You are here » Home » Companies » Company Overview » IRIS Business Services Ltd

IRIS Business Services Ltd.

BSE: 540735 Sector: IT
NSE: N.A. ISIN Code: INE864K01010
BSE 00:00 | 23 Sep 109.15 5.15
(4.95%)
OPEN

105.00

HIGH

109.15

LOW

103.50

NSE 05:30 | 01 Jan IRIS Business Services Ltd
OPEN 105.00
PREVIOUS CLOSE 104.00
VOLUME 20000
52-Week high 147.55
52-Week low 25.65
P/E 63.09
Mkt Cap.(Rs cr) 210
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 105.00
CLOSE 104.00
VOLUME 20000
52-Week high 147.55
52-Week low 25.65
P/E 63.09
Mkt Cap.(Rs cr) 210
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IRIS Business Services Ltd. (IRISBUSINESS) - Auditors Report

Company auditors report

To the Members of

IRIS Business Services Limited

Report on the Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying Standalone Financial Statements of IRIS BusinessServices Limited (‘the Company') which comprise the Balance Sheet as at March 312021 the statement of Profit and Loss and the Statement of Cash Flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (standalone financial statements).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 (‘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 2021 and its profit and its cash flowsfor the year ended on that date.

Basis for Opinion

2. We conducted our audit in accordance with the Standards on Auditing("SAs") specified under Section 143(10) of the Act. Our responsibilities underthose SAs are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements Section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (‘ICAI') together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules thereunder; andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Emphasis of Matter

3. Attention is invited to Note No. 34 to the Standalone Financial Statements regardinginvestment in a subsidiary IRIS Business Services LLC carried at cost despite theliabilities thereof exceeding the total assets having regards to business plans of thatsubsidiary and continued financial support from the Company. Our report is not modified inrespect of this matter.

4. Attention is invited to Note No. 36 to the Standalone Financial Statements regardingthe uncertainties arising out of the outbreak of COVID-19 pandemic and the assessment madeby the management on its operations and financial reporting for the year ended March 312021; such an assessment as made by the management is dependent on the circumstances asthey evolve in the subsequent periods. Our report is not modified in respect of thismatter.

Key Audit Matters

5. Key audit matters ("KAM") are those matters that in our professionaljudgment were of most significance in our audit of the Standalone Financial Statementsfor the year under audit. These matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. In our professional judgement we have decided thefollowing to be the key audit matter to be communicated in our report:

Sr.No. KAM and the basis for considering it so. How the KAM is addressed in the audit
1 Impairment of Intangibles: Our audit tests include as under:
As on March 31 2021 Company's Intangibles Assets are measured at Rs 1201.38 Lakhs which includes capitalized software / application development costs. The Company is required to review these for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable and at least annually review whether there is any change in their expected useful lives. Based on the recoverable amount determined of the underlying assets supported by value-in-use calculations which are based on estimates of future discounted cash flows management concluded that there are no indications of impairment in its intangible and other assets. We obtained management's future cash flow forecasts and assessed the methodology of determination of future cash flows to obtain understanding of the usage of asset and impairment model
The assessments made by management involves significant estimates and judgments including sales growth rates gross profit margin net profit margin and perpetual growth rates used to estimate future cash flows and discount rates applied to these forecasted future cash flows. These estimates and judgments may be affected by unexpected changes in future market or economic conditions or discount rates applied. Tested the arithmetical accuracy of the underlying value-in-use calculations.
Considering the use of such signification estimates and judgements testing of Impairment of Intangibles is identified as Key Audit Matter. Assessed the reasonableness of key assumptions used in the calculations comprising sales growth rates gross profit margin net profit margin perpetual growth rate and discount rates. When assessing these key assumptions we discussed with management to understand and evaluate management's basis for determining such assumptions.
Evaluated management's assessment on whether any events or change in circumstances indicate there may be a change in the expected useful lives of intangible assets.
Performing sensitivity analysis on revenue growth assumptions to assess the impact on forecasted cashflows.
Tested sensitivity analysis of potential revenue growth under each of the operating segments.
Obtained suitable representations from the management pertaining to key estimates.

