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IRIS Business Services Ltd.

BSE: 540735 Sector: IT
NSE: IRIS ISIN Code: INE864K01010
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OPEN 82.65
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VOLUME 6726
52-Week high 148.25
52-Week low 66.55
P/E 73.08
Mkt Cap.(Rs cr) 158
Buy Price 0.00
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OPEN 82.65
CLOSE 82.20
VOLUME 6726
52-Week high 148.25
52-Week low 66.55
P/E 73.08
Mkt Cap.(Rs cr) 158
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IRIS Business Services Ltd. (IRIS) - 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 Ind AS Financial Statements of IRISBusiness Services Limited ("the Company") which comprise the standalone balancesheet as at 31 March 2022 and the standalone statement of profit and loss (includingother comprehensive income) standalone statement of changes in equity and standalonestatement of cash flows for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation (the "Standalone Financial Statements").

2. 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 ("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 31 March 2022 and its profit and othercomprehensive income changes in equity and its cash flows for the year then ended.

Basis for Opinion

3. 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 ouraudit of the Standalone Financial Statements under the provisions of the Act and therules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on theStandalone Financial Statements.

Emphasis of Matter

4. Attention is invited to Note No. 5(a) to the Standalone Financial Statementsregarding investment in a subsidiary IRIS Business Services LLC and Atanou S.r.l. arecarried at cost despite the liabilities thereof exceeding the total assets having regardsto business plans of that subsidiary and continued financial support from the Company.

5. Attention is invited to Note No. 37 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 31 March2022; such an assessment as made by the management is dependent on the circumstances asthey evolve in the subsequent periods. Our opinion is not modified in respect of the abovematters.

Key Audit Matters

6. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current year.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Key Audit Matter How the matter was addressed in our audit
Impairment of Intangibles: Our audit tests include as under:
As on 31 March 2022 Company's Intangibles Assets are measured at 73313 thousand 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 • 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
• Tested the arithmetical accuracy of the underlying value-in- use calculations.
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. •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.
Considering the use of such signification estimates and judgements testing of Impairment of Intangibles is identified as Key Audit Matter. •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.
•Obtained suitable representations from the management pertaining to key estimates.

Other Information

7. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Company's annual report but does notinclude the Standalone Financial Statements and our auditors' report thereon. The OtherInformation is expected to be made available to us after the date of this auditor'sreport.

8. Our opinion on the Standalone Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

9. In connection with our audit of the Standalone Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact.

Management's responsibility for the Standalone Financial Statements

10. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the state of affairs profit and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian accountingstandards ("Ind AS") specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating 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.

11. In preparing the Standalone Financial Statements the management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe management either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. 12. The Board of Directors is also responsible foroverseeing the Company's financial reporting process.

Auditor's responsibilities for the audit of the Standalone Financial Statements

13. 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.

14. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: 14.1. Identify and assessthe risks of material misstatement of the Standalone Financial Statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

14.2. 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)the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to Standalone Financial Statements inplace and the operating effectiveness of such controls.

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

14.4. Conclude on the appropriateness of the management's use of the going concernbasis 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 Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

14.5. 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.

15. We 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.

16. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

17. 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 year and are therefore the key audit matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

18. 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 A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable. 19. Asrequired by Section 143(3) of the Act we report that: 19.1. We have sought and obtainedall the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit.

19.2. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

19.3. The standalone balance sheet the standalone statement of profit and lossincluding other comprehensive income the statement of changes in equity and thestandalone cash flow statement dealt with by this Report are in agreement with the booksof account.

19.4. In our opinion the aforesaid Standalone Financial Statements comply with the IndAS specified under Section 133 of the Act.

19.5. On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 from being appointed as a director in terms of Section164(2) of the Act. 19.6. With respect to the adequacy of the internal financial controlswith reference to Standalone Financial Statements of the Company and the operatingeffectiveness of such controls refer to our separate

Report in "Annexure B".

19.7. In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act.

20. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

20.1. The Company does not have any pending litigations which would impact itsfinancial position. The Company has disclosed the impact of pending litigation as at 31March 2022 on its financial position in the Standalone Financial Statements. Refer NoteNo. 33 to the Standalone Financial Statements.

20.2. The Company has made provision as required under the applicable law or Ind ASfor material foreseeable losses if any on long-term contracts including derivativecontracts.

20.3. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

20.4. The management has represented to us to the best of their knowledge that nofunds (which are material either individually or in aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries. Based on reasonable audit procedures adoptedby us nothing has come to our notice that such representation contains any materialmisstatement.

20.5. The management has also represented to us to the best of their knowledge thatno funds (which are material either individually or in aggregate) have been received bythe Company from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries. Based on reasonable audit procedures adopted by usnothing has come to our notice that such representation contains any materialmisstatement.

20.6. The Company has not declared and paid any dividend in the current year and hasnot proposed dividend for the current year and hence reporting as per the provisions ofSection 123 of the Act is not applicable to the company.

