State the relevant reporting requirements applicable in this case.

Conclusion: Since the misstatements relating to inventory overstatement and non-disclosure of litigation are material but not pervasive, the auditor shall issue a Qualified Opinion and include a properly titled section "Basis for Qualified Opinion" containing: Description of the matters giving rise to modification,Quantification of financial effects (₹ 8.75 crore),Explanation of the omitted disclosure (12crore litigation), andInclusion of omitted disclosure, where practicable and not prohibited by law.