We have audited the accompanying Standalone financial statements of ABM KNOWLEDGEWARE 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 Changes in Equity and Statement of Cash Flows for the year then ended, and
notes to the Standalone Financial Statements, including a summary of material accounting policies and other explanatory
information (hereinafter referred to as “the Standalone Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31,2025, profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”)
together with the ethical requirements that are relevant to our audit of the standalone financial statements under the
provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. 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.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone financial statements of the current period. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described below to be the key audit matters to be communicated in our
reports.
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Sr. No
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Key Audit Matters
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How our audit addressed the Key Audit Matter
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01
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Revenue Recognition(refer to the summary of material accounting policies in point 2.02
(b) and the disclosures in note 2.25 of the standalone financial statements)
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The Company derives significant portion of
its revenue from long-term projects.
Estimation of efforts is a critical estimate to
determine revenues for contract. This
estimate has a high inherent uncertainty as
it requires consideration of progress of the
contract, efforts incurred till date, efforts
required to complete the remaining contract
performance obligations. Some of the
contracts have complex terms and
conditions requiring management analysis,
judgement and application of guidance for
appropriate recognition of revenue and the
corresponding balances of accounts
receivables, unbilled revenues and
deferred revenues. In consideration of
certain key judgements and principles used
for recognition of revenue we have
identified this matter to be a key audit
matter.
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We have performed walkthrough and understood the
process and tested key controls associated with the
revenue recognition process.
We made enquiries of management and analysed
contracts on sample basis to evaluate whether revenue
was recognized in accordance with their terms and
conditions.
1. Assessed the Company’s accounting policies relating
to revenue recognition.
2. Checked the revenue recognition from contracts by
reading the supporting documents including
inspection of contracts / statement of work/purchase
orders from customers and documents evidencing
delivery, on a test check basis;
3. Checked, pre and post year end, sample of revenue
recognized and agreed with the supporting
documents;
4. Checked the Standalone Ind AS financial statement
disclosures in this regard.
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02
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Receivable from Government customers (refer to disclosures in note 2.05 & 2.10 of the
standalone financial statements)
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The Gross balance of trade receivables as
at March 31, 2025 amounted to INR
5,323.90/- Lakhs, which comprises of
receivable from Government INR
5,158.70/- lakhs.
The assessment of the recoverability of the
receivables from the Government
Customers, requires management to make
judgements and estimates to assess the
certainty regarding the recoverability from
Government Customer. Accordingly, this
has been identified as a Key Audit Matter.
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We evaluated the company’s processes and controls
relating to the monitoring of trade receivables and review of
credit risks of customers.
Our audit procedures include:
1. We evaluated management’s continuous assessment
of the assumption used in the recoverability
assessment. These considerations include whether
there are regular receipts from the customers, past
collection history as well as an assessment of the
customers’ credit ability to make repayments;
2. We have checked the subsequent collection made from
the Government debtors and discussed with
management the reasons of any long outstanding
amounts and correspondences with the customers;
3. We have checked the calculation of delay risk under
expected credit loss model.
4. Evaluated the standalone financial statement
disclosure in this regard.
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03
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Assessment of fair value of Quoted equity investment and Mutual Fund Investment
(refer to disclosures in note 2.09 of the standalone financial statements- Investment in Quoted
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Equity shares and Mutual Fund)
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The Company has quoted equity investment
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Our audit procedures included the following:
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and Quoted Mutual fund as at the Balance
sheet date. The investment is carried at fair
values, a fair valuation is done as per the
requirement of Ind AS- 109.
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1. Obtained an understanding from the management,
assessed and tested the design and operating
effectiveness of the Company’s key controls over
the fair valuation of quoted equity share and mutual
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The Fair value measurement of the Quoted
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fund.
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equity shares and Quoted Mutual Fund was a
key Audit matter because
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2. Assessed the carrying value/fair value calculations
of all individually material investments, where
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- The value of quoted equity shares and
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applicable, to determine whether the valuations
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mutual fund is material to the financial
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performed by the Company were within an
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statements, and
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acceptable range determined basis the fair
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- As at the Balance sheet date March 31,
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valuation reports and statement.
