We have audited the standalone financial statements ofIndiaMART InterMESH Limited (the "Company") whichcomprise the standalone balance sheet as at 31 March 2025,and the standalone statement of profit and loss (including othercomprehensive income), standalone statement of changes inequity and standalone statement of cash flows for the year thenended, and notes to the standalone financial statements, includingmaterial accounting policies and other explanatory information.
In our opinion and to the best of our information and accordingto the explanations given to us, the aforesaid standalone financialstatements give the information required by the Companies Act,2013 ("Act") in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted inIndia, of the state of affairs of the Company as at 31 March 2025,and its profit and other comprehensive loss, changes in equity andits cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilitiesunder those SAs are further described in the Auditor's Responsibilitiesfor the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to ouraudit of the standalone financial statements under the provisionsof the Act and the Rules thereunder, and we have fulfilled our otherethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of the standalonefinancial statements of the current period. These matters wereaddressed in the context of our audit of the standalone financialstatements as a whole, and in forming our opinion thereon, and wedo not provide a separate opinion on these matters.
Revenue Recognition - Web Services
See Note 2.3(c) and 19 to standalone financial statements
The key audit matter
How the matter was addressed in our audit
The Company generates revenue primarily from web services andfollows a prepaid model for its business.
Revenue from web services is recognised over the period ofthe contract as and when the Company satisfies performanceobligations by actually rendering the promised services to itscustomers.
These services are delivered using IT systems which manage veryhigh volume on daily basis and generate reports from which theCompany recognises revenue, and hence there is inherent riskaround the existence and accuracy of revenue recognition.
In view of the significance of the matter, we applied the followingaudit procedures in this area, among others to obtain sufficientappropriate audit evidence:
i. We assessed the appropriateness of the revenue recognitionaccounting policy and its compliance with applicableaccounting standards.
ii. We evaluated the design and implementation of key internalfinancial controls and operating effectiveness of the relevantkey controls with respect to existence and accuracy of revenuerecognition on selected transactions.
iii. We, with the involvement of IT specialists, evaluated the design,implementation and operating effectiveness of management'sgeneral IT controls and key application controls over theCompany's IT systems which govern revenue recognition,including access controls, controls over program changes andinterfaces between different systems.
iv. We selected a sample of transactions using statistical samplingand performed tests of details including reading the contract,identifying performance obligation and its link with actual renditionto assess whether the criteria for revenue recognition are met.