IBS Hyderabad

Academic Year – 2022-23

ACCOUNTING FOR MANAGERS

Semester 1
Course Faculty: Prof. ASHOK ANAND

Group Project: Financial statement Analysis of ACE SOFTWARE EXPORTS LTD

NAME ENROLLMENT
NUMBER
1.AISHEE JANA 23BSOCBL0018
2. ANJANI 23BSOCBL0029
3.AMOGH D.M 23BSOCBL0030

Learning Outcomes from this Group Project Task: We have understood the financial statement of the
company, we focused on Balance sheet, P&l account and cashflow statements of the company, we read the
reports by the Auditor, Directors etc and the management responsibility.

Declaration:
We declare that this assignment is our work and we have not copied it from any other student’s work or from
any other source except where due acknowledgement is made.

For Course Instructor’s use only:

Marks Obtained: Max. Marks: …………………………

Comments (For Instructor’s use only)

General Observations Suggestions for Improvement

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INDEX-

SL.NO PARTICULARS PG.NO

1 INTRODUCTION 3

2 THEIR SUBSIDIARY COMPANY ARE AS 3-4

FOLLOWS
3 THEIR FINANCIAL STATISTICS ARE AS 4
FOLLOWS-
4 BALANCE SHEET 4-5

5 P & L ACCOUNT 6

6 CASH FLOW STATEMENT 10

7 DIRECTOR’S REPORT 11

8 MANAGEMENT DISCUSSION AND ANALYSIS 11

REPORTS
9 SECRETARIAL AUDIT REPORT 12

10 REPORT ON THE AUDIT OF THE 12

STANDALONE FINANCIAL STATEMENTS
EPORT ON THE AUDIT OF THE STANDALONE
FINANCIAL STATEMENTS
11 MANAGEMENT’S RESPONSIBILITY FOR THE 13
FINANCIAL STATEMENTS
12 AUDITOR’S RESPONSIBILITIES FOR THE 14
AUDIT OF THE FINANCIAL STATEMENTS

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 ACE SOFTWARE EXPORTS LIMITED

1.INTRODUCTION-

ACE Software Exports operates as a technology consulting company that offers document management,
digital publishing, and data conversion solutions using optimal process engineering and flexible
conversion systems. They provide various publishing and technology services, such as e-book
formatting, pre-press, project management, and app development.
Ace has been active in catering to the outsourcing needs of publishers and other organizations since
1992. Over the years, Ace have adopted a seamless partnership approach. Its clients tend to work with
Ace as true partners; often with the feeling that this is a virtual extension of their own operations. Ace's
strong growth and success has been made possible by robust systems and processes that lead to reliable
output. Ace have expertise in workflow management, and in developing processes that lead to desired
quality levels and achieve the lowest cost of production
Ace provides Document Management, Digital Publishing and Data Conversion solutions using optimal
process engineering and cost-effective and flexible conversion systems. They are a major full-service
digital content provider and are able to deliver digital content with 99.995% accuracy and 100%
application-based integrity.
Digital publishing and technology consulting services are offered by Ace Software Exports Limited
(ASEL), a well-known Indian software provider. Its corporate headquarters are in Rajkot, Gujarat, where
it was established in 1994. On the Bombay Stock Exchange (BSE), the company is listed.
Over 500 people work for ASEL, a company with competence in e-publishing, mobile app development,
cloud computing, and artificial intelligence. The business is well known for providing its clients with
cutting-edge, high-quality solutions’-press, eBook development, and distribution are among the digital
publishing services provided by ASEL. System integration, cloud migration, and data analytics are
among the other technological consulting services provided by the business.
Listed on the Bombay Stock Exchange (BSE) in 2004
Won the "Best Technology Consulting Company" award by the Indian Express in 2015
Won the "Best Digital Publishing Company" award by the FICCI-KPMG in 2017
Received the "Golden Peacock Award for Excellence in IT" in 2019
Ace Software Exports Limited is a well-established and respected company in the Indian software
industry. The company is committed to providing innovative and high-quality solutions to its clients.

