1. We have audited the accompanying standalone financial
statements of Jagran Prakashan Limited (“the Company”),
which comprise the Standalone Balance Sheet as at
March 31, 2025, and the Standalone Statement of Profit
and Loss (including Other Comprehensive Income), the
Standalone Statement of Changes in Equity and the
Standalone Statement of Cash Flows, and notes to the
financial statements, including material accounting policy
information or and other explanatory information.
2. In our opinion and to the best of our information and
according to the explanations given to us, 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 accounting principles generally
accepted in India, of the state of affairs of the Company
as at March 31, 2025 and total comprehensive income
(comprising of profit and other comprehensive income),
changes in equity and its cash flows for the year then
ended.
Basis for Opinion
3. 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
standalone 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 we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw your attention to note 24(v) of standalone
financial statements, which describe a petition under
Sections 241, 242 and 244 of the Act 2013 filed by certain
promoter and promoter group members against the other
promoter and promoter group members of the Company,
which is pending with National Company Law Tribunal
(‘NCLT’). As stated in the said note, the management at
present does not expect any impact of this matter on the
Company. Our opinion is not modified in respect of this
matter.
Key audit matters
5. Key audit matters are those matters that, in our
professional judgement, 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 :
|
Key audit matter
|
How our audit addressed the key audit matter
|
|
Recoverability of Trade Receivables
(Refer Notes 5(b) and 30 of the standalone financial statements)
Recovery of Trade Receivables
The standalone financial statements of the Company includes
trade receivable of ' 34,914.12 lakhs as at March 31, 2025, net of
allowances for impairment amounting to ' 10,459.25 lakhs.
Management estimated the level of expected losses, by assessing
future cash flows for each group of trade receivables based on
twelve month rolling historical credit loss experience by tenure and
applying this to the receivables held at year end. The impact of both
current and future economic factors are considered in assessing the
likelihood of recovery from customers. This matter was identified as
a key audit matter due to the significant management judgement
involved.
|
Our audit procedures included the following:
• Obtained an understanding of the internal processes
for evaluating the recoverability of trade receivables
including collection process and the allowances for
impaired trade receivables.
• Tested the design, implementation and operating
effectiveness of relevant internal controls relating to
recoverability of trade receivables including collection
process and the calculation of the allowance for such
trade receivables.
• Evaluated reasonableness of the method and
assumptions and judgements used by the management
with respect to recoverability of trade receivables.
• Assessed the profile of trade receivables and the
economic environment applicable to these debtors.
|
|
Key audit matter
|
How our audit addressed the key audit matter
|
| |
•
|
Evaluated the simplified approach applied by the
Company to identify lifetime expected credit losses.
In doing so, obtained the schedule of receivables
ageing, enquired into aged balances and assessed
management's explanation for collectability. Also tested
the management's working for provision for expected
credit losses.
|
| |
•
|
Verified receipts from debtors subsequent to the
financial year-end relating to trade receivable balances
as at March 31, 2025 with bank statements and relevant
underlying documentation for selected samples.
|
| |
•
|
Reviewed the accuracy of management's judgement by
comparing historical provisions against actual write-off.
|
| |
•
|
Evaluated the appropriateness of the presentation and
disclosures made in the standalone financial statements.
|
|
Assessment of impairment of cash generating units (CGUs)
|
Our audit procedures included the following:
|
|
(Refer Note 3(a), 3(b), 3(d) and 4 of the standalone financial
statements)
|
•
|
Understood and evaluated the process and controls
designed and implemented by the Management to
assess the potential impairment of CGUs and tested the
|
|
The Company carries its property, plant and equipment (PP&E),
right-of-use assets, investment in subsidiaries, associates and
intangible assets including goodwill at cost less accumulated
depreciation/ amortisation and impairment losses.
|
•
|
operating effectiveness of controls.
Evaluated the appropriateness of the Company's
accounting policies in respect of impairment assessment
of the assets.
|
|
As of March 31, 2025, the net assets of the Company exceed its
|
•
|
Assessed appropriateness of determination of CGUs in
|
|
market capitalisation. This reduction in market capitalisation is
|
|
line with the requirements of Ind AS 36 considering the
|
|
an indication of impairment to the PP&E, right-of-use assets and
|
|
nature of the operations of the Company, MBL, MIL and
|
|
intangible assets including goodwill and triggered the requirement
for the Company to assess the recoverable amount of cash-
|
|
Leet.
|
|
generating units (CGUs) to which these assets belong.
|
•
|
With the involvement of the auditor's expert, evaluated
the appropriateness of the key assumptions underlying
|
|
Further, the market capitalisation of one listed subsidiary, Music
Broadcast Limited (“MBL”) fluctuated during the year and was
lower than the carrying amount of its net assets as of March 31,
2025, and another subsidiary, Midday Infomedia Limited (“MIL”) has
been incurring operating losses in prior as well as the current year.
