To,
The Board of Directors,
Shanmuga Hospital Limited,
(Formerly known as Shanmuga Hospital Private Limited)
Plot No.5171, 9th Street, Ram Nagar North Extension,
Madipakkam, Kanchipuram, Saidapet,
Tamil Nadu, India, 600091.
Dear Sirs,
1. We, M/s. P P N And Company, Chartered Accountants (we or us) have examined the attached Restated Financial Information of Shanmuga Hospital Limited (Formerly known as Shanmuga Hospital Private Limited) (the Company or the Issuer), comprising the Restated Statement of Assets and Liabilities as at March 31, 2024, 2023 and 2022, the Restated Statements of Profit and Loss and the Restated Cash Flow Statement for the year ended March 31, 2024, 2023 and 2022, the Summary Statement of Significant Accounting Policies, and other explanatory information (collectively referred to as the Restated Financial Information), as approved by the Board of Directors of the Company at their meeting held on 10/09/2024 for the purpose of inclusion in the Draft Prospectus / Prospectus prepared by the Company in connection with its proposed Initial Public Offer of equity shares on SME Platform of Exchange (SME IPO).
These restated Summary Statement have been prepared in terms of the requirements of:
a. Section 26 of Part I of Chapter III of the Companies Act, 2013 (the Act")
b. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations"); and
c. The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI), as amended from time to time (the Guidance Note).
2. The Companys Board of Directors is responsible for the preparation of the Restated Financial Information for the purpose of inclusion in the Draft Prospectus / Prospectus to be filed with Securities and Exchange Board of India, Registrar of Companies, Chennai and the Stock Exchange in connection with the proposed SME IPO. The Restated Financial Information has been prepared by the management of the Company on the basis of preparation stated in Annexure IV to the Restated Financial Information. The responsibilities of the Board of Directors of the Company include designing, implementing, and maintaining adequate internal control relevant to the preparation and presentation of the Restated Financial Information. The Board of Directors is also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.
3. We have examined such Restated Financial Information taking into consideration:
a. The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated June 21, 2024 in connection with the proposed IPO of equity shares of the Issuer on SME platform;
b. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI);
c. Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Financial Information; and
d. The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO.
4. These Restated Financial Information have been compiled by the management from the Audited Financial Statements of the Company for the years ended on March 31, 2024, 2023 and 2022, prepared in accordance with the Accounting Standards as prescribed under Section 133 of the Act read with Companies (Accounting Standards) Rules as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors.
5. For the purpose of our examination, we have relied on:
a. Auditors Report issued by us dated 01/09/2024 and the Financial Statements of the Company for the period from 01/04/2023 to 31/03/2024, and
b. Auditors Report issued by us dated 01/09/2023 for the year ended March 31,2023 and Auditors Report issued by Previous Auditor dated 31/08/2022 on the financial statements of the Company as at and for the years ended 2022 respectively as referred in Paragraph 4 above.
The Audit for the financial years ended March 31, 2024 and 2023 were conducted by us only and the Audit for the financial years ended March 31, 2022 were conducted by the Companys previous auditors J.V & Co, Chartered Accountants (the Previous Auditor). We have performed adequate procedures to restate the Financial Information for the said years. The Examination Report included for the said years is based solely on the report submitted by the Previous Auditor.
6. There were no qualifications in the Audit Reports issued by us and by previous auditor as at and for the year ended March 31, 2024, 2023 and 2022 which would require adjustments in this Restated Financial Information of the Company.
