We have audited the accompanying standalone
financial statements of Dolat Algotech Limited
('the company'), which comprise the balance sheet
as at 31 March 2025, and the Statement of Profit and
Loss (including Other Comprehensive Income), the
cash flow statement and the Statement of changes
in Equity for the year then ended, and 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 give the
information required by the 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 and its profit, total comprehensive
income, the 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 independence requirements
that are relevant to our audit of the standalone
financial statements under the provisions of the Act
and the Rules made there under, 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 we have obtained is
sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.
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 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 the matters
described below to be the key audit matters to be
communicated in our report.
Accounting and Valuation of Bank Deposits
The Company's investment under Bank Deposits
grouped under Other Financial Assets as on
31/03/2025 amount to '9613.55/- millions which
comprises 84.94 % of total assets of the Company.
Considering the high value of this item of asset it has
been considered as a key audit matter.
How our audit addressed the key audit matter
• We obtained an understanding of the internal
controls designed by the management for
accounting and valuation and tested the operating
effectiveness of these controls.
• We undertook substantive audit procedures like
inspection, recalculation and reperformance.
• We performed procedures to identify
encumbrances on these investments and verified
sufficiency and appropriateness of disclosures
regarding the same.
• We performed procedures to verify adherence to
IND-AS.
Key audit Matter - Valuation of Financial Instruments
The derivative financial assets amount to '434.82
millions and derivative financial liabilities amount
to '153.57 millions. We focused on this because of
the number of contracts, their measurement and the
complexity related to fair value estimation.
How our audit addressed the key audit matter
• We obtained an understanding of management's
process and evaluated design and tested operating
effectiveness of controls around existence and
measurement of derivative financial instruments.
• Reconciling derivative financial instruments data
with data received from independent third parties.
• Considering the appropriateness of disclosures
in relation to financial risk management and
derivative financial instruments.
INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITORS REPORT
THEREON
The Company's Board of Directors is responsible
for the preparation of the other information. The
other information comprises the information
included in the Management Discussion and Analysis,
Board's Report including Annexures to Board's
Report, Business Responsibility Report, Corporate
Governance and Shareholder's Information, 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 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.
MANAGEMENT'S RESPONSIBILITY FOR THE
STANDALONE 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
and presentation of these standalone financial
statements that give a true and fair view of the
financial position, financial performance including
other comprehensive income, cash flows and changes
in the equity of the Company in accordance with the
accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules,
2015.
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 applications of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent;
and the 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.
In preparing the standalone financial statements,
management is 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. Those 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.
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 controls.
• 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 ability of the company 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.
• Obtain sufficient appropriate audit evidence
regarding the standalone financial information of
business activities within the company to express
an opinion on the standalone financial statements.
We are responsible for the direction, supervision
and performance of the audit of the standalone
financial statements of such entities.
We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.
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
paragraphs 3 and 4 of the Order.
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 sub-clause (2)(h)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014;
c. The balance sheet, statement of profit and
loss including other comprehensive income,
statement of changes in equity and the cash
flow statement 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 Indian
Accounting Standards specified under section
133 of the Act.
e. On the basis of the written representations
received from the directors as on 31 March
2025, taken on record by the Board of
Directors, none of the directors is disqualified
as on 31 March 2025, from being appointed as
a director in terms of section 164(2) of the Act;
f. With respect to the maintenance of accounts
and other matters connected therewith,
reference is made to our remarks in paragraph
2(h)(vi) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules,
2014 (as amended).
g. 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 controls over financial
reporting.;
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 does not have any pending
litigations which would impact its financial
position.
ii. The Company did not have any long term
contract including derivative contract; as
such the question of commenting on any
material foreseeable losses thereon does
not arise;
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company.
iv. (i) The Management has represented that,
to the best of its 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
to or in any other person or entity, including
foreign entity (“Intermediaries”), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall
whether, 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;
(ii) The Management has represented, that,
to the best of its 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, whether, 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;
(iii) Based on the audit procedures 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), as provided under
IV(i) and IV(ii) above, contain any material
misstatement.
v. The dividend declared and paid during the
year by the Company is in compliance with
Section 123 of the Act.
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 and
the same has operated throughout the year
for all relevant transactions recorded in the
software, except that audit trail feature is not
enabled for direct changes in the database
layer.
Further, during the course of our audit we
did not come across any instance of audit
trail feature being tampered with, in respect
of accounting software(s) where the audit
trail has been enabled. 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 the respective
years.
i. With respect to the matter to be included in
the Auditor’s Report under Section 197(16) of
the Act:
In our opinion and according to the information
and explanations given to us, the remuneration
paid by the Company to its directors during
the current year is in accordance with the
provisions of Section 197 of the Act read with
schedule V of the Act. The Ministry of Corporate
Affairs has not prescribed other details under
Section 197(16) of the Act which are required
to be commented upon by us.
UDIN: 25164370BMIEJW5301 For V. J. Shah & Co.
Chartered Accountants
Firm Registration No.: 109823W
Chintan V. Shah
Place: Mumbai Partner
Date: 29th May, 2025 Membership No.: 164370
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