We have audited the accompanying Standalone financial statements of Aspira Pathlab & Diagnostics Limited ("the
Company"), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including the
statement of Other Comprehensive Income), Statement of Cash Flows and the Statement of Changes in Equity 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 ("Ind AS") prescribed
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind
AS Rules"), and other accounting principles generally accepted in India, of the state of affairs of the Company as
at March 31, 2025, and its profit/(loss), total comprehensive income/(loss), 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
("SAs") specified under section 143(10) of the Act. Our responsibilities under those SAs 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.
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Key Audit Matter
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How the matter was addressed in our audit
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Revenue Recognition-
The Company's major part of revenue relates to
billing to direct /retail customers/patients which
comprise of high volumes of individually small
transactions recorded in the books through sales
vouchers and journals.
Revenue comprises of revenue from providing
healthcare services such as health check-up and
laboratory services. Revenue is recognized to the
extent that it is probable that the economic benefits
will flow to the Company and the revenue can be
reliably measured. Revenue from rendering services
is recognised on an accrual basis as and when
services are performed.
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Audit procedures performed:
In view of the significance of the matter, we applied
the following audit procedures in this area, among
others to obtain sufficient appropriate audit
evidence:
• Obtaining an understanding of and assessing the
design, implementation and operating
effectiveness of relevant internal controls relating
to the recognition of revenue, including those
related to the reconciliation of sales records to
cash / credit card / online receipts, preparation,
posting and approval of manual sales voucher
and journal entries relating to revenue
recognition.
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Revenue comprises of amount billed (net of
discounts) in respect of tests conducted and is
recognized as and when the samples are registered
for the purpose of conducting the tests which usually
take not more than 48 hours.
The timing of revenue recognition is relevant to the
reported performance of the Company. The
management considers revenue as a key measure for
evaluation of performance. Since revenue comprises
of high volumes of individually small transactions,
the process of summarizing and recording sales
revenue is critical with regard to the completeness,
existence and accuracy of retail sales revenue.
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• Testing the accuracy of retail revenue recorded
during the year by examining that the sale of
service transactions are in agreement with the
cash / credit card / online receipts and deposit of
cash amounts recorded in daily cash reports with
bank remittances, on sample basis.
• Testing whether the sales have been recorded in
the correct period by selecting samples of
reconciliation between sales transactions and cash
/ credit card / online and agreeing those
reconciliations through supporting
documentation.
• Obtaining reconciliation of sales as per books of
account with the sales as per billing software and
inquire about reasons for differences, if any.
• Obtaining an understanding of and assessing the
design, implementation and operating
effectiveness of relevant internal and IT controls.
• Testing of the automated controls for pick of the
prices automatically as defined in the system
based on the tests selected.
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Key Audit Matter
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How the matter was addressed in our audit
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Trade receivables-collectability and certainty
The gross balance of trade receivables as at 31 March
2025 amounted to Rs 309.57 lakhs, against which the
Company has recorded, expected credit loss
provision of Rs. 74.41 lakhs. The collectability of trade
receivables is a key element of the Company's
working capital management.
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on trade
receivables which is based on the credit loss incurred
in the past, current conditions and forecasts of future
conditions.
Estimation of provisions and assessment of
recoverability of amounts involves significant degree
of judgement and evaluation basis the ongoing
communications with the respective parties.
The Company's disclosures are included in Notes to
the financial statement, which outlines the
accounting policy for determining the allowance for
doubtful debts and details of the period-on-period
movement in gross and net trade receivables.
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Audit procedures performed:
We have performed following audit procedures
over trade receivables:
• Obtained an understanding the process adopted
by the Company for calculation, recording and
monitoring of the impairment loss recognized for
expected credit loss.
• We assessed and tested the design and operating
effectiveness of key controls over completeness
and accuracy of the key inputs and assumptions
considered for calculation, recording and
monitoring of the impairment loss recognized.
Also, evaluated the controls over the ECL
modeling process, validation of data and related
approvals.
• We discussed with the management about the
conditions leading to and their assessment of
recoverability of dues from the debtors and also
referred to the available communication, if any,
between them.
• We referred to the aging of trade and other
receivables and discussed the key balances to
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In view of the above, the matter has been determined
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establish the management's assessment of
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to be a key audit matter.
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recoverability of such dues.
• Obtaining evidence of subsequent receipts from
the trade receivables.
• We have assessed the adequacy of disclosures
made by the management in the Standalone
financial statements to reflect the expected credit
loss provision and trade receivables, including
relevant Notes to the financial statement.
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Other Information
The Company's Management and Board of Directors are responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board's Report
including Annexures to Board's Report, Business Responsibility Report, Corporate Governance and Shareholder's
Information, 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 during the course of our 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.
Management's Responsibility for the Standalone Financial Statements
The Company's Management and Board of Directors are 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 Ind AS prescribed under section 133 of the Act read with Ind AS Rules, as
amended, and other accounting principles generally accepted in India.
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 the design, implementation and maintenance of adequate internal financial control
that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the Standalone financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the 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 management 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 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 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
system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Management and Board of Directors.
• Conclude on the appropriateness of Management and Board of Directors use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the Standalone financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the Standalone financial statements, including
the disclosures, and whether the Standalone financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone
financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the Standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
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.
Other Matter
The standalone financial statements of the company for the year ended March 31, 2024 were audited by the
predecessor auditors, P Khetan & Co, who have expressed an unmodified opinion on these financial statements
vide their report dated 28th May 2024.
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 purpose 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 not complying with the requirement of audit trail
as stated in (i)(vi) below;
(c) The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, Cash Flow
Statement and Statement of Changes in Equity 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 Ind AS specified under
section 133 of the Act, read with Ind AS Rules; as amended;
(e) On the basis of written representations received from the directors as on March 31, 2025, and taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2025, from being
appointed as a director in terms of section 164 (2) of the Act;
(f) the modification relating to the maintenance of accounts and other matters connected therewith are as
stated in the paragraph 1(b) above on reporting under Section 143(3)(b) and paragraph i(vi) below on
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to financial statement of the
company and operating effectiveness of such controls, refer to our separate Report in "Annexure-A" to this
report.
(h) 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.
(i) 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 No 34 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 (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 (which are
material either individually or in the aggregate) 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 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 dividend during the year.
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
except for the instances mentioned below and as explained in note 42 of the Standalone financial
statements,
i. The feature of recording audit trail (edit log) facility was not enabled at the database level to log
any direct data changes for the Tally Prime accounting software used for maintaining the books of
accounts.
ii. Further, for the periods where audit trail (edit log) facility was enabled and operated for the
respective accounting software, we did not come across any instance of the audit trail feature being
tampered with.
vii. The audit trail, to the extent maintained in the current and prior year, 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
of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure-B a statement on the
matters specified in paragraphs 3 and 4 of the Order.
For Sarda Soni Associates LLP
Chartered Accountants
Firm Reg. No- 117235W/W100126
(Manoj Kumar Jain)
Partner
Membership No- 120788
Place- Mumbai UDIN:25120788BMIEFF8554
Date- 16.05.2025
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