To,
The Members of ITI Limited
Report on Standalone Financial Statements of ITI Limited
Disclaimer of Opinion
We were engaged to audit the accompanying Standalone Financial Statements(RSSFSRS) of ITI Limited ("The Company") which comprise the Balance Sheet as at
March 31,2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows, Statement of Changes in Equity for
the year then ended and a summary of material accounting policies and other explanatory information.
We do not express any opinion on the accompanying SFS of the Company. Because of the significance of the matters described in the RSBasis for Disclaimer of
OpinionRS section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these SFS.
Basis for Disclaimer of Opinion
1. The SFS of the Company for the year ended March 31, 2024, as approved by the Board of Directors on May 28, 2024, was reported upon by us vide our audit report issued on July 31, 2024. Vide this report, we had issued a Disclaimer of Opinion on the said SFS due to the significance of the matters described in the RSBasis for disclaimer of opinionRS section of the said report and our inability to quantify/ascertain the impact of matters covered therein on the SFS for the said financial year. Those comments and observations may continue to impact the SFS for the current year.
2. The Company did not have adequate internal financial controls with reference to its financial statements as required by section 134 of the Companies Act, 2013, which may in turn result in errors and misstatements therein which may remain undetected and have a material impact thereof. This includes non-establishment of a sound information systems security policy and general controls interalia with adequate controls, safeguards and oversight over access, use of passwords, change management, modifications/edits made to data through the application or to the database/backend changes, with adequate audit trails and periodical reviews of the same.
3. The Company has recognized the sale of a portion of its land and an old building at Electronic City Bengaluru to Centre for Development of Telematics (C-DotRS) at an agreed consideration of Rs. 20,000 lakhs and the consequent profit on sale thereof amounting to Rs. 10,919 lakhs, pursuant to an agreement to sell dated February 17, 2025, and approvals from Department of Telecommunications, Government of India for the sale. Pending demarcation of the relevant property by the Karnataka Industrial Areas Development Board (RSKIADBRS) as at March 31, 2025, subsequent confirmation of demarcation by Electronic City Industrial Township Authority, receipt of balance consideration of Rs.10,000 lakhs, execution of sale deed in favor of the buyer and the consequent transfer of control over the said property to the latter, the derecognition criteria laid down in IndAS-16 RSProperty, Plant and EquipmentRS (RSPPERS) is not satisfied. Had the Company not recognized the said sale, Assets held for saleRS would have reflected a balance of Rs. 9,081 lakhs, RSOther current assetsRS would have been lower Rs. 4,152 lakhs (after adjusting other receivables by the Company, simultaneously to be settled without payment), RSLoss for the yearRS and RSTotal comprehensive income (loss)RS would have been more by Rs. 10,919 lakhs, Current Liabilities and provisions would have been more by Rs. 2,280 lakhs (after adjusting other dues by the Company, simultaneously to be settled without payment), debit balance in Profit and Loss account would have been more by Rs. 10,919 lakhs, RSEarnings per shareRS would be lower at Rs. (3.19) as against the reported amount of Rs. (2.43)
4. We had in paragraph 7 under the head RSBasis for Disclaimer of OpinionRS vide our report dated July 31,2024, on the standalone financial statements for the financial year ended March 31, 2024, reported that assets though put to use in prior years aggregating to Rs. 11,620.82 lakhs had been held in RSCapital Work in ProgressRS and not capitalized as PPE. During the year, the Company has capitalized as PPE/ Investment Property(RSIPRS), the new data center to an extent of Rs. 2,679.92 lakhs, NIFT building of Rs. 6,582.06 lakhs and other assets to an extent of Rs. 2,355.16 lakhs, all held in Capital Work in Progress as at April 01, 2024. Since this was a RSPrior period errorRS within the meaning of Ind AS 8 - Accounting Policies, Changes in Accounting estimates and ErrorsRS, the Company ought to have restated its prior yearRSs figures including the additional charge for depreciation relating to the period up to March 31, 2023, and for the year ended March 31, 2024. For want of full information, we are unable to prepare/quantify the effect of the restated balance sheet as at April 01,2023, all affected figures for the year ended March 31,2024, and the charge for depreciation for year under review/loss for the year/earnings per share and consequent disclosures.
5. The Company is in the process of reconciling the value of land as per the asset register with the respective title deeds/ documents across various locations of the Company. Company has an independent list of land owned at various locations, wherein the respective title deeds are being corelated to the records maintained by civil engineering department. We have relied on the documents furnished for verification of title deeds and do not express any independent opinion on the same. Further, the auditors of Naini (M/s Vinay Kumar & Co) and Palakkad (M/s Balaram & Nandakumar) units have commented on the limitations in respect of title deeds of the units. Land measuring 77 Acres at Palakkad valuing Rs.19,470 Lakhs (Carrying Value) have been resumed by the Govt of Kerala and is under adjudication of the Apex Court. The value of Land as shown in the SFS includes such land resumed by the Govt of Kerala pending decision by the Apex court.
6. Fixed asset records (FAR) maintained in excel sheets are with inadequate description and location of assets, which in turn may impact the rate of depreciation to be applied and the consequent written down value of assets. The FAR is not updated for land held by the Company including revaluation amounts. Management has not assessed assets which are unserviceable/ not in working condition and has not recognized any provision for diminution in value with respect to such assets. The Company has not made available records in support of physical verification of PPE carried. In the absence of such comprehensive data in FAR, documentation in support of physical verification carried out and adjustment of discrepancies, if any arising from reconciliation of the same with book records and non-identification of assets which are unserviceable/ not in working condition, we are unable to comment on compliance with IndAS-16 RSProperty, Plant and EquipmentRS.
7. Requisite details of certain land and buildings owned by the Company/taken on lease (sale/lease deed, location, purpose for which property is put to use, categorization between PPE and IF) whether any amortization of the same is required, income derived therefrom, etc.) were not furnished to us. The written down value of such assets as at March 31,2025, aggregated to Rs. 18,746.49 lakhs. The Company has recognized income during the year and prior years for which either there were no rental agreements or agreements had expired pending renewal. The Company has not furnished required disclosures as per IndAS 40- Investment Property including the fair values (FV) of its IPs, the basis of determining its FV, rental income derived from such properties and direct operating expenses (including repairs and maintenance) arising from IP that generated rental income during the year etc. In the absence of sufficient appropriate audit evidence, we are unable to ascertain impact, if any, on the SFS.
8. In terms of the RSMaterial Accounting PoliciesRS, the Company has not provided any documentation in support of the evaluation carried out to test for impairment of assets in compliance with IndAS 36 RSImpairment of AssetsRS. Accordingly, we are unable to satisfy ourselves whether any provision for impairment of assets is required to be recognized in these SFS.
9. Unrealized gains/losses on laptops produced by the Palakkad unit of the Company and transferred to other units for captive use have not been assessed and eliminated. In the absence of sufficient appropriate audit evidence, effect on SFS could not be ascertained.
10. Internally developed software by a unit of the Company for captive use has not been evaluated for recognition in terms of IndAS 38- RSIntangible AssetsRS and measured, if required. In the absence of sufficient appropriate audit evidence, effect on SFS could not be ascertained.
11. The Company has not identified lease contracts entered into by it as a lessee/lessor within the meaning of IndAS 116 - Leases and has consequently not adopted the principles of recognition, measurement and disclosure contemplated therein, contrary to accounting policy but has expensed off/recognized as income in the Statement of Profit and Loss as per contractual terms. Security deposits paid/received thereon have not been recognized in the Statement of Profit and Loss in accordance with Ind AS 109 - Financial Instruments. In the absence of sufficient appropriate audit evidence, we are unable to ascertain impact, if any, on the SFS.
12. The Company did not have a system of appropriating payments received against specific bills raised and only maintains a running account of bills raised and payments received. Consequently, the Company has furnished, based on excel workings, age-wise data in respect of trade receivables as mandated by schedule III, part II to the Companies Act, 2013. We could not independently validate the ageing data so furnished with the books of account The Company did not furnish bill wise breakup for certain trade receivables. Further, the Company did not obtain confirmation of balances / statements of account for its trade receivables refer note 31(3) and 31(40) of SFS. The Company has not assessed and recognized the quantum of expected credit loss in terms of IndAS 109 - Financial InstrumentsRS and has not furnished the requisite disclosures required in respect thereof. The Company did not furnish us requisite analysis/ breakup of unbilled revenue of Rs 1,79,339.58 lakhs identifying the milestones to be achieved before the same can be billed, the further costs yet to be incurred to achieve such milestones and the estimate of likely costs of rework/modifications that are to be incurred in the process of achieving certification from its customers. In the absence of sufficient appropriate audit evidence, we are unable to ascertain impact, if any, on the SFS.
