Olatech Solutions Ltd Auditor Reports

To The Members of OLATECII SOLUTIONS LIMITED Report on the standalone Financial Statements

We have audited the accompanying standalone financial statements of OLATECII SOLIJ HONS LIMITED, which comprise the Balance sheet as at March 31, 2023, and the Statements of Profit and Loss, for the year then ended and a summary of the significant accounting policies and other explanatory information.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statement that give a true and fair view of the financial position, financial performance, changes in equity of the Company in accordance accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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 statements that give a true and fair view and re free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order issued under section 143(11) of the Act.

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or

f/rror. In making those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the standalone financial statements that give a true and fair view in order design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company s Directors, as well as evaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations gi\en to us, the aforesaid standalone financial statements give the information required by the Act in the manner so require aiu⁴ true and fair view in conformity with the accounting principles generally accepted in In ia, o tie s a e o .. * of the Company as at March 31,2023. and its profit, total comprehensive income, the changes in equity ana u. cash flows for the year ended on that date.

Report on Other Kcaal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit wc report that:

a) Wc have sought and obtained 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 lar as it appears from our examination of those books.

c) The Balance sheet, the Statements of Profit and Loss including Other Comprehensive Income,

• Statements of Changes in Equity and the Statements of Cash Flow dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.

- e) On the basis of the written representations received from the directors of the Company as on March 31,2023 from being appointed as a director in terms of Section 164(2) of the Act.

0 Reporting of Internal Financial controls is not applicable to the company on account of the notification of MCA dated 13^th June 2017 (G.S.R.583(E) amended the notification of the Government of India, In the ministry of corporate of affair, vide no G.S.R. 464(E) dated 05^th June . 2015

.^e) *??*?, ,_tc_P„_{rt h} ??, ?.,,

ow information and according ^ ^ ^ ?^{,hC b}* ?^f

* . i ^^ias. ^^SC^^0SC^ Ihc impact of pending litigations on its financial position in its

standalone financial statements.

The Company has made provision, as required under the applicable law or accounting

- ^{S an ar s>} ^^or Material loresccablc losses, if any, on long-term contracts including derivative

contracts.

in. There has been no delay in transferring amounts, required to be transferred, to the investor Educations and Protection Fund by the Company.

2. As required by the Companies (Auditors Report) Order, 2016 ("(the Order") issued by the Central Government in terms of Section 143(11) of the Act, is not applicable to the company.

Other Matter Paragraph

1. It is observed here that the name in the bank account facilities i.e current as well as loan accounts, still the old name of the company Ola Traders Pvt ltd is appearing and has not been changed. In our opinion, name of the account holder should be changed in the current name of the company, i.e. - Olatech Solutions Limited.

It has been clarified by the management that the name change would soon be applied for the existing accounts. Following is the details of such accounts-

a. ICICI Bank (Loan A/c Number- UPMUM00045920152)

b. HDFC Bank (Loan A/c Number- 130626112)

c. ICICI Bank (Current A/c Number- 041905002909)

d. Union Bank of India (Current A/c Number- 319001010036500)

For and On Behalf of M/s Sachin & Associates Chartered Accountants FRN: 015090C

FCA Sachin Kumar Yadav Senior Partner Membership no. 411062 UDIN: 23411062BGXQOS7995 Date:30/05/2023 Place:Lucknow

: ANNEXURE-A

PFPDKT ON THE INTERNAL FINANCIAL CONTROLS UNPFR CLAUSE (IL_QE-S^ CFrTlON 3 OF SECTION 143 OFTHE COMPANIES ACT. 2013 ("THE ACHT)

We have audited the internal financial controls over financial reporting of the

as of 31st March 2023 in conjunction with our audit of the standa o ‘

Company for the year ended on that date.

uAXTArrMPNrrS RESPONSIBILITY FOR INTFRNAT, FINANCIALCOKD1QLS

The Companys management is responsible lor

controls based on the internal control over financial report g ^ ^ _{Note on} Audit of

considering the essential components of internal control _{of charterc}d Accountants

Internal Financial Controls over Financial ^P?rtmg issu^dby _and maintenance of

of India (ICAI). These respons.b.ht.es indude *e d? g ^ _ensUring the orderly and

SUSP*™*—- -^{uired under}

the Companies Act, 2013.

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on the "

,epor,4 based on our audit. WeNote") and tire

Audi. of eternal Finanmt Condom _p J_riU _under ^ ,43(10) of the

standards ^on *^ud‘""⁸ ^applicable to an audit of internal financial controls, both

Cornpan.es Act, ? ^ _{Controls and}, _both issued by the Institute of Chartered

applicable to an.audit ofMemal F na _Guidancc ^ ^ _{wc comply wlU}, ethical

Accountants of^Ind > ^S"_{m lhe audit t0 obta}i„ reasonable assurance about whether adequate

- STnandat "controls financial reporfing was estabiished and maintained and ,f such

controls operated effectively in all material respects.

SSEr^2S:s=

Utc risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for omldi. opinion on the Companys internal financial controls system over financial reporting.

OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control over financial reporting includes those policies and proce ures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and air y ^rc ^ the transactions and dispositions of the assets of the Company; (2) provide reasonable assuranc ^ transactions arc recorded as necessary to permit preparation of financial ^s^^I"^cn ^company with generally accepted accounting principles, and that receipts and expend _{f the}

are Iving made only in accordance with authorizations of management _of

Company; and (3) provide reasonable assurance regar mg _couici have a material effect

unauthorized acquisition, use, or disposition of the Company s a *

on the financial statements.

TMHFRFNT LIMITATIONS of .MTEnMAI FINANCIAL_COtmQLS-Q^^ RFPORTING

Because of the inherent limitations of internal

the possibility of collusion or projections of any evaluation of the interna

to error or fraud may occur and not be detected. A MM ^ , * _{the risk} that the internal

financial controls over financial ,_naj_equ.,_le bicause of changes in conditions,

%?????die policies or procedures may deteriorate.

OPINION

. • II respects, an adequate internal financial controls

In our opinion, the _internal financial controls over financial reporting were

system over financial ^reP?^ ⁸ _baSed on the internal control over financial reporting

operating effectively as at 31st h ... _{the essen}tial components of internal control stated in

^^^id^^N^^on^udhro^lnternal Financial Confrols Over Financial Reporting issued by me

Institute of Chartered Accountants of India.

For M/s Sachin & Associates. Chartered Accountants FRN: 015090C

Date: 30-05-2023 Place: Lucknow

CA. Sachin Kumar YadaV-

(Partner)

Membership No.: 411062 UDIN: 23411062BGXQOS7995

• ANNEXUKE-B TO THE INDEPENDENT AUDITORS REPORT

Annexurc to the Independent Auditors Report of even date to the members of Olatcch Solutions Limited, on the financial statements for the year ended 31st March 2023.

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

(i) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of Intangible Assets.

(b) The major Property, Plant and Equipment of the company have been physically verified by the management at reasonable intervals during the year and no material discrepancies were noticed on such verification.

(c) According to the information and explanation given to us, the title deeds of the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the

. name of the company.

(d) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year.

(ii) The Company does not have any inventory and no working capital limits in excess of five crore rupees (at any point of time during the year), in aggregate, from banks or financial institutions on the basis of security of current assets. Accordingly, the provisions of clause 3(ii) of the Order are not applicable.

(iii) During the year the company has made investments in, provided any

guarantee or security or granted any loans or advances in the nature ot loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties:

(a) during the year the company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided security to any other entity

To Whom	The aggregate amount during the year	Balance outstanding at the balance sheet date
Parties other than subsidiaries, joint ventures and associates subsidiaries, joint ventures and associates.	NIL	NIL

No loan & advances given during the year, and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to parties other than subsidiaries, joint ventures and associates.

(b) According to the information and explanation given to us, the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the companys interest;

(c) schedule of repayment of the principal amount and the payment of the interest have not been stipulated and hence vve are unable to comment as to whether receipt of the principal amount and the interest is regular;

(d) According to the information and explanation given to us, no amount is overdue in these respect;

(e) According to the information and explanation given to us, in respect of any loan or advance in the nature of loan granted which has fallen due during the year, none has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties;

(f) The company has granted loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment, required details in respect thereof are as below

The aggregate amount	Percentage thereof to the total loans granted	Aggregate amount of loans grunted to promoters, related parlies as defined in clause (76) of section 2 of the Companies Act, 2013
12,82,422.10	31.19%	4,00,000.00	Director
12,82,422.10	38.99%	5,00,000.00	Shareholder

(iv) According to the information and explanation given to us, the company has complied with requirements of section 185 and 186 in respect of loans, investments, guarantees or security made by it during the year under audit;

(v) The Company has not accepted any deposits or amounts which arc deemed to be deposits under the directives of the Reserve Hank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder, where applicable. Accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) To the best of our knowledge and belief, the Central Government has not specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Companys products/ services.

Accordingly, the provisions of clause 3(vi) of the Order are not applicable.

(vii) (a) The Company is regular in depositing undisputed statutory dues including Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues, as applicable, with the appropriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.

(b) There are no dues in respect of Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues that have not been deposited with the appropriate authorities on account of any dispute.

(viii) According to the information and explanation given to us, company has no transactions, not recorded in the books of account have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961);

(ix) (a) In our opinion, the company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year;

(b) Company is not declared wilful defaulter by any bank or financial institution or other lender;

(c) According to the information and explanation given to us, there is no term loan.

(d) According to the information and explanation given to us, funds raised

on short term basis have not been utilised for long term purposes;

(c) According to the information and explanation given to us, the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures;

(f) The Company has no borrowing, including debt securities during the year;

(x) (a) The Company has raised moneys by way of initial public offer or further public offer (including debt instruments) during the year;

(b) According to the information and explanation given to us, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year.