Information Other than the Financial Statements and Auditor's Report Thereon

6. The Company's Management and Board of Directors are responsible for the preparationof the other information comprising of the information included in the ManagementDiscussion and Analysis Directors' Report including Annexures to Directors' ReportCorporate Governance and such other disclosures related Information excluding theStandalone Financial Statements and auditors report thereon (‘Other Information').

The other information is expected to be made available to us after the date of thisauditors' report. Our opinion on the Standalone financial statements does not cover theother information and we do not express any form of assurance or conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information when it becomes available and in doing so considerwhether the other information is materially inconsistent with the Standalone FinancialStatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated. When we read the other Information and if we conclude thatthere is a material misstatement therein we are required to communicate the matter tothose charges with governance as required under SA 720 ‘The Auditor'sresponsibilities Relating to other Information'.

Responsibility of Management for Standalone Financial Statements

7. The Company's Management and the Board of Directors are 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 and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under prescribedSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Financial Statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements Management and Board of Directors areresponsible 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.

The Company's Management and Board of Directors are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

8. Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements. Our audit process inaccordance with the SAs is narrated in Annexure 1 to this report.

Other Matters

9. In view of restricted movements and partial lockdown imposed by the Authorities toprevent the spread of COVID-19 Pandemic the processes of audit finalisation were carriedout from remote locations i.e. other than the Office of the Company where books ofaccounts and other records are kept based on the data/details made available and based onfinancial information/ records remitted by the management through digital medium. Beingconstrained we resorted to and relied upon the results of the related alternate auditprocedures to obtain sufficient and appropriate audit evidence for the significant mattersin course of our audit. Our report is not modified in respect of this matter.

10. The comparative financial information of the company for the year ended March 312020 included in the Standalone Financial Statements had been audited by the erstwhileauditors who had expressed an unmodified opinion thereon as per their reports dated June29 2020 have been relied upon by us for the purpose of our audit of the StandaloneFinancial Statements. Our opinion in not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

11. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of sub-Section (11) of Section 143 ofthe Act we give in the Annexure 2 a statement on the matters specified in paragraphs 3and 4 of the Order.

12. As required by Section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The Balance Sheet the Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 3 of theCompanies (Accounting Standards) Rules 2015. e. On the basis of the writtenrepresentations received from the directors as on March 31 2021 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2021 from beingappointed as a director in terms of Section 164 (2) of the Act. f. With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in Annexure 3.g. In terms of provisions of Section 197(16) of the Act as per the information andexplanations given we report that the managerial remuneration paid by the Company to itsDirectors is in accordance with provisions of Section 197 of the Act. h. With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us we report as under: (i) Therewere no pending litigations which would materially impact company's financial position;(ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; (iii) There were no amounts which wererequired to be transferred to the Investor Education and Protection Fund by the Company.

For Khimji Kunverji & Co LLP
Chartered Accountants
Firm's Registration No.: 105146W/W100621
Hasmukh B. Dedhia
Partner
Place: Mumbai Membership No.: 033494
Date: May 22 2021 UDIN: 21033494AAAAGV8464

Annexure 1 to the Independent Auditors' Report to the members of IRIS Business ServicesLimited

[referred to in para 8 titled ‘Auditor's Responsibilities for the Audit of theStandalone Financial Statements']

As part of our audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error to 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 in order todesign 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 hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

• Communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

• From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our Auditor's Report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Annexure 2 to the Independent Auditors' Report to the members of IRIS Business ServicesLimited

[referred to in para 11 under ‘Report on Other Legal and Regulatory Requirements']i. (a) According to information and explanation given to us the Company has generallymaintained proper records showing full particulars including quantitative details andsituation of its fixed assets.