For KKC & Associates LLP
Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621
Hasmukh B. Dedhia
Partner
Place: Mumbai ICAI Membership No: 033494
Date: May 27 2022 UDIN: 22033494AJSLFQ8397

Annexure "A" to the Independent Auditor's Report on the Standalone FinancialStatements of IRIS Business Services Limited for the year ended 31 March 2022

(Referred to in paragraph 18 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) i.

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment ("PPE").

The Company is maintaining proper records showing full particulars of intangibleassets.

(b) The Company has a regular programme of physical verification of its PPE by whichall PPE are verified in a phased manner at regular interval. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme certain PPE werephysically verified by the management during the year. In our opinion and according tothe information and explanations given to us no material discrepancies were noticed onsuch verification.

(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 Company does not possessany such immovable properties (other than properties where the Company is the lessee andthe lease agreements are duly executed in favour of the lessee). Accordingly theparagraph 3(ii)(a) of the Order pertaining to Inventories is not applicable to theCompany.

(d) In our opinion and according to the information and explanations given to us theCompany has not revalued its PPE (including Right of Use assets) or intangible assets orboth during the year.

(e) 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 no proceedings have beeninitiated or are pending against the Company for holding any benami property under theBenami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

ii. (a) The Company is engaged in the business of providing services in connection withXBRL and XBRL Conversion development and maintenance of websites supply of software& providing software-related services.

Accordingly it does not hold any physical inventories. Accordingly the paragraph3(ii)(a) of the Order pertaining to Inventories is not applicable to the Company.

(b) The Company has been sanctioned working capital loan in excess of rupees fivecrore in aggregate from bank on the basis of security of current assets. According tothe information and explanations given to us no requirements were stipulated under therenewal credit arrangement letter for submission of any returns of statements pertainingto security cover details and accordingly no quarterly returns or statements were filed bythe Company with the Bank during the year under report.

iii. (a) In our opinion and according to the information and explanations given to usthe Company has not made investments in or provided any guarantee or security in thenature of loans secured or unsecured to companies firms Limited Liability Partnershipsor any other parties during the year. During the year under report the Company hasgranted unsecured advances in nature of loan to employees the details of which arematerial in the following table:

(Amount in thousands - Rs)

Particulars Guarantees Security Loans Advances in the nature of loans
Aggregate amount granted/ provided during the year
Subsidiaries - - - -
Joint Ventures - - - -
Associates - - - -
Others (employees) - - - 895
Balance outstanding as at balance sheet date in respect of above cases
Subsidiaries - - - -
Joint Ventures - - - -
Associates - - - -
Others (employees) - - - 287

(b) In our opinion and according to the information and explanations given to us termsand conditions of the grant of all loans and advances provided to the employees are notprejudicial to the Company's interest.

(c) In our opinion and according to the information and explanations given to us inrespect of loans to employees the schedule of repayment of principal and payment ofinterest has been stipulated and the repayments or receipts are generally regular duringthe year.

(d) In our opinion and according to the information and explanations given to us Noamount is overdue in respect advances in the nature of loans given to employees.

(e) In our opinion and according to the information and explanations given to usneither loans have been renewed or extended nor any fresh loans have been granted tosettle the overdue of existing loans.

(f) The Company has not granted any loans or advances in the nature of loans toPromoters/Related Parties (as defined in section 2(76) of the Act which are eitherrepayable on demand or without specifying any terms or period of repayment.

iv. In our opinion and according to the information and explanations given to us theCompany has not granted any loans or given any guarantee or provided any securities ascovered under the provisions of sections 185 and 186 of the Act. In respect of theinvestments made by the Company the provisions of sections 185 and 186 of the Act havebeen complied with.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits or amounts which are deemed to be deposits from thepublic during the year in terms of directives issued by the Reserve Bank of India or theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under. Accordingly paragraph 3(v) of the Order is not applicable to theCompany.

vi. The maintenance of Cost Records has not been specified by the Central Governmentunder section 148(1) of the Act for the business activities / services carried out by theCompany.

Accordingly paragraph 3(vi) of the Order is not applicable to the Company.

vii. (a) In our opinion and according to the information and explanations given to usamounts deducted/accrued in the books of account in respect of undisputed statutory duesincluding Goods and Services Tax provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues have been regularly deposited by the Company with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax Goods andServices Tax duty of customs cess and other material statutory dues were in arrears asat 31 March 2022 for a period of more than six months from the date they became payable.

(b) In our opinion and according to the information and explanations given to us weconfirm that the following statutory dues have not been deposited to/with the appropriateauthority on account of any dispute.

(Amount in thousands - Rs)

Name of the Statute Nature of the Dues Amount Period to which the amount relates Forum where dispute is pending Remarks if any
Employee's Provident Funds & Miscellaneous Provisions Act 1952 Provident Fund 174 FY 2005 to FY 2007 Honorable High Court of Bombay

viii. In our opinion and according to the information and explanations given to us andon the basis of our examination of the records of the Company we confirm that we have notcome across any transactions not recorded in the books of account which have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961.

ix. (a) In our opinion the Company has not defaulted in repayment of loans or otherborrowings to banks or in the payment of interest thereon. The Company has not taken anyloan from Financial Institutions government or debenture holders during the year.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared wilful defaulter by anybank or financial institution or government or any government authority or any otherlender.

