Mar 31, 2018
Report on the Ind AS Financial Statements
1. We have audited the accompanying Ind AS financial statements of Lotus Eye Hospital and Institute Limited (âthe companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information, (hereinafter referred to as âInd AS Financial Statementsâ).
Managementâs Responsibility for the Ind AS Financial Statements
2. 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 and presentation of these Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued there under. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 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
3. Our responsibility is to express an opinion on these 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 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorsâ judgement, including the assessment of the risks of material misstatement of the 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 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 accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the 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 Ind AS Financial Statements.
Opinion
4. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
5. As required by the Companies (Auditorsâ 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, to the extent applicable.
6. Further to our comments in Annexure A, as required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c . The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder;
e. On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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, we give our separate Report in âAnnexure Bâ.
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 Ind AS financial statements - Refer Note 31 to the Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses does not arise;
iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ TO INDEPENDENT AUDITORSâ REPORT
[Referred to in Paragraph 5 under âReport on Other Legal and Regulatory Requirementsâ of our report of even date]
(i) (a) The Company is in the process of updating its records showing full particulars, including quantitative details and situation of fixed assets. However an item wise list of fixed assets containing the particulars for calculation of depreciation is maintained.
(b) All the fixed assets have not been physically verified by the management during the year but there is a phased programme of verification based on the item wise list maintained for computation of depreciation which, in our opinion, needs to be strengthened having regard to the size of the company and nature of its assets. As informed, no material discrepancies were noticed on such verification. However, in the absence of complete information in fixed asset register as stated in clause (a) above, we are unable to comment on the discrepancies.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties recorded as fixed assets in the books of account of the Company are held in the name of the Company. (Except with respect to the buildings on leasehold premises)
(ii) As explained to us, the inventories except goods in transit, have been physically verified by the management during the year and there were no material discrepancies noticed on physical verification carried out during the year. In our opinion, the frequency of such verification is reasonable.
(iii) As informed, 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 Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable to the Compan y.
(iv) According to the information and explanations given to us, the Company has not granted any loans, made investments, provided guarantees or securities, and hence reporting under clause 3(iv) of the order is not applicable to the Company.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
(vi) According to the information and explanations given to us, the Companyâs turnover in the immediately preceding financial year being within the stipulated limits as prescribed under Section 148(1) of the Act and the rules made thereunder, the Company is not required to maintain the cost records.
(vii) (a) According to the information and explanations provided to us, the company has been generally regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, value added tax, goods and service tax, customs duty, excise duty, cess and any other material statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax, sales tax, service tax, value added tax, goods and service tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, were outstanding, at the year end, for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, goods and service tax, customs duty, excise duty on account of any dispute, are as follows:
Nature of statute |
Nature of Dues |
Amount in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Kerala Value Added Tax Act |
VAT Liability |
1.89/- |
01.04.2012 to 31.03.2013 |
Kerala Value Added Tax Appellate Tribunal |
Kerala Value Added Tax Act |
VAT Liability |
5.16/- |
01.04.2013 to 31.03.2014 |
Kerala Value Added Tax Appellate Tribunal |
Kerala Value Added Tax Act |
VAT Liability |
9.71/- |
01.04.2011 to 31.03.2012 |
High Court, Kerala |
Kerala Value Added Tax Act |
VAT Liability |
11.90/- |
01.04.2011 to 31.03.2012 |
High Court, Kerala |
Kerala Value Added Tax Act |
VAT Liability |
2.73/- |
01.04.2010 to 31.03.2011 |
The Assistant Commissioner (Appeals) |
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or a bank. The Company has no debentures or loans and borrowings payable to government during the year.
(ix) The company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans during the year and hence reporting under clause 3(ix) of the Order is not applicable.
(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) According to the information and explanations given to us, managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.
(xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the financial statements etc., as required by the applicable Indian 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. Therefore, clause 3(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 directors or persons connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO INDEPENDENT AUDITORSâ REPORT
[Referred to in paragraph 6(f) under âReport on Other Legal and Regulatory Requirementsâ 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 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Lotus Eye Hospital and Institute Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS 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 specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 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 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 (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 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, 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, 2018, 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 ICAI.
For Anbarasu & Jalapathi
Chartered Accountants
Firm Registration No.: 010795S
Place : Coimbatore
Date : 29th May, 2018 (Sd.) S. Anbarasu
Partner
Membership No.: 212299
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying financial statements of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited) ("the Companyâ), which comprise the Balance Sheet as at March 31, 2017,the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these 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 ("the Act"). 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.
Auditor''s 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 thereunder.
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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the company''s directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
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, of the state of affairs of the Company as at 31st March, 2017, and its profit and its cash flows for the year ended on that date.
Emphasis of Matters:
We draw attention to the following matters in the Notes to the financial statements.
