Adani Enterprises Ltd.
|BSE: 512599||Sector: Others|
|NSE: ADANIENT||ISIN Code: INE423A01024|
|BSE 11:52 | 19 May||2126.80||
|NSE 10:29 | 19 May||2131.65||
|Mkt Cap.(Rs cr)||233,905|
|Mkt Cap.(Rs cr)||233905.47|
Adani Enterprises Ltd. (ADANIENT) - Auditors Report
Company auditors report
The Members of
Adani Enterprises Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements ofAdani Enterprises Limited
("the Company") which comprise the balance sheet as at 31stMarch 2021 the statement of Profit Loss (including other comprehensive income) thestatement of cash flows and the statement of changes in equity for the year then endedand a summary of significant accounting policies and other explanatory information (hereinafter referred to as "Standalone Financial Statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid
Standalone Financial Statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2021 the profit and total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the
Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the Standalone Financial
Statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Standalone Financial Statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent year. These matters were addressed in the context of our audit of the StandaloneFinancial
Statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.
Information other than the Standalone Financial Statements andAuditor's Report thereon
The Company's Management and Board of Directors is responsible forthe other information. The other information comprises the information included in the
Company's annual report but does not include the StandaloneFinancial Statements and our auditor's report thereon.
Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone FinancialStatements
The Company's Management and Board of Directors is responsible forthe matters stated in Section 134(5) of the Companies Act 2013 ("the Act") withrespect to the preparation and presentation of these Standalone Financial Statements thatgive a true and fair view of positionthe financialperformance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the applicable IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists.
Misstatements can arise from fraud or error and are considered materialif individually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Standalone
Financial Statements of the current year and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
2. As required by Section 143(3) of the Act based on our audit wereport that: a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit. b) Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. c) The Balance Sheet the Statementof Profit and Loss including other comprehensive income the Statement of Cash Flows andthe
Accounting Standards specified under Section 133 of the Act. e) On thebasis of the written representations received from the directors of the Company as on 31stMarch 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2021 from being appointed as a director in terms ofSection 164 (2) of the Act. f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B". g) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Standalone FinancialStatements disclose the impact of pending litigations on the standalone financial positionof the Company Refer Note 4(a) 4(b) and 39 to the Standalone Financial Statements; ii.Provision has been made in the Standalone Financial Statements as required under theapplicable law or Ind AS for material foreseeable losses if any on long term contractsincluding derivative contracts- Refer Note 38 to the Standalone Financial Statements; iii.There has been no delay in transferring the amounts required to be transferred to the
Investor Education and Protection Fund by the Company.
3. With respect to the matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of section 197 of the Act.
Annexure A to the Independent Auditor's Report
RE: Adani Enterprises Limited
(Referred to in ParagrapRs 1 under Report on Other Legal andRegulatory Requirements' section of our Report of even date)
(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) As explained to us fixed assets according to the practice of theCompany are physically verified by the management at reasonable intervals in a phasedverification programme which in our opinion is reasonable looking to the size of theCompany and the nature of its business.
(c) The title deeds of immovable properties as disclosed in Note 3 onProperty Plant and Equipment to the Standalone Financial Statements are held in thename of the company except for leasehold land.
(ii) The inventory other than stocks lying with third parties hasbeen physically verified by management during the year. However alternate auditprocedures were applied for verifying physical presence of the balance inventory. In ouropinion the frequency of verification is reasonable. respect of stocks lying with thirdparties at the year-end written confirmations have been obtained.
The discrepancies noticed on verification between the physical stocksand the book records were not material and have been properly dealt with in the books ofaccount.
(iii) (a) The Company has granted unsecured loans to 38 parties coveredin the register maintained under section 189 of the Act. According to the information andexplanation given to us and the records produced to us the terms and conditions of thegrant of such loan are not prejudicial to the interest of the Company.
(b) The schedule of repayment of principal and payment of interest hasbeen stipulated and repayments or receipts of principal amounts and interest have beenregular as per stipulations.
(c) There are no amounts of loan granted to such parties covered in theregister maintained under section 189 of the Act which are overdue for more than ninetydays.
