You are here » Home » Companies » Company Overview » Intellect Design Arena Ltd

Intellect Design Arena Ltd.

BSE: 538835 Sector: IT
NSE: INTELLECT ISIN Code: INE306R01017
BSE 00:00 | 12 Aug 611.90 -6.00
(-0.97%)
OPEN

621.05

HIGH

623.35

LOW

608.75

NSE 00:00 | 12 Aug 610.95 -7.35
(-1.19%)
OPEN

618.80

HIGH

624.15

LOW

608.40

OPEN 621.05
PREVIOUS CLOSE 617.90
VOLUME 8219
52-Week high 986.00
52-Week low 564.00
P/E 43.83
Mkt Cap.(Rs cr) 8,266
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 621.05
CLOSE 617.90
VOLUME 8219
52-Week high 986.00
52-Week low 564.00
P/E 43.83
Mkt Cap.(Rs cr) 8,266
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Intellect Design Arena Ltd. (INTELLECT) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

INTELLECT DESIGN ARENA LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofIntellect Design Arena Limited ("the Company") which comprise the Balance sheetas at March 31 2022 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone financial statements including a summaryof significant accounting policies and other explanatory information. In our opinion andto the best of our information and according to the explanations given to us theaforesaid standalone financial statements give the information required by the CompaniesAct 2013 as amended ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the‘Auditor's Responsibilities for the Audit of the Standalone FinancialStatements' section of our report. We are independent of the Company in accordancewith the ‘Code of Ethics' issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 31 2022. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context. We havedetermined the matters described below to be the key audit matters to be communicated inour report.

We have fulfilled the responsibilities described in the Auditor'sresponsibilities for the audit of the standalone financial statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying standalone financial statements.

Key audit matters How our audit addressed the key audit matter
Accounting for revenue from Licenses and Services contracts Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
We focused on revenue from license and services contract because of its significance and its risks related to judgements involved in the measurement timing and presentation/disclosure of revenue from operations. a) We read the Company's revenue recognition policy and related disclosures. We performed walkthroughs of each significant class of revenue transactions and assessed and tested the design effectiveness and operating effectiveness for key controls.
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. b) For revenue from license contracts where control is transferred at a point in time we tested license revenue deals in excess of a certain threshold and a random sample of smaller contracts. For each of the sample selected we performed the following:
Read the customer contract and obtained evidence of license software delivery.
Read the contracts and assessed potential impact of any unusual clause on revenue recognition. Tested the fair value allocations between the various elements of the contract in accordance with Company's revenue recognition policy.
We performed cut off procedures by reference to the contract and evidence of delivery.
Refer Notes 3(j) to the Standalone financial Statements
c) For licenses and services where control is transferred over a period of time we tested a sample of transactions to test revenue recognised in the year was calculated based on the stage of completion of the contract.
We selected a sample of contracts and performed a retrospective review of efforts incurred with estimated efforts to identify significant variations possible delays in achieving milestones and verified whether those variations have been considered in estimating the remaining efforts to complete the contract. When needed we also inquired with service project managers to understand the progress difficulties associated with implementation if any and likely impact on the future effort estimates.
We performed other substantive transactional testing journal entry testing and analytical procedures to validate the recognition of revenue throughout the year.
Capitalization and valuation of Intangible Asset and Intangible asset under development Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
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. a) Read the Company's accounting policies for compliance with IND AS and on a sample basis tested available documentation to consider whether the criteria for capitalization were met.
b) We performed walkthroughs of Intangible assets/Intangible assets under development process and assessed the design effectiveness and operating effectiveness for key controls.
c) Performed tests of details on a sample of capitalized costs in the current year and obtained evidence to verify whether the costs qualify for capitalization.
In addition determining whether there is any indication of impairment of the carrying value of assets requires management judgment and assumptions which are affected by future market or economic developments including uncertainty arising from the possible impact from COVID 19. We analyzed this evidence and evaluated whether it reflects the use of the asset for the Company and the Company's intention to complete the capitalized projects.
Refer Notes 3(g) to the Standalone financial Statements d) We evaluated the assumptions and methodology used by the Company to test the Intangible asset and Intangible asset under development for impairment.
e) We tested the amortization charge and estimate of useful life of Intangible asset.
f) We assessed the disclosures made by the Company in this connection in the accompanying financial statements.
Recoverability of accounts receivables and accrued revenue balances Our audit approach was a combination of test of Internal controls and Substantive procedures which included the following:
We focused on this risk as the balances are material and there are significant judgments involved in assessing recoverability of accounts receivables and accrued revenue balances. a) We obtained management's analysis on recoverability of accounts receivables and accrued revenue balances for all significant cases. This analysis includes background information of the customer existing contractual relationships balance outstanding delays in collection and operational reasons and summaries of discussions with customers and collection plans together with a detailed legal analysis where applicable.
There are many factors that need to be considered when concluding that a balance needs to be impaired including default or delinquency in payments length of the outstanding balances implementation difficulties and possible effect on collections consequent to COVID -19. b) We tested the ageing of accounts receivables accrued revenue balances and circularized confirmations on selected material customer balances and checked subsequent collections from recoverability perspective. We have performed test of alternate nature in cases where confirmation has not been responded to by the customer.
Given the complexity the size and the length of certain implementation projects there is risk that a provision is not recognized in a timely or sufficient manner. c) In addition we evaluated the recoverability of accounts receivable and accrued revenue selected balances (significant and randomly selected) through discussions with project managers and with senior management when necessary.
Refer to note 3(u) of the Standalone financial statements. d) We assessed the disclosures made by the Company in this connection in the accompanying financial statements.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone financial statements and our auditor'sreport thereon. Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether such other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic 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 maintainprofessional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements for the financial year ended March 31 2022 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest 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 of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen 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 theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year endedMarch 31 2022 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in theAuditor'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 tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements Refer Note 33 to the standalonefinancial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

