1. We have audited the accompanying standalone financial statements of Aurionpro Solutions Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2024, 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 a summary of material accounting policies and other explanatory notes for the year ended on that date (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 notified 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 31st March, 2024, its profit and the total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
2. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SA's) 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 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
3. Key Audit Matters ('KAM') are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current audit 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 KAM to be communicated in our report.
We have fulfilled the responsibilities described in the 'Auditors' Responsibilities for the Audit of the Standalone Financial Statements' section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.
|
Key Audit Matter
|
Auditors' Response
|
|
(1) Revenue from Fixed Price Contracts:
Revenue from fixed price contracts, where the performance
|
We have obtained understanding of the systems and processes
|
|
obligations are satisfied over time, has been recognized using
|
implemented by the Company and tested the effectiveness of
|
|
the percentage of completion method and computed as per the
|
controls relating to recording and computing revenue and associated
|
|
input method based on the Company's estimate of contract
|
contract assets, unearned and deferred revenue balances.
|
|
costs.
|
Our audit approach consisted testing of the design and operating
|
|
Efforts or costs expended have been used to measure progress
|
effectiveness of the internal controls and substantive testing as
|
|
towards completion as there is a direct relationship between
|
under:
|
|
input and productivity.
|
• Selected random samples of continuing and new contracts,
|
|
The application of Ind AS 115 "Revenue from Contracts
|
and tested the operating effectiveness of the internal control,
|
|
with Customers" involves Key judgements relating to
|
relating to identification of the distinct performance obligations
|
|
(1) identification of distinct performance obligations (2)
|
and determination of transaction price. We performed
|
|
determination of transaction price of the said identified
|
procedures involving enquiry and observation, verification of
|
|
performance obligations (3) allocation of transaction price to
|
evidence in respect of operation of these controls.
|
|
the said performance obligations (4) basis for recognition of revenue over a period.
Refer Note 27.1 to the Standalone Financial Statements.
|
|
|
Key Audit Matter
|
Auditors' Response
|
| |
|
• Assessed the IT environment in which the business systems operate and related information used in recording and disclosing revenue in accordance with the said Ind AS.
• Selected a sample of continuing and new contracts and performed certain procedures.
Based on the above procedures performed, we did not identify any significant exceptions in the process implemented by the Company for recording and computing revenue.
|
|
(2)
|
Net realisable value (NRV) of Inventory
|
In view of the significance of the matter we applied the following
|
| |
The Company deals in information technology products, which
|
audit procedures in this area, among others, to obtain sufficient audit
|
| |
includes hardware, software and assembling of machines
|
evidence:
|
| |
which may be subject to changing customer demands and
|
Assessed the appropriateness of the accounting policy for inventories
|
| |
technology evolution over the time.
|
as per relevant Indian Accounting Standards.
|
| |
Company uses IT technology / products primarily in
|
• Evaluated the design and implementation of key internal
|
| |
assembling / resale of the above products. Significant degree
|
financial controls with respect to determination of NRV and
|
| |
of judgment is thereby required to assess the NRV of the
|
tested the operating effectiveness of such controls on selected
|
| |
inventories and appropriate write down of items.
|
transactions.
|
| |
Such judgment includes Company's expectations for future
|
• Verified inventory ageing report by testing samples, selected
|
| |
sale, inventory liquidation plans and future selling prices less
|
using random sampling method.
|
| |
cost to sell & modification cost.
|
• Tested the weighted average rate computation of inventory
|
| |
In view of the above, assessment of NRV and its consequential
|
samples, selected using random sampling method.
|
| |
impact, if any on the carrying value of software & hardware
|
• Evaluated the judgement and assumptions taken for valuation
|
| |
including assemble machines has been identified as a key
|
of inventory.
|
| |
audit matter.
|
Based on the above procedures performed, we did not identify any
|
| |
Refer Note 9 to the Standalone Financial Statements.
|
significant exceptions in the process implemented by the Company for determination of NRV of the inventories.
|
|
(3)
|
Investment impairment assessment
|
|
| |
The Company has investments in subsidiaries and associates.