(c) In our opinion and according to the information and explanations given to us theCompany has not taken any term loan during the year. Accordingly paragraph 3(ix)(c)of theOrder is not applicable to the Company.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the Standalone Financial Statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanations given to us and on an overallexamination of the Standalone Financial Statements of the Company we report that theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries.

x. (a) The Company did not raise money by way of initial public offer or further publicoffer (including instruments) during the year.

(b) The Company has not made any preferential allotment / private placement of shares /fully / partly / optionally convertible debentures during the year.

xi. (a) In our opinion and according to the information and explanations given to usthere has been no fraud by the Company or any fraud on the Company that has been noticedor reported during the year.

(b) In our opinion and according to the information and explanations given to us noreport under sub-section (12) of section 143 of the Act has been filed by the auditors inForm ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 withthe Central Government.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

xii. (a) In our opinion and according to the information and explanations given to usthe Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

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 by theapplicable accounting standards.

xiv. (a) In our opinion and based on our examination the Company has an internal auditsystem commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.

xv. According to the information and explanations given to us in our opinion duringthe year the Company has not entered into any non-cash transactions with its directors orpersons connected with its directors. Hence provisions of section 192 of the Act 2013 arenot applicable to the Company. Accordingly paragraph 3(xv) of the Order is not applicableto the Company and

xvi. (a) In our opinion the Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Orderis not applicable to the Company.

(b) The Company has not conducted any Non-Banking Financial or Housing Financeactivities. Accordingly paragraph 3(xvi)(b) of the Order is not applicable to theCompany.

(c) The Company is not a CIC as defined in the Core Investment Companies (Reserve Bank)Directions 2016. Accordingly paragraph 3(xvi)(b) of the Order is not applicable to theCompany.

(d) In our opinion there is no core investment Company within the Group as defined inthe Core Investment Companies (Reserve Bank) Directions 2016.

Accordingly paragraph 3(xvi) (d) of the order is not applicable to the Company.

xvii. The Company has not incurred any cash losses in the financial year and in theimmediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year andaccordingly the paragraph 3(xviii) of the Order is not applicable.

xix. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the Standalone FinancialStatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that the Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance 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) According to information and explanations given to us and based on ourexamination of the records of the Company section 135 is not applicable. Accordinglyparagraph 3(xx)(a) of the Order is not applicable to the Company.

(b) There are no ongoing projects towards CSR during the year. Accordingly paragraph3(xx)(b) of the Order is not applicable to the Company. xxi. In our opinion paragraph(xxi) of the Order does not apply to the Standalone Financial Statements.

For KKC & Associates LLP
Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621
Hasmukh B. Dedhia
Partner
Place: Mumbai ICAI Membership No: 033494
Date: May 27 2022 UDIN: 22033494AJSLFQ8397

Annexure B to the Independent Auditors' report on the Standalone Financial Statementsof IRIS Business Services Limited for the year ended 31 March 2022

(Referred to in paragraph 19.6 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls with reference to the aforesaid StandaloneFinancial Statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013.

Opinion

1. We have audited the internal financial controls with reference to the StandaloneFinancial Statements of IRIS Business Services Limited ("the Company") as at 31March 2022 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

2. In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to the Standalone Financial Statements and such internalfinancial controls were operating effectively as at 31 March 2022 based on the internalcontrols over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management's responsibility for Internal Financial Controls

3. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note. 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 of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's responsibility

4. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditing("SA") prescribed under section 143(10) of the Act to the extent applicable toan audit of internal financial controls with reference to the Standalone FinancialStatements. Those SAs and the Guidance Note require that we comply with the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls with reference to the Standalone Financial Statementswere established and maintained and whether such controls operated effectively in allmaterial respects.

5. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to the Standalone FinancialStatements and their operating effectiveness. Our audit of internal financial controlswith reference to the Standalone Financial Statements included obtaining an understandingof internal financial controls with reference to the Standalone Financial Statementsassessing 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 judgement including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

6. 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 withreference to the Standalone Financial Statements.

Meaning of Internal Financial Controls with reference to the Standalone FinancialStatements

7. A company's internal financial controls with reference to the Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to the Standalone Financial Statements include thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone 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 timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to the StandaloneFinancial Statements

8. Because of the inherent limitations of internal financial controls with reference tothe Standalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to the Standalone Financial Statements to future periods aresubject to the risk that the internal financial controls with reference to the StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

For KKC & Associates LLP
Chartered Accountants
(formerly Khimji Kunverji & Co LLP)
Firm Registration Number: 105146W/W100621
Hasmukh B. Dedhia
Partner
Place: Mumbai ICAI Membership No: 033494
Date: May 27 2022 UDIN: 22033494AJSLFQ8397

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