks verified and
book records.
(iii) In respect of loans, secured or unsecured, granted to companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956.
(a) The company has given unsecured loan to its subsidiary on various
terms and conditions. In respect of the said loan the year end balance
is Rs. 234 million.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions given
by the company are prima facie not prejudicial to the inter- est of the
company.
(c) In our opinion and according to the information and explanations
given to us, the Company is regu- lar in receipt of interest as per the
terms and conditions. With respect to the principal we have been
informed that the subsidiary company will start repaying as and when
the subsidiary makes positive cash flows.
(d) In our opinion and according to the information and explanations
given to us, reasonable steps have been taken by the company to recover
the principal and interest where the amount overdue is more than rupees
one lakh.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other par- ties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence sub clauses (e),
(f) and (g) of clause (iii) of the Order are not applicable to the
Company.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that some of the
items purchased are of a special nature and suitable alternative
sources do not exist for obtaining comparable quotations, there are
adequate internal control procedures commen- surate with the size of
the Company and the nature of its business for the purchase of stores,
medicines and fixed assets and for sale of goods and services. During
the course of our audit, we have not observed any major weaknesses in
the internal control system.
(v) (a) In our opinion, the particulars of contracts or arrangements
referred to in Section 301 of the Com- panies Act, 1956 have been
entered in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanation
given to us the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and provisions of Section 58A, Section 58AA and
other relevant provisions of the Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public including unclaimed deposits matured in
earlier years that are outstanding during the year. To the best of our
knowledge and according to the information and explanations given to
us, no order has been passed by the Company Law Board, National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company in respect of the aforesaid deposits.
(vii) The Company has firms of Chartered Accountants, including a
Private Limited Company as Internal Audi- tors for its various
divisions and pharmacies. On the basis of the reports submitted by them
to the man- agement, in our opinion, the internal audit system is
reasonable having regard to the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under Section 209(1) (d) of the Companies Act, 1956 for any of the
activi- ties of the Company.
(ix) (a) According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Edu-
cation and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Service tax , Customs Duty, Cess, Wealth Tax and other
statutory dues applicable to it. To the best of our knowledge and
according to the information and explanations given to us, there are no
arrears of outstanding statutory dues as at 31st March 2011 for a
period of more than six months from the date they became payable. To
the best of our knowledge and belief and according to the informa- tion
and explanations given to us, excise duty is not applicable to this
Company.
(b) According to the information and explanations given to us and the
records of the company ex- amined by us, there are no dues disputed
with respect to Cess, Wealth Tax and Service tax. The particulars of
Sales tax, Customs duty and Income tax which have not been deposited on
account of any dispute are as follows:
Name of the Nature of (Rs.in million) Period to which the
statute the dues 31-03-2011 amount relates
Andhra Pradesh Assessment Years 2002-03,
General Sales Sales tax 1.65 2003-04,2004-05,2010-11
Tax
Customs Act, Customs 99.70 1996, 1997
1962 duty
Value Added Value Added 2.27 2008-09, 2009-10, 2010-11
Act, 2004 Tax
10.34 Assessment Year 2002-03
Assessment Years
1997-1998, 2001-2002,
193.44 2004-05, 2006-2007,
Income Tax Income Tax 2007-2008
Act, 1961
6.89 1999-2000
37.03 2008-2009
136.76 Assessment Year 2000-2001
TOTAL 488.08
Name of the Statute Forum where dispute is pending
Andhra Pradesh @Appellate Tribunal
General Sales Tax Hyderabad
Customs Act, 1962 # Assistant Collector of Customs
(Chennai a Hyderabad)
Value Added Tax ##Deputy Commissioner of Commercial Tax
Act, 2004 (Enforcement), Mysore
Income Tax Appellate Tribunal
(ITAT) has reverted the case
back to the Assessing Officer
Department has gone on
Income Tax Act, 1961 appeal to ITAT
Department has filed appeal
before Madras High Court
CIT (Appeals)
Honorable Supreme Court
î Refer Clause (3) (i) Schedule (J) - Notes forming part of Accounts #
Refer Clause (3) (g) Schedule (J) - Notes forming part of Accounts ##
Refer Clause (3) (c) Schedule (J) - Notes forming part of Accounts
(x) In our opinion and according to the information and explanations
given to us, the Company has no ac- cumulated losses as at 31st March
2011. The Company has also not incurred cash losses in the financial
year and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not de- faulted in repayment of any dues
to financial institutions, banks and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a Chit Fund, Nidhi, Mutual Benefit Fund
or Society and hence Clause (xiii) of the Companies(Auditors Report)
Order, 2003, as amended by the Companies ( Auditors Report) (
Amendment) Order, 2004 is not appli- cable to the Company.
