Auditor Report of Krsnaa Diagnostics Ltd.

Mar 31, 2025

We have audited the accompanying standalone financial statements
of Krsnaa Diagnostics Limited ("the Company”), which comprise the
Balance Sheet as at March 31, 2025, the Statement of Profit and Loss
(including Other Comprehensive Income), Statement of Changes in
Equity and Statement of Cash Flows for the year then ended, and
notes to the standalone financial statements, including material
accounting policy information and other explanatory information
(hereinafter referred to as the "standalone financial statements”).

In our opinion and to the best of our information and according
to the explanations given to us the aforesaid standalone 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 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, 2025, its profit (including
other comprehensive income), changes in equity and its cash flows
for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing (SAs) 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 Standalone 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
("ICAI”) together with the ethical requirements that are relevant to
our audit of the standalone 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 obtained by
us is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note No. 51 to the standalone financial statements
in respect of certain additions made by the Income Tax Authorities, on
account of undisclosed income and disallowance of certain deductions
claimed by the Company, in the assessment orders passed and a demand
raised on the Company for the assessment years ("AY”) 2017-18, and
AY 2020-21 to AY 2023-24, pursuant to search and seizure proceedings
conducted under section 132(1) and section 133A of the Income Tax Act,
1961. The Company had filed an appeal with the Joint Commissioner
(Appeals) / Commissioner of Income Tax (Appeals) against the said
Orders and has paid tax under protest amounting to H 102.77 million.

Further as explained in the aforesaid note, the management of the
Company believes that the assessment orders under appeal; filed by
the Company would not have a material impact on the current period
standalone financial statements for the year ended March 31, 2025.

Our opinion is not modified in respect of the above matter.

Key Audit Matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the standalone
financial statements for the year ended March 31, 2025. These
matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters
to be communicated in our report.

Sr. Key Audit Matters No	How the Key Audit Matters was addressed in our audit
1 Allowance for expected credit loss for trade receivables	In view of the significance of the matter, we have applied the following
As of March 31, 2025, trade receivables amounted to	audit procedures in this area, among others to obtain sufficient and
H 2,895.48 million against which provision of H 63.30 million	appropriate audit evidence:
was made towards expected credit loss in the books of	1.	Obtained understating of the Company''s accounting policy on
account. Refer Note 13 of standalone financial statements		assessment of impairment of trade receivables, including design and
for disclosures of trade receivables.		implementation of related management controls around it.
Calculation of expected credit losses is a complex area and	2.	Tested the operating effectiveness of key controls for samples
requires management to make significant assumptions on		selected.
customer payment behaviour and estimate the level and	3.	Obtained ageing report of trade receivables and verified the
timing of expected future cash flows.		completeness and accuracy of the same. Also reperformed ageing calculation for a sample of customer balances.