7. Based on our examination and according to the information and explanations given to us, we report that:
a. The Restated Summary Statements have been made after incorporating adjustments for the changes in accounting policies retrospectively in respective financial years to reflect the same accounting treatment as per the changed accounting policy for all reporting periods, if any;
b. The Restated Summary Statements do not require any adjustments for the matter(s) giving rise to modifications mentioned in paragraph 6 above.
c. The Restated Summary Statements have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
d. The Restated Summary Statements have been made after incorporating adjustments for prior period and other material amounts in the respective financial years to which they relate, if any and there are no qualifications which require adjustments;
e. Extra-ordinary items that need to be disclosed separately in the accounts has been disclosed wherever required;
f. There was no change in accounting policies, which need to be adjusted in the Restated Summary Statement. The details of Prior period Adjustments are given in Annexure 5 of the Restated Financial Statements.
g. From Financial Years 2021-22, 2022-23 and 2023-2024, i.e., the year covered in the restatement, the Company has not declared and paid any dividend.
8. We have also examined the following other financial information relating to the Company prepared by the Management and as approved by the Board of Directors of the Company and annexed to this report relating to the Company as at and for the year ended on March 31, 2024 2023 and 2022 proposed to be included in the Draft Prospectus / Prospectus.
Annexure No. Particulars
I Standalone Financial Statement of Assets & Liabilities as Restated
II Standalone Financial Statement of Profit & Loss as Restated
III Standalone Financial Statement of Cash Flow as Restated
IV Significant Accounting Policy and Notes to the Restated Summary Statements
V Adjustments made in Restated Financial Statements / Regrouping Notes
1.1 Statement of Share Capital as Restated
1.2 Statement of Reserves & Surplus as Restated
1.3 Statement of Long-Term Borrowings as Restated
1.4 Statement of Deferred Tax Liability (Net)
1.5 Statement of Long -Term Provisions as Restated
1.6 Statement of Short - Term Borrowings as Restated
1.7 Statement of Trade Payables as Restated
1.8 Statement of Other Current Liabilities as Restated
1.9 Statement of Short - Term Provisions as Restated
1.10 Statement of Fixed Assets as Restated
1.11 Statement of Other Non-Current Investments as Restated
1.12 Statement of Other Non-Current Assets as Restated
1.13 Statement of Inventories as Restated
1.14 Statement of Trade Receivables as Restated
1.15 Statement of Cash & Cash Equivalent as Restated
1.16 Statement of Short Term Loans and Advances as Restated
1.17 Statement of Other Current Assets as Restated
II. 1 Statement of Revenue from Operations as Restated
11.2 Statement of Revenue from Other Income as Restated
11.3 Statement of Purchase of Medicines & Consumable as Restated
11.4 Statement of Changes in Inventories of Finished goods
11.5 Statement of Employees Benefit Expenses as Restated
11.6 Statement of Finance Cost as Restated
11.7 Statement of Depreciation and Amortization Expenses as Restated
11.8 Statement of Other Expenses as Restated
11.9 Statement of Tax Expenses as Restated
VI Statement of Accounting and other Ratio as Restated
VII Statement of Capitalisation Statement as Restated
VIII Statement of Tax Shelter as Restated
IX Statement of Related Parties & Transactions as Restated
9. We, M/s. P P N And Company, Chartered Accountants have been subjected to the peer review process of the Institute of Chartered Accountants of India (ICAI) and hold a valid peer review certificate issued by the Peer Review Board of the ICAI, which is valid till 30/09/2025.
10. The Restated Financial Information does not reflect the effects of events that occurred subsequent to the respective dates of the reports on the Audited Financial Statements mentioned in paragraph 5 above.
11. This report should not in any way be construed as a reissuance or re-dating of any of the previous audit reports issued by us, nor should this report be construed as a new opinion on any of the financial statements referred to herein.
12. We have no responsibility to update our report for events and circumstances occurring after the date of the report.
13. Our report is intended solely for use of the Board of Directors for inclusion in the Draft Prospectus / Prospectus to be filed with Securities and Exchange Board of India, the stock exchanges and Registrar of Companies, Chennai in connection with the proposed IPO. Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.
For P P N And Company,
Chartered Accountants,
ICAI Firm Reg. No.: 013623S Peer Review Certificate No: 013578
Sd/-
R. Rajaram Partner
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