(xi) (a) According to the information and explanation given to us, any fraud by the company or any fraud on the company has not been noticed or reported during the year;

(b) According to the information and explanation given to us, no report under sub-section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government;

(c) According to the information and explanation given to us, no whistle-blower complaints, received during the year by the company;

(xii) Company is not a Nidhi company, accordingly provisions of the Clause 3(xii) of the Order is not applicable to the company:

(xiii) According to the information and explanations given to us, we are of the opinion that all transactions with related parties are in compliance with Section 177 and 1SS of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the Accounting Standards and the Companies Act, 2013.

(xiv) According to the information and explanations given to us, the company has no internal audit system;

(xv) According to the information and explanations given to us, we are of the opinion that the company has not entered into any non-cash transactions with directors or persons connected with him and accordingly, the provisions of clause 3(xv) of the Order is not applicable.

(xvi) According to the information and explanations given to us, we are of the opinion that

the company is not required to be registered under section 45-IA of the Reserve Dank of India Act, 1934 and the company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Dank of India, accordingly the provisions of clause 3(xvi) of the Order are not applicable;

(xvii) According to the information and explanations given to us and based on the audit procedures conducted we arc of opinion that the company has not incurred any cash losses in the financial year and the immediately preceding financial year;

(xviii) There has been no resignation of the statutory auditors during the year and accordingly, the provisions of clause 3(xviii) of the Order is not applicable;

(xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Doard of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that company is incapable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

(xx) The provisions of Section 135 towards corporate social responsibility are not applicable on the company. Accordingly, the provisions of clause 3(xx) of the Order is not applicable

For and On Behalf of M/s Sachin & Associates Chartered Accountants FRN: 015090C /

/G

FCA Sachin Kumar Yamw Senior Partner Membership no. 411062 UDIN: 23411062BGXQOS7995 Place: Lucknow Date: 30/05/2023

SIGNIFICANT ACCOUNTING POLICIES & NOTES ON FINANCIAL STATEMENTS

A. Significant Accounting Policies

1. Basis of accounting:-

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

The financial statements have been prepared under the historical cost convention on accrual basis.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the managements best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3. Revenue Recognition: -

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

4. Property, Plant & Equipment :-

Property, Plant & Equipment including intangible assets are stated at their original cost of acquisition including taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

5. Depreciation :-

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

6. Foreign currency Transactions: -

Transactions arising in foreign currencies during the year are converted at the rates closely approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign currency are restated at the year-end exchange rates. All exchange rate differences arising from conversion in terms of the above are included in the statement of profit and loss.

7. Investments :-

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.

8. Inventories

Inventories are valued as under:-

1. Inventories : Lower of cost(FIFO/specific cost/Weighted avg) or net realizable

value

2. Scrap : At net realizable value.

9. Borrowing cost:-

Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily takes a substantial period of time to get ready for its intended uses or sale. All other borrowing costs are charged to revenue in the year of incurrence.

10. Taxes on Income:-

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of deferred tax is reviewed to reassure realization.

11. Provisions, Contingent Liabilities and Contingent Assets:- (AS-29)

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for:-

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.

General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

(B) Notes on Financial Statements

1. The SSI status of the creditors is not known to the Company; hence the information is not given.

2. Salaries includes directors remuneration on account of salary Rs. 1,41,59,930 /-.

3. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been taken at their book value subject to confirmation and reconciliation.

4. Payments to Auditors:

Auditors Remuneration	2022-2023
Audit Fees	40000

5. Loans and Advances are considered good in respect of which company does not hold any security

other than the personal guarantee of persons.

6. No provision for retirement benefits has been made, in view of accounting policy No. 11. The impact of the same on Profit & Loss is not determined.

7. Advance to others includes advances to concerns in which directors are interested:

Name of Concern	Current Year Closing Balance
AMIT SINGH	4,00,000.00

8. Related Party disclosure as identified by the company and relied upon by the auditors:

(A) Related Parties and their Relationship (I) Key Management Personnel

1. AMIT SINGH

2. SHER BAHADUR SINGH

3. NAVNEET KAKKAR

(It) Relative of Key Management Personnel

1. MEERA SINGH

2. CINDRELA KAKKAR

3. AMRITA SINGH

(III) Enterprises owned or significantly influenced by Key Management personnel or their relatives 1.

Transactions with Related parties

	Transactions during the year
		Current Year
Particulars	Key Management Personnel	Relative of Key Management Personnel
Remuneration Paid	Rs. 35,81,100.00	Rs. 4,50,400.00

9. Additional Regulatory Information/disclosures as required by General Instructions to Schedule III to the Companies Act, 2013 are furnished to the extent applicable to the Company.

10. Previous year figures have been regrouped/rearranged wherever necessary.

11. WIP includes the site development expenses in course of engagement to provide data centre, telecom and IT solutions in the OSS-BSS segment and usually will be completed in less than 12 months hence categorized as WIP under current assets.

Signature to notes 1 to 11

In terms of Our Separate Audit Report of Even Date Attached.

For, M/s. Sachin & Associates Limited Chartered Accountants

For, Olatech Solutions

 

FCA. Sachin Kumar Yadav	Amit Singh	Navneet kakkar
Partner	Director	Director
Membership No: 411062	DIN:06582830	DIN: 08329635
FRN:015090C