Neueon Corporation Limited,
Report on the Audit of the Standalone Financial Statements Qualified Opinion
We have audited the accompanying standalone financial statements of Neueon Corporation Limited (Previously Known as Neueon Tower Limited) ("the Company”), which compose the Balance Sheet as at March 31. 2026, the Statement of Profit and Loss (including the Statement of Other Comprehensive Income), the Statement of Changes In Equity and the Statement of Cash Rows tor the year then ended, and a summary of significant accounting policies and other explanatory information. (Hereinafter referred to as "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 possible effects of the matters described in the Basis for Qualified Opinion section, the aforesaid standalone financial statements give the information required by the Companies Act 2013 ("the Act") in the manner so inquired and give a Hue 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 AS1), and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31.2026. its loss including other comprehensive incomo, its changes in equity and Its cash flows for tho yoar then ended.
Basis for Qualified Opinion
A. Non-conduct of Impairment Testing (Ind AS 36 - Impairment of Assets]
As required under Ind AS 36. the Company has riot performed impairment testing of Property, Plant and Equipment (PPE), investments, and other financial assets despite the presence of impairment indicators such as:
• The Company has recognized impairment loss in respect of fixed assets amounting to Rs.58.748.44 lakhs However, the Impairment assessment has not been supported by adequate documentation and appropriate determination of recoverable amount ns required under Ind AS 36 - Impairment of Assets.
• In the absence of sufficient and appropriate audit evidence regarding the assumptions used in estimating future cash flows and discount rotas, wo are unable to determine whether any adjustment is necessary to the carrying value of such assets. Accordingly, our opinion is qualified In respect of this matter.
Bench. The Resolution Plan submitted by a consortium led by M/s Preca Solutions India Private Limited was approved by the Hon'ble NCLT on October 23. 2024. A new Board was reconstituted on Novembor 6. 2024.
The Company under the Insolvency and Bankruptcy Code. 2016 has been approved by the Hon’ble NCLT. Hyderabad Bench on October 23. 2024. As per the terms of the approved Plan, the Company has commenced settlement of its obligations and has discharged with last trench payment being mode on 28.08.2025.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. We are independent of the Company in accordance with the Code of Ethics issued by ICAI. and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Emphasis of Matter
We draw attention to Note 1 of the financial statements, which describes the implementation of the resolution plan of M/s. Neueon Corporation Limited ("the Company”) under the provisions of the Insolvency and Bankruptcy Code. 2016 ("IBC"). Pursuant to the Hon'ble National Company Law Tribunal (NCLT). Hyderabad Bonch order dated October 23. 2024, a resolution plan submitted by a consortium led by PRECA Solutions India Private Limited was approved. Subsequently, a Special Purpose Vehicle (SPV), Preca Structures Privnte Limited, has been incorporated for the implementation of the resolution plan.
In accordance with the resolution plan:
• A Monitoring Committee wos constituted on November 04.2024:
• The Board of Directors and committees of the Company were reconstituted on December 02. 2024;
• Capital reduction has been effected, reducing the face value of shores from RS10 to Re1;
• The Company has filed an application with BSE and NSE for retlsting of the reduced sharo capital and the necessary in-principle approvals have since boon received. 2
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 auditors' 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 these standalone 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 statemonts or our knowledge obtalnod in tho audit or otherwise appears to bo 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 Statemonts
The Company's Board of Directors is responsible for:
• the preparation of these standalone financial statements that give a true and fair view in accordance with Ind AS and accounting principles generally accepted In Indio,
• The design, implementation, and maintenance of internal control to ensure accuracy and completeness of the financial statements.
In accordance with Section 134(5) of the Act. tho Board is also responsible tor assessing the Company's ability to continue as a going concern and using the going concern basis unless liquidation is intended or no realistic alternative exists.
According to the Information and explanations given to us and based on our examination of the records of the Company, the Company has disposed of certain Property, Plant and Equipment, including land relating to Unit-Ill and Unit-IV during the year. The assets were sold at values lower than the value determined as per an independent valuation report, resulting in a loss. Based on the explanations provided by the management, such sale wos carried out considering commercial expediency / resolution process requirements.
