FORTIS HEALTHCARE LIMITED
(FORMERLY FORTIS HEALTHCARE (INDIA) LIMITED)
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
Fortis Healthcare Limited
(formerly Fortis Healthcare (India) Limited)
1. We have audited the attached Balance Sheet of Fortis Healthcare Limited
(formerly Fortis Healthcare (India) Limited) (`the Company`) as at March
31, 2012 and also the Statement of 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 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 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 (Auditor`s Report) Order, 2003 (as amended)
issued by the Central Government of India in terms of sub-section (4A) of
Section 227 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. Without qualifying our opinion, we draw attention to the note no 20 of
financial statements regarding non-provision of proportionate premium on
redemption of US Dollar 100,000,000 5% Foreign Currency Convertible Bonds
due 2015 amounting to Rs. 603.13lacs. The same has been disclosed as a
contingent liability. Management has represented that the redemption
premium will be offset against the securities premium account and
accordingly, no adjustments have been considered in the accounts and more
fully described in note 20 of the accompanying financial statements.
5. Further to our comments in the Annexure referred to 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 purposes 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, statement of profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the balance sheet, statement of profit and loss account
and 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.
v. On the basis of the written representations received from the directors,
as on March 31, 2012, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012from
being appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, 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, 2012;
b) in the case of the statement of profit and loss account, of the profit
for the year ended on that date; and
c) in the case of cash flow statement, of the cash flows for the year ended
on that date.
For S. R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants
per Pankaj Chadha
Partner
Membership No.:91813
Place : Gurgaon
Date : May 28, 2012
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
Re: Fortis Healthcare Limited (formerly Fortis Healthcare (India)Limited)
(`the Company`)
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a policy of verifying the fixed assets once in two
years. Fixed assets were physically verified by the management during the
previousyear. The frequency of physical verification, in our opinion, is
reasonable having regard to the size of the Company and the nature of its
assets. As informed, no material discrepancies were noticed on such
verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
(iii)(a) 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 301 of
the Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(a) to
(d) of the Order are not applicable to the Company and hence not commented
upon.
(b) According to information and explanations given to us, the Company has
not taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(e) to (g)
of the Order are not applicable to the Company and hence not commented
upon.
(iv) As per the information and explanations given to us, certain items of
inventory and fixed assets, due to their unique, specialized or proprietary
nature, are purchased without inviting comparative quotations. Read with
the above, in our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business
with regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, we have not observed
any major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
(v) In our opinion, there are no contracts or arrangements that need to be
entered in the register maintained under Section 301 of the Companies Act,
1956. Accordingly, the provisions of clause 4(v)(b) of the Order is not
applicable to the Company and hence not commented upon.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause (d)
of sub-section (1) of section 209 of the Companies Act, 1956 for the
products / services of the Company.
(ix) (a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, investor
education and protection fund, employees` state insurance, income-tax,
sales-tax, wealthtax, service tax, customs duty, cess and other material
statutory dues applicable to it. The provisions relating to excise duty are
not applicable to the Company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor education
and protection fund, employees` state insurance, incometax, wealth-tax,
service tax, sales-tax, customs duty,cess and other undisputed statutory
dues were outstanding, at the year end, for a period of more than six
months from the date they became payable. The provisions relating to excise
duty are not applicable to the Company.
(c) According to the information and explanations given to us, there are no
dues of income tax, sales-tax, wealth tax, service tax, custom duty and
cess which have not been deposited on account of any dispute. The
provisions relating to excise duty are not applicable to the Company.
(x) The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial institution,
bank or debenture holders.
(xii) Based on our examination of documents and records, we are of the
opinion that the Company has maintained adequate records where the Company
has granted loans and 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. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor`s Report) Order, 2003 (as amended) 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 (Auditor`s Report) Order, 2003 (as
amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the Company
has given guarantee for loans taken by othersfrom banks or financial
institutions, the terms and conditions whereof in our opinion are not
prima-facie prejudicial to the interest of the Company.
(xvi) Based on information and explanations given to us by the management,
term loans were applied for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
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 or companies covered in the register maintained under section 301
of the Companies Act, 1956.
(xix) According to information and explanations given to us and based on
records, the Company has issued 3,000 debentures of Rs. 1,000,000 each in
March 2012. The Company has created charge in respect of debentures issued,
subsequent to the year-end.
(xx) The Company has not raised any money by way of public issue during the
year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the course
of our audit.
For S. R. Batliboi & Co.
Firm registration number: 301003E
Chartered Accountants
per Pankaj Chadha
Partner
Membership No.: 91813
Place : Gurgaon
Date : May 28, 2012. |