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Andhra Paper Ltd.

BSE: 502330 Sector: Industrials
NSE: ANDHRAPAP ISIN Code: INE435A01028
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VOLUME 11570
52-Week high 509.95
52-Week low 201.10
P/E 4.11
Mkt Cap.(Rs cr) 1,750
Buy Price 0.00
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Sell Price 0.00
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OPEN 454.00
CLOSE 447.80
VOLUME 11570
52-Week high 509.95
52-Week low 201.10
P/E 4.11
Mkt Cap.(Rs cr) 1,750
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Andhra Paper Ltd. (ANDHRAPAP) - Auditors Report

Company auditors report

To

The Members of

ANDHRA PAPER LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Andhra PaperLimited ("the Company") which comprise the Balance Sheet as at March 31 2022and the Statement of Profit and Loss (including Other Comprehensive Income) Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards 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 Financial Statements section of our report. We areindependent 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 financial statements under the provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence obtained by us is sufficient and appropriate to provide a basis for ouraudit opinion on the financial statements.

Emphasis of Matter

We draw attention to Note 47 of the financial statements regarding theongoing litigation with respect to the levy of electricity duty by the State Government onconsumption of electricity by captive generating units and the interim orders of theHon'ble Supreme Court of India on hearing the Special Leave Petition filed by theCompany in respect of which the Company on grounds of prudence and abundant cautioncreated a provision amounting to H 2357.43 lakhs during the year ended March 31 2017 inview of the inherent uncertainty in predicting the final outcome of the above litigation.Additionally an amount of H 1571.62 lakhs has been disclosed as contingent liability.Based on the legal advice obtained in the opinion of the Management no further provisionwould be required in relation to this disputed matter.

Our report is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

Key Audit Matter Auditor's Response
Provisions and Contingent Liabilities (including income tax)
Refer Note 2C (e) 22 23 and 33A in the financial statements for the related disclosures. We obtained an understanding and evaluated the design and implementation and operating effectiveness of relevant controls of management's process to identify new obligations and changes in existing obligations for compliance with Ind AS 12 – Income taxes and Ind AS 37 - Provisions Contingent Liabilities and Contingent Assets.
The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management's assessment of specific circumstances of each dispute and relevant external advice management provides for its reliable estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. We analysed significant changes in material provisions from prior periods and obtained a detailed understanding of these changes and assumptions applied.
Due to the level of judgement relating to recognition valuation and presentation of provisions and contingent liabilities this is considered to be a key audit matter. Our audit procedures related to material provisions recognised and contingent liabilities disclosed in the financial statements included:
• Assessment of the recognition criteria for the liability;
• Evaluation of the methodology adopted by management for the measurement of the liability;
• Assessment of the other key measurement assumptions and inputs.
• We have requested for confirmations from the legal counsel of the Company representing the litigation matters of the Company at applicable forums and performed alternative procedures where confirmations were not received.
• We reviewed the minutes of the Board meetings including other committees.
• Testing of the mathematical accuracy of the measurement calculation;
• We have involved our internal experts with regard to direct and indirect taxes and they have also considered the legal precedence and other rulings in evaluating management position on the uncertain tax matters.
• We assessed the appropriateness of the presentation of the most significant contingent liabilities in the financial statements.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Informationbut does not include the financial statements and our auditor's report thereon. TheManagement Discussion and Analysis Board's Report including Annexures toBoard's Report Business Responsibility Report Corporate Governance andShareholder's Information report is expected to be made available to us after thedate of this auditor's report.

Our opinion on the financial statements does not cover the otherinformation and will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained during the course of our audit orotherwise appears to be materially misstated. When we read the Management Discussion andAnalysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance as required under SA 720 ‘The Auditor'sresponsibilities Relating to Other Information'.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the 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 thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

• Obtain sufficient appropriate audit evidence regarding thefinancial information of the Company to express an opinion on the financial statements.

