We have audited the accompanying Standalone Ind AS Financial Statements of Elnet
Technologies Limited (“the Company”), which comprise the Balance sheet as at March 31,
2025, the Statement of Profit and Loss (including the statement of Other Comprehensive
Income), the Cash Flow Statement and the Statement of Changes in Equity for the year ended
on that date, and notes to the Standalone Ind AS 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 Ind AS 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 Indian accounting standards prescribed under section 133
of the act read with companies ( Indian accounting standards ) Rules, 2015 as amended and
other accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31,2025, its profit including other comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the
Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities
under those Standards are further described in the Auditors’ Responsibilities 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 standalone Ind AS
Financial Statements under the provisions of the Act and the Rules 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 obtained by us is sufficient and appropriate
to provide a basis for our audit opinion on the standalone Ind AS Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the Standalone Ind AS Financial Statements for the financial year ended March
31,2025. These matters were addressed in the context of our audit of the standalone Ind AS
Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Recognition, Valuation and Presentation of provision and contingent liabilities:
Refer Note 35 to financial statement for the year ended March 31,2025 for the following:
a) The claims made by Electronics Corporation of Tamilnadu Limited (ELCOT) against
the Company towards interest on delayed payments for lease deposits relating to the
years from 2000-01 to 26th Oct 2023, have been disclosed as Contingent Liability by the
Company which amounts to Rs 1,385.72 Lakhs.
b) The Company has received a service tax demand from Additional Commissioner of GST
and Central Excise for Rs. 136.59 Lakhs on considering reimbursement of electricity
charges as taxable charges for period October 2015 to June 2017, have been disclosed
as Contingent Liability by the Company.
Since there are potential exposure of the Company, on the above contingent liabilities,
the assessment of the probability of occurrence, outflow, if any, and adequate disclosure
requirements involves significant judgment by the management.
Due to the significance of amounts involved and the level of judgments relating to recognition,
valuation and presentation of provision and contingent liabilities, this has been considered as
a key audit matter.
How the Key Audit Matter was addressed in our audit
Our audit procedure in respect of this area included the following:
• Tested the design, implementation and operative effectiveness of controls with respect
to identification and monitoring of significant developments in relation to the litigations,
including completeness thereof.
• Engaged in discussion with legal and finance departments of the Company on the status
of ongoing and potential legal matters and its possible outcome and valuation as assessed
by the management.
• Evaluated the management’s assessment about the outcome of the dispute.
• Reviewed the legal opinion obtained, third party correspondence and reports with respect
to these matters.
• Assessed the reasonableness of management’s judgment with respect to the likelihood of
outflow.
• Assessed the adequacy of the disclosures made in the notes to financial statement.
Information Other than the Standalone Ind AS Financial Statementsand Auditors’ Report
Thereon
The Company’s Board of Directors is responsible for the other information. The other information
comprises the information included in the Management report, Chairman’s statement, Board’s
report including the Annexures to Board’s report and Director’s report along with annexures but
does not include the Standalone Ind AS Financial Statements and our auditors’ report thereon.
Our opinion on the Standalone Ind AS 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 Ind AS Financial Statements, our responsibility
is to read the other information and, in doing so, consider whether such other information is
materially inconsistent with the Standalone Ind AS Financial Statements or our knowledge
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.
Responsibilities of Management and Those Charged with Governance for the 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 including other comprehensive
income, cash flows and changes in equity 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 read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended. 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 judgements 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 Ind
AS 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 Ind AS Financial Statements, Board of directors 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.
Auditors’ Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS
Financial Statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors’ 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 Ind AS Financial Statements.
A further description of the auditor’s responsibilities for the audit of the standalone Ind AS
Financial Statements is included in “Annexure A”. This description forms part of our auditor’s
report.
Emphasis of Matter
We draw attention to Note No. 6 in the Standalone Ind AS Financial Statements of the company
wherein the Unquoted equity shares of IG3 Infra Ltd had to be valued at fair value as at the end
of each financial year.
These shares were not revalued for this year and the same FMV was adopted from the FY 21¬
22. There will be no substantial effect that cause the standalone Ind AS Financial Statements
to be materially misstated due to this non-compliance and our opinion is not modified in respect
of this matter.
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 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;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Cash Flow Statement and Statement of Changes
in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone Ind AS 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 March
31,2025 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31,2025 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 with reference to these
Standalone Ind AS Financial Statements and the operating effectiveness of such
controls, refer to our separate Report in “Annexure C” to this report;
(g) 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(16) of the Act.
(h) With respect to the other matters to be included in the Auditors’ Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 Ind AS Financial Statements- Refer Point b) in Note 35
to the Ind AS financial statements
ii. The Company did not have any long-term contracts including derivative contracts
to 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. a) Management has represented that, to 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 or entity , including foreign entities (“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.
b) Management has represented , that , to the best of its knowledge and belief,
no funds have been received by the company from any person or entity ,
including foreign entities (“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 ; and
c) Based on our audit procedures which we have considered reasonable and
appropriate in the circumstances and according to the information and
explanation provided to us by the management in this regard, nothing has
come to our notice that has caused them to believe that the representations
made by the management under sub- clause (i) and (ii), contain any material
mis-statement.
v. Final dividend proposed in the previous year, declared and paid by the company
during the year is in compliance with section 123 of Act, as applicable.
vi. Based on our examination, which included test checks, the Company has used
accounting software systems for maintaining its books of account for the financial
year ended March 31,2025 which have the feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software systems. Further, during the course of
our audit we did not come across any instance of the audit trail feature being
tampered with and the audit trail has been preserved by the Company as per the
statutory requirements for record retention.
For Selvam & Suku,
Chartered Accountants
Firm Registration No: 003701S
Date: 13.05.2025 P. Nivetha
Place: Chennai Partner
M. No:268215
UDIN: 25268215BMUKEH5832
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