Note No.1 (B) (d) to the financial statements, which describes the impact of change in the method of valuation of inventory of optical and lens.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the Annexure "A", a statement on the matters specified in Paragraphs 3 and 4 of the Order, to the extent applicable
2. As required by section 143 (3) of the Act, we report to the extent applicable 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, 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, 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, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of section 164 (2) of the Companies Act, 2013; and
f. With respect to adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate report in ''Annexure B'', and
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2017 on its financial position in its financial statements
- Refer to note 28 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November, 2016 to 30th December 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the company.
- Refer to note 29 to the financial statements.
Referred to in Paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" in the Independent Auditors'' report of even date to the members of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited) on the financial statements for the year ended 31st March, 2017.
(i) a) The company is in the process of updating its records showing full particulars including quantitative details and situation of fixed assets. However an item wise list of fixed assets containing the particulars for calculation of depreciation is maintained.
b) All the fixed assets have not been physically verified by the management during the year but there is a phased programme of verification based on the item wise list maintained for calculation of depreciation which, in our opinion, needs to be strengthened having regard to the size of the company and nature of its assets. As informed, no material discrepancies were noticed on such verification. However, in absence of complete information in fixed asset register as stated in clause (a) above, we are unable to comment on the discrepancies, if any.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the company. (except leasehold land & building''s)
(ii) As explained to us, the inventories except goods in transit, has been physically verified by the Management during the year and there were no material discrepancies were noticed on such verification between the physical stock and the book records. In our opinion, the frequency of such verification is reasonable.
(iii) According to the information and explanations given to us, the Company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions stated in paragraph 3 (iii) (a) and 3 (iii) (b) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, made investments, provided guarantees or security and hence reporting under clause (iv) of the CARO 2016 Order is not applicable.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
(vi) The Company informed us that the Central Government of India has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, for any of the services rendered by the Company.
(vii) a) According to the information and explanations and records provided to us, the undisputed statutory dues including provident fund, income tax, sales tax, customs duty, cess and other material statutory dues applicable to it have generally been regularly deposited with appropriate authorities however, there have been slight delay in a few cases.
According to the information and explanation given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, customs duty, service tax, cess and any other material statutory dues were in arrears as at 31.03.2017 for a period of more than six months from the date they became payable except TDS demands of procedural nature which are under rectification.
b) According to the information and explanations given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and other material statutory dues applicable to it, on account of any dispute, are as follows:
Nature of statute |
Nature of Dues |
Amount in Rs. Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Kerala Value Added Tax Act |
VAT Liability |
1.89/- |
01.04.2012 to 31.03.2013 |
The Assistant Commissioner (Appeals) |
Kerala Value Added Tax Act |
VAT Liability |
5.16/- |
01.04.2013 to 31.03.2014 |
An Appeal to the VAT Appellate Tribunal is under process |
Kerala Value Added Tax Act |
VAT Liability |
9.71/- |
01.04.2011 to 31.03.2012 |
High Court, Kerala |
Kerala Value Added Tax Act |
VAT Liability |
11.90/- |
01.04.2011 to 31.03.2012 |
High Court, Kerala |
Kerala Value Added Tax Act |
VAT Liability |
2.73/- |
01.04.2010 to 31.03.2011 |
The Assistant Commissioner (Appeals) |
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions(s), bank(s) or debenture holder(s). The company did not have any outstanding dues to any financial institutions, government or debenture holders during the year.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 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 year.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 order is not applicable.
(xiii) Based on the information and explanations given to us by the Company, transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details of such transactions have been disclosed in the Financial Statements with applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination and records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) Based on the information and explanations given to us by the Company, the company has not entered into any noncash transactions with directors or persons connected with him and hence provisions of section 192 of the companies Act, 2013 are not applicable.
(xvi) Based on the information and explanations given to us by the Company, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act,1934..
For V E K A M AND ASSOCIATES
Chartered Accountants
Firm Registration No: 05256S
Place : Coimbatore (Sd.) CA M.P. Panneerselvan
Date : 27th May, 2017 Partner
Membership No. 026129
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
To the Members of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited)
Report on the Financial Statements
We have audited the accompanying financial statements of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED,(Formerly Lotus Eye Care Hospital Limited) ( the Company ), which comprise the Balance Sheet as at March 31, 2016,the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management s Responsibility for the Financial Statements The Company s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ( the Act ) with respect to the preparation and presentation of these 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.
