The Members of
ANDHRA CEMENTS LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Andhra Cements Limited("the Company") which comprise the Balance Sheet as at March 31 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to theFinancial Statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the Financial Statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid 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 the loss and total comprehensiveloss changes in equity and its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
Emphasis of Matters
We draw attention to Note 33(iv) to the financial statements in respect ofconfiscation of imported capital goods having import value of Rs 3979 lakhs due tonon-fulfillment of certain export obligations.
Our opinion on the financial statement is not modified in respect of above statedmatter.
Material Uncertainty Related to Going Concern
We draw attention to Note 35 to the financial statements which describe the status ofCorporate Insolvency Resolution Process ("CIRP"). The Company has been referredto National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code (IBC). NCLThas admitted the case vide Order No. CP (IB) No. 37/7/AMR/2022 Dated 26.04.2022 andInsolvency Resolution Professional (IRP) has also been appointed. The process is currentlyunderway as on date of report and consequently effect in the financial statements will begiven once the process is complete. These events indicate the existence of a materialuncertainty that may cast significant doubt on the company's ability to continue as goingconcern.
The above assessment of the Company's ability to continue as going concern is by itsnature considered as a key audit matter in accordance with SA 701. In relation to theabove key audit matter our audit work included but was not limited to the followingprocedures:
a) Obtaining an understanding of the management's process for identifying all events orconditions that may cast significant doubt over the company's ability to continue as agoing concern and a process to assess the corresponding mitigating factors existingagainst each such event or condition. Also obtained an understanding around themethodology adopted by the Company to assess their future business performance includingthe preparation of a cash flow forecast for the business;
b) Evaluating the design and tested the operating effectiveness of key controls aroundaforesaid identification of events or conditions and mitigating factors and controlsaround cash flow projections prepared by the management;
c) Obtaining from the management its projected cash flows for the next twelve monthsbasis their future business plans;
d) Assessing the methodology used by the management to estimate the cash flowprojections including the appropriateness of the key assumptions in the cash flowprojections for next 12 months by considering our understanding of the business and pastperformance of the Company apart from discussing these assumptions with the management andthe Audit Committee; and
e) Assessing that the disclosures made by the management are in accordance with theapplicable accounting standards.
Our opinion is not modified in respect of above matter.
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 period.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
Except for the Matter described in the Material Uncertainty Related to Going Concernsection we have determined that there are no other Key Audit Matters to communicate inour report.
Information other than the Financial Statements and Auditor's Report thereon:
The Company's Management is responsible for the preparation of the other information.The other information comprises the information included in the Board's Report includingAnnexures to Board's Report Management Discussion and Analysis / Business ResponsibilityReport/ Corporate Governance and Shareholder's Information but does not include thefinancial statements and our auditor's report thereon. The above-referred information isexpected to be made available to us after the date of this audit report.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information; we are required to report thatfact.
When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and take appropriate actions necessitated by the circumstances and theapplicable laws and regulations.
Responsibilities of the Management and those charged with Governance for the FinancialStatements
The company is undergoing Corporate Insolvency Resolution Process ("CIRP") interms of the provisions of the Insolvency & Bankruptcy Code 2016 ("IBC")vide order dated 26.04.2022 passed by the National Company Law Tribunal ("NCLT")Hyderabad wide order no. CP (IB) No. 37/7/AMR/2022 in the matter of Andhra Cement Ltd. Vs.Pridhvi Assets Reconstruction and Securitization Company Ltd. As per Section 13(2)151718 and 20 of the Insolvency Code and rules made there under Interim ResolutionProfessional (IRP) Mr. Nirav Kirit Pujara has been appointed and directed to take chargeof the management of the company and take necessary steps in furtherance of the CIRP. IRPis currently managing the operations of the company and accordingly financial statementhave been prepared on going concern basis.
The Company's Management is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act Read with Rule 7 of Companies(Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the Financial Statements the Management is responsible for assessing thecompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless the Boardof Directors either intends to liquidate the company or to cease operations or has norealistic alternative but to do so.
