We have audited the financial statements of GALADA POWER AND TELECOM MUNiC ATI ON LIMITED (''the
Company"), which comprise the balance sheet as at 31st March 2024, the statement of Profit and Loss
(including Other Comprehensive Income), statement of changes in equity, statement of cash flows 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 Companies Act, 2013 ("the Act") in the
manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in Endia including the Indian Accounting Standards prescribed under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (Ind AS), of the state of affairs
of the Company as at March 31, 2024, its loss, the total comprehensive income, changes in equity and its
cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (5As} specified under section 143(10}
of the Companies Act, 2013. 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 Company in accordance with the Code of Ethics Fssued 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 ihe 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 we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial
statements.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 to the financial statements which indicates that thougn there were no
operations in the company and the net worth of the company as on the reporting date is negative and it
continues to incur losses, the financial statements are being prepared on a going concern basis as the
company is in process of implementation of the Resolution Plan as approved by the Hon'ble National
Company Law Tribunal (NCL T), Hyderabad Bench,
Our opinion is not modified in respect of this matter.
Key Audit Matters
Kev Audit Matters ('KAM'} are those matters that in our professional judgement were of most significance
in our audit of the financial statements of 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. In addition to the matter described in the Material Uncertainty Related
to Going Concern section, we have determined the matters described below to be the key audit matters to
be communicated incur report
KAM Title
Valuation of Deferred Tax Asse ts
KAM Description
The company has not recognised deferred tax assets for deductible temporary differences and unused tax
losses. As the utilisation of deferred tax assets is dependent on the;company's ability to generate future
taxable profits sufficient to utilise deductible temporary difference s.Wid tax losses before tffey Wire. We
determined this to be a key audit matter due to the inherent limith.itTdfas in estimation and uncertainty in
forecasting the amount and timing of future taxable profits and the reversal of temporary differences and
utilisation of tax losses.
Management has supported the non-recoverability of. the deferred tax assets mainlvwitfi taxable income
projections which contain estimates of and ^.strategies for future taxable’-Income ^Changes in the
industrial scenario, the business and its marked and change's in regulations may impact these projections.
Our Response B
Our audit procedures Included, among others, evaluating the projected tax computations prepared by the
company to assess the recognition and mjecjsurement of the current and deferred tax assets and liabilities
and evaluate the compliance with the ta^gislation. We paid attfj/dion to the long-term forecasts and
critically assessed the assumptions and judgments underlying thesp forecasts by considering the historical
accuracy of forecasts and the sensitivities of the- profit forecasts JAfe assessed the adequacy and the level of
estimation involved.
Other Inform a tior^.; . : .
The Company's.Board of Directors is responsible for the other information. The other information comprises
the information Included in the compamy's annual report but does not include the financial statements and
our auditor's report thereop, '
Our opinion off the financial statements.does not cover the other information and we do not express any
form of assurance conclusion thereon.
\ w
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether such other information is materially inconsistent with the financial
statements, or our knowledge .obtained In the audit or otherwise appears to be materially misstated. If,
based on the work we haveLperformed, we conclude that there is a materia! misstatement of this other
information, we are required to report that fact, We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the 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 financial statements that give a true and fair
view of the financial position, financial performance, total comprehensive income, changes in equity and
cash flows of the Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards specified under section 133 of the Act 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 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 coiripleteress of the accounting
records, relevant to the preparation and presentation of the financial statements 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 Company's ability to
continue as a going concern, disclosing, as applicable, matters relate (} to going concern and uslpj^the going
concern basis of accounting unless management either intends to liquidate the Company qf to cease
operations, or has no realistic alternative but to do so, \ T ^
* Jr
The Board of Directors is also responsible for overseeing the Company's financial reporting process.
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 |s a high level of assurance but is not a guarantee that an audit
conducted in accordance with 5As 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. ^
.1.: V;:^'
As part of an audit in accordance with Standards cmAuditing, we exercise professional judgment and
maintain profes.yodaTsTrep deism throughout the audit. We also:
> Identify .^jnd assess thJjrfe^^material misstatement of the financial statements, whether due to
fraud or orror, deslgp'-.and .perform audit procedures responsive to those risks, and obtain audit
evidence'that js sufficient and a®p|iiate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting ffofjn fraud is higher than for one resulting from error, as fraud may
Involve coIJusioh;..forgery, intentional omissions, misrepresentations, or the override of Internal
control.
