To
The Members of
Sowbhagya Media Limited
Report on the Ind AS Financial Statements Opinion
We have audited the accompanying Ind AS financial statements of Sowbhagya Media Limited
("the Company"), which comprise the Balance Sheet as at 31st March,
2019, and 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 the 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 standalone 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 March31, 2019 its loss, changes in equity and its cash flows for the year ended on
the date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by
ICAI and specified under section 143(10) of the Companies Act,2013.Our responsibilities
under those Standards are further described in the Auditors Responsibilities for the
Audit of 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 together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
The comparative financial information of the Company for the year ended 31st
March 2017 and the transition date opening balance sheet as at 1st April 2016
included in these Ind AS financial statements, are based on the previously issued
statutory financial statements prepared in accordance with the Companies (Accounting
Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended
31st March 2017 and 31st March 2016 dated 27th May, 2017
and 25th May, 2016 respectively expressed an unmodified opinion on those
financial statements, as adjusted for the differences in the accounting principles adopted
by the Company on transition to the Ind AS, which have been audited by us. Our opinion is
not modified in respect of these matters.
Information Other than the Financial Statements and Auditors Report Thereon
The companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the financial statements and our auditors report thereon.
Our opinion on the consolidated 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 consolidated financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
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 Ind AS financial statements that give a true and fair view of the state of
affairs(financial position), profit or loss (financial performance including other
comprehensive income), cash flows and changes in equity of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) prescribed under section 133 of the Act.
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 Ind AS
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based
on 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.
We conducted our audit of the Ind AS 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 Ind AS financial statements are free from material
misstatement. An audit involves performing procedures to obtain audit evidence about the
amounts and the disclosures in the Ind AS financial statements. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
misstatement of the Ind AS financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial control relevant to the
Companys preparation of the Ind AS financial statements that give a true and fair view in
order to 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 Companys Directors, as well as
evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Ind AS financial statements.
Report on Other Legal and Regulatory Requirements
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, we give in
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the
Order. As required by Section 143(3) of the Act, 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, the Cash Flow Statement and
Statement of Changes in Equity dealt with by this Report are in agreement with the books
of account.
d) In our opinion, the aforesaid Ind AS 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 as on 31st
March, 2019 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2019 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".
g) 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, 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 financial statements Refer Note No. 29 and 33 to the financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii) The company has at its board meeting held on 07th July, 2018 has resolved to
Transfer Unclaimed Dividend and the relevant Equity Shares to IEPF unless any claim is
received by the company from the respective shareholders or their legal representatives or
hires before 26/08/2018 pursuant to Section-124(6) of the Companies Act, 2013 and Rule 6
of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and
Refund) Rules, 2016. Whereas the company has transferred the Unpaid Dividend amount to
IEPF but not the Equity Shares which is a Non-Compliance of the Provisions of the
Companies Act, 2013. .
For KVSRY & ASSOCIATES
Chartered Accountants
Firms Registration No. 08169S
Sd/-
(KARI.VENKATESWARLU)
Partner
Membership No. 207068
Place: Hyderabad
Date: 28.05.2019
Annexure A
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE
ON THE FINANCIAL STATEMENTS OF
SOWBHAGYA MEDIA LIMITED
Referred to in Paragraph 1 under "Report on Other Legal and Regulatory
Requirements" section of our Report
i) a The Company has maintained proper records, showing full particulars, including
quantitative details and situation of fixed assets on the basis of available information.
b As explained to us, all the fixed assets have been physically verified by the
management in a phased periodical manner, which in our opinion is reasonable, having
regard to the size of the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification . c The Company does not have any immovable
properties.
ii) The Company does not have any inventories.
iii) According to the information and explanations given to us, the Company has granted
unsecured advance / loan in the earlier years to one party listed in the register
maintained u/s 189 of the Act. Since the amount receivable is interest free and repayable
on demand reporting under clause (iii) (b), (c) of the Order is not applicable to the
company.
iv) During the year the company has not made any investment or given any guarantee or
provided any security. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section 185 and 186 of the
Act in respect of grant of loans.
v) According to the information and explanations given to us, the Company has not
accepted any deposits from the public and accordingly the provisions of Clause (v) of
paragraph 3 of the Companies (Auditors Report) Order, 2016 are not applicable to the
Company.
vi) The Central Government has not prescribed the maintenance of cost records under
section 148(1) of the Act, for any of the activities rendered by the Company.
vii) a The Company is generally regular in depositing with appropriate authorities
undisputed statutory dues, including Income Tax, Service Tax, GST and other statutory dues
applicable to it.
According to the information and explanations given to us no undisputed amounts payable
in respect of Income Tax, Service Tax, GST were in arrears, as at 31st March
2019 for a period of more than six months from the date they became payable.
b According to the information and explanations given to us, there are no dues of
Income Tax and GST which have not been deposited with the appropriate authorities on
account of any dispute except other than disclosed hereunder:
| Name of statue |
Nature of dues |
Amount Rs. |
Period to which amount relates |
Forum where dispute is pending |
| Finance Act, 1994 |
Service Tax |
Tax 1,52,92,553 and penalty 1,52,92,553 |
FY 2010-11 & 2011-12 |
Appellate Tribunal, Service Tax, Hyderabad |
viii) The Company does not have any borrowings from Financial Institutions, Banks or
Debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not
applicable.
.ix) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) and term loans during the year. Accordingly,
paragraph 3(ix) of the Order is not applicable.
x) In our opinion and according to the information and explanations given to us, no
fraud by the Company and no fraud on the company by its officers or employees has been
noticed or reported during the course of audit.
xi) In our opinion and according to the information and explanations given to us,
managerial remuneration has been paid or provided in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies
Act.
xii) Since the Company is not a Nidhi Company, the provisions of Clause (xii) of
paragraph 3 of the Companies (Auditors Report) Order, 2016 are not applicable to the
Company.
xiii) In our opinion and according to the information and explanations given to us,
transactions with the related parties are in compliance with sections 177 and 188 of
Companies Act and as required by the applicable accounting standards the details of the
transactions with the related parties have been disclosed in the notes to the financial
statements.
xiv) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with directors or persons connected
with him.
xvi) In our opinion and according to the information and explanations given to us, the
Company is not required to be registered under section 45-IA of the reserved Bank of India
Act, 1934.
For KVSRY & ASSOCIATES
Chartered Accountants
Firms Registration No. 08169S
Sd/-
(KARI.VENKATESWARLU)
Partner
Membership No. 207068
Place: Hyderabad
Date: 28.05.2019
+91-9892691696
