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Gradiente Infotainment Ltd.

BSE: 590126 Sector: Media
NSE: N.A. ISIN Code: INE361K01017
BSE 00:00 | 29 Oct Gradiente Infotainment Ltd
NSE 05:30 | 01 Jan Gradiente Infotainment Ltd
OPEN 1.05
PREVIOUS CLOSE 1.10
VOLUME 3306
52-Week high 1.10
52-Week low 0.00
P/E 12.22
Mkt Cap.(Rs cr) 2
Buy Price 1.05
Buy Qty 425.00
Sell Price 1.10
Sell Qty 336.00
OPEN 1.05
CLOSE 1.10
VOLUME 3306
52-Week high 1.10
52-Week low 0.00
P/E 12.22
Mkt Cap.(Rs cr) 2
Buy Price 1.05
Buy Qty 425.00
Sell Price 1.10
Sell Qty 336.00

Gradiente Infotainment Ltd. (GRADIENTEINFO) - Auditors Report

Company auditors report

To

The Members of

M/s GRADIENTE INFOTAINMENT LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Gradiente InfotainmentLimited ("the Company") which comprise the Balance Sheet as at 31 March 2020the Statement of Profit and Loss including Other Comprehensive Income the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included inthe audit report under theprovisions of the Act and the Rules made there under. We conducted our audit of the Ind ASfinancial statements in accordance with the Standards on Auditing issued by the Instituteof Chartered Accountants of India as specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Ind AS financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of theInd AS financial statements. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our audit opinion ontheInd AS financial statements.

Basis of Qualified Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe 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 independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics .We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our Qualified audit opinionon the financial statements for the reason of:

i) No Provision has been made in the accounts for the non moving trade receivableswhich are outstanding for the period exceeding six months. Also the Company has notmentioned the facts in its notes to accounts and didn't confirm the balances from parties.

ii) As described in note no.2.1 in financial statements company is unable to providethe sufficient information and explanations to assess whether any impairmet in valueshould be recognize regarding Intangible assets under development which valued atRs.120055400 as at 31st March 2020 on which we are unable to adopt any othersatisfactory procedures to determine whether any impairment in value should be made infinancial sattements in respect of them.

iii) As described in note no.2.3 in financial statements Rs.203298754 has been dueto advances given to suppliers as years back and for that no confirmation of parties isavailable and which are doubtful of recovery.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the matters described in the qualified opinion paragraph theaforesaid financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2020 and

(b) in the case of the Profit and Loss the Profit for the period ended on that date

(c) In the case of the Cash Flow Statement Cash Flows for the period ended on thatdate. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. 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 purpose 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 Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under section 133of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directors as on 31 March2020 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2020 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure 2" to this report;

(g) With respect to the other matters to be included in the Auditor's 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:

(i) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

(ii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and

for Karumanchi & Associates
Chartered Accountants
Firm Reg No: 001753S
K. Peddabai
Partner
M No: 025036
UDIN: 20025036AAAADX2700

ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE

(i) a. The Company has not maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b. All fixed assets have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

c. According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the Company.

(ii) The company does not have any inventory hence this clause is not applicable.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013.Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us theCompany has not advanced loans to directors / to a company in which the director isinterested to which the provisions of section 185 of the Companies Act 2013 apply andhence not commented upon. In our opinion and according to the information and explanationsgiven to us the Company has made investments and given guarantees / provided securitywhich is in compliance with the provisions of section 186 of the Companies Act 2013.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) In respect of business activities of the company maintenance of cost records hasnot been specified by the central government under section 148(1) of the companies Act2013.

(vii) a) The Company is not regular in depositing with appropriate authoritiesundisputed statutory dues applicable to it.

b) According to the information and explanations given to us undisputed amountspayable in respect of statutory dues outstanding at the year end for a period of morethan six months from the date they became payable.

c) According to the information and explanations given to us there are no dues ofincome tax or goods and services tax or duty of customs or cess that have not beendeposited on account of any dispute.

(viii) In our opinion and according to the information and explanations given by themanagement the Company has defaulted in repayment of loans or borrowings to banks. Theparticulars of which are disclosed in paragraph 12.1 of Notes to the accounts of thecompany. The Company did not have any debenture holders during the year.

(ix) In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised byway of term loans for thepurposes for which they were raised. The Company has not raised any money by way ofinitial public offer / further public offer / debt instruments and hence not commentedupon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe Company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions withdirectors or persons connected with himas referred to in section 192 of the Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofsection 45- IA of the Reserve Bank of India Act 1934 are notapplicable to the Company.

for Karumanchi & Associates
Chartered Accountants
Firm Reg No: 001753S
K. Peddabai
Partner
M No. 025036
UDIN: 20025036AAAADX2700
Place: Hyderabad
Date: 03-12-2020

ANNEXURE 2TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE

Report on the Internal Financial Controls under Clause(i)of sub-section 3of Section143ofthe CompaniesAct2013(‘the Act')

We have audited the internal financial controls over financial reporting of GRADIENTEINFOTAINMENT LIMITED(‘the Company') as of 31March2020 in conjunction with our auditof the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's 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 Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's 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 deemed to beprescribed under Section 143(10)of the Companies Act 2013to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively 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 financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reportingand thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations of theManagement and directors of the Company; and (3)provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the 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 notbe detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

for Karumanchi & Associates
Chartered Accountants
Firm Reg No.001753S
K. Peddabai
Partner
M.NO. 025036
UDIN: 20025036AAAADX2700
Place : Hyderabad
Date: 08-12-2020

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