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Financial Report Summary

SUPERMARKET GROCERY SUPPLIES PRIVATE LIMITED Consolidated Financial Statements Summary:

Company Overview:

• The company's name is SUPERMARKET GROCERY SUPPLIES PRIVATE LIMITED, a private entity incorporated and domiciled in India with its registered office in Bengaluru.
• Its primary business involves trading grocery and other household products, as well as building, deploying, and maintaining smart vending machines.
• The consolidated financial statements cover the period from April 1, 2023, to March 31, 2024, with comparative data from previous years.
• The reporting currency is Indian Rupees (INR).

Auditor's Report:

• The Independent Auditor's Report is issued by BSR & Co. LLP, Chartered Accountants.
• The auditor's opinion indicates that the consolidated financial statements provide a true and fair view of the Group's consolidated state of affairs.
• The auditors have fulfilled their responsibilities in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act.
• The report includes an annexure (Annexure A) providing a statement on matters specified in paragraphs 3 and 4 of the Companies (Auditor's Report) Order, 2020, and a separate report in "Annexure B" on internal financial controls.

Financial Performance and Position (Key Data & Observations):

• The Group has incurred a net loss of Rs. 14,230.47 million during the year ended 31 March 2024 and has accumulated losses of Rs. 76,198.50 million.
• Total assets as of March 31, 2024, are Rs. 4,360,84,98,905.
• Total revenue from operations for the year is Rs. 10,061,91,81,457.
• Basic and diluted loss per share is Rs. -107.35.
• Equity share capital is Rs. 11,17,05,964.
• Capital commitments as at March 31 2024 totaled Rs. 73.01 million
• Property plant and equipment (net) as at March 31 2024 totaled Rs. 1,235,83,02,412
• Inventories (net) totaled Rs. 688,25,75,136
• The consolidated financial statements are prepared on a going concern basis despite accumulated losses, based on Management's future business plans, the ability to raise funds from its parent company, and unutilized credit facilities from banks.

Share Capital:

• The company has authorized, issued, subscribed and paid-up capital of various classes.
• The authorized share capital includes equity shares and several series of compulsorily convertible preference shares (CCPS).
• Reconciliation of shares outstanding at the beginning and end of the year is provided.
• Details of shareholders holding more than 5% of a class of shares are disclosed.
• Rights, preferences, and restrictions attached to shares are described.

Other Key Financial Details:

• The group's consolidated financial statements disclose the impact of pending litigations.
• The group did not have material foreseeable losses on long-term contracts including derivative contracts during the year ended 31st March 2024.
• There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Holding Company or its subsidiary companies incorporated in India during the year ended 31st March 2024.
• Funds have not been advanced or loaned or invested to intermediaries with the understanding that they will be lent or invested in ultimate beneficiaries.
• Funds have not been received from funding parties with the understanding that the Holding Company will lend or invest in ultimate beneficiaries.
• The Holding Company has neither declared nor paid any dividend during the year.

Internal Financial Controls:

• The report expresses an opinion on the adequacy and operating effectiveness of internal financial controls with reference to financial statements.

Other Legal and Regulatory Requirements:

• The report includes a statement on matters specified in the Companies (Auditor's Report) Order, 2020.

Subsidiaries Information:

• The consolidated financial statements include the results of several subsidiaries: Innovative Retail Concepts Private Limited, Savis Retail Private Limited, Delyver Retail Network Private Limited, and Dailyninja Delivery Services Private Limited.

Going Concern & Material Uncertainties:

• The Group has incurred significant losses and has a working capital deficit, casting doubt on its ability to continue as a going concern.
• The Management believes that the going concern assumption is appropriate based on its future business plans, the ability to raise funds from the parent company and unutilized credit facilities.
• There is an over-reliance on the parent company, and the financial sustainability depends on the parent company and its subsidiary companies.

Emphasis on Audit Trail:

• Modification relating to maintenance of accounts and other matters connected therewith are as stated in paragraph 2A(b) above on reporting under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

Audit Trail Feature in Accounting Software:

• For the holding company and its two subsidiary companies, the auditor is unable to ascertain if the feature of recording audit trail (edit log) facility was enabled and operated throughout the year for the accounting software relating to Purchase, General Ledger, Cost Centre Master, and credit master.
• In case of the holding company and its one subsidiary company, the feature of audit trail was not enabled at the database level to log any direct data changes for the accounting software used for maintaining the books of account relating to Purchase Order records, Goods entry register, Purchase return and GDN records, Stock movement records.
• In case of the holding company and its one subsidiary company, the feature of audit trail was not enabled at the application layer of the accounting software relating to Asset PO register for the period 1 April 2023 till 19 April 2023.
• In case of the holding company and its one subsidiary company, in the absence of sufficient and appropriate reporting on compliance with audit trail requirements in the independent auditor's report of a service organization for the accounting softwares relating to Employee Master records, Payroll master, Payroll transaction and for the database layer of the accounting software relating to Asset PO register, and for database layer for the accounting software relating to Leave records for the period 1 January 2024 to 31 March 2024, the auditor is unable to comment whether the audit trail feature for the said softwares was enabled and operated throughout the year for all relevant transactions recorded in such softwares.
• Further, for the periods where the audit trail (edit log) facility was enabled for the respective accounting softwares, there were no instances of the audit trail feature being tampered with.