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Dr Lal Pathlabs Ltd.

BSE: 539524 Sector: Health care
NSE: LALPATHLAB ISIN Code: INE600L01024
BSE 11:50 | 26 Sep 2551.15 35.60
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NSE 11:39 | 26 Sep 2558.00 43.10
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OPEN 2497.25
PREVIOUS CLOSE 2515.55
VOLUME 29689
52-Week high 4056.45
52-Week low 1805.10
P/E 70.79
Mkt Cap.(Rs cr) 21,264
Buy Price 2550.10
Buy Qty 12.00
Sell Price 2551.15
Sell Qty 9.00
OPEN 2497.25
CLOSE 2515.55
VOLUME 29689
52-Week high 4056.45
52-Week low 1805.10
P/E 70.79
Mkt Cap.(Rs cr) 21,264
Buy Price 2550.10
Buy Qty 12.00
Sell Price 2551.15
Sell Qty 9.00

Dr Lal Pathlabs Ltd. (LALPATHLAB) - Auditors Report

Company auditors report

To The Members of Dr. Lal PathLabs Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Dr.Lal PathLabs Limited ("the Company") which comprise the Balance Sheet as at 31March 2022 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 endedand a summary of significant accounting policies and other explanatory information. In ouropinion and to the best of our information andaccordingtotheexplanationsgiventoustheaforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and its profit total comprehensive income its cash flows and the changes in equity forthe year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibility for the Audit of the Standalone Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. Key Audit Matter Auditor's Response
1 Revenue recognition – Reliance on information technology and system for controls over pricing master file Principal audit procedures performed:
We identified reliance on information technology and system for controls over pricing master file as a key audit matter due to likelihood of material misstatement in revenue recognition resulting from unauthorised alterations to the pricing master file on account of high volume of patient transactions. Obtained an understanding of and assessed and tested the design implementation and operating effectiveness of relevant internal controls relating to authorisation of alterations to the pricing master file.
Tested the controls around the access rights to the price masters by involving information technology specialists.
Refertonote2.3andnote 27 to the standalone Ind AS financial statements. Tested the automated controls for auto pick of the prices defined in the system based on the tests selected.
Tested the reports of changes in the pricing master files for completeness and accuracy by involving information technology specialists and for the selected samples of alterations during the year verified that the changes were authorised.
Selected samples of the invoices and verified the billed price in respect thereof to the underlying agreements.
2 Impairment of investment in Suburban Diagnostics (India) Private Limited (‘SDIPL'): (Refer to note 6 to the standalone financial statements) Principal audit procedures performed:
During the year the Company has acquired 100% stake in SDIPL which is evaluated for impairment if any by the management. _ Evaluated the design implementationandtested operating effectiveness of internal controls relating to review of impairment of the investment in SDIPL performed by the Management;
We considered this as key audit matter due to the significance of the investment amount and the Company's assessment of impairment of investment using value- in-use approach which involves significant estimations and judgements with respect to expected growth rates (including terminal growth rate) and discount rates to prepare the forecasted financial information. Validated the underlying cash flow forecasts prepared by the Company's management in their valuation and compared the same with the Company's approved budgets;
With the involvement of our valuation experts verified the mathematical accuracy of the model and evaluated the appropriateness of the key assumptions viz. discount rate terminal growth rate and methodology used;
Evaluated the sensitivity analysis performed by the management on the projections by varying key assumptions such as discount and growth rates (including terminal growth rate);
We have also assessed the adequacy of the related disclosure to be made in the financial statements.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Director's Report including annexures to Director'sReport Business Responsibility Report and Report on Corporate Governance but does notinclude the consolidated financial statements standalone financial statements and ourauditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the standalone financialstatements management is responsible for assessing the Company's ability to continueas a going concern disclosing as applicable matters related to going concern and usingthe going concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. Those Boardof Directors are also responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic 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 maintainprofessional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal financial control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (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 financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that: a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit. b) Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. c) The Balance Sheet the Statementof Profit and Loss including Other Comprehensive Income the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account. d) In our opinion the aforesaid standalone financial statements comply withthe Ind AS specified under Section 133 of the Act. e) On the basis of the writtenrepresentations received from the directors as on 31 March 2022 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2022 from beingappointed as a director in terms of Section 164(2) of the Act. f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in"Annexure A". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting. g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amendedInouropinionandtothebestofourinformation and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act. h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 as amended in our opinion and to the best of our informationand according to the explanations given to us: i. The Company has disclosed the impact ofpending litigations on its financial position in its standalone financial statements -Refer note 37 to the standalone financial statements; ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses - Refer note 53 to the standalone financial statements. iii. There wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the

