We have audited the accompanying Standalone Financial Statements of RADAAN MEDIAWORKS INDIA LIMITED (“the
Company”), which comprises the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other
Comprehensive Loss), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary
of material accounting policies and other explanatory information (“the Standalone Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion section of our report, the aforesaid Standalone Financial Statements give the
information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2025, the profit and total comprehensive income, changes in equity and its cash flows for the year
ended on that date.
Basis for Qualified Opinion
1. Material Uncertainty relating to Going Concern
We draw attention to Note No. 20 of the Statement. The Company’s net worth has fully eroded and its current liabilities have
exceeded its current assets. In the current scenario, the Company is faced with liquidity crunch and has undisputed statutory dues to
the tune of Rs.330.06 lakhs that are yet to be paid as at March 31, 2025. Due to non- payment of statutory liabilities, there may be
potential non-compliance under relevant statutes and regulations. These events or conditions, along with other matters indicate that
a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. However, the
Company is confident of meeting its obligations in the normal course of its business and accordingly, the financial statements of the
Company have been prepared on a going concern basis.
2. Investments
We draw attention to Note No. 8 & 17 of the Statement relating to the Company’s investments in its wholly owned subsidiary
Radaan Media Ventures Pte Ltd amounting to Rs. 9.35 Lakhs as at March 31, 2025 and loans and advance to subsidiary amounting
to Rs.18.46 Lakhs. The investment in the subsidiary has not been tested for impairment as per IND AS 36.
3. Capital Work in Progress - Delay in completion of building under constructions
We draw attention to Note No. 49A regarding capital work in progress of Rs. 1919.58 Lakhs as at March 31, 2025, comprise of land
UDS consideration (including Registration and Stamp Duty and processing charges) of Rs.1061.96 Lakhs, Stage wise construction
consideration payment of Rs.264.82 Lakhs and interest on bank borrowing cost of Rs.592.80 Lakhs capitalized during construction
period.
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 are further described in the “Auditor’s Responsibilities for the Audit of the Standalone
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 Act 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 obtained by us is sufficient and
appropriate to provide a basis for our qualified opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone
Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters to be communicated in our report.
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Assessment of Provisions for taxation,
litigations and claims
As at March 31, 2025, the Company has contingent
liability to the tune of Rs. 610.37 lakhs. These were
estimated using a significant degree of management
judgement in interpreting the various relevant rules,
regulations and practices and in considering
precedents in various forums. (Note 50 of the Notes
to Accounts to the F inancials)
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The following audit procedures were performed in this area,
among others to obtain sufficient appropriate audit evidence:
Based on the procedures performed, it is concluded that the
management’s assessment of the outcome of pending
litigations and claims is appropriate.
Letters have been obtained from the Company regarding the
likely outcome and magnitude of and exposure to the
relevant litigation based on the previous orders passed by
appropriate authorities in similar matters.
Previous judgments made by relevant tax Authorities and
advice given by Company’s advisors on these matters were
reviewed
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b) Work In Progress Valuation
The closing balance of Work in Progress stands at
Rs.166.65 lakhs. This was identified as a Key Audit
Matter as it is a significant portion of the Financial
Statements.
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• Audit areas include the following but not restricted to:
• Evaluating the Design of Internal Controls relating to
recording of costs incurred and estimation of further
costs that are required for completion of the episodes
• Understanding the context of the Work in Progress in
terms of Number of episodes that have been shot and
yet to be aired. These numbers were justified by the
Internal Production team.
• Selected episodes to be aired on a sample basis and
tested the same for evaluating the costs involved
therein.
• Obtaining a closing statement of episodes in hand as at
March 31, 2025. Reviewed the same for any old
unaired episodes that require impairment.
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c) Investments in Subsidiary
The Company has an investment in an Overseas
Subsidiary named ‘Radaan Media Ventures Pte. Ltd’
in Singapore amounting to Rs.9.35 lakhs or SGD
20,000. The subsidiary has not been in full-fledged
commercial operation since financial year 2014 -15.
The carrying value of this investment was questioned
by Audit.