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2025, the value of quoted equity shares and
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3. Evaluated the adequacy of the disclosures made in
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mutual fund is amounted to INR 8819.09/-
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the Standalone Financial Statements.
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Lakhs representing 49.39% of total current
assets and 37.46 % of total equity. The value
of Quoted Equity shares and Mutual Fund
represents majority of the balance sheet
value.
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Based on the above procedures performed, we did not
identify any significant exceptions in the management’s
assessment in relation to the fair value of quoted equity
investments and mutual funds.
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Information Other than the Standalone Financial Statements and Auditor’s Report thereon
The Company’s Management and Board of Directors are responsible for the preparation of other information. The other
information comprises the information included in the Annual Report, for example Management Discussion and Analysis,
Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and
Shareholder’s Information, but does not include the standalone financial statements and our auditor’s report thereon. The
Annual report is expected to be made available to us after the date of this our auditor’s report. Our opinion on the
standalone financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
When we read Annual Report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charges with governance and take necessary actions as applicable under the relevant
laws and regulations.
Management’s and Those Charged with Governance Responsibilities for the Standalone Financial Statements
The Company’s Management and Board of Directors are 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 statements that give a true
and fair view of the financial position, financial performance including other comprehensive income, changes in equity and
cash flows of the Company in accordance with the Ind AS and other 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 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
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 are free from material misstatement, whether due to
fraud or error.
In preparing the standalone financial statements, the Management and Board of Director’s are responsible for assessing
the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal financial controls system (with reference to standalone
financial statement) in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of Management and Board of Director use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure, and content of the standalone financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial
Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the
Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matter communicated with those charge with governance, we determine those matters that were of most
significance in audit of standalone financial statement of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law and regulation preclude public disclosure about the matters or
when, in extremely rare circumstances, we determine that the matters should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Other Matter
The Ind AS standalone financial statements of the Company for the year ended March 31, 2024, included in these
standalone financial statements have been audited by predecessor auditor who expressed unmodified opinion on those
financial statement on May 24, 2024.
Report on Other Legal and Regu latory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of
India in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure A” a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, based on our audit we report that:
(a) We 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 far as it appears
from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of
Changes in Equity and the Cash Flow Statement 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 Ind AS specified under Section 133
of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31,2025 taken on record by
the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as a
director in terms of Section 164(2) of the Act.
(f) 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 B”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company’s Internal Financial Controls
over the financial reporting.
(g) In our opinion and to the best of our information and according to the explanations given to us, the managerial
remuneration paid or provided by the company to its directors during the year is in accordance with the
provisions of Section 197 read with Schedule V to the Act.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and 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 impact of pending litigations on its financial position in its standalone
financial statements. Refer Note 2.32 to the standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
iii. There has been no delay in transferring amount, required to be transferred to the Investor Education and
Protection Fund by the Company.
iv a. The Management has represented that, to the best of it's 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;
b. The Management has represented, that, to the best of it’s 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;
c. Based on such audit procedures that we have 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) of Rule 11(e), as provided under (a) and (b) above, contain any material
misstatement.
v. a. The final dividend proposed in the previous year, declared and paid by the Company during the year is in
accordance with Section 123 of the Act, as applicable.
b. The Board of Directors of the Company have proposed final dividend for the year, which is subject to the
approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in
accordance with Section 123 of the Act, as applicable.
vi. Based on our examination, which included test checks, where the Company has used accounting software
for maintaining its books of accounts for the financial year ended 31st March, 2025 which have a feature of
recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant
transactions recorded in the software system. Further, during the course of our audit we did not come across
any instance of the audit trail feature being tampered with and the audit trail has been preserved by the
company, as per statutory requirements for record retention.
(sd/-)
Rajesh Agrawal
For A P Sanzgiri & Co partner
Date: May 23, 2025 Chartered Accountants Membership No: 111207
Place: Mumbai Firm Reg. No. 116293W UDIN:25111207BMKSMC3807
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