Auditor s 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 auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the company s directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
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, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2016 ( the Order ) issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the Annexure A , a statement on the matters specified in Paragraphs 3 and 4 of the Order, to the extent applicable
2. As required by section 143 (3) of the Act, we report to the extent applicable 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, 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, 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, and 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 to adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate report in Annexure B ,
g. With respect to the other matters to be included in the Auditor s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements Refer note 27 Contingent Liabilities to the financial statements;
ii) The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses does not arise;
iii) There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
Referred to in Paragraph 1 under the heading of Report on other Legal and Regulatory Requirements in the Independent
Auditors report of even date to the members of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited) on the financial statements for the year ended 31st March, 2016.
i) a) The company is in the process of updating its records showing full particulars including quantitative details and situation of fixed assets. However an item wise list of fixed assets containing the particulars for calculation of depreciation is maintained.
b) All the fixed assets have not been physically verified by the management during the year but there is a phased programme of verification based on the item wise list maintained for calculation of depreciation which, in our opinion, needs to be strengthened having regard to the size of the company and nature of its assets. As informed, no material discrepancies were noticed on such verification. However, in absence of complete information in fixed asset register as stated in clause (a) above, we are unable to comment on the discrepancies, if any.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the company. (except leasehold land & buildings)
ii) As explained to us, the inventories except goods in transit, has been physically verified by the Management during the year and there were no material discrepancies were noticed on such verification between the physical stock and the book records. In our opinion, the frequency of such verification is reasonable.
iii) According to the information and explanations given to us, the Company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions stated in paragraph 3 (iii) (a) and 3 (iii) (b) of the Order are not applicable.
iv) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, made investments, provided guarantees or security and hence reporting under clause (iv) of the CARO 2016 Order is not applicable.
v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
vi) The Company informed us that the Central Government of India has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, for any of the services rendered by the Company.
vii) a) According to the information and explanations and records provided to us, the undisputed statutory dues including provident fund, employee s state insurance, income tax, sales tax, customs duty, cess and other material statutory dues applicable to it have generally been regularly deposited with appropriate authorities however, there have been slight delay in a few cases.
According to the information and explanation given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, value added tax, customs duty, service tax, cess and any other material statutory dues were in arrears as at 31.03.2016 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and other material statutory dues applicable to it, on account of any dispute, are as follows:
Nature of statute |
Nature of Dues |
Amount in Lakhs) |
Amount Paid in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Kerala Value Added Tax Act |
VAT Liability |
1.89/- |
0.57/- |
01.04.2012 to 31.03.2013 |
The Assistant Commissioner (Appeals) |
Kerala Value Added Tax Act |
VAT Liability |
5.21/- |
1.54/- |
01.04.2013 to 31.03.2014 |
The Assistant Commissioner (Appeals) |
viii) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions(s), bank(s) or debenture holder(s). The company did not have any outstanding dues to any financial institutions, government or debenture holders during the year.
ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purposes for which they were raised.
x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 order is not applicable.
xiii) Based on the information and explanations given to us by the Company, transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details of such transactions have been disclosed in the Financial Statements with applicable accounting standards.
xiv) According to the information and explanations given to us and based on our examination and records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) Based on the information and explanations given to us by the Company, the company has not entered into any non-cash transactions with directors or persons connected with him and hence provisions of section 192 of the companies Act, 2013 are not applicable.
xvi) Based on the information and explanations given to us by the Company, the company has not required to be registered under section 45-IA of the Reserve Bank of India Act,1934.
(Referred to in paragraph 2 (f) under Report on Legal and Regulatory Requirements 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 LOTUS EYE HOSPITAL AND INSTITUTE LIMITED (Formerly Lotus Eye Care Hospital Limited) (the Company ) as of 31 March 2016 in conjunction with our audit of the 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 (ICAI ). 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 the Company s polices, 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Company s 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 Guidance Note ) issued by ICAI and 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 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 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 companyâs 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 disposition 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 the management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company 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 V E K A M AND ASSOCIATES
Chartered Accountants
Firm Registration No: 05256S
Place : Coimbatore (Sd.) CA M.P. Panneerselvan
Date : 30th May, 2016 Partner
Membership No. 026129
Mar 31, 2015
We have audited the accompanying financial statements of LOTUS EYE
HOSPITAL AND INSTITUTE LIMITED,(Formerly Lotus Eye Care Hospital
Limited) ("the Company"), which comprise the Balance Sheet as at 31st
March, 2015, 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.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation 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 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.
Auditor's 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
thereunder.
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 auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the companies 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 on the financial
statements.
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, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") 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 Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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, 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 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of section 164 (2) of the Companies
Act, 2013; and
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us
i. The Company has disclosed the impact, if any, pending litigations
as at 31st March, 2015 on its financial position in its financial
statements - Refer Note 28 to the 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 were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" in the Independent Auditors' report of
even date to the members of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED
(Formerly Lotus Eye Care Hospital Limited) on the financial statements
for the year ended 31st March, 2015.