(b) As informed to us fixed assets were physically verified by the Management atregular intervals. In our opinion the frequency of physical verification is reasonablehaving regard to the size of the Company and nature of its business; according to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company. ii. The Company is engaged in the businessof providing services in connection with XBRL and XBRL Conversion development andmaintenance of websites supply of software & providing software-related services.Accordingly it does not hold any physical inventories. Consequently the clause 3(ii) ofOrder pertaining to Inventories is not applicable to the Company. iii. According to theinformation and explanation given to us the Company has not granted any loans secured orunsecured during the year under report to Companies Firms Limited Liability Partnershipor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013 (‘the Act'). Accordingly clause 3(iii) of the Order is not applicable. iv.According to the information and explanations given to us the Company has not granted anyloans or provided any guarantees or securities covered under Section 185 and 186 of theAct. v. In our opinion and according to the explanations given to us the Company has notaccepted any deposits during the year. Therefore question of reporting compliance withdirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Act and rules framed thereunder does not arise. Weare informed that no order relating to the Company has been passed by the Company lawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal. vi. According to the information and explanations given to us the CentralGovernment has not prescribed the maintenance of cost records under Section 148(1) of theCompanies Act 2013 for any of any activities / services rendered by the company.Accordingly clause 3(vi) of the Order is not applicable. vii. In respect of Statutorydues: (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Income-taxSales-tax Service tax Goods and Service Tax Cess and other material statutory duesgenerally have been regularly deposited during the year by the Company with theappropriate authorities. There are no undisputed statutory dues payable in respect to theabove statues outstanding as at March 31 2021 for a period of more than six months fromthe date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of Income Tax Sales TaxService tax Goods and Service Tax and Value added tax which have not been deposited as onMarch 31 2021 on account of disputes. viii. According to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tobanks. The Company has not issued any debenture. ix. According to the information andexplanations given to us Company did not raise any money by way of initial public offer(including debt instruments) and loans. Hence clause (ix) of clause 3 of the Order is notapplicable. x. During the course of our examination of the books of account and records ofthe Company and according to information and explanation given to us we have neithernoticed nor have been informed by the management any incidence of fraud by the Company oron the Company by its officers or employees. xi. According to the information andexplanations give to us and based on our examination of the records of the Company theCompany has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act. xii.According to the information and explanations given to us the Company is not a Nidhicompany. Accordingly clause (xii) of the Order is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Financial Statements as required underapplicable Accounting Standards. xiv. According to the information and explanations givento us and based on our examination of the records of the Company it has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause (xiv) of the Order is not applicable tothe Company. xv. According to the information and explanations given to us and based onour examination of the records of the company it has not entered into non-cashtransactions with directors or persons connected with them. Accordingly reporting underclause (xv) of the Order is not applicable to the Company.

xvi. According to the information and explanations given to us the company is notrequired to be registered under Section 45IA of the Reserve Bank of India Act 1934.

For Khimji Kunverji & Co LLP
Chartered Accountants
Firm's Registration No.: 105146W/W100621
Hasmukh B. Dedhia
Partner
Place: Mumbai Membership No.: 033494
Date: May 22 2021 UDIN: 21033494AAAAGV8464

Annexure 3 to the Independent Auditors' Report to the members of IRIS Business ServicesLimited

[referred to in paragraph 12(f ) under ‘Report on Other Legal and RegulatoryRequirements']

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of IRISBusiness Services Limited (‘the Company') as at March 31 2021 in conjunction withour audit of the Standalone AS Financial Statements of the Company for the year ended onthat date.

Opinion

In our opinion considering the nature and size of the operations the Company has inall material respects an adequate internal financial controls system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at March 31 2021 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that: (a) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company.

(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone Financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (c)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

For Khimji Kunverji & Co LLP
Chartered Accountants
Firm's Registration No.: 105146W/W100621
Hasmukh B. Dedhia
Partner
Place: Mumbai Membership No.: 033494
Date: May 22 2021 UDIN: 21033494AAAAGV8464

.