CA Misha is appointed as the statutory audit of a branch of FDH Bank. During the audit, the following issues were observed: The bank provides "Kisan…

CA Misha is appointed as the statutory audit of a branch of FDH Bank. During the audit, the following issues were observed: The bank provides "Kisan Credit Card" loans to farmers to meet their short-term credit needs for crop cultivation. One such loan, with an outstanding balance of 20 lakh at the year end, had no transactions for the past 90 days. The loan was granted for paddy cultivation, which typically takes 3-4 months from sowing to harvest. The branch has classified the loan as a "Standard Asset". It was also noted that the account of a borrower with a cash credit limit of 50 lakh, which was taken over from another bank, was sanctioned by the branch manager instead of the immediate higher authority, as required in bank's “Manual of Delegation of Powers". CA Misha also served as the statutory auditor for a multiplex cinema. During the audit, CA Misha observed that the revenue of company has fallen from 50 crore in last year to 5 crore in current year (for which financial statements have been received for audit) due to lack of demand in the market for company's products. Based on the above facts, answer the following: