We have audited the accompanying standalone financial
statements of Paramatrix Technologies Limited (Formerly
known as Paramatrix Technologies Private Limited) ("the
Company") which comprises the standalone Balance Sheet
as at 31st March, 2025, the standalone Statement of Profit
and Loss and standalone Cash Flow Statement for the year
then ended, and notes to the financial statements, including
a summary of 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 standalone
financial statements given the information required by the
Companies Act, 2013 ("Act") in the manner so required and
give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of
the Company as at 31st March, 2025, the profit and loss 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 section 143(10) of
the Companies Act, 2013. 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 together with
the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies
Act, 2013 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 we have obtained is sufficient and appropriate
to provide a basis for our opinion on the standalone financial
statements.
Key Audit Matter
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements of the current period. 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 that there are no key audit matters to be
communicated in our report.
Emphasis of Matter
Emphasis of matter are those matters that, in our professional
judgment, are of such importance that it is fundamental to the
user's understanding of the financial statement.
We draw attention to Note 47 of the financial statements,
which describes that the Board of Directors and the Members
of the Company at their meetings held on 18th April, 2025 and
19th May 2025, respectively, have approved the buy-back of
up to 4,60,800 fully paid-up Equity Shares of Face Value of
Rs 10/- (Rupees Ten only) each (representing 4% of the total
issued and paid-up equity share capital of the Company as on
31st March, 2025) at a price of Rs 130/- (Rupees One Hundred
and Thirty only) per Equity Share payable in cash for an
aggregate amount not exceeding ' 5,99,04,000/- (Rupees Five
Crore Ninety-Nine Lakh Four Thousand Only) (excluding any
incidental transaction costs). The Buy-back is in accordance
with the provisions of Sections 68, 69, 70, and all other
applicable provisions, if any, of the Companies Act, 2013, and
the rules framed thereunder, as well as the Securities and
Exchange Board of India (Buy-back of Securities) Regulations,
2018, and other applicable provisions, if any. Our opinion is
not modified in respect of this matter.
Other Information
The Company's Management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Integrated Report,
Board's Report along with its Annexures and Financial
Highlights included in the Company's Annual Report 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 will 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 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.
Management Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Companies Act,
2013 ("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, 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 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
financial statement that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the 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 management 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 Responsibility
Our objectives are to obtain reasonable assurance about
whether the 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 SA 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 financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls system in place 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 of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Company's ability
to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures
in the standalone financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law
or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
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 the "Annexure A" a statement on the
matters specified in the paragraph 3 and 4 of the Order,
to the extent applicable.
2. A As required by Section 143(3) of the Act, we report
that:
i. 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.
ii. 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(B)
(vi) below on reporting under Rule 11 (g) of the
Companies (Audit and Auditors) Rules, 2014.
iii. The reports on the accounts of the branch offices
of the Company audited under Section 143(8) of
the Act is not applicable as the Company is not
having any Branch.
iv. The standalone Balance Sheet and the standalone
Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement
with the books of account.
v. In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
vi. On the basis of the written representations
received from the Directors as on 1st April, 2024
and 1st April, 2025 taken on record by the Board of
Directors, none of the directors is disqualified as on
31st March, 2025 from being appointed as a director
in terms of Section 164 (2) of the Act.
vii. With respect to the adequacy of the internal financial
controls over financial reporting of the Company
and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
B 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 does not have any pending litigations
which would impact its financial position.
ii. The Company does not have long-term contracts
including Derivative contracts and there are no
material foreseeable losses.
iii. There was no amount which was required to be
transferred to the Investor Education and Protection
Fund by the Company.
iv. a. The management has represented that, to the
best of its knowledge and belief, no funds have
been advanced or lent 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 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 ("Ultimate Beneficiaries") by or on
behalf of the Company or,
• provide any guarantee, security or the like to or
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 by the Company from any persons
or entities, including foreign entities ("Funding
Parties"), with the understanding, whether recorded
in writing or otherwise, that the Company shall:
• directly or indirectly, lend or invest in other
persons or entities identified in any manner
whatsoever ("Ultimate Beneficiaries") by or on
behalf of the Funding Party or
• provide any guarantee, security or the like from
or on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures as considered
reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to
believe that the representations under sub-clause (iv) (a)
and (iv) (b) contain any material mis-statement.
v. Compliance with Section 123 of the Act is not applicable
to company as dividend is neither declared nor paid
during the current financial year.
vi. The reporting under Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014 is applicable from 1 April
2023. Based on our examination which included test
checks, the Company has used accounting software
for maintaining its books of account for the financial
year ended 31st March, 2025, which have a feature of
recording audit trail (edit log) facility at the transactions
level only and the same has operated throughout the year
for all relevant transactions recorded in the respective
software. Further, for the periods where audit trail (edit
log) facility was enabled and operated throughout the
year for the respective accounting software, we did not
come across any instance of the audit trail feature being
tampered with.
We are unable to comment whether the audit trail feature
of the database level of the said software was enabled and
operated throughout the year for all relevant transactions
recorded in the software. Further, we were also unable
to verify the implementation and operation of audit
trail functionality, if any, in other software applications
used by the Company for transaction processing,
including Payroll and spreadsheet-based tools.
Additionally, the audit trail, where enabled, has been
preserved by the company as per the statutory
requirements for record retention.
vii. Paramatrix Technologies Limited has voluntarily got
itself converted from a 'Private Limited Company' to
'Limited Company' w.e.f. 19th Nov 2023, vide INC-27
(SRN-AA6171046). The company came up with an Initial
Public offering of 30,76,800 Equity Shares of Rs10 each
for a cash price of Rs 110 comprising of a Fresh Issue
of upto 27,58,800 Equity Shares and an Offer for Sale of
upto 3,18,000 Equity Shares by the selling shareholders
of the company. The Equity Shares were listed on NSE
w.e.f 4th September, 2024 and listing status of the
company was updated to Listed with immediate effect.
We hereby confirm that the remuneration drawn by the
Directors of the Company is within the approved range.
For E. A. PATIL & ASSOCIATES LLP
Chartered Accountants
(Firm Registration No. 117371W / W100092)
sd/-
CA. Sujata Lohia
Partner
Membership no. 402881
Place : Navi Mumbai
Date : May 28th, 2025
UDIN : 25402881BMKQIW3630
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