GIVE Ltd., an unlisted company in Indore, is engaged in the business of spices. Total paid up capital of the company is 9.5 Crore. Details of annual…

GIVE Ltd., an unlisted company in Indore, is engaged in the business of spices. Total paid up capital of the company is 9.5 Crore. Details of annual turnover and profit of the company for the last 3 years are given below: Year ended Turnover (in crore) Profit (loss) before tax (₹ in crore) 31-03-2023 485.20 (Audited) 76.25 31-03-2024 287.35 (Audited) 1.93 31-03-2025 106.25 (provisional) (7.75) The company is using conventional method for preparing spices. This requires more human intervention and hence, cost of production is high as compared to innovative method used by other new companies. Though the company had significant growth in the past years, it has not done well over the last two financial years due to competition. A new competitor viz, Taste Ltd, had come in the market during the year 2023 and by the end of March, 2024, they captured around 75% of market share by offering the product at a reduced price. They use new machinery which allows minimizing manual steps and reducing cost of labour. In order to reduce cost of production and thereby re-capture the market, the management of GIVE Ltd has planned to erect a new plant with an automatic machine. The estimated cost of plant & machinery is 85 lakh. The company approached AXI Bank Ltd for a term loan of 80 lakh which would be repaid in 5 years. On 28-12-2024, the bank had sanctioned the loan; and disbursed 40 lakh till 31st March, 2025. GIVE Ltd. has appointed M/s G&G, Chartered Accountants, as auditors of the company at its AGM held on 15-08-2024 for a period of 5 years. As agreed, the audit team commenced their audit work for the year 2024-25 in February, 2025 and completed the work by the end of May, 2025. The audit team submitted following findings to the engagement partner: WE Ltd., one of the material suppliers, filed a case against the company on 10-08-2024 for a compensation of 2.35 crore.Company has made an estimate for allowance of debtors @7%.68% of the value of inventory was only covered in physical verification during the year 2024 due to fire.Company got a show cause notice from State Pollution Control Board for the contravention of the provisions of Hazardous and waste Management Rule.Three incidences of fraud noticed (Total - 1.35 crore)- fraud committed by Accounts manager 15 Lakh, by a cashier 30 Lakh and by the Purchase manager 90 Lakh. As an auditor of GIVE Ltd for the year 2024-25, answer the following questions based on the facts given in the above paragraph: