We have audited the accompanying Standalone
Financial Statements of Medi Assist Healthcare
Services Limited ("the Company"), which comprise
the Standalone Balance Sheet as at March 31, 2025,
and the Standalone Statement of Profit and Loss,
including Other Comprehensive Income, Standalone
Statement of Changes in Equity and Standalone
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, 2025, and its profit and
other comprehensive loss, 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 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 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 obtained by us is sufficient and
appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note 53 to the accompanying
Statement which describes that search and seizure
operation was carried out by the Directorate of
Enforcement at certain offices of a wholly owned
subsidiary and the management's assessment thereof
about the consequent impact on the Standalone
Financial Statements.
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 for the year ended March 31, 2025. 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:
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Sr.
No.
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Key Audit Matters
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How the Key Audit Matters was addressed in
our audit
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1.
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Assessment of the carrying value of intangible
assets (including intangible assets under
development)
(Refer to Note 3.h, Note 2.D to the Standalone
Financial Statements regarding the recognition,
amortisation of Intangible Asset, 'Impairment
Losses' and 'judgements, estimates and
assumptions' respectively).
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Our audit procedures with respect to this area
included, among others, following:
a. We obtained an understanding and assessed
the design, implementation and operating
effectiveness of relevant internal controls with
regard to the classification of development
expenditure and their capitalisation and
evaluation of impairment for internally
generated intangible assets.
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Sr. Key Audit Matters
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How the Key Audit Matters was addressed in
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No.
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our audit
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The Company incurs product development
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b.
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We evaluated management review controls
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costs and capitalises such expenditure to the
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over calculations of the future economic
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extent it qualifies for recognition as an Intangible
Asset (product development). Such expenditure
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benefit of the projects.
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includes internal manpower costs and outsourced
manpower costs specifically incurred on such
development projects. Up to the stage the products
are ready for it to be capable of operating in
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c.
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We observed management's validation of
relevant data elements and benchmarking the
assumptions.
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the manner intended by the management, the
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d.
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We observed management's assessment of
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Company records the qualifying expenditure as
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sensitivity of the impact of the changes in key
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'intangible assets under development'.
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assumptions.
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The Company has capitalised Rs 102.31 million of
intangibles in the nature of internally developed
software during the year and has an amount of
Rs 38.66 million under development as at March
31, 2025 for new technology developments. The
Company has also acquired Intangible assets
amounting to Rs 461.75 million during the year
ended March 31, 2025 for digitization of claims
processing.
Intangible assets under development are tested for
impairment on an annual basis. The Company tests
other intangible assets for impairment whenever
events or changes in circumstances indicate that
the carrying amount may not be recoverable.
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e.
f.
g.
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We discussed with senior management and
challenged management assumptions.
We tested the capitalisation of project related
expenses incurred during the year with
underlying documents relating to material
costs, directly attributable overheads,
designing cost, software expenses, testing
charges and related salary cost incurred
to verify existence and appropriateness of
classification of research and development.
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We performed sensitivity tests on the model
by analysing the impact of using other possible
growth rates and discount rates within a
reasonable and foreseeable range.
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The appropriateness of Intangible assets and
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Intangible assets under development capitalised is
a key audit matter due to the judgement involved
in assessing if the cost meets the capitalisation
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h.
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We inspected the technical team's approvals
for initiation of capitalisation.
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criteria, dependency of the business on the
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i.
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We reviewed the central cost allocation for
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assets capitalised / under capitalisation and key
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the year and determined costs capitalised
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assumptions used in the measurement model for
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are directly attributable including the interest
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impairment. The measurement model used for
review of impairment of these Intangible assets
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capitalised.
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depends largely on management's assessment with
regard to the appropriateness of estimated future
cash flows, and the discount rates used. Hence,
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j.
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We evaluated the adequacy of the disclosures
made in the Standalone Financial Statements.
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there are significant estimates and judgements
involved in determining the above.
