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Birla Tyres Ltd.

BSE: 542932 Sector: Auto
NSE: BIRLATYRE ISIN Code: INE0AEJ01013
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VOLUME 42344
52-Week high 29.90
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OPEN 4.48
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VOLUME 42344
52-Week high 29.90
52-Week low 3.80
P/E
Mkt Cap.(Rs cr) 61
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Birla Tyres Ltd. (BIRLATYRE) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

BIRLA TYRES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of BIRLA TYRES LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2022 and theStatement of Profit and Loss (including Other Comprehensive Income) the Statement of CashFlows 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 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 31st March 2022 and its loss totalcomprehensive loss 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 with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibility for the Audit of theFinancial 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 ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Material uncertainty related to Going Concern We draw attention to Note 39 to thefinancial statements regarding preparation of the financial statements of the Company on agoing concern. The Company had incurred losses during the previous Year and has continuedto incur losses during the current year. The networth of the Company has been fullyeroded. The Company has incurred net loss of RS 65567.04 Lakhs during the year ended 31stMarch 2022. The current liabilities as at 31st March 2022 exceeds its totalassets by RS 120301.96 Lakhs. These conditions along with the outcome of other mattersas set forth in Note 39 indicate existence of material uncertainty which castsignificant doubts about the Company's ability to continue as a going concern andconsequently the ability of the Company to realise its assets and discharge itsliabilities in the normal course of business. The ability of the Company to continue as agoing concern is solely dependent upon the proposal for infusion of funds by the investorwhich in turn is subject to