(i) a) The company is in the process of updating its records showing
full particulars including quantitative details and situation of fixed
assets. However an item wise list of fixed assets containing the
particulars for calculation of depreciation is maintained.
b) All the fixed assets have not been physically verified by the
management during the year but there is a phased programme of
verification based on the item wise list maintained for calculation of
depreciation which, in our opinion, needs to be strengthened having
regard to the size of the company and nature of its assets. As
informed, no material discrepancies were noticed on such verification.
However, in absence of complete information in fixed asset register as
stated in clause (a) above, we are unable to comment on the
discrepancies, if any.
(ii) a) As explained to us, the management has conducted physical
verification of inventories at reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records have been properly dealt within
the books of account.
(iii) According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Accordingly, the provisions stated in
paragraph 3 (iii) (a) and 3 (iii) (b) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed Assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control systems of the Company.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the provisions of Sections 73 to 76 of the Act and the rules
framed there under.
(vi) The Company informed us that the Central Government of India has
not prescribed the maintenance of cost records under section 148(1) of
the Companies Act, for any of the services rendered by the Company.
(vii) a) According to the information and explanations and records
provided to us, the undisputed statutory dues including provident fund,
income tax, sales tax, wealth tax, customs duty, cess and other material
statutory dues applicable to it have generally been regularly deposited
with appropriate authorities though there have been slight delay in a
few cases except that employees security deposit amounting to 19.60 Lacs
has not been deposited separately with scheduled banks or post office
savings scheme.
According to the information and explanation given to us, no undisputed
amounts payable in respect of provident fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, value added
tax, customs duty, excise duty and cess and any other material
statutory dues applicable to it, were outstanding as at 31.03.2015 for
a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, the dues
outstanding with respect to, income tax, sales tax, wealth tax, service
tax, value added tax, customs duty, excise duty, cess and other
material statutory dues applicable to it, on account of any dispute,
are as follows :
Nature of statute Nature of Dues Amount Amount Paid
(Rs. in Lacs) (Rs. in Lacs)
Kerala Value VAT Liability 1.89/- 0.57/-
Added Tax Act
Nature of statute Period to which the Forum where
amount relates dispute is pending
Kerala Value 01.04.2012 to The Assistant
Added Tax Act 31.03.2013 Commissioner (Appeals)
c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act 1956(1 of 1956) and rules made there
under.
(viii) The Company does not have accumulated losses as at 31st March,
2015 and the Company has not incurred any cash loss during the
financial year and in the immediately preceding financial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions(s), bank(s) or debenture holder(s).
(x) In our opinion and according to the information and explanations
given to us the company has not given any guarantees for loans taken by
others from banks or financial Institutions during the year.
(xi) Based on the information and explanations given to us by the
management, term loans have been applied for the purpose for which the
said loans were obtained.
(xii) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For V E K A M AND ASSOCIATES
Firm Registration No: 05256S
Chartered Accountants
Place : Coimbatore (Sd.) CA M.P. Panneerselvan
Date : 30th May, 2015 Partner
Membership No. 026129
Mar 31, 2014
We have audited the accompanying financial statements of LOTUS EYE
HOSPITAL AND INSTITUTE LIMITED,(Formerly Lotus Eye Care Hospital
Limited) Coimbatore ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, 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.
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 section 211(3C) of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing, the Companies (Accounting Standards)
Rules, 2006. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2014;
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 (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of section
227(4A) 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 (and proper returns adequate for the purposes of our audit have
been received from branches not visited by us);
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 section 211(3C) of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of section 274(1) (g) of the Companies
Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" in the Independent Auditors'' report of
even date to the members of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED
(Formerly Lotus Eye Care Hospital Limited) on the financial statements
for the year ended 31 st March, 2014.
(i) a) The company is in the process of updating its records showing
full particulars including quantitative details and situation of fixed
assets. However an item wise list of fixed assets containing the
particulars for calculation of depreciation is maintained.
b) All the fixed assets have not been physically verified by the
management during the year but there is a phased programme of
verification based on the item wise list maintained for calculation of
depreciation which, in our opinion, needs to be strengthened having
regard to the size of the company and nature of its assets. As
informed, no material discrepancies were noticed on such verification,
when compared to the available records.
c ) During the year, there is no disposal of substantial part of fixed
assets.
(ii) a) The Management has conducted physical verification of
inventories at reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records have been properly dealt within
the books of account.
(iii) According to the information and explanations given to us, the
Company has neither granted nor taken any loan secured or unsecured
to/from the companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956 during the
year.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchases of inventories, fixed Assets and
with regard to the sale of goods and services. During the course of our
audit, no minor or major continuing failure has been noticed in the
internal control procedures.
