CDR Health Care Ltd Auditor Reports

CDR HEALTHCARE LIMITED ANNUAL REPORT 2011-2012 AUDITORS REPORT To The Members M/S. CDR HEALTH CARE LIMITED We have audited the attached Balance Sheet of M/s. CDR HEALTH CARE LIMITED as at 31st March, 2012 and also the Profit & Loss Account for the period ended on that date annexed thereto and the cash How statement for the period ended on that date. 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 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 misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis of our opinion. As required by the Companies (Auditors report) order 2003 and as amended by the Companies (Auditors report) (Amendment) order 2004, issued by the Central Government of India in terms of the 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. 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, Profit & Loss Account and the Cashflow Statement dealt with by this report are in agreement with the books of account: (iv) In our opinion, the Balance Sheet, Profit & Loss Account and the Cashflow Statement dealt with by this report comply with the Accounting standards referred to in subsection (3C) Of Section 211 of Companies Act, 1956; (v) On the basis of 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 Director in terms of clause(g) of sub-section(l) of section 274 of 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 31st March, 2012; (b) In the case of the Profit & Loss Account, of the Profit for the period ended on that Gate; and And (c) In the case of Cash Flow statement, of the cash flows for the period ended on that date: For P. MURALI & CO., CHARTERED ACCOUNTANTS FRN: 007257S P. MURALI MOHANA RAO PARTNER Membership No.23412 PLACE: HYDERABAD DATE : 01-09-2012 ANNEXURE TO THE AUDITORS REPORT I. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. (b) As explained to us the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies between the book records and the physical inventory have been noticed on such verification. (c) The company has not disposed off substantial part of the fixed assets during the year. II The company has no Inventory. Hence this clause is not applicable. III. (a) The Company has not granted any loans, secured or unsecured to Companies, Firms or other parties covered in the register maintained U/s.301 of Companies Act, 1956. (b) The Company has not granted any loans, the clause of whether the rate of interest & other terms and conditions on which loans have been granted to parties listed in the register maintained under section 301 is prejudicial to the interest of the company, is not applicable (c) As no loans are granted by company, the clause of receipt of interest & principal amount from parties is not applicable to the company. (d) No loans have been granted to Companies. Firms & other parties listed in the register U/s. 301 of the Companies Act, 1956. hence overdue amount of more than rupees one lakh does not anse and the clause is not applicable. (e) The Company has not taken any loans, secured or unsecured from Companies. Firms or other parties covered in the register maintained U/s.301 of the Companies Act, 1956. (f) As the Company has not taken any loans, the clause of whether the rate of interest & other terms and conditions on which loans have been taken from parties listed in the register maintained under section 301 is prejudicial to the interest of company, is not applicable. (g) As no loans are taken by the company, the clause of repayment of interest & principal amount to parties is not applicable to the company. IV. In our opinion and according to the information and explanations given to us, there are generally adequate internal control systems commensurate with the size of company and the nature of its business with regard to purchase of fixed assets and for sale of goods and services. There is no continuing failure by the company to correct ary major weaknesses in internal control. V. (a) In our opinion and according to the information and explanation give to US, since no contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been made by the company in respect of any party in the financial year, the entry in the register U/s. 301 of the Companies Act, 1956 does not arise (b) According to the information and explanations give to us, as no such contracts or arrangements made by the company, the applicability of the clause of charging the reasonable price having regard to the prevailing market prices at the relevant time does not anse. VI. The Company has not accepted any deposits (rem the public and hence the applicability of the clause of directives issued by the Reserve Bank of India and provisions of section 58A, 58AA or any other relevant provisions of the Act and the rules framed there under does not anse As per information and explanations given to us the order from the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court of any other Tribunal has not been received by the Company. VII. In our opinion, the company is having internal audit system, commensurate with its size and nature of its business. VIII. In respect of the Company, 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. IX. (a) The Company is regular in depositing statutory dues including Income Tax, Cess and any other statutory dues with the appropriate authorities and at the last of the financial year there were no amounts outstanding which were due for more than 6 months from the date they became payable. (b) According to the information and explanations given to us, no undisputed amounts are payable in respect of Income lax, cess and any other statutory dues as at the end of the period, for a penod more than six months from the date they became payable. X. The company has been registered for a period of not less than 5 years, and its accumulated losses at the end of the financial year is not more than fifty percent of its net worth and the Company has not incurred cash losses in this financial year and in the immediately preceding financial year. XI. According to information and explanations given to us. the Company has not defaulted in repayment of dues to financial institutions or banks, XII. According to the information and explanations given to us, the company has not granted any loans or advance on the basis of security by way of pledge of shares, debentures and other securities and hence the applicability of lie clause regarding maintenance of adequate documents in respect of loans does not arise. XIII. This clause is not applicable to this company as this company is not covered by the provisions of special status applicable to Chit Fund in respect of Nidhi / Mutual Benefit Fund / Societies. XIV. According to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments and hence the provisions of clause 4(xiv) of the Companies (Auditors Report) order 2003, are not applicable to the company. XV. According to the information and explanations given to us. the company has not given any guarantee for loans taken by others from banks or financial institutions, and hence the applicability of this clause regarding terms and conditions which are prejudicial to the interest of the company does not arise. XVI. According to the information and explanations given to us. the company has not obtained term loans, hence this clause is not applicable XVII. According to the information and explanations given to us, no funds are raised by the company on short-term basis. Hence the clause of short term funds being used for long-term investment does not arise. XVIII. According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and Comedowns covered in the Register maintained under section 301 of the Companies Act, 1956 and hence the applicability of the clause regarding the price at which sharas have been issued and whether the same is prejudicial to the interest of the Company does not arise. XIX. According to the information and explanations given to us. the company does not have any debentures and hence the applicability of the clause regarding the creation or security or charge in respect of debentures issued does not arise. XX. According to information and explanations given to us, the company has not raised money by way of public issues during the year, hence the clause regarding the disclosure by the management on the end use of money raised by public issue is not applicable. XXI. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year under audit. For P. MURALI & CO., CHARTERED ACCOUNTANTS FRN: 007257S P. MURALI MOHANA RAO PARTNER Membership No.23412 PLACE: HYDERABAD DATE : 01-09-2012