iv. a) The management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the company toor in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on such audit procedures that were considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.

v. As stated in note 14 (f) to the standalone financial statements theBoard of Directors of the Company have proposed final dividend for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The dividenddeclared is in accordance with section 123 of the Act to the extent it applies todeclaration of dividend.

Annexure 1 referred to in paragraph 1 of the section "Report onother legal and regulatory requirements" of our report of even date

Re: Intellect Design Arena Limited ("Company")

(i) (a)(A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property plant andequipment.

(B) The Company has maintained proper records showing full particularsof intangible assets.

All Property plant and equipment have not been physically verified bythe management during the year but there is a regular programme of verification which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

According to the information and explanations given by the managementthe title deeds of immovable properties included in property plant and equipment(including Right of use assets and other than properties where the Company is the lesseeand the lease agreements are duly executed in favour of the lessee) are held in the nameof the Company.

According to the information and explanations given by the managementthe Company has not revalued its Property Plant and Equipment (including Right of useassets) or intangible assets during the year ended March 31 2022.

According to the information and explanations given by the managementthere are no proceedings initiated or are pending against the Company for holding anybenami property under the Prohibition of Benami Property Transactions Act 1988 and rulesmade thereunder.

(ii)(a) The Company's business does not require maintenance ofinventories and accordingly the requirement to report on clause 3(ii)(a) of the Order isnot applicable to the Company.

(ii)(b) The Company has not been sanctioned working capital limits inexcess of Rs. five crores in aggregate from banks or financial institutions during anypoint of time of the year on the basis of security of current assets. Accordingly therequirement to report on clause 3(ii)(b) of the Order is not applicable to the Company.

(iii)(a) According to the information and explanations given by themanagement during the year the Company has not provided loans advances in the nature ofloans stood guarantee or provided security to companies firms Limited LiabilityPartnerships or any other parties. Accordingly the requirement to report on clause3(iii)(a) of the Order is not applicable to the Company.

(iii)(b) According to the information and explanations given by themanagement during the year the investments made guarantees provided security given andthe terms and conditions of the grant of all loans and advances in the nature of loans andguarantees to companies firms Limited Liability Partnerships or any other parties arenot prejudicial to the Company's interest.