(v) a) According to the information and explanations provided by the
management and based on the audit procedure applied by us we are of the
opinion that the particulars of all contracts or arrangements that need
to be entered in the register maintained in pursuance of section 301 of
the act have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction so entered in the register maintained
under section 301 of the Act and exceeding Rupees Five lakhs during the
year in respect of each party have been made at prices which are
reasonable have been regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
furnished to us, the Company has not accepted any public deposit within
the meaning of Sections 58 A and 58AA of the Companies Act, 1956.
(vii) The Company''s internal audit systems needs improvement for its
size and nature of its business. However, its control procedure ensure
reasonable internal checking of its financial and other records.
(viii) The Company informed us that the Central Government has not
prescribed the maintenance of cost records under section 209(1)(d) of
the Companies Act, 1956 to the hospital industry.
(ix) a) According to the information and explanations and records
provided to us, the undisputed statutory dues including provident fund,
investor education and protection fund, income tax, sales tax, wealth
tax, customs duty, cess and other material statutory dues applicable to
it have generally been regularly deposited with appropriate authorities
though there have been slight delay in a few cases except that
employees security deposit amounting to Rs. 20.62 lakhs has not been
deposited with scheduled banks or post office savings scheme.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, sales tax, wealth
tax, service tax, customs duty, excise duty and cess were in arrears as
at 31.03.2014 for a period of more than six months from the date they
became payable.
c ) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and cess which have not been deposited on account of
any dispute.
(x) The Company has no accumulated losses as at 31st March, 2014 and
the Company has not incurred any cash loss during the financial year
covered by our audit and during the immediately preceding financial
year.
(xi) In our opinion and according to the information and explanations
furnished to us, we are of the opinion that the company, during the
year, has not defaulted in repayment of dues to financial institution,
bank or debenture holders wherever applicable.
(xii) According to the information and explanations furnished to us,
and based on the document and records produced to us the company has
not granted any loans or advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi /
mutual benefit fund / society. Accordingly the provisions of clause
4(xiii) of the Companies (Auditor''s Report) order, 2003 are not
applicable to the Company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4 (XIV) of the Companies (Auditors Report) order,
2003 are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us the company has not given any guarantees for loans taken by
others from banks or financial Institutions during the year.
(xvi) Based on the information and explanations given to us by the
management, term loans have been applied for the purpose for which the
said loans were obtained wherever applicable.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance sheet of the company, we report
that the no funds raised on short term basis have been used for long
term investment.
(xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
(xix) During the year the company has not issued any debentures and
hence the provisions of clause 4(xix) of the Companies (Auditor''s
Report) order, 2003 are not applicable to the company.
(xx) During the year the Company has not raised any money through
Public issue. However the Company has disclosed the end use of money
raised by public issue in the earlier year which has been disclosed in
the Note No.3 to the financial statement and the same has been verified
by us.
(xxi) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For VEKAM AND ASSOCIATES
Firm Registration No: 05256S
Chartered Accountants
Place : Coimbatore (Sd.) CA M.P. Panneerselvan
Date : 24th May, 2014 Partner
Membership No. 026129
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of LOTUS EYE
HOSPITAL AND INSTITUTE LIMITED, (Formerly Lotus Eye Care Hospital
Limited) Coimbatore ("the Company"), 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.
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 section 211(3C) of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, Implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2013;
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of section
227(4A) 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 (and proper returns adequate for the purposes of our audit have
been received from branches not visited by us.)
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 section 211(3C) 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 section 274(1) (g) of the Companies
Act, 1956.
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of the Independent Auditors'' report of
even date to the members of LOTUS EYE HOSPITAL AND INSTITUTE LIMITED
(Formerly Lotus
Eye Care Hospital Limited) on the financial statements for the year
ended 31pl March, 2013.
(i). a) The company is in the process of updating its records showing
full particulars including quantitative details and situation of fixed
assets. However an item wise list of fixed assets containing the
particulars for calculation of depreciation is maintained.
b) All the fixed assets have not been physically verified by the
management during the year but there is a phased programme of
verification based on the item wise list maintained for calculation of
depreciation which, in our opinion, needs to be strengthened having
regard to the size of the company and nature of its assets. As
informed, no material discrepancies were noticed on such verification,
when compared to the available records.
c) During the year, there is no disposal of substantial part of fixed
assets.
(ii). a) The Management has conducted physical verification of
inventories at reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records have been properly dealt within
the books of account.
(iii). According to the information and explanations given to us, the
Company has neither granted nor taken any loan secured or unsecured
to/from the companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956 during the
year.
(iv). In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchases of inventory, fixed Assets and with
regard to the sale of goods and services. During the course of our
audit, no minor or major continuing failure has been noticed in the
internal control procedures.
(v). a) According to the information and explanations provided by the
management and based on the audit procedure applied by us we are of the
opinion that the particulars of all contracts or arrangements that need
to be entered in the register maintained in pursuance of section 301 of
the act have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction so entered in the register maintained
under section 301 of the Act and exceeding Rupees Five lakhs during the
year in respect of each party have been made at prices which are
reasonable have been regard to prevailing market prices at the relevant
time.
