Independent Auditors' Report on Half Yearly Financial Statements

Audit Opinion

Unqualified opinion stating financial statements give true and fair view in conformity with accounting principles generally accepted in India and comply with Companies Act, 2013. No material uncertainty related to going concern was identified.

Key Audit Matters

Revenue Recognition: Company engaged in software application development for clients and loyalty programs for banks/financial institutions. Auditors involved IT specialists to assess design and operating effectiveness of key IT controls relating to revenue recognition.

Capital Issues:

  • Issued 1,22,40,000 equity shares as bonus shares in ratio of 1200:1 at face value of ₹10 each, enhancing equity share capital by ₹12,24,00,000
  • Issued 33,00,000 equity shares at face value ₹10 each and premium of ₹136 per share through Initial Public Offer
  • Shares listed on Bombay Stock Exchange on 25th March 2026
  • Total equity share capital post-issue: ₹15,55,02,000
  • Total share premium collected: ₹44,88,00,000
  • IPO expenses incurred: ₹8,31,46,217 (adjusted against share premium account)

Financial Statements Overview

Balance Sheet (as at March 31, 2026 vs March 31, 2025)

  • Total Assets: ₹72,367.41 thousand vs ₹15,064.98 thousand
  • Non-current Assets: ₹2,750.71 thousand vs ₹1,377.62 thousand
  • Current Assets: ₹69,616.71 thousand vs ₹13,687.35 thousand
  • Inventories: ₹3,490.10 thousand vs ₹929.10 thousand
  • Trade Receivables: ₹1,872.72 thousand vs ₹1,139.00 thousand
  • Cash & Cash Equivalents: ₹10,371.77 thousand vs ₹1,923.89 thousand
  • Other Bank Balances: ₹51,252.06 thousand vs ₹18.71 thousand
  • Equity Share Capital: ₹15,550.20 thousand vs ₹10.20 thousand
  • Other Equity: ₹45,967.19 thousand vs ₹12,500.48 thousand
  • Total Equity: ₹61,517.39 thousand vs ₹12,510.68 thousand

Statement of Profit and Loss (H1 FY26)

  • Total Income: ₹5,62,966.15 thousand
  • Total Expenses: ₹5,11,222.90 thousand
  • Profit Before Tax: ₹51,743.25 thousand
  • Current Tax: ₹12,666.75 thousand
  • Deferred Tax: ₹114.46 thousand
  • Net Profit for Period: ₹38,962.04 thousand

Statement of Cash Flows (H1 FY26)

  • Net Cash from Operating Activities: ₹19,567.37 thousand
  • Net Cash from Investing Activities: ₹268.06 thousand
  • Net Cash from Financing Activities: ₹39,845.80 thousand
  • Net Increase in Cash: ₹59,681.23 thousand
  • Cash Equivalents at Period End: ₹61,623.83 thousand

Regulatory and Compliance Matters

GST Dispute: Department of Goods and Service Tax raised demand of ₹62,07,169 for tax period 2021-22. Company has appealed with higher authorities and deposited ₹3,27,882 as pre-deposit.

IPO Proceeds Utilization:

  • Total raised through IPO: ₹4,818 lakhs
  • IPO expenses utilized: ₹511.46 lakhs
  • Unutilized proceeds: ₹4,306.54 lakhs temporarily deposited in bank fixed deposits

Other Compliance Notes:

  • No pending litigations impacting financial position
  • No long-term contracts with material foreseeable losses
  • No delay in transferring amounts to Investor Education and Protection Fund
  • No fraud reported during audit period
  • No whistle-blower complaints received
  • Company listed on BSE in March 2026, required to appoint Internal Auditor within 6 months from listing date (25th March 2026)
  • No cash losses incurred in current half year
  • Adequate internal financial controls system in place and operating effectively

Management and Directors

  • Deepak Tomar (Managing Director, DIN: 02484965)
  • Sweta Singh (Director, DIN: 03555699)
  • Vibhore Rastogi (Chief Financial Officer)