(iii)(c) According to the information and explanations given by themanagement the Company has not granted loans and advances in the nature of loans tocompanies firms Limited Liability Partnerships or any other parties. Accordingly therequirement to report on clause 3(iii)(c) of the Order is not applicable to the Company

(iii)(d) According to the information and explanations given by themanagement the Company has not granted loans or advances in the nature of loans tocompanies firms Limited Liability Partnerships or any other parties. Accordingly therequirement to report on clause 3(iii)(d) of the Order is not applicable to the Company.

(iii)(e) According to the information and explanations given by themanagement there were no loans or advance in the nature of loan granted to companiesfirms Limited Liability Partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(e) of the Order is not applicable to the Company.

(iii)(f) According to the information and explanations given by themanagement the Company has not granted any loans or advances in the nature of loanseither repayable on demand or without specifying any terms or period of repayment tocompanies firms Limited Liability Partnerships or any other parties. Accordingly therequirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanationsgiven to us there are no loans investments guarantees and security in respect of whichprovisions of sections 185 and 186 of the Companies Act 2013 are applicable andaccordingly the requirement to report on clause 3(iv) of the Order is not applicable tothe Company.

(v) The Company has neither accepted any deposits from the public noraccepted any amounts which are deemed to be deposits within the meaning of sections 73 to76 of the Companies Act and the rules made thereunder to the extent applicable.Accordingly the requirement to report on clause 3(v) of the Order is not applicable tothe Company.

(vi) The Company is not in the business of sale of any goods orprovision of such services as prescribed. Accordingly the requirement to report on clause3(vi) of the Order is not applicable to the Company.

(vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including goods and services tax provident fundemployees' state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other statutory dues applicable to it. According tothe information and explanations given to us and based on audit procedures performed byus no undisputed amounts payable in respect of these statutory dues were outstanding atthe year end for a period of more than six months from the date they became payable.

(vii) (b) According to the information and explanations given to usthe dues of goods and services tax provident fund employees' state insuranceincome-tax sales-tax service tax duty of custom duty of excise value added tax cessand other statutory dues have not been deposited on account of any dispute are asfollows:

Name of the statute Nature of the dues Amount (INR millions) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 45.20 FY 2001-02 Commissioner Appeal
FY 2002-03
FY 2005-06
Income Tax Act 1961 Income Tax 27.15 FY 2005-06 High Court
Value added Tax Vat 2.40 FY 2016-17 Sales Tax Officer
Finance Act 1994 Service Tax 758.80** FY 2014-15 Principle Commissioner*
FY 2015-16
FY 2016-17A
FY 2017-18

* The assessee is in process of filing an appeal. ** The amount is netoff penalty and interest.

(viii) According to the information and explanations given to us theCompany has not surrendered or disclosed any transaction previously unrecorded in thebooks of account in the tax assessments under the Income Tax Act 1961 as income duringthe year. Accordingly the requirement to report on clause 3(viii) of the Order is notapplicable to the Company.

(ix)(a) According to the information and explanations given to us theCompany has not defaulted in repayment of loans or other borrowings or in the payment ofinterest thereon to any lender.

(ix)(b) According to the information and explanations given to us theCompany has not been declared wilful defaulter by any bank or financial institution orgovernment or any government authority.

(ix)(c) According to the information and explanations given to us theCompany did not have any term loans outstanding during the year hence the requirement toreport on clause (ix)(c) of the Order is not applicable to the Company.

(ix)(d) According to the information and explanations given to us theCompany did not raise any funds during the year hence the requirement to report on clause(ix)(d) of the Order is not applicable to the Company.

(ix)(e) On an overall examination of the standalone financialstatements of the Company the Company has not taken any funds from any entity or personon account of or to meet the obligations of its subsidiaries associates or jointventures.

(ix)(f) According to the information and explanations given to us theCompany has not raised loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies. Hence the requirement to report onclause (ix)(f) of the Order is not applicable to the Company.

