We have audited the accompanying financial statements of DOLPHIN
MEDICAL SERVICES LIMITED (the Company), which comprise the Balance
Sheet as at 31st March, 2015, and the Statement of Profit and Loss and
the Cash Flow statement for the period 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 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 for the Financial Statements 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 the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial controls relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made
by the Company''s Directors, as well as evaluating the overall
presentation of the financial 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
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) In the case of the Statement of Profit and Loss, of the loss for the
period ended on that date.
c) In the case of Cash Flow Statement, of the cash flows of the company
for the period ended on that date.
Report on Emphasis of Matter(s) (EOM)
There is no Emphasis of matters to report upon.
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
sub-section 11 of Section 143 of the Act, we give in the Annexure 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 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
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
c) The Balance Sheet and the Statement of Profit and Loss and the Cash
Flow, dealt with by this Report are in agreement with the books of
d) In our opinion, the aforesaid financial statements, comply with the
Accounting Standards referred to in of Section 133 of the Companies
Act, 2013, read with Rule 7 of the Company (Accounts) Rules 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of sub-section (2) of Section 164 of
the Companies Act, 2013.
f) With respect to the other matters included in the Auditor''s Report
and to our best of our information and according to the explanations
given to us:
i) The Company does not have any pending litigations which would impact
its financial position except dispute regarding the premises.
ii) The Company has not entered into any long-term contracts including
derivatives contracts requiring provision under applicable laws or
accounting standards, for material foreseeable losses and
iii) No amount is required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 2013. Hence delay in depositing the amounts to the said
fund is not applicable.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our Independent Auditor''s Report of even
date to the members of DOLPHIN MEDICAL SERVICES LIMITED on the
financial statements of the Company for the period ended 31st March,
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. Fixed Assets
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
a. The inventories have been physically verified during the year by
the management at reasonable intervals. In our opinion, the frequency
of verification is reasonable.
b. 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. In our opinion and on the basis of our examination of the records,
the company is generally maintaining proper records of its inventories.
No material discrepancies were noticed on physical verification of
inventories as compared to book records
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 to companies, firms or other parties listed in the
register maintained under Section 189 of the Companies Act, 2013.
Consequently, the provisions of clauses iii (a), iii(b) of the Order
are not applicable to the Company.
4. Internal Controls
In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business for the purchase
of stores, raw materials, plant and machinery, equipment, other assets,
for the sale of goods and in respect of its regular operations. During
the course of the audit, we have not observed any major weakness in the
internal control system.
5. Public Deposits
The Company has not accepted any deposits from the public covered under
Section 73 to 76 of the Companies Act, 2013.
6. Cost Records
As per the information & explanation given by the management, the
maintenance of cost records has not been prescribed by the Central
Government under sub-section (1) of Section 148 of the Act.
7. Statutory Dues:
a) According to the records of the company, there are no undisputed
statutory dues including Provident Fund, Income-tax, Sales-tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
b) According to the information and explanations given to us, there are
no amounts payable in respect of income tax, service tax, sales tax,
customs duty and excise duty which have not been deposited on account
of any disputes.
c) There is no such amount 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
8. Profit and Loss
The company has been registered for more than five years. The Company
has accumulated losses to the extent of Rs.498.79 lakhs at the end of
the financial year. The Company has incurred cash losses during the
financial year covered by the audit and in the immediately preceding
9. Payments to Banks, Financial Institutions etc
According to the books and records examined by us, and information and
explanations given to us, Canara Bank has assigned its rights on the
loan of Rs.804.58 lakhs favoring Edelweiss Asset Reconstruction Company
Ltd (EARC). On 18.03.2015 the EARC has granted a Negotiated Settlement
(NS) of dues at a total consideration of Rs.250.00 lakhs payable in
installments specified therein. In terms of the NS the company has
paid an amount of Rs.25.00 lakhs as Upfront payment. The company has
not issued any debentures.
According to the information and explanations given to us, the Company
has not given any guarantees for loan taken by others from a bank or
11. Term Loans
The company has not taken any term loans during the year and therefore
the application thereof does not arise.
According to the information and explanations given to us, no material
fraud on or by the Company has been noticed or reported during the
course of our audit.
PINNAMANENI & CO.,
CA PVV SATYANARAYANA