2.THEIR SUBSIDIARY COMPANY ARE AS FOLLOWS –

1. Ace Nature Cure LLP- INDIA
2. Ace InfoWorld Pvt.ltd -INDIA

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3.THEIR FINANCIAL STATISTICS ARE AS FOLLOWS-
Market Cap (intraday) 106.33M

Enterprise Value 103.02M

Price/Sales (ttm) 1.08

Price/Book (mrq) 0.53

Enterprise Value/Revenue 1.05

Enterprise Value/EBITDA 25.4

4.BALANCE SHEET (AMOUNT IN LAKHS)

PARTICULARS NOTE As at 31,03,2023 As at 31,03,2022

Assets
NON-CURRENT ASSETS
Property. Plant and Equipment 2a 340.9 265.43
Investment Property 3 73.49 72.69
Intangible assets 2b 3.02 5.11
Financial Assets
Investments 4 671.53 735.86
Other financial assets 5 65.48 62.94
Deferred tax assets (Net) 22.27 22.27
Other non-current assets 6 0.40
CURRENT ASSETS 1177.09 1,164.30
Inventories 112.13 104.74
Financial Assets
Investments 7 2.12 2.15
Trade receivables 8 0.72 0.58
Cash and cash balance 9 3.13 8.8
Loans 10 488.06 502.74
Current tax asset 5.27 8.01
Other current assets 11 84.23 62.44
695.66 689.47
Total Assets 1,872.75 1,853.77
EQUITY AND LIABILITIES
EQUITY
Equity share capital 12 468.00 468
Other Equity 13 1,306.03 1280.99
1,774.03 1748.99
LIABILITIES
Current liabilities
Financial liabilities
Borrowings
Trade payables 14
Micro & Small enterprises
Other than Micro & Small enterprises 51.84 52.24
Other financial liabilities 15 19.88 19.97
Other current liabilities 16 27.00 30.57
98.72 104.78
Total Equity and Liabilities 1,872.75 1,853.77

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WORKING NOTE-
1.SHAREHOLDERS FUND( note no 12)
12. Share Capital
12.1 Details relating to Authorised, Issued, Subscribed & Paid up Share Capital
PARTICULARS As at 31,03,2023 As at 31,03,2022
AUTHORISED SHARE CAPITAL -
Issued, Subscribed & Paid-up Share Capital:
46,80,000 Equity Shares of Rs. 10/-each with voting rights 4800000.00 4800000.00
Total 4800000.00 4800000.00
12.2 OTHER EQUITY
1.RESERVES AND SURPLUS
a)Capital redemption reserve 102.00 102.00
b)Capital reserve 6.75 6.75
c)General reserve 30.46 30.46
d) Retained earnings 1040.43 1040.43
e)Other comprehensive income 126.00 126.00
Total 1305.64 1305.64

Total shareholders fund 4801305.64 4801305.64

2.PLANT, PROPERTY & EQUIPMENT (Note no 2a)

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 3. TRADE RECEIVABLES (Note no 8)
8. Trade Receivables
PARTICULARS As at 31,03,2023 As at 31,03,2022
Unsecured, Considered Good 0.72 0.58
Total 0.72 0.58

4. TRADE PAYABLES (Note no 14)

14.Trade payables
PARTICULARS As at 31,03,2023 As at 31,03,2022
Trade payable - Micro and small enterprise*
Trade payable - Other than Micro and small enterorise 51.84 54.24
Total 51.84 54.24

5.P & L ACCOUNT (AMOUNT IN LAKHS)

PARTICULARS NOTE NO 2023 2022
(RS IN LAKHS) (RS IN LAKHS)
INCOME
Revenue from operations 17 820.08 806.86
Other Income 18 34.62 74.17
TOTAL INCOME 854.71 881.03

EXPENSES
Changes in inventory -7.39 13.55
Employee Benefit expenses 19 279.15 284.07
Finance cost 20 0.39 0.38
Depreciation and Amortaization 2 23.98 19.15
Other expenses 21 548.73 621.53
TOTAL EXPESNES 844.87 938.69

PBT 9.84 -57.66

TAX EXPENSES
Current Tax NIL NIL
Deffered Tax NIL NIL

PROFIT 9.84 -57.66

OTHER COMPREHENSIVE INCOME

Changes in fair value of FVOCI 11.3 36.79
Remeasurement of Defined benefit plans 3.89 3.6