Sr. Key Audit Matters No	How the Key Audit Matters was addressed in our audit
Hence, we have identified allowance for expected credit loss	4.	Verified the appropriateness of the method and model used for
as a key audit matter in view of the significant management		computing the ECL provision and tested the reasonableness of the
judgment and estimation uncertainty involved.	5.	underlying assumptions used therein. Ensured the same is consistent with previous years. Tested the mathematical accuracy of the computation and compared the Company''s provisioning rates against the historical trend of actual collection.
	6.	Evaluated management comments and recovery plans for trade receivables outstanding for more than 180 days, including validation of the same.
	7.	Requested for and obtained independent balance confirmations from the Company''s customers on a sample basis. Verified subsequent receipts after the year-end on a sample basis.
	8.	Verified the adequacy and accuracy of the disclosures made in the financial statement in relation to such provision is in accordance with the requirements of the relevant Ind AS.
2 Revenue recognition from contracts with customers.	In view of the significance of the matter we applied the following
Refer Note 2.6 and Note 29 of standalone financial	audit procedures in this area, among others to obtain sufficient and
statements for related disclosures.	appropriate audit evidence:
The Company''s revenue significantly relates to diagnostic services provided by the large number of diagnostics centres set up across various states in India through Public Private Partnership ("PPP”) agreements with government authorities and agreements with private hospitals. Revenue from diagnostics services is recognised at a point in time when the tests are conducted, and samples are processed.	1.	Obtained an understanding of the systems, processes and controls implemented by the Company. Evaluated the design and implementation and the operating effectiveness of key internal financial controls with respect to revenue recognition including information and technology control environment, key IT application control over the Company''s IT systems which governs revenue recognition, authorisation of agreements & Invoices and those related to the reconciliation of revenue to cash.
	2.	Obtained list of revenue contracts and read the terms of contract.
Owing to the high volume of sales transactions with customers and significant value of revenue being cash and	3.	Tested the reconciliation of revenue as per the billing system
carry basis increases the risk of revenue being recognised		to the revenue recorded as per the accounting records and the
inappropriately and which highlights the criticality of sound		reconciliation of total revenue generated through cash to the
internal processes of summarising and recording revenue to		amount deposited into the bank statements.
mitigate error and fraud risk.	4.	Tested on a sample basis, manual journal entries relating to
In view of the above, we have identified revenue recognition		revenues to identify and inquire on unusual items, if any.
as a key audit matter.	5.	Performed substantive testing on samples selected using statistical sampling for revenue transactions recorded during the year by testing the underlying contracts, and patient test reports issued to verify the occurrence of the transaction and assess whether criteria for revenue recognition are met.
	6.	Ensured cut-off assertion by reviewing the Company''s revenue recognition policies, understanding the frequency and period of invoicing, and comparing the invoice counts to the invoices raised during the reporting period to ensure that the revenue is completely recorded in the correct accounting period.
	7.	Performed analytical procedures on revenue recognised during the year to identify and inquire about unusual variances, if any, and obtained reasons for variances from the management of the Company.
	8.	Assessed the adequacy and appropriateness of the disclosures made in the standalone financial statements to ensure they are accurate, complete, and comply with the requirements of Ind AS 115.

Sr. Key Audit Matters No	How the Key Audit Matters was addressed in our audit
3 Capitalisation of Property, plant, and equipment.	In view of the significance of the matter, we applied the following
Refer Note 2.2 and Note 5 of standalone financial	audit procedures in this area, among others to obtain sufficient and
statements for related disclosures.	appropriate audit evidence:
During the year the Company has made additions to	1.	Performed an understanding of the systems, processes and
property, plant, and equipment amounting to H 1,268.06		controls implemented by the Company. Evaluated the design,
million which mainly relates to the cost of setting up the		implementation and the operating effectiveness of key internal
diagnostics centres across various geographies for contracts		financial controls over the costs capitalised to property, plant
entered during the year with government authorities and		and Equipment and those included in capital work in progress,
private parties. These costs include the cost of plant &		including approvals for Purchase Orders, Invoices, GRN and
machinery, civil and infrastructure, furniture and fixtures,		capitalisation of employee costs.
and other ancillary costs.	2.	Tested the reconciliation of balance as per fixed assets register to
Further, it has also applied judgements on estimating the life		the balance as per general ledger from the accounting records.
to be considered for depreciating the civil, infrastructure,	3.	Obtained physical verification reports of assets physically verified
and other ancillary costs taking into consideration the		by the management and performed reconciliation on sample basis
revenue contract term, lease terms, and other factors		to the fixed assets register.
including the history of the extension period for revenue	4.	Obtained the understanding of the employee cost capitalised
contracts.		and assessed whether the same meets the recognition criteria in
In addition to this, the Company has also identified employee		accordance with Ind AS 16.
costs incurred for the set-up of new centres and has	5.	Ensured existence and accuracy assertion by performing
applied judgment to assess if the costs incurred about new		substantive testing on selected samples of capital expenditure
centre meet the recognition criteria of property, plant, and		recorded during the year by testing the underlying documents
equipment in accordance with Ind AS 16		including purchase orders, invoices, GRN, working related to
This has been determined as a key audit matter due to		employee and other incidental costs capitalised, wherever
the significance of the capital expenditure incurred during		applicable.
the year and significant management judgment in the	6.	Obtained the technical evaluation for life of assets and residual
capitalisation of employee costs and estimating the life for		value from the Company and tested the reasonableness of the
depreciating the civil, infrastructure, and other ancillary		management assessment relating to the life of assets as assessed
costs.	7.	by the management for depreciation of the assets. Evaluated the management assessment on whether there are indicator of impairments and assessment performed by the management for no impairment provision.
	8.	Assessed the adequacy and appropriateness of the disclosures made in the standalone financial statements to ensure they are accurate, complete, and comply with the relevant Ind AS.