(iv) In our opinion and according to information and explanations givento us and representations made by the Management the Company has complied with provisionsof Section 185 and 186 of the Act in respect of grant of loans investments made andguarantees and securities provided by it.
(v) According to information and explanations given to us the Companyhas not accepted any deposits from the public within the meaning of the directives issuedby the Reserve Bank of India provisions of section 73 to 76 of the Act any otherrelevant provisions of the Act and the relevant rules framed thereunder. Accordingly theprovisions of clause 3(v) of the Order are not applicable to the Company.
(vi) We have broadly reviewed the cost records maintained by theCompany pursuant to the
Companies (Cost Records and Audit) Rules 2014 prescribed by the CentralGovernment under section 148(1) of the Companies Act 2013 in respect of thecompany's products/ services to which the said rules are made applicable and are ofthe opinion that prima facie the prescribed cost records have been made and maintained.However we have not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/ accruedin the books of account in respect of undisputed statutory dues including
Provident Fund Employees State Insurance Income Tax Sales TaxService Tax Customs Duty Excise Duty Value Added Tax Goods and Service Tax Cess andother material statutory dues have generally been deposited regularly during the year bythe Company with the appropriate authorities.
(b) According to the information and explanations given to us noundisputed amounts payable in respect of applicable statutory dues as referred to abovewere in arrears as at 31st March 2021 for a period of more than six months from the datethey became payable.
(c) According to the information and explanations given to us thereare no material dues of wealth tax which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of Customs Duty Income Tax Sales Tax/ Value Added TaxService Tax Goods and Service Tax Excise Duty Stamp Duty and FEMA/ FERA have not beendeposited by the
Company on account of disputes.
* Amount as per Demand orders including interest and penalty whereverfigures available.
(viii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company it has not defaulted inrepayment of loans or borrowings from Banks and Financial Institutions and dues todebenture holders. The Company has not taken any loan from government.
(ix) Based upon the audit procedures performed the company has notraised moneys by way of initial public offer or further public offer. In our opinion andas per the information and explanations given by the management the funds raised throughdebt instruments and term loans have been applied for the purpose for which they wereraised.
(x) During the course of our examination of the books and records ofthe company carried out in accordance with the generally accepted auditing practice inIndia and according to the information and explanation given to us we have neither comeacross any instance of material fraud by the company or on the company by its officers oremployees noticed or reported during the year.
(xi) According to the information and explanations given to us and onthe basis of our examination of the records of the Company managerial remuneration hasbeen paid or provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Act.
(xii) In our opinion the Company is not a nidhi Company. Accordinglythe provisions of Clauses 3 (xii) of the Order are not applicable.
(xiii) As per information and explanation given to us and on the basisof our examination of the records of the Company all the transaction with related partiesare in compliance with section 177 and
188 of Companies Act 2013 and all the details have been disclosed inStandalone Financial Statements as required by the applicable Indian
(xiv) According to the information and explanations given to us and onthe basis of our examination of the records the Company has not made any preferentialallotment or private placement or not issued any fully or partly convertible debentureduring the year under review. Accordingly the provisions of paragraph 3(xiv) of the Orderare not applicable.
(xv) According to the information and explanations given to us and onthe basis of our examination of the records Company has not entered into any non-cashtransactions with any director or any person connected with him. Accordingly theprovisions of Clauses 3(xv) of the Order are not applicable to the Company.
(xvi) In our opinion the company is not required to be registeredunder section 45IA of the Reserve Bank of India Act 1934 and accordingly the provisionsof clause 3(xvi) of the Order are not applicable.
Annexure B to the Independent Auditor's Report
RE: Adani Enterprises Limited
(Referred to in paragraph 2 (f) under Report on Other Legal andRegulatory Requirements' section of our Report of even date)
Report on the Internal Financial Controls under Clause i of sub-section3 of section 143 of the Companies Act 2013 (the Act). Opinion
We have audited the internal financial controls over financialreporting of the Company as of 31 st March 2021 in conjunction with our audit of theStandalone Financial Statements of the company for the year ended on that date.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialover financialreporting were operating effectively as at 31st March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
Management's Responsibilities for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the
Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Ind AS Financial Statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that: (1) Pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financialcontrolover financialreporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.