|
Evaluation of impairment risk and assessing whether triggers exist
|
| |
These investments are accounted for at cost less impairment.
|
for any investment based on consideration of external and internal
|
| |
If an impairment exists, the recoverable amounts of the above
|
factors affecting the value and performance of the investment.
|
| |
investment are estimated in order to determine the extent of the impairment loss, if any.
|
Our audit procedures included:
• Obtained an understanding from the management, assessed
|
| |
Determination of triggers for impairment in value of these
|
and tested the design and operating effectiveness of the
|
| |
investments and recoverable amount involves significant estimates and judgements.
|
Company's key controls over the impairment assessment.
• Obtained management assessment of recoverable amount for
|
| |
Refer Note 5 to the Standalone Financial Statements.
|
investments where impairment risk is identified.
• Evaluated the mathematical accuracy of the cash flow projection and assessed the underlying key assumptions in management's valuation models used to determine recoverable amount considering external data, including assumptions of projected EBITDA, revenue growth rate, terminal growth rates, discount rates, and assessed the sensitivity of the assumptions on the impairment assessment and assessed the forecasts against the historical performance.
• Assessed the appropriateness of the related disclosures in the standalone financial statements.
Based on the above procedures performed we did not identify any significant exceptions in the management's assessment in relation to the carrying value of unquoted instruments.
|
Information Other than the Standalone Financial Statements and
Auditor's Report Thereon
4. The Company's management and Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Director's Report including annexures to Director's Report, Corporate Governance Report and Shareholder's information, but does not include the standalone financial statements, consolidated financial statements and our auditors' reports thereon. The Annual Report is expected to be made available to us after the date of this auditors' report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
5. 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 during the course of our audit or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Management's Responsibilities for the Standalone Financial
Statements
6. 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, in terms of the requirements of the Act, that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows 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 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.
7. In preparing the standalone financial statements, 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 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
8. 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:
• I dentify 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system with reference to financial statements 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 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 auditors' 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 period and are therefore the key audit matters. We describe these matters in our auditors' 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.
Other Matter
9. The standalone financial statements include figures for the year ended 31.03.2023, which were audited by the then statutory auditors and had expressed unmodified opinion vide their audit report dated 16.05.2023.
Our opinion is not modified in respect of above matter.
Report on Other Legal and Regulatory Requirements
10. 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 the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
11. 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) I n 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 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 Ind AS notified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended;
e) On the basis of the written representations received from the directors as on 31st March, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024 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 B". Our report expresses an unmodified opinion on the existence of internal financial control with reference to financial statements and its operating effectiveness on the company.
g) I n our opinion and to the best of our information and according to the explanations given to us, the company has paid no remuneration to its directors during the year. Accordingly reporting under the provisions of section 197 of the Act not required.
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 the standalone financial statement as at 31st March, 2024. Refer note 35 to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts and hence there are no material foreseeable losses from these contracts.
iii. There has been no delay in transferring amounts, required to be transferred by the Company to the Investors Education and Protection Fund.
iv. a) The Management has represented that,
to the best of its knowledge and belief, as disclosed in note no. 49 (viii) to the standalone financial statements, no funds (which are material either individually or in aggregate), other than in normal course of business, 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 entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 its knowledge and belief, as disclosed in note no. 49 (ix) to the standalone financial statements, no funds (which are material either individually or in aggregate), have been received by the Company from any person(s) or entity(ies), including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 such audit procedures that were 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 (a) and (b) contain any material misstatement.
v. As stated in Note 17.2 to the standalone financial statements,
a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
b) 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 amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Based on our examination which included test checks, the Company, has implemented accounting software for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same was operational throughout the year for all relevant transactions recorded in the software. Further, during the course of audit we did not come across any instance of audit trail feature being tampered with. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from 1st April, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended 31st March, 2024.
For C K S P AND CO LLP Chartered Accountants Firm Reg. No. 131228W/W100044
Debmalya Maitra Partner
Place : Navi Mumbai M. No. 053897
Date : 14th May, 2024 UDIN: 24053897BKFTTZ1828
|