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Based on the above procedures performed,
we did not identify any significant exceptions
in the management's assessment in relation
to the capitalisation of intangible assets and
intangible assets under development.
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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 Management report,
Chairman's statement, Director's report but does
not include the Standalone Financial Statements
and our auditor's report thereon. The Management
report, Chairman's statement, Director's report etc is
expected to be made available to us after the date of
this auditor's report.
Our opinion on the Standalone Financial Statements
does not cover the other information and we will 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 when it becomes
available 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 Management report, Chairman's
statement, Director's report etc, if we conclude
that there is a material misstatement therein, we
are required to communicate the matter to those
charged with governance under SA 720 'The Auditor's
responsibilities Relating to Other Information'.
Responsibilities of Management and
Board of Directors 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,
changes in equity 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 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, the
Management and Board of Directors 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 (11)
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.
Z. 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 except for
the matters stated in the paragraph 2(h)
(vi) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors)
Rule, 2014.
(c) The Standalone Balance Sheet, the
Standalone Statement of Profit and Loss
including Other Comprehensive Income,
the Standalone Statement of Changes in
Equity and the Standalone Statement of
Cash Flows 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
Accounting Standards specified under
Section 133 of the Act.
(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 are
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 with reference
to Standalone Financial Statements of the
Company and the operating effectiveness
of such controls, refer to our separate
Report in "Annexure C".
(g) 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) of the Companies (Audit
and Auditors) Rules, 2014.
(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:
audit trail feature was not enabled at the
application level and database level from
April 01, 2024 to September 26, 2024 in
respect of an accounting software to log
any direct data changes as explained in
Note 46(xii) to the Standalone Financial
Statements.
Further, where enabled, audit trail feature
has 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
The Company has disclosed the impact of pending
litigations on its financial position in its Standalone
Financial Statements - Refer Note 28 to the Standalone
Financial Statements:
i. The Company has long-term contracts including
derivative contracts for which there were no
material foreseeable losses.
ii. There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company.
iii. 1. The Management has represented that,
to the best of its 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.
2. The Management has represented, that,
to the best of its 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, as on the date of
this audit report, 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.
3. Based on the audit procedures performed
that have been considered reasonable
and appropriate in the circumstances,
and according to the information and
explanations provided to us by the
Management in this regard 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) as
provided under (1) and (2) above, contain
any material mis-statement.
iv. 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 Company has not declared any dividend
during the year.
v. Based on our examination, except for the
instances mentioned below, the Company has
used accounting softwares for maintaining its
books of account during the year ended March
31, 2025 which has a feature of recording
audit trail (edit log) facility and the same has
been enabled and operated throughout the
year for all relevant transactions recorded in
the accounting softwares, and further, we did
not come across any instance of the 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 to the extent it was enabled
and recorded in prior year.
Based on our examination which included
test checks:
1. The Company has used an accounting
software for maintaining its books of
account which has a feature of recording
audit trail (edit log) facility, except that
no audit trail feature was enabled at the
database level in respect of an accounting
software to log any direct data changes as
explained in Note 46(xii) 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 year.
2. The Company has used an accounting
software for maintaining its books of
account which pertains to processing its
payroll records and transactions during
the year ended March 31,2025 (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 the relevant transactions
recorded in the software. Further, during
the course of our audit and considering
independent service auditor's report
on service organisation controls ("SOC
report"), 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.
3. The Company has used an accounting
software for maintaining its books of
account which pertains to revenue
computation has a feature of recording
audit trail (edit log) facility, except that
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 year.
3. In our opinion, according to information,
explanations given to us, the remuneration paid
by the Company to its directors is within the
limits laid prescribed under Section 197 read with
Schedule V of the Act and the rules thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Pankaj S Bhauwala
Partner
Membership No. 233552
UDIN: 25233552BMJHPP2361
Place: Bengaluru
Date: May 15, 2025
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