TOTAL OTHER COMPREHENSIVE INCOME 15.19 40.39

TOTAL COMPREHENSIVE INCOME 25.05 -17.27

EARNINGS PER EQT SHARES ( FACE VALUE RS.10/-) 0.21 -1.23

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WORKING NOTES -
1.REVENUE FROM OPERATIONS (Note no 17)
Particulars for the year ended 31st march 2023 for the year ended 31 march 2022
Revenue from software services 820.08 806.86
Total 820.08 806.86
Revenue from software services Revenue from software service has increased in the year 2023 as
compared to revenue in the 2022 by 13.22 (in Lakhs).
2.TOTAL REVENUE / TOTAL INCOME
Particulars for the year ended 31st march 2023 for the year ended 31 march 2022
Revenue from software sales 820.08 806.86
other income-
Interest from bank deposits 2.82 2.7
Interest on loan and advances 24.58 21.24
Dividend income 0.03 0.01
Rental income 7.2 7.2
Profit on sale of investment 43.01

Total 854.71 881.02

When comparing the total revenue of 2022 and 2023 ,we can observe that the revenue from the operations
has increased by 13.22(lakhs) but where as by selling the investing at the profit for Rs.43.01(lakhs) we
have received more income in the 2022. Therefore we see difference of AMT Rs.26.31
3.EMPLOYEE BENEFIT EXPENSES- (Note no19)

Particulars for the year ended 31st march 2023 for the year ended 31 march 2022
Salaries 266.09 274.81
contribution to PF and Other funds 12.7 8.97
staff welfare expenses 0.37 0.29
Total 279.16 284.07
Salaries has been decreased in the year 2023 but the contribution to PF and staff welfare expenses has
been increased.
• Short-term obligations: Liabilities for wages and salaries, including non-monetary benefits
that are expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service are recognised in respect of employee's services up to the
end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit obligations in the
balance sheet.
• Provident Fund: Contribution towards provident fund for employees is made to the regulatory
authorities, where the Company has no further obligations. Such benefits are classified as
Defined Contribution Schemes as the Company does not carry any further obligations, apart
from the contributions made on a monthly basis.

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 • Gratuity Incremental expenditure on gratuity for each year is arrived at as per actuarial valuation and is
recognised and charged to the statement of profit and loss in the year in which employee has rendered
services.

4.DEPRECIATION AND AMORIZATION (Note no 2)

A) TANGIBLE -DEPRECIATION

Particulars Buildings Computers Furniture and fixtures office equipments Vehicles Total
Balance as on 31st march 2022 310.97 372.21 84.69 90.37 72.38 930.62
Add: Additions 0.16 4.47 1.31 91.43 97.37 194.74
less: Deductions 0.00
less : accumulated depreciation till 31st march 2022 -63.5 -352.99 -58.92 -61.72 -58.08 -595.21
less: current year depreciation -8.29 -3 -0.27 -1.67 -8.67 -21.90
total depreciation as on 31st march 2023 -71.79 -355.99 -59.19 -63.39 -66.75 -617.11
balance as on 31st march 2023 382.76 728.20 143.88 153.76 139.13 1,547.73
Depreciation is recognised so as to write off the cost of the assets (other than freehold land and Capital work in
progress) less their residual values over their useful lives, using the written down value method as per the useful
life prescribed in schedule II to the Companies Act, 2013. The Estimated useful lives, residual values and
depreciation method are reviewed at the end of each reporting period, with the effect of any changes in the
estimated accounted for on a prospective basis.

B) INTANGIBLE - AMORTIZATION

Particulars COMPUTER SOFTWARE TOTAL

Balance as on 31st march 2022 40.25 40.25
Add: Additions
less: Deductions
less : accumulated depreciation till 31st march 2022 -35.14 -35.14
less: current year depreciation -2.08 -2.08
total depreciation as on 31st march 2023 -37.22 -37.22
Balance as on 31st march 2023 77.47 77.47
• Recognition and measurement Intangible Assets are stated at cost of acquisition less
accumulated amortization and accumulated impairment, if any. Amortization is done over their
estimated useful life on written down value basis from the date that they are available intended
use, subjected to impairment test.
• Amortization Software, which is not an integral part of the related hardware is classified as an
intangible asset and is amortized over the useful life of 10 years.

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5. EPS - • Earnings per Share:

Particulars For the year ended 31st mar 2023 for the year ended 31st mar 2022

Basic and Diluted EPS per share

Profit available for equity shareholder 9.84 -57.66
weighted average number of equity shares o/s at the end of respective year 46,80,000 46,80,000

Basic and Diluted EPS per share 0.21 -1.23

Face value of share 10.05 -58.89

• Basic earnings per share Basic earnings per share is calculated by dividing: - the profit attributable
to owners of the company, excluding any costs of servicing equity other than ordinary shares. - by
the weighted average number of equities shares outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year.
• Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination
of basic earnings per share to take into account: - the after-income tax effect of interest and other
financing costs associated with dilutive potential equity shares, and - the weighted average number
of additional ordinary shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.
• In the year 2023 the have profit of 9.84(in lakhs) so the EPS per share is 0.21 ,therefore in the year they had
faced loss of amt (57.66) .