The Management is also responsible for overseeing the company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 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 controls relevant to the auditin 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 the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concernbasis 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.
c. The Balance Sheet and the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e. On the basis of the written representations received from the non-independentdirectors as on March 31 2022 pending to be taken on record by the Board of Directorsas it is under corporate Insolvency Resolution Process none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of Section164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure-A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's Internal FinancialControls with reference to financial statements.
g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the information andexplanations given to us the Company has not paid any remuneration to its directors inaccordance with the provisions of Section 197 of the Act.
h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements (Refer Note No. 33 Contingent liabilities andcommitments of the Financial Statements).
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;
(iii) According to the information and explanation given to us an amount of Rs 101.91lakhs and
Rs 1.92 lakhs pertaining to unpaid/unclaimed matured Deposits and Redeemable CumulativeFirst Preference Shares respectively are yet to be transferred to the Investor Educationand Protection Fund by the Company as on March 31 2022.
(iv) (a) The management has represented to us that to the best of management'sknowledge and belief other than as disclosed in the notes to the accounts no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the company to or in any other person or entityincluding foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the company ("Ultimate Beneficiaries") or provide anyguarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented to us that to the best of management's knowledgeand belief other than as disclosed in the notes to the accounts no funds have beenreceived by the company from any person or entity including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries; and
(c) According to the information and explanations given to us and based on ourexamination of the records of the company nothing has come to our notice that has causedus to believe that the representations made above contain any material mis-statement.
v. The company has not declared or paid any dividend during the year.
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 "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.
|For Dass Gupta & Associates |
|Chartered Accountants |
|Firm Reg. No: 000112N |
|CA Pankaj Mangal |
|(Membership No. 097890) |
|UDIN No: 22097890AJWLBF6285 |
|Place: Delhi |
|Date:30th May 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 to the Members of Andhra Cement Limited of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AndhraCements Limited ("the Company") as of 31 March 2022 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The company is undergoing Corporate Insolvency Resolution Process ("CIRP") interms of the provisions of the Insolvency & Bankruptcy Code 2016 ("IBC")vide order dated 26.04.2022 passed by the National Company Law Tribunal ("NCLT")Hyderabad wide order no. CP (IB) No. 37/7/AMR/2022 in the matter of Andhra Cements Ltd.Vs. Pridhvi Assets Reconstruction and Securitization Company Ltd. As per Section 13(2)151718 and 20 of the Insolvency Code and rules made there under Interim ResolutionProfessional (IRP) Mr. Nirav Kirit Pujara has been appointed and directed to take chargeof the management of the company and take necessary steps in furtherance of the CIRP.
National Company Law Tribunal ("NCLT") Hyderabad vide its order dated26.04.2022 has directed the IRP to complete the CIRP within 180 days by inviting thecreditors of Andhra Cements Limited to submit claims on or before 10th May 2022 to theIRP.
IRP is currently managing the operations of the company and financial statements havebeen prepared on going concern basis.
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 (ICAI'). 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 safeguarding ofits 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 2013.
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") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated 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 judgment 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 with reference to Financial Reporting
A company's internal financial control with reference to financial reporting is aprocess 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 control overfinancial 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 reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations 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 with reference Financial statements
Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 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.
|For Dass Gupta & Associates |
|Chartered Accountants |
|Firm Reg. No: 000112N |
|CA Pankaj Mangal |
|(Membership No. 097890) |
|UDIN No: 22097890AJWLBF6285 |
|Place: Delhi |
|Date:30th May 2022 |
ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2 under the heading of "Report on Other Legal andRegulatory Requirements" section of our Report to the members of Andhra CementsLimited of even date.)
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that: -
(i) In respect of the Company's Property Plant and Equipment and Intangible Assets:
(a) (A) According to the information and explanations given to us and the recordsexamined by us. the Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.
