1. We have audited the accompanying financial statements of
M/s.SHARMA EAST INDIA HOSPITALS AND MEDICAL RESEARCH LTD.
(“the Company”), which comprise the balance sheet as at March 31,
2024, and the statement of Profit and Loss (including other
comprehensive income), Statement of Changes in Equity and Cash
Flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies and other
explanatory information.
2. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Companies Act, 2013 (“the Act") in
the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed under Section 133 of
the Act read with the Companies (Indian Accounting Standards)
Rules, 2015 as amended, (“Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2024, profit and total comprehensive income, changes
in equity of the Company and its cash flows for the year then ended.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing
(SAs) issued by ICAI and specified under section 143(10) of the Act.
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 Act 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 opinion.
Other Information
4. The Company’s Board of Directors is responsible for the other
information. The other information comprises information included in
the Management Discussion and Analysis, the Board Report, but does
not include the financial statements and our auditor’s report
thereon.
Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of management and those charged with
governance for the financial statements
5. 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 of these financial statements to give a
true and fair view of the financial position, financial performance
and total comprehensive income, changes in equity and cash flows of
the company in accordance with the Ind AS and other accounting
principles generally accepted in India, including the Indian
Accounting Standards specified under Section 133 of the Act. This
responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
of 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.
6. In preparing the financial statements, management is responsible for
assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so. The Board of Directors are also
responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements
7. Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
8. As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional scepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the
circumstances. Under Section 143(3) (i) of the Act, we are also
responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to financial
statements in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of management’s use of the going
concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
9. 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.
10. 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
11. As required by the Companies (Auditor’s Report) Order, 2020,
(“the order”) issued by the Central Government 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.
12. 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) 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
(c) The Balance Sheet, the Statement of Profit and Loss including
other comprehensive income, statement of changes in equity and
the Statement of cash flows dealt with by this report are in
agreement with the books of account
(d) In our opinion, the aforesaid financial statements comply
with the Indian Accounting Standards specified under 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) Report on the matters specified under clause (i) of Section 143(3)
of the Act, is attached as “Annexure B” to this report.
(g) With respect to the other matters to be included in the Auditor's
Report in accordance with the requirements of section 197(16) of
the Act, we report that the remuneration paid by the company to
its Directors is in accordance with the provisions of section 197 of
the Companies Act, 2013 and the remuneration paid to any
Director is not in excess of the limit laid down under the Act.
(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 (as amended), in our opinion and to the best
of our information and according to the explanations given to us:
i The company has disclosed the impact of pending litigations as
at March 31, 2024 on its financial position in its financial
statements.
ii The Company has long-term contracts as at March 31, 2024 for
which there were no material foreseeable losses. The Company
did not have any derivative contracts.
iii There has been no delay in transferring amounts, required to
be transferred, to the Investor Education and Protection Fund
by the Company during the year ended March 31, 2024.
iv (a) The management has represented that, to the best of
its knowledge and belief, other than as disclosed in the notes
to the accounts, no funds have been advanced or 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 persons or entities, 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 (Refer Notes to the financial
statements);
(b) The management has represented that, to the best of its
knowledge and belief, other than as disclosed in the notes to
the accounts, no funds have been received by the Company
from any persons or entities, 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(Refer Notes to the financial
statements); and
(c) Based on such audit procedures that we 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 (a) and (b) contain any
material misstatement.
v No dividend has been declared during the year under
consideration by the Company.
vi Pursuant to reporting requirement under Rule 11(g)
pertinent to accounting software for maintaining books of
account which has a feature of audit trail, we report that,
the Company has complied with the provisions enunciated in
proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014
for the year under review.
for Gopal Sharma & Co.
Chartered Accountants
Firm Registration No. 002803C
Sd/-
(CA Gautam Sharma)
Partner
Membership No. 079225
UDIN: 24079225BKEQVG7583
Jaipur
30th May, 2024
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