We have audited the accompanying standalone financial
statements of Quick Heal Technologies Limited ("the Company"),
which comprise the Balance Sheet as at March 31,2026, 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 the standalone financial
statements, including material accounting policy information
and other explanatory information (hereinafter referred to as the
"standalone financial statements").
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone 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 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 31,2026, its loss
and other 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 standalone financial statements in
accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Act. Our responsibilities under those Standards
are further described in the 'Auditor's Responsibilities for the Audit of
the Standalone 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 ("ICAI")
together with the ethical requirements that are relevant to our audit
of the standalone financial statements under the provisions of the
Act 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 obtained by us 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
standalone financial statements for the year ended March 31,
2026. These matters were addressed in the context of our audit
of the standalone financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on
these matters. We have determined the matters described below
to be the key audit matters to be communicated in our report.
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Sr.
No.
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Key Audit Matter
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How the Key Audit Matter was addressed in our audit
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1.
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Revenue from contract with customers:
Refer the disclosures related to Revenue recognition
in Note 24 to the accompanying Standalone Financial
Statements.
Revenue from the sale of security software products is
recognised when control of the goods is transferred to
the customer at an amount that reflects the consideration
to which the Company expects to be entitled in exchange
for those goods.
The Application of Ind AS 115 involves certain key
judgements relating to identification of performance
obligations, determination of basis and its appropriateness
for allocation of transaction price to the identified
performance obligations; recognition of such identified
performance obligations based on timing of satisfaction
(i.e., over time or point in time).
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Our audit procedures in respect of this area include, but are not
limited to, following:
1. Evaluated the Company's accounting policies for revenue
recognition (including incentives) and assessed its compliance
with Ind AS 115 'Revenue from contracts with customers';
2. Obtained and reviewed contracts with customers and
confirmed our understanding of the Company's sales process,
including design and implementation of controls and tested the
operating effectiveness of these controls on a sample basis;
3. Reviewed the customer agreements, on a sample basis, to test
the terms and conditions for sale of such products including
identification of performance obligations and allocation of the
transaction price to such performance obligation based on
appropriate method, as applicable;
4. Discussed with management the key assumptions underlying
the Company's assessment of cost related to identified
performance obligations and tested mathematical accuracy
of the underlying data used for computation and calculations
made by the Company;
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Sr.
No.
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Key Audit Matter
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How the Key Audit Matter was addressed in our audit
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Due to the significance of revenue and involvement of
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5.
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In case of variable consideration, assessed management's
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management judgments relating to identification of
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computations for accrual of discounts and incentives and on a
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separate performance obligations, this is considered as a
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sample basis compared the accruals made with the approved
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key audit matter.
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6.
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schemes and underlying documents;
Ensured that the actual discounts and incentives does not
exceed the approved amount and it has been recorded in the
correct accounting period; and
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7.
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Evaluated the appropriateness of the disclosures made in
the standalone financial statement in relation to revenue
recognition as required by applicable accounting standards.
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2.
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Provision for expected credit loss for accounts receivables:
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We evaluated the judgement and estimation used by management
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Refer Note 12 of the Standalone Financial Statements.
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in recognizing the expected credit loss provision.
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The Company has total outstanding trade receivable
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Our procedures included, but were not limited to the following:
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amounting to H 195.68 crores as at March 31,2026, against
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1.
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Obtained an understanding of the Company's policy on
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which the Company has provided for H 55.62 crores
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assessment of expected credit loss against trade receivables,
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towards expected credit loss in the books of account.
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including design and implementation of controls, validation
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We have identified provisioning for credit loss as a key
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of management review controls and testing the operating
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audit matter as the calculation of credit loss provision
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effectiveness of these controls;
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is a complex area and requires management to make
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2.
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Verified accuracy of the aging of trade receivables for sample
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significant assumptions on customer payment behaviour
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customer transactions;
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and estimating the level and timing of expected future
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3.
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Obtained management's assessment and plan for recovery with
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cash flows.
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respect to trade receivables outstanding for more than 365 days
and corroborated the same;
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4.
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Assessed the methodology applied for recognising expected
credit loss against the trade receivables outstanding balances
and verified the same based on historical collection data;
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5.
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Tested the arithmetic accuracy and completeness of the
expected credit loss provision performed by the Company; and
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6.
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Assessed and validated the adequacy and appropriateness
of the disclosures made by the management is as per the
requirements of Ind AS 109 -'Financial Instruments'.
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Information Other than the Standalone Financial
Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other
information. The other information comprises the Management
Discussion and Analysis, Director's report, Corporate Governance
report, Business Responsibility and Sustainability Reporting 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
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is
materially inconsistent with the standalone 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.
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
of these standalone financial statements that give a true and fair
view of the financial position, financial performance, changes in
equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including
the Accounting Standards specified 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 of 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 standalone
financial 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
Management and Board of Directors are responsible for
assessing the Company's 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
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 material misstatement, whether due to fraud or error, and
to issue an auditor's 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 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 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 except
for the matters stated in the paragraph 2(h)(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 in Equity and the Statement of
Cash Flow dealt with by this Report are in agreement
with the books of account.
(d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act.
(e) On the basis of the written representations received
from the directors as on March 31, 2026 taken on
record by the Board of Directors, none of the directors
are disqualified as on March 31, 2026 from being
appointed as a director in terms of Section 164
(2) of the Act.
(f) The reservation relating to maintenance of accounts
and other matters connected therewith are as stated
in paragraph 2(b) above on reporting under Section
143(3)(b) and paragraph 2(h)(vi) below on reporting
under Rule 11(g).
(g) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in "Annexure C".
(h) With respect to the other matters to be included in
the Auditor's 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 has disclosed the impact of
pending litigations on its financial position in
its standalone financial statements - Refer Note
36(d) to the standalone financial statements;
ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company.
iv. 1. 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, 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.
2. 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, as on the date of
this audit report, that the Company shall,
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.
3. Based on the audit procedures performed
that have been considered reasonable
and appropriate in the circumstances,
and according to the information and
explanations provided to us by the
Management in this regard 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 (1) and (2) above, contain
any material mis-statement.
v. The Company has not declared or paid any
dividend during the year.
vi. Based on our examination which included test
checks, the Company has used two accounting
softwares for maintaining its books of account
which has a feature of recording audit trail (edit
log) facility, except that no audit trail feature
was enabled at the database level in respect
of one accounting software to log any direct
data changes as explained in Note 46 to the
standalone financial statements.
Further, where enabled, audit trail feature has
been operated for all relevant transactions
recorded in the accounting software. Also,
during the course of our audit, we did not come
across any instance of audit trail feature being
tampered with in respect of such accounting
software. Additionally, the audit trail of prior
year has been preserved by the Company as per
the statutory requirements for record retention
to the extent it was enabled and recorded in
respective years.
3. In our opinion, according to information, explanations
given to us, the remuneration paid by the Company to its
directors is within the limits prescribed under Section 197
read with Schedule V of the Act and the rules thereunder.
For M S K A & Associates LLP
(Formerly known as M S K A & Associates)
Chartered Accountants
ICAI Firm Registration No. 105047W/W101187
Sd/-
Shraddha D Khivasara
Partner
Place: Pune Membership No. 134285
Date: May 21,2026 UDIN: 26134285KQROZD9616
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