Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Apollo Hospitals Enterprise Limited (“the Company”), which comprise the Balance Sheet as at 31st March, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as “Standalone Ind AS financial Statements”)
Management’s Responsibility for the Standalone Ind AS 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 standalone IND AS financial statements that give a true and fair view of the state of affairs (financial position), profit (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (IND AS) prescribed under section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone IND AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these standalone IND AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone IND AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone IND AS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone IND AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the
Company’s preparation of the standalone IND AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the standalone IND AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone IND AS financial statements.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone IND AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the IND AS,
a) of the state of affairs (financial position) of the Company as at 31st March, 2017,
b) its profit (financial performance including other comprehensive income), for the year ended 31st March 2017.
c) its cash flows and the changes in equity for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (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 “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, 2013, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income),the Cash Flow Statement and the statement of changes in equity dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone IND AS Financial Statements comply with the Indian Accounting Standards (Ind As) specified under section 133 of the Act, read with rule 7 of the companies (Accounts) Rules, 2014
e) On the basis of written representations received from the Directors as at 31st March 2017 taken on record by the Board of Directors, none of the directors is disqualified as at 31st March 2017 from being appointed as a director in terms of Sec.164(2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in “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 Standalone Ind AS Financial Statements - Refer Note 38 to the Standalone Ind AS Financial Statements.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company; and
(iv) The company had provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with the books of accounts maintained by the company and as produced to us by the management - Refer Note 43 to the Standalone Ind AS financial Statements.
Annexure “A” to Independent Auditors’ Report
The Annexure referred to in paragraph 1 of our report of even date to the members of Apollo Hospitals Enterprise Limited. On the accounts of the Company for the year ended 31 March, 2017.
i. On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Fixed assets have been physically verified by the management at reasonable intervals; according to the information and explanation given to us, no material discrepancies were found on such verification.
(c) The title deeds of Immovable properties owned by the Company are held in the name of the Company. The title deeds of immovable property in the form of building constructed on leasehold land are held in the name of the Company. Also refer Note 5 in notes to accounts.
ii. Stock of medicines, stores, spares, consumables, chemicals and lab materials have been physically verified at reasonable intervals by the management. According to the information and explanations given to us no material discrepancies were noticed.
iii. According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Consequently the provisions of clauses 3(a), 3(b) and 3(c) are not applicable.
iv. The Company has not provided any loan or investments or guarantees or Securities which fall under the purview of section 185 and section 186 of the Act.
v. In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and provisions of Section 73 to 76 or any other relevant provisions of the Act and Companies (Acceptance of Deposits) amended Rules, 2015 with regard to deposits accepted from Public including unclaimed deposits matured in earlier years that are outstanding during the year. To the best of our knowledge and according to the information and explanations given to us, no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of India or any other Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 1 of section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records
vii. (a) According to the information and explanations given to us, the Company has been regular in depositing with the appropriate authorities, undisputed statutory dues including Provident Fund, Employees’ state insurance, Income-tax, Customs duty, Service Tax. Cess, and other statutory dues applicable to it. To the best of our knowledge and according to the information and explanations given to us, there are no arrears of outstanding statutory dues as at March 31, 2017 for a period of more than six months from the date they became payable. To the best of our knowledge and belief and according to the information and explanations given to us, excise duty is not applicable to this Company.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues disputed with respect to cess. The particulars of sales tax, service tax, custom duty and income tax which have not been deposited on account of any dispute are as follows:
Name of the Statute
Nature of the Dues
Amount (Rs. in million as on 31.03.2017)
Period to which the amount relates
Forum where dispute is pending
Customs Act, 1962
Assistant Collector of Customs (Chennai, Hyderabad)
Appeal with CESTAT, New Delhi
Value Added Tax Act, 2004
Value Added Tax
2008-09 & 2012-13
Deputy Commissioner of Commercial Tax (Enforcement), Chennai
Income tax Act, 1961
Honorable Supreme Court,
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of any dues to financial institutions, banks, governments or debenture holders.
ix. In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and Term Loans during the year. Accordingly, the provisions of clause 3 (ix) of the order is not applicable.
x. According to the information and explanations given to us no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course our audit.
xi. The Managerial remuneration paid by the Company is as per section 197read with Schedule V of the Act.
xii. The Company is not a Nidhi Company and hence clause3 (xii) is not applicable.
xiii. According to the information and explanations given to us, the transactions with related parties are in compliance with section 177 and section 188 of the Act, where applicable and the details have been disclosed in the Standalone Ind AS financial statements as required under the relevant Indian Accounting Standard.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year under review. Accordingly clause 3 (xiv) is not applicable.
xv. According to the information and explanations, the Company has not entered into non-cash transactions with the Directors or persons connected with him. Accordingly, clause 3 (xv) is not applicable.
xvi. The Company is not engaged in non-banking financial services therefore clause 3 (xvi) is not applicable
For S Viswanathan LLP
V C Krishnan
Place: Chennai Partner
Date: 30th May 2017 Membership No: 022167