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of accounts.

d) In our opinion the aforesaid financial statements comply with theInd AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 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)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of it'sknowledge and belief as disclosed in the notes to accounts no funds (which are materialeither individually or in the aggregate) have been advanced or loaned or invested (eitherfrom borrowed funds or share premium or any other sources or kind of funds) by the Companyto or in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of it'sknowledge and belief as disclosed in the notes to accounts no funds (which are materialeither individually or in the aggregate) have been received by the Company from anyperson(s) or entity(ies) including foreign entities ("Funding Parties") withthe understanding whether recorded in writing or otherwise that the Company shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.

(c) Based on the audit procedures that has been considered reasonableand appropriate 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 proposed in the previous year declared and paidby the Company during the year is in accordance with section 123 of the Act asapplicable. As stated in note 16.3 to the 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 amount of dividend proposed is inaccordance with 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) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For Deloitte Haskins & Sells
Chartered Accountants
(F.R. N. 008072S)
Sumit Trivedi
Partner
Place: Hyderabad (Membership No. 209354)
Date: May 5 2022 UDIN: 22209354AILPJD1425

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

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

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Andhra Paper Limited ("the Company") as of March 31 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility 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 OverFinancial Reporting 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 judgement including the assessment ofthe risks of material misstatement of the 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 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 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 March 31 2022 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Deloitte Haskins & Sells
Chartered Accountants
(F.R. N. 008072S)
Sumit Trivedi
Partner
Place: Hyderabad (Membership No. 209354)
Date: May 5 2022 UDIN: 22209354AILPJD1425

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

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

In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that:

(i) (a) A. The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment Capital work-in-progress and relevant details of right-of-use assets.

B. The Company has maintained proper records showing full particularsof intangible assets.

(b) The Company has a program of verification of property plant andequipment Capital work-in-progress and right-of-use assets so as to cover all the itemsin a phased manner over a period of three years which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogram certain Property Plant and Equipment were due for verification during the yearand were physically verified by the Management during the year except Land which has beenverified subsequent to the year end. According to the information and explanations givento us no material discrepancies were noticed on such verification.

(c) Based on the examination of the registered sale deed / transferdeed provided to us we report that the title deeds comprising all the immovableproperties (other than immovable properties where the Company is the lessee and the leaseagreements are duly executed in favour of the Company) disclosed in the financialstatements included in property plant and equipment and capital work-in progress are heldin the name of the Company as at the balance sheet date.

(d) The Company has not revalued any of its property plant andequipment (including Right of Use assets) and intangible assets during the year.

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

(ii) (a) The inventories except for goods-in-transit were physicallyverified during the year by the Management at reasonable intervals. In our opinion andbased on information and explanations given to us the coverage and procedure of suchverification by the Management is appropriate having regard to the size of the Company andthe nature of its operations. In respect of goods in-transit the goods have been receivedsubsequent to the year end. No discrepancies of 10% or more in the aggregate for eachclass of inventories were noticed on such physical verification of inventories whencompared with books of account.

(b) According to the information and explanations given to us theCompany has been sanctioned working capital limits in excess of H 5 crores in aggregateat points of time during the year from banks or financial institutions on the basis ofsecurity of current assets. In our opinion and according to the information andexplanations given to us the quarterly returns or statements comprising stock statementsand other stipulated financial information filed by the Company with such banks orfinancial institutions are in agreement with the unaudited books of account of the Companyof the respective quarters.

(iii) The Company has made investments in and granted loans oradvances in the nature of loans secured or unsecured to companies firms LimitedLiability Partnerships or any other parties during the year in respect of which:

(a) The Company has provided loans or advances in the nature of loansduring the year and details of which are given below:

Loans
(Rs in lakhs)
A. Aggregate amount granted / provided during the year:
- Others 10135
B. Balance outstanding as at balance sheet date in respect of above cases:
- Others 10295

The Company has not provided any guarantee or security to any otherentity during the year.

(b) The investments made and the terms and conditions of the grant ofall the above-mentioned loans and advances in the nature of loans during the year are inour opinion prima facie not prejudicial to the Company's interest.

The Company has not provided any guarantee or security to any otherentity during the year.

(c) In respect of loans granted or advances in the nature of loansprovided by the Company the schedule of repayment of principal and payment of interesthas been stipulated and the repayments of principal amounts and receipts of interest areregular as per stipulation.