Information Other than the Standalone Financial
Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other
information. The other information comprises the Annual Report
but does not include the standalone financial statements and our
auditor''s report thereon.

Our opinion on the standalone 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 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
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 Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated
in section 134(5) of the Act with respect to the preparation of these
standalone financial statements that give a true and fair view of the
financial position, financial performance, changes in equity and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the 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 standalone
financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management
and Board of Directors are 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 the Board of Directors 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 Standalone
Financial Statements

Our objectives are to obtain reasonable assurance about whether
the standalone 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 standalone financial statements.

We give in "Annexure A” a detailed description of Auditor''s
responsibilities for Audit of the Standalone Financial Statements.

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 Act, we give
in "Annexure B”, 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) 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 the matters
stated in the paragraph 2(h)(vi) below on reporting under
Rule 11(g). The back-up of the books of account and
other books and papers maintained in electronic mode
for an accounting software has not been maintained on
servers physically located in India on a daily basis as the
daily back-up feature was enabled in the software only
with effect from May-06, 2024.

Further, in the absence of sufficient appropriate audit
evidence in the form of independent service auditor''s
report of the service organisation in relation to software

used by the Company for maintaining its books of
accounts for payroll processing we are unable to
comment whether back-up of the books of account and
other books and papers maintained in electronic mode,
have been kept in servers physically located in India on a
daily basis in relation to payroll processing.

(c) The Balance Sheet, the Statement of Profit and Loss
(including other comprehensive income), the 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 standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act;

(e) On the basis of the written representations received from
the directors as on March 31, 2025 taken on record by the
Board of Directors, none of the directors are disqualified as
on March 31, 2025 from being appointed as a director in
terms of Section 164(2) of the Act;

(f) The reservation relating to the maintenance of accounts
and other matters connected therewith are as stated
in paragraph 2(b) above on reporting under Section
143(3)(b) and paragraph 2(h)(vi) below on reporting
under Rule 11(g);

(g) With respect to the adequacy of the internal financial
controls with reference to standalone financial statements
of the Company and the operating effectiveness of such
controls, refer to our separate report in "Annexure C”;

(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 has disclosed the impact of pending
litigations on its financial position in its standalone
financial statements - Refer Note 50 to the
standalone financial statements;

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 transferred to the Investor Education and
Protection Fund by the Company.

iv. a. The Management has represented that, to the

best of its knowledge and belief, 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, 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, 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, as on the date of this audit
report, that the Company shall, 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.

c. Based on the audit procedures performed
that have been considered reasonable
and appropriate in the circumstances, and
according to the information and explanations
provided to us by the Management in this
regard 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 misstatement.

v. The final dividend paid by the Company during the
year in respect of the same declared for the previous
year is in accordance with section 123 of the Act to
the extent it applies to payment of dividend.

Further The Board of Directors of the Company have
proposed final dividend for the year which is subject
to the approval of the members at the ensuing
Annual General Meeting. The dividend declared is in
accordance with section 123 of the Act to the extent it
applies to declaration of dividend (Refer Note 62 to the
standalone financial statements).

vi. Audit trail

a. Based on our examination, which included
test checks, the Company has used an
accounting software for maintaining its
books of account which has a feature of
recording audit trail (edit log) facility and
the same has operated throughout the year
for all relevant transactions recorded in the
software. Further, during the course of our
audit, we did not come across any instance
of audit trail feature being tampered with.
Additionally, the audit trail of prior year has
been preserved by the Company as per the
statutory requirements for record retention.

b. Based on our examination which included test
checks, the Company has used an accounting
software for maintaining revenue, purchases
& inventory records, which has a feature of
recording audit trail (edit log) facility, except
that no audit trail feature was enabled at the
database level to log any direct data changes
as explained in Note 65 to the standalone
financial statements.