"r Obtain an understanding of.lriternaf controls relevant to the audit in order to design audit procedures
that are appropriate In ire urn stances. Under section 143(3H0 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 managemeFit,
v Conclude on the appropriateness of management's use of the going concern basis of accounting andr
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 ore 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 ere based on the audit evidence obtained up to
the date of Dur auditors 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 financial statements, including the
disclosures, and whether the Financial statements represent the underlying transitions and events In
a manner that achieves fair presentation.
We communicate with those charged with governance regarding, ampitg other matter^the planned scope
and timing of the audit and significant audit findings, including any significant definertdeV1 in internal
control that we identify during our audit.
We also provide those charged with governance with a statement 'that we have complied uM relevant
ethical requirements regarding independence, and to communicate vt]th tjhgrri ali relationship^ and other
matters that may reasonably be thought to bear on our independence, andjWhere apprica&le, related
safeguards. ^ J ^
From the matters communicated with those charged with governance, we determine those matters Lhat
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters, We describe these matters in Dur auditor's report unless law or regulation precludes
public disclosure about the matter or whqq, 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 syth communication,
Report on Other Legal and Regulatory Requirements;
1. As required by the Companies (Auditor^ Report)-Order; 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section ™ of section 143 of the Companies Act, 2013, we give
in the 'Annejqjrfffci' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent ajp pficabfe. \ Hi
2. As required by Section 143 (3) of -(top Act, we report that:
(a) We,have sought and obtained all the information and explanations which to the best of our
knowledge and he lief wertfiietessary 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 froryr our examination of those books except for the matters stated in the
paragraph 2(ij(G) below on reporting under Rule U(g) of the Companies (Audit and
Auditors)Rules, 2014.
(c) The Balance Sheet, the Statement of Profit and Loss, the statement of changes in equity and
the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies {AeecuntsLRyte4-
2014.
(e) On the basis of the written representations received from the directors as on 31st March 2024
taken on record by the Board of Directors, none of the directors is disqualified as an 31st March
2024 from being appointed as a director in terms of Section 364 (2} of the Act,
(f) The modifications relating to the maintenance of accounts and other matters connected
therewith are as stated in the paragraph 2 (b) above on reporting under Section H3(3)(b| of
the Act and paragraph 2(i)[6) below on reporting under Rulell(g) of the Companies [Audit and
Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to financlaf
statements of the Company and the operating effectiveness of such controls, refer to our
separate Report In "Annexure B",
(h) As the Company did not pay, any remuneration to its Directors during the year, other matters
to be included in the auditor's report in accordance with tftp requirements of section'397(16) of
the Act, as amended are not applicable to the company. ^|||
(1} 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 pur opinion and tq'tlie best of
our information and according to the explanations given to u^.-il’T, . A
i, The Company does not have^yr-pehdjng litigations which' would impact its financial
position.
il. The Company did not hjavc any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
... . , 1
iii. According to the information and explanations givefi to us, there were no amounts which
were required to be transferred to the Investor location and Protection Fund by the
Company. r-'vA
Iv. a. The Management has represented that/to the best of its knowledge and belief, no
funds [which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other
4 V sources or kind of funds) by the Company to or in any other person or entity,
induding-forergn entity ("Intermediaries"1), 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 cir the like on behalf of the Ultimate Beneficiaries;
b. The Management has represented, that, to the best of its knowledge and belief, no
funds [which are material either individually or in the aggregate) have been received
by the Company from any person or entity, including foreign entity ("Funding
Parties'1), 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 iike ap^etialt.pf
the Ultimate Beneficiaries;
c. Based on the audit procedures that have been considered reasonable and appropriate
in the eirtuinstances, nothing has come to our notice that has caused us to believe
that the representations under sub-clause (i) and (fi) of Rule 11(e), as provided under
(a) and (b) above, contain any material misstatement,
v. During the year, the company has neither declared nor paid any dividend.
vL Based on our examination which Inducted test checks, the company has used an accounting
software for maintaining its books of account which has a feature of recording audit trail
(edit log) facility. However, the same is not enabled during the year,
pk fo r B RA.HjJwYA & CO;
Charter^ Accountants
£ ' ' ' !Ý
Place Hyderabad Membership Number: 025211
Date : May 30, 2024 h UDJN: 24025 211B KC AVI 14 H
Ý il l-’j 'Ik. /Vy
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