We have audited the accompanying standalone financial statements of Sakar Healthcare Limited (“the Company”), which
comprise the Balance Sheet as at March 31,2026, and the Statement of Profit and Loss (including Other Comprehensive
Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of
significant accounting policies 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 the 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 31,2026, and its profit, total 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 (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 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
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.
We have determined the matters described below to be the key audit matters to be communicated in our report.
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The Key Audit matter
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How our audit addressed the key audit matter
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Existence and Valuation of Inventory
(Refer Note 7 to the Standalone Financial Statements
and the Significant Accounting Policy relating to
Inventories)
As at 31 March 2026, the Company's inventory amounted
to Rs. 7,004.14 lakhs, representing a significant portion
of its total assets.
The inventory primarily comprises raw materials, packing
materials, work-in-progress and finished goods. Owing
to the nature of the Company's operations, the
determination of inventory value involves management
judgement in identifying the appropriate cost of inventories
and assessing their net realisable value in accordance
with Ind AS 2 - Inventories.
Further, considering the volume, diversity and value of
inventory held across various locations, together with the
inherent risk associated with the physical existence of
inventory and possible obsolescence or slow-moving
items, this area required significant audit attention.
Accordingly, the existence and valuation of inventory were
considered to be matters of most significance in our audit
and have therefore been determined to be a Key Audit
Matter.
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Our audit procedures included, among others:
• Obtained an understanding of and evaluated the design,
implementation and operating effectiveness of key
internal controls relating to inventory procurement,
recording, physical verification and valuation.
• Attended the year-end physical verification of inventories
at selected locations and performed test counts in
accordance with the requirements of SA 501 - Audit
Evidence - Specific Considerations for Selected Items.
Where attendance was not practicable, we performed
alternative audit procedures to obtain sufficient
appropriate audit evidence regarding the existence of
inventories.
• Tested, on a sample basis, the valuation of inventories by
verifying purchase invoices, cost records, bills of materials
and other supporting documents to assess the
appropriateness of the cost assigned to inventories.
• Evaluated the methodology adopted by management for
determining the cost of inventories and assessed its
consistency with the accounting policy and the
requirements of Ind AS 2.
• Reviewed management's assessment of slow-moving,
expired, damaged and obsolete inventories and
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The Key Audit matter
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How our audit addressed the key audit matter
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evaluated the adequacy of provisions made, wherever
required, based on ageing reports and subsequent sales
or consumption.
• Performed analytical procedures on inventory balances,
inventory turnover ratios and gross profit margins and
investigated significant or unusual variances.
• Assessed the adequacy and appropriateness of the
disclosures relating to inventories made in the standalone
financial statements.
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Capitalisation of Product Development Expenditure
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Our audit procedures in relation to the capitalisation of
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(Refer Note 3(a) and the Significant Accounting Policies
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product development expenditure included, among others:
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to the Financial Statements)
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• Obtained an understanding of and evaluated the design
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During the year, the Company incurred significant
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and implementation of controls over the identification,
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expenditure towards the development of new products,
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approval and capitalisation of product development
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which has been capitalised under Other Intangible
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expenditure.
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Assets in accordance with Ind AS 38 - Intangible Assets.
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• Assessed the Company's accounting policy for
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The capitalised expenditure comprises employee benefit
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capitalisation of development expenditure for compliance
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expenses of personnel directly engaged in product
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with the requirements of Ind AS 38.
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development, licence and regulatory approval fees,
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• Tested, on a sample basis, the expenditure capitalised
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technical and testing costs, and other directly attributable
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during the year by examining supporting documentation,
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development costs.
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including payroll records, licence fee invoices, technical
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The recognition of development expenditure as an
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reports, vendor invoices and other relevant records to
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intangible asset involves significant management
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verify that the expenditure was directly attributable to
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judgement in determining whether the recognition criteria
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product development activities.
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prescribed under Ind AS 38 have been satisfied. These
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• Evaluated management's assessment supporting the
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include assessment of technical feasibility, management's
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satisfaction of the recognition criteria under Ind AS 38,
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intention and ability to complete the development,
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including technical feasibility, intention and ability to
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probability of future economic benefits, availability of
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complete the development, availability of resources, and
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adequate technical and financial resources, and the
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expectation of future economic benefits.
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reliable measurement of development costs. Further,
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• Reviewed project-wise documentation, management
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management is required to estimate the useful life over
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approvals, development status reports and budgets
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which the capitalised assets are expected to generate
economic benefits and determine the related amortisation
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supporting the capitalisation of development expenditure.
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period.
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• Assessed the reasonableness of the estimated useful
life adopted for amortisation with reference to the nature
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Considering the materiality of the capitalised balance and
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of the products, expected commercial life, historical
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the significant judgement involved in determining the
eligibility of expenditure for capitalisation and the
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experience and industry practices.
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estimation of useful life, this matter was considered to be
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• Recomputed amortisation on a sample basis and verified
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one of the most significant matters in our audit and,
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its mathematical accuracy.
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accordingly, has been determined to be a Key Audit Matter.
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• Evaluated the adequacy and appropriateness of the
disclosures made in the financial statements relating to
capitalised development expenditure and the significant
judgements applied by management.
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Information other than the Financial Statements and Auditors' Report thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the information
included in the Management Discussion and Analysis, Business Responsibility Report, Board's Report and Corporate
Governance Report, but does not include the consolidated financial statements, the standalone financial statements and
our audit reports 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 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 Ind AS 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 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 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 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.
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.
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.
- 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 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 year 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 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.
e) On the basis of the written representations received from the directors as on March 31,2026 taken on record by
the Board of Directors, none of the directors is disqualified as on March 31, 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 over financial reporting 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
over financial reporting.
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 statement. Refer Clause Vii(b) of Annexure - B 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.
Based on our examination which included test checks, the company has used an accounting software for maintaining
its books of account which have a feature of recording audit trail (edit log) facility and the same was operated
throughout the year for all relevant transactions recorded in the software.
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 J S Shah & Co
Chartered Accountants
FRN : 132059W
Jaimin S Shah
Place: Ahmedabad Partner
Date : 12.05.2026 Membership No. : 138488
UDIN : 26138488MNCDDV3893
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