(B) According to the information and explanations given to us and the records examinedby us the Company does not have any intangible assets. Therefore the reporting underthis clause is not applicable.
(b) A substantial portion of Property Plant and Equipment has been physically verifiedby the management during the year and in our opinion the frequency of verification isreasonable having regard to the size of the company the nature of its assets. Accordingto the information given to us and to the best of our knowledge no material discrepancieswere noticed on such physical verification.
(c) According to the information and explanations given to us and the records examinedby us we report that the title deeds comprising the immovable property of Land are heldin the name of company as at the balance sheet date.
(d) According to the information and explanations given to us and the records examinedby us the company has not revalued its Property Plant and Equipment during the year.
(e) According to the information and explanations given to us and the records examinedby us there are no proceedings have been initiated or are pending against the company forholding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of1988) and rules made thereunder.
(ii) In respect of the Company's Inventory:
(a) According to the information and explanations given to us the Inventory has beenphysically verified by the management at reasonable intervals during the year. In ouropinion the coverage and procedure of such verification by the management is appropriate.According to the information and explanations given to us and the records examined by usno discrepancies of 10% or more in the aggregate for each class of inventory were noticedon physical verification.
(b) According to the information and explanations given to us and the records examinedby us the accounts of the company with the lenders are Non-Performing Assets (NPA) and noworking capital limit is sanctioned or renewed during the year on the basis of security ofcurrent assets. Accordingly reporting under paragraph 3(ii)(b) of the Order is notapplicable to the company.
(iii) According to the information and explanations given to us and the recordsexamined by us during the year the company has not made any investments in provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms Limited Liability Partnerships or any other parties.Therefore reporting under paragraph 3(iii) of the Order is not applicable to the company.
(iv) According to the information and explanations given to us and the records examinedby us the Company has generally complied with the provisions of Sections 185 and 186 ofthe Act with respect to the loans given investments made guarantees given and securityprovided.
(v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of Section 73 to 76 of the Act and the rulesframed thereunder to the extent notified during the year. Further in respect of depositsaccepted by the Company during an earlier year the Company Law Board (Southern RegionalBench) has by its order dated July 07 2001 directed the company to repay the saiddeposits in accordance with the scheme sanctioned by the BIFR. However the BIFR in itsModified Rehabilitation Scheme dated July 21 2008 directed the fixed deposits holders toaccept the outstanding principal amount in four annual installments on interest freebasis. Further no other Order against the Company has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal. In respect of these deposits the Company is yet to comply with the requirementof maintaining liquid assets and filing of Return of Deposit. The unclaimed matureddeposits of Rs101.91 lacs at year end are shown under the head "Other FinancialLiabilities".
(vi We have broadly reviewed the cost records maintained by the company pursuant to theCompanies (Cost Accounting Records) Rules 2014 made by Central Government for themaintenance of cost records u/s 148(1) of the Companies Act 2013 and we are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have not made a detailed examination of these records. However Cost Auditfor the previous year has not been conducted till date.
vii) According to the information and explanations given to us undisputed statutorydues including Goods and
Services tax provident fund employees' state insurance duty of custom TDS and anyother statutory dues have not been regularly deposited by the company with the appropriateauthorities and there have been serious delays in a large number of cases.
