Sylph Technologies Limited
Report on the Audit of Standalone Financial Statements
We have audited the accompanying standalone financial statements of Sylph Technologies Limited, which comprises the Balance Sheet as at 31st March, 2024 and the Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to standalone financial statements, including 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 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 loss, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section143(10) of the Act. Our responsibilities under those standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statement sections of our report. We are independentof the Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our audit of thefinancial 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour qualified opinion.
Emphasis of matter
Our opinion is not modified in respect of this matter.
Key Audit Matters
In our professional judgement there were no matters identified as Key audit matters (‘KAM’)
Information Other than the Financial Statements and Auditor’s Report
ThereonThe Company’s Board of Directors is responsible for the preparation of the other information. Theother information comprises the information included in the Company’s Annual Report but does notinclude the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon.
In connection with our audit of the financial statement, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. If based on the work we have performed, we conclude that thereis a material misstatement of this other information; we required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management for the Standalone Financial Statements
The Company’s management and Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financialstatements that give a true and fair view of the financial position, financial performance, changes inequity and Cash Flows of the Company in accordance with the IND AS and other accounting principlesgenerally accepted in India, including the Accounting Standards specified under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design, implementation andmaintenance of adequate internal financial controls, that were operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant to the preparation and presentationof the standalone financial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors areresponsible for assessing the Company’s ability to continue as a going concern, disclosing, asapplicable, matters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so.Board of Directors is also responsible for overseeing the Company’s financialreporting process.
Auditor’s Responsibilities for the Audit of the Financial Statement Our
objectives are to obtain reasonable assurance about whether the standalone financialstatements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Reasonable assurance is a high-level assurance,but is not a guarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic 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 maintainprofessional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting 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 auditprocedures 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 thecompany has adequate internal financial controls with reference to financial statements inplace 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 ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditors’ report. However, futureevents or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statement that, individually or inaggregate, makes it probable that the economics decisions of a reasonably knowledgeable userof the financial statement may be influenced. We consider quantitative materiality andqualitative factors in (i) planning the scope of our audit work and in evaluating the results of ourwork; and (ii) to evaluate the effect of any identified misstatements in the financial statement.
We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and to communicate with them allrelationships 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
As required by Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the CentralGovernment of India, sub-section (11) of section 143 of the Companies Act, 2013, we give in theAnnexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extentapplicable.
As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information & explanations which to the best of ourknowledge and belief were necessary for the purpose of audit.
b) In our opinion, proper books of account as required by law have been kept by the company so faras it appears from our examination of those books.
c) The Balance sheet, the Statement of Profit and Loss, Statement of changes in equity andStatement of Cash Flow dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standardsspecified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2015 as amended.
e) On the basis of written representation received from the directors as on 31st March 2024,taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch 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 with reference to financialstatements of the Company and the operating effectiveness of such controls, refer to ourseparate Report in “Annexure B”.
g) With respect to the other matters to be included in the Auditor’s Report in accordance withthe requirement of section 197(16) of the Act, as amended: e) In our opinion and to the best of our information and according to the explanations given tous, the remuneration paid by the company to its directors during the year is in accordancewith the provision of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best ofour information and according to the explanations given to us:
- The Company does not have any pending litigations
- The Company does nothave any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
- There were no amounts whichwere required to be transferred to the Investor Educationand Protection Fund by the Company.
i) The management has represented that, to the best of its knowledge and belief, nofunds have been advanced or loaned or invested (either from borrowed funds orshare 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 anymanner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) orprovide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
ii) The management has represented that, tothe best of its knowledge and belief,nofundshave been received by the Company from any person(s) or entity(ies), including foreign entities(“Funding Parties”), with the understanding,whether recorded in writingor otherwise, that the Company shall, whether, directly or indirectly, lender invest inother persons or entities identifiedin any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) orprovide any guarantee, security or the likeonbehalf of the UltimateBeneficiaries.
iii) Based on such audit procedures that we considered reasonable and appropriate inthe circumstances, nothing has come to our notice that has caused us to believethatthe representations under sub-clause (i) and (ii) contain material misstatement.
- During the year the company has not declared any dividend.
For BMGS & Associate Chartered Accountants Firm Reg. No 026886N
Vaibhav Bajaj, FCA M. No. 520512
Place: New Delhi Partner
Date: 16/05/2024 UDIN: 24520512BKBESL4474