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You can view full text of the latest Auditor's Report for the company.

BSE: 544306ISIN: INE570L01029INDUSTRY: Pharmaceuticals

BSE   ` 1785.00   Open: 1625.00   Today's Range 1617.95
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Year End :2026-03 

We have audited the accompanying standalone financial statements
of Sai Life Sciences Limited (the “Company”), which comprise the
Balance Sheet as at 31 March 2026 and the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of Cash Flows
and the Statement of Changes in Equity for the year ended on that date
and notes to the financial statements, including a summary of material
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, (“Ind AS”) and other accounting principles generally accepted
in India, of the state of affairs of the Company as at 31 March 2026, its
profit and other comprehensive income, its cash flows and the changes
in equity 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 (“SA”s) specified under
section 143(10) of the Act. Our responsibilities under those Standards
are further described in the Auditor's Responsibility 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 made thereunder and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAI's
Code of Ethics. We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements.

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 of the current period. 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 Matter
No.

Auditor’s Response

1 Revenue recognition for fixed price contracts.

Principal audit procedures performed included the following:

The Company enters into fixed price contracts

•

Evaluated the Company's revenue recognition accounting policies and compliance with

with customers. In line with Ind AS 115, revenue

applicable accounting standards.

in respect of such contracts is recognized over

•

We have performed walkthrough and obtained detailed understanding of the Company's

time under the percentage completion method,
where it is assessed that the performance

revenue recognition process.

obligations are satisfied over time. Refer Note 4
and 26 of the standalone financial statements.

•

Evaluated the design, implementation and operating effectiveness of Company's internal
financial controls with respect to revenue recognition.

Significant judgement and/or estimates are
involved in assessing the timing of satisfaction

•

Evaluated the integrity of the general information and technology control environment and
tested the operating effectiveness of IT controls over recognition of revenue.

of performance obligations under the aforesaid

•

We have analyzed customer contracts on sample basis to identify arrangements

contracts and the extent of completion of the

entered by the Company for compliance with Ind AS 115 to evaluate appropriateness of

performance obligations at the balance sheet

recognition of revenue.

date.

•

We have reviewed the estimation of project costs and the methodology used to measure

Given the above and its significant impact on

progress towards project completion.

the financial statements, revenue recognition

•

We have performed substantive testing by selecting samples of revenue recorded during

for fixed price contracts is identified as a Key

the year and verified the underlying documents which include sales invoice, customer

Audit Matter.

contracts, delivery documents.

•

Evaluated the adequacy of the disclosures related to revenue recognition and significant
estimates in the standalone financial statements.

Information Other than the Financial Statements and Auditor’s
Report Thereon

• The Company's Board of Directors is responsible for the other
information. The other information comprises the Director's report,
Corporate Governance Report, Management Discussion and
Analysis Report and Business Responsibility and Sustainability
Report (but does not include the consolidated financial
statements, standalone financial statements and our auditor's
report thereon). The Director's report, Corporate Governance
Report, Management Discussion and Analysis Report and Business
Responsibility and Sustainability Report 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 will 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 during the course of our audit or otherwise
appears to be materially misstated.

• When we read the Director's report, Corporate Governance Report,
Management Discussion and Analysis Report and the Annual
Report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those
charged with governance as required under SA 720 ‘The Auditor's
responsibilities Relating to Other Information'.

Responsibilities of Management and Board of Directors 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 including other comprehensive
income, cash flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India, including
Ind AS 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 the assets
of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.

In preparing the standalone financial statements, 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 intend to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.

The Company's Board of Directors is also responsible for overseeing the
Company's financial reporting process.

Auditor’s Responsibility 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.

As 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 risks of material misstatement of the
standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks
and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to
the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)0) of the Act, we

are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls with reference
to standalone financial statements in place and the operating
effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by 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 financial
controls that we identify during our audit.

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 Section 143(3) of the Act, based on our audit,

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 Cash Flows and Statement of Changes in Equity dealt
with by this Report are in agreement with the relevant
books of account.

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

e) On the basis of the written representations received from
the directors as on 31 March 2026 taken on record by the
Board of Directors, none of the directors is disqualified as on
31 March 2026 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

A”. Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Company's
internal financial controls with reference to standalone
financial statements.

g) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements
of section 197(16) of the Act, as amended, in our opinion
and to the best of our information and according to the
explanations given to us, the remuneration paid by the
Company to its directors during the year is in accordance
with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according
to the explanations given to us:

i. The Company has disclosed the impact of pending
litigations on its financial position in its standalone
financial statements - Refer Note 42 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, other than
as disclosed in the note 43 to the standalone
financial statements 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, other than
as disclosed in the note 43 to the standalone
financial statements, 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, 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 has not declared or paid any

dividend during the year and has not proposed final
dividend for the year.

vi. Based on our examination, which included test checks,
the Company has used accounting software systems
for maintaining its books of account for the financial
year ended 31 March 2026 which have the feature of
recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant
transactions recorded in the software systems. Further,
during the course of our audit we did not come
across any instance of the audit trail feature being
tampered with and the audit trail has been preserved
by the Company as per the statutory requirements for
record retention.

2. 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 B” a statement on the
matters specified in paragraphs 3 and 4 of the Order.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm's Registration No. 117366W/W-100018)

Sathya P Koushik

Partner

Place: Hyderabad Membership No.206920

Date: 14 May 2026 UDIN: 26206920GNSPTE6621