May 25, 2023
The Members
IPOWER SOLUTIONS INDIA LIMITED Chennai
Report on the Standalone Ind AS Financial Statements Opinion :
We have audited the accompanying Ind AS Financial Statements of IPOWER SOLUTIONS
INDIA LIMITED ("the Company”) which comprises the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
Statement of Cash Flows and the Statement of Changes in Equity for the year then ended,
and notes to the Ind AS Financial Statements, including a summary of 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 Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India including the Ind AS,
a) in the case of Balance Sheet, of the state of affairs of the Company as at 31st
March, 2023 ;
b) in the case of Statement of Profit and Loss, of the Loss for the year then ended ;
c) in the case of Cash Flow Statement, of the cash flows of the Company for the year ;
d) in the case of Statement of Changes in Equity, of the changes in Equity, for the
year ended on that date.
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 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
Standalone 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
opinion.
Key Audit Matters :
Key Audit Matters are those matters that, in our professional judgment, were of most
significance in our audit of the Ind AS financial statements of the current period. During
the current year, the company had very minimal turnover relating to ITES services which
are one off items and are not contractual. These matters were addressed in the context of
our audit of the Ind AS Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Responsibility of Management 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 Balance Sheet
(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, including the Indian Accounting Standards (Ind AS)
prescribed 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 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 is 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 management
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
companys financial reporting process.
Auditors Responsibility for the Audit of the Ind AS Financial Statements :
Our responsibility is to express an opinion on these Ind AS Financial Statements based
on our audit.
We have taken into account the provisions of the Act, the Indian accounting and
auditing standards and matters which are required to be included in the audit report under
the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Ind AS Financial Statements in accordance with the
Standards on Auditing specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the Ind AS financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the Ind AS financial statements. 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. In making those risk
assessments, the auditor considers internal financial control relevant to the Companys
preparation of the Ind AS financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of
the accounting estimates made by the Companys Directors, as well as evaluating the
overall presentation of the Ind AS financial statements.
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.
Report on Other Legal and Regulatory Requirements :
As required by the Companies (Auditors 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 enclose in the "Annexure A” a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 oig^udit.
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), the Cash Flow Statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS Financial Statements comply with the Indian
Accounting Standards specified under Section 133 of the Act.
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, 2023 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 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:
1) The Company has disclosed the impact of pending litigations on its financial
position in its Ind AS financial statements - Refer Note 16 (Continent Liabilities) to the
Ind AS Financial Statements.
2) Provision relating to Material Foreseeable Losses on Long-Term Contracts - Not
Applicable. The company neither entered into any derivative contract during the year nor
have any outstanding derivative contract at the year end.
3) The company does not have any funds that are required to be transferred, to the
Investor Education and Protection Fund.
4) Based on our audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
various matters mentioned in Disclosures of other Statutory Information annexed to the
Notes to accounts, contain any material mis-statement.
5) The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
6) 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 ANANT RAO & MALLIK
Chartered Accountants Firm Regn. No. 006266S
V ANANT RAO
Partner
Membership No. 022644 UDIN : 23022644BG UPGY1223
Annexure - A to the Independent Auditors Report
The Annexure referred to in Paragraph 1 under the heading of “Report on
Other Legal and Regulatory Requirements” of our report of even date to the
members of IPOWER SOLUTIONS INDIA LIMITED for the year ended 31st
March, 2023 :
We report that :
(i) With respect to Property, Plant and Equipment :
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment which needs to be
updated.
The Company does not have any Intangible Assets.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Property, Plant and Equipment have not been
physically verified by the management during the year.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company does not hold any immovable
properties.
(d) The Company has not revalued its Property, Plant and Equipment during the year.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, no proceedings have been initiated or are
pending against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder.
(ii) (a) According to the information and explanations given to us and on the basis
of our examination of the records of the Company, the company is in the business of
developing and providing software and allied services and does not have any physical
inventories. As such clause 3(ii) of the said Order is not applicable to the company.
(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 had not made any investments in or
provided any guarantee or security or granted any loans or advances in the nature of loans
to companies, firms or LLPs or any other parties during the year.
(iv) According to the information and explanations given to us, the provisions of
clause 3(iv) of the said Order are not applicable to the Company as there were no such
instances as mentioned in point 3(iii) above.
(v) The Company has not accepted fixed deposits from its shareholders and General
Public as per the information and explanations given to us. As such, clause 3(v) of the
said Order is not applicable to the company.
