We have audited the accompanying standalone
financial statements of Exicom Tele-Systems Limited
("the Company"), which comprise the Balance Sheet
as at March 31, 2026, the Statement of Profit and
Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of
Cash Flows for the year then ended, and notes to the
standalone financial statements, including a summary
of material 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 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, 2026, and its profit ( including
other comprehensive income), changes in equity and its
cash flows for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the standalone financial
statements in accordance with the Standards on
Auditing ("SA"s) 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 ethical requirements that are relevant
to our audit of the standalone 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 standalone financial statements.
3. 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
financial year ended March 31, 2026. 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
matter described below to be the Key audit matter that
to be communicated in our report.
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S.
No.
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Key Audit Matters
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Auditor's Response
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1.
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Revenue recognition
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Our audit procedure involves the following activities:
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Revenue from the sale of goods is recognized at the
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• We assessed the appropriateness of the revenue
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moment when control has been transferred to the
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recognition accounting policies by comparing with
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customer and is measured net of trade discounts,
rebates and pricing allowances to customers.
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applicable accounting standards
• We tested on a sample basis, key customer
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The timing of revenue recognition is relevant to the
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contracts to identify terms and conditions relating to
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reported performance of the Company. Revenue
recognition has been identified as a key audit matter as
there could be incentives or external pressures to meet
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transfer of control.
• We performed substantive testing by selecting
samples of revenue transactions recorded during
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expectations resulting in revenue being recognized
before control has been transferred.
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the year by testing the underlying documents which
included invoices, good dispatch notes, customer
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(Refer Note 4.11 and 35 to the Standalone Financial
Statements.)
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acceptances and shipping documents (as applicable).
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• We carried out analytical procedures on
revenue recognised during the year to identify
unusual variances.
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S.
No.
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Key Audit Matters
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Auditor's Response
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• We tested, on a sample basis, specific revenue
transactions recorded closer to the year end and after
the financial year end date to determine whether the
revenue had been recognised in the appropriate period.
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2.
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Recoverability relating to Goods and Services Tax
recoverable:
As at March 31, 2026, under other current assets,
indirect taxes recoverable include H 9,588.71 Lakhs
in respect of GST Input Tax credit receivable. The
Company has accounted for input tax credit on
material and services received from suppliers and is
carrying out continuous process of reconciliation. We
focused on management's estimate of getting input
tax credit which involves significant reconciliation.
(Refer Note 23 to the Standalone Financial Statements.)
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Our audit procedure involves the following activities:
• Assessing and updating our understanding of internal
control over financial reporting with respect to
recording of invoices of suppliers
• Reviewing the management continuing process for
reconciliation, updation and follow up with the vendors.
• We have relied upon the management's assessment.
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3.
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Allowance of trade receivables / Credit Losses:
The company has a concentration of credit exposure
on a number of major customers, mainly Government
and large organization.
The Trade receivables is a significant item in the
Company's standalone financial statements
amounting to H 34,169.66 Lakhs as of March 31, 2026,
and provisions for impairment of receivables is an area
which is influenced by management's estimates and
judgment. The provision for impairment of receivables
amounted to H 307.20 Lakhs as at March 31, 2026.
(Refer Note 12 and 17 to the Standalone Financial
Statements.)
As detailed in Note 58 to the standalone financial
statements, the management reviews and assesses
the recoverability of the carrying value of all overdue
trade receivables individually by considering the
credit history including default or delay in payments,
settlement records and subsequent settlements.
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Our audit procedures involve the following activities:
• Understanding how provision for impairment of
receivables is estimated by the management;
• Testing the subsequent settlements of trade
receivables, on a sample basis, to the source
documents including bank statements.
• Discussing with the management and evaluating
the basis of trade receivables that are overdue and
without / with little settlements subsequent to the end
of the reporting period identified by the management
and their assessment on the recoverability of overdue
trade receivables.
• Computation of the allowance for expected credit losses
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4. Information Other than the Standalone
Financial Statements and Auditor's Report
Thereon
The Company's Board of Directors is responsible for
the other information. The other information comprises
the information included in the annual Report but does
not include the standalone financial statements and
our auditor's report thereon. The other information
comprising the above documents is expected to be made
available to us after the date of this auditor's report.
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.
5. 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 Act
with respect to the preparation of these standalone
financial statements that give a true and fair view
of the financial position, financial performance, total
comprehensive income, changes in equity and cash
flows of the Company in accordance with the Ind AS
and other accounting principles generally accepted in
India. 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 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.
The Board of Directors are also responsible for overseeing
the Company's financial reporting process.
6. 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 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.
Materiality is the magnitude of misstatements in the
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.
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 for the financial year ended March
31, 2026 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.
7. Report on Other Legal and RegulatoryRequirements
A. 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 Order, to the
extent applicable.
B. As required by Section 143(3) of the Act, we report,
to the extent applicable, 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 Other Comprehensive
Income, the Statement of Changes in Equity
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 Ind AS
specified under Section 133 of the Act, read
with relevant rules issued thereunder;
(e) On the basis of the written representations
received from the directors as on March
31, 2026 taken on record by the Board of
Directors, none of the directors is disqualified
as on March 31, 2026 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";
(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 explanation given to
us, the remuneration paid / provided 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, 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 financial
statements- Refer Note 50 to the
standalone financial statements;
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 Management has represented
that, to the best of its knowledge
and belief, other than as disclosed
in the Note 75 (xv) to the
Standalone Financial Statements,
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(s) or entity(ies), including
foreign entity(ies) ("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) The Management has represented,
that, to the best of its knowledge
and belief, as disclosed in the Note
75 (xvi) to the Standalone Financial
Statements, no funds (which are
material either individually or in the
aggregate) have been received by
the Company from any person(s)
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;
(c) 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
(a) and (b) above, contain any
material misstatement.
v. The Company has not declared or paid
any dividend during the year.
vi. 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 March 31, 2026 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. Further, during
the course of our audit we did not come
across any instance of the audit trail
feature being tampered with. Additionally,
the audit trail has been preserved by
the Company as per the statutory
requirements for record retention.
For Khandelwal Jain & Co.
Chartered Accountants
Firm Registration No: 105049W
Ravi Dakliya
Partner
Place: Gurugram Membership No. 304534
Date: May 19, 2026 UDIN: 26304534UGCAVE4504
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