(vi). In our opinion and according to the information and explanations
furnished to us, the Company has not accepted any public deposit within
the meaning of Sections 58 A and 58AA of the Companies Act, 1956.
(vii). The Company''s internal audit systems needs improvement for its
size and nature of its business. However, its control procedures ensure
reasonable internal checking of its financial and other records.
(viii).The Company informed us that the Central Government has not
prescribed the maintenance of cost records under section 209(1) (d) of
the Companies Act, 1956 to the hospital industry.
(ix). a) According to the information and explanations and records
provided to us the undisputed statutory dues including provident fund,
investor education and protection fund, income tax, sales tax, wealth
tax, customs duty, cess and other material statutory dues applicable to
it have generally been regularly deposited with appropriate authorities
though there have been a slight delay in a few cases except that
employees security deposit amounting to Rs 20.96 lakhs has not been
deposited with scheduled banks or post office savings scheme. According
to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, sales tax, wealth tax, service tax,
customs duty, excise duty and cess were in arrears as at 31.03.2013 for
a period of more than six months from the date they became payable
except the following;
Nature of
statute Nature of Amount Period
to which Due Date Date of
Dues (Rs.In
Lakhs) amount
relates Payment
Kerala
Value VAT 1.77 01.04.2011
to Subsequent
month yet to be
Added
Tax Act. Liability 31.03.2012 after
accrual paid
b) According to the information and explanations given to us, there are
no dues of income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and cess which have not been deposited on account of
any dispute.
(x). The Company has no accumulated losses as at 31'''' March 2013 and
the Company has not incurred any cash loss during the financial year
covered by our audit and during the immediately preceding financial
year.
(xi). In our opinion and according to the information and explanations
furnished to us, we are of the opinion that the company, during the
year, has not defaulted in repayment of dues to financial institution,
bank or debenture holders wherever applicable.
(xii). According to the information and explanations furnished to us,
and based on the document and records produced to us the company has
not granted any loans or advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii). In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Accordingly the provisions of clause
4(xiii) of the Companies (Auditor''s Report) order, 2003 are not
applicable to the Company.
(xiv). In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4 (XIV) of the Companies (Auditors Report) order,
2003 are not applicable to the Company.
(xv). In our opinion and according to the information and explanations
given to us the company has not given any guarantees for loans taken by
others from banks or financial Institutions during the year.
(xvi). Based on the information and explanations given to us by the
management, term loans have been applied for the purpose for which the
said loans were obtained, wherever applicable.
(xvii).According to the information and explanations given to us and on
an overall examination of the Balance sheet of the company, we report
that Die no funds raised on short term basis have been used for long
term investment.
(xviii).The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956 during the year.
(xix). During the year the company has not issued any debentures and
hence the provisions of clause 4(xix) of the Companies (Auditor''s
Report) order, 2003 are not applicable to the company.
(xx). During the year the Company has not raised any money through
Public issue. However the Company has disclosed the end use of money
raised by public issue in the earlier year which has been disclosed in
the Note No.3 to the financial statement and the same has been verified
by us.
(xxi) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For VEK A M AND ASSOCIATES
Firm Registration No: 05256S
Chartered Accountants
Place : Coimbatore (Sd.) M.P. Panneerselvan
Date : 24lh May, 2013 Partner
Membership No. 026129
Mar 31, 2012
1. We have audited the attached Balance Sheet of LOTUS EYE CARE
HOSPITAL LIMITED Coimbatore as at 31st March 2012 and the Profit
and Loss Account of the Company for the year ended on that date
and also 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. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, 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 accounts as required by law have
been kept by the Company so far as appears from our examination of the
books;
c) 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;
d) 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 referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956;
5. On the basis of the 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;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements , give the
information required by the Companies Act, 1956, in the manner so
required and present a true and fair view in conformity with the
accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31s,March 2012;
ii) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
iii) in the case of cash flow statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph (3) of the Auditors report of even date to the
members of LOTUS EYE CARE HOSPITAL LIMITED on the financial statements
for the year ended 31st March, 2012.
(i). a) The company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets, and the updation of records are still in progress. However an
item wise list of fixed assets containing the particulars for
calculation oi depreciation is maintained.
b) All the assets have not been physically verified by the management
during the year but there is a phased programme of verification based
on the item wise list maintained for calculation of depreciation which,
in our opinion, needs to be strengthened having regard to the size of
the company and nature of its assets. As informed, no material
discrepancies were noticed on such verification. However, in absence of
complete information in fixed asset register as stated in clause (a)
above, we are unable to comment on the discrepancies if any.
c) During the year, there is no disposal of substantial part of fixed
assets.
