We have audited the accompanying standalone
financial statements of SAVEN TECHNOLOGIES
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 on that date and
a summary of significant 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, 2025 and its profit, total comprehensive income,
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 ("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.
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.
Key Audit Matter
Revenue recognition - Fixed price contracts using the
percentage of completion method
The company recognized the revenues from software
related services on the basis of services rendered
as per the terms of the contracts entered into with
the customers, where the performance obligations
are satisfied over time is recognized using the
percentage of-completion method.
Use of the percentage-of-completion method requires
the Company to determine the actual efforts or costs
expended to date as a proportion of the estimated
total efforts or costs to be incurred. The estimation
of total efforts or costs involves significant judgment
and is assessed throughout the period of the contract
to reflect any changes based on the latest available
information. Provisions for estimated losses, if any,
on uncompleted contracts are recorded in the period
in which such losses become probable based on the
estimated efforts or costs to complete the contract.
We identified the estimate of total efforts or costs to
complete fixed price contracts measured using the
percentage of completion method as a key audit matter
as the estimation of total efforts or costs involves
significant judgment and is assessed throughout the
period of the contract to reflect any changes based
on the latest available information. This estimate
requires consideration of progress of the contract,
efforts or costs incurred to-date and estimates of
efforts or costs required to complete the remaining
contract performance obligations over the term of the
contracts.
This required a high degree of auditor judgment in
evaluating the audit evidence and a higher extent of
audit effort to evaluate the reasonableness of the
total estimated amount of revenue recognized on fixed-
price contracts.
Refer Notes 2.8 to the standalone financial
statements.
Auditor's Response
Principal Audit Procedures Performed
Our audit procedures related to estimates of total
expected costs or efforts to complete for fixed-price
contracts included the following, among others:
• We tested the effectiveness of controls relating to
(1) recording of costs incurred and estimation of
costs required to complete the remaining contract
performance obligations and (2) access and
application controls pertaining to time recording,
allocation and budgeting systems which prevents
unauthorized changes to recording of efforts incurred.
• We selected a sample of fixed price contracts
with customers measured using the percentage-
of-completion method and performed the following:
- Evaluated management's ability to reasonably
estimate the progress towards satisfying the
performance obligation by comparing actual costs
incurred to prior year estimates of costs budgeted
for performance obligations that have been fulfilled.
- Compared costs incurred with Company's estimate
of costs incurred to date to identify significant
variations and evaluate whether those variations
have been considered appropriately in estimating
the remaining costs to complete the contract.
- Tested the estimate for consistency with the status
of delivery of milestones and customer
acceptances and sign off from customers to identify
possible delays in achieving milestones, which
require changes in estimated costs or efforts to
complete the remaining performance obligations.
Information Other than the 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 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 consolidated financial
statements, 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 Responsibilities 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, including other 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 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.
The management is responsible for ensuring that the
accounting software used has the feature of Audit
Trial that captures the changes to each and every
transaction of Books of accounts. Also ensure that the
Audit Trial feature is always enabled at the database
level and protected from any modification through
implementing controls. Ensure that Audit Trial is retained
as per statutory requirements for record retention
through periodic backups.
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 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 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,
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 the
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 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 in terms of Section 143(11) of the Act,
we give in "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based
on our audit 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 Other Comprehensive Income,
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.
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 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.
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 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 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. There are no Pending Litigation which would
impact Financial Position of the company in its
Financial Statements.
ii. The Company has made provision, as required
under the applicable law or accounting
standards, for material foreseeable losses, if
any, on long-term contracts including derivative
contracts.
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) 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;
(b) 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;
(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.
(d) Based on our examination which includes
test checks, the Company, in respect of
financial year commencing on 1st April 2024,
has used an accounting software for
maintaining its books of account which has
a feature recording audit trail (edit log) facility
and the same has been 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, in respect of the
accounting software where such feature
is enabled and the audit trial has been
preserved by the company as per the
statutory requirements for record retention.
v. The dividend declared or paid during the year
by the Company is incompliance with Section
123 of the Act.
For Suryanarayana & Suresh.,
Chartered Accountants
Firm Reg. No: 006631S
P. Muralikrishna
Place: Hyderabad Partner
Date : May 14, 2025 Membership No.224319
UDIN : 25224319BMKUUB3831
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