Happy Square Outsourcing Services Limited
(Formerly known as Happy Square Outsourcing Services Private Limited)
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Happy Square Outsourcing Services Limited (formerly known as Happy Square Outsourcing Services Private Limited) (“the Company”), .which comprise the Balance Sheet as at 31 March 2026, the Statement of Profit and Loss the Statement of Cash Flows for the year then ended, and the notes to the Standalone Fmancia Statements, including a summary ofsignifica.it accounting policies 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 Standalone Financial Statements give the information required by the Companies Act, 2013 as amended (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with the Companies
(Accounts) Rules, 2014..."
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 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 m accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India toge ler with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions ofithe Companies Act, 2013 and the Rules thereunder, and we have fu filled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. e believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Key Audit Matter
Capitalisation of Internally Developed HR Software and Data Library (Refer Note 26(8) to the Standalone Standalone Financial Statements)
During the year, the Company capitalised expenditure incurred on the development of internally generated HR Software and Data Library as intangible assets. The recognition of these assets involved significant management judgement in assessing compliance with the recognition criteria prescribed under AS 26 - Intangible Assets, including feasibility report, future economic benefits, identification of directly attributable development costs, useful life and impairment assessment.
Considering the significance of the amount capitalised and the judgement involved, this matter was considered to be a Key Audit Matter.
How our audit addressed the matter
Our audit procedures included evaluating the Company's accounting policy, reviewing the feasibility report and project completion documents, testing the expenditure capitalised on a sample basis, assessing management's evaluation of future economic benefits, useful life and impairment, and evaluating the adequacy of the related financial statement disclosures.
Information Other than the Standalone Financial Statements and Auditor's Report Thereon:-
1. The Company’s Board of Directors are responsible for the other information. The other information comprises the information included in the Board s report, including Annexure to Board's Report, but doesn’t include the standalone Standalone Financial Statements and our auditor’s report thereon.
2. Our opinion on the standalone Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
3. In connection with our audit of the standalone 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 course of our audit or otherwise appears to be materially misstated.
4. If, based on the work we have performed, we conclude that there is a material misstatement in the other information, we are required to report that fact. We have nothing to report in this regard
Management’s Responsibility for the Standalone Financial Statements
1. The Company’s Board of Directors are 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 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 Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
2. In preparing the Standalone Financial Statements, management is responsible for assessing the Company's ability to continue as a going concern and, where applicable, disclosing matters relating 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."
3. 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
1. 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.
2. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
3. 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.
4. 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 Companies Act
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2013, 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.
5. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
6. 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.
7. 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.
8. Materiality is the magnitude of misstatements in the Standalone Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone 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 Standalone Financial Statements.
9. 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.
10. We also provide those charged with governance with a statement that we have complied with lelevant 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.
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 Companies Act, 2013, we give in the Annexure “A”, a statement on the matters specified in paragraphs 3 and 4 of the 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 purpose 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.
c) The Balance Sheet, the Statement of Profit and Loss and the Statement of Cash Flows 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 Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from 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) Reporting 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 the Company’s internal Financial control over Financial reporting.
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 read with Schedule V 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, 2020, in our opinion and to the best of our information and according to the explanations given to us:
i There are no pending litigations as on 31st March 2026 which have a material impact on the Financial position on the operations of the company.
ii The company did not have any long-term contracts including derivative contracts for which there were any 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 management has represented that, to the best of its knowledge and belief, as disclosed note 29 (xi) to the accounts 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 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 performed that have been 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 (i) and (ii) of rule 11(e) of the companies (Audit and Auditors) rules, 2014 contain any material mis-statement.
v. No dividend has been declared or paid during the year by the company.
vi .The reporting under Rule 11(g) of the Company (Audit and Auditors) Rules, 2014 is applicable from 01st April, 2023. 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 and the same has operated throughout the year for all relevant transactions recorded in the software. We did not come across any instance of the audit trail feature being tampered with.
For Jyoti Asrani & Associates Chartered Accountants FRN: 010126C
Pqer Review Certificate No.iQI6774
CA Jyoti Asrani . . '
Partner MN: 079966
LDIN No.: 26079966ZXHRYN4457 Date: 03 June, 2026 Place: Jabalpur
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