|Name of the Statute ||Nature of Dues ||Amount ( Rs in lakhs) ||Period to which it relates ||Due Date ||Date of payment ||Remarks if any |
|Goods and Services Tax Act 2017 ||GST Principal ||2589.38 ||July-19 to September-21 ||20 days after the end of month ||Not paid || |
|Goods and Services Tax Act 2017 ||Interest on GST ||2964.07 ||October-17 to September-21 ||20 days after the end of month ||Not paid || |
|Provident Fund ||PF Amount ||132.95 ||February-20 to August-21 ||15 days after the end of the month ||Not paid || |
|Tax Deducted at Source ||TDS Amount ||14.87 ||April-21 to August-21 ||7 days after the end of the month ||Not paid || |
|Customs Duty ||Tax amount ||949.72 ||July-08 to June- 09 ||BOE date ||Not paid || |
|Customs Duty ||Interest ||2051.11 ||July-08 to September- 21 ||BOE date ||Not paid || |
|Employees State Insurance ||Tax ||0.92 ||April-21 to August-21 ||15 days after the end of the month ||Not Paid || |
|Professional Tax ||Tax ||3.01 ||October 20 to August-21 ||10 days after the end of the month ||Not paid || |
(b) According to the information and explanations given to us and the records of theCompany examined by us the company has following dues in respect of Central ExciseService Tax sales Tax VAT GST Income Tax which have not been deposited on account ofany dispute:
| || || || ||(In Rs Lakh) |
|Nature of Statute ||Nature of the dues ||Period to which amount relates ||Forum where dispute is pending ||Amount (net of pre-deposit under Protest) |
|Central Excise Duty ||Tax ||2003-04 ||High Court ||10.61 |
| ||Tax ||2005-11 ||CESTAT ||650.96 |
| ||Tax ||2006-08 ||CESTAT ||140.50 |
| ||Tax ||2009-10 ||CESTAT ||1.82 |
| ||Tax ||1994-2012 ||Supreme Court ||984.70 |
| ||Tax ||2012-15 ||CESTAT ||799.53 |
| ||Tax ||2006-09 ||CESTAT ||231.00 |
|Service Tax ||Tax ||2013-15 ||CESTAT ||55.65 |
| ||Tax ||2012-16 ||CESTAT ||32.85 |
| ||Tax ||2007-09 ||CESTAT ||32.29 |
| ||Tax ||2008-09 ||CESTAT ||16.33 |
| ||Tax ||2015-17 ||Commissioner Appeals ||94.95 |
|Sales Tax ||Tax and Penalty ||1994-95 ||High Court ||26.96 |
| ||Tax ||2000-01 ||Tribunal ||8.11 |
| ||Interest ||1990-91 ||High Court ||16.65 |
| ||Interest ||1991-92 ||High Court ||6.53 |
| ||Tax ||2013-14 ||Appellate Deputy Commissioner (CT) ||4.26 |
| ||Tax ||2014-15 ||High Court (CTO) ||139.50 |
| ||Tax ||2015-16 ||Appellate Deputy ||63.39 |
| || || ||Commissioner || |
| ||Tax ||2016-17 ||Appellate Deputy ||16.93 |
| || || ||Commissioner || |
|Value Added tax ||Tax ||2013-15 ||Tribunal ||10.22 |
|Goods and Service Tax ||Tax ||2016-18 ||Commissioner Appeals ||178.39 |
| ||Tax ||2016-18 ||Commissioner Appeals ||5.76 |
|Income Tax ||Penalty ||2014-15 ||National Faceless Appeal centre (NFAC) ||2.22 |
viii. According to the information and explanations given to us and the recordsexamined by us there are no such transactions which are not recorded in the books ofaccount and have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).
ix. (a) According to the information and explanations given to us the Company hasdefaulted in repayment of principal and interest to Financial Institutions and Banks andlender (PARAS) as on the reporting date as given below:
|Nature of borrowing including debt securities ||Name of lender ||Amount not paid On due date (Rs In lakhs) ||Whether Principal or interest ||No. of days delay or unpaid (In Days) ||Remarks if any |
|Term Loan ||Edelweiss-PARAS ||36573.73 ||Principal ||112-1156 || |
| ||HDFC -PARAS || || || || |
|Term Loan || ||36748.04 ||Principal ||112-1338 || |
|Term Loan ||Karur vasya -PARAS ||4802.00 ||Principal ||999-1065 || |
|Term Loan ||Andhra bank ||9801.00 ||Principal ||1125-1156 || |
|Total Principal overdue || || || || || |
|Term Loan ||Edelweiss-PARAS ||16268.31 ||Interest ||1-1399 || |
|Term Loan ||HDFC -PARAS ||12929.88 ||Interest ||1-1126 || |
|Term Loan ||Karur vasya -PARAS ||1733.31 ||Interest ||1-1126 || |
|Term Loan ||Andhra bank ||4409.03 ||Interest ||1-1215 || |
|Total Interest overdue || ||35340.53 || || || |
|Total principal and interest overdue || ||123265.30 || || || |
*Andhra Bank and Pridhvi Assets Reconstruction and Securitization Company Ltd (PARAS)declared the term loans as Non-Performing Assets (NPA) and recalled the entire amountincluding interest there on before the financial year ended March 31 2020 and March 312022 respectively.