Company - Refer note 54 to the standalone financial statements. iv. (a)The Management has represented that to the best of it's knowledge and belief asdisclosed in the note 49 to the financial statements no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other persons or entities including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of it'sknowledge and belief other than as disclosed in the note 49 to the financial statementsno funds have been received by the Company from any persons or entities including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the Company shall directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries. (c) Based on the audit proceduresperformed that have been considered reasonable and appropriate in the circumstancesnothing has come to our notice that has caused us to believe that the representationsunder sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and (b) above containany material misstatement. v. The final dividend proposed in the previous year declaredand paid by the Company during the year is in accordance with section 123 of the Act asapplicable.

The interim dividend declared and paid by the Company during the yearand until the date of this report is in compliance with section 123 of the Act.

As stated in note 19 to the financial statements the Board ofDirectors of the Company has proposed final dividend for the year which is subject to theapproval of the members at the ensuing Annual General Meeting. The dividend proposed is inaccordance with section 123 of the Act as applicable.

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 theOrder.

For Deloitte Haskins & Sells LLP

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

Jitendra Agarwal

Partner Place: New Delhi (Membership No. 87104) Date: 17 May 2022 U (DIN 22087104AJCRVM2127)

"Annexure A" to the

Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Dr. Lal PathLabs Limited ("the Company") as of 31 March 2022 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal controlstatedintheGuidanceNoteonAuditofInternal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018) Jitendra Agarwal
Partner
Place: New Delhi (Membership No. 87104)
Date: 17 May 2022 (UDIN 22087104AJCRVM2127)

"Annexure B" to the

Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that (i) (a) A. The Companyhas maintained proper records showing full particulars including quantitative details andsituation of property plant and equipment capital work-in-progress and relevant detailsof right-of-use assets.

B. The Company has maintained proper records showing full particularsof intangible assets.

(i) (b) The Company has a program of verification of property plantand equipment capital work- in-progress and right-of-use assets so as to cover all theitems in a phased manner over a period of two years which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogram certain property plant and equipment capital work- in-progress andright-of-use assets were due for verification during the year and were physically verifiedby the Management during the year. According to the information and explanations given tous no material discrepancies were noticed on such verification. (i) (c) With respect toimmovable properties (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the Company) disclosed in the financialstatements included in property plant and equipment according to the information andexplanations given to us and based on the examination of the registered sale deed /transfer deed/ conveyance deed/ lease deeds/ occupancy certificate provided to us wereport that the title deeds of such immovable properties are held in the name of theCompany as at the balance sheet date except for the following:

