We have audited the accompanying standalone financial statements of Intellect Design Arena Limited (“the Company"), which comprise the Balance Sheet as at March 31, 2026,
and 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 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 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 loss, 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 SAs 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 together with the ethical requirements that are relevant to our aud it of
the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 opin ion 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.
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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Accounting for License and Implementation Contracts:
Revenue from License and Implementation Contracts were
considered significant because of its pervasive impact on the
financial statements and risk related to management judgments
involved in identification of various performance obligation, fair
value allocation of transaction price to all performance
obligation measurement, timing and presentation/disclosure of
Revenue from Operations
The Company enters into contracts with its customers that may
include multiple performance obligations. For these contracts,
the Company assesses the performance obligations and
accounts for those obligations separately if they are distinct. The
identification and the allocation of the transaction price to the
different performance obligations and the appropriateness of
the basis used to measure revenue recognised at a point in time
or over a period, require management to use significant
judgement and estimates.
Refer to note 3(k) to the Standalone Financial Statements
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Our audit procedures include the following:
1. Obtained an understanding of the systems, processes and controls over revenue measurement and
recognition, including associated contract assets and liabilities, and assessed the Company's
accounting policy against Ind AS 115.
2. Conducted walkthroughs of each significant class of revenue transactions and assessed the
effectiveness of relevant controls.
3. For point-in-time revenue (license contracts), on a sample basis: evaluated the identification of
distinct performance obligations and transaction price allocation; verified recognition only upon
satisfaction of all obligations; examined proof of delivery; reviewed unusual contract clauses; and
performed cut-off procedures.
4. For over-time revenue (implementation contracts), on a sample basis: assessed the appropriateness
and reasonableness of fair value allocation of the percentage-of-completion method; evaluated
transaction price allocation; examined stage-of-completion breakups at activity level; tested
consistency in estimating progress; and recomputed revenue recognised based on allocated price and
completion percentage.
5. Assessed the adequacy of disclosures in accordance with Ind AS 115.
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Capitalization and Valuation of Intangible Assets and
Intangible Asset under Development:
Intangible Asset and Intangible asset under development are
deemed significant to our audit, as specific criteria that need to
be met for capitalization. This involves management judgment,
such as technical feasibility, intention and ability to complete
the intangible asset, ability to use or sell the asset, generation
of future economic benefits and the ability to measure the
costs reliably.
In addition, determining whether there is any indicator of
impairment of the carrying value of asset, requires
management judgement and assumptions which are affected
by future market or economic developments.
Refer to note 3(g) and 3(i) to the Standalone Financial
Statements
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Our audit procedures include the following:
1. Obtained an understanding of the systems, process and controls implemented by management for
recording and measuring Intangible Asset and Intangible Asset under development.
2. Read through the Company's accounting policy and related disclosures and assessed in line with
applicable Indian Accounting Standards.
3. Assessed design, implementation and operating effectiveness of key controls in respect of recognition
and classification of development expenditure, and evaluation of existence of any impairment
4. On Sample basis, validated the measurement principles and accuracy of cost capitalised and
reasonableness of same and management intention to complete the capitalised projects.
5. We evaluated the assumptions and methodology used by the Company to test the Intangible asset
and Intangible asset under development for impairment.
6. Tested the amortisation charge and estimate of useful life of Intangible asset.
7. Assessed and validated the adequacy and appropriateness of the disclosures made by the
management in the financial statements
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Recoverability of Accounts Receivables and Contract Asset
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Our audit procedures include the following:
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Recoverability of account receivables and contract assets are
considered material and there are significant judgments
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1.
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We obtained an understanding of the processes and controls established by management for the
measurement and recognition of the expected credit loss (ECL) allowance.
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involved in assessing recoverability and recognition of
expected credit loss allowance for accounts receivables and
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2.
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We examined the appropriateness of management's measurement and recognition of the ECL
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contract asset balances.
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allowance and assessed the reasonableness of the underlying recoverability analysis for accounts
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Significant judgements are involved in concluding that a
balance needs to be impaired including default or delinquency
in payments, length of the outstanding balances and
implementation difficulties. Given the complexity, the size and
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receivables and accrued revenue balances across all significant cases. Our assessment considered
factors including historical collection trends, customer background and profile, existing contractual
arrangements, outstanding balances, delays in collections, operational considerations, summaries of
customer discussions, collection plans, and detailed legal analysis where relevant.
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the length of certain implementation projects, there is risk that
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3.
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We independently recomputed the ageing of accounts receivables and accrued revenue balances,
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a provision is not recognised in a timely or sufficient manner.
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circularised balance confirmations on a random sample basis, and verified subsequent collections to
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Refer note 3 (t) of the Standalone Financial Statements.
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assess recoverability. Where customers did not respond to confirmation requests, we performed
alternative audit procedures to satisfy ourselves on the balances.
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4.
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We evaluated the recoverability of selected accounts receivable and contract asset balances by
engaging in discussions with project managers and, where considered necessary, with senior
management.
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5.
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We assessed and validated the adequacy and appropriateness of the related disclosures presented
by management in the financial statements to ensure compliance with applicable financial reporting
standards.
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Information Other than the Standalone 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 Director's report,
Business Responsibility and Sustainability Reporting, Management Discussion and Analysis, Report on Corporate Governance and General Shareholders Information etc, but does
not include the standalone financial statements and our auditor's report thereon, The Company's annual report 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 identified above and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Company's Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with
governance and take necessary actions, as applicable under the relevant laws and regulations
Responsibilities of Management and Board of Directors for the Standalone 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 standalone financial
statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Indian 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 of 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 statement 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, the 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.
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 assura nce 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.
We give in “Annexure A" a detailed description of Auditor's responsibilities for Audit of the Standalone Financial Statements.
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 “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 of the
aforesaid standalone financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid standalone financial statements 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 maintained for the purpose of preparation of the standalone financial statements.
(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
(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 are
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 with reference to standalone financial statements of the Company and the operating effectiveness of
such controls, refer to our separate Report in “Annexure C".
(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit a nd Auditors) Rules, 2014, 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 32 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 has been no delay in transferring amounts, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2026.
iv.
a. The Management has represented that, to the best of it's knowledge and belief, as disclosed in note 45 to the standalone financial statements, 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(s) or entity(ies), 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 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 it's knowledge and belief, as disclosed in the note 45 to the standalone financial statements, no
funds have been received by the Company from any person(s) or entity(ies), 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 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 performed that have been considered reasonable and appropriate in 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) contain any material mis-statement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies
Act 2013 to the extent it applies to payment of dividend.
The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General
Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend. (Refer Note 13 to the Standalone
financial statements).
vi. Based on our examination, which included test checks, the Company has used two accounting software's for maintaining its book s of account and for recording
revenue 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 audit trail feature being tampered with. Additionally, the audit trail of
prior years has been preserved by the Company as per the statutory requirements for record retention to the extent it was ena bled in previous years.
3. In our opinion, according to information, explanations given to us , the remuneration paid or provided by the Company to its directors is within the limits laid prescribed
under Section 197 of the Act.
For M S K C & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 001595S/S000168
Geetha Jeyakumar
Partner
Membership No. 029409
UDIN: 26029409JANKPX8394
Place of Signature: Chennai
Date: May 08, 2026
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