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Astrazeneca Pharma India Ltd.

BSE: 506820 Sector: Health care
NSE: ASTRAZEN ISIN Code: INE203A01020
BSE 00:00 | 29 Nov 3331.45 -25.00
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NSE 00:00 | 29 Nov 3334.00 -26.95
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OPEN 3372.85
PREVIOUS CLOSE 3356.45
VOLUME 565
52-Week high 3619.70
52-Week low 2437.75
P/E 90.41
Mkt Cap.(Rs cr) 8,329
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3372.85
CLOSE 3356.45
VOLUME 565
52-Week high 3619.70
52-Week low 2437.75
P/E 90.41
Mkt Cap.(Rs cr) 8,329
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Astrazeneca Pharma India Ltd. (ASTRAZEN) - Auditors Report

Company auditors report

To the Members of AstraZeneca Pharma India Limited Report on the Audit of the financialstatements Opinion

1. We have audited the accompanying financial statements of AstraZeneca Pharma IndiaLimited ("the Company") which comprise the Balance Sheet as at March 31 2022and the Statement of Profit and Loss (including Other Comprehensive Income) the Statementof changes in equity and the Statement of cash flows for the year then ended and notes tothe financial statements including a summary of significant accounting policies and otherexplanatory information.

2. 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 accounting principles generally accepted in India of thestate of affairs of the Company as at March 312022 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year then ended.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the "Auditor's Responsibilities for the Audit of the FinancialStatements" section of our report. We are independent of ' the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key audit matters

4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
Appropriateness of provisions recognised and contingent liabilities disclosed in respect of certain direct indirect tax and regulatory matters Our procedures included the following:
(Refer to the note 19 - "Provisions" note 20 - "Current tax liabilities (net)" and note 32(b) - "Contingent liabilities" to the financial statements) • Understood evaluated and tested the design and operating effectiveness of controls in respect of identifying tax and regulatory exposures its accounting and disclosures thereof.
There are certain direct indirect tax and regulatory matter pending against the Company. • Obtained a listing of the litigation matters and read the correspondence with tax and regulatory authorities and where relevant the advice received by the management from its external consultants.
Direct tax cases include demands in respect of transfer pricing adjustments on transactions with overseas group companies disallowance of certain expenses incurred taxability of subvention receipt and certain expense reimbursements and certain other disallowances. • Evaluated the independence objectivity and competence of the management experts involved.
Indirect tax cases include: • Along with auditors' tax and regulatory experts:
• service tax demands raised on expenses incurred in foreign currency reimbursements from overseas group companies recovery of notice period pay from former employees and ineligible input tax credit claimed on certain expenses and a. Gained an understanding of the current status of litigations through our inquiries with management and determined impact if any based on recent rulings and latest developments in respective laws.
• goods and services tax demand pertaining to certain category of medicines supplied by the Company. b. Evaluated management's assessment on the probability of outcome and the magnitude of potential outflow of economic resources in respect of:
Regulatory matters pertains to demand from National Pharmaceutical Pricing Authority (NPPA) in respect of alleged overcharging of a patented drug. (i) provisions for uncertain tax exposures based on case history and other available evidence to challenge the valuation and completeness of the provisions recognised by the Management and
As at March 312022 the Company has tax demands pertaining to the above direct and indirect tax matters aggregating to Rs 1256.2 million (including interest and penalties where applicable) of which Rs 42.5 million has been provided for and Rs 1213.7 million alongwith regulatory demand of Rs 1573.9 million has been disclosed as contingent liabilities which are significant to the financial statements. (ii) regulatory matter.
The Company has filed appeals against these demands with various appellate forums and High Court of Delhi which are currently pending for adjudication. c. Examined the evaluation obtained from the Company's internal legal counsel to confirm our understanding of outstanding cases.
Management judgement is involved in evaluation of the likelihood of ultimate outcome of the tax and regulatory disputes and the probable amount of the provision to be recognised and contingent liabilities to be disclosed and is hence determined to be a key audit matter. d. Evaluated the adequacy of disclosures made in the financial statements.
Based on the above procedures we found the judgements made by the Management in recognising provisions and in determining and disclosing contingent liabilities in respect of the aforesaid tax and regulatory matters to be reasonable.

