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Sowbhagya Media Ltd.

BSE: 532025 Sector: Media
NSE: N.A. ISIN Code: INE826D01014
BSE 00:00 | 09 Mar Sowbhagya Media Ltd
NSE 05:30 | 01 Jan Sowbhagya Media Ltd
OPEN 2.16
PREVIOUS CLOSE 2.16
VOLUME 1
52-Week high 2.50
52-Week low 2.16
P/E
Mkt Cap.(Rs cr) 2
Buy Price 2.38
Buy Qty 10.00
Sell Price 2.27
Sell Qty 255.00
OPEN 2.16
CLOSE 2.16
VOLUME 1
52-Week high 2.50
52-Week low 2.16
P/E
Mkt Cap.(Rs cr) 2
Buy Price 2.38
Buy Qty 10.00
Sell Price 2.27
Sell Qty 255.00

Sowbhagya Media Ltd. (SOWBHAGYAMEDIA) - Auditors Report

Company auditors report

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 March2019 and the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March31 2019 its loss changes in equity and its cash flows for the year ended onthe date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) issued byICAI and specified under section 143(10) of the Companies Act2013.Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of 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 together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of ethics. We believe that the audit evidence we haveobtained 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 31stMarch 2017 and the transition date opening balance sheet as at 1st April 2016included in these Ind AS financial statements are based on the previously issuedstatutory financial statements prepared in accordance with the Companies (AccountingStandards) Rules 2006 audited by the predecessor auditor whose report for the year ended31st March 2017 and 31st March 2016 dated 27th May 2017and 25th May 2016 respectively expressed an unmodified opinion on thosefinancial statements as adjusted for the differences in the accounting principles adoptedby the Company on transition to the Ind AS which have been audited by us. Our opinion isnot modified in respect of these matters.

Information Other than the Financial Statements and Auditor's Report Thereon

The company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon . In connectionwith our audit of the financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the consolidated financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

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 state ofaffairs(financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's 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 in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the Ind AS financial statements. The procedures selecteddepend on the auditor's 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 the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's 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 theOrder. 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 and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in termsof Section 164(2) of the Act.

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 B".

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 disclosed the impact of pending litigations on its financialposition 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 forwhich there were any material foreseeable losses.

iii) The company has at it's board meeting held on 07th July 2018 has resolved toTransfer Unclaimed Dividend and the relevant Equity Shares to IEPF unless any claim isreceived by the company from the respective shareholders or their legal representatives orhires before 26/08/2018 pursuant to Section-124(6) of the Companies Act 2013 and Rule 6of Investor Education and Protection Fund Authority (Accounting Audit Transfer andRefund) Rules 2016. Whereas the company has transferred the Unpaid Dividend amount toIEPF but not the Equity Shares which is a Non-Compliance of the Provisions of theCompanies Act 2013. .

For KVSRY & ASSOCIATES

Chartered Accountants

Firm's Registration No. 08169S

Sd/-

(KARI.VENKATESWARLU)

Partner

Membership No. 207068

Place: Hyderabad

Date: 28.05.2019

Annexure A

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE

ON THE FINANCIAL STATEMENTS OF

SOWBHAGYA MEDIA LIMITED

Referred to in Paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our Report

i) a The Company has maintained proper records showing full particulars includingquantitative 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 themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such physical verification . c The Company does not have any immovableproperties.

ii) The Company does not have any inventories.

iii) According to the information and explanations given to us the Company has grantedunsecured advance / loan in the earlier years to one party listed in the registermaintained u/s 189 of the Act. Since the amount receivable is interest free and repayableon demand reporting under clause (iii) (b) (c) of the Order is not applicable to thecompany.

iv) During the year the company has not made any investment or given any guarantee orprovided any security. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct in respect of grant of loans.

v) According to the information and explanations given to us the Company has notaccepted any deposits from the public and accordingly the provisions of Clause (v) ofparagraph 3 of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

vi) The Central Government has not prescribed the maintenance of cost records undersection 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 authoritiesundisputed statutory dues including Income Tax Service Tax GST and other statutory duesapplicable to it.

According to the information and explanations given to us no undisputed amounts payablein respect of Income Tax Service Tax GST were in arrears as at 31st March2019 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 ofIncome Tax and GST which have not been deposited with the appropriate authorities onaccount 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 15292553 and penalty 15292553 FY 2010-11 & 2011-12 Appellate Tribunal Service Tax Hyderabad

viii) The Company does not have any borrowings from Financial Institutions Banks orDebenture holders during the year. Accordingly paragraph 3(viii) of the Order is notapplicable.

.ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

x) In our opinion and according to the information and explanations given to us nofraud by the Company and no fraud on the company by its officers or employees has beennoticed or reported during the course of audit.

xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

xii) Since the Company is not a Nidhi Company the provisions of Clause (xii) ofparagraph 3 of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

xiii) In our opinion and according to the information and explanations given to ustransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act and as required by the applicable accounting standards the details of thetransactions with the related parties have been disclosed in the notes to the financialstatements.

xiv) According to the information and explanations give 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.

xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him.

xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the reserved Bank of IndiaAct 1934.

For KVSRY & ASSOCIATES

Chartered Accountants

Firm's Registration No. 08169S

Sd/-

(KARI.VENKATESWARLU)

Partner

Membership No. 207068

Place: Hyderabad

Date: 28.05.2019

.