(d) According to information and explanations given to us and based onthe audit procedures performed in respect of loans granted and advances in the nature ofloans provided by the Company there is no overdue amount remaining outstanding as at thebalance sheet date.

(e) None of the loans or advances in the nature of loans granted by theCompany have fallen due during the year. (f) According to information and explanationsgiven to us and based on the audit procedures performed the Company has not granted anyloans or advances in the nature of loans either repayable on demand or without specifyingany terms or period of repayment during the year. Hence reporting under clause (iii)(f)of the Order is not applicable. (iv) The Company has complied with the provisions ofSection 185 and 186 of the Companies Act 2013 in respect of the investments made and theloans / Inter-Corporate deposits given. The Company has not provided guarantees andsecurities.

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

(vi) The maintenance of cost records has been specified by the CentralGovernment under Section 148(1) of the Companies Act 2013. We have broadly reviewed thebooks of account maintained by the Company pursuant to the Companies (Cost Records andAudit) Rules 2014 as amended and prescribed by the Central Government under Section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedcost records have been made and maintained by the Company. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) According to the information and explanations given to us

In respect of statutory dues:

(a) Undisputed statutory dues including Goods and Service taxProvident Fund Employees' State Insurance Income-tax Sales Tax Customs DutyExcise Duty Value Added Tax cess and other material statutory dues applicable to theCompany have generally been regularly deposited by it with the appropriate authorities.

There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees' State Insurance Income-tax Sales TaxService Tax Customs Duty Excise Duty Value Added Tax cess and other material statutorydues in arrears as at March 31 2022 for a period of more than six months from the datethey became payable.

(b) Details of statutory dues referred to in sub-clause (a) which havenot been 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 Amount Involved ( J lakhs) Amount Unpaid (J lakhs)
Income Tax Act1961 Tax Commissioner of Income Tax (Appeals) Visakhapatnam 2010-11 and 2011-12 17.34 17.34
High Court of Andhra Pradesh 2001-02 to 2003-04 12.64 12.64
Income Tax Appellate Tribunal Hyderabad 2001-02 14.26 14.26
2008-09 40.08 40.08
Central Sales Tax Act 1956 Interest Tax High Court of Andhra Pradesh 1979-80 24.96 24.96
Appellate Deputy Commissioner Visakhapatnam 2008-09 21.54 21.54
Appellate Deputy Commissioner Vijayawada 2014-15 to 2015-16 56.12 49.46
Sales Tax Appellate Tribunal Visakhapatnam 2005-06 33.82 16.53
Andhra Pradesh General Sales Tax Act 1957 & Central Sales Tax Act 1956 Tax Sales Tax Appellate Tribunal Visakhapatnam 1995-96 to 1999-2000 27.41 27.41
Andhra Pradesh General Sales Tax Act 1957 Tax High Court of Andhra Pradesh 1990-99 and 2000-05 126.78 126.78
Sales Tax Appellate Tribunal Visakhapatnam 1996-97 10.82 6.58
AP Value Added Tax Act 2005 Penalty Assistant Commissioner LTU Kakinada 2009-2012 15.72 15.68
Tax Sales Tax Appellate Tribunal Visakhapatnam 2009 - 2012 23.66 11.84
Tax Appellate Deputy Commissioner Vijayawada 2015-16 to 2017 117.91 72.87
Penalty Appellate Deputy Commissioner Vijayawada 2015-16 to 2017 11.79 5.89
Penalty Assistant Commissioner LTU Kakinada 2016-17 13.91 13.91
Madhya Pradesh Value Added Tax Act 2002 Tax High Court Madhya Pradesh 1997-98 15.00 15.00
West Bengal Value Added Tax 2005 Tax Additional Commissioner of Commercial Taxes 2009-10 1.78 1.78
Kerala Value Added Tax 2003 Tax & Interest Joint Commissioner (Appeals) Ernakulam 2016-17 40.18 34.48
Orissa Entry Tax Act 1999 Tax Deputy Commissioner of Commercial Taxes 2006-07 to 2009-10 4.24 3.38
Central Excise Act 1944 Duty High Court of Andhra Pradesh 1996-97 and 1997-98 10.90 10.90
February 1994 0.36 0.36
Duty & Penalty Customs Excise & Service Tax Appellate 2001 to 2012 1538.33 1538.33
Tribunal Hyderabad 2005-06 to 2008-09 1394.11 1394.11
Commissioner of Central Excise (Appeals) Visakhapatnam 2006 140.36 140.36
High Court of Andhra Pradesh 2000-01 to 2007-08 385.15 385.15
Finance Act 1994 Service Tax & Commissioner of Central Excise (Appeals) Visakhapatnam 2004-05 to 2012-13 337.19 337.19
Penalty Customs Excise & Service Tax Appellate Tribunal Bangalore March 2012 105.11 105.11
Andhra Pradesh Forest Act 1957 Bamboo Royalty Interest High Court of Andhra Pradesh 1988-89 283.35 183.35
Oct 1980 to March 1986 1561.31 1561.31
Andhra Pradesh Municipal Laws (Second amendment) Act 2020 Property Tax & Interest IInd Additional Junior Civil Judge Rajamahendravaram 2016-17 to 2018-19 116.64 116.64
High Court of Andhra Pradesh 2007-08 to 2021-22 491.76 289.80
Employees' Provident Funds & Miscellaneous Provisions Act1952 Provident Fund Central Government Industrial Tribunal Cum Labour Court Hyderabad March 2007 to October 2009 27.30 4.63
Andhra Pradesh Municipal Laws (Second amendment) Act 2020 Vacant Land Tax High Court of Andhra Pradesh 2001-02 to 2012-13 505.58 265.87
Electricity Act 2003 Electricity Duty Supreme Court July 2003 to June 2013 3929.05 2427.00

