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Amara Raja Batteries Ltd.

BSE: 500008 Sector: Auto
NSE: AMARAJABAT ISIN Code: INE885A01032
BSE 00:00 | 27 Jan 578.50 12.50
(2.21%)
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591.90

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565.90

NSE 00:00 | 27 Jan 579.55 14.75
(2.61%)
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591.65

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597.90

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OPEN 591.90
PREVIOUS CLOSE 566.00
VOLUME 142338
52-Week high 669.95
52-Week low 438.15
P/E 15.09
Mkt Cap.(Rs cr) 9,881
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 591.90
CLOSE 566.00
VOLUME 142338
52-Week high 669.95
52-Week low 438.15
P/E 15.09
Mkt Cap.(Rs cr) 9,881
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Amara Raja Batteries Ltd. (AMARAJABAT) - Auditors Report

Company auditors report

To The Members of Amara Raja Batteries Limited Report on the Audit of the StandaloneFinancial Statements Opinion

We have audited the accompanying standalone financial statements of Amara RajaBatteries Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.In our opinion and to the best of our information and according to the explanations givento 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 March 31 2022 and its profit 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 in accordance with theStandards on Auditing specified under Section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter Auditors' Response
1 Revenue Recognition
Refer Note 2M "Revenue Recognition" of the Standalone Financial Statements under Significant Accounting Policies. We have performed the following principal audit procedures in relation to revenue recognised which include a combination of testing internal controls and substantive testing as under:
Revenue is recognised net of returns and discounts when control over the goods is transferred to the customer which is mainly upon delivery of goods as per terms of the contracts with customers. Assessing the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers") and testing thereof.
The timing of revenue recognition is relevant as there is a risk of revenue being recorded before control is transferred. Evaluating the integrity of the general information and technology ('IT') control environment and testing the operating effectiveness of key IT application controls.
Understanding the revenue recognition process evaluating the design and implementation of Company's controls in respect of revenue recognition.
Testing the effectiveness of such controls over revenue cut off at year-end.
Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end including examination of credit notes issued after the year end to determine whether revenue was recognised in the correct period.
Performing analytical procedures on current year revenue based on monthly trends and where appropriate conducting further enquiries and testing.
2 Completeness of provision for warranty obligations We carried out a combination of principal audit procedures involving test of internal controls and substantive testing including:
Refer Note 2 D(i) under Significant Accounting Policies for Use of estimates and judgements in relation to provision for warranty obligations and Note 40 of the Standalone Financial Statements.
Understanding the warranty claims process evaluating the design and implementation of Company's controls in respect of warranty provisioning.
Testing the operating effectiveness of these controls during the year.
The Company estimates and provides for liability for product warranties in the year in which the products are sold. These estimates are established using historical information on the nature frequency quantum of warranty claims and corrective actions against product failures and the estimates are reviewed annually for any material changes in assumptions. The cost of warranty is net of realisable scrap value and the best estimate of relevant freight expenses. The timing of outflows will vary based on the actual warranty claims. Carrying out reconciliations with the sales data to determine completeness of transactions on which warranty obligation is determined.
Reviewing contracts with customers for terms of warranty contained therein and the estimation of warranty provision on the basis of these terms.
Testing of the data and assumptions used in the calculation of the provision for warranty obligations including those relating to estimates of failure percentages etc.
The determination of warranty provision is associated with unavoidable estimation uncertainties. Testing documentation relating to actual warranty replacement and an analysis of the actual failure trend with the estimates used in determining future warranty obligation.
Because of the quantitative significance complexity and level of judgement involved there is a risk of inappropriate and inadequate provision for warranty obligation.

Information Other than the Financial Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Director's Report and Annexures tothe Director's Report (but does not include the consolidated financial statementsstandalone financial statements and our auditors' report thereon).

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors' report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current year and are therefore the key audit matters. We describe these matters inour auditors' report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this report are in agreement with the books of account. d)In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act. e) On the basis of the written representationsreceived from the directors as on March 31 2022 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2022 from being appointedas a director in terms of Section 164(2) of the Act. f) With respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure A".Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting. g) With respect to theother matters to be included in the Auditor's Report in accordance with the requirementsof Section 197(16) of the Act as amended in our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid /payableby the Company to its directors during the year is in accordance with the provisions ofSection 197 of the Act. h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 as amended in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in its standalone financial statements. ii. The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses. iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.iv. (a) The Management has represented that to the best of it's knowledge and belief nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of it's knowledge and belief nofunds have been received by the Company from any person(s) or entity(ies) includingforeign entities.

(c) Based on the audit procedures performed that have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement. v. The final dividend proposedin the previous year declared and paid by the Company during the year is in accordancewith Section 123 of the Act as applicable.

The interim dividend declared and paid by the Company during the year is in accordancewith Section 123 of the Act.

As stated in Note 42 of the standalone financial statements the Board of Directors ofthe Company have proposed final dividend for the year which is subject to the approval ofthe members at the ensuing Annual General Meeting. The dividend proposed is in accordancewith Section 123 of the Act as applicable.

2. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For BRAHMAYYA & Co. For DELOITTE HASKINS & SELLS LLP
Chartered Accountants Chartered Accountants
(F.R.N: 000513S) (F.R.N: 117366W/W- 100018)
Karumanchi Rajaj Sumit Trivedi
Partner Partner
Membership No. 202309 Membership No. 209354
UDIN: 22202309AJHUOJ3190 UDIN: 22209354AJHUCI6534
Hyderabad May 20 2022 Hyderabad May 20 2022

ANNEXURE "A"

TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AmaraRaja Batteries Limited ("the Company") as of March 31 2022 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including 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 financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the criteria forinternal financial control over financial reporting 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.

For BRAHMAYYA & Co. For DELOITTE HASKINS & SELLS LLP
Chartered Accountants Chartered Accountants
(F.R.N: 000513S) (F.R.N: 117366W/W- 100018)
Karumanchi Rajaj Sumit Trivedi
Partner Partner
Membership No. 202309 Membership No. 209354
UDIN: 22202309AJHUOJ3190 UDIN: 22209354AJHUCI6534
Hyderabad May 20 2022 Hyderabad May 20 2022

ANNEXURE "B"

TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that: (i) (a) A. The Company has maintainedproper records showing full particulars including quantitative details and situation ofproperty plant and equipment capital work-in-progress and relevant details ofright-of-use assets.

B. The Company has maintained proper records showing full particulars of intangibleassets. (b) Some of the property plant and equipment capital work-in-progress andright-of-use assets were physically verified during the year by the Management inaccordance with a programme of verification which in our opinion provides for physicalverification of all the property plant and equipment capital work-in-progress andright-of-use assets at reasonable intervals having regard to the size of the Company andthe nature of its activities. According to the information and explanations given to usno material discrepancies were noticed on such verification.

(c) Based on the examination of the registered sale deed / Government orders providedto us we report that the title deeds of all the immovable properties (other thanimmovable properties where the Company is the lessee and the lease agreements are dulyexecuted in favour of the Company) disclosed in the standalone financial statementsincluded in property plant equipment are held in the name of the Company as at thebalance sheet date.

(d) The Company has not revalued any of its property plant and equipment (includingright-of-use assets) and intangible assets during the year.

(e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The inventories except for goods-in-transit and stocks held with thirdparties were physically verified during the year by the Management at reasonableintervals. In our opinion and based on information and explanations given to us thecoverage and procedure of such verification by the Management is appropriate having regardto the size of the Company and the nature of its operations. For stocks held with thirdparties at the year-end written confirmations have been obtained and in respect ofgoods-in-transit the goods have been received subsequent to the year-end. Nodiscrepancies of 10% or more in the aggregate for each class of inventories were noticedon such physical verification of inventories/alternate procedures performed as applicablewhen compared with the books of account. (b) According to the information and explanationsgiven to us the Company has been sanctioned working capital limits in excess of Rs 5crores in aggregate at points of time during the year from banks or financialinstitutions on the basis of security of current assets. In our opinion and according tothe information and explanations given to us the quarterly returns and statementscomprising stock statements and book debt statements filed by the Company with such banksor financial institutions are in agreement with the unaudited books of account of theCompany of the respective quarters and no material discrepancies have been observed.

(iii) (a) The Company has not provided any loans or advances in the nature of loans orstood guarantee or provided security to any other entity during the year and hencereporting under clause (iii)(a) (c) (d) (e) and (f) of the Order is not applicable.

(b) The investments made during the year are in our opinion prima facie notprejudicial to the Company's interest.

(iv) The Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of investments made as applicable. The Company has notgranted any loans or provided guarantees or securities.

(v) The Company has not accepted any deposit or amounts which are deemed to bedeposits. Hence reporting under clause (v) of the Order is not applicable.

(vi) The maintenance of cost records has been specified by the Central Government underSection 148(1) of the Companies Act 2013. We have broadly reviewed the books of accountmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained by the Company. We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

(vii) In respect of statutory dues:

(a) Undisputed statutory dues including Goods and Services Tax Provident FundEmployees' State Insurance Income-tax Sales Tax Service Tax Duty of Custom Duty ofExcise Value Added Tax cess and other material statutory dues applicable to the Companyhave been regularly deposited by it with the appropriate authorities in all cases duringthe year. There were no undisputed amounts payable in respect of Goods and Services TaxProvident Fund Employees' State Insurance Income-tax Sales Tax Service Tax Duty ofCustom Duty of Excise Value Added Tax cess and other material statutory dues in arrearsas at March 31 2022 for a period of more than six months from the date they becamepayable. (b) Details of statutory dues referred to in sub-clause (a) above which have notbeen deposited as on March 31 2022 on account of disputes are given below:

