Integrated Hitech Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of integrated Hitech Limited ("the Company") which comprise the Balance Sheet as at March 31st, 2025 and the statement of Profit and Loss and the cash flows Statement for the year then ended and notes to the financial statements including a summary of significant accounting policies. In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of their state of affairs of the Company as at March 31st, 2025, and loss and its cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies act 2013, Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by ICAI and we have fulfilled our other ethical responsibilities in accordance with the provisions of the Companies Act 2013. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters we addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters No such matters were identified during the course of our audit.
Emphasis of Matter Paragraph
1.Trade Receivables:Trade receivables amounting to ^52,79,284 have remained outstanding for a period exceeding
three years. The management has reported that the concerned parties are untraceable despite repeated follow-ups. Accordingly, the management has decided to write off the said receivables as per note no.9 as it's irrecoverable during the year.
2.Rent Receivable:
The management confirmed that rent receivable amounting to ^1,52,000 could not be recovered, as the party remains untraceable. Consequently, the management has resolved to adjust the outstanding rent receivable against the advance paid to the said party, and the remaining balance has been written off as note.24 during the year.
3.Impairment of computer and software Assets:
The computer and software assets were found to be non-functional and not in usable condition for over a year. Based on the evaluation conducted by the management, these assets have been scrapped, resulting in a recognized loss of ^1,48,75,758 during the year as per accounting policy no.3.
4.Investment in subsidiaries incorporated in USA and Singapore:
As per note no.8, the subsidiaries incorporated in the United States of America and Singapore have incurred continuous losses during the year under review, resulting in the diminution of the carrying value of the investments. The investment in the USA subsidiary has been valued at USD 100, and the investment in the Singapore subsidiary has been fully impaired to ^0. The corresponding loss has been recognized in the statement of profit and loss for the year.
5. Prior Period Item:
An amount of ^12,06,291.20 under commission charges has been incurred which is prior period item.
6. Write-off of Balances:
The management has written off the balances during the year due to the inability to trace the counterparties referred in:
• Loan from others: ^37,68,434
• Other Payable: ^16,00,000
• Advance to Suppliers: ^53,43,390
Upon necessary due diligence and verification procedures, management concluded that these amounts were irrecoverable and accordingly, they have been written off in the books of account.
Our opinion is not Qualified based on the above points mentioned.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's Board of Directors is responsible for the preparation and presentation of these financial statements in term of the requirements of the Companies Act 2013 that give a true and fair view of the financial position, financial performance 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. The respective Board of Directors of the companies are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error which have been used for the purpose of preparation of the financial statements by the Directors of the Company as aforesaid.
In preparing the financial statements the respective Board of Directors of the companies are responsible for assessing the ability of the Company to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Company is responsible for overseeing the financial reporting process of the Company.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 financial statements.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act we report to the extent applicable 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 financial statements.
(b) In our opinion proper books of account as required by law relating to preparation of the aforesaid financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the financial statements.
(d) in our opinion the aforesaid 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 of the Company as on 31st March 2025 taken on record by the Board of Directors of the Company none of the directors of the companies are disqualified as on 31st March 2025 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of internal financial controls over financial reporting of the Group and the operating effectiveness of such controls refer to our separate report in Annexure
(g) with respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:
i) There were no pending litigations which would Impact the financial position.
ii) The Company did not have any material foreseeable losses on long term contracts including derivative contracts.
iii) There were no amounts required to be transferred to the Investor Education and Protection Fund by The Company.
For A John Moris& Co., Chartered Accountants, FRN:007220 S Sd/-
CA S Muralikannan
Date: 28-04-2025 M.No.: 211698
Place: Chennai UDIN: 25211698BMICYI4502
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