13. The Company has several old balances in various receivable accounts in the nature of deposits, claims recoverable and other receivables(both current/ non-current) including certain receivables which are disputed amounting to Rs. 7,015.11 lakhs, which are long outstanding and with no adequate supporting. The Company has also not obtained confirmation of balances/ statements of account/ reconciliation with books of accounts/ not assessed and recognized the quantum of expected credit loss in terms of IndAS 109 - RSFinancial InstrumentsRS. In the absence of sufficient appropriate audit evidence, we are unable to ascertain impact, if any, on the SFS.
14. The Company had received soft loan from the Government of India in the financial year 2014-15 of Rs. 30,000 lakhs carrying interest at the rate of 1%. This loan was not recognized at fair value after considering the market borrowing rate. The Company has not identified financial assets and financial liabilities within the meaning of IndAS 109 and has consequently not adopted the principles of recognition, measurement and disclosure contemplated therein. In the absence of sufficient appropriate audit evidence, we are unable to ascertain impact, if any, on the SFS.
15. The Company did not carry out physical verification of inventory at all locations, in the absence of which excess/shortages as compared to book records were not assessed. Inventories with book value of Rs. 23,138.76 lakhs, lying in the various sites/outside locations/stores for which assessment of net realizable value as at March 31,2025, was not made available. The CompanyRSs inventories include old and non-moving items and has not carried out any ageing, usefulness and serviceability assessment to ascertain obsolete inventories, if any. List of inventories was not furnished to confirm its bifurcation into raw materials, components, stores, work in process, manufactured components, finished goods, material in transit and goods pending inspection along with requisite quantitative stock reconciliation statements. We could not independently validate the stock records with valuation made by the Company with supporting documents. We have not been able to independently verify and ensure compliance with IndAS 2- Inventories.
16. In the absence of complete details/nature and ageing of each amount payable, reasons for their pendency, reasons for non-claim by parties where applicable, confirmations/statements of account/reconciliations prepared of certain liabilities (both current/non-current) and advances received from customers of Rs. 1,84,574.93 lakhs, we have not obtained sufficient appropriate audit evidence and are unable to comment on its completeness/ accuracy. The data regarding ageing of trade payables as disclosed vide note 17(c) & 14(c) SFS is as furnished by the management and in absence of bill-wise breakup, we are unable to independently validate the same.
17. Reference is invited to note 17(c) & 14(c) to the SFS regarding disclosure of information pertaining to dues to micro and small enterprises in terms of the Micro, Small and Medium Enterprises Development Act, 2006. Pending identification of such vendors and consequential non-provision for interest, if any, in terms of section 23 of the said act, we have not obtained sufficient appropriate audit evidence and are unable to comment on its completeness/ accuracy.
18. The Company has not carried-out any fair valuation assessment in terms of the IndAS 109 RSFinancial InstrumentsRS in respect of its financial assets and liabilities which are receivable/payable beyond a period of 12 months from the date of initial recognition (examples: certain employee receivables, retention money payable, security deposits accepted/paid, etc.) for the purposes of determination of amortizedcosts and amortization/recognition of expenses/ income of the differential between amortized cost and contractual amounts payable/receivable.
19. The CompanyRSs contribution to ITI Employees Provident Fund Trust (RSPF TrustRS) as detailed in its Material Accounting Policies has been considered as a defined contribution plan and not as a defined benefit plan, both for the current and prior years. Accordingly, the liability to the trust ought to have been evaluated actuarily and recognized rather than at 12% of the eligible salaries to be made over during the year. We have also not received the audited financial statements of the PF Trust to assess whether there is any shortfall between the income received by the PF Trust and interest expense recognized based on the rate of interest declared by the Provident Fund Commissioner, Government of India for the year or prior years. Consequent disclosures required in terms of IndAS 19 - Employee Benefits have not been furnished.
20. The Company has not reconciled its books of accounts with its GST returns (GSTR-1/3B/2A/2B/6/7/7A/9&9C) filed across all its registrations refer note 31(3) of SFS. (turnover, exempt turnover, taxes payable, input tax credit available/availed and tax deducted at source). The Company has not segregated the goods and service portions of the advances received based on respective contracts and remitted GST liability on the service portion of the same. Pending such bifurcation, we are unable to ascertain the quantum of GST liability on advances payable and required provision along for interest payable. The company has not ascertained the reversal of GST input and interest thereon on account of non-payment of vendors before 180 days. The Company has not filed its annual return of reconciliation of turnover between books and returns for certain registrations pertaining to the financial years 2021-22, 2022-23 and 2023-24 respectively, contrary to rule 80 of the CGST Rules, 2016. Reconciliation for the current year between its books of account and returns for each registration has also not been furnished to us.
21. The Company has not reconciled the entries in forms 26AS, TIS and AIS in the Income Tax portal website with its books of account for the current and prior years. The Company has not disclosed the TDS/ TCS receivables appropriately in terms of Schedule III of the Act.
22. The Company has reported to the extent ascertained its contingent liabilities/ legal/ arbitration cases and capital commitments as detailed in note 31(10) & 31(11) of SFS . In the absence of full and comprehensive list across all divisions/units/ROs/Corporate office of the Company with testing of the probability of the liability devolving supported with appropriate legal advice wherever required, we are unable to ascertain the completeness/accuracy of the values reported in the said note and any provisions that may be required to be recognized in this respect.
23. The Company has not identified warranty obligations as a distinct performance obligation within the meaning of IndAS 115 - RSRevenue from contracts with customersRS but recognizes the same as and when obligations arise on the plea that it generally has a back-to-back claims against its vendors. The company has not provided us with the requisite documentation indicating such rights in each contract entered into by it.
24. a. The Company has entered into composite contracts with certain customers for planning, engineering, supply, installation, commissioning, testing and
annual maintenance, involving substantial amounts. In these cases, the Company has recognized revenue for supply of goods to customers based on dispatches and for services, wherever completed by it, as at year end. The Company has not furnished us with the requisite documentation substantiating compliance with the preconditions for recognizing revenue in terms of IndAS 115-Revenue from Contracts with Customers and passing of controls to the latter over the goods and services. The Company has also not assessed probable losses which it might incur on account of cost overruns and in completion of services, requiring recognition.
b. Attention is invited to foot note of note 22 of the SFS where in the Company has enumerated the status of a contract with Ministry of Defense, government of India, for supply and establishment of Army Static Switched Communication Network (ASCON) at an agreed consideration. In terms of the said contract, the Company was to mandatorily demonstrate its complete solution to bring out its capabilities vis-a-vis the requirements of the customer, which would be evaluated by the latter and form an essential part of the test bed evaluation process. We are informed for the reasons stated in the said note that the test best approval was awaited as at March 31, 2025, which is expected upon completion of certain activities as detailed therein. The Company has proceeded with part execution of the contract pending test bed final approval and in the opinion of the management of the Company is not impacting the revenue already recognized up to March 31, 2025, to an aggregate extent of Rs. 1,69,522.25 lakhs. We cannot express any independent opinion on such revenue recognized.
25. We understand that the Company entered into a Memorandum of Understanding (RSMOURS) with the Minister of State, Department of Minority Affairs and Madrasah Education (MA&ME), Govt of West Bengal dated February 25, 2021 for execution of Infrastructure and IT Development Project wherein it was to host, operate, administer and execute the said project for a consultancy charge of 5% of the total vetted estimated cost of Detailed Project Reports (DPR) without GST. Pursuant to this MOU, the Company reportedly issued Work Orders (WOs) to several vendors before obtaining approvals from the corporate office. The work order issued by MA&ME was reportedly cancelled by the Minister of Minority Affairs, Government of India on March 2, 2022, and Company in turn reportedly cancelled the WOs issued on various vendors on September 2, 2023. Certain vendors to whom contracts had been awarded have reportedly filed writs in the High Court of Kolkata regarding non-payment of dues by the Company for work completed by them to an extent of Rs. 292 lakhs (to the extent furnished to us). There were reportedly irregularities observed in the receipt of the said MOU and as well as in the WOs issued and cancelled by the Company on certain vendors in terms of an inter-office memo from the Chief Vigilance Officer (CVO) to Chairman and Managing Director (CMD) dated July 25, 2023. Management has represented that these irregularities are in the nature of negligence and has confirmed that there is no fraud committed in this respect. We have relied on the information and explanations furnished by the Company and do not express any independent opinion on the said matter including any probability of fraud. Effect on the SFS, if any, is not ascertainable at this stage.