Description of property As at the balance sheet date Held in the name of Whether promoter director or their relative or employee Period held* Reason for not being held in name of Company*
Gross carrying value (Rs Million) Carrying value in the financial statements (Rs Million)
Flat No 4A First Floor 11 B.T. Road Baranagar Parganas (north) Kolkatta 0.18 0.10 Dr. Lal PathLabs Private Limited No 1 April 2013 These properties were acquired pursuant to the amalgamation of Medicave Diagnostic Centre Private Limited with the Company with effect from 21 May
Flat No 4 First Floor 11 B.T. Road Baranagar Parganas (north) Kolkatta 0.18 0.10 Dr. Lal PathLabs Private Limited No 1 April 2013 2015 with the appointed date being 1 April 2013. The title of these properties was mutated in the name of Dr. Lal PathLabs Private Limited on 19 February 2018.
Flat no. 3 Premises no. 11 Mouza Nainan B.T. Road Baranagar along with Garage 0.18 0.10 Dr. Lal PathLabs Private Limited No 1 April 2013 Subsequently the Company was converted into a public company and the Registrar of Companies NCT of Delhi
Room No 7 & 8 48B B.T. Road Baranagar Parganas (north) Kolkatta 0.10 0.05 Dr. Lal PathLabs Private Limited No 1 April 2013 & Haryana issued a fresh certificate of incorporation w.e.f 19 August 2015.
Room No 11 & 13 48B B.T. Road Baranagar Parganas (north) Kolkatta 0.07 0.04 Dr. Lal PathLabs Private Limited No 1 April 2013

In respect of immovable properties that have been taken on lease (wherethe Company is the lessee) and disclosed in the standalone financial statements asright-of use asset as at the balance sheet date the lease agreements are duly executed infavour of the Company except for the following:

Description of property

As at the balance sheet date

Held in the name of Whether promoter director or their relative or employee Period held* Reason for not being held in name of Company*
( Gross carrying value Million) Rs Carrying value in the financial statements (Rs Million)
Leasehold building situated at Sector 18 Block E Rohini Delhi.

130.27

70.28

Held in the name of Dr. Lal PathLabs Private Limited

No

8 April 2005

The lease deed was signed on 8 April 2005 in the name of Dr. Lal PathLabs Private Limited. Subsequently the Company was converted into a public company and the Registrar of Companies NCT of Delhi & Haryana issued a fresh certificate of incorporation w.e.f August 19 2015.

(i) (d) The Company has not revalued any of its property plant andequipment (including right-of-use assets) and intangible assets during the year.

(i) (e) No proceedings have been initiated during the year or arepending against the Company as at 31 March 2022 for holding any benami property under theBenami Transactions (Prohibition) Act 1988 (as amended in 2016) and rules madethereunder.

(ii) (a) The inventories were physically verified during the year bythe Management at reasonable intervals. In our opinion and according to the informationand explanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories when compared with the books ofaccount.

(ii) (b) According to the information and explanations given to us theCompany has been sanctioned working capital limits in excess of Rs 5 crores in aggregateat points of time during the year from banks or financial institutions on the basis ofsecurity of fixed deposits. The Company has not created security for working capitalfacilities amounting to Rs 3060 million. In our opinion and according to the informationand explanations given to us the no returns or statements were required to be filed bythe Company with such banks till the date of this report.

(iii) The Company has made investments in companies and granted loansto other parties during the year in respect of which: (a) The Company has provided loansduring the year and details of which are given below:

(Rs Million)
Loans
A. Aggregate amount granted / provided during the year:
- Others 15.22
B. Balance outstanding as at balance sheet date in respect of above cases:
- Others 10.44

(b) The investments made and the terms and conditions of thegrant of all the above mentioned loans provided during the year are in our opinionprima facie not prejudicial to the Company's interest.

(c) In respect of loans granted by the Company the schedule ofrepayment of principal has been stipulated and the repayments of principal amounts areregular as per stipulation and no interest is charged based on stipulation in respectthereof.

(d) According to information and explanations given to us and based onthe audit procedures performed in respect of loans granted by the Company there is nooverdue amount remaining outstanding as at the balance sheet date.

(e) No loan granted by the Company which has fallen due duringthe year has been renewed or extended or fresh loans granted to settle the overdues ofexisting loans given to the same parties.

(f) According to information and explanations given to us and based onthe audit procedures performed the Company has not granted any loans either repayable ondemand or without specifying any terms or period of repayment during the year. Hencereporting under clause (iii)(f) is not applicable.