Further, where enabled, audit trail feature has
been operated for all relevant transactions
recorded in the accounting software. Also,
during the course of our audit, we did not come
across any instance of audit trail feature being
tampered with in respect of such accounting
software. Additionally, the audit trail of prior
year has been preserved by the Company
as per the statutory requirements for record
retention to the extent it was enabled and
recorded in prior years.

c. Based on our examination which included test
checks, the Company has used accounting
software for maintaining its payroll records,
which is managed and maintained by a
third-party software service provider as
explained in Note 65 to the standalone
financial statements. However, in absence of
adequate coverage in SOC report of the said
software we are unable to comment whether
the said accounting software has a feature
of recording audit trail (edit log) facility and
whether the same has operated throughout
the year for all relevant transactions
recorded in the software or whether there
is any instance of audit trail feature being
tampered with. Additionally, we are unable to
comment whether the audit trail in relation
to such payroll software of prior year has
been preserved by the Company as per the
statutory requirements for record retention.

3. In our opinion, according to information, explanations given to
us, the remuneration paid by the Company to its directors is
within the limits laid prescribed under Section 197 read with
Schedule V of the Act and the rules thereunder.

For M S K A & Associates

Chartered Accountants
ICAI Firm Registration No. 105047W

Vikram Dhanania

Partner

Place: Kolkata Membership No. 060568

Date: May 12, 2025 UDIN: 25060568BMJJQO8069

---

Mar 31, 2024

We have audited the accompanying standalone financial statements of Krsnaa Diagnostics Limited ("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 Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory information (hereinafter referred to as the "standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone 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 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, of its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) 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 Standalone 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 ("ICAI") together with

the ethical requirements that are relevant to our audit of the standalone 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 obtained by us is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note No. 50 of the financial statements in respect of additions made by the Income Tax Authorities consequent to an assessment order passed in relation to search and seizure conducted under section 132(1) and section 133A of the Income Tax Act 1961. The Company has filed an appeal with the Joint Commissioner (Appeals) or Commissioner of Income Tax (Appeals) of Income Tax against the said Order. As there is uncertainty on the ultimate outcome of the assessment proceedings, the impact on the current and previous period financial statements including income tax, interest and other charges if any, is currently unascertainable.

Our opinion is not modified in respect of the above matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in

our audit of the standalone financial statements for the year ended March 31, 2024. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matters

Sr. No.	Key Audit Matter	How the Key Audit Matter was addressed in our audit
1	Allowance for expected credit loss for trade receivables As of March 31, 2024, trade receivables amounted to H1,835.16 million against which provision of H54.50 million	In	view of the significance of the matter, we have applied the following audit procedures in this area, among others to obtain sufficient and appropriate audit evidence:
	was made towards expected credit loss in the books of account. Refer Note 13 of standalone financial statements for disclosures of trade receivables	1.	Obtained understating of the Company''s accounting policy on assessment of impairment of trade receivables, including design and implementation of related management controls around it.
	Calculation of expected credit losses is a complex area and requires management to make significant assumptions on	2.	Tested the operating effectiveness of key controls for samples selected.
	customer payment behaviour and estimate the level and timing of expected future cash flows.	3.	Obtained aging report of trade receivables and verified the completeness and accuracy of the same. Also reperformed aging for a sample of customer balances.