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The following audit procedures were performed in this
area:
• Calling for the Financials Statements of 31st March
2025.
• Audit questioned the existence and valuation of the
investment in view of no operations in the subsidiary
for the past five years.
• Annual Performance reports and filings in relation to
the foreign subsidiary were verified.
• Furthermore, the appropriateness of the disclosures
made in Note 37 to the financial statements was
assessed.
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d) Non-payment of Statutory Dues Payment
Audit observed that there were non- payments of
statutory payment dues.
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• Audit Procedure checked the undisputed statutory
payments dues remain unpaid.
• Management responded working capital as cause for
non-payment and affirmed the compliance once the
present situation improves.
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e) Delay in Unsecured Loan Repayments
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• Audit Procedure checked the revised
repayment terms with party negotiated.
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f) Revenue Recognition (IND AS 115)
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• Audit procedure involved review of the Company’s
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Recognition of revenue is complex due to certain
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IND AS 115 implementation process and key
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specific nature of customer contracts.
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judgments made by management, evaluation of
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The application of the standard on recognition of
revenue involves significant judgment and
estimates made by the management which
includes;
• Identification of performance obligations
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customer contracts in light of IND AS 115 on sample
basis and comparison of the same with management’s
evaluation and assessment of design and operating
effectiveness of internal controls relating to revenue
recognition.
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contained in contracts.
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• Based on the procedures performed, it is concluded
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• Determination of the most appropriate method
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that management’s judgments with respect to recognition
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for recognition of revenue relating to the
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and measurement of revenue in light of IND AS 115 is
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identified performance obligations.
• Assessment of transaction price and
• Allocation of the assessed price to the individual
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appropriate.
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performance obligations.
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Information Other than the Standalone Financial Statements and Auditors’ Report Thereon
The Company’s management and Board of Directors are responsible for the other information. The other information comprises the
information included in the Company’s Annual Report, but does not include the Standalone Financial Statements and our report
thereon.
Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the Standalone 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.
Management’s Responsibility for the Standalone Financial Statements
The Company’s 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 Standalone Financial Statements that give a true and fair view of the financial position,
financial performance, and cash flows of the Company in accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under section 133 of the Act, read with the rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application
of appropriate implementation and maintenance of 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 Standalone
Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company’s 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 is also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s 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 Standalone
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 Standalone 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 control relevant to the audit in order to design audit procedures that are
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 management’s 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 Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the Standalone 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 auditor’s 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 Standalone Financial Statements, including
the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the Standalone 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 Standalone 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 Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s 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 (Auditor’s Report) Order, 2020, issued by the Central Government of India in terms of sub¬
section (11) of section 143 of the Act (here in after referred to as the “Order”), and on the basis of such checks of the books
and records of the Company as we considered appropriate and according to the information and explanations given to us, we
give in the “Annexure A” , a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 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, and the Cash Flow Statement and statement of changes in the equity
dealt with by this Report are in agreement with the books of accounts.
(d) In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report
above, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133
of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2025 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 under section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by
the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor’s 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 Standalone Financial
Statements - Refer Note 50 to the Standalone Financial Statements
ii. The Company did 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.
iv. (a) Management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the
accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person(s) or entity(is), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries. (Refer Note.49(J) to the Standalone Financial Statements)
(b) Management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to
the accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries (Refer Note.49(J) to the Standalone Financial Statements), and
(c) Based on the audit procedures adopted by us, nothing has come to our notice that has caused us to believe that the
representations made by the Management under sub clause (a) and (b) above, contain any material misstatement.
v. The Company has not declared or paid any Dividend during the year.
vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its
books of account for the financial year ended March 31, 2025, which have a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all the transactions recorded in the accounting software.
Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with.
As the audit trail facility was not implemented during the previous year, preservation of audit trail as per the statutory
requirements for record retention is not applicable
For SRSV & Associates
Chartered Accountants
Firm Regn. No. 015041S
Place: Chennai
Dated: May 30, 2025 Sd/-
R Subburaman Partner
Membership No. 020562
UDIN: 25020562BNUKIC5275
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