26. The Company has reported certain non-compliances with various provisions of the SEBI Listing Regulations/Companies Act, 2013 (RSthe ActRS) interalia in respect of quorum for board meetings, non-compliance with the constitution of audit and risk management committees, specified proportion/ number of independent directors. Consequential non-provision for penalty and interest on such non-compliance not recognized in the SFS.
27. The Company received RS5,900 lakhs on January 23, 2025, from the Government of India through the Department of Telecommunications (order dated January 21,2025) for specified capital projects, as equity investment per communication dated January 08, 2025, from Government of India to DOT. While the Board approved the share issuance on May 27, 2025, the Company did not obtain prior shareholder approval via special resolution under Section 62(1)
(c) of the Companies Act, 2013, including not obtaining a valuation report in support of its issue price. It also did not comply with Section 42 procedures for private placement or the applicable stock exchange listing regulations. The Company believes that Regulation 70 of SEBI (ICDR) Regulations, 2009 exempts it from passing a special resolution; however, no such exemption exists under the Companies Act. Further, the shares were not allotted within 60 days of receipt nor was the amount refunded within the next 15 days, leading to the funds being regarded as a deposit under Rule 2(1)(c)(vii) of the Companies (Acceptance of Deposits) Rules, 2014. The impact of this non-compliance on the standalone financial statements could not be ascertained.
28. Attention of the members is also invited to our comments in para 2(j)(vi) of the section on RSReport on legal and regulatory mattersRS regarding audit trails and in Annexure D, pursuant to the directions of the Comptroller and Auditor General of India. We are unable to assess the impact of these observations on the SFS.
29. There are current and old balances carried forward in certain assets and liabilities accounts which are set out in Annexure A to this report. In respect to these accounts, management has not furnished us the composition of such balances and requisite records in support thereof. In the absence of sufficient appropriate audit evidence, we are unable to assess the impact of the same on the SFS.
30. The Company has not furnished certain disclosures as required under Schedule III of the Act in respect of the details of quarterly returns / statements of Current assets filed by the Company with banks and accordingly we are unable to comment if those returns were in agreement with the books of accounts or reconciliations/reasons of material discrepancies, if any, if there were differences.
Common to all matters dealt with above:
We are unable to obtain sufficient appropriate audit evidence to form an opinion on the SFS due to the potential interaction of the multiple/undetected misstatements, if any, contained therein and assessment of their possible individual and cumulative effect thereof, which may be material and pervasive, and accordingly forms the basis for the disclaimer of opinion.
Material Uncertainty for continuing as a Going Concern.
The Company incurred a net loss of Rs. 23,315.35 lakhs during the year ended March 31,2025 with its current liabilities as at year end being more than its current assets as reflected in the SFS and such gap likely to increase in the wake of our qualifications outlined in the foregoing paragraphs under the heading RSBasis for Disclaimer of OpinionRS may cast a doubt on the ability of the Company to continue as a going concern. Reference is drawn to note 31(4) of SFS where in the management is of the opinion that going concern basis of accounting is appropriate in view of the factors outlined in the said note. The appropriateness of the going concern is subject to successful attainment of the plans of the Company. Our opinion is not modified in respect of this matter.
Emphasis of Matter
According to the Company, Uttar Pradesh Power Corporation Limited(RSUPPCL) has shown excess reading of electricity bill, which has been decided by Consumer Forum in its favor but still Rs. 326.26 lakhs is being shown as arrears of dues in their bill. Unit has reportedly filed a case against UPPCL in the HonRSble High Court at Lucknow and the matter is sub judice. (As reported by M/S Chandnani Singh & Associates, Chartered Accountants, RaeBareli unit of the Company).
Other Information
The CompanyRSs Board of Directors is responsible for the other information, which consist of Company information, ten-year digest, figures at a glance, directorRSs report and report on corporate governance (RSOther InformationRS). Our opinion on the SFS do not cover the Other Information and we do not express any form of assurance/ conclusion thereon. In connection with our audit of the SFS, our responsibility is to read the Other Information and in doing so, consider whether the Other Information is materially inconsistent with the SFS, 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. Management has represented to us that Other Information for the financial year March 31,2025, have not been finalised and accordingly, the same was not furnished to us.
ManagementRSs and Board of DirectorsRS Responsibilities for the Standalone Financial Statements
The CompanyRSs Management and the Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these SFS that give a true and fair view of the net profit/ loss and other financial information, the Statement of Assets and Liabilities and the Statement of Cash Flow in accordance with the recognition and measurement principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2021, issued there under and in compliance with Regulation 33 of the Listing Regulations. 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 accounting policies, making judgments and estimates that are reasonable and prudent and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the SFS that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the SFS, management and the Board of Directors are responsible for assessing the CompanyRSs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the CompanyRSs financial reporting process.
AuditorRSs Responsibilities for the Audit of the Standalone Financial Statements
Our responsibility is to conduct an audit of the SFS in accordance with Standards on Auditing and to issue an auditorRSs report. However, because of the matters described in the Basis of Disclaimer of the opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion of SFS.
We are independent of the Company in accordance with the ethical requirements in accordance with the requirements of the Code of Ethics issued by ICAI and the ethical requirements as prescribed under the laws and regulations applicable to the Company.
Other Matters
We did not audit the financial statements of the Mankapur, Raebareli, Srinagar, Naini & Palakkad Units included in the SFS of the Company, whose financial statements reflect total assets of Rs. 2,13,613 lakhs, total income of Rs. 38,294 lakhs and total loss of Rs. 22,952 lakhs for the year ended March 31, 2025, (excluding inter-unit balances and transactions). The financial statements of these units have been audited by unitRSs auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these units is solely on the reports of such units auditors. Our opinion is not modified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (AuditorsRS Report) Order, 2020 ("the Order") issued by the Central Government in terms of section 143 (11) of the Act, we give in the "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order, which is subject to the possible effects of the matters described in the RSBasis for Disclaimer OpinionRS section of our Independent auditorRSs report and in our report on the Internal Financial Controls over Financial Reporting.
As required by section 143(3) of the Act, we report that:
a. As described in the RSBasis for Disclaimer of OpinionRS section above, we have sought but were not able to obtain all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books, except in respect of matters described in the RSBasis for Disclaimer of OpinionRS section above.
c. The reports on the accounts of branch/ unit offices of the Company audited by branch/ unit auditors have been forwarded to us and have been duly dealt with while preparing this report.
d. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account, except for gross block and accumulated depreciation of PPE and IP as per books are not in agreement with the corresponding figures in the relevant notes to the SFS.
e. Due to the possible effects of the matters described in the RSBasis for Disclaimer of OpinionRS section above, we are unable to state whether the aforesaid SFS comply with the Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards)Rules, 2021, as amended.
f. As per GSR- 463 (E) dated June 5, 2015, issued by the Ministry of Corporate Affairs, the provisions of Section 164(2) of the Companies Act, 2013 regarding disqualification of director(s) is not applicable to the Company, since it is a Government Company.
g. The reservation/modification relating to the maintenance of accounts and other matters connected therewith are as stated in the RSBasis for Disclaimer of Opinion sectionRS.
h. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C" and paragraph 2 of the section RSBasis for Disclaimer of OpinionRS. Our report expresses a disclaimer of opinion on the CompanyRSs internal financial controls over financial reporting for the reasons stated therein.
i. Except for the possible effects of the matters described in the RSBasis for Disclaimerof OpinionRS section above, with respect to the other matters to be included in theIndependent AuditorRSs Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the estimated impact of pending litigations onits financial position as detailed in Note 31(11) to FS, to the extent ascertained. Refer para 22 of the section RSBasis for Disclaimer of OpinionRS of our report.
ii. The Company has made provisions, as required under applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts, subject to our comments in para 24(a) of the section RSBasis for Disclaimer of OpinionRS of our report. The Company did not enter into any derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
j. i. Management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from
borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
ii. Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s)
or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
iii. Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) above contain any material misstatement.
k. The Company did not declare or pay any dividends during the year. Accordingly, no reporting under the said sub clause is applicable.
l. The Company uses multiple accounting software (RSTally Prime?„?RS and RSIntegrated Manufacturing Management SystemRS(IMMS)) for maintenance of its books of account for the financial year ended March 31,2025. We understand, based on examinations, including certain test checks and discussions with the management, that Tally Prime Edit Log version software had a feature of recording audit trail (edit log) facility and the same was operated throughout the year except Bengaluru NSU unit, where such audit trails were implemented in the month of June 12, 2024. The branch auditors of Raebareli and Srinagar units of the Company have not commented on availability of audit trails/edit log facilities and the same were also not furnished to us. We have not come across any instances of the audit trail features being tampered with for the period except in respect of Raebareli and Srinagar units, where such examination could not be carried out. Based on Tally PrimeRSs architecture, we understand that there is no audit trail (edit log) of database changes. Palakkad unit uses RSIMMSRS software which has a feature of recording audit trail (edit log) facility. The audit trails of changes to this software were not furnished to the branch auditors. Many of the records used for preparation of SFS like payroll, inventory/ fixed asset records, billing and invoicing on customers etc., at certain units are maintained in excel/ other software, where there are no audit trails/ edit logs.
