Date: May 26, 2026
Auditor’s Report
Auditor Name and Location: Purushottam Khandelwal & Co. Chartered Accountants, Ahmedabad.
Type of Opinion: Qualified Opinion.
The audit report expresses a qualified opinion on the standalone financial statements for the year ended 31 March 2026. The opinion is qualified "except for the possible effects of the matter described in the 'Basis for Opinion' section of our report."
Key Audit Matter:
The key audit matter identified was the assessment of impairment of trade receivables and other assets. The company's assets include certain long-outstanding balances aggregating ₹240,000,000 (₹240 crore) as at the balance sheet date. The auditors identified this as a key matter due to:
- The significant quantum of long-outstanding trade receivables and advances
- Management's assessment of recoverability involving significant judgement
- The determination of Expected Credit Loss (ECL) requiring estimation of probability of default, loss given default, and exposure at default
- The risk that small changes in key assumptions could result in materially different impairment outcomes
Emphasis of Matter:
The auditors drew attention to several matters:
1. Settlement with Minosha India Limited: During the year, the company entered into a settlement agreement with M/s Minosha India Limited for withdrawal of arbitration proceedings relating to a claim of ₹7110,02,25,224. Pursuant to the settlement, the company recognized ₹20,00,00,000 as recoverable and adjusted it against Trade Receivables. The balance amount of ₹90,02,25,224 has been written off and charged to the Statement of Profit and Loss.
2. Outstanding Receivable from RUDSICO: The company has an outstanding receivable of ₹40 crores from RUDSICO under the "Smart Rajasthan" contract. The company initiated legal recourse by serving an Arbitration Notice on 06.03.2023, and the matter is presently pending before the Hon'ble High Court of Jaipur for the appointment of an arbitrator. Management believes the amount is fully recoverable, and accordingly, no provision for doubtful debts has been created.
3. Insolvency Proceedings: The company's application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Linkwell Telesystems Private Limited for recovery of outstanding dues amounting to ₹7.90 Crores was rejected by the NCLT, Hyderabad Bench. The company has preferred an appeal before the NCLAT, which is currently pending adjudication.
Other Disclosures:
- The company declared and paid dividend at the rate of 7.50% on equity shares during the year
- There is an unpaid dividend amount of ₹59,673 lying in the Unpaid Dividend Account (7-year period not elapsed)
- The company allotted 2,11,72,007 equity shares of face value ₹2 each on rights basis at an issue price of ₹10 per share
- The shares are partly paid-up to the extent of ₹1 per equity share on face value
- The issued and subscribed equity share capital increased by ₹2,11,72,007 and securities premium increased by ₹8,46,88,028
Internal Financial Controls:
The auditor's report on internal financial controls stated that the company has, in all material respects, an adequate internal financial controls system over financial reporting that was operating effectively as at 31 March 2026.
Regulatory Compliance:
The annexure to the audit report confirmed compliance with various provisions of the Companies Act, 2013, including:
- Maintenance of proper records for property, plant and equipment
- Physical verification of inventory
- Regular deposit of undisputed statutory dues
- Compliance with sections 177 and 188 for related party transactions
- Adequate internal audit system