The Company has not made investments in firms Limited LiabilityPartnerships or any other parties and has not provided any guarantee or security andgranted any advances in the nature of loans secured or unsecured to companies firmsLimited Liability Partnerships or any other parties and has not granted any loans tocompanies firms and Limited Liability Partnerships during the year. (iv) The Company hascomplied with the provisions of Sections 185 and 186 of the Companies Act 2013 inrespect of loans granted investments made and guarantees and securities provided asapplicable. (v) The Company has not accepted any deposit or amounts which are deemed to bedeposits. Hence reporting under clause (v) of the Order is not applicable. (vi) Themaintenance of cost records has been specified by the Central Government under section148(1) of the Companies Act 2013 related to running of laboratories for carrying outpathological investigations. We have broadly reviewed the books of account maintained bythe Company pursuant to the Companies (Cost Records and Audit) Rules 2014 as amendedprescribed by the Central Government for maintenance of cost records under Section 148(1)of the Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained by the Company. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) In respect of statutory dues:

Undisputed statutory dues including Goods and Service tax ProvidentFund Employees' State Insurance Income-tax duty of Custom cess and other materialstatutory dues applicable to the Company have generally been regularly deposited by itwith the appropriate authorities though there has been a slight delay in a few cases inrespect of remittance of Provident Fund dues.

There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees' State Insurance Income-tax duty of Customcess and other material statutory dues in arrears as at 31 March 2022 for a period ofmore than six months from the date they became payable.

(vii) (b) There are no statutory dues in respect of Goods and Servicetax Provident Fund Employees' State Insurance Income-tax Sales Tax duty ofCustom duty of Excise Value Added Tax cess and other material statutory dues applicableto the Company which have not been deposited on account of disputes as on 31 March 2022.(viii) There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessments under the Income Tax Act 1961(43 of 1961) during the year.

(ix) (a) In our opinion the Company has not defaulted in the repaymentof loans or other borrowings or in the payment of interest thereon to any lender duringthe year.

(b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority. (c) To the best of ourknowledge and belief in our opinion term loans availed by the Company were applied bythe Company during the year for the purposes for which the loans were obtained. (d) On anoverall examination of the financial statements of the Company funds raised on short-termbasis have prima facie not been used during the year for long-term purposes by theCompany. (e) On an overall examination of the financial statements of the Company theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries.

(f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries.

(x) (a) The Company has not issued any of its securities (includingdebt instruments) during the year and hence reporting under clause (x)(a) of the Order isnot applicable.

(b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause (x)(b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.

(b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.

(c) As represented to us by the Management there were no whistleblower complaints received by the Company during the year (and upto the date of thisreport).

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

(xiii) In our opinion the Company is in compliance with Section 177and 188 of the Companies Act where applicable for all transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements etc. as required by the applicable accounting standards.

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.

(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with any of its directors or directors of it's holdingcompany subsidiary company associate company as applicable or persons connected withsuch directors and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clause (xvi)(a) (b) and(c) of the Order is not applicable.

The Group does not have any CIC as part of the group and accordinglyreporting under clause (xvi)(d) of the Order is not applicable.

(xvii)The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii)There has been no resignation of the statutory auditors of theCompany during the year. (xix) On the basis of the financial ratios ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the financial statements and our knowledge of the Board ofDirectors and Management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report indicating that Company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.

(xx) The Company has fully spent the required amount towards CorporateSocial Responsibility (CSR) and there are no unspent CSR amount for the year requiring atransfer to a Fund specified in Schedule VII to the Companies Act or special account incompliance with the provision of sub-section (6) of section 135 of the said Act.Accordingly reporting under clause (xx) of the Order is not applicable for the year.

____For Deloitte Haskins & Sells LLP
____Chartered Accountants
____(Firm's Registration No. 117366W/W-100018)
Jitendra Agarwal
Partner
Place: New Delhi (Membership No. 87104)
Date: 17 May 2022 (UDIN: 22087104AJCRVM2127)

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