We have audited the financial statements of LOOKS HEALTH SERVICES LIMITED ("the Company"), which comprise the balance
sheet as at March 31, 2025, the statement of Profit and Loss, and statement of cash flows for the year then ended, and notes to
the 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 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 accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025,
and profit 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 Companies
Act, 2013. 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 opinion.
Key Audit matters
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.
|
Key Audit Matters:
Expected credit loss allowances
Recognition and measurement of impairment of financial
assets involve significant management judgement. With
the applicability of Ind AS 109, credit loss assessment is
now based on expected credit loss (ECL)model .The
Company's impairment allowance is derived from
estimates including the historical default and loss ratios.
Management exercises judgement in determining the
quantum of loss based on a range of factors. The most
significant areas are loan staging criteria, calculation of
probability of default / loss and consideration of
probability weighted scenarios and forward-looking
macroeconomic factors. There is a large increase in the
data inputs required by the ECL model. This increases the
risk of completeness and accuracy of the data that has
been used to create assumptions in the model. In some
cases, data is unavailable and reasonable alternatives have
been applied to allow calculations to be performed. As per
management opinion, there is no expected credit loss in
several financial assets including the trade receivables and
other financial assets of the Company and all are on fair
value, based on the assessment and judgement made by
the board of the company.
|
How the matter was addressed in our Audit
In view of the significance of the matter we applied the following audit
procedures, on test check basis, in this area, among others to obtain
reasonable audit assurance:
• We evaluated management's process and tested key controls
around the determination of extent of requirement of expected credit
loss allowances, including recovery process & controls implemented in
the company for trade receivables and other financial assets. It was
explained to us by the management that the control exists relating to
the recovery of receivables, including those aging for large periods and
in the opinion of the board there is no requirement making expected
credit loss allowance.
• We have also reviewed the management response and
representation on recovery process initiated for sample receivables,
and based on the same we have place reliance on these key controls for
the purposes of our audit.
|
|
Appropriateness of Current and Non-Current
Classification
|
For the purpose of current & non-current classification the Company
has considered its normal operating cycle as 12 Months and the same is
based on services provided, acquisition of assets or inventory, their
realization in cash and cash equivalents. The classification is either
done on basis of documentary evidence and if not then on the basis of
|
| |
managements best estimate of period in which asset would be realized
or liability would be settled.
|
|
Revenue Recognition
The principal business of the company is providing
dental and other cosmetic/non- cosmetic services & sale
of supporting medicine. Revenue from services is
recognized upon rendering of service & receipt of payment
at clinic. Revenue from sale is recognized upon transfer of
significant risk and reward & transfer of control of goods
to customers.
We identified revenue recognition as a key audit matter
because there is a risk of revenue considering the
judgments involved in the revenue recognition for
services.
|
In view of the significance of the matter we applied the following audit
procedures, on test check basis, in this area, among others to obtain
reasonable audit assurance:
Assessed the appropriateness of the revenue recognition accounting
policies, by comparing with applicable accounting standards.
Evaluated the design of controls and operating effectiveness of the
relevant controls with respect to revenue recognition and accounting
for services/sales.
Performed substantive testing by selecting samples of revenue
transactions recorded during the year by verifying the underlying
documents.
Carried out analytical procedures on revenue recognized during the
year to identify unusual variances.
Performed confirmation procedures on trade receivable balances at the
balance sheet date on a sample basis.
Tested, on a sample basis, specific revenue transactions recorded
before and after the financial year end date to determine whether the
revenue had been recognised in the appropriate financial period.
|
Information other than the financial statements and auditors' report thereon
The Company's board of directors is responsible for the preparation of the other information. The other information comprises
the information included in the Management Discussion and Analysis, Board's Report including Annexure to Board's Report,
Business Responsibility Report, Corporate Governance and Shareholder's Information, but does not include the financial
statements and our auditor's report thereon.
Our opinion on the 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 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.
The Director's report is not made available to us at the date of this auditor's report. We have nothing to report in this regard.
Management's Responsibility for the 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 financial statements that give a true and fair view of the financial position, financial performance 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 financial statement that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going
concern, disclosing, as applicable, 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. The
Board of Directors is also responsible for overseeing the Company's financial reporting process.
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 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 financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout
the audit. We also:
• 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.
• 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 Companies Act, 2013, 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 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 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 financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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
(1) 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.
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.
Report on Other Legal and Regulatory Requirements
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 Companies Act, 2013, we give in the Annexure "A" statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
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, and the Cash Flow Statement dealt with by this Report are in agreement
with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(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 is disqualified as on March 31, 2025 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 over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B";
(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; and
(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. Except disputed tax liabilities mentioned in Annexure A point (vii) (c), 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, and
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 that, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to
or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented, that, to the best of its knowledge and belief that, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether
recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has
come to their 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 mis-statement.
v. No dividend has been declared or paid during the year by the Company.
vi. Based on our examination which included test checks, the company has used accounting software for maintaining its books
of account 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.
For KPSJ&ASSOCIATES LLP
(Chartered Accountants)
FRN: 124845W/W100209
Sd/-
PRAKASHCHANDRA PARAKH
(Partner)
M.NO:039946
UDIN: 25039946BMIFAO6391
Place: Ahmedabad
Date: 26/05/2025
|