Apollo Hospitals Enterprises
BSE: 508869 | NSE: APOLLOHOSP | ISIN: INE437A01016 | Hospitals & Medical Services
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of APOLLO HOSPITALS
ENTERPRISE LIMITED as at 31st March 2009, the related Profit and Loss
Account and the Cash Flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company’s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement(s). An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. We have also considered the independent audit observations of the
divisional auditors for the Pharmacy Division, Projects Division,
Hyderabad Division, Bilaspur Division, Mysore Division, Vizag Division,
Pune Division, Karim Nagar Division and Mandya Division for forming an
opinion on the accounts for the respective Divisions.
4. As required by the Companies (Auditor’s Report) Order 2003, as
amended by the Companies (Auditor’s Report) (Amendment) Order 2004,
issued by the Central Government of India, in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we set out in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
5. In the absence of any notification from the Central Government with
respect to the Cess payable under Section 441A of the Companies Act,
1956, no quantifcation is made. Hence, no opinion is given on Cess
unpaid or paid, as per the provisions of Section 227(3)(g) of the
Companies Act, 1956.
6. Further to our comments in the Annexure referred to in paragraph 4
above, we report that:
(i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards specified by the Institute of Chartered Accountants
of India, referred to in subsection (3C) of Section 211 of the
Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31 ,2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualifed as on
March 31, 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956, and
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto, give the information
required by the Companies Act, 1956, in the prescribed manner and also
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2009;
(b) in the case of the Profit and Loss Account, of the PROFIT of the
company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fows of the
company for the year ended on that date.
Annexure to the Auditors’ Report
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a programme of physical verifcation of its fixed
assets by which all fixed assets are verifed in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verifcation is reasonable having regard to the size of the company and
the nature of its assets. According to the information and explanations
given to us, no material discrepancies were observed by the management
on such verifcation.
(c) In our opinion and according to the information and explanation
given to us, the fixed assets that have been sold /disposed off during
the year do not constitute a substantial part of the total fixed assets
of the Company. Hence, the going concern assumption has not been
affected.
(ii) (a) Stock of medicines, stores, spares, consumables, chemicals lab
materials and surgical instruments have been physically verifed at
reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation of stock of
medicines, stores, spares, consumables, chemicals lab materials and
surgical instruments followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination, the Company is
maintaining proper records of inventory. Further in our opinion and
according to the information and explanations given to us no material
discrepancies were noticed between the physical stocks verifed and book
records.
(iii) In respect of loans, secured or unsecured, granted to companies,
froms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956.
(a) The company has given unsecured loan to its subsidiary on various
terms and conditions.
In respect of the said loan the year end balance is Rs. 19.4 Crores.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions given
by the company are prima facie not prejudicial to the interest of the
company.
(c) In our opinion and according to the information and explanations
given to us, the Company is regular in receipt of the principal and
interest as per the terms and conditions.
(d) In our opinion and according to the information and explanations
given to us, reasonable steps have been taken by the company to recover
the principal and interest where the amount overdue is more than rupees
one lakh.
(e) The Company has not taken any loans, secured or unsecured, from
companies, froms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Hence sub clauses (e),
(f) and (g) of clause (iii) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that some of the
items purchased are of a special nature and suitable alternative
sources do not exist for obtaining comparable quotations, there are
adequate internal control procedures commensurate with the size of the
Company and the nature of its business for the purchase of stores,
medicines and fixed assets and for sale of goods and services. During
the course of our audit, we have not observed any major weaknesses in
the internal control system.
(v) (a) In our opinion, the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanation
given to us the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable, having
regard to the prevailing market prices.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and provisions of Section 58A, Section 58AA and
other relevant provisions of the Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public including unclaimed deposits matured in
earlier years that are outstanding during the year. To the best of our
knowledge and according to the information and explanations given to
us, no order has been passed by the Company Law Board, National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the company in respect of the aforesaid deposits.
(vii) The Company has froms of Chartered Accountants as Internal
Auditors for its various Divisions and pharmacies including a Private
Limited Company. On the basis of the reports submitted by them to the
management, in our opinion, the internal audit system is reasonable
having regard to the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under Section 209(1)(d) of the Companies Act, 1956 for any of the
activities of the Company.