Sr. No.	Key Audit Matter	How the Key Audit Matter was addressed in our audit
	Hence, we have identified allowance for expected credit loss	4.	Verified the appropriateness of the method and model
	as a key audit matter in view of the significant management		used for computing the ECL provision and tested the
	judgment and estimation uncertainty involved.	5.	reasonableness of the underlying assumptions used therein. Ensured the same is consistent with previous years. Tested the mathematical accuracy of the computation and compared the Company''s provisioning rates against the historical trend of actual collection.
		6.	Evaluated management comments and recovery plans for trade receivables outstanding for more than 180 days, including validation of the same.
		7.	Requested for and obtained independent balance confirmations from the Company''s customers on a sample basis. Verified subsequent receipts after the year-end on a sample basis.
		8.	Verified the adequacy and accuracy of the disclosures made in the financial statement in relation to such provision is in accordance with the requirements of the relevant Ind AS.
2	Revenue Recognition from contracts with customers.	In view of the significance of the matter we applied the following
	The Company''s revenue significantly relates to diagnostic		audit procedures in this area, among others to obtain
	services provided by the large number of diagnostics centres set up across various states in India through Public Private Partnership ("PPP") agreements with government authorities and agreements with private hospitals. Revenue from diagnostics services is recognised at a point in time when the tests are conducted, and samples are processed. Owing to the high volume of sales transactions with customers and significant value of revenue being cash and carry basis increases the risk of revenue being recognised	1.	sufficient and appropriate audit evidence: Obtained an understanding of the systems, processes and controls implemented by the Company. Evaluated the design and implementation and the operating effectiveness of key internal financial controls with respect to revenue recognition including information and technology control environment, key IT application control over the Company''s IT systems which governs revenue recognition, authorisation of agreements & Invoices and those related to the reconciliation of revenue to cash.
	inappropriately and which highlights the criticality of sound	2.	Obtained list of revenue contracts and read the terms of
	internal processes of summarising and recording revenue to		contract.
	mitigate error and fraud risk.	3.	Tested the reconciliation of revenue as per the billing system
	In view of the above, we have identified revenue recognition as a key audit matter.	4.	to the revenue recorded as per the accounting records and the reconciliation of total revenue generated through cash to the amount deposited into the bank statements. Tested on a sample basis, manual journal entries relating to revenues to identify and inquire on unusual items, if any.
		5.	Performed substantive testing on samples selected using statistical sampling for revenue transactions recorded during the year by testing the underlying contracts, and patient test reports issued to verify the occurrence of the transaction and assess whether criteria for revenue recognition are met.
		6.	Ensured cut-off assertion by reviewing the Company''s revenue recognition policies, understanding the frequency and period of invoicing, and comparing the invoice counts to the invoices raised during the reporting period to ensure that the revenue is completely recorded in the correct accounting period.
		7.	Performed analytical procedures on revenue recognised during the year to identify and inquire about unusual variances, if any, and obtained reasons for variances from the management of the Company.
		8.	Assessed the adequacy and appropriateness of the disclosures made in the financial statements to ensure they are accurate, complete, and comply with the requirements of Ind AS 115.

Sr. Key Audit Matter No.	How the Key Audit Matter was addressed in our audit
3 Capitalisation of Property, Plant, and Equipment.	In view of the significance of the matter, we applied the following
During the year the Company has made additions to property,		audit procedures in this area, among others to obtain
plant, and Equipment amounting to H2,530.42 million (Refer		sufficient and appropriate audit evidence:
Note 5 to the standalone financial statements) which mainly	1.	Performed an understanding of the systems, processes
relates to the cost of setting up the diagnostics centres across		and controls implemented by the Company. Evaluated the
various geographies for contracts entered during the year		design, implementation and the operating effectiveness of
with government authorities and private parties. These costs		key internal financial controls over the costs capitalised to
include the cost of plant & machinery, civil & infrastructure,		property, plant and Equipment and those included in capital
furniture & fixtures, and other ancillary costs. Further, during		work in progress, including approvals for Purchase Orders,
the current year, the Company has re-assessed the useful life		Invoices, GRN and capitalisation of employee costs.
of assets and considered residual value in the computation	2.	Tested the reconciliation of balance as per fixed assets register
of depreciation resulting in a change in estimates(Refer Note		to the balance as per general ledger from the accounting
No. 5.1).		records.
Further, it has also applied judgements on estimating the life	3.	Obtained physical verification reports of assets physically
to be considered for depreciating the civil, infrastructure, and		verified by the management and performed reconciliation on
other ancillary costs taking into consideration the revenue contract term, lease terms, and other factors including the		sample basis to the fixed assets register.
history of the extension period for revenue contracts.	4.	Obtained the understanding of the employee cost capitalised and assessed whether the same meets the recognition
In addition to this, the Company has also identified employee costs incurred for the set-up of new centres and		criteria in accordance with Ind AS 16.
has applied judgment to assess if the costs incurred about new centre meet the recognition criteria of Property, Plant, and Equipment in accordance with Ind AS 16	5.	Ensured existence and accuracy assertion by performing substantive testing on selected samples of capital expenditure recorded during the year by testing the underlying documents including purchase orders, invoices, GRN, working related to
This has been determined as a key audit matter due to		employee and other incidental costs capitalised, wherever
the significance of the capital expenditure incurred during		applicable.
the year and significant management judgment in the	6.	Obtained the technical evaluation for life of assets and residual
capitalisation of employee costs and estimating the life for depreciating the civil, infrastructure, and other ancillary costs.		value from the Company and tested the reasonableness of the management assessment relating to the life of assets as
		assessed by the management for depreciation of the assets.
	7.	Evaluated the management assessment on whether there are indicator of impairments and assessment performed by the management for no impairment provision.
	8.	Assessed the adequacy and appropriateness of the disclosures made in the financial statements to ensure they are accurate, complete, and comply with the relevant IND AS.