Furthermore, the carrying value of investment of one associate,
|
|
the cash flow projections including growth and discount
rates used within the discounted cash flow model
with specific focus on forecast revenue compared to
readily available market information and underlying
macroeconomic factors.
Performed sensitivity analysis on the projections by
varying key assumptions, within reasonably foreseeable
|
|
Leet OOH Media Private Limited (“Leet”), exceeded the Company's
share in its net assets. These factors indicate potential impairment
|
|
|
loss to the carrying value of investments in these entities.
|
|
range.
|
| |
•
|
Compared the carrying amount of the net assets with the
|
|
The management has used discounted cash flow models to
determine the value in use of the CGUs to which the aforementioned
assets belong. This requires significant judgement regarding key
|
|
estimated cash flows determined by the management for
respective entities.
|
|
inputs, such as the appropriate discount rate and future cash flows.
|
•
|
Assessed the adequacy of disclosures made in the
standalone financial statements.
|
|
Based on management's assessment and future business forecast,
the recoverable amount of these CGUs, exceeds their carrying
value. Consequently, no impairment provision has been recognised
in this regard, except in respect of the investment in MIL, where
impairment loss to the extent of the difference between carrying
amount and recoverable amount has been recognised as per Ind
AS 36 ‘Impairment of Assets’.
|
|
|
|
We considered this a key audit matter because significant
judgement and management estimates are involved regarding
impairment assessment.
|
|
|
Other Information
6. The Company’s Board of Directors is responsible for
the other information. The other information comprises
the information included in the annual report but does
not include the standalone financial statements and our
auditor’s 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.
Responsibilities of management and those charged
with governance for the standalone financial
statements
7. The Company’s Board of Directors is responsible for the
matters stated in Section 134(5) of 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, 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 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.
8. In preparing the standalone financial statements, Board
of Directors 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.
9. Those Board of Directors are also responsible for
overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the
standalone financial statements
10. 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.
11. As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional
scepticism 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 with reference to financial statements 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 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.
12. 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.
13. 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.
14. 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
15. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government of
India in terms of sub-section (11) of Section 143 of the Act,
we give in the Annexure B a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
16. 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 Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including other
comprehensive income), the Standalone Statement
of Changes in Equity and the Standalone Statement
of Cash Flows dealt with by this Report are in
agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial
statements comply with the Indian 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 with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in “Annexure A”.
(g) 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
(as amended), 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
24 to the standalone financial statements;
ii. The Company was not required to recognise
a provision as at March 31, 2025 under the
applicable law or Indian Accounting Standards,
as it does not have any material foreseeable
losses on long-term contract. The Company
did not have any derivative contracts as at
March 31, 2025.
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company during the year.
iv. (a) The management has represented
that, to the best of its knowledge and
belief, as disclosed in Note 35 (xiii) to
the standalone financial statements, 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(ies), 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 35(xiii)
to the standalone financial statements);
(b) The management has represented that,
to the best of its knowledge and belief,
as disclosed in the Note 35(xiv) to the
standalone financial statements, 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
35(xiv) to the financial statements); and
(c) Based on such audit procedures that we
considered reasonable and appropriate
in the circumstances, nothing has come to
our notice that has caused us to believe
that the representations under sub¬
clause (a) and (b) contain any material
misstatement.
v. The final dividend paid by the Company during
the year in respect of the same declared for
the previous year is in accordance with section
123 of the Companies Act 2013 to the extent it
applies to payment of dividend.
As stated in note 31(b) to the financial
statements, the Board of Directors of the
Company have proposed interim dividend
for the year.The dividend declared is in
accordance with section 123 of the Act to the
extent it applies to declaration of dividend.
vi. 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 and that has operated throughout
the year for all relevant transactions recorded in
the software. During the course of our audit, we
did not notice any instance of audit trail feature
being tampered with. Further, the audit trail has
been preserved by the Company as per the
statutory requirements for record retention.
17. The Company has paid/ provided for managerial
remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with
Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Rahul Chattopadhyay
Partner
Membership Number: 096367
UDIN: 25096367BMLJKY6238
Place: Kanpur
Date: May 24, 2025
|