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Auditor Report of Looks Health Services Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of LOOKS HEALTH SERVICES LIM- ITED (the Company), which comprise the Bal- ance Sheet as at March 31,2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of signifi- cant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Com- pany in accordance with the Accounting Stan- dards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in In- dia. This responsibility includes the design, imple- mentation and maintenance of internal control 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.

AUDITORS'' RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reason- able assurance about whether the financial state- ments are free from material misstatement.

An audit involves performing procedures to ob- tain audit evidence about the amounts and dis-

closures in the financial statements. The proce- dures 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 as- sessments, the auditor considers internal con- trol relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appro- priate in the circumstances, but not for the pur- pose of expressing an opinion on the effective- ness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by manage- ment, as well as evaluating the overall presenta- tion 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.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the infor- mation required by the Act in the manner so re- quired 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 31,2014;

(b) In the case of the Statement of Profit and Loss, of the Loss of the Company for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULA- TORY REQUIREMENTS

1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we re- port that:

a. We have obtained all the information and expla- nations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion, proper books of account as re- quired by law have been kept by the Company so far as appears from our examination of those books.

c. 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. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e. On the basis of the written representations re- ceived from the directors as on March 31,2014, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of Section 274(1)(g) of the Act.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT Referred to in Paragraph 1 under the heading of "report on other legal and regulatory requirements" of our report of even date -

1. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. According to the information and explanation given to us, no material discrepancies were noticed on such physical verification.

c) In our opinion, the Company has not disposed of a substantial part of its fixed assets during the year and the going concern status of the Com- pany is not affected.

2. In respect of its inventories:

a) The inventories have been physically verified during the year by the management. In our opin- ion, the frequency of verification is reasonable.

b) In our opinion and according to the information and explanations given to us, 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 na- ture of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical veri- fication of inventories as compared to the book records.

3. Company has not taken or granted any loans, secured or unsecured, from / to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is an ad- equate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and ser- vices. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in such internal control sys- tem.

5. In respect of the contracts or arrangements re- ferred to in Section 301 of the Companies Act, 1956:

(a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there were no trans- actions made in pursuance of contracts / arrange- ments that need to be entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs.5,00,000.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7. Although, the company did not have a formal in- ternal audit system during the previous year, in our opinion, its internal control procedures in- volved reasonable internal checking of its finan- cial and business transaction.

8. According to information and explanation given to us, provisions of cost records to be maintained pursuant to the Companies (Cost Accounting Records) Rules, 2011 as prescribed by the Cen- tral Government under Section 209(1)(d) of the Companies Act, 1956 are not applicable to the Company.

9. In respect of statutory dues:

a) According to the records of the Company, undis- puted statutory dues including Provident Fund, Investor Education and Protection Fund, Employ- ees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other material statutory dues have been generally regularly deposited with the ap- propriate authorities. According to the information and explanations given to us, no undisputed amounts are payable in respect of the aforesaid dues were outstanding as at March 31,2014 for a period of more than six months from the date of becoming payable.

b) Details of dues of Income Tax, Sale Tax, Custom Duty and Excise Duty which have not been de- posited as on March 31,2014 on account of dis- putes are given below:

Name of the Statute -

Nature of the Dues -

Amt in Rs the amount Relates -

Period to which -

Forum where dispute is pending -

10. The Company has accumulated losses at the end of the financial year but are not more than 50% of networth. The Company has not in- curred cash losses during the financial year covered by the audit & in immediately preced- ing financial year.

11. Based on our audit procedures and according to the information and explanations given to us, Company has not raised any funds from financial institutions, banks and debenture hold- ers so the question of default in their repay- ment is not applicable.

12. In our opinion and according to the explana- tions given to us and based on the information available, no loans and advances have been granted by the Company on the basis of secu- rity by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund / nidhi / mutual benefit fund / society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

14. The Company has not carried out any transac-

tions in respect of dealing or trading in shares, securities, debentures and other investments. According to the information provided to us & from records it was seen that Company does not have any investments.

15. According to the information and explanation given to us by the management, Company has not given any guarantees for loans taken by others from banks and financial institutions.

16. The Company has not raised any term loans during the year so question of application of same is not applicable.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds raised on short term basis have been used for long-term investment during the year.

18. The Company has not made any preferential allotment of shares to parties and companies cov- ered in the Register maintained under Section 301 of the Companies Act, 1956.

