We have audited the accompanying financial statements of Clio Infotech limited (the
"Company") which comprise the Balance Sheet as at March 31, 2024, the Statement of
Profit and Loss (Including Other Comprehensive Income), statement of changes in equity
and statement of cash Flow for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other
explanatory information (herein after referred to as "the financial statements").
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, its profit, total comprehensive income and
its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit of the financial statements in accordance with the Standards
on Auditing ("SA"s) specified under section 143(10) of the Act (SAs). Our responsibilities
under those Standards are further described in the Auditor's Responsibility for the Audit
of the 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 financial statements under the provisions of the Act and the Rules made
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI's Code of Ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis for our audit opinion on
the financial statements.
Key Audit Matters
Key Audit matters ('KAM') are those matters that, in our professional judgment, were of
most significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the 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 below to be key audit matters to be communicated in
our report:
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Key Audit Matters
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How the matter was addressed in our Audit
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Appropriateness of Current and Non¬
Current Classification
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For the purpose of current & non-current
classification the Company has considered its
normal operating cycle as 12 Months and the
same is based on services provided,
acquisition of assets or inventory, their
realization in cash and cash equivalents. The
classification is either done on basis of
documentary evidence and if not then on the
basis of managements best estimate of period
in which asset would be realized or liability
would be settled.
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Expected credit loss allowances
Recognition and measurement of
impairment of financial assets involve
significant management judgement. With
the applicability of Ind AS 109, credit loss
assessment is now based on expected credit
loss (ECL) model. The Company's
impairment allowance is derived from
estimates including the historical default
and loss ratios. Management exercises
judgement in determining the quantum of
loss based on a range of factors. The most
significant areas are loan staging criteria,
calculation of probability of default / loss
and consideration of probability weighted
scenarios and forward looking
macroeconomic factors. There is a large
increase in the data inputs required by the
ECL model. This increases the risk of
completeness and accuracy of the data that
has been used to create assumptions in the
model. In some cases, data is unavailable
and reasonable alternatives have been
applied to allow calculations to be
performed. As per management opinion,
there is no expected credit loss in several
financial assets including the trade
receivables and other financial assets of the
Company and all are on fair value, based on
the assessment and judgement made by the
board of the company.
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In view of the significance of the matter we
applied the following audit procedures, on test
check basis, in this area, among others to
obtain reasonable audit assurance:
• We evaluated management's process
and tested key controls around the
determination of extent of
requirement of expected credit loss
allowances, including recovery process
& controls implemented in the
company for trade receivables and
other financial assets. It was explained
to us by the management that the
control exists relating to the recovery
of receivables, including those aging
for large periods and in the opinion of
the board there is no requirement
making expected credit loss allowance.
• We have also reviewed the
management response and
representation on recovery process
initiated for sample receivables, and
based on the same we have place
reliance on these key controls for the
purposes of our audit.
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Management and Board of Directors are responsible for the other
information. The other information comprises the information included in the
Company's annual report, but does not include 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 express any form of assurance conclusion thereon.
In connection with our audit of the 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 during the course
of our 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.
2. Management's Responsibility for the Financial Statements
The Company's Management and Board of Directors are responsible for the matters
stated in Section 134(5) of the Act with respect to the preparation of these financial
statements that give a true and fair view of the state of affairs, profit/loss and other
comprehensive income, changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) 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 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 financial
statements 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 respective 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 is also responsible for overseeing the Company's financial
reporting process.
3. Auditor's Responsibility for the audit of the Financial Statements
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 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 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 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 control 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 the 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 ability of the Group 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 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 financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information
of the entities within the Group to express an opinion on the financial
statements.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the financial statements.
We communicate with those charged with governance of the Company and such
other entities included in the financial statements of which we are the independent
auditors 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 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.
4. Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by
the Central Government of India in terms of section (11) of section 143 of the
Companies Act, 2013 we give in the "Annexure-A" a statement on the matters
specified in the paragraphs 3 and 4 of the Order, to the extent applicable.
ii. As required by section 143(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit of the afore
said financial statements;
b. In our opinion proper books of account as required by law relating to preparation
of the afore said financial statements have been kept by the Company so far as
appears from our examination of those books.
c. The Balance Sheet, Statement of Profit and Loss (including other comprehensive
Income), Statement of changes in equity and Statement of Cash Flow dealt with
by this Report are in agreement with the relevant books of account maintained
for the purpose of preparation of the financial statements.
d. In our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards specified under section 133 of the Act, read with the Rule 7
of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors as on March
31, 2024, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 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 over financial
reporting of the Company and the operating effectiveness of such controls, refer
to our separate report in "Annexure B"; Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of internal financial controls
over financial reporting of those companies.
g. With respect to the other matters to be included in the Auditor's Report in
accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors
during the year is in accordance with the provisions of section 197 of the Act.
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 accordance to the explanation
given to us:
i. The company does not have any pending litigations which would impact its
financial position.
ii. The company did not have any long term contracts including derivative
contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. (a) The respective Managements of the Company, whose financial statements
have been audited under the Act, have represented to us that, to the best of
their knowledge and belief, no funds (which are material either individually or
in the aggregate) 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 or in any other person or entity, including foreign entity
("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 or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(b) The respective Managements of the Company, whose financial statements
have been audited under the Act, have represented to us that, to the best of
their knowledge and belief, no funds (which are material either individually or in
the aggregate) have been received by the Company from any person or entity,
including foreign entity ("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 by
or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances performed by us on the Company whose
financial statements have been audited under the Act, 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 (a) and (b) above, contain any
material misstatement.
V. In Our Opinion and according to the information and explanation given to us,
the company has not declare any dividend.
VI. Based on our examination which included test checks, the company has used
an accounting software for maintaining its books of account which has a
feature of recording audit trail facility enabled and the same was operated
throughout the year for all relevant transactions recorded in the software.
For, S. D. Mehta & Co.
Chartered Accountants
(Registration No. 137193W)
Date: 27th May, 2024
Place: Ahmedabad
Shaishav D. Mehta
Partner
M.No.: 032891
UDIN:24032891BKAFZR2567
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