Name of Statute Nature of dues Forum where dispute is pending Period to which the amount relates Amounts involved Amount unpaid
(Rs crores) (Rs crores)
VAT Laws VAT Appellate Authority upto Commissioner level 2011-12 to 2012-13 and 2014-15 to 2017-18 3.70 2.89
Tribunal 2007-08 2009-10 and 2011-12 to 2015-16 3.27 1.78
High Court 2007-08 0.18 0.18
Sales Tax Laws Sales Tax Appellate Authority upto Commissioner level 2004-05 2011-12 to 2012-13 and 2014-15 0.38 0.37
Tribunal 2007-08 0.14 -
Entry Tax Laws Entry Tax Appellate Authority upto Commissioner level 2010-11 to 2011-12 and 2013-14 to 2014-15 1.17 0.94
Income Tax Act 1961 Income-tax Appellate 2008-09 1.03 0.40
Authority upto Commissioner 2017-18
level 2021-22
Central Excise Act 1944 Excise Duty Tribunal 2003-04 to 2007-08 and 2015-16 8.02 7.41
Finance Act 1994 Service tax Tribunal 2013-14 to 2017-18 53.59 52.30
GST Laws Goods and Appellate Authority upto 2017-18 and 2019-20 to 1.04 0.83
Services tax Commissioner level 2020-21
Customs Act 1962 Custom Duty Appellate Authority upto 2021-22 0.01 -
Commissioner level
Wealth-tax Act 1957 Wealth-tax Appellate Authority upto 2010-11 to 2011-12 0.25 0.25
Commissioner level

Out of the total disputed dues aggregating C 72.78 crores as above Rs 69.91 crores hasbeen stayed for recovery by the relevant authorities.

(viii) There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessments under the Income-tax Act 1961(43 of 1961) during the year. (ix) (a) In our opinion the Company has not defaulted inthe repayment of loans or other borrowings or in the payment of interest thereon to anylender during the year.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or Government or any Government authority.

(c) The Company has not taken any term loan during the year and there are no unutilisedterm loans at the beginning of the year and hence reporting under clause (ix)(c) of theOrder is not applicable. (d) On an overall examination of the standalone financialstatements of the Company funds raised on short-term basis have prima facie not beenused during the year for long-term purposes by the Company.

(e) The Company has not made any investment in or given any loan or advances to itssubsidiary during the year and hence reporting under clause (ix)(e) of the Order is notapplicable.

(f) The Company has not raised any loans during the year and hence reporting on clause(ix)(f) of the Order is not applicable.

(x) (a) The Company has not issued any of its securities (including debt instruments)during the year and hence reporting under clause (x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company. (xi) (a) Tothe best of our knowledge no fraud by the Company and no material fraud on the Companyhas been noticed or reported during the year. (b) To the best of our knowledge no reportunder subsection (12) of Section 143 of the Companies Act has been filed in Form ADT-4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment during the year and upto the date of this report.

(c) As represented to us by the Management there were no whistle blower complaintsreceived by the Company during the year.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable. (xiii) In our opinion the Company is in compliance with Section177 and 188 of the Companies Act where applicable for all transactions with the relatedparties and the details of related party transactions have been disclosed in thestandalone financial statements etc. as required by the applicable accounting standards.(xiv) (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(b) We have considered the internal audit reports issued to the Company during theyear and covering the period upto December 2021 and the draft of the internal auditreports were issued after the balance sheet date covering the period January 2022 to March2022 for the period under audit. (xv) In our opinion during the year the Company has notentered into any non-cash transactions with any of its directors or persons connected withsuch directors and hence provisions of Section 192 of the Companies Act 2013 are notapplicable to the Company.

(xvi) The Company is not required to be registered (a)(b) under Section 45-IA of theReserve Bank of India Act (c) 1934. Hence reporting under clause (xvi) (a) (b) and (c)of the Order is not applicable. (d) The Group does not have any Core Investment Company(‘CIC') as part of the group and accordingly reporting under clause (xvi)(d) of theOrder is not applicable. (xvii) The Company has not incurred cash losses during thefinancial year covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of

financial liabilities other information accompanying the standalone financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) The Company has fully spent the required amount towards Corporate SocialResponsibility (CSR) and there are no unspent CSR amount for the year requiring a transferto a Fund specified in Schedule VII to the Companies Act or special account in compliancewith the provisions of sub-section (6) of Section 135 of the said Act. Accordinglyreporting under clause (xx) of the Order is not applicable for the year.

(xxi) According to the information and explanations given to us and based on the CAROreport issued by and the information provided by the auditors of the companies included inthe consolidated financial statements of the Company we report that CARO is applicableonly to the Parent and to no other company included in the consolidated financialstatements. We have not reported any qualifications or adverse remarks in the CARO reportof the Parent.

For BRAHMAYYA & Co. For DELOITTE HASKINS & SELLS LLP
Chartered Accountants Chartered Accountants
(F.R.N: 000513S) (F.R.N: 117366W/W- 100018)
Karumanchi Rajaj Sumit Trivedi
Partner Partner
Membership No. 202309 Membership No. 209354
UDIN: 22202309AJHUOJ3190 UDIN: 22209354AJHUCI6534
Hyderabad May 20 2022 Hyderabad May 20 2022

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