19. According to the information and explanations given to us, the Company has not issued any secured debentures.

20. The Company has not raised any capital by way of public issues during the year.

21. To the best of our knowledge and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

FOR S. D. MOTTA & ASSOCIATES Chartered Accountants

Date : 30/05/2014

Sanjay Motta Proprietor Place : Dombivali Proprietor Mem.No.107688


Mar 31, 2013

Report on Financial Statement

We have audited the accompanying financial statements of Looks Health Services Ltd., which comprise the Balance Sheet as at 31 st March 2013 , the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s responsibility for the Financial Statements

The Company''s management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and the cash flows of the company in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act 1956, and in accordance with die accounting principles generally accepted in India. The responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give true and fair view and free from material misstatement, whether due to fraud or error.

Auditor''s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the management, 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.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2013.

ii) In the case of the Statement of Profit and Loss, of the profit of the company for the year ended on that date, and

iii) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Report on other Legal and Regulatory requirements

1 As required by the Companies (Auditor''s Report) Order, 2003 issued by the Central Government in terms of Section 227(4A) of the Act, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(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 audit.

(b) In our opinion, proper books of account as required by the 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, and the Cash Flow Statement dealt with this report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in Section 211 (3C) of the Act.

(e) On the basis of the written representations received from the directors as on 31st March, 2013 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2013 from being appointed as a director in terms of Section 274(l)(g) of the Act.

The Annexure referred to in paragraph 1 of our Report of even date to the members of Looks Health Services Limited on the accounts of the Company for the year ended 31st Mar.''2013 -

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) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information available.

2) According to the information and explanations given to us, the fixed assets have been physically verified by the management at reasonable interval during the year, which in our opinion is reasonable, having regard to the size of the Company and nature of the assets. No material discrepancies were noticed on such physical verification.

3) In our opinion and according to the information and explanations given to us, no Fixed Assets had been disposed off by the Company during the year.

4) As explained to us, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.

5) In our opinion and according to the information and explanation given to us, 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 the business.

6) The Company has been maintaining proper records of inventory. However discrepancies noticed on physical verification of stocks, as compared to book records were not material and have been properly dealt within the books of accounts.

7) The Company has granted loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 and the terms and conditions of the said loans are prima facie not prejudicial to the interest of the Company except Interest not charged. The maximum amount outstanding during the year was Rs 1035407/- and the year-end balance of such loan amounted to Rs 503605/-.

8) The Company has not taken loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

9) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods & services. During the course of audit, we have not observed any continuing failure to correct major weaknesses in internal control system of Company.

10) According to the information and explanations given to us, we are of the opinion that the particulars of all con- tracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

11) In our opinion, and according to the information and explanations given to us, the provisions of Sections 58 A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public are not applicable to the Company as Company has not accepted any deposits from the public.

12) Company does not have any formal internal audit system but according to management they have strong internal control commensurate with the size & nature of its business

13) The provisions of maintaining cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect of certain manufacturing activities are not applicable to the Company.

14) According to the information and explanations given to us by management, there are no undisputed statutory dues payable in respect of Investor Education and Protection Fund, Income-tax, Sales-Tax, Custom Duty, Service Tax etc. which are outstanding as at 31st March''13 for a period of more than six months from the date they became payable. Further, since the Central Government has till date not prescribed the amount of cess payable under section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the company in depositing the same.

15) Accumulated losses at the end of the financial year are not more than 50% of Net worth of the Company & Company has incurred cash losses during the financial year and in immediately preceding financial year as well.

16) Company has not obtained loan from any financial institution or bank or debenture holder so question of default does not arise.

17) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Hence the requirements of item (xii) of paragraph 4 of the Order is not applicable to the company.

18) The company is not a Chit Fund, Nidhi or mutual benefit Society. Hence the requirements of item (xiii) of paragraph 4 of the Order is not applicable to the company.

19) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4(xiv) of the Order is not applicable.

20) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

21) As per information and explanations given to us & from records it is observed that company has not taken any term loan taken during the year.

22) According to the information and explanations given to us and on the examination of records, no funds raised on short-term basis have been used for long-term investment.

23) According to the information and explanations given to us company has not made preferential allotment of shares to companies listed in the register maintained under section 301 of the Companies Act, 1956.

24) The company has not issued any debentures. Hence the requirements of clause (xix) of paragraph 4 of the Order is not applicable to the company.

25) As informed & explained to us & as verified, the Company has raised Rs. 12 Crore by way of Public Issue of 30,00,000 Equity Shares @ Rs.40/- each (Including Premium of Rs.30/- per share) during the year and we have verified the disclosure made & certified by the management regarding the end use of the IPO Proceeds.

26) From the examination of records and according to the information and explanations given to us, fraud on or by the company has not been noticed or reported during the year.

For S. D. Motta & Associates

Chartered Accountants

Sd/-

Place - Mumbai (Sanjay D. Motta)

Date - 30/05/2013 Proprietor

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