We have audited the standalone financial statements of Asarfi Hospital Limited (''the Company"), which comprise the balance sheet as at 31st March, 2024, and the statement of Profit and Loss and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. 1 2 3
In our opinion and to the best of our information and according to the explanations given to us except for the matter described in the Basis for Qualified Opinion section of our report the aforesaid 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, of the state of affairs of the Company as at 31st March, 2024, its profit and its cash flows for the year ended on that date.
Basis for Qualified Opinion
The company has not enabled the audit trail in the accounting software, which is used by them which was required by Rule 3(1) of the Companies (Accounts) Rules 2014.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Emphasis of Matter
Attention is invited to the following matters: -
The company had then filed Special Leave Petition against the order of the High Court
of Jhai khand dated 30.6.2022. The Supreme Court has remanded back to High court for fresh adjudication. b
2. The company has received a piece of land having a value of Rs. 1,28,61 600.00 as
corpus donation through gift deed during the financial year 2023-24 the company has credited it in reserve & surplus refer note 4 of the financial statement. Y
3. The company has a trade payable as on 31.03.2024 amounting Rs.16,57,02,500.00 in the name of Vanan Medical System International India Pvt Ltd which is payable in
2°nTf?4tTenT f0' the/J|an‘ and machinery purchased during the financial year 2023-24 through letter of credit issue by HDFC Bank. The company has entered into
a forward contract with HDFC Bank to mitigate the risk of possible loss due to change in foi eign exchange rate, refer note 10.2 of the financial statement.
Our opinion is not modified with respect to the above.
Key Audit Matter*
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed ,n the context of our audit of the standalone financial statements as a who e and n
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We do not come across such matter during our audit which can be considered as key audit matter.
Information other than the financial statements and auditors’ renort tW»nn
The Company's board of directors is responsible for the preparation of the other information ti,„ o ei infoimation comprises the information included in the Board’s Renort inrlnrT a to Board's Report but does not include the financial statements and our auditor's report 'thereon'
Our qualified opinion on the financial statements does not cover the other information a
not express any form of assurance conclusion thereon '"formation and we do
otherwise appears to be materially misstated. 8 16 C°UrSe °f °Ur aud,t or
completeness of the accounting records, relevant to the preparation the
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In prep3!-."8 the financial statements, management is responsible for assessing the Company's abihty to continue as a going concern, disclosing, as applicable, matters related to going concern and usmg the going concern basis of accounting unless management either intends to liquidate the Company 01 to cease operations, or has no realistic alternative but to do so.
procesf03^ °f D‘reCt0rS al'e alS0 resP°nsible for overseeing the Company's financial reporting
Auditor's Responsibilities for tile Audit of the Financial Statement
Our objectives are to obtain reasonable assurance about whether the financial statements as a who e are free from material misstatement, whether due to fraud or error, and tHssue an auditoi s lepoit that includes our qualified opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will alwavs etect a material misstatement when it exists. Misstatements can arise from fraud or error and e considered material if, individually or in the aggregate, they could reasonably be expected to uence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also: gment and maintain
• Identify and assess the risks of material misstatement of the financial statements whether due
evidence that is iufflTntand appropriate toprovidea Sfor our oSn°Tl“of
• Obtain an understanding of internal control relevant to the audit in order m ,w: procedure5 that are appropriate in the circumstances. Under section 143f3'im ofthp r S° 30 *
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or conditions that may castsmniRcantdo^bt onther exists related to events
concern. If we conclude that a material uncertainty exist weTe reuuTred taf™* “ ® g°ing our auditor's report to the related disclosure in Z* r ' • , equired to draw attention in
are inadequate, to modify our qualified on^ Statements or' ifsuch disclosures obtained up to the date of our auditor's rpnn u UI C°nC Lls,ons llie ^asec^ on the audit evidence the Company to ct^to^eZ go^ ^ °P C0"diti°"S may —Ý
rent 0f.the“ including
events in a manner that achieves fair presentation S r6P'eSCllt U’e U"de' ly"lg transactlons and
SuXtt mal^TpS ;> tH 3tandal0ne finai,Cial Statements
knowledgeable user of the standalone financial statememsmay'LttuelJjiliSdt
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quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies
Act, 2013, we give in the ‘Annexure A', 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 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) Except for the matters described in the basis for Qualified Opinion paragraph above, 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, except for matters described in paragraph (h) below.
c) Except for the matters described in the basis for Qualified Opinion paragraph above, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) Except for the matters described in the basis for Qualified Opinion paragraph above, in our opinion, the aforesaid financial statements comply with the Accounting Standai ds specified undei Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements 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 the requirements of Sec 197(16) of the Act as amended, we report that Section 197 is applicable to this company and the same is as per the provisions of the Companies Act 2013.
h) 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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferre^tq thB-Tpvestor Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of it's knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of it's knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material mis-statement.
v. No dividend have been declared or paid during the year by the company.
vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility but the same has not been enabled by the company throughout the year.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.
For R.K Thakkar & Co.
Chartered Accountants
FRN:002690C
Place:- Dhanbad H K Dokania
Date: 06th May 2024 (Partner)
UDIN:«2.VU!H'MlbfcNCGl bCS’OOt ::^rt^hipNo.4ir,9:n
1
The company has taken a land of 9.55 Acres on lease for 30 Years from Jharkhand Industrial Area Development Authority (JIADA) for the development of cancer hospital, which went into dispute. The dispute is originally between some private paities and the Jharkhand Industrial Area Development Authority (JIADA),
2
Government of Jharkhand for the ownership of land and Asarfi Hospital Limited is a party only by virtue of the lease which has been taken by following the duemrocess of
3
law with JIADA, refer note 53 of the financial statement.
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