To the Members of Cineline India Limited
Report on the Audit of the Standalone Ind AS
1 We have audited the accompanying Standalone Ind AS financial statements of CinelineIndia Limited (the Company) which comprise the Balance Sheet as at March 312021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information (Standalone Ind AS financialstatements).
2 In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 (the Act) in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2021 and its profit(including other comprehensive income) changes in equity and its cash flows for the yearended on that date.
Basis for Opinion
3 We conducted our audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the Auditors Responsibilities for the Audit of the StandaloneInd AS Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to ouraudit of the standalone Ind AS financial statements under the provisions of the Act andthe Rules thereunder; and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Emphasis of Matter
4 Attention is drawn to Note 43 of the Standalone Ind AS financial statements whichdescribes the impacts of COVID-19 Pandemic on the Standalone Ind AS financial statementsas also on business operations of the Company assessment thereof made by the managementof the Company based on its internal external and macro factors involving certainestimation uncertainties. Our opinion is not modified in respect .matter of this
Key Audit Matters
5 Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the year underaudit. We have determined that there is no key audit matter to be communicated in ourreport.
Information Other than the Financial Statements and
Auditors Report Thereon
6 The Companys management and Board of Directors is responsible for thepreparation of the other information comprising of the information such asDirectors Report including Annexures to Directors Report and such otherdisclosures included in the companys annual report excluding the standalone Ind ASfinancial statements and auditors report thereon (Other Information). Theother information is expected to be made available to us after the date of thisauditors report. Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.
In connection with our audit of the Standalone Ind AS financial statements ourresponsibility is to read the other information when it becomes available and in doingso consider whether the other information is materially inconsistent with the StandaloneInd AS financial statements or our knowledge obtained during the course of our audit orotherwise appears to be materially misstated.
When we read the other Information and if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charges withgovernance as required under SA 720 The Auditors responsibilities in relationto other Information.
Responsibility of Management for Standalone Ind
AS Financial Statements
7 The Companys Board of Directors is responsible for the matters stated insection 134(5) of the Act with respect to the preparation of these standalone Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under prescribed Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the standalone Ind AS financial statements managementis responsible for assessing the Companys ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financialreporting process.
Auditors Responsibilities for the Audit of the
Standalone Ind AS Financial Statements
8 Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone Ind AS financial statements. Our auditprocess in accordance with the SAs is narrated in "Annexure 1" to this report.
9 In view of restricted movements and partial lockdown imposed by the authorities toprevent the spread of COVID-19 Pandemic the audit finalization processes were carried outfrom remote locations i.e. other than the Office of the Company where books of accountand other records are kept based on the data/details made available and based onfinancial information/records remitted by the management through digital medium.
Being constrained we resorted to and relied upon the results of the related alternateaudit procedures to obtain sufficient and appropriate audit evidence for the significantmatters in course of our audit. Our report is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10 As required by the Companies (Auditors Report) Order 2016 (theOrder) issued by the Central Government in terms of sub-section (11) of section 143of the Act we give in the "Annexure 2" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
11 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 bestof 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 theCompany so far as it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit
Loss including Other Comprehensive Income the Statement of Changes in Equity and theCash Flow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid Standalone Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 3 of theCompanies (Indian Accounting Standards) Rules 2015.
e. On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of section 164 (2) of theAct.
f. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 3".
g. In terms of provisions of section 197(16) in our opinion and according to theinformation and explanations given to us the remuneration paid by the company to itsdirectors is not in excess of the limits laid down under section 197 of the Act.
h. With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us wereport as under:
(i) The Company has disclosed the impact of pending litigations on the financialsposition in its standalone Ind AS financial statements - Refer Note 44 to the StandaloneInd AS financial statements.
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For Khimji Kunverji & Co LLP
Firms Registration No.: 105146W / W-100621
Hasmukh B Dedhia
Partner (F - 033494)
Date: June 10 2021
Annexure 1 to the Independent Auditors Report
[referred to in para 8 titled "Auditors Responsibilities for the Audit ofthe Standalone Ind AS Financial Statements"]
As part of our audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error to design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficientand appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3) (i) ofthe Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Communicate with those charged with governance regarding among other matters theplanned scope audit findings and timing of the audit and significant internal controlincluding any significant that we identify during our audit. We also provide those chargedwith governance with a statement that we have complied with relevant ethical requirementsregarding independence and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence and where applicable relatedsafeguards.