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6.CASH FLOW (AMOUNT IN LAKHS)
ACE EXPORTS LTD.
STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED ON 31ST MARCH, 2023

PARTICULARS FOR THE YEAR ENDED FOR THE YEAR ENDED2

31.3.2023 31.3.2022

A. Cash flow from Operating Activities 9.84 -57.66

Net profit before tax and extraordinary items
Adjustments for :
Depreciation & other non cash charges 23.98 19.15
Remeasurement of Defined benefit Plans 3.89 3.6
Dividend Income -0.03 -0.01
Share of Loss from LLP 6.01 51.47
Surplus/loss on sale of Investments/Assets 7.4 -43.01
Interest Income -27.4 -23.94
Interest Expenses 0.39

Operating Profit before working capital changes 24.09 -50.02

Adjustments for :
Increase/(decrease) in current & noncurrent liabilities -6.06 -9.75
(Increase)/decrease in current & noncurrent assets -17.57 219.61
Cash generated from Operations 0.47 159.84
Direct taxes paid (net of refunds) 2.77 -3.7
Cash flow before extra-ordinary items 3.24 156.14

Net cash generated/(used) in operating activities 3.24 156.14

B. Cash flow from investing activities

Purchase/Sale of Fixed Assets -98.17 25.09
Sale/Purchase of Investments 62.23 -197.08
Interest Received 27.4 23.94
Dividend Income 0.03 0.01

Net cash generated/used in investing activities -8.52 -148.03

C. Cash flow from financing activities

Short term Borrowings -0.82
Interest paid -0.39 -0.38

Net cash generated/used in financing activities -0.39 -1.2

Net increase in cash and cash equivalent -5.67 6.9
Opening Balance of Cash and cash equivalent 8.8 1.9
Closing Balance of Cash and cash equivalent 3.13 8.8

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 7.DIRECTOR’S REPORT
BOARD OF DIRECTORS AND
MEETING:
Name of Directors Founder and Designation Qualification
Executive/Director
Mr. Vikram B. Sanghani DIN: 00183818 Jt. Managing MBA (Finance)
Director
Mr. Sanjay H. Dhamsania DIN: 00013892 Jt. Managing MS (Computer Science)
Director
Mr. Pratik C. Dadhania DIN: 02931106 Director Graduate in Architecture
Mr. Vimal L. Kalaria DIN: 00029395 Director Post Graduate Diploma in
Finance