(viii) There were no transactions relating to previously unrecordedincome that were surrendered or disclosed as income in the tax assessments under theIncome Tax Act 1961 (43 of 1961) during the year.

(ix) (a) In our opinion the Company has not defaulted in the repaymentof loans or other borrowings or in the payment of interest thereon to any lender duringthe year.

(b) The Company has not been declared willful defaulter by any bank orfinancial institution or government or any government authority.

(c) To the best of our knowledge and belief in our opinion term loansavailed by the Company were applied by the Company during the year for the purposes forwhich the loans were obtained.

(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.

(e) The Company has not made any investment in or given any new loan oradvances to any of its subsidiaries associates or joint ventures during the year andhence reporting under clause (ix)(e) of the Order is not applicable.

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

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

(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally) and hence reporting under clause (x)(b) of the Order is not applicable to theCompany.

(xi) (a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.

(b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during theyear.

(c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year and provided to us when performing our audit.

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

(xiii) In our opinion the Company is in compliance with Section 177and 188 of the Companies Act 2013 where applicable for all transactions with therelated parties and the details of related party transactions have been disclosed in thefinancial statements etc. as required by the applicable Indian accountingstandards.

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports issued to theCompany on certain scoped in areas during the year and covering the period upto January2022 and the draft of the internal audit reports for certain other scoped in areas wereissued after the balance sheet date covering the period January 2021 to December 2021 forthe period under audit.

(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with its directors or directors of its holding companysubsidiary company or persons connected with such directors and hence provisions ofSection 192 of the Companies Act 2013 are not applicable to the Company. The Company doesnot have an associate company.

(xvi) (abc) The Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause(xvi)(a) (b) and (c) of the Order is not applicable.

(d) The Group does not have any CIC as part of the group andaccordingly reporting under clause (xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realization of financial assets and payment of financial liabilities and our knowledgeof the Board of Directors and Management plans and based on our examination of theevidence supporting the assumptions nothing has come to our attention which causes us tobelieve that any material uncertainty exists as on the date of the audit report indicatingthat Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

(xx) (a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause(xx)(a) of the Order is not applicable for the year.

(b) In respect of ongoing projects the Company has transferred unspentCorporate Social Responsibility (CSR) amount to a Special account before the date of thisreport and within a period of 30 days from the end of the financial year in compliancewith the provision of section 135(6) of the Act.

For Deloitte Haskins & Sells
Chartered Accountants
(F.R. N. 008072S)
Sumit Trivedi
Partner
Place: Hyderabad (Membership No. 209354)
Date: May 5 2022 UDIN: 22209354AILPJD1425

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