(vi) The maintenance of cost records has not been specified by the Central Government
under section 148(1) of the Companies Act, 2013 for the business activities carried on by
the company. As such clause 3(vi) of the said Order is not applicable to the Company.
(vii) With respect to Statutory Dues :
(a) According to the information and explanations given to us and the records of the
Company examined by us, the Company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Employees State Insurance, Income-tax, Goods and
Services Tax, Duty of Customs, Duty of Cess and other material statutory dues as
applicable to it, with the appropriate authorities and there were no undisputed statutory
dues outstanding as at 31st March, 2023 for a period exceeding six months from
the date they became payable.
(b) According to the information and explanations given to us and the records of the
Company examined by us, there are no disputed statutory dues which have not been deposited
as at 31st March 2023.
(viii) On the basis of our examination of records and according to the information and
explanations given to us, the Company does not have any transactions which are referred to
in clause (viii) of para 3 referred to in the said Order.
(ix) (a) In our opinion and according to the information and explanations given to
us, the Company has availed any Loans from Banks, Financial Institutions and
Government.
(b) Clauses 3(ix) (a) and (f) referred to in the said Order are not applicable.
(x) In our opinion and according to the information and explanations given to us, the
Company has not raised any monies by way of initial public offer or further public offer
during the year. The company has also not made any preferential allotment or private
placement of shares or convertible debentures during the year. Therefore, clause (x) of
paragraph 3 of the said order is not applicable to the Company.
(xi) In our opinion and according to the information and explanations given to us, no
fraud by the Company or on the Company by its officers / employees / whistle blowers has
been noticed or reported during the year. Therefore, clauses (xi) (a) to (xi) (c) of
paragraph 3 of the said order are not applicable to the Company.
(xii) The Company is not a Nidhi Company. Therefore, clauses (xii)(a) to (xii)(c) of
paragraph 3 of the said order are 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 the related parties are in
compliance with sections 177 and 188 of the Act, where applicable, and details of such
transactions have been disclosed in the Ind AS financial statements as required by the
applicable accounting standards.
(xiv) (a) The Company has an Internal Audit System by a Chartered Accountant.
(b) The Report of the Internal Auditor for FY 2022-23 was considered by us.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the company has not entered into any non-cash
transactions with directors or persons connected with them and as such the provisions of
Section 192 of the Companies Act, 2013 are not applicable.
(xvi) According to the information and explanations given to us and based on our
examination of the records of the Company, the company is not required to be registered
under Section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934). Therefore, clauses
(xvi)(a) to (xvi)(d) of paragraph 3 of the said order is not applicable to the Company.
(xvii) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has incurred cash losses in this
financial year (FY 2022-23) only.
(xviii) There has been no resignation by the Statutory Auditors of the company during
the year and as such provisions of clause (xviii) of paragraph 3 of the said order is not
applicable to the Company.
(xix) According to the information and explanations given to us and based on our
examination of the records of the Company, the information accompanying the financial
statements, our knowledge of the Board of Directors and the management plans, no material
uncertainty exists as on the date of the audit report and the company is 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.
(xx) According to the information and explanations given to us and based on our
examination of the records of the Company, the company does not have any on-going projects
or other projects and as such provisions of clause (xx) (a) and (b) of paragraph 3 of the
said order are not applicable to the Company.
(xxi) Clause 3(xxi) of the said Order is not applicable to the company as it does not
have any subsidiaries.
For ANANT RAO & MALLIK
Chartered Accountants
Firm Regn.No. 006266S
V.ANANT RAO
Partner
Membership No. 022644 UDIN : 23022644BG UPGY1223
Annexure - B to the Independent Auditors Report
The Annexure referred to in Paragraph 2 (f) under the heading of “Report on Other
Legal and Regulatory Requirements” of our report of even date to the members of
IPOWER SOLUTIONS INDIA LIMITED for the year ended 31st March, 2023 :
Report on the Internal Financial Controls Over Financial Reporting 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 IPOWER
SOLUTIONS INDIA LIMITED ("the Company”) as of March 31, 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 over financial reporting 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 over financial reporting 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 over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
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
elected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the standalone 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
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting :
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of standalone Ind AS financial statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial control over
financial reporting 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 standalone 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
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting :
Because of the inherent limitations of internal financial controls over financial
reporting, 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 over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting 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 over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 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 ANANT RAO & MALLIK
Chartered Accountants Firm Regn No. 006266S
V.ANANT RAO
Partner
Membership No. 022644 UDIN : 23022644BG UPGY1223
+91-9892691696