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities, debentures and other investments dealt in by the
Company and timely entries have been made in the records. We also
report that the Company has held and dealt with shares, securities,
debentures and other investments in its own name.
(xv) In our opinion and according to the information and explanations
given to us, the Company has given guarantees for loans taken by Joint
Venture Companies, from banks and financial institutions, the terms and
conditions whereof are not prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has availed term loans and a portion of these
loans have been applied for the purpose for which the loans have been
obtained pending utilization of the term loans for the stated purpose,
the funds have been temporarily invested in mutual funds and short term
deposits.
(xvii) In our opinion and according to the information and explanations
given to us, the Company has not used any funds raised on short term
basis for long term investments.
(xviii) The Company has issued and allotted 1.54 million equity
warrants convertible into equity shares nominal value of Rs. 10/- each
at premium of Rs 761.76 per share on 12th June 2010 to a Promoter
covered in the register maintained under section 301 of the Companies
Act, 1956. The issue price is at minimum price of Rs 771.76 fixed in
accordance with the guidelines for preferential issues of the
Securities Exchange Board of India (Issue of Capital and Disclosure
Requirements)Regulations 2009 .Accordingly the party has paid 25% of
the consideration @ 771.76 per warrant on the date of allotment. The
balance 75% is payable on the exercise of option for conversion within
18 months from date of allotment. Consequent to the splitting of one
equity share of Rs.10/- into two equity shares of Rs.5/- each the
warrants outstanding as on 31st March 2011 is 3.08 million.
The Company has issued and allotted 3.27 million equity warrants
convertible into equity shares nominal value of Rs. 5/- each at premium
of Rs 467.46 per share on 5th February 2011 to a Promoter covered in
the register maintained under section 301 of the Companies Act, 1956.
The issue price is at minimum price of Rs 472.46 fixed in accordance
with the guidelines for preferential issues of the Securities Ex-
change Board of India (Issue of Capital and Disclosure Requirements)
Regulations 2009. Accordingly the party has paid 25% of the
consideration @ 472.46 per warrant on the date of allotment. The
balance 75% is payable on the exercise of option for conversion within
18 months from date of allotment.
(xix) The Company has issued 10.30% Secured Redeemable Non-Convertible
debentures to Life Insurance Corporation of India (LIC) during the year
on which a pari-passu first charge on all fixed assets of the Company
has been created.
(xx) During the year the management has not raised money through public
issue and hence we offer no com- ments on the same.
(xxi) According to the information and explanations given to us, by the
Company, no fraud on or by the Com- pany has been noticed or reported,
during the year.
For M/s. S. VISWANATHAN
Chartered Accountants
Firm Registration No: 004770S
17, Bishop Wallers Avenue (West),
Mylapore,
Chennai - 600 004.
V.C. KRISHNAN
Partner
Membership No.: 022167
Place: Chennai
Date :24th May 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of APOLLO HOSPITALS
ENTERPRISE LIMITED as at 31st March 2010, the related Profit and Loss
Account and the Cash Flow statement for the year ended on that date
annexed thereto. 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement(s). 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. We have also considered the independent audit observations of the
divisional auditors for the Pharmacy Division, Projects Division,
Hyderabad Division, Bilaspur Division, Mysore Division, Vizag Division,
Pune Division, Karim Nagar Division and Mandya Division for forming an
opinion on the accounts for the respective Divisions.