(a) In our opinion and according to the information and explanations given to us thecompany has not been declared wilful defaulter by any bank or financial institution orgovernment or any government authority.
(b) According to the information and explanations given to us and the records examinedby us term loans have been applied for the purpose for which they were obtained. Furtherthe company has not received any term loan during the year.
(c) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the companyno funds raised on short-term basis have been used for long-term purposes by the company.
(d) According to the information and explanations given to us and on an overallexamination of the financial statements of the company the company has not taken anyfunds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.
(e) According to the information and explanations given to us and procedures performedby us the company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate companies.
(x) (a) The company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year.
(b) According to the information and explanations give to us and the records examinedby us the Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully or partially or optionally convertible) during the yearand hence reporting under clause 3(x)(b) is not applicable to the company.
(xi) (a) According to the information and explanations given to us and the recordsexamined by us no fraud by the company and no material fraud on the company has beennoticed or reported during the year.
(b) According to the information and explanations given to us and the records examinedby us no report under sub-section (12) of section 143 of the Companies Act has been filedby the auditors in Form ADT-4 as prescribed under rule
13 of Companies (Audit and Auditors) Rules 2014 with the Central Government.
(c) As represented to us by the management there are no whistle blower complaintsreceived by the company during the year.
(xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Therefore reporting under paragraph 3(xii) of the Orderis not applicable to the company.
(xiii) In our opinion and according to the information and explanations given to us andthe records examined by us all transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.
(xiv) (a) In our opinion and based on our examination though the company is requiredto have and internal audit system under section 138 of the Act it does not have the sameestablished for the year.
(b) the Company did not have an internal audit system for the period under audit.
(xv) In our opinion and according to the information and explanations given to usduring the year the company has not entered into any non-cash transactions with itsdirectors or persons connected with its directors and hence provisions of section 192 ofthe Companies Act 2013 are not applicable to the company.
(xvi) (a) In our opinion and according to the information and explanations given to usthe company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
(b) In our opinion and according to the information and explanations given to us thecompany has not conducted any Non-Banking Financial or Housing Finance activities.
(c) In our opinion and according to the information and explanations given to us thecompany is not a Core Investment Company (CIC) as defined in the regulations made by theReserve Bank of India.
(d) In our opinion and according to the information and explanations given to us theGroup has no CIC as part of the Group.
(xvii)In our opinion and according to the information and explanations given to us andthe records examined by us the company has incurred following cash losses in thefinancial year and in the immediately preceding financial year:
|Financial Year ||Amount (Rs lakhs) |
|2021-22 ||16696 |
|2020-21 ||15336 |
(xviii) There has been no resignation of the statutory auditors during the year andaccordingly this clause is not applicable.
(xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans we areof the opinion that material uncertainty exists as on the date of the audit report for theCompany for meeting out its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date.
(xx) In our opinion and according to the information and explanations given to us andthe records examined by us no amount was required to be spent by the company on theactivities of CSR as per provisions of Companies Act 2013. Accordingly reporting underparagraph 3(xx) of the Order are not applicable to the company.
|For Dass Gupta & Associates |
|Chartered Accountants |
|Firm Reg. No: 000112N |
|CA Pankaj Mangal |
|(Membership No. 097890) |
|UDIN No: 22097890AJWLBF6285 |
|Place: Delhi |
|Date:30th May 2022 |