Information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the Directors'' Report including Annexures to the Directors'' Report, Management Discussion and Analysis, Corporate Governance Report but does not include the standalone financial statements and our auditor''s report thereon. The other information is expected to be made available to us after the date of this auditor''s report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance under SA 720 ''The Auditor''s responsibilities Relating to Other Information''.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and Board of Directors are 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 the Board of Directors 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 Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial statements.

We give in "Annexure A" a detailed description of Auditor''s responsibilities for Audit of the Standalone Financial Statements.

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 Act, we give in "Annexure B" 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) 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 the matters stated in the paragraph 2(h)(vi) below on reporting under Rule 11(g).

(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of accounts.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.

(e) The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 2(b) above on reporting under Section 143(3)(b) and paragraph 2(h)(vi) below on reporting under Rule 11(g).

(f) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controls with reference to standalone financial

statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C".

(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 has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 49 to the standalone financial statements.

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 transferred to the Investor Education and Protection Fund by the Company.

iv. (1) The Management has represented that,

to the best of its knowledge and belief, 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, 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.

(2) The Management has represented, that, to the best of its knowledge and belief, 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, as on the date of this audit report, that the Company shall, 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.

(3) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard 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 (1) and (2) above, contain any material mis-statement.

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.

The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend. (Refer Note 61 to the Standalone financial statements.

vi. Based on our examination, the Company has used an accounting software for maintaining its books of accounts during the year ended March 31, 2024, which has a feature of recording audit trail (edit log) facility and the same has been enabled and operated throughout the year for all relevant transactions recording in the software. During the course of our examination, we did not come across any instance of the audit trail being tampered with.

Based on our examination, the Company has used two accounting software for maintaining its revenue and purchase records and processing its payroll transactions during the year ended March 31, 2024, which has a feature of recording audit trail (edit log) facility except that no audit trail feature was enabled at the database level in the accounting software to log any direct data changes throughout the period. Further, the audit trail facility has been operated throughout the year for all relevant transactions recorded in the accounting software, except at the database level as stated above, in respect of which the audit trail facility has not operated throughout the year for all relevant transactions recorded in this accounting software as it was not enabled. During the course of our examination, we did not come across any instance of the audit trail being tampered with.

3. In our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within the limits laid prescribed under Section 197 read with Schedule V of the Act and the rules thereunder.

For M S K A & Associates

Chartered Accountants ICAI Firm Registration No. 105047W

Shraddha D Khivasara

Partner

Place: Pune Membership No. 134285

Date: May 18, 2024 UDIN : 24134285BKEZBG7828

---

Mar 31, 2023

Independent Auditor''s Report

To the Members of Krsnaa Diagnostics Limited

Report on the Audit of the Standalone Financial
Statements

Opinion

We have audited the accompanying standalone financial
statements of Krsnaa Diagnostics Limited ("the Company"),
which comprise the Balance Sheet as at March 31, 2023,
and the Statement of Profit and Loss (Including Other
Comprehensive Income), Statement of Changes in Equity
and Statement of Cash Flows for the year then ended, and
notes to the standalone financial statements, including
a summary of significant accounting policies and other
explanatory information.

In our opinion and to the best of our information and
according to the explanations given to us the aforesaid
standalone 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 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, 2023, and
profit, other comprehensive income, changes in equity and
its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under section 143(10) of the
Act. Our responsibilities under those SAs are further
described in the Auditor''s Responsibilities for the
Audit of the Standalone 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 (ICAI) together with the
ethical requirements that are relevant to our audit of the
standalone 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 obtained by us is sufficient and appropriate
to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements for the year ended March
31, 2023. These matters were addressed in the context
of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

Key Audit Matters

Allowance for expected credit loss for trade
receivables

Refer Note 13 of standalone financial statements with
respect to the disclosures of trade receivables.

As on March 31,2023, trade receivables amount to '' 796.55
million against which provision of '' 51.10 million was made
towards expected credit loss in the books of account.

