Auditor Report of Kids Medical Systems Ltd.

Mar 31, 2024

We have audited the accompanying standalone financial statements KIDS MEDICAL SYSTEMS
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2024, the
Statement of Profit and Loss, and the Statement of Cash Flows for the year then ended, and
summary of the significant accounting policies and other explanatory information.

Because of the significance of the matters described in the Basis for Disclaimer of Opinion
paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a
basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements
for the year ended 31st March 2024.

Basis of Disclaimer of Opinion

We have conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing specified under Section 143(10) of the Act. Our responsibility under those
Standards are further described in Auditor''s Responsibility for the Audit of the standalone
financial statements section of our report. We are independent of the company in accordance of
with code of ethics issued by ICAI together with the independence requirement that are relevant
to our audit of standalone financial statement under the provisions of the Act and the rules made
there under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAI''s Code of Ethics.

In the course of carrying out our audit, we have attempted to obtain sufficient and appropriate
audit evidence to satisfy ourselves that the items reflected in the financial statements are fairly
stated, but failed:

1. We have relied on the management representation for the existence and valuation of
Fixed Asset The Company has not charged depreciation on the fixed assets during the
year and accordingly the provision of Accounting Standards relating to depreciation and
Deferred Tax Asset / Liabilities have not been followed.

2. We have not been provided with the balance confirmation or any other details for the
trade receivable, trade payable, Loans and advances receivable/Payable shown in the
books of accounts. In the absence of the same we are unable to confirm the balance and
nature of the transactions.

3. We have not been provided with the rent agreements, invoices/ vouchers for expenses.
We have relied only on management representation in this regard.

4. We have not been provided with the challans / acknowledgements/ returns for the
payment of the TD5/G5T/PF/E5IC or any other statutory payments made by the
company.

5. The Company has no fixed assets register. The existence of the fixed asset has only been
confirmed by the management. We have not been able to confirm from any other
method about the existence and valuation of the said fixed assets.

6. We would like to draw attention to the fact that, balance confirmation from the parties
from whom amounts are due for more than one year were not available and in absence
of the same we are not in position to comment on the deviation in the balances or
execution of the transactions. The absence of the said balance confirmation would also
affect the expected credit loss of the debtors and accordingly the same may affect the
amount of the carrying amount of debtors and the profit.

7. During our review we have been informed by the management that the financial results
for the year ended on 31st March 2018 have been published late as there is a financial
fraud during and after IPO.

The previous auditor has not reported the same, however Directors have filed Complain
against the Merchant Banker & Other in Economic Offence wing. According to the
management representation the complaint has been filed for Rs 5,50,47,906 which is
shown in Other Current Financial Assets which Is claimed to have been fraudulently
transferred by merchant banker and others.

The case is not resolved yet. However Economic Offence Wing (EOW) has considered
this as a civil matter and company is planning to take further course of action in this
matter.

We therefore take no responsibility of correctness of the said figure and
other figures which can be affected by it.

Other Information

The company''s management and board of directors are responsible for the other information.
The other information comprises the Board''s Report on corporate governance and Business
Responsibility report but does not include the consolidated financial statements, standalone
financial statement and our auditor''s report thereon.

Our opinion on the financial statement does not cover the other information and we do not
express any form of assurance conclusion thereon.

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In connection with our audit of standalone financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements, or our knowledge obtained during the
course of our audit procedures or otherwise appear 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 not been provided with any
such information and therefore we are not in a position to comment on the same.

Management''s Responsibility for the Standalone Financial Statements

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
that give a true and fair view of the state of affairs, loss, cash flows of the Company in accordance
with the accounting principles generally accepted in India, prescribed under section 133 of the
Act.

This responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safe guarding 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 standalone financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company''s
ability to continue as a going concern, disclosing, as applicable, mattersre^edtogoingconcen
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.

Board of directors is also responsible for overseeing the company''s financial reporting process.
Auditor''s Responsibility

Our objectives are to obtain reasonable assurance about whether standalone financial

uur 0D]e<.uve:> whether due to fraud or error, and

statements as a whole are free from material misstate , _{js hjgh} |_eve| ₀f

to issue an auditor''s report that includes our opinion. Reasonabieassurane ^

assurance but is not a guarantee that an audit eondwted m ««

detect a material misstatement when it _cou,_{d reasonab}|y be expected to

are considered material if, individually or in age 8 - * _{of these standa}|_one financial

influence the economic decision of users taken
statements.

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As a part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risk of material misstatement of the standalone financial
statements, weather due to fraud or error, design and perform audit procedure
responsive to those risk, and obtain evidence that us sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud for one resulting from error, as fraud may involve collusion, forgery, intentional
omission, misrepresentation, or the override of internal control.

• Obtain an understanding of internal financial 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 an adequate internal financial control system 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 the 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
standalone 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 standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements may be influenced. We consider
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.

(J/FRN: 135Q24WYJM

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.

From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditor''s report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.

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 in terms of Section 143(11) of the Act, we give in "Annexure A" a statement
on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act, we report that:

(a) As stated in disclaimer of opinion paragraph, we have not been able to obtain required
information which was necessary for the purposes of our audit.

(b) As specified in the Disclaimer of Opinion paragraph, we do not express any opinion on the
maintenance of Books of Accounts.

(c) As stated in the Disclaimer of Opinion para, we do not express any opinion on agreement
between the Balance Sheet, the Statement of Profit and Loss, Cash Flow Statement dealt
with by this Report, and the books of account.

(d) Except matters specified in basis of disclaimer para, in our opinion, the aforesaid
standalone AS financial statements comply with the Accounting Standards prescribed
under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) We have not received any written representation from the directors as on 31st March
2024 and therefore we are not in position to confirm whether any 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 contro s, re er to our

separate Report In "Annexure B". /CKsSoJn.

(g) 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. As specified in the disclaimer of the Opinion Para we are unable to express opinion
that all the litigations are disclosed as and when required or not;

ii. As specified in the disclaimer of the Opinion Para we are unable to express opinion
that the Company has any long-term contracts including derivative contracts for
which there were any material foreseeable losses or not;

iii. As specified in the disclaimer of the Opinion Para we are unable to express our
opinion that there were any amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company or not.

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 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 its 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 performed 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 (a) and
(b) contain any material misstatement.

v. No dividend has 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 does not have a feature of recording audit trail (edit log)
facility.

Date: 18/02/2025 For M A A K & Associates

Place: Ahmedabad - (Chartered Accountants)

UDIN:05| 3392-4 ¹³ '' FRN :135C^§3^

MarmikGShah

Partner

M. No.: 133926