Auditor's Responsibilities for the Audit of the Standalone Ind ASfinancial statements
Our objectives ore to obtain roasonoble assurance about whether the Standalone Ind AS 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 o high level of assurance but is not 0 guarantee that an audit conducted in accordance with SAs will alwoys detect a material misstatement when it exists. Misstatements con arise from baud or error and ore 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 Ind AS financial statements.
As part of on audit In accordance with SAs. wo exercise professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the standalone Ind AS 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.
2. Obtain an understanding of internal control relevant to the audit In order to design audit procedures that arc appropriate In the circumstances. Under section 143(3)(i) of the Act. we ora 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.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
4. 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 cost 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 Ind AS financial statements or. If such disclosures are inadequate, to modify oui opinion. Our conclusions are based on the audit evidence obtained up to the dote of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
5. Evaluate the overall ptesenlation, structure and content of the Standalone Ind AS financial statements, including the disclosures, and whether the Standalone Ind AS financial statements roprosont the underlying transactions and events in n manner that achieves fair presentation. 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 Ihought to bear on our independence, and where applicable, related safeguards.
Audit Trail
Based on our examination which included test checks, the company has used accounting software for maintaining its books of account which has a feature of recording audit trail (Tally edit log) facility and the some has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.
The audit trail has been preserved by the company as per the statutory requirements for
record retention. Our examination of the audit trail was in the context of an audit of financial statements carried out in accordance with the Standard of Auditing and only to the extent required by Rule 11 (g) of the Companies (Audit and Auditors) Rules.2014.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act. based on our audit we report that;
a. We hove sought ond obtained oil the information and explanations which to the best of our knowledge rind belief were necessary for the purposes of our audit.
b. In our opinion, proper books of occount as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Shoot, the Statement of Profit and Loss including Other Comprehensive Income. Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d In our opinion, the aforesaid standalone financial statements comply with the "Ind AS" specified under Section 133 of the Act. read with Rule 7 of the Companies (Accounts) Rutos. 2015. os amended.
e. On the basis of the written representations received from the directors as ori March 31. 2026 token on record by the Board of Directors, nono of the diroctors Is disqualified as on March 31. 2026. 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, refor to our separate Report In "Annexure A”.
g. According to the information and explanation given to us by the management, no managerial remuneration has been paid/provldcd to any director of the Company during the year.
h. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit ond Auditors) Rules, 2014. as amended, in our opinion and to the best of out 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 Further, the company is under CIRP and Moratorium is applicable as per the terms of Section 14 of IBC. 2016.
(ii) The Company did not have any long-term contracts including derivative contracts for which fhore wore any matorial foreseeable losses.
(Hi) There were no amounts which were required to be transferred to the investor Education ond Protection Fund by the Company.
(iv) No dividend is declared or paid by the Company during the year and hence.
compliance with section 123 of the Companies Act,2013 is not applicable to the Company.
2. As required by the Companies (Auditor's Report) Order, 2020 (“the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ForASKM&Co.,
Chartered Accountants.
FRN.: 012799S
S. Venkotcswara Rao
Partner
M.no.:223702
UDIN: 26223702YNWPQS7775
Date: 01.05.2026 Place: Hyderabad
1
In the absence of an impairment assessment or external valuation, we are unable to determine the potential adjustments. If any. required to tho carrying value of those assets.
B. Implementation of status of the Resolution plan
The Company was admitted into Corporate Insolvency Resolution Process (CIRP) under the provisions of the Insolvency and Bankruptcy Code. 2016 ("IBC”), by an order doted November 21. 2018. of the Hon'bie National Company Law Tribunal (NCLT). Hyderabad
2
We draw attention to the Statement of Profit and Loss, wherein the Company has disclosed an exceptional item for the year ended March 31. 2026. relating to the disposal of certain Property. Plant and Equipment, including land pertaining to Unit-Ill and Unit-lV. The said assets have been sold at values lower than the value determined based on an independent valuation report, resulting in a loss recognized in the Statement of Profit and Loss.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit. In addition to the matters described In the "Basis for Qualified Opinion,” we have determined that no other matters required to be communicated as key audit matters.
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