(ii). a) The Management has conducted physical verification of
inventories at reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records have been properly dealt within
the books of account.
(iii). According to the information and explanations given to us, the
Company has neither granted nor taken any loan secured or unsecured
to/from the companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, during the
year.
(iv). In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchases oi inventory, fixed Assets and with
regard to the sale oi goods and services. During the course of our
audit, we have neither come across nor we have been informed of any
major weakness in internal control procedures.
(v). a) According to the information and explanations provided by the
management and based on the audit procedure applied by us we are of the
opinion that the particulars of all contracts or arrangements that need
to be entered in the register maintained in pursuance of section 301 of
the act have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction so entered in the register maintained
under section 301 of the Act and exceeding Rupees Five lakhs during the
year in respect of each party have been made at prices which are
reasonable have been regard to prevailing market prices at the relevant
time.
(vi). In our opinion and according to the information and explanations
furnished to us, the Company has not accepted any public deposit within
the meaning of Sections 58 A and 58AA of the Companies Act, 1956.
(vii). The Company's internal audit systems needs improvement for its
size and nature of its business. However, its control procedures ensure
reasonable internal checking of its financial and other records.
(viii).The Company informed us that the Central Government has not
prescribed the maintenance of cost records under section 209(1) (d) of
the Companies Act, 1956 to the hospital industry.
(ix). a) According to the information and explanations given to us, and
records provided to us the undisputed statutory dues including
provident fund, investor education fund, income tax, sales tax, wealth
tax, customs duty, cess and other material statutory dues applicable to
it have generally been regularly deposited with appropriate authorities
though there have been slight delay in a few cases except that
employees security deposit amounting to Rs. 20.98 lakhs has not been
deposited with scheduled banks or post office savings scheme.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, sales tax, wealth
tax, service tax, customs duty and excise duty were in arrears as at
31.03.2012 for a period of more than six months from the date they
became payable except the following.
Nature of statue Nature of Amount Period to which
Dues (Rs. In
Lakhs) amount relates
Kerala Value VAT 1.77 01.04.2011 to
Added Tax Act. Liability 31.03.2012
Nature of statue Due Date Date of
Payment
Kerala Value
Added Tax Act. Subsequent month yet to be
after accrual paid
c) According to the information and explanation given to us, there are
no dues of income tax, sales tax, wealth tax, sevice tax, customs duty
and excise duty which have not been deposited on account of any
dispute.
(x). The Company has incurred a loss as on 31st March, 2012 and the
Company has not incurred any cash loss during the financial year
covered by our audit and during the immediately preceding financial
year.
(xi). In our opinion and according to the information and explanations
furnished to us, we are of the opinion that the company, during the
year, has not defaulted in repayment of dues to financial institution,
bank or debenture holders wherever applicable.
(xii). According to the information and explanations furnished to us,
the company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii). In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Accordingly the provisions of clause
4(xiii) of the Companies (Auditor's Report) order 2003 are not
applicable to the Company.
(xiv). In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4 (XIV) of the Companies (Auditors Report) order
2003 are not applicable to the Company.
(xv). The company has not given any guarantees for loans taken by
others from banks or financial Institutions.
(xvi). Based on the information and explanations given to us by the
management, term loans have been applied for the purpose for which the
said loans were obtained.
(xvii). According to the information and explanations given to us and
on an overall examination of the Balance sheet of the company, we
report that no funds raised on short term basis have been used for long
term investment.
(xviii). The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956 during the year.
(xix). During the year the company has not issued any debentures and
hence the provisions of clause 4(xix) of the Companies (Auditor's
Report) order 2003 are not applicable to the company.
(xx). During the year the company has not raised any money through
Public Issue. However the company has disclosed the end use of money
raised by public issue in the earlier year which has been disclosed in
the Note No.3 to the financial statement and the same has been verified
by us.
(xxi). During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us no fraud on or by the company has been noticed
or reported during the course of our audit.
For VEKAM AND ASSOCIATES
Firm Registration No: 05256S
Chartered Accountants
Place : Coimbatore (Sd.) M.P. Panneerselvan
Date : 07,th August, 2012 Partner
Membership No. 026129
Mar 31, 2010
1. We have audited the attached Balance Sheet of LOTUS EYE CARE
HOSPITAL LIMITED Coimbatore as at 31st March 2010 and the Profit
and Loss Account of the Company for the year ended on that date and
also 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. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, 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 accounts as required by law have
been .kept by the Company so far as appears from our examination of the
books;
c) 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;
d) 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 referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956;
5. On the basis of the written representations received from the
Directors as on 31s1 March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31s March 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements , give the
information required by the Companies Act, 1956, in the manner so
required and present a true and fair view in conformity with the
accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31s,March 2010;
ii) in the case of the Profit and Loss Account, of the loss for the
year ended on that date;
and
iii) in the case of cash flow statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in Paragraph (3) of the Auditors report of even date to the
members of LOTUS EYE CARE HOSPITAL LIMITED on the financial statements
for the year ended 31st March, 2010.
