We have audited the accompanying Standalone Financial Statements of Sasken Technologies Limited ("the Company"), which comprisethe Balance Sheet as at March 31, 2025, and the Statement of Profit and Loss, including Other Comprehensive Income, Statement ofChanges in Equity and Statement of Cash Flows for the year then ended, and notes to the Standalone Financial Statements, includingmaterial accounting policy information and other explanatory information (hereinafter referred to as the "Standalone FinancialStatements").
In our opinion and to the best of our information and according to the explanations given to us the aforesaid Standalone FinancialStatements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules, 2015, as amended ("Ind AS") and other accounting principles generally accepted in India, of the stateof affairs of the Company as at March 31, 2025, and profit (including other comprehensive income), changes in equity and its cashflows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified underSection 143(10) of the Act. Our responsibilities under those Standards are further described in the 'Auditor's Responsibilities for theAudit of the Standalone Financial Statements' section of our report. We are independent of the Company in accordance with the Codeof Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevantto our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the StandaloneFinancial Statements for the year ended March 31, 2025. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicated in our report.
Sr.
No
Key Audit Matters
How the Key Audit Matters was addressed in our audit
1
Revenue Recognition from Fixed Price Contracts (ReferNote 3(c) to the Standalone Financial Statements)
Revenue from fixed price contracts is recognized usingpercentage of completion method ("POC") as per theinput method prescribed under Ind AS 115 - Revenuefrom contracts with customers ("Ind AS 115") whereperformance obligations are satisfied over time. The POCmethod involves computation of actual cost incurred tilldate and estimation of total future cost to be incurredtowards remaining performance obligations over the lifeof the project, which involves following factors requiringsignificant auditor attention:
i. There is an inherent estimation uncertainty relatingto determination of the progress of each contract,cost incurred till date and future cost to complete theremaining performance obligation on the contract, giventhe customized nature of the contracts.
Our audit procedures related to estimation of total cost to completethe contract for fixed price contracts included but not limited tofollowing:
i. Obtained an understanding of the systems, processes andcontrols implemented by management for recording andcomputing revenue and associated contract assets and contractliabilities.
ii. Verified the design, implementation and operating effectivenessof the internal financial controls implemented by the Companywith respect to estimation of future cost to completion,estimation of provision for onerous contract, measurement ofcontract assets, contract liabilities, total contract revenue on itscompletion, approval and recording of revenue on a test checkbasis.
iii. Internal Information Technology ('IT') specialists wereinvolved to verify the design and operating effectiveness ofkey application controls relating to revenue recognition which,included testing of automated controls, system generatedreports and system reconciliations.
ii. The estimation of total cost to complete the contractinvolves significant judgement throughout the periodof contract and is subject to revision as the contractprogresses based on latest available information andalso involves critical estimates to make provision foronerous contract.
iii. At year end a significant amount of contract assetsand contract liabilities related to each contract is tobe identified which involve significant judgement andestimation. In view of above, the above matter has beenidentified as a key audit matter.
iv. We performed below substantive audit procedures on a testcheck basis for fixed price contract:-
a. Verified the contractual terms to identify the performanceobligation and assessed the basis of revenue recognitionin accordance with Ind AS 115;
b. Compared the status of delivery of the milestones andcustomer acceptances with the agreed timelines as perthe contract to identify possible delays in achieving themilestones which require changes in estimated cost tocomplete the contract;
c. Performed inquiries with delivery / project managers tocorroborate the status of contracts;
d. Carried out a retrospective assessment of costs incurredwith estimated costs to identify any significant variationand verified whether those variations have beenconsidered in estimating the remaining costs to completethe contract;
e. Verified that the revenue in foreign currency is recognisedapplying the spot exchange rate between the functionalcurrency and the foreign currency at the date of thetransaction;
f. Verified the mathematical accuracy of the calculationof revenue using the ratio of actual costs incurred toestimated costs;
g. Verified the accuracy of the actual cost incurred in respectof fixed price contracts;
h. Assessed the appropriateness of contract assetson Balance Sheet date by evaluating the underlyingdocumentation to identify possible changes in estimatedcosts to complete the remaining performance obligations;and
i. Inspected underlying documents to determinereasonableness of contract costs.
v. On the basis of above procedures, verified that adequateprovision has been accounted for in respect of onerous contracts.
vi. Verified that the adequate disclosure has been made in respectof revenue from contracts with customers, contract assets andcontract liabilities in compliance with the requirements of IndAS 115 - 'Revenue from contracts with customer'.
2
Evaluation of uncertain tax positions (Direct Tax andIndirect Tax)
Refer Note 33 to the Standalone Financial Statements
The Company has ongoing litigations with respectto Direct tax and Indirect tax at various levels. Thereare significant matters of interpretation in terms ofapplication of tax laws and rules to determine currentand deferred taxes. The Company's tax positions arechallenged by the tax authorities on a range of taxmatters including indirect tax matters.
