1.We have audited the accompanying financial statements of Shanmuga Hospital
Limited (formerly known as Shanmuga Hospital private limited) (the "Company"),
which comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit
and Loss and the Cash Flow Statement for the year ended, and notes to the
financial statements, including a summary of the significant accounting policies
and other explanatory information.
2.In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 as amended ("the Act") in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted
in India, of the state of affairs of the company as at 31st March, 2025, and profit, and
its cash flows for the year ended on that date.
BASIS FOR OPINION
3. We conducted our audit of the financial statements in accordance with the
Standards on Auditing (SAs) as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that
are relevant to our audit of the financial statements under the provisions of the Act
and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Financial Statements.
KEY AUDIT MATTERS
4 Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
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The Key audit matter
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How the matter was addressed in our audit
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Cash on Hand:
The company operates in cash due to
nature of the business. We focused on
this area as it is material to the financial
statements and area of significant risk for
our audit as it requires considerable time
and resource to audit due to its
magnitude, it is considered to be a key
audit matter.
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As at the reporting date, the balance of cash in hand was
not considered material in the context of the size and
nature of the Company's operations. However, due to the
inherent risk associated with cash transactions and the
need to ensure completeness and existence, this area
was considered significant for our audit.
In view of the above, we requested and relied upon the
physical cash verification report conducted by the
management as at the reporting date. Additionally, we
performed independent verification of cash on hand
during the audit period on a sample basis. We also
reviewed the reconciliation statements between the
physical cash and books of account, and no material
discrepancies were noted.
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INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR'S REPORT
THEREON
5. The Company's Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the
Company's Board Report including Annexures but does not include the financial
statements and our auditor's report thereon.
6. Our opinion on the financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
7. In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements, or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated.
8. If, based on the work we have performed, we conclude that there is no material
misstatement of this other information, we are required to report that fact and we
have nothing to report in this regard.
Management's Responsibility for the Financial Statements:
9. 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 financial statements that
give a true and fair view of the financial position, financial performance, changes in
equity and cash flows 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 judgements 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 accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
10. In preparing the financial statements, management is responsible for assessing the Company's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
11. The Board of Directors are also responsible for overseeing the Company's financial reporting
process
12. Auditor's Responsibilities for the Audit of the Financial Statements:
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole or free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
13. As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
i. Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
ii. Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of
the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
iv. Conclude on the appropriateness of management's use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company's
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor's report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
v. Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
14. Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the 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 financial statements.
15. 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.
16. We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements:
17. 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, based on our audited
financial statements, we give in "Annexure - A" a statement on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable
18. As required by Section 143(3) of the Act, we report that:
i. 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.
ii. 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.
iii. The Balance Sheet, the Statement of Profit and Loss, and the Statement of Cash Flow dealt with by
this Report are in agreement with the books of account.
iv. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified
under Section 133 of the Act read with the Rule 7 of Companies (Accounts) Rules, 2014, as amended.
v. On the basis of the written representation received from the directors as on March 31, 2025, taken
on records 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.
vi. Reporting with respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate Report in
"Annexure B". Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company's internal financial control over financial reporting.
vii. With respect to the other matters to be included in the Auditor's Report in accordance with the
requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid/provided by the Company to its directors during the period is in accordance with
the provisions of section 197 read with Schedule V to the Act.
viii. With respect to the other matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of
our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its
financial statements - Refer Note No.28 (Other Notes to Accounts) to the 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 (which
are material either individually or in the aggregate) 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 or entity, including foreign entity ("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, no funds have
been received by the Company from any person or entity, including foreign entity ("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;
c) Based on the 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 (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.
v. The Company did not declare or paid any dividend during the period.
vi. Based on our examination which included test checks, the Company has used accounting
software for maintaining its books of account, which have a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded in the
respective software.
Further, for the periods where audit trail (edit log) facility was enabled and operated throughout the
year for the respective accounting software, we did not come across any instance of the audit trail
feature being tampered with.
For P P N And Company
Chartered Accountants
Sd/-
R Rajaram
Partner
Firm's Registration No: 013623S
Peer Review Certificate No.013578
Place: Chennai M. No: 238452
Date: 28-05-2025 UDIN: 25238452BMHSUK7930
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