INDEPENDENT AUDITORS’ REPORT

Report on the audit of the financial statements

Opinion [Heading to be changed in case of Modification of Opinion]

We have audited the accompanying financial statements of _____________ (“the entity”), which comprise the
balance sheet as at March 31, 2020, and the Statement of Profit and Loss and Statement of Cash Flows (Include
cash flows only if the Entity is a Level I enterprises as per the Accounting Standards issued by ICAI) for the year
then ended, and notes to the financial statements, including a summary of 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
financial statements give the information required by the applicable laws and regulations to the entity 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 Entity as at March 31, 2020, and its profit (or Loss)* and cash flows for the
year ended on that date.

Basis for opinion [Heading to be changed in case of Modification of Opinion]

We conducted our audit in accordance with the standards on auditing issued by the Institute of Chartered
Accountants of India. Our responsibilities under those Standards are further described in the auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent of the Entity in
accordance with the code of ethics issued by the Institute of Chartered Accountants of India (ICAI) together with
the ethical requirements that are relevant to our audit of the financial statements 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.

Material Uncertainty Related to Going Concern (include only is applicable)

The Entity's net worth is negative and it continue incur losses. We were informed that the Entity is in the process
of identifying alternative business plans which in the opinion of the management will enable the Entity to have
profitability and to have a turnaround. The Entity is also in the process of identifying strategic business partners
and alternative business plans to improve the performance of the Entity. The Entity’s ability to generate positive
cash flows depends on the successful implementation of such alternative business plans.

The above factors cast a significant uncertainty on the Entity’s ability to continue as a going concern. Pending the
resolution of the above uncertainties, the Entity has prepared the aforesaid statement on a going concern basis.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.

Reporting of key audit matters as per SA 701, Key Audit Matters are not applicable to the Entity as it is not a
listed company.

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Emphasis of Matter

As more specifically explained in Note 2 to the financial statements, the entity has made a detailed assessment
of its liquidity position for the next year and the recoverability and carrying value of its assets comprising
property, plant and equipment, investments, inventory and trade receivables. Based on current indicators of
future economic conditions, the entity expects to recover the carrying amount of these assets. The entity
continues to evaluate them as highly probable considering the orders in hand. The situation is changing rapidly
giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19
pandemic which may be different from that estimated as at the date of approval of the financial results. The entity
will continue to closely monitor any material changes arising of future economic conditions and impact on its
business.

Our opinion is not modified in respect of this matter.

Other Matters [To be included only if applicable]

Further to the continuous spreading of COVID -19 across India, the Indian Government announced a strict 21-
day lockdown on March 24, 2020, which was further extended till June 30, 2020 across the India to contain the
spread of the virus. This has resulted in restriction on physical visit to the client locations and the need for
carrying out alternative audit procedures as per the Standards on Auditing prescribed by the Institute of
Chartered Accountants of India (ICAI).

As a result of the above, the entire audit was carried out based on remote access of the data as provided the
management. This has been carried out based on the advisory on “Specific Considerations while conducting
Distance Audit/ Remote Audit/ Online Audit under current Covid-19 situation” issued by the Auditing and
Assurance Standards Board of ICAI. We have been represented by the management that the data provided for
our audit purposes is correct, complete, reliable and are directly generated by the accounting system of the entity
without any further manual modifications.

We bring to the attention of the users that the audit of the financial statements has been performed in the
aforesaid conditions.

Our audit opinion is not modified in respect of the above.

Management’s responsibility for the financial statements

The management is responsible for the preparation of these financial statements that give a true and fair view of
the financial position, financial performance and cash flows of the Entity in accordance with the accounting
principles generally accepted in India, including the accounting standards specified by ICAI. This responsibility
also includes maintenance of adequate accounting records for safeguarding of the assets of the Entity 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 financial statement
that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Entity’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 Entity or to cease operations, or has no realistic
alternative but to do so.

The management is also responsible for overseeing the Entity’s financial reporting process.

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Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the 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 Entity’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 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 Entity to cease to continue as a going concern.

 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the 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
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.

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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.

For ____________________
Chartered Accountants
Firm Registration No._____________

(____________________)
Partner
Membership No. _________
UDIN :

Place: Chennai
Date: ___, 2020

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