Our audit procedures related to evaluation of uncertain tax positionsincluded but not limited to following:
i. Obtained a detailed understanding of the management'sprocess for determining statutory liabilities, provisions andcontingent liabilities pertaining to tax claims and disputes.
ii. Verified the design, implementation, and operating effectivenessof key internal financial controls over review and approval ofaccounting of uncertain tax positions and related disclosures inthe Standalone Financial Statements.
This requires the Management to make significantjudgements and evaluations of the outcome of uncertaintax positions that are currently in litigation before varioustax authorities and thus it may significantly impact therecognition of liabilities and contingent liability relateddisclosure as per requirements of 'Ind AS 37 - Provisions,Contingent Liabilities, and Contingent Assets'.
In view of the above and significance of the matter, thishas been identified as a key audit matter.
iii. Obtained the details and understood the nature of tax positionsand litigations pending against the Company by reading theminutes of various meetings and discussing the developmentsduring the year for litigations with Chief Risk Officer and withother Senior Management personnel.
iv. Obtained management's evaluation on outcome of thesematters, where applicable.
v. Read the orders received by the Company from the taxauthorities.
vi. We along with our internal tax experts:
a. read and analysed key correspondences and relevantlegal precedence and other rulings on test check basis;
b. evaluated the Company's key underlying assumptions inestimating the tax provisions;
c. assessed the Company's estimate of the possibleoutcome of the disputed cases;
vii. Assessed whether the Company's disclosures in Note 33 tothe Standalone Financial Statements - contingent liabilitiesand commitments, adequately disclose the relevant facts andcircumstances of the Company in compliance with Ind AS 37Provisions, Contingent Liabilities and Contingent Assets andInd AS 12 Income Tax.
The Company's Board of Directors is responsible for the other information. The other information comprises the Company's annualreport 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 assuranceconclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doingso, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude thatthere is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financial position, financial performance, changes in equityand cash flows of the Company in accordance with the accounting principles generally accepted in India, including the AccountingStandards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonableand prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalonefinancial statement 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 are responsible for assessing the Company's ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlessthe 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 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 materialmisstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they couldreasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
We give in "Annexure A" a detailed description of Auditor's responsibilities for Audit of the Standalone Financial Statements.
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 Act, we give in "Annexure B" 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, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief werenecessary 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 ourexamination of those books, except for the matters stated in the paragraph g(vi) below on reporting under Rule 11(g).
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes inEquity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
(d) I n our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified underSection 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Boardof Directors, none of the directors are disqualified as on March 31, 2025 from being appointed as a director in terms ofSection 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of theCompany and the operating effectiveness of such controls, refer to our separate Report in "Annexure C".
(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand 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 on its financial position in its Standalone FinancialStatements - Refer Note 33 to the Standalone Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any materialforeseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and ProtectionFund 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 persons or entities, including foreign entities ("Intermediaries"), with theunderstanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectlylend 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 bythe Company from any persons or entities, including foreign entities (Funding Parties), with the understanding,whether recorded in writing or otherwise, as on the date of this audit report, that the Company shall, directly orindirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the UltimateBeneficiaries.
c. Based on the audit procedures performed that have been considered reasonable and appropriate in thecircumstances, and according to the information and explanations provided to us by the Management in thisregard 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 mis-statement.
v. On the basis of our verification, we report that:
a. The interim dividend declared and paid by the Company during the year and until the date of this audit report isin accordance with Section 123 of the Companies Act 2013.
b. The final dividend paid by the Company during the year in respect of the same declared for the previous year isin accordance with Section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
c. The Board of Directors of the Company have proposed final dividend for the year which is subject to the approvalof the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section123 of the Act to the extent it applies to declaration of dividend. (Refer Note 15 to the Standalone FinancialStatements)
vi. Based on our examination, the Company has used an accounting software, for maintaining its books of account duringthe year ended March 31, 2025, which has a feature of recording audit trail (edit log) facility, except that no audittrail feature was enabled at the database level for certain part of the year in respect of the said software to log anydirect data changes. Further, the audit trail facility has been operated throughout the year for all relevant transactionsrecorded in the accounting software, except for the said software at the database level as stated above, in respectof which the audit trail facility has not operated throughout the year for all relevant transactions recorded in thisaccounting software as it was enabled only for certain part of the year. Further, during our examination, we did notcome across any instance of the audit trail feature being tampered with, post enablement of the audit trail facility.
Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements forrecord retention to the extent it was enabled and recorded in previous year.
(h) The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph(b) above on reporting under Section 143(3)(b) and paragraph g (vi) above on reporting under Rule 11(g).
3. In our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is withinthe limits laid prescribed under Section 197 read with Schedule V of the Act and the rules thereunder.
Chartered Accountants
ICAI Firm Registration No. 105047W
Partner
Membership No. 216706
UDIN: 25216706BMOQKF5421
Place: Bengaluru
Date: April 25, 2025