The Company based on explanations furnished has preserved audit trails of Tally for the financial year 2023-24 from the date they were activated, differently at various units. We are unable to comment on the audit trail preservation in respect of IMMS software.
m. As required by section 143(5) of the Act, we report on matters covered in the directions issued by the Comptroller and Auditor-General of India, the action taken thereon and its impact on the SFS of the Company in "Annexure D".
For B.K.RAMADHYANI & CO LLP Chartered Accountants Firm Registration No. 002878S/S200021
(CA Vasuki H S) Partner
Membership No. 212013 UDIN: 25212013BMLXLT6278
Place: Bengaluru Date: June 13, 2025
Statement setting out balances relating to assets and liabilities as at year end whose composition and requisite records in support there of were not furnished to us
Annexure A to the Audit Report
| Unit/RO name | Ledger Name / Group Name | Debit / Credit | 24-25 Closing Balance |
| RO Bhubaneswar | Advances From Customer | Credit | -5,34,488 |
| RO Bhubaneswar | 19103 SERVICE TAX | Credit | -3,89,165 |
| Ro Hyderabad | 14705 - Security Deposit | Credit | -1,05,57,388 |
| Ro Hyderabad | 28570 EMD FROM VENDORS | Credit | -79,65,826 |
| Ro Kolkata | 18251 SECURITY DEPOSIT FROM CONTRACTORS | Credit | -55,12,865 |
| Ro Kolkata | 18200 FOR OTHER LIABILITIES | Credit | -99,915 |
| RO Delhi | 19103 Service Tax | Credit | -83,03,254 |
| RO Delhi | 19105 Rajasthan/MP Tax | Credit | -12,012 |
| RO Delhi | 142 45 Security Deposits | Credit | -1,91,90,650 |
| RO Delhi | 18220 SALARY PAYABLE | Credit | -12,63,148 |
| RO Delhi | MISC RECOVERY FROM SALARY | Credit | -1,98,048 |
| RO Lucknow | 18220 SALARY PAYABLE | Credit | -17,67,574 |
| RO Lucknow | RECOV. SUPPILERS/OTHER | Credit | -11,42,35,160 |
| RO Lucknow | 18260 MISC. LIABILITIES | Credit | -76,18,008 |
| RO Lucknow | 18280 COIN ADJUSTMENT | Credit | -13,465 |
| RO Lucknow | 19400 ADVANCE FROM CUSTOMER | Credit | -31,99,50,854 |
| RO Lucknow | RECOVERIES - PAYROLL | Credit | -9,500 |
| RO Lucknow | SALARIES AND WAGES UNPAID | Credit | -21,156 |
| RO Lucknow | UNPAID TRAVELLING ALLOWANCE | Credit | -57,052 |
| RO Chennai | 18210 OTHER PAYABLES | Credit | -3,56,824 |
| Ro Bengaluru | 18260 MISC. LIABILITIES | Credit | -56,07,014 |
| BGP | 14502 LIABILITY FOR OTHER FIN.-PAYROLL | Credit | -1,87,27,969 |
| BGP | 145.02 LIABILITY FOR OTHER FIN MISC | Credit | -3,94,27,517 |
| BGP | 147.05 OTHER DEPOSITS | Credit | -4,24,53,800 |
| BGP | 14702 SEC DEP BLDG CONTRACTORS | Credit | -3,00,76,482 |
| BGP | 147.01 DEPOSIT FROM SUPPLIERS | Credit | -25,000 |
| BGP | 147.04 DEPOSIT TOWARDS RENT | Credit | -4,39,13,264 |
| BGP | 14601 Advance Recd. - Defence | Credit | -21,10,169 |
| BGP | 14601 Advance Recd. - Others | Credit | -3,22,38,978 |
| BGP | Salary Payable | Credit | -7,39,26,106 |
| BGP | 14509 CONTRACTOR LIABILITY CIVIL & OTHERS | Credit | -5,88,46,829 |
| BGP | Salaries Recoveries | Credit | -2,03,37,545 |
| BGP | 145.08 OTHER LIABILITIES-OTHERS | Credit | -1,47,27,010 |
| BGP | PL Encashment Liability for MKP | Credit | -22,16,605 |
| BGP | PL Encashment for Naini | Credit | -4,60,943 |
| BGP | 14106 Exp. & Services Other | Credit | -1,41,540 |
| BGP | 22506 TA ADVANCE SALARY RECOVERY | Credit | -73,609 |
| BGP | 226.06 ADV RECOVERABLE- OTHER MISC. REC. | Credit | -1,22,091 |
| BGP | 22506 TA Advance 4 G BGP | Credit | -32,646 |
| BGP | 22510 TA/DA ASCON PHASE 4 | Credit | -3,408 |
| NSU | 14245-Security Deposit Recd.- Appren. | Credit | -19,083 |
| NSU | 14750-EMD Cabal Laying | Credit | 7,38,787 |
| NSU | 14702-Security Deposit-Cable Laying | Credit | -57,35,141 |
| NSU | 14723-Security Deposit ASCON IV | Credit | -3,25,86,320 |
| RO Bhubaneswar | RECOVERIES OF TDS (I.TAX ) FROM SUPPLIERS | Debit | 2,60,003 |
| RO Bhubaneswar | SECURITY DEPOSIT FOR SALES TAX APPEAL FEES | Debit | 7,90,538 |
| RO Bhubaneswar | TAX DIFFERENCE AMOUNT REOVERABLE FROM CUSTOMER | Debit | 28,925 |
| Ro Hyderabad | 28570 EMD RECEIVABLE | Debit | 53,67,767 |
| Ro Kolkata | ADVANCE TO SUPPLIERS(PRIOR TO 31.03.2020) | Debit | 10,75,928 |
| RO Delhi | 28570 EMD RECEIVABLE (DELHI) | Debit | 1,72,26,379 |
| RO Delhi | 28312 STAFF IMPREST ADVANCE & LOANS | Debit | 1,95,330 |
| RO Delhi | 28315 TA RECOVERABLE | Debit | 2,36,809 |
| RO Delhi | 28316 OTHER ADVANCE RECOVERABLE (ANNUAL ADVANCE) | Debit | 2,42,000 |
| RO Delhi | 28570 EMD RECEIVABLE (BHOPAL) | Debit | 4,58,123 |
| RO Delhi | 29100 SECURITY DEPOSITS (BHOPAL) | Debit | 74,636 |
| RO Delhi | 29100 SECURITY DEPOSITS (DELHI) | Debit | 3,57,020 |
| RO Lucknow | RECOV.OF TA EXP-RLY-F | Debit | 16,78,207 |
| RO Lucknow | 28313 SALARY ADVANCE | Debit | 87,320 |
| RO Lucknow | 28315 TA RECOVERABLE | Debit | 5,482 |
| RO Lucknow | 28316 OTHER ADVANCE RECOVERABLE | Debit | 1,01,853 |
| RO Lucknow | ADVANCE RECOVERABLE SERVICES | Debit | 24,000 |
| RO Lucknow | ADVANCE TOWARDS PURCHASES-ROS | Debit | 1,99,65,600 |
| RO Lucknow | SECURITY DEPOSITE FDR/BG | Debit | 1,85,58,655 |
| RO Lucknow | SECURITY DEPOSIT PAID ACCOUNT | Debit | 25,21,137 |
| RO Lucknow | SGPGI-SD | Debit | 15,38,300 |
| RO Lucknow | PAY AEAR DUE FROM HQ | Debit | 81,596 |
| Ro Bengaluru | 29100 SECURITY DEPOSITS | Debit | 49,584 |
| BGP | 21872 CLAIMS RENT SHOPS & BLDG. | Debit | 10,94,22,102 |
| BGP | 225.05 ADV.TO CONTRACTORS | Debit | 4,71,49,437 |
| BGP | 228.01 CLAIMS AND EXPENSES RECOV INLAND | Debit | 3,44,48,482 |
| BGP | 230.04 SECURITY DEPOSIT PAID ACCOUNT | Debit | 3,67,30,470 |
| BGP | 225.07 OTHER ADVANCE RECOV. BGP | Debit | 2,35,76,835 |
| BGP | 21871 CLAIMS RENT QTRS. | Debit | 4,32,08,995 |
| BGP | 228.01 Electricity Data Centre | Debit | 9,40,243 |
| BGP | 230.03 DEPOSIT PAID-OTHERS (EMD) | Debit | 68,95,846 |
| BGP | 22507 OTHER ADVANCE RECOV. BGP PI | Debit | 31,29,927 |
| BGP | 22507, OTHER ADVANCE ASCON 4 | Debit | 18,74,820 |
| BGP | 22801 Stipend Claims | Debit | 29,76,528 |
| BGP | 22801 South Western Rly Leased Rent | Debit | 21,27,813 |
| BGP | 22801 Recoverable UTSTARCOM NGN Mfg. | Debit | 10,67,771 |
| BGP | 22801 RECOVERABLE FROM SSTPL - SAAS AADHAR | Debit | 29,500 |
| BGP | 22506 TA Adv. BGP VUSS MUSS | Debit | 9,09,826 |
| BGP | 21873 CLAIM GROUND RENT | Debit | 24,32,233 |
| BGP | 235.00 Prepaid Expenses | Debit | 9,98,922 |
| BGP | 23005 VAT Input Credit Revenue | Debit | 6,65,486 |
| BGP | 22513 MECHNOLINC WELDERS | Debit | 5,00,000 |
| BGP | 23303 Excise Duty Deposit A/c | Debit | 4,27,401 |
| BGP | 231.01 Deposit Towards Custom Duty | Debit | 3,65,627 |
| BGP | 14301 KARNATAKA SALES TAX PAYABLE | Debit | 3,53,690 |
| BGP | 226.13 OTHER ADVANCES RECOVERABLE | Debit | 16,20,479 |
| BGP | 230.03 DEPOSIT PAID-OTHERS (EMD) | Debit | 68,95,846 |
| BGP | 21873 CLAIMS GROUND RENT GST B2B | Debit | 2,94,519 |
| BGP | 222.00 Imprest Account | Debit | 2,55,489 |
| BGP | 226.03 ADV RECOVERABLE- FESTIVAL ADVANCE | Debit | 5,74,800 |
| BGP | 22506 TA/DA ASCON PHASE 4 | Debit | 38,086 |