Other Information

5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisReport Board's Report including Annexures to Board's Report Business ResponsibilityReport and Corporate Governance report but does not include the financial statements andour auditor's report thereon.

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 and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for thefinancial statements

6. 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 financial statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

7. In preparing the financial statements 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 managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's responsibilities for the audit of the financial statements

8. 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.

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

a. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3) (i) ofthe Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

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

d. 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 auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

e. 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.

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

11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's 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

13. As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in the "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

14. As required by Section 143(3) of the Act 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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of changes in equity and the Statement of cash flows dealt with bythis Report 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.

(e) On the basis of the written representations received from the directors as on March312022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312022 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A".

(g) 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 Notes 19 and 32(b) to the financialstatements.

ii. The Company has long-term contracts as at March 312022 for which there are nomaterial foreseeable losses. The Company did not have any derivative contracts as at March31 2022.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year.

iv. (a) The management has represented that to the best of its knowledge and beliefas disclosed in the notes to the accounts no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other person(s) or entity(ies) including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries (Refer Note 44 to the financial statements);

(b) The management has represented that to the best of its knowledge and belief asdisclosed in the notes to the accounts no funds have been received by the Company fromany person(s) or entity(ies) including foreign entities ("Funding Parties")with the understanding whether recorded in writing or otherwise that the Company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries (Refer Note 44 to the financial statements); and

(c) Based on such audit procedures that we considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material misstatement.

v. The dividend declared and paid during the year by the Company is in compliance withSection 123 of the Act.

15. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

Annexure A to Independent Auditor's Report

Referred to in paragraph 14(f) of the Independent Auditor's Report of even date to themembers of AstraZeneca Pharma India Limited on the financial statements as of and for theyear ended March 31 2022

Report on the Internal Financial Controls with reference to Financial Statementsunder Section 143(3)(i) of the Act

1. We have audited the internal financial controls with reference to financialstatements of AstraZeneca Pharma India Limited ("the Company") as of March312022 in conjunction with our audit of the financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI").

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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 Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. 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 with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

6. A company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

7. 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 312022 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note issued by ICAI.

Annexure B to Independent Auditors' Report

Referred to in paragraph 13 of the Independent Auditors' Report of even date to themembers of AstraZeneca Pharma India Limited on the financial statements as of and for theyear ended March 31 2022

i. (a) (A) The Company is maintaining 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 of theCompany examined by us the Company does not have any Intangible assets and accordinglyreporting under this Clause is not applicable.

(b) The Property plant and equipment are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme a portion of the Property plant andequipment has been physically verified by the Management during the year and no materialdiscrepancies have been noticed on such verification.

(c) The title deeds of all the immovable properties (other than properties where theCompany is the lessee and the lease agreements are duly executed in favour of the lessee)as disclosed in Note 3 Property plant and equipment to the financial statements are heldin the name of the Company.

(d) The Company has not revalued its Property plant and equipment (includingRight-of-use assets) during the year. Consequently the question of our commenting onwhether the revaluation is based on the valuation by a Registered Valuer or specifyingthe amount of change if the change is 10% or more in the aggregate of the net carryingvalue of each class of Property plant and equipment (including Right-of-use assets) doesnot arise.

(e) Based on the information and explanations furnished to us no proceedings have beeninitiated or are pending against the Company for holding benami property under theProhibition of Benami Property Transactions Act 1988 (as amended in 2016) (formerly theBenami Transactions (Prohibition) Act 1988 (45 of 1988)) and Rules made thereunder andtherefore the question of our commenting on whether the Company has appropriatelydisclosed the details in its financial statements does not arise.

ii. (a) The physical verification of inventory [excluding stocks with third parties]has been conducted at reasonable intervals by the Management during the year and in ouropinion the coverage and procedure of such verification by Management is appropriate. Inrespect of inventory lying with third parties these have substantially been confirmed bythem. The discrepancies noticed on physical verification of inventory as compared to bookrecords were not 10% or more in aggregate for each class of inventory.