From the matters communicated with those charged with governance we determine thosematters that were of statements of most the current period and are therefore the key auditmatters.
We describe these matters in our Auditors Report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public .interestbenefits of such communication
Annexure 2 to the Independent Auditors Report
[referred to in para 11 under Report on Other Legal and RegulatoryRequirements]
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a programme of physical verification of its fixed assets underwhich all fixed assets are verified in a phased manner over a period of three years. Inour opinion the periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets according to the information andexplanations given to us no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties (included under the head Investment Property) verified by us in course ofaudit are held in the name of the Company.
ii. The Company does not have any inventory. Accordingly the paragraph 3(ii) of theOrder is not applicable to the Company.
iii. The company has granted unsecured loans to parties covered in the registermaintained under section 189 of the Companies Act 2013
(a) According to information and explanations given to us the terms and conditions ofthe aforesaid loans are prima facie not prejudicial to the interest of the Company.
(b) (i) Loan amounting to Rs. 1349.72 lakhs as at year end given to a related partyhas stipulations for repayment of principal and interest.
(ii) Loan amounting to Rs. 12409.51 lakhs as at year end given to a subsidiaries isrepayable on demand.
(c) There are no overdue amounts of interest and principal in case of the aforesaidloans.
iv. According to the information and explanations given to us and the representationsmade in course of audit in our opinion the Company has complied with the provisions ofSections 185 and 186 of the Act with respect to the loans given investments madeguarantees given and security provided.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public during the year in terms of theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under.
vi. The Central Government has not specified maintenance of cost records under section148(1) of the Act in respect of the services provided by the company. Accordingly theparagraph 3(vi) of the Order is not applicable to the company.
vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Income-taxSales-tax Service tax Goods and Service Tax Cess and other statutory dues generallyhave been regularly deposited during the year by the Company with the appropriateauthorities. There are no undisputed statutory dues payable in respect to the abovestatues outstanding as at March 31 2021 for a period exceeding six months from the datethey became payable.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of Goods and Service TaxService tax Value added tax excise duty and duty of Customs which have not beendeposited as on March 31 2021 on account of any disputes.
viii. In our opinion and according to the information and explanations given to us andbased on the records of the Company the Company has not defaulted in the repayment ofloans or borrowings to financial institutions banks and government. The Company has notissued any debentures.
ix. According to the information and explanations given to us the term loans have beenapplied by the Company during the year for the purposes for which they were obtained. TheCompany did not raise money by way of initial public offer or further public offer(including debt instruments) during the year under report.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.
xi. According to the information and explanations give to us and based on ourexamination of the records of the Company it has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with
Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly reporting under paragraph 3(xii) of the Orderis not applicable.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company the transactions with the related parties arein compliance with the Sections 177 and 188 of the Act where applicable and the details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.
xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly reporting under paragraph 3(xiv) of the Order is not applicable tothe Company.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company it has not entered into non-cash transactionswith directors or persons connected with them. Accordingly reporting under paragraph3(xv) of the Order is not applicable to the Company.
xvi. According to the information and explanations provided to us based on the expertopinion obtained by the company it is not required to be registered under Section 45 - IAof the Reserve Bank of India Act 1934.
For Khimji Kunverji & Co LLP
Firms Registration No.: 105146W / W-100621
Hasmukh B Dedhia
Membership No.: 033494
Date: June 10 2021
Annexure 3 to the Independent Auditors Report
[referred to in paragraph 11(f) under Report on Other Legal and RegulatoryRequirements]
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of CinelineIndia Limited ("the Company") as at March 31 2021 in conjunction with our auditof the standalone Ind AS financial statements of the Company for the year ended on thatdate.
In our opinion considering the nature and size of the operations the Company has inall material respects an adequate internal financial controls system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at March 31 2021 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the ICAI.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the companys policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Companys internal financial control overfinancial reporting includes those policies and procedures that:
(a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone Ind AS financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and
(c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Companys assets that could havea material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
For Khimji Kunverji & Co LLP
Firms Registration No.: 105146W / W-100621
Hasmukh B Dedhia
Membership No.: 033494
Date: June 10 2021