We have audited the standalone financial statements of SOUTHERN INFOSYS LIMTED ("the
Company"), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and
Loss, 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 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,
except for the possible effects of the matters described in the Basis for Qualified Opinion
paragraph and Emphasis of Matter paragraph, 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 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 March 31, 2024 and its profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
The company is required to make provision for Gratuity in respect of its employees as required
under Payment of Gratuity Act, 1972 by following accrual basis and conducting the valuation
by following independent actuarial valuations as at the balance sheet date by using the project
unit cost method as mandated by Indian Accounting Standard-19 (Ind AS 19) on Employee
Benefits prescribed in the Companies (Indian Accounting Standards) Rules 2015, as amended.
The company has not made any provision for Gratuity and the said non-provision is
contravention of Ind AS 19. We are unable to ascertain the financial implication of the same. The
net profit for the year and cumulative net profits are overstated and provisions are understated
to that extent.
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 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 Companies Act, 2013 and the Rules 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.
Emphasis of Matter
We draw your attention to the responsibility of the Company to arrange balance confirmations
in respect of trade receivables, trade payables, inter-corporate deposits provided and other loans
and advances. The letters of confirmation have been sent by the management to said parties to
confirm their balances as on 31st March, 2024. Balance confirmations have not been received
from the parties up to the date of signing of financial statements. The balances of such parties
have been incorporated in the standalone financial statements at the value as per the books of
account. As explained to us, the company, to the extent stated, has considered them as good and
no balances are required to be written off/ written back against receivables/payables, except
those already provided for in the books of accounts. Accordingly, all the said account balances
are subject to confirmation and reconciliation. To that extent, we are unable to ascertain
financial implication of same in the standalone financial statements. Our opinion is not modified
in respect of this matter (Refer Note 31).
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 that there are no key 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 preparation of the other information.
The other information comprises Board's Report including Annexure to Board's Report, but
does not include the standalone financial statements and our auditor's report thereon.
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 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.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
Management's Responsibilities for the Standalone financial statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 ("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 Board of Directors is 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.
Those Board of Directors are 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.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify 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 financial controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act,
we are also responsible for expressing our opinion on whether the Company has adequate
internal financial controls system 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 auditor's 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.
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
Companies Act, 2013, we give in the Annexure A, a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(2) As required by section 143 (3) of the Act, based on our audit we report that:
a. Except for the possible effects of the matters described in the Basis for Qualified
Opinion paragraph and Emphasis of Matter Paragraph, we have sought and
obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit;
b. Except for the possible effects of the matters described in the Basis for Qualified
Opinion paragraph and Emphasis of Matter Paragraph along with the matter
stated in paragraph 2(h)(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014, in our opinion, proper books of
account as required by law have been kept by the Company so far as appears
from our examination of those books;
c. Except for the possible effects of the matters described in the Basis for Qualified
Opinion paragraph and Emphasis of Matter Paragraph, the Balance Sheet, th e
Statement of Profit and Loss including Other Comprehensive Income, Statement
of Changes in Equity and th e Cash Flow Statement dealt with by this Report
are in agreement with the books of account;
d. Except for the possible effects of the matters described in the Basis for Qualified
Opinion paragraph and Emphasis of Matter Paragraph, in our opinion, the
aforesaid standalone financial statements comply with the Indian Accounting
Standards prescribed under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rule 2015, as amended.
e. On the basis of written representations received from the directors as on
March 31, 2024, and taken on record by the Board of Directors, none of the
directors are disqualified as on March 31, 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 over financial
reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditor's Report in
accordance with the requirements of section 197(16) of the Act, as amended.
In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its director
during the year is in accordance with the provisions of section 197 of the Act read
with Schedule V to the Act.
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 in its
financial statements ( refer note 33).
ii. The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge
and belief, no funds (which are material either individually or in the
aggregate) 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 or entity, 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, no funds (which are material either individually or in the
aggregate) have been received by the Company from any person or entity,
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 the audit procedures 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), as provided under (a) and (b) above, contain any
material misstatement.
v. The company has neither declared nor paid any dividend during the year
ending March 31, 2024. Also, no dividend has been proposed by the
Board for the year ending March 31, 2024. Accordingly, reporting under
Rule 11(f) is not applicable.
vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014 is applicable from 1 April 2023.
Based on our examination which included test checks, the Company has
used accounting software for maintaining its books of account, which
have a feature of recording audit trail (edit log) facility. The audit trail
facility has been in operation from 15th April 2023 and the same has
operated throughout the remaining year for all relevant transactions
recorded in the software.
Further, we did not come across any instance of the audit trail feature
being tampered with.
For V Sahai Tripathi & Co.
Chartered Accountants
FRN -000262N
Vishwas Tripathi
Partner
Membership No. 086897
Place: New Delhi
Date: 29th May, 2024
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