(b) During the year the Company has not been sanctioned working capital limits inexcess of Rs 5 crores in aggregate from banks and financial institutions and accordinglythe question of our commenting on whether the quarterly returns or statements are inagreement with the unaudited books of account of the Company does not arise.

iii. (a) The Company has granted unsecured loans to the employees of the Company. Theaggregate amount during the year and balance outstanding as at the Balance Sheet datewith respect of such loans are as per the table given below:

Particulars Loans - given to employees (in Rs Million)
Aggregate amount granted during the year 3.4
Balance loan outstanding as at balance sheet date 5.0

(b) In respect of the aforesaid interest free loans/advances in nature of the loan theterms and conditions under which such loans were granted are not prejudicial to theCompany's interest.

(c) In respect of the aforesaid interest free loans/advances in nature of loans theschedule of repayment of principal has been stipulated and the parties are repaying theprincipal amounts as stipulated.

(d) In respect of the loans/advances in nature of loans there is no amount which isoverdue for more than ninety days.

(e) There were no loans /advances in nature of loans which fell due during the year andwere renewed/extended. Further no fresh loans were granted to same parties to settle theexisting overdue loans/advances in nature of loan.

(f) There were no loans/advances in nature of loans which were granted during the yearincluding to promoters/ related parties.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Sections 185 and 186 of the Act.Therefore the reporting under clause 3(iv) of the Order are not applicable to theCompany.

v. The Company has not accepted any deposits or amounts which are deemed to be depositswithin the meaning of Sections 73 74 75 and 76 of the Act and the Rules framed thereunder to the extent notified.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues in respect of provident fund and professional tax thoughthere has been slight delays in few cases and is regular in depositing undisputedstatutory dues including goods and services tax employees' state insurance income taxsales tax service tax duty of customs value added tax and other material statutorydues as applicable with the appropriate authorities. Also refer note 46 to thefinancial statements regarding management's assessment on certain matters relating toprovident fund.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no statutory dues of provident fund employees' stateinsurance sales tax which have not been deposited on account of any dispute. Theparticulars of other statutory dues referred to in sub-clause (a) as at March 31 2022which have not been deposited on account of a dispute are as follows:

Name of the statute Nature of dues Gross demand (in Rs Million) Amount paid under protest (in Rs Million) Net amount (in Rs Million) Period to which the amount relates Forum where the dispute is pending
The Income Tax Act 1961 Income Tax 5.1 5.1 - 2009-10 Income Tax Appellate Tribunal
Income Tax* 6.2 6.2 - 2010-11 Income Tax Appellate Tribunal
Income Tax** 224.1 224.1 - 2013-14 Income Tax Appellate Tribunal
Income Tax*** 141.4 141.4 - 2014-15 Income Tax Appellate Tribunal
Income Tax 156.1 - 156.1 2015-16 Income Tax Appellate Tribunal
Income Tax 312.1 - 312.1 2016-17 Assistant Commissioner of Income Tax
Income Tax 23.2 - 23.2 2019-20 Commissioner of Income Tax (Appeals)
Punjab Value Added Tax Act 2005 Value Added Tax (VAT) 1.8 0.2 1.6 2006-07 High Court of Punjab and Haryana
Customs Act 1962 Custom duty 21.2 - 21.2 2005-06 Customs Excise and Service Tax Appellate Tribunal Mumbai
The Finance Act 1994 Service Tax 25.6 1.8 23.8 2006-07 to 2011-12 Central Excise and Service Tax Appellate Tribunal Bangalore
Service Tax 4.9 0.2 4.7 2012-13 Central Excise and Service Tax Appellate Tribunal Bangalore
Service Tax 3.4 1.5 1.9 2013-14 to 2015-16 Central Excise and Service Tax Appellate Tribunal Bangalore
Service Tax 1.5 0.1 1.4 April 2016 to March 2017 Commissioner of Central Excise (Appeals) Bangalore
Service Tax 51.6 1.9 49.7 December 2012 to March 2016 Customs Excise and Service Tax Appellate Tribunal Bangalore
Goods and Services Tax Act2017 Goods and Services Tax 51.7 2.1 49.6 2017-18 Joint Commissioner of State Tax (Appeals) Thane
Goods and Services Tax 211.0 9.2 201.8 2018-19 Joint Commissioner of State Tax (Appeals) Thane
Bruhat Bangalore Mahanagara Palike (BBMP) Improvement charges 70.8 - 70.8 2014 The High Court of Karnataka

* The Department has adjusted Rs 6.2 million against refund of other assessment yearsand this has been included under "amount paid under protest".

