I have audited the accompanying standalone financial
statements of Izmo Limited ('the Company'), which comprise
the balance sheet as at March 31, 2025, 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 ended, and a summary of significant accounting policies
and other explanatory information (hereinafter referred to as
"the standalone financial statements").
In my opinion and to the best of my information and according
to the explanations given to me, 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 Indian
Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, ("Ind AS") and the other accounting
principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2025, and its profit and total
comprehensive income, changes in equity and its cash flows
for the year ended on that date.
Basis for Opinion
I have conducted my audit of the standalone financial
statements in accordance with the standards on Auditing
("SA"s) specified under section 143(10) of the Act . My
responsibilities under those standards are further described in
the Auditor's Responsibilities for the Audit of the standalone
financial statements section of my report. I am 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
my audit of the standalone financial statements under the
provisions of the Act and the Rules made thereunder, and I have
fulfilled my other ethical responsibilities in accordance with
these requirements and the ICAI's code of ethics. I believe that
the audit evidence I have obtained is sufficient and appropriate
to provide a basis for my opinion on the standalone financial
statements.
Key Audit Matters
Key audit matters ('KAM') are those matters that, in my
professional judgment, were of most significance in my audit
of the standalone financial statements of the current period.
These matters were addressed in the context of my audit of
the standalone financial statements as a whole, and in forming
my opinion thereon, and I do not provide a separate opinion on
these matters. I have determined the matters described below
to be the key audit matters to be communicated in my report.
Description of Key Audit Matter
Evaluation of uncertain tax positions
The Company has material uncertain tax positions including
matters under dispute which involves significant judgement to
determine the possible outcome of these disputes Refer Notes
2(i), 41 & 43 to the Standalone Financial Statements.
Auditor's Response
• Obtained details of completed tax assessments and
demands for the year ended March 31, 2025, from
management.
• Read and analyzed selected key correspondences,
external legal opinions / consultations by management
for key uncertain tax positions.
• Discussed with appropriate senior management and
evaluated management's underlying key assumptions
in estimating the tax provisions; and
• Assessed management's estimate of the possible
outcome of the disputed cases.
Emphasis of Matter
As more fully described in Note. 41 & 43 to the Standalone
Financial Statements and in Point 1 of Key Audit Matters, The
Company is responding to inquiries from Indian regulatory
authorities. The scope, duration or outcome of these matters
are uncertain.
My opinion is not modified in respect of this matter.
Information Other than the Standalone
Financial Statements and Auditor's Report
Theron
The Company's management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Company's annual
report but does not include the standalone financial statements
and my auditor's report thereon.
My opinion on the standalone financial statements does not
cover the other information and I do not express any form of
assurance conclusion thereon.
In connection with my audit of the standalone financial
statements, my 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 my knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work I have performed, I conclude that there
is a material misstatement of this other information, I am
required to report that fact. I have nothing to report in this
regard.
Management's Responsibility 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, including other
comprehensive income, changes in equity and cash flows 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.
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 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 and 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 management 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 Responsibility for the Audit of
the Standalone Financial Statements.
My 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 my
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, I exercise
professional judgment and maintain professional skepticism
throughout the audit. I 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 my 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 control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, I am also responsible for
expressing my opinion on whether the company has
adequate internal financial controls with reference
to standalone financial statements 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
I conclude that a material uncertainty exists, I am
required to draw attention in my auditor's report to
the related disclosures in the standalone financial
statements or, if such disclosures are inadequate,
to modify my opinion. My conclusions are based on
the audit evidence obtained up to the date of my
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. I consider quantitative
materiality and qualitative factors in (i) planning the scope of
my audit work and in evaluating the results of my work; and
(ii) to evaluate the effect of any identified misstatements in
the standalone financial statements.
I 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 I identify
during my audit.
I also provide those charged with governance with a
statement that I 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 my independence, and
where applicable, related safeguards.
From the matters communicated with those charged
with governance, I 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. I describe these matters in my auditors'
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
I determine that a matter should not be communicated
in my 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 (Auditors' Report) Order,
2020 ("the Order") issued by the Central Government
of India in terms of Section 143(11) of the Act, I give
in "Annexure A" 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, I report that:
a) I have sought and obtained all the information and
explanations which to the best of my knowledge
and belief were necessary for the purposes of my
audit.
b) In my opinion, proper books of account as required
by law have been kept by the Company so far as
it appears from my examination of those books
except for the matters stated in paragraph (vi) of (i)
below on reporting under Rule 11(g).
c) The Balance Sheet, the 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 my opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards prescribed under Section 133 of the
Act.
e) On the basis of the written representations received
from the directors of the company as on March 31,
2025 taken on record by the Board of Directors,
none of the directors are disqualified as on March
31, 2025 from being appointed as a director in terms
of Section 164 (2) of the Act.
f) The modifications relating to the maintenance of
accounts and other matters connected therewith
are as stated in the paragraph 2 above on reporting
under Section 143(3)(b) and paragraph (vi) below on
reporting under Rule 11(g).
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 my separate report in "Annexure
B". My 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 the
requirements of section 197(16) of the Act, as
amended:
In my opinion and to the best of my information
and according to the explanation given to me, the
remuneration paid by the company to its directors
during the year is in accordance with the provisions
of Section 197 of the Act.
i) 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 my opinion and to the best of my
information and according to the explanations given
to me.
As required by Section 143(3) of the Act, I report
that:
i. The Company has disclosed the impact of pending
litigations as at 31st March 2025 on its financial
position in its financial statements - Refer Note 41
and 43 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, as disclosed
in the note 48(a) 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 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;
(b) The Management has represented, that, to the
best of its knowledge and belief, as disclosed
in the note 48(b) 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 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 my
notice that has caused me 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 my 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 accounting software, as
described in note 49 to the standalone financial
statements. Further, during the course of my
audit I did not come across any instance of audit
trail feature being tampered with in respect of
the accounting software and payroll software.
Ramaswamy Vijayanand
Chartered Accountant
M. No : 202118
Place : Bangalore
Date : 30th May 2025
UDIN : 25202118BMIAAY6543
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