8.MANAGEMENT DISCUSSION AND ANALYSIS REPORTS

Global
Global economic growth has been decelerating due to diminished investment, heightened inflation,
elevated interest rates, and disruptions stemming from the Russia-Ukraine conflict. To counteract
inflation, numerous countries have swiftly implemented tighter monetary policies, which have been
compounded by substantial currency devaluations against the USD and constrained labour market
conditions. These global circumstances have made debt servicing more challenging, leading to
increased apprehensions about debt sustainability across various nations. Notably, the United States is
undergoing an exceptionally rigorous monetary policy tightening phase, expected to significantly
curtail its growth. The Euro area confronts additional obstacles such as substantial energy supply
interruptions and price surges, exacerbating their inflation concerns. While the overall growth
prospects for emerging economies in 2023 are predicted to remain relatively stable compared to 2022,
thanks to China's potential recovery counteracting declines in other emerging economies,
apprehensions about financial vulnerabilities loom. This pertains to various aspects including financial
institutions, housing markets, and low-income countries. Despite a recent reduction in headline
inflation, the persistently high levels raise the possibility of prolonged inflationary pressures. Forecasts
for growth in emerging market and developing economies indicate a modest uptick from 3.9% in 2022
to 4.0% in 2023 and 4.2% in 2024. It's projected that around half of these economies will experience
reduced growth in 2023 relative to the preceding year. Meanwhile, the growth trajectory for emerging
and developing Asia is anticipated to ascend in both 2023 and 2024.
India
The National Statistical Office (NSO) has unveiled the First Advance Estimates (FAE), projecting
India's real Gross Domestic Product (GDP) to grow by 7.0% in FY23. This optimistic growth
projection is underpinned by the Indian economy's remarkable resilience, evident in the resurgence of
private consumption taking the reins from export stimuli as the primary growth catalyst. The upswing
in private consumption has also spurred production, resulting in heightened capacity utilization across
various sectors. The revival of contact-intensive industries and discretionary spending is anticipated to
bolster urban consumption. In line with these positive economic dynamics, the FY24 Union Budget
has been designed to complement overall macroeconomic growth. It emphasizes comprehensive
welfare measures, fosters the advancement of the digital economy and fintech, facilitates technology-
driven development, propels energy transition and climate action, and initiates a positive cycle of
private investment, complemented by public capital infusion. The confluence of robust credit
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 expansion, resilient financial markets, and sustained government capital expenditure and infrastructure
initiatives has cultivated an environment conducive to investment. India's rapid rebound from the
pandemic has laid a strong foundation, with forthcoming growth poised to be sustained by robust
domestic demand and an uptick in capital investment.
9.SECRETARIAL AUDIT REPORT
I have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India
(ii) The Listing Agreements entered into by the Company with Stock Exchanges, if applicable As
explained to me, during the period under review the Company has complied with the
provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above except
registration of offices nos. 803 to 810, in the name of the company, located at 8th floor of
Everest building, Opp. Shashtri Maidan, is kept pending due to pending documentation related
to title search at relevant authorities. I further report, that the compliance by the Company of
applicable financial laws, like direct and indirect tax laws, has not been reviewed in this Audit
since the same have been subject to review by statutory financial audit and other designated
professionals. I further report that, the Board of Directors of the Company is duly constituted
with proper balance of Executive Directors, Non-Executive Directors and Independent
Directors. During the period under review there was no change in the composition of the
Board of Directors. The changes in the composition of the Board of Directors that took place
during the period under review were carried out in compliance with the provisions of the Act
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed
notes on agenda were sent at least seven days in advance to all Directors, and a system exists
for seeking and obtaining further information and clarifications on the agenda items before the
meeting and for meaningful participation at the meeting. Majority decision is carried through
while the dissenting members’ views are captured and recorded as part of minutes. I further
report that, there are adequate systems and processes in the Company commensurate with the
size and operations of the Company to monitor and ensure compliance with applicable laws,
rules, regulations and guidelines. I report further that, during the audit period, there were no
other specific events / actions in pursuance of the above referred laws, rules, regulations,
guidelines, etc., having a major bearing on the Company's affairs.
10.REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
a)OPINION
We have audited the standalone financial statements of Ace Software Exports Limited (“the
Company”) which comprise the Balance Sheet as at March 31, 2023, and the Statement of Profit and
Loss (including Other Comprehensive Loss), Statement of Changes in Equity, Statement of Cash
Flows for the year then ended and notes to the standalone financial statements, including a summary of
significant accounting policies and other explanatory information for the year ended on that date
(hereinafter referred to as “Standalone Financial Statements”). In our opinion and to the best of our
information and according to the explanations given to us, the aforesaid Standalone Financial
Statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the
manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its Profit
including other comprehensive income, changes in equity and its cash flows for the year ended on that
date.
b)BASIS FOR OPINION
We conducted our audit of Standalone Financial Statement in accordance with the Standards on
Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards
are further described in the 'Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements' section of our report. We are independent of the Company in accordance with the Code of
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 Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the standalone financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidences we
have obtained are sufficient and appropriate to provide a basis for our opinion.
c)KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the standalone financial statements of the current period. These matters were addressed in the
context of our audit of the standalone financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. We have determined that there are
no key audit matters to communicate in our report.
d)OTHER INFORMATION
Management is responsible for the other information. The other information comprises the information
included in the Annual Report, but does not include the standalone financial statements and our
auditor’s report thereon. Our opinion on the standalone financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon. In connection with our
audit of the standalone financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information; we are required to report that fact. We have nothing to report in this regard.
11.MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act,
with respect to the preparation of these standalone financial statements that give a true and fair view of
the financial position, financial performance, total comprehensive income, changes in equity and cash
flows of the Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards specified under Section 133 of the Act. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate implementation and maintenance of accounting
policies; making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the standalone financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error. In preparing the standalone financial statements,
management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the
Company’s financial reporting process.
12.AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements. As part of an audit in accordance with SAs,
we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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 • Identify and assess the risks of material misstatement of the standalone financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, I am
also responsible for expressing our opinion on whether the company has adequate internal financial
controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

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