| BGP | 226.05 ADV RECOVERABLE- CYCLE ADVANCE | Debit | 30,000 |
| BGP | 225.20 CANTEEN ADVANCE RECOVERABLE | Debit | 240 |
| BGP | 22506 TA Advance BGP | Debit | 71,960 |
| NSU | 23004-Other Deposits | Debit | 3,23,637 |
| NSU | 23034-Other Deposit-EMD | Debit | 51,89,911 |
| NSU | 23044-Security Deposit-KuBand | Debit | 19,99,823 |
ANNEXURE-B REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF ITI LIMITED
As referred to in paragraph 2 of the section on RSReport on Other Legal and Regulatory RequirementsRS of our report of even date to the members of the ITI Limited on the SFS for the year ended March 31, 2025, subject to the possible effects of the matters described in the section on RSBasis for Disclaimer of OpinionRS and Annexure C on the internal controls over financial reporting, we report, based on the information and explanations provided to us, that:
1. a) (A) The Company has not maintained adequate records showing full particulars, including quantitative details, location, asset transfers between units and asset coding system of PPE. The amounts reported under gross block and accumulated depreciation in the said note were pending reconciliation with general ledger including depreciation calculations/salvage value. Land records at various divisions/units need to be reconciled with respective documents held at corporate office/respective divisions/units and with respective asset registers, pending which we are unable to report on matters contained in paragraph 3(i)(a)(A) of the Order. Refer details listed in footnote to note 1 and 3 to SFS.
(B) The Company did not have any intangible asset with positive written-down value as at March 31,2025, subject to our comments in para 10 of the section RSBasis for Disclaimer of OpinionRS. Accordingly, reporting on matters contained in paragraph 3(i)(a)(B) of the Order cannot be made.
b) As reported in para 6 of the section RSBasis for Disclaimer of OpinionRS, we have not been furnished records in support of physical verification of PPE wherever carried out during the year and the immediate previous year. Further, the company has not carried out substantially physical verification of PPE at its major units, and accordingly, we are unable to comment on matters contained in paragraph 3(i)(b) of the Order.
c) Reference is invited to footnotes to notes 1 and 3, note 31(11)(b) and 31(20) to SFS which includes certain observations of the Management regarding incomplete land records which are under reconciliation with relevant documents/records and certain lease agreements executed by/ in favour of the Company are pending documentation/renewal. Accordingly, we are unable to comment on matters required in paragraph 3(i)(c) of the Order. Based on available information, title deeds of certain immovable properties detailed below were not held in the name of the Company are furnished below:
| Description of the Property | Gross carrying value (Rs. In lakhs) | Held in the name of | Whether promoter director of their relative or their employee | Period held - Indicate range, where appropriate | Reason for not being held in name of company (also indicate if in dispute) | Unit |
| Land | 6,090.31 | Title resumed by the Government of Kerala | No | Over 10 years | Company has disputed the resumption | Palakkad |
| Land | 9,282 | Absolute Sale Deed not yet executed | No | Over 10 years | Pending | Naini |
| Land | 11,620 | Absolute Sale Deed not yet executed | No | Over 10 years | Pending due to non-submission of proof of compensation paid by ITI Limited to the landowners at the time of land acquirement(as furnished by the company) | Raebareli |
| Land | Not ascertainable | Absolute Sale Deed not yet executed | No | Over 10 years | Out of 191.03 acres of land purchased from private owners, title deed for 41.77 acres land are not available with the management. (as reported by the Company) | Mankapur |
The Company operates its business across various Units/ Regional Offices(RSRORS)/Marketing, Services and Projects centers(RSMSPRS). Comprehensive data regarding the land and building for those offices were not furnished to us specifying own/lease land/premises, in the absence of which we are unable to comment on the compliance of the said clause in respect of those offices.
d) The Company has not revalued any of its PPE (including Right of Use assets) or intangible assets or both during the year. Accordingly, reporting on matters contained in paragraph 3(i)(d) of the Order is not applicable.
e) There are no proceedings that have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Accordingly, reporting on matters contained in paragraph 3(i)(e) of the Order is not applicable.
2. a) The Company did not carry out comprehensive physical verification of inventories covering all categories. We are unable to comment on
matters contained in paragraph 3(ii)(a) of the Order.
b) In the absence of data of inventories, sales, debtors, production and other details as of quarter ends being furnished to us by the Company, the same could not be compared with the corresponding data furnished by it to its banks where working capital facilities have been availed. Accordingly, we are unable to comment on matters contained in paragraph 3(ii)(b) of the Order.
3. During the year, the Company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties. Accordingly, reporting on matters contained in paragraph 3(iii)(a) to (f) are not applicable.
4. The Company has not granted any loans, made investments or provided any guarantees covered by the provisions of sections 185 and 186 of the Act. Accordingly, reporting on matters contained in paragraph 3(iv) are not applicable.
5. The Company has not accepted any deposits as applicable under the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other provisions of the Act and rules framed under. The Company based on its internal assessment that amounts due on account of retention money/other deposits on its various projects are covered under exempted deposits and accordingly, comply with section 73 to 76 of the Act. Reference to paragraph 27 of RSBasis for Disclaimer of OpinionRS, regarding share application money received by the Company and not allotted within the prescribed timelines in terms of the relevant provisions of the Act due to which we are unable to ascertain if these share application monies was to be treated as deposits under the said provisions of the Act. In the absence of clear ageing/documentation/reasons of non-repayment by the Company, we are unable to comment on such compliance. Hence, reporting under paragraph 3(v) of the Order could not be commented upon.
6. Maintenance of cost records have been prescribed by the Central Government under section 148(1) of the Act. In the absence of the necessary information, we are unable to comment whether such accounts and records have been made and maintained for the year under review.
7. a) The Company is not regular in depositing undisputed statutory dues including goods and services tax, provident fund, employeesRS state insur
ance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the respective appropriate authorities during the year. Arrears of such outstanding statutory dues as on the last day of the financial year for a period of more than six months from the date they became payable (to the extent ascertained from the CompanyRSs records pending reconciliation) are furnished below.
| Unit | Name of the Statute | Nature of the Dues | Amount (Rs.) | Period to which the amount relates | Due Date | Date of Payment |
| RO - Delhi (Delhi) | Employees Provident Fund Act, 1952 | PF | 6.7 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Delhi (Delhi) | Employees Provident Fund Act, 1952 | PF | 144.77 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Lucknow | Employees Provident Fund Act, 1952 | PF | 79.09 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Bhubaneshwar | Employees Provident Fund Act, 1952 | PF | 14.58 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Hyderabad | Employees Provident Fund Act, 1952 | PF | 5.64 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Kolkata | Employees Provident Fund Act, 1952 | PF | 6.26 | 2024-25 & Prior | Unascertainable | Unascertainable |
| NSU | Employees Provident Fund Act, 1952 | PF | 416.27 | 2024-25 & Prior | Unascertainable | Unascertainable |
| BGP | Employees Provident Fund Act, 1952 | PF | 687.43 | 2024-25 & Prior | Unascertainable | Unascertainable |
| Naini Unit | Employees Provident Fund Act, 1952 | PF | 2,754.22 | Unascertainable | Unascertainable | Unascertainable |
| Mankapur Unit | Employees Provident Fund Act, 1952 | PF | 3,153.04 | Unascertainable | Unascertainable | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 24.83 | Mar-23 | 15-Apr-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 28.11 | Apr-23 | 15-May-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 28.34 | May-23 | 15-Jun-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 26.35 | Jun-23 | 15-Jul-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 26.54 | Jul-23 | 15-Aug-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.67 | Aug-23 | 15-Sep-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.33 | Sep-23 | 15-Oct-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 26.2 | Oct-23 | 15-Nov-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.78 | Nov-23 | 15-Dec-23 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.18 | Dec-23 | 15-Jan-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 24.98 | Jan-24 | 15-Feb-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.18 | Feb-24 | 15-Mar-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 27.07 | Mar-24 | 15-Apr-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 27.23 | Apr-24 | 15-May-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 26.79 | May-24 | 15-Jun-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.06 | Jun-24 | 15-Jul-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.32 | Jul-24 | 15-Aug-24 | Unascertainable |
| Palakkad Unit | Employees Provident Fund Act, 1952 | PF | 25.01 | Aug-24 | 15-Sep-24 | Unascertainable |
| Rae Bareli Unit | Employees Provident Fund Act, 1952 | PF | 5,225.00 | Unascertainable | Unascertainable | Unascertainable |
| Srinagar Unit | Employees Provident Fund Act, 1952 | PF | 56.78 | Unascertainable | Unascertainable | Unascertainable |
| Srinagar Unit | Employees State Insurance Act, 1948 | ESI | 0.08 | Unascertainable | Unascertainable | Unascertainable |
| NSU | Employees State Insurance Act, 1948 | Interest payable on ESI | 5.54 | 2024-25 & Prior | Unascertainable | Unascertainable |
| Naini Unit | Central Excise Act, 1944 | Excise Duty | 0.44 | Unascertainable | Unascertainable | Naini Unit |
| RO - Lucknow | GST Acts and rules made thereunder | TDS on GST | 171.9 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Bengaluru | GST Acts and rules made thereunder | TDS on GST | 0.17 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Hyderabad | GST Acts and rules made thereunder | TDS on GST | 0.35 | 2024-25 & Prior | Unascertainable | Unascertainable |
| NSU | GST Acts and rules made thereunder | TDS on GST | 814.62 | 2024-25 & Prior | Unascertainable | Unascertainable |
| Naini Unit | GST Acts and rules made thereunder | TDS on GST | 62.14 | Unascertainable | Unascertainable | Unascertainable |
| NSU | GST Acts and rules made thereunder | Interest payable on GST | 14.51 | 2024-25 & Prior | Unascertainable | Unascertainable |
| NSU | Income Tax Act, 1961 | Interest payable on TDS | 8.63 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Delhi (Delhi) | PT Acts and rules made thereunder | PT | 0.01 | 2024-25 & Prior | Unascertainable | Unascertainable |
| NSU | PT Acts and rules made thereunder | PT | 0.14 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Delhi (Delhi) | Unascertainable | Rajasthan Tax | 0.12 | 2018-19 & Prior | Unascertainable | Unascertainable |
| RO - Delhi (Delhi) | Service Tax Act, 1994 | Service Tax | 83.03 | 2018-19 & Prior | Unascertainable | Unascertainable |
| RO - Lucknow | Income Tax Act, 1961 | TCS | 0.02 | 2023-24 | Unascertainable | Unascertainable |
| RO - Bhubaneshwar | Income Tax Act, 1961 | TCS | 0.07 | 2024-25 & Prior | Unascertainable | Unascertainable |
| BGP | Income Tax Act, 1961 | TCS | 0.1 | 2024-25 & Prior | Unascertainable | Unascertainable |
| NSU | Income Tax Act, 1961 | TDS | 41.19 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Delhi (Delhi) | Income Tax Act, 1961 | TDS - 194 C | 0.38 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Delhi (Delhi) | Income Tax Act, 1961 | TDS - 194 J | 23.93 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Lucknow | Income Tax Act, 1961 | TDS - 194 C | 94.45 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Bhubaneshwar | Income Tax Act, 1961 | TDS - 194 H | 0.01 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Bengaluru | Income Tax Act, 1961 | TDS - 194 Q | 0.00389 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Hyderabad | Income Tax Act, 1961 | TDS - 194 C | 0.05 | 2024-25 & Prior | Unascertainable | Unascertainable |
| RO - Hyderabad | Income Tax Act, 1961 | TDS - 192 B | 0.24 | 2024-25 & Prior | Unascertainable | Unascertainable |
| NSU | Income Tax Act, 1961 | TDS - 194 Q | 27.61 | 2024-25 & Prior | Unascertainable | Unascertainable |
| BGP | Income Tax Act, 1961 | TDS - 194 Q | 2.61 | 2024-25 & Prior | Unascertainable | Unascertainable |
| BGP | Income Tax Act, 1961 | TDS - 194 J | 29.51 | 2024-25 & Prior | Unascertainable | Unascertainable |
| BGP | Income Tax Act, 1961 | TDS - 194 C | 8.91 | 2024-25 & Prior | Unascertainable | Unascertainable |
| BGP | Income Tax Act, 1961 | TDS - 194 H | 0.0027 | 2024-25 & Prior | Unascertainable | Unascertainable |
| Naini Unit | Income Tax Act, 1961 | TDS | 152.65 | Unascertainable | Unascertainable | Unascertainable |
| Srinagar Unit | Income Tax Act, 1961 | TDS - 194 C | 0.39 | Unascertainable | Unascertainable | Unascertainable |
| Srinagar Unit | Income Tax Act, 1961 | TDS - 192 B | 0.17 | Unascertainable | Unascertainable | Unascertainable |
i. The above data is subject to our comments in paragraph 20 of the section on RSBasis for Disclaimer of opinionRS, wherein we have reported that the Company had not reconciled its books of account with its GST returns filed across all its registrations. The Company has netted off the GST payable accounts with GST input credit accounts and a net position pertaining to GST payable/receivable across all units/ divisions/ corporate office has been disclosed in the SFS vide note 10 to SFS. Accordingly, we are unable to ascertain registration wise closing GL balances. Further, GST payable on advances received by the Company on account of services, for the reasons stated could not be ascertained.
ii. All the above undisputed statutory dues are furnished to the extent identified/ ascertained and pending reconciliation of documents/ orders/ demand notices across all units/ RO/ Corporate office and pending reconciliation with the contingent liability disclosure vide note 31(11) to SFS and accordingly we could not independently validate the above said data regarding correctness/completeness.
