To the Members of PADMALAYA TELEFILMS LIMITED
Report on the Ind AS Financial Statements Qualified Opinion
We have audited the accompanying Ind AS Financial Statements of M/s PADMALAYA
TELEFILMS LIMITED ("the company"), which comprise the Balance Sheet as at
31st March, 2021, the Statement of Profit and Loss (including Other Comprehensive Income),
the Cash Flow Statement and the Statement of changes in equity for the year then ended,
and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at March
31, 2021, and Loss, and its cash flows for the year ended on that date.
Basis for Qualified Opinion:
We conducted our audit of the 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 Auditors Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Group in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the independence requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules made there under,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on the
financial statements.
Qualified Opinion paragraph:
1. The company has not paid the GST Liability up to 31-03-2021.
2. The company has not submitted physical verification reports of inventory
aggregating to Rs. 13.13 Lakhs, as at 31st march 2021 and Rs. 13.13 Lakhs (as of previous
year) and no provision for impairment has been made therein. In the absence of alternative
corroborative evidence, we are unable to comment on carrying value of inventory and
realizable value of the same.
The company has not submitted the confirmations of Trade Payables and Trade
receivables. In the absence of alternative corroborative evidence we are unable to comment
on the extent to which such balances are payable or receivable
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significant in our audit of the IND AS financial statements for the financial year 31st
March 2021. These matters were addressed in the context of our audit of the IND As
financial statements as a whole and in forming our opinion thereon and we dont provide
separate opinion on these matters.
Except the matters discussed in the Qualified Opinion paragraph, there are no other key
audit matters 2021 be discussed.
Information Other than the Financial Statements and Auditors Report Thereon: The
Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexure to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report thereon.
Our opinion on the 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
financial statements , our responsibility is to read the other information, and in doing
so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained during the course of our audit or otherwise appears
to be materially misstated. When we read the annual report, if we conclude that there is a
material misstatement therein, we are required to communicate the matter to those charged
with the governance.
Managements Responsibility for the 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 financial statements that give a true and fair view of the financial position,
financial performance, total 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 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 financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless 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 Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors 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 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 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 financial controls relevant to the audit in
order to design audit Procedures that is 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 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists;
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
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 financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
• Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the 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 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 matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the financial statements of
the current period and are therefore the key audit matters. We describe these matters in
our auditors report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("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.
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 except for the
points discussed in the qualified opinion paragraph.
b) In our opinion, proper books of accounts is maintaining by the company as required
by law so far as it appears from our examination of those books except for the points
given in the Basis of Opinion Paragraph.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014
except for the matters discussed in the Qualified Opinion Paragraph.
e) On the basis of the written representations received from the directors as on March
31, 2021 taken on record by the Board of Directors, none of the directors are disqualified
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 a modified opinion on the
adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) The Company has not appointed Company Secretary during the Year Under consideration
which is not in accordance with the provisions of The Act.
h) With respect to the other matters to be included in the Auditors 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. As per the information and explanations given by the Company have no pending
litigations on its financial position in its financial statements.
ii. The Company does not have any long term contracts including derivative contracts
for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT
Annexure referred to in Independent Auditors Report to the Members of M/s. PADMALAYA
TELEFILMS LIMITED on the Ind AS Financial Statements for the year ended 31st March 2021,
we report that:
i. The Company has no fixed assets. Accordingly, the provisions of this clause are not
applicable to the company.
ii. As per the information given by the management, the physical verification of
inventory has not been conducted during the year and the company is in the process of
conducting the same. Hence in the absence of corroborative evidence, we are unable to
comment upon the inventory shown in the balance sheet as at 31 March 2021 for which we
have given qualified opinion in our Basis of Qualified Opinion Paragraph.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms,
and Limited Liability partnerships or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Therefore, the provisions of Clause 3(iii),
(iii)(a), (iii)(b) and (iii)(c) of the said order are not applicable to the company.
iv. In our opinion and according to the information and explanations given to us, the
Company has not granted any loans or made any investments, or provided any guarantee or
security to the parties covered under 185 and 186 of the companies Act 2013 .Therefore,
the provisions of the clause 3(iv) of the said order are not applicable to the company.
v. The Company has not accepted any deposits from the public covered under Section 73
to 76 of the Companies Act, 2013 and rules framed there under to the extent notified.
vi. The Cost records as specified under Sec 148(1) of the Companies Act 2013 are not
prescribed to the Company.
vii. (a) According to the information and explanations given to us and based on the
records of the company examined by us, the company is generally regular in depositing the
undisputed statutory dues, including Provident Fund, Employees State Insurance,
Income-tax and other material statutory dues. However the company has not paid GST which
is qualified in our report and has been given in the Basis of Qualified Opinion Paragraph.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income-tax and other material statutory dues in arrears as at 31st March
2021 for a period of more than 6 months from the date they became payable except GST as
given in the qualified opinion paragraph.