** The Company has paid Rs 40 million under protest and the department has adjusted Rs187.3 million against refund of other assessment years. The amount paid under protest hasbeen restricted to the extent of gross demand.

*** The Company has paid Rs 24 million under protest and the department has adjusted Rs117.4 million against refund of other assessment years.

viii. According to the information and explanations given to us and the records of theCompany examined by us there are no transactions which are not recorded in the books ofaccount that has been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961.

ix. (a) As the Company did not have any loans or other borrowings from any lenderduring the year the reporting under clause 3(ix)(a) of the Order is not applicable to theCompany.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared Wilful Defaulter by anybank or financial institution or government or any government authority.

(c) According to the records of the Company examined by us and the information andexplanations given to us the Company has not obtained any term loans.

(d) 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 Companythe Company has not raised funds on short term basis.

(e) According to the information and explanations given to us and procedures performedby us we report that the Company did not have any subsidiaries joint ventures orassociate companies during the year. Accordingly the reporting under clause 3(ix)(e) ofthe Order is not applicable to the Company.

x. (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly the reportingunder clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or private placement of sharesor fully or partially or optionally convertible debentures during the year. Accordinglythe reporting under clause 3(x)(b) of the Order is not applicable to the Company.

xi. (a) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company noticed or reported duringthe year nor have we been informed of any such case by the Management.

(b) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us a report under Section 143(12)of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 was not required to be filed with the Central Government. Accordingly thereporting under clause 3(xi)(b) of the Order is not applicable to the Company.

(c) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us the Company has receivedwhistle-blower complaints during the year which have been considered by us for anybearing on our audit and reporting.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the reporting under clause 3(xii) of the Order is not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard 24 "Related Party Disclosures" specified under Section 133of the Act.

xiv. (a) In our opinion and according to the information and explanation given to usthe Company has an internal audit system commensurate with the size and nature of itsbusiness.

(b) The reports of the Internal Auditor for the period under audit have been consideredby us.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the reporting on compliance with the provisionsof Section 192 of the Act under clause 3(xv) of the Order is not applicable to theCompany.

xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the reporting under clause 3(xvi)(a) of theOrder is not applicable to the Company.

(b) The Company has not conducted non-banking financial/housing finance activitiesduring the year. Accordingly the reporting under clause 3(xvi)(b) of the Order is notapplicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the reporting under clause 3(xvi)(c) ofthe Order is not applicable to the Company.

(d) According to the information and explanations given to us and procedures performedby us we report that the Company did not have any subsidiaries joint ventures orassociate companies during the year. Accordingly the reporting under clause 3(xvi)(d) ofthe Order is not applicable to the Company.

xvii. The Company has not incurred any cash losses in the financial year or in theimmediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year andaccordingly the reporting under clause (xviii) is not applicable.

xix. According to the information and explanations given to us and on the basis of thefinancial ratios (Also refer Note 40 to the financial statements) ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the financial statements our knowledge of the Board of Directorsand management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that Company is not capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the Company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the Company as and when they fall due.

xx. As at balance sheet date the Company does not have any amount remaining unspentunder Section 135(5) of the Act. Accordingly reporting under clause 3(xx) of the Order isnot applicable.

xxi. According to the information and explanations given to us and procedures performedby us we report that the Company did not have any subsidiaries joint ventures orassociate companies during the year. Accordingly the reporting under clause 3(xxi) of theOrder is not applicable to the Company.

For Price Waterhouse & Co Chartered Accountants LLP Firm Registration Number: 304026E/ E-300009
Prasanna Padar Mahabala Partner
Place: Bengaluru Membership Number: 206477
Date: May 26 2022 UDIN: 22206477AJQRMV6856

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