b) According to the records of the Company, the following statutory dues were outstanding on account of disputes:
| Unit | Name of the statute | Nature of dues | Amount in Rs. Lakhs (As on 31.03.2025) | Period to which the dispute relates | Forum where the dispute is pending |
| BGP | Central Excise Act, 1944 | Nil rate of duty availed on Software disputed by CE dept (Net of Pre deposit Rs 200.00 lakhs) | 637 | 2003-2005 | Custom Excise & Service Tax Appellate Tribunal |
| BGP | Central Excise Act, 1944 | ED Demanded on R&D prototype modules for field trail. Stay extended (net of pre deposit Rs 30.00 lakhs) | 299 | 2006-07 | Custom Excise & Service Tax Appellate Tribunal |
| BGP | Central Excise Act 1944 | CENVAT Credit | 376 | 2007-2008 | Custom Excise & Service Tax Appellate Tribunal |
| MKP | UP VAT | Sales Tax | 264.89 | 1986-1989 | UP Government |
| MKP | UP VAT | Sales Tax | 15.32 | 1989-1996 | UP Government |
| MKP | Finance Act, 1994 | Service Tax | 6,456.79 | 2009-10 to 2013-14 | CESS Tax, Allahabad |
| MKP | Goods and Service Tax Act, 2017 | GST | 570.08 | 2017-18 & 2022-23 | Odhisha, Jharkand & Kolkata |
| MKP | Sales Tax Act | Sales Tax | 442.89 | Data not available | Data not available |
| NNI | Central Sales Tax (CST) | Demand of other dues and Additional Tax against FORM RSCRS | 1,013.98 | 2005-2006 | Joint Commissioner (Appeals), Commercial Tax, Allahabad |
| NNI | Central Sales Tax | Demand of Additional Tax against FORM RSCRS | 2.64 | 2007-08 | Additional Commissioner (Appeals), Commercial Tax, Allahabad |
| NNI | CST/ UPVAT/Entry Tax | Demand of other dues | 9.23 | 2008-09 | Addl Commissioner, (Appeals), Commercial Tax, Allahabad |
| NNI | Central Sales Tax | Demand of other dues and Additional Tax against FORM RSCRS | 2.12 | 2009-10 | Deputy Commissioner, Commercial Tax, Allahabad |
| NNI | CST/ UPVAT | Demand of other dues and Additional Tax against FORM RSCRS | 60.57 | 2010-11 | Additional Commissioner (Appeals), Commercial Tax, Allahabad |
| NNI | CST | Demand of other dues and Additional Tax against FORM RSCRS | 10.96 | 2011-12 | Tribunal, Commercial Tax, Allahabad |
| NNI | CST/ UPVAT | Demand of other dues and FORM RSCRS | 146.75 | 2012-13 | Deputy Commissioner Sector 14, Commercial Tax, Allahabad |
| NNI | CST/ UPVAT | Demand of Tax | 86.75 | 2013-14 | Deputy Commissioner Sector 14, Commercial Tax, Allahabad |
| PKD | Service Tax | Service Tax | 109.44 | 2010-2011 | CESTAT, Bengaluru |
| PKD | Service Tax | Service Tax | 140.34 | 2011-2012 | CESTAT, Bengaluru |
| PKD | Service Tax | Service Tax | 161.27 | 2011-2012 | CESTAT, Bengaluru |
| PKD | Service Tax | Service Tax | 2.76 | 2012-2013 | CESTAT, Bengaluru |
| PKD | Service Tax | Service Tax | 2.69 | 2012-2013 | CESTAT, Bengaluru |
| PKD | CST | Sales Tax | 28.04 | 2001-02 | High Court, Ernakulam |
| PKD | CST | Sales Tax | 504.13 | 2003-04 | KVAT Tribunal, Palakkad |
| PKD | Customs, Central Excise & Service Tax | Service Tax | 143.42 | 2016-17 & 2017-18 | Commissioner Appeals, Kochi |
| PKD | Customs, Central Excise & Service Tax | Service Tax | 3.93 | Apr 2015 to Jun 2 2017 | Commissioner Appeals, Kochi |
| PKD | Goods & Service Tax | Goods & Service Tax | 1855.77 | 2019-2020 | Commissioner Central Tax & Central Excise, Calicut |
| PKD | Goods & Service Tax | Goods & Service Tax | 7,054.14 | 2017-2018 &2018- 2019 | Commissioner Appeals, Kochi |
| RBL | Sales Tax Act | Sales Tax | 122.53 | 2010-11 | Trade Tax Tribunal, Lucknow |
| RBL | Sales Tax Act | Sales Tax | 87.39 | 2014-15 | Trade Tax Tribunal, Lucknow |
| RO BG | Kerala VAT Act, 2003 | Turnover Suppression | 26.47 | 2014-15 | Commercial Tax Officer, Thirpu- nithura |
| RO BG | Kerala VAT Act, 2003 | Turnover Suppression | 48.92 | 2013-14 | Appellate Assistant Commissioner, Commercial Taxes, Ernakulam |
| RO BG | Service Tax | Non-payment of Service Tax on Royalty payments received | 44.78 | 2014-15 | Commissioner of Central Excise |
| RO BG | Kerala VAT Act, 2003 | Turnover suppression | 65.87 | 2012-13 to 2014-15 | Dy Commr (Appeals) - Commercial Tax, Ernakulam |
| SNR | Sales Tax Act | Sales Tax | 733.36 | 1987-88 to 198990,1996-97,1999-00, 2002-03 | High Court, J & K |
| RO BBSR | Sales Tax | Sales Tax | 226.05 | 2013-14 | Commissioner of Sales Tax Bhubaneshwar |
| RBL | Goods & Service Tax | EXCESS ITC of GST CLAIMED | 1,634.03 | 2017-18 | High court -Lucknow |
| RBL | Goods & Service Tax | EXCESS ITC of GST CLAIMED | 225.46 | 2017-18 | High court -Lucknow |
| PKD | Goods & Service Tax | Goods & Service Tax | 928.37 | 2017-18,201819,2019-20,202021,2021-22,2022-23 & 2023-24 | Additional Director of the DGGI (Mumbai Zonal Unit), Kerala. |
| RO LKN | Sales Tax Act | Non receipt of C/D forms | 24 | Data not available. | Data not available. |
| NNI | Sales Tax Act | Non receipt of C/D forms | 1537.98 | Data not available. | Data not available. |
| RBL | Sales Tax Act | Non receipt of C/D forms | 2838.92 | Data not available. | Data not available. |
| RBL | Sales Tax Act | Sales Tax | 85.17 | 2017-18 | Data not available. |
| CRP | Income Tax | Income Tax | 691.72 | 2017-18 | Commissioner of Income Tax |
i. All the above disputed statutory dues are furnished to the extent identified/ ascertained and pending reconciliation of documents/ orders/ demand notices across all units/ RO/ Corporate office and pending reconciliation with the contingent liability disclosure vide note 31(11) to SFS and accordingly we could not independently validate the above said data regarding correctness/completeness.
8. There are no transactions which are not recorded in the books of account, which were surrendered or disclosed as income during the year in the tax assessments in the Income Tax Act, 1961 (43 of 1961).
9. a) The Company has not defaulted in the repayment of borrowings or payment of interest thereon to banks. However, the Company has defaulted
in repayment of instalments as detailed below:
| Nature of borrowing | Name of lender | Amount not paid on due date | Whether principal or interest | No. of days delay or unpaid | Remarks, if any |
| Term Loan | GOI, Ministry of Communications & IT Dept. of Telecommunications | Rs. 12,000 Lakhs (Principal) and Rs. 3,004.76 Lakhs (Interest - to the extent determined) | Both Principal and Interest | Upto 1095 days | NA |
b) The Company has not been declared a willful defaulter by any bank or financial institution or other lender.
c) The Company has not taken any term loans from banks during the year. Accordingly, reporting on matters contained in paragraph 3(ix)(c) of
the Order is not applicable.
d) On an overall examination of the SFS as at March 31,2025 of the Company, Company has used Rs. 1,06,043.01 lakhs funds raised on short
term basis to finance long-term assets of the company. We further draw attention to Note 31 to FS where in the current ratio of the Company is less than 1 (being 0.88) which is also an indication that short-term funds have been used to finance long-term assets of the company.
e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its associate. The Company had no
subsidiaries or joint ventures. Accordingly, reporting on matters contained in paragraph 3(ix)(e) of the Order is not applicable.
f) The Company has not raised loans during the year on the pledge of securities held in its associate company. The Company had no subsidiaries or joint ventures. Accordingly, reporting on matters contained in paragraph 3(ix)(f) of the Order is not applicable.
10. A a) The Company has not raised any monies during the year by way of initial or further public offer (including debt instruments). Accordingly,
reporting on matters contained in paragraph 3(x)(a) of the Order is not applicable.
b) The Company has received share application money of Rs. 5,900 lakhs from the Government of India on private placement basis as detailed
in note 31(15) of SFS. The provisions of sections 42 and 62 of the Act have not been complied with as reported in paragraph 27 of the section
RSBasis for Disclaimer of OpinionRS. This money was pending deployment for the intended purpose as at year end.
11. a) As represented to us, no material fraud by or on the Company has been noticed or reported during the year. Attention is invited to paragraph
25 of the section RSBasis for Disclaimer of OpinionRS regarding alleged irregularities observed in the receipt of the MOU referred to in the said note as well as in the WOs issued and cancelled by the Company on certain vendors in terms of an inter-office memo from the CVO to CMD dated July 25, 2023.
b) No report under sub-section (12) of section 143 of the Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this report.
c) Management has represented to us that there were no whistleblower complaints received by the Company during the year. However, this was not supported by records or certificates to the said effect from the relevant whistle blower redressal authorities, both at head office and units. Accordingly, we are unable to comment on matters contained in paragraph 3(xi)(c) of the said Order.