(c) According to the information and explanations given to us and based on the records
of the company examined by us, there are no dues to Income Tax Act and Material Statutory
dues, which have not been deposited on account of any disputes.
viii. The company has not taken any loans from financial institutions or Banks or
Government and has not issued any debentures as at the balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer, further
public offer (including debt instruments) and term loans. Accordingly, the provisions of
this clause are not applicable.
x. According to the information and explanations given to us, no material fraud by the
company or on the company by its officers or employees has been noticed or reported during
the course of our Audit.
xi. The Company has not paid/provided for managerial remuneration during the year.
Accordingly the provisions of section 197 of the companies act, 2013 are not applicable.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable
to it, the Provisions of clause 3(xii) of the order are not applicable to the company.
xiii. The Company has not entered into transactions with related parties during the
year. Accordingly, the provisions of the clause 3(xiii) of the order are not applicable to
the company. The company has not appointed Company Secretary during the Year under
consideration, which is not in compliance with the provisions of Sec. 177 of The Companies
Act 2013.
xiv. According to the information and explanations given by the management, the company
has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year.
xv. The Company has not entered into non-cash transactions with its directors or
persons connected with him. Accordingly, the provisions of clause 3(xv) of the Order are
not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of The Reserve
Bank of India Act 1934. Accordingly, the provisions of clause 3(xvi) of the order are not
applicable to the Company.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/s
PADMALAYA TELEFILMS LIMITED ("the Company") as of March 31, 2021 in
conjunction with our audit of the financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls 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
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the 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 companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the 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 our audit opinion on the internal financial controls system over
financial reporting of the Company.
Meaning 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 Ind AS Financial Statements for external purposes in accordance with
generally accepted accounting principles. A Companys internal financial control over
financial reporting includes these policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detailed, 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 Ind AS Financial Statements in accordance with generally accepted
principles, and that receipts and expenditures are being made only in accordance with
authorization 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 Companys assets that could have a
material effect on the Ind AS Financial Statements.
Inherent Limitation of Internal Financial Controls over Financial Reporting
Because of the inherent limitation of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, Projections of any evaluation of the internal financial controls over financial
Reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate
Qualified Opinion:
According to the information and explanations given to us and based on our audit, the
following material weaknesses have been identified in the operating effectiveness of the
company internal financial controls over financial reporting as at March 31, 2021.
1. Balances of trade receivable, trade payables, other liabilities and loans &
advances are subject to confirmation.
2. Statutory Dues payments of GST are delayed and making provision for the same has
been delayed hence the company needs to strengthen internal control system in this regard.
3. Inventory Verification has not been conducted by the company during the year under
consideration.
4. The company has not appointed company secretary during the year also, which is non
compliance as per companies Act 2013.
A material weakness is a deficiency or a combination of deficiencies, in internal
financial control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the companys annual or interim financial statements will
not be prevented or detected on a timely basis.
In our opinion , except for the effects/ possible effects of the material weakness
described above under qualified opinion paragraph on the achievement of the objectives of
the control criteria, the company has in all material respects an adequate internal
financial control system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March, 2021 based on the
internal financial controls over financial reporting criteria established b the company
considering essential components of internal control stated in the Guidance note on Audit
of internal financial controls over financial reporting issued by the ICAI
We have determined, material weakness identified and reported above in determining the
nature, timing and extent of audit tests applied in our audit of the March, 31st 2021, IND
AS financial statements of the company and these material weaknesses affect our opinion on
IND AS financial statements of the company for the year ended 31st March, 2021.
| For P C N & Associates, |
| Chartered Accountants, |
| Firm Registration no: 016016S |
| Sd/- |
| K. Gopala Krishna |
| Partner |
| Membership No.: 0203605 |
| UDIN:21203605AAAAGO6220 |
| Place: Hyderabad |
| Date: 30/06/2021 |
+91-9892691696