(ix ) (a) According to the information and explanations given to us,
the Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees’ State Insurance, Income Tax, Sales Tax,
Service tax , Customs Duty, Cess, Wealth Tax and other statutory dues
applicable to it. To the best of our knowledge and according to the
information and explanations given to us, there are no arrears of
outstanding statutory dues as at 31st March 2009 for a period of more
than six months from the date they became payable. To the best of our
knowledge and belief and according to the information and explanations
given to us, excise duty is not applicable to this Company.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues disputed with
respect to Cess, Wealth Ta x and Service tax. The particulars of Sales
tax, Customs duty and Income tax which have not been deposited on
account of any dispute are as follows:
Name of the Nature of the Amount
statute dues (Rs.)
31.03.09
Central Sales Tax Sales tax 1,039,135
Act, 1956
Customs Act, Customs duty 99,700,026
1962
Value Added Tax Value Added 1,273,277
Act 2004 Tax
29,199,000
Income Tax Act, 70,793,000
Income Tax
1961
136,760,038
TOTAL 344,467,199
Period to which Forum where dispute is
the amount pending
relates
Assessment Years @ Delhi Sales Tax
2000-01, 2001-02 Deputy Commissioner
& 2003-04 (Delhi)
1996,1997 # Assistant Collector of
Customs (Chennai &
Hyderabad)
2008-09 Deputy Commissioner of Com-
mercial Tax (Enforcement)
Assessment Years Income Tax Appellate Tribunal
1997-1998, 1998- has reverted the case back to
1999, 2002-2003 the Assessing Officer
Assessment Years CIT (Appeals)
2001-2002, 2004-
2005, 2006-2007
Assessment Year Honorable Supreme Court
2000-2001
@ Refer Clause (3) (i) (ii) Schedule (J) - Notes forming part of
Accounts
# Refer Clause (3) (g) Schedule (J) - Notes forming part of Accounts
* Out of these disputed dues, an amount totaling Rs. 140,091,000/- has
been adjusted by the Income Tax Department from various amounts
refundable to the Company.
** Refer Clause (3) (d) Schedule (J) – Notes forming part of Accounts.
(x) In our opinion and according to the information and explanations
given to us, the company has no accumulated losses as at 31st March
2009. The company has also not incurred cash losses in such financial
year and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of any dues to
financial institutions, banks and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations
given to us, the company is not a Chit Fund, Nidhi, Mutual Beneft Fund
or Society and hence Clause (xiii) of the Companies(Auditor’s Report)
Order, 2003, as amended by the Companies ( Auditor’s Report) (
Amendment) Order, 2004 is not applicable to the company
(xiv) Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts relating to
shares, securities debentures and other investments dealt in by the
company and timely entries have been made in the records. We also
report that the company has held and dealt with shares, securities
debentures and other investments in its own name.
(xv) In our opinion and according to the information and explanations
given to us, the Company has given guarantees for loans taken by Joint
Ventures from banks and financial institutions, the terms and conditions
whereof are not prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has availed term loans and these were applied
for the purpose for which the loans were obtained.
(xvii) In our opinion and according to the information and explanations
given to us, the Company has not used any funds raised on short term
basis for long term investments.
(xviii) The 1,550,000 equity share warrants issued to a party covered
in the register maintained under section 301 of the Companies Act, 1956
during the year 2006- 07 at the minimum price of Rs.442.55 as fixed in
accordance with the guidelines for preferential issue of the Securities
and Exchange Board of India (Disclosure and Investor Protection)
Guidelines 2000 has been converted into equity shares of Rs.10/- each
fully paid on 22nd August 2008 (Refer Clause 12 of Schedule J - Notes
Forming part of Accounts).
(xix) The Company has not issued any debentures during the year. Hence
clause (xix) is not applicable to the Company.
(xx) During the year the management has not raised money through public
issue and hence we offer no comments on the same.
(xxi) According to the information and explanations given to us, by the
Company, no fraud on or by the Company has been noticed or reported,
during the year.
17, Bishop Wallers Avenue (West), For M/s. S. VISWANATHAN
CIT Colony, Mylapore, Chartered Accountants
Chennai – 600 004.
Place : Chennai V.C. KRISHNAN
Date : 29th June 2009 Partner
Membership No.: 22167
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