12. In our opinion the Company is not a Nidhi Company. Accordingly, reporting on matters contained in paragraph 3(xii) (a) to (c) of the said Order are not applicable.
The Company, being a Government Company, is exempted from the provisions of sections 177 and 188 of the Act, relating to transactions with other government companies in terms of MCA Notification No. GSR 463 (E) dated 05 th June 2015. There were no transactions during the year with India 13 Satcom Private Limited. Refer to note 31(6) of SFS Accordingly, reporting on matters contained in paragraph 3(xiii) of the Order is not applicable.
14. a) In our opinion, the CompanyRSs internal audit system is not commensurate with the size and nature of its business and needs strengthening.
b) The internal audit reports have not been received by us and accordingly not considered.
15. The Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, reporting on matters contained in paragraph 3(xv) of the said Order is not applicable.
16. a) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting
on matters contained in paragraph 3(xvi)(a) to (c) of the Order is not applicable.
b) In our opinion, there is no core investment company within the Group, as defined in the Core Investment Companies (Reserve Bank) Directions,
2016 and accordingly, reporting on matters contained in paragraph 3(xvi)(d) of the Order is not applicable.
17. The Company has incurred cash losses in the financial year and in the immediately preceding financial year amounting to Rs. 16,395.08 lakhs and Rs. 51,593.90 lakhs respectively.
18. There is no resignation of statutory auditors during the year. Accordingly, reporting on matters contained in paragraph 3(xviii) of the Order is not applicable.
19. Attention is invited to note 31(4) to SFS regarding the same prepared on a going concern basis and our comments as detailed under the heading "Material Uncertainty on Going Concern", notwithstanding that the Company has incurred losses during the current year and immediately preceding year, has significant liabilities to be discharged and its current ratio also being less than one.
The Company has incurred losses in terms of section 198 of the Act for the immediately preceding three financial years. Accordingly, since there were no profits in such years, section 135 of the Act is not applicable. Accordingly, reporting on matters contained in paragraph 3(xx)(a) & (b) are
20. not applicable.
21. The Company has an associate company wherein it holds 49.06% of equity share capital which is included in the consolidated financial statements. However, there were no qualifications or adverse remarks by the respective auditor in the Companies (AuditorRSs Report) Order (CARO) reports of the associate company. Accordingly, reporting on matters contained in paragraph 3(xxi) of the said Order are not applicable.
For B.K.RAMADHYANI & CO LLP Chartered Accountants Firm Registration No. 002878S/S200021
(CA Vasuki H S) Partner
Membership No. 212013 UDIN: 25212013BMLXLT6278
Place: Bengaluru Date: June 13, 2025
Annexure C referred to in Paragraph 2 (f) under the heading "Report on other legal and regulatory requirements" of our report to the members of ITI Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We were engaged to audit the internal financial controls over financial reporting of ITI Limited ("the Company") as of March 31,2025, in conjunction with our audit of the SFS of the Company for the year ended on that date.
ManagementRSs Responsibility for Internal Financial Controls
The CompanyRSs management is responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India (RSICAIRS). These responsibilities includethe design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyRSs policies, the safeguarding of its assets, the prevention anddetection of frauds and errors, the accuracy and completeness of the accounting records, andthe timely preparation of reliable financial information, as required under the Act.
AuditorsRS Responsibility
Our responsibility is to express an opinion on the CompanyRSs internal financial controls over financial reporting based on our audit conducted in accordance with the Guidance Note and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the ICAI.
Because of the matter described in Disclaimer of Opinion paragraph below, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
A companyRSs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of SFS for external purposes in accordance with generally accepted accountingprinciples. A companyRSs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of SFS in accordance with generally accepted accountingprinciples, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyRSs assets that could have a material effect on the SFS.
Disclaimer of Opinion
According to the information and explanation given to us, the Company has neither established nor tested its internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31,2025.
For B K Ramadhyani & Co. LLP
Chartered Accountants FRN: 002878S/S200021
(Vasuki H S) Partner
Membership No: 212013 UDIN : 25212013BMLXLT6278
Place: Bengaluru Date: June 13, 2025
" ANNEXURE D" TO INDEPENDENT AUDITORRSS REPORT
Observations sequel to directions issued by the Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013 indicating the areas to be examined by the Statutory Auditors during the course of audit of annual accounts of ITI Limited (Standalone) for the year 2024-25 (RSDirectionsRS) , which are to the best of our knowledge and relying on the information and explanations given to us:
| Sl. No. Areas Examined | AuditorRSs Observations |
| 1. Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post retirement benefits of the employees. This includes verifying valuation methodologies, ensuring consistency with Ind AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements | A. The Company has set up two trusts for administration of post retirement benefits of its employees- Provident fund and Gratuity. |
| B. The financial statements of the two trusts for the year have not been furnished to us. | |
| C. Management has represented to us that the investments of both the trusts have been recognized at cost and their fair valuation has not been evaluated. | |
| D. Accordingly, no comments can be made about the valuation approach, their reasonability, compliance with applicable regulations and whether there are any material deviations/ misstatements. | |
| 2. Whether the company has system in place to process all the accounting transitions through IT systemRS If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated. | The CompanyRSs accounting transactions are maintained on Tally Prime/ IMMS. Transactions relating to maintenance of asset (PPE) records, inventory, payroll, materials management, invoicing and billing are maintained in excel sheets at certain units and are susceptible to unauthorized changes and alterations. We are unable to comment on the integrity of these records maintained in excel or in other software without requisite audit trails/ edit logs. Reference is invited to para 2 of the section RSBasis for disclaimer of opinionRS and para 2(j)(vi) of the section on RSReport on legal and regulatory mattersRS |
| 3. Whether funds (grants/subsidy etc) received/receivable for specific schemes from Central/State Government or its agencies were properly accounted for /utilized as per applicable accounting standards or norms and whether the received funds were utilized as per its term and conditionsRS Whether accounting of interest earned on grants received has been done as per terms and conditions of the Grant. List the cases of deviation. | The Company received an aggregate sum of Rs. 4,496.42 lakhs in prior years as grant from the Central Government and has been disclosed in Note 13 to the SFS. We have not received requisite information as to whether this amount has been held in an escrow account/ lien free deposits as at year end, pending utilization. Pending receipt of the grant order received in prior years and the account in which the unutilized funds have been held, we are unable to comment whether the accounting of interest on grants received have been done as per terms and conditions of the grant. |
| 4. Whether the Company has identified the key Risks areasRS If yes, whether the Company has formulated any Risk Management Policy to mitigate these risksRS If yes, (a) whether the Risk management Policy has been formulated considering global best practicesRS (b) whether the Company has identified its data assets and whether it has been valued appropriatelyRS | Management has represented to us that it has implemented a comprehensive Risk Management Policy to identify, assess, and mitigate key risk areas across the organization and that the framework operates at four levels: |
| 1. URMC - Unit Level Risk Management Committee | |
| 2. ERMSC - ERM Steering Committee | |
| 3. ERMGC - Enterprise Risk Management Governing Committee or RMC -Risk Management Committee | |
| 4. ERM Board Level. | |
| However, copies of these policies and the minutes of the meetings of the relevant committees have not been furnished to us and accordingly no comments can be made in respect of matters sought in the Directions. |
For B.K.RAMADHYANI & CO LLP Chartered Accountants Firm Registration No. 002878S/S200021
| (CA Vasuki H S) | |
| Partner | |
| Membership No. 212013 | |
| UDIN:25212013BMLXLT6278 | |
| Place: Bengaluru | |
| Date: June 13, 2025 |
| 5. Whether the Company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Depart- | A. Reference is invited to paragraphs 26 and 27 of the section on RSBasis for Disclaimer of OpinionRS regarding non-compliance with SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations and certain provisions of the Act. |
| ment of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicableRS If not, the cases of deviation may be highlighted. | B. Management has not furnished us any details of any mechanisms established by it for monitoring compliance with various applicable rules and regulations (including checklists of regulations to be complied with, their periodicity, person(s) responsible for furnishing them, central coordinator who collects such data from individuals responsible, collates them and ensures their consistency and integrity including their reporting. Accordingly, we are unable to highlight any deviations from the rules and regulations of the authorities detailed in the Directions. |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.