We have audited the accompanying standalone
financial statements of Krsnaa Diagnostics 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
Statement of Changes in Equity and the Statement of
Cash Flows for the year then ended, and notes to the
standalone financial statements, including material
accounting policy information 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
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 (including
other comprehensive income), changes in equity and
its cash flows 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 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 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 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.

Emphasis of Matter

We draw attention to Note No. 50 of the audited
Standalone financial statements regarding the additions
made by the Income Tax Authorities, on account of
Undisclosed income and disallowance of certain
deductions claimed by the company, consequent to an
assessment order passed and a demand notice issued
on the Company for the assessment year (“AY”) 2017-18
to AY 2023-24 under search assessment proceedings
conducted under section 132(1) and section 133A of the
Income Tax Act, 1961.

The Company has filed appeals with the Joint
Commissioner (Appeals) or Commissioner of
Income- Tax (Appeals) against the said Orders and
has deposited tax under protest amounting to INR
102.77 million.

Further as explained in the note, the management
believes that considering the on-going assessment
proceedings and the appeals filed by the Company, the
impact, if any including income tax, interest and other
charges, on the previous period financial statements
and the current year audited standalone financial
statements for the year ended March 31, 2026, is not
expected to be material.

Our opinion is not modified in respect of this matter.

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.

Information Other than the Standalone
Financial Statements and Auditor’s Report
Thereon

The Company’s Board of Directors is responsible
for the other information. The other information
comprises the information included in the Chairman’s
statement, Director’s report, Business Responsibility
and Sustainability Reporting, but does not include the
standalone financial statements and our auditor’s
report thereon, which we obtained prior to the date of
this auditor’s report, and the Chairman’s statement,
Director’s report, Business Responsibility and
Sustainability Reporting, which is expected to be made
available to us after that date.

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 identified above and, in doing so, consider
whether the other information is materially inconsistent
with the standalone financial statements or our
knowledge obtained in the audit, or otherwise appears
to be materially misstated.

When we read the Chairman’s statement, Director’s
report, Business Responsibility and Sustainability
Reporting, if we conclude that there is a material
misstatement therein, we are required to communicate
the matter to those charged with governance.

Responsibilities of Management and Board
of Directors 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,
changes in equity and cash flows of the Company in
accordance with the accounting principles generally
accepted in India, including the Indian 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 standalone
financial statement 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, the
Board of Directors of the Company 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 the Board of Directors 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
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.

We give in “Annexure A” a detailed description of
Auditor’s responsibilities for Audit of the Standalone
Financial Statements.

Report on Other Legal and Regulatory
Requirements

1. As required by the Companies (Auditor’s Report)
Order, 2020 (“the Order”), issued by the Central
Government of India in terms of sub-section (ll)
of section 143 of the Act, we give in “Annexure B” a
statement on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable.

2. 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 of the
aforesaid standalone financial statements.

(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 the
matters stated in the paragraph 2(h)(vi)
below on reporting under Rule 11(g).

Further, in the absence of sufficient
appropriate audit evidence in the form of
independent service auditor's report of the
service organisation in relation to software

used by the Company for maintaining its
books of accounts for payroll processing
we are unable to comment whether back¬
up of the books of account and other
books and papers maintained in electronic
mode, have been kept in servers physically
located in India on a daily basis in relation to
payroll processing.

(c) The Balance Sheet, the Statement of Profit
and Loss (including other comprehensive
income), the Statement of Changes in Equity
and the Statement of Cash Flows dealt
with by this Report are in agreement with
the books of account maintained for the
purpose of preparation of the standalone
financial statements.

(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 are disqualified as on
March 31, 2026 from being appointed as a
director in terms of Section 164 (2) of the Act.

(f) The reservation relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 2(b)
above on reporting under Section 143(3)(b)
and paragraph 2(h)(vi) below on reporting
under Rule 11(g).

(g) With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer
to our separate Report in “Annexure C”.

(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. The Company has disclosed the impact
of pending litigations on its financial
position in its standalone financial
statements - Refer Note 50 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 are no amounts which are required
to be transferred to the Investor Education
and Protection Fund by the Company
during the year ended March 31, 2026.

iv. a. The Management has represented

that, to the best of it’s knowledge and
belief, 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, 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 it’s knowledge
and belief, 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, 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
performed 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) contain any
material mis-statement.

v The final dividend paid by the Company
during the year in respect of the same
declared for the previous year is in
accordance with section 123 of the
Companies Act 2013 to the extent it
applies to payment of dividend.

The Board of Directors of the Company
have proposed final dividend for the year
which is subject to the approval of the
members at the ensuing Annual General
Meeting. The dividend declared is in
accordance with section 123 of the Act
to the extent it applies to declaration of
dividend. (Refer Note 61 to the Standalone
financial statements)

vi a. Based on our examination, which
included test checks, the Company
has used an 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. Additionally, the audit trail of
prior year has been preserved by
the Company as per the statutory
requirements for record retention.

b. Based on our examination which
included test checks, the Company
has used an accounting software
for maintaining revenue, purchases
& inventory records, which has a
feature of recording audit trail (edit
log) facility, except that no audit trail
feature was enabled at the database
level to log any direct data changes
as explained in Note 64 to the
standalone financial statements.

Further, where enabled, audit trail
feature has been operated for all
relevant transactions recorded
in the accounting software. Also,
during the course of our audit, we
did not come across any instance of
audit trail feature being tampered
with in respect of such accounting
software. Additionally, the audit trail
of prior year has been preserved by
the Company as per the statutory
requirements for record retention
to the extent it was enabled and
recorded in prior years.

c. Based on examination which
included test checks, the Company
has used accounting software for
maintaining its payroll records,
which is managed and maintained

by a third-party software service
provider which has a feature of
recording audit trail (edit log)
facility and the same has been
operated throughout the year for
all relevant transactions recorded
in the software except that we are
unable to comment on audit trail
at database level due to absence
adequate coverage in SOC report,
as explained in Note 64 to the
standalone financial statements.

Further, except for above, audit trail
feature has operated throughout
the year for all relevant transactions
recorded in the accounting
software. Also, during the course of
our audit, we did not come across
any instance of audit trail feature
being tampered with except for
above. Additionally, the audit trail
of prior year has been preserved by

the Company as per the statutory
requirements for record retention
to the extent it was enabled and
recorded in prior years.

3. In our opinion, according to information,
explanations given to us , the remuneration paid
or provided by the Company to its directors is
within the limits laid prescribed under Section 197
read with Schedule V of the Act.

For M S K A & Associates LLP
(Formerly known as M S K A & Associates)

Chartered Accountants
ICAI Firm Registration No. 105047W/W101187

Yogesh Yewale

Partner

Place: Pune Membership No.: 158877

Date: May 25, 2026 UDIN: 26158877VPQUKM8095