Calculation of expected credit loss is a complex area and
requires management to make significant assumptions on
customer payment behaviour and estimating the level and
timing of expected future cash flows.

We have identified allowance for expected credit loss as
a key audit matter in view of the significant management
judgement and estimation uncertainty involved.

How Was the Key Audit Matter Addressed in the
Audit

Our audit procedures in respect of this area include but
are not limited to following:

• Obtained understating of the Company''s accounting
policy on assessment of impairment of trade
receivables, including design and implementation
of related management controls around it. We have
verified the operating effectiveness of these controls
on a sample basis.

• Requested for and obtained independent balance
confirmations from the Company''s customers on
sample basis.

• Obtained ageing report of trade receivables and
verified the completeness and accuracy of the

same. Also reperformed ageing for sample of
customer balances.

• Verified the appropriateness of the method and model
used for computing the ECL Provision and tested the
reasonableness of the underlying assumptions used
therein. Ensured the same is consistent with previous
years and free from management bias.

• Tested the mathematical accuracy of the computation.

• Compared the Company''s provisioning rates against
historical trend of actual collection data.

• Evaluated management comments and recovery
plans for trade receivables outstanding for more than
180 days, including validation of the same.

• Verified subsequent receipts after the year-end on
sample basis.

• Verified the adequacy and accuracy of the disclosures
made in the financial statement in relation to such
provision in accordance with the requirements of the
relevant Ind AS.

Information Other than the Standalone Financial
Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the
other information. The other information comprises the
Directors'' Report including Annexures to the Directors''
Report but does not include the standalone financial
statements and our auditor''s report thereon.

Our opinion on the standalone 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 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 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 Standalone
Financial Statements

The Company''s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,

financial performance, changes in equity and cash flows of
the Company in accordance with the accounting principles
generally accepted in India, including the 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 standalone
financial statement that give a true and fair view and
are free from material misstatement, whether due to
fraud or error.

In preparing the standalone financial statements, the
Board of Directors 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 the
Board of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative
but to do so.

Those Board of Directors are also responsible for
overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the
Standalone Financial Statements

Our objectives are to obtain reasonable assurance about
whether the standalone 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 standalone financial statements.

We give in "Annexure A" a detailed description of
Auditor''s responsibilities for Audit of the Standalone
Financial Statements.

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 Act, we give in "Annexure B" 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) 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),
the Statement of Changes in Equity and the
Statement of Cash Flow dealt with by this Report
are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone
financial statements comply with the Accounting
Standards specified under Section 133 of the Act.

(e) On the basis of the written representations
received from the directors as on March 31,2023
taken on record by the Board of Directors, none
of the directors are disqualified as on March 31,
2023 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 standalone
financial statements of the Company and the
operating effectiveness of such controls, refer
to our separate Report in "Annexure C".

(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. 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 transferred to the Investor Education and
Protection Fund by the Company.

iv.

(1) The Management has represented that, to the
best of its knowledge and belief, 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, 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.

(2) The Management has represented, that, to
the best of its knowledge and belief, 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, as on
the date of this audit report, that the Company
shall, 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.

(3) Based on the audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, and according
to the information and explanations provided to
us by the Management in this regard 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 (1) and (2)
above, contain any material mis-statement.

(v) The final dividend paid by the Company during
the year in respect of the same declared for
the previous year is in accordance with section
123 of the Companies Act 2013 to the extent it
applies to payment of dividend.

The Board of Directors of the Company have
proposed final dividend for the year which is
subject to the approval of the members at the

ensuing Annual General Meeting. The dividend
declared is in accordance with section 123 of
the Act to the extent it applies to declaration
of dividend. (Refer Note 66 to the Standalone
financial statements)

(vi) As proviso to rule 3(1) of the Companies
(Accounts) Rules, 2014 is applicable for the
company only w.e.f. April 1, 2023, reporting
under this clause is not applicable.

3. In our opinion, according to information, explanations
given to us, the remuneration paid by the Company to
its directors is within the limits laid prescribed under
Section 197 of the Act and the rules thereunder.

For M S K A & Associates

Chartered Accountants
ICAI Firm Registration No. 105047W

Anup Mundhra

Partner

Place: Pune Membership No. 061083

Date: May 27, 2023 UDIN: 23061083BGTDAT4959