4. As required by the Companies (Auditors Report) Order 2003, as
amended by the Companies (Auditors Report) (Amendment) Order 2004,
issued by the Central Government of India, in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we set out in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
5. In the absence of any notification from the Central Government with
respect to the Cess payable under Section 441A of the Companies Act,
1956, no quantification is made. Hence, no opinion is given on Cess
unpaid or paid, as per the provisions of Section 227(3) (g) of the
Companies Act, 1956.
6. Further to our comments in the Annexure referred to in paragraph 4
above, we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet , the Profit and Loss Account
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards specified by the Institute of Chartered
Accountants of India, referred to in subsection (3C) of Section 211 of
the Companies Act, 1956;
(v) On the basis,, of written representations received from the
directors, as on March 31 ,2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of clause
(g) of
sub-section (1) of Section 274 of the Companies Act, 1956, and
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto, give the information
required by the Companies Act, 1956, in the prescribed manner and also
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 PROFIT of the
company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b)The Company has a programme of physical verification of its fixed
assets by which all fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the company and
the nature of its assets. According to the information and explanations
given to us, no material discrepancies were observed by the management
on such verification.
(c) In our opinion and according to the information and explanation
given to us, the fixed assets that have been sold /disposed off during
the year do not constitute a substantial part of the total fixed assets
of the Company. Hence, the going concern assumption has not been
affected.
(ii) (a) Stock of medicines, stores, spares, consumables, chemicals lab
materials and surgical instruments have been physically verified at
reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stock of
medicines, stores, spares, consumables, chemicals lab materials and
surgical instruments followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination, the Company is
maintaining proper records of inventory. Further in our opinion and
according to the information and explanations given to us no material
discrepancies were noticed between the physical stocks verified and
book records.
(iii) In respect of loans, secured or unsecured, granted to companies,
firms or other parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956.
(a) The company has given unsecured loan to its subsidiary on various
terms and conditions. In respect of the said loan the year end balance
is Rs. 214 million.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions given
by the company are prima facie not prejudicial to the interest of the
company.
(c) In our opinion and according to the information and explanations
given to us, the Company is regular in receipt of interest as per the
terms and conditions. With respect to the principal we have been
informed that the subsidiary company will start repaying as and when
the subsidiary makes positive cash flows.
(d) In our opinion and according to the information and explanations
given to us, reasonable steps have been taken by the company to recover
the principal and interest where the amount overdue is more than rupees
one lakh.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence sub clauses (e),
(f) and (g) of clause (iii) of the Order are not applicable to the
Company.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that some of the
items purchased are of a special nature and suitable alternative
sources do not exist for obtaining comparable quotations, there are
adequate internal control procedures commensurate with the size of the
Company and the nature of its business for the purchase of stores,
medicines and fixed assets and for sale of goods and services. During
the course of our audit, we have not observed any major weaknesses in
the internal control system.
(v) (a) In our opinion, the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanation
given to us the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and provisions of Section 58A, Section 58AA and
other relevant provisions of the Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public including unclaimed deposits matured in
earlier years that are outstanding during the year. To the best of our
knowledge and according to the information and explanations given to
us, no order has been passed by the Company Law Board, National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the company in respect of the aforesaid deposits.
(vii) The Company has firms of Chartered Accountants including a
Private Limited Company as Internal Auditors for its various Divisions
and pharmacies. On the basis of the reports submitted by them to the
management, in our opinion, the internal audit system is reasonable
having regard to the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under Section 209(1) (d) of the Companies Act, 1956 for any of the
activities of the Company.