(i). a) The company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets, and the updation of records are still in progress. However an
item wise list of fixed assets containing the particulars for
calculation of depreciation is maintained.
b) All the assets have not been physically verified by the management
during the year but there is a phased programme of verification based
on the item wise list maintained for calculation of depreciation which,
in our opinion, is reasonable having regard to the size of the Company
and to the nature of its assets. No material discrepancies were noticed
on such verification.
c) During the year, there is no disposal of substantial part of fixed
assets.
(ii). a) The Management has conducted physical verification of
inventories at reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventories except for theatre and consumable items and needs to be
improved with respect to timeliness of entries and adjustments. The
discrepancies noticed on verification between the physical stocks and
the book records have been properly dealt within the books of account.
(iii). According to the information and explanations given to us, the
Company has neither granted nor taken any loan secured or unsecured
to/from the companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, during the
year.
(iv). In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have neither come across nor we have been informed of any
major weakness in internal control procedures.
(v). a) According to the information and explanations provided by the
management and based on the audit procedure applied by us we are of the
opinion that the particulars of all contracts or arrangements that need
to be entered in the register maintained in pursuance of section 301 of
the act have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction so entered in the register maintained
under section 301 of the act and exceeding Rupees Five Lakhs during the
year in recpect of each party have been made at prices which are
reasonable have been regard to prevailing market prices at the
relevant time.
(vi). In our opinion and according to the information and explanations
furnished to us, the Company has not accepted any public deposit within
the meaning of Sections 58 A and 58AA of the Companies Act, 1956.
(vii). The companys internal audit systems needs improvement for its
size and nature of its business. However, its control procedures ensure
reasonable internal cheeking of its financial and other records.
(viii).The Company informed us that the Central Government has not
prescribed the maintenance of cost records under section 209(1) (d) of
the Companies Act, 1956 to the hospital industry.
(ix). a) According to the information and explanations given to us, and
records provided to us, the undisputed statutory dues including
provident fund, investor education fund, income tax, sales tax, wealth
tax, customs duty, cess and other material statutory dues applicable to
it have generally been regularly deposited with appropriate authorities
though there have been slight delay in a few cases except that
employees security deposit has not been deposited with scheduled banks
or post office savings scheme.
b) The details of disputed statutory dues are as under:
S.No. Name of the Period to
which Nature of Amount Amount Forum where
statue the amount dues disputed
(Rs. paid(Rs. dispute is
pending
relates /
date of in lacs) in lacs)
notice
received
1 Employees 01.01.2007 Employees 13.57 Nil Assistant
PF
Provident
Fund to Provident Commissioner,
Act, & 31.05.2010 Fund Coimbatore
Miscellaneous Date:
Provisions 21.07.2010
Act,1952
(x). The Company has no accumulated losses as at 31st March 2010 and
the Company has not incurred any cash loss during the financial year
covered by our audit and during the immediately preceding financial
year.
(xi). In our opinion and according to the information and explanations
furnished to us, we are of the opinion that the company, during the
year, has not defaulted in repayment of dues to financial institution,
bank or debenture holders wherever applicable.
(xii). According to the information and explanations furnished to us,
the company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii). In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Accordingly the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order 2003 are not
applicable to the Company.
(xiv). In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order
2003 are not applicable to the Company.
(xv). The company has not given any guarantees for loans taken by
others from banks or financial institutions.
(xvi). Based on the information and explanations given to us by the
management, term loans raised during the financial year by the company
have been applied for the purpose for which the said loans were
obtained.
(xvii). According to the information and explanations given to us and
on an over all examination of the Balance sheet of the company, we
report that the no funds raised on short term basis have been used for
long term investment.
(xviii). The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956 during the year.
(xix). During the year the company has not issued any debentures and
hence the provisions of clause 4 (xix) of the Companies (Auditors
Report) Order 2003 are not applicable to the company.
(xx). During the year the Company has not raised any money through
Public issue. However the Company has disclosed the end use of money
raised by public issue in the previous year in the notes to the
financial statements including the deviation from offer document which
has been disclosed in the Notes B, 1 (III) of the schedule No.13 to the
financial statement and the same has been verified by us.
(xxi) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us no fraud on or by the company has been noticed
or reported during the course of our audit. However, there is no
recovery reported from December 2009 in respect of fraud committed by
an ex-employee during the preceding year.
Place : Coimbatore
Date : 10Ã August, 2010
For VEKAM AND ASSOCIATES
Firm Registration No: 05256S
Chartered Accountants
(Sd.) M.P. Panneerselvan
Partner
Membership No. 026129
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