(x)(a) According to the information and explanations given to us theCompany has not raised any money during the year by way of initial public offer / furtherpublic offer (including debt instruments) hence the requirement to report on clause3(x)(a) of the Order is not applicable to the Company.

(x)(b) According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares /fully orpartially or optionally convertible debentures during the year under audit and hence therequirement to report on clause 3(x)(b) of the Order is not applicable to the Company.

(xi)(a) According to the information and explanations given to us nofraud/ material fraud by the Company or no fraud / material fraud on the Company has beennoticed or reported during the year.

(xi)(b) During the year no report under sub-section (12) of section143 of the Companies Act 2013 has been filed by cost auditor/ secretarial auditor or byus in Form ADT 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

(xi)(c) As represented to us by the management there are no whistleblower complaints received by the Company during the year.

(xii)(a) In our opinion the Company is not a nidhi Company as per theprovisions of the Companies Act 2013. Therefore the requirement to report on clause3(xii)(a) of the Order is not applicable to the Company.

(xii)(b) The Company is not a nidhi Company as per the provisions ofthe Companies Act 2013. Therefore the requirement to report on clause 3(xii)(b) of theOrder is not applicable to the Company.

(xii)(c) The Company is not a nidhi Company as per the provisions ofthe Companies Act 2013. Therefore the requirement to report on clause 3(xii)(c) of theOrder is not applicable to the Company.

(xiii) As represented to us by the management transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the notes to the standalone financialstatements as required by the applicable accounting standards.

(xiv)(a) As represented to us by the management the Company has aninternal audit system commensurate with the size and nature of its business.

(xiv)(b) The internal audit reports of the Company issued till the dateof the audit report for the period under audit have been considered by us.

(xv) As represented to us by the management the Company has notentered into any non-cash transactions with its directors or persons connected with itsdirectors and hence requirement to report on clause 3(xv) of the Order is not applicableto the Company.

(xvi)(a) The provisions of section 45-IA of the Reserve Bank of IndiaAct 1934 (2 of 1934) are not applicable to the Company. Accordingly the requirement toreport on clause (xvi)(a) of the Order is not applicable to the Company.

(xvi)(b) As represented to us by the management the Company has notconducted any Non-Banking Financial or Housing Finance activities without obtained a validCertificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bankof India Act 1934.

(xvi)(c) To the best of our knowledge the Company is not a CoreInvestment Company as defined in the regulations made by Reserve Bank of India.Accordingly the requirement to report on clause 3(xvi)(c) of the Order is not applicableto the Company.

(xvi)(d) As represented to us by the management there is no CoreInvestment Company as a part of the Group hence the requirement to report on clause3(xvi)(d) of the Order is not applicable to the Company.

(xvii) The Company has not incurred cash losses in the current year andin the immediately preceding financial year respectively.

(xviii) There has been no resignation of the statutory auditors duringthe year and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company.

(xix) On the basis of the financial ratios disclosed in note 43 to thestandalone financial statements ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that Company is not capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.

(xx)(a) In respect of other than ongoing projects there are no unspentamounts that are required to be transferred to a fund specified in Schedule VII of theCompanies Act (the Act) in compliance with second proviso to sub section 5 of section 135of the Act. This matter has been disclosed in note 41 to the standalone financialstatements.

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF INTELLECT DESIGN ARENA LIMITED

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference tostandalone financial statements of Intellect Design Arena Limited ("theCompany") as of March 31 2022 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to these standalone financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to these standalone financial statements was establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to these standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone financialstatements assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to these standalone financial statements.

Meaning of Internal Financial Controls with Reference to theseStandalone Financial Statements

A company's internal financial controls with reference to thesestandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples.

A company's internal financial controls with reference to standalonefinancial statements includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference tothese Standalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to these standalone financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls with reference to standalone financial statements to future periods aresubject to the risk that the internal financial control with reference to standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statements wereoperating effectively as at March 31 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Srinivas S
Partner
Membership Number: 213722
UDIN: 22213722AIKYYB1492
Place of Signature: Chennai
Date: May 5 2022

.