(ix) (a)According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Service tax , Customs Duty, Cess, Wealth Tax and other statutory dues
applicable to it. To the best of our knowledge and according to the
information and explanations given to us, there are no arrears of
outstanding statutory dues as at 31st March 2010 for a period of more
than six months from the date they became payable. To the best of our
knowledge and belief and according to the information and explanations
given to us, excise duty is not applicable to this Company.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues disputed with
respect to Cess, Wealth Tax and Service tax. The particulars of Sales
tax, Customs duty and Income tax which have not been deposited on
account of any dispute are as follows:
Name of the Nature of Amount Period to which the Forum where
dispute is
statute the dues (Rs.) amount relates pending
Andhra
Pradesh Assessment Years
Sales tax 1,013,687 2000-01 Appellate Tnbuna
Hyderabad
General
Sales Tax 2001-02 ft 2003-04
# Assistant
Collector
of Customs
Customs
Act, 1962 Customs 99,700,026 1996,1997
duty (Chennai &
Hyderabad)
Value
Added Tax Value ##Deputy
Commissioner of
Act 2004 Added Tax 1,273,277 2008-09 Commercial Tax
(Enforcement),
Mysore
10,342,623 Income Tax
Appellate Tribunal
Assessment Years
has reverted the
case back to
the Assessing
Officer
Income
Tax Act, incorne Assessment
Tax Years 1997-
1961 168,180,493* 1998,1998-1999,
2001- CIT (Appeals)
2002, 2006-2007,
2007-08
136,760,038** Honourable
Supreme Court
2000-2001
TOTAL 1417,270,144 1
@ Refer Clause (3) (i) Schedule (J) - Notes forming part of Accounts
# Refer Clause (3) (g) Schedule (J) - Notes forming part of Accounts ##
Refer Clause (3) (c) Schedule (J) - Notes forming part of Accounts
* The disputed dues other than Rs. 136.70 million stayed by supreme
court has been adjusted by the Income Tax Department from various
amounts refundable to the Company.
** Refer Clause (3) (d) Schedule (J) - Notes forming part of Accounts.
(x) In our opinion and according to the information and explanations
given to us, the company has no accumulated losses as at 31st March
2010. The company has also not incurred cash losses in such financial
year and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of any dues to
financial institutions, banks and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations
given to us, the company is not a Chit Fund, Nidhi, Mutual Benefit Fund
or Society and hence Clause (xiii) of the Companies(Auditors Report)
Order, 2003, as amended by the Companies ( Auditors Report) (
Amendment) Order , 2004 is not applicable to the company
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities, debentures and other investments dealt in by the
company and timely entries have been made in the records. We also
report that the company has held and dealt with shares, securities,
debentures and other investments in its own name.
(xv) In our opinion and according to the information and explanations
given to us, the Company has given guarantees for loans
taken by Joint Venture Companies from banks and financial institutions,
the terms and conditions whereof are not prejudicial to the interest of
the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has availed term loans and a portion of these
loans have been applied for the purpose for which the loans have been
obtained, Pending utilization of the term loan for the stated purpose,
the funds have been temporarily kept in a separate account.
(xvii) In our opinion and according to the information and explanations
given to us, the Company has not used any funds raised on short term
basis for long term investments.
(xviii)The 1,549,157 share warrants issued to a party covered in the
register maintained under Section 301 of the Companies Act, 1956 during
the year 2007-08 at the minimum price of Rs.497.69 as fixed in
accordance with the guidelines for preferential issue of the Securities
and Exchange board of India (Disclosure and Investor Protection)
Guidelines 2000 has been converted into Equity shares of Rs. 10/- each
fully paid on 18th April 2009. (Refer Clause 12 of Schedule J- Notes
forming part of Accounts)
(xix) The Company has not issued any debentures during the year. Hence
clause (xix) of the Order is not applicable to the Company.
(xx) During the year the management has not raised money through public
issue and hence we offer no comments on the same.
(xxi) According to the information and explanations given to us, by the
Company, no fraud on or by the Company has been noticed or reported,
during the year.
17, Bishop Wallers Avenue (West), For M/s. S. VISWANATHAN
CIT Colony, Mylapore, Chartered Accountants
Chennai - 600 004. Firm Registration No:004770S
Place : Chennai V.C. KRISHNAN
Date : 28th May 2010 Partner
Membership No.: 22167