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, 2024, 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 for the year then ended, and notes to the standalone financial statements, including material accounting policy information 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, 2024, 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 25(v) of the standalone financial statements, which describes a petition under Sections 241, 242 and 244 of the Companies Act, 2013 filed by certain promoter and promoter group members against the other promoters and promoter group members of the Company, which is pending with the 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 :
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Key audit matter
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How our audit addressed the key audit matter
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Recoverability of Trade Receivables
(Refer Notes 5(b) and 31 of the standalone financial statements)
The standalone financial statements of the Company includes trade receivable of ' 38,833.43 lakhs as at March 31,2024, net of allowances for impairment amounting to ' 10,151.82 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 to the receivables held at year end. The impact of economic factors both current and future is considered in assessing the likelihood of recovery from customers. This matter was identified as a key audit matter due to the involvement of significant management judgement.
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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.
• 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.
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Key audit matter
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How our audit addressed the key audit matter
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Revenue Recognition as per Ind AS 115
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• Verified receipts from debtors subsequent to the financial year-end relating to trade receivable balances as at March 31, 2024 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.
Based on the procedures as mentioned above management's assessment regarding the recoverability of trade receivables appears to be reasonable.
Our audit procedures included the following:
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(Refer Note 15 of the standalone financial statements)
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• We evaluated the design and tested operating
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The Company's revenue for the year ended March 31, 2024
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effectiveness of the relevant controls with respect to revenue recognition.
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is ' 164,067.31 lakhs. The Company recognises revenue from sale of products and services in accordance with the
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• We assessed the appropriateness of the revenue
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accounting principles prescribed under Ind AS 115, Revenue
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recognition accounting policy in line with Ind AS 115.
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from contracts with customers.
Revenue is recognised when the company satisfies a
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• We performed substantive testing of revenue transactions on a sample basis, recorded during the year by testing the
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performance obligation by transferring control of the
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underlying documents which included contracts with the
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products or services being provided to the customer.
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customers, release orders, customer purchase orders and
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The control in respect of revenue from advertisement is
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customer acknowledgments, as applicable.
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considered transferred when advertisement is published in the newspaper, revenue from newspapers and magazines
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• We assessed the different types of performance obligations
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when they are dispatched which coincides with transfer of
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agreed by the Company with its customers to evaluate the
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control of products to the customer, revenue from services
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timing of revenue recognition in respect of various revenue
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of outdoor activities is recognised as and when the control of
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streams.
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products or service is transferred to the customer being the time over which advertisement is displayed and revenue from
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• We tested, on a sample basis, specific revenue
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transactions recorded, before and after the financial year
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event management and activation services is recognised when the control of products or service is transferred to the
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end date, by testing the underlying invoices and customer
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customer being the time over which, the event is completed.
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acknowledgements, as applicable.
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Revenue is measured at the transaction price, which is consideration, received or receivable, net of trade discounts,
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• We examined, on a sample basis, credit notes issued after
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the year end, wherever applicable to determine whether
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volume rebates, and taxes or duties collected.
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the revenue has been recognised in the appropriate
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We identified revenue recognition as a key audit matter as revenue is significant to the standalone financial statements and considering the extent of audit effort involved.
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financial period.
• We have tested a sample of revenue adjustment manual journal entries recorded by the Company to identify
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unusual items, if any.
Based on the above procedures performed, no significant exception was noted by us in the revenue recognised by the Company during the year.
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Key audit matter
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How our audit addressed the key audit matter
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Assessment of impairment of investment in subsidiaries
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Our audit procedures included the following:
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and associates
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• Understood and evaluated the process and controls
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(Refer Note 4 of the standalone financial statements) The
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designed and implemented by the Management to assess
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Company's investment in subsidiaries and associates.
The market capitalisation of one subsidiary, Music Broadcast
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the potential impairment of investments in subsidiaries and associates.
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Limited(“MBL”) fluctuated during the year and was lower than
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• Assessed appropriateness of determination of cash
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the carrying amount of its net assets for part of the year. This
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generating unit (CGU) in line with the requirements of Ind
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reduction in market capitalization triggered the requirement
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AS 36 Impairment of Assets considering the nature of the
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to assess the need for recognition of potential impairment
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operations of MBL, MIL and Leet respectively.
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loss.
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• Involvement of the auditor's expert and evaluation of the
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Also, another subsidiary, Midday Infomedia Limited(MIL)
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appropriateness of the key assumptions underlying the
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has been in continuous operating losses in past years
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cash flow projections including growth and discount rates
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and just turned profitable in the current year indicating the
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used within the discounted cash flow model with specific
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requirement to assess the carrying value of the investment
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focus on forecast revenue compared to readily available
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in MIL for potential impairment.
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market information and underlying macroeconomic factors.
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Additionally, the carrying value of investment of one of
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• Performed sensitivity analysis on the projections by
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the associates of the Company, Leet OOH Media Private
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varying key assumptions, within reasonably foreseeable
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Limited(Leet), was more than Company's share in the net assets of these associates indicating potential impairment.
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range.
• Comparison of carrying value of the net assets with the
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The management has used discounted cash flow models
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estimated cash flows determined by the management for
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to assess the value in use of its investments in the above-mentioned subsidiaries and the associate which require use
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entities respectively.
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of significant judgement in respect of certain key inputs like
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• Evaluated the appropriateness of the Company's
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determining an appropriate discount rate, future cash flows
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accounting policies in respect of impairment assessment
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etc.
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of the investments.
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Based on the management's assessment and future
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• Assessed the adequacy of disclosures made in the
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forecast of business conditions, the recoverable amount of these investments are higher than their carrying value, and
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standalone financial statements.
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accordingly no impairment provision has been recognized
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Based on the above procedures performed, no significant
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in this regard.
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exception was noted by us in the assessment of impairment of investment in subsidiaries and associate performed by
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We considered this a key audit matter since significant judgement and management estimates were involved around impairment assessment.
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the management.
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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 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, 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. 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
9. 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.
10. 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 standalone 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 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.
11. 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.
12. 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.
13. 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
14. 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.
15. 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 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, 2024 , taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024, 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 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 25 to the standalone financial statements;
ii. The Company was not required to recognise a provision as at March 31, 2024 under the applicable law or 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, 2024.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2024. Refer Note 35 to standalone financial statements.
iv. (a) The management has represented that,
to the best of its knowledge and belief, as disclosed in Note 36(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 36(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 36(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 36(xiv) to the standalone 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 Company has not declared or paid any dividend during the year.
vi. Based on our examination, which included 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 and that has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not notice any instance of audit trail feature being tampered with.
16. 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: 24096367BKHHIJ5295
Place: Kanpur
Date: May 28, 2024
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