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| Textual Information(1) |
The Financial Statements 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 Financial Statements due to the significance of the matters described in the Basis for disclaimer opinion section of the said report and our inability to quantify/ascertain the impact of matters covered therein on the Financial Statements for the said financial year. Those comments and observations may continue to impact the Standalone Financial Results and Financial statements for the current year. |
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NA |
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Impact not ascertainable |
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Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
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Impact not ascertainable |
| Textual Information(6) |
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. |
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NA |
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Impact not ascertainable |
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Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(10) |
Impact not ascertainable |
| Textual Information(11) |
The Company has recognized the sale of a portion of its land and an old building at Electronic City Bangalore to Centre for Development of Telematics (C-Dot) 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 (KIADB) 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 Property, Plant and Equipment (PPE) is not satisfied. Had the Company not recognized the said sale, Assets held for sale would have reflected a balance of Rs. 9,081 lakhs, Other current assets would have been lower Rs. 4,152 lakhs (after adjusting other receivables by the Company, simultaneously to be settled without payment), Loss for the year and Total comprehensive income (loss) 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, Earnings per share would be lower at Rs.(3.56) as against the reported amount of Rs. (2.43). |
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Management does not accept to auditors view |
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No impact |
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Already given impact in the Results |
| Textual Information(15) |
Do not agree with management |
| Textual Information(16) |
We had in paragraph 7 under the head Basis for Disclaimer of Opinion 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. 13,174.90 lakhs had been held in Capital Work in Progress and not capitalized as Property, Plant and Equipment. During the year, the Company has capitalized as Property, Plant and Equipment (PPE)/ Investment Property, the new data center to an extent of Rs. 2,611.30 lakhs, NIFT building of Rs. 6,582.06 lakhs and other assets to an extent of Rs. 2,522.05 lakhs, all held in Capital Work in Progress as at April 01, 2024. Since this was a Prior period error within the meaning of Ind AS 8 - Accounting Policies, Changes in Accounting estimates and Errors, the Company ought to have restated its prior years 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. |
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NA |
| Textual Information(18) |
Impact not ascertainable |
| Textual Information(19) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
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Impact not ascertainable |
| Textual Information(21) |
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 an independent opinion on the same. Further, the auditors of Naini and Palakkad units have commented on the limitations in respect of title deeds of the units(Vinay Kumar & Co and Balaram & Nandakumar). |
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NA |
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Impact not ascertainable |
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An appropriate coding/cross-referencing system is in the process of development to enable proper correlation between the records. However, impact not ascertainable at this stage |
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Impact not ascertainable |
| Textual Information(26) |
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 in Bangalore Plant Unit 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 Property, Plant and Equipment. |
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NA |
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Impact not ascertainable |
| Textual Information(29) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(30) |
Impact not ascertainable |
| Textual Information(31) |
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 Investment property (IP), whether any amortization of the same is required, income derived therefrom, etc.) were not furnished to us. The original cost and written down value of such assets as at March 31, 2025, aggregated to Rs. 19,887.97 lakhs & Rs. 18,746.5 lakhs respectively. 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 and appropriate evidence, we are unable to ascertain impact if any on the Standalone Financial Results. |
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NA |
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Impact not ascertainable |
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Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(35) |
Impact not ascertainable |
| Textual Information(36) |
In terms of the Material Accounting Policies, 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 Impairment of Assets. Accordingly, we are unable to satisfy ourselves whether any provision for impairment of assets is required to be recognized in these Standalone Financial Results. |
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NA |
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Impact not ascertainable |
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Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
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Impact not ascertainable |
| Textual Information(41) |
Internally developed software by a unit of the Company for captive use has not been evaluated for recognition in terms of IndAS 38-Intangible Assets and measured, if required. In the absence of sufficient appropriate audit evidence, effect on Standalone Financial Results could not be ascertained. |
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NA |
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Impact not ascertainable |
| Textual Information(44) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
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Impact not ascertainable |
| Textual Information(46) |
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 s. Further, the Company did not obtain confirmation of balances / statements of account for its trade receivables. The Company has not assessed and recognized the quantum of expected credit loss in terms of IndAS 109 - Financial Instruments 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 1,79,340 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 is to be incurred in the process of achieving certification from its customers. In the absence of sufficient and appropriate evidence, we are unable to ascertain impact if any on the Standalone Financial Results. |
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NA |
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Impact not ascertainable |
| Textual Information(49) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(50) |
Impact not ascertainable |
| Textual Information(51) |
The Company has several old balances in various receivable accounts in the nature of deposits, claims recoverable and other receivables including certain receivables which are disputed amounting to Rs. 7015.11 lakhs which are long outstanding and with no adequate supportings. 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 - Financial Instruments. In the absence of sufficient and appropriate evidence, we are unable to ascertain impact if any on the Standalone Financial Results. |
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NA |
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Impact not ascertainable |
| Textual Information(54) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(55) |
Impact not ascertainable |
| Textual Information(56) |
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 and appropriate evidence, we are unable to ascertain impact if any on the Standalone Financial Results |
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NA |
| Textual Information(58) |
Impact not ascertainable |
| Textual Information(59) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(60) |
Impact not ascertainable |
| Textual Information(61) |
The Company did not carry out physical 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 Companys 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. |
| Textual Information(62) |
NA |
| Textual Information(63) |
Impact not ascertainable |
| Textual Information(64) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(65) |
Impact not ascertainable |
| Textual Information(66) |
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) aggregating to Rs. 11,157.61 lakhs, we have not obtained sufficient appropriate audit evidence and are unable to comments on its completeness/ accuracy. |
| Textual Information(67) |
NA |
| Textual Information(68) |
Impact not ascertainable |
| Textual Information(69) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(70) |
Impact not ascertainable |
| Textual Information(71) |
Reference is invited to note 6 to the Standalone Financial Results t 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. |
| Textual Information(72) |
NA |
| Textual Information(73) |
Impact not ascertainable |
| Textual Information(74) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(75) |
Impact not ascertainable |
| Textual Information(76) |
The Company has not carried-out any fair valuation assessment in terms of the IndAS 109 Financial Instruments 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 amortized costs and amortization/recognition of expenses/income of the differential between amortized cost and contractual amounts payable/receivable. |
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NA |
| Textual Information(78) |
Impact not ascertainable |
| Textual Information(79) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(80) |
Impact not ascertainable |
| Textual Information(81) |
The Companys contribution to ITI Employees Provident Fund Trust (PF Trust) 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. Consequent disclosures required in terms of IndAS 19 Employee Benefits have not been furnished. |
| Textual Information(82) |
NA |
| Textual Information(83) |
Impact not ascertainable |
| Textual Information(84) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(85) |
Impact not ascertainable |
| Textual Information(86) |
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. (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 been furnished to us. |
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NA |
| Textual Information(88) |
Impact not ascertainable |
| Textual Information(89) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(90) |
Impact not ascertainable |
| Textual Information(91) |
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. |
| Textual Information(92) |
NA |
| Textual Information(93) |
Impact not ascertainable |
| Textual Information(94) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(95) |
Impact not ascertainable |
| Textual Information(96) |
The Company has reported to the extent ascertained of its contingent liabilities/legal/arbitration cases and capital commitments as detailed in Standalone Financial Results. 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. |
| Textual Information(97) |
NA |
| Textual Information(98) |
Impact not ascertainable |
| Textual Information(99) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(100) |
Impact not ascertainable |
| Textual Information(101) |
The Company has not identified warranty obligations as a distinct performance obligation within the meaning of IndAS 115 Revenue from contracts with customers 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. |
| Textual Information(102) |
NA |
| Textual Information(103) |
Impact not ascertainable |
| Textual Information(104) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(105) |
Impact not ascertainable |
| Textual Information(106) |
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. |
| Textual Information(107) |
NA |
| Textual Information(108) |
Impact not ascertainable |
| Textual Information(109) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(110) |
Impact not ascertainable |
| Textual Information(111) |
Attention is invited to note 11 of the Standalone Financial Results 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 so as to bring out its capabilities vis--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. 1,695 crores. We cannot express any independent opinion on such revenue recognized. |
| Textual Information(112) |
NA |
| Textual Information(113) |
Impact not ascertainable |
| Textual Information(114) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(115) |
Impact not ascertainable |
| Textual Information(116) |
We understand that the Company entered into a Memorandum of Understanding (MOU) 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. 2.92 crores (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 Standalone Financial Results, if any, is not ascertainable at this stage |
| Textual Information(117) |
NA |
| Textual Information(118) |
Impact not ascertainable |
| Textual Information(119) |
Company has initiated action plan for necessary compliances. However impact is not ascertainable at this stage |
| Textual Information(120) |
Impact not ascertainable |
| Textual Information(121) |
The Company has reported certain non-compliances with various provisions of the SEBI Listing Regulations/Companies Act, 2013 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 Standalone Financial Results. |
| Textual Information(122) |
NA |
| Textual Information(123) |
Impact not ascertainable |
| Textual Information(124) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(125) |
Impact not ascertainable |
| Textual Information(126) |
The Company received share application money on January 23, 2025, amounting to Rs.5,900 lakhs from Government of India vide Department of Telecommunications order dated January 21, 2025, for certain capital projects specified in the said Order, which is pending allotment of equity shares by the Company as at March 31, 2025. The Company has not complied with applicable provisions of Companies Act 2013, in respect of allotment of shares in terms of section 39 of the said Act. |
| Textual Information(127) |
NA |
| Textual Information(128) |
Impact not ascertainable |
| Textual Information(129) |
Company has initiated action plan for necessary respective compliances. However impact is not ascertainable at this stage |
| Textual Information(130) |
Impact not ascertainable |