To
The Members of
DANLAW TECHNOLOGIES INDIA LIMITED
Report on the Audit of the IND AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of DANLAW TECHNOLOGIES
INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Cash Flows and the Statement of Changes in Equity for the year ended on that
date, and a summary of the significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS 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, 2023, the profit and total
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 Ind AS financial statements 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 Auditors
Responsibilities for the Audit of the Ind AS 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 Ind AS 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 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 Ind AS financial statements.
Information other than the Financial Statements and the Auditors Report thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual report, but does not include
the Ind AS financial statements and our auditors report thereon.
Our opinion on the Ind AS 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 Ind AS financial statements, our responsibility is
to read the other information identified above when it becomes available and, in doing so,
consider whether such other information is materially inconsistent with the financial
statements or our knowledge obtained in the 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.
Managements Responsibility for the Ind AS Financial Statements
The Companys 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 Ind AS financial statements that give a true and fair view of the state of affairs
(financial position), profit or loss (financial performance including other comprehensive
income), cash flows and changes in equity of the Company in accordance with the 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
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 Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, Management and Board of Directors are
responsible for assessing the Companys 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 are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors 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 Ind AS 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 Ind AS 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 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 and Board of Directors.
Conclude on the appropriateness of Management and Board of Directors 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
Companys 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 Ind AS 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 auditors 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 Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
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 Ind AS financial statements for
the financial year ended March 31, 2023 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure A" 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 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) 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.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards prescribed under section 133 of the Act, read with Companies (Indian
accounting standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2022 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" to this report.
g) With respect to the other matters to be included in the Auditors 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 directors during the year is in
accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors 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 does not have any pending litigations which would impact its financial
position.
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 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,
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 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, 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; and
c) Based on such 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 (a) and (b) contain any material
misstatement.
v. No dividend has been declared or paid during the year by the Company
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
for CSVR & ASSOCIATES CHARTERED ACCOUNTANTS
Firm Regn. No. 012121S
Place: Hyderabad
Date : 27.05.2023
(CA.VENKATESH.G.)
PARTNER
Membership No.239608
UDIN:23239608BGRMPA4447
ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements, of
our report of even date)
In terms of the information and explanations sought by us and given by the company and
the books of account and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state that:
(i) (a) (A) The company has maintained proper records showing full particulars
including quantitative details and situation of property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of intangible
assets.
(b) The fixed assets of the company have been physically verified by the management
during the year as per a programme of verification, which in our opinion is reasonable
having regard to the size of the company and the nature of its fixed assets. According to
the information and explanation given to us, no material discrepancies were noticed on
such verification.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, no immovable property is held by the Company
except building which is constructed on leased land and lease agreements are duly executed
in favour of the company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalued its property,
plant and equipment (including Right-of-use assets) or Intangible assets or both during
the year ended March 31,2023.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not holding any benami property
and accordingly there are no proceedings initiated or pending against the Company for
holding any benami property under the Prohibition of Benami Property Transactions Act,
1988 and rules made thereunder.
(ii) (a) Physical verification of inventory has been conducted at reasonable intervals
by the management during the year. In our opinion the coverage and the procedure of such
verification by the management is appropriate. No discrepancies were noticed on
verification between the physical stocks and the book records that were 10% or more in the
aggregate for each class of inventory.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has been sanctioned working capital
limits in excess of five crore rupees, in aggregate, from banks on the basis of security
of current assets. In our opinion, the quarterly returns or statements filed by the
Company with such banks are in agreement with the books of account of the Company and we
have not found any material deviation.
(iii) According to the information and explanations given to us and on the basis of our
examination of the records of the company, the company has not made any investments,
provided guarantee or security or granted any loans or advances in the nature of loans,
secured or unsecured to companies, firms, Limited Liability Partnerships (LLP) or any
other parties during the year. Accordingly, reporting under Clause 3(iii)(a) is not
applicable to this company.
(iv) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not given any loans or
guarantees / made any investments within the meaning of sections 185 and 186 of the
Companies Act, 2013. Accordingly, clause 3(iv) of the Order is not applicable.
(v) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company has neither accepted any deposits
from the public nor accepted any amounts which are deemed to be deposits with in the
meaning of sections 73 to 76 or any other relevant provisions of the Companies Act and the
rules framed there. Accordingly, the requirement to report on clause 3(v) of the order is
not applicable to the company.
(vi) The Maintenance of cost records has been specified by the Central Government under
sub section (1) of section 148 of the Companies Act. We have broadly reviewed the records
maintained by the Company during the year and are of the opinion that prima facie, the
cost records prescribed by the Central Government have been maintained. However, we have
not made a detailed examination of the same.
(vii) (a) The company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state insurance, income
tax, Goods and Services Tax (GST), custom duty, cess and other material statutory dues as
applicable to it.
According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, Goods and Services Tax (GST), customs duty, cess and
other material statutory dues wherever applicable were in outstanding as at 31st
March, 2023 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of
income tax, Goods and Services Tax (GST), customs duty, cess or other statutory dues which
have not been deposited on account of any dispute.
(viii) The Company has not surrendered or disclosed any transaction, previously
unrecorded in the books of account, in the assessments under the Income Tax Act, 1961 as
income during the year. Accordingly, the requirement to report on clause 3(viii) of the
order is nor applicable to the company.
(ix) (a) The Company has not defaulted in repayment of loans or borrowing or in the
payment of interest to any lender.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been declared a wilful
defaulter by any bank or financial institution or government or government authority.
(c) According to the information and explanations given to us by the management, the
company has not obtained any term loans during the year. Accordingly, clause 3(ix)(c) of
the order is not applicable.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds have been raised
on short-term basis by the company. Accordingly, clause 3(ix)(d) of the order is not
applicable.
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the
Order is not applicable.
(f) According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries as defined under the Companies Act, 2013. Accordingly,
clause 3(ix)(f) of the Order is not applicable.
(x) (a) The company did not raise any money by way of initial public offer or further
public offer (including debt instruments) during the year. Accordingly, paragraph 3 (x)(a)
of the Order is not applicable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year. Accordingly, clause 3(x)(b) of the Order is not applicable.
(xi) (a) Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the year.
(b) Since no fraud has been noticed, there is no requirement to report under
sub-section (12) of Section 143 of the Companies Act, 2013 in Form ADT-4 as prescribed
under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) As represented to us by the management, there are no whistle blower complaints
received by the company during the year.
(xii) The company is not a nidhi company as per the provisions of the Companies
Act,2013. Therefore, the requirement to report on clause 3(xii) of the order is not
applicable to the company.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the company, transactions with related parties are in
compliance with sections 177 and 188 of the Companies Act and details of such transactions
have been disclosed in the notes to the financial statements as required by the applicable
accounting standards.
(xiv) (a) The Company has an internal audit system commensurate with the size and
nature of its business.
(b) We have considered the internal audit reports of the Company issued till the date
of the audit report for the period under audit.
(xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected with its directors and hence, requirement to report on clause 3(xv) of the order
is not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the
Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Order is not
applicable to the company.
(b) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable to
the company.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not
applicable to the company.
(d) According to the information and explanations provided to us during the course of
audit, the Group does not have any CIC. Accordingly, the requirements of clause 3(xvi)(d)
are not applicable to the company.
(xvii) The Company has not incurred any cash losses in the current year and also in the
immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
Accordingly, requirement to report on clause 3(xviii) of the Order is not applicable to
the company.
(xix) According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
the Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
(xx) The provisions of Corporate Social Responsibility (CSR) as referred u/s 135 of the
Act are not applicable to the Company. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the
Order are not applicable.
for CSVR & ASSOCIATES CHARTERED ACCOUNTANTS
Firm Regn. No. 012121S Place:
Hyderabad Date : 27.05.2023
(CA.VENKATESH.G.)
PARTNER
Membership No.239608
UDIN:23239608BGRMPA4447
ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of DANLAW
TECHNOLOGIES INDIA LIMITED ("the Company") as of 31 March 2023 in
conjunction with our audit of the Ind AS financial statements of the Company for the year
ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to these financial statements based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued
by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an
audit of Internal Financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference to these financial statements
was established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system with reference to these financial statements and
their operating effectiveness. Our audit of internal financial controls with reference to
these financial statements included obtaining an understanding of internal financial
controls with reference to these financial statements, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
with reference to these financial statements of the company.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of Ind AS financial statements for external purposes in
accordance with generally accepted accounting principles. A companys internal financial
control with reference to financial statements includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
Ind AS financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the companys assets that could have a material effect on the Ind AS
financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial
statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls with
reference to financial statements to future periods are subject to the risk that the
internal financial control with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system with reference to financial statements and such internal
financial controls with reference to these financial statements were operating effectively
as at 31 March 2023, based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.
for CSVR & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Regn. No. 012121S
Place: Hyderabad
Date : 27.05.2023
(CA.VENKATESH.G.)
PARTNER
Membership No.239608
UDIN: 23239608BGRMPA4447
+91-9892691696
