We have audited the accompanying standalone financial
statements of Quick Heal Technologies Limited ("the
Company"), which comprise the Balance Sheet as at March
31, 2025, 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, 2025, its
profit 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, 2025. 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).
Due to the significance of revenue and involvement of
management judgments relating to identification of
separate performance obligations, this is considered as
a key audit matter.
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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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5. In case of variable consideration, assessed
management’s computations for accrual of discounts
and incentives and on a sample basis compared
the accruals made with the approved schemes and
underlying documents;
6. Ensured that the actual discounts and incentives does
not exceed the approved amount and it has been
recorded in the correct accounting period; and
7. 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:
Refer Note 12 of the Standalone Financial Statements.
The Company has total outstanding trade receivable
amounting to ' 217.76 crores as at March 31, 2025,
against which the Company has provided for ' 47.40
crores towards expected credit loss in the books of
account.
We have identified provisioning for credit loss as a key
audit matter as the calculation of credit loss provision
is a complex area and requires management to make
significant assumptions on customer payment behaviour
and estimating the level and timing of expected future
cash flows.
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We evaluated the judgement and estimation used by
management in recognizing the expected credit loss
provision.
Our procedures included, but were not limited to the following:
1. Obtained an understanding of the Company’s policy
on assessment of expected credit loss against trade
receivables, including design and implementation of
controls, validation of management review controls and
testing the operating effectiveness of these controls;
2. Verified accuracy of the aging of trade receivables for
sample customer transactions;
3. Obtained management’s assessment and plan for
recovery with respect to trade receivables outstanding
for more than 365 days and corroborated the same;
4. Assessed the methodology applied for recognising
expected credit loss against the trade receivables
outstanding balances and verified the same based on
historical collection data;
5. Tested the arithmetic accuracy and completeness of
the expected credit loss provision performed by the
Company; and
6. 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 31,2025
taken on record by the Board of Directors, none
of the directors are disqualified as on March 31,
2025 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 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 final dividend paid by the Company during
the year, in respect of the dividend declared
for the previous year, is in accordance with
section 123 of the Companies Act 2013 to
the extent applicable to the payment of
dividends.
vi. Based on our examination which included
test checks, the Company has used
accounting software 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 an 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.
Based on our examination, the Company
has used an accounting software which is
operated by a third-party software service
provider, for maintaining its payroll records
which has a feature of recording audit
trail (edit log) facility and the same has
been operated throughout the year for all
the relevant transactions recorded in the
software as explained in Note 46 to the
standalone financial statements.
Further, during the course of our audit and
considering SOC report, we did not come
across any instance of audit trail feature
being tampered with. Additionally, the audit
trail of prior year has been preserved by the
Company as per the statutory requirements
for record retention.
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
Chartered Accountants
ICAI Firm Registration No. 105047W
Sd/-
Shraddha D Khivasara
Partner
Place: Pune Membership No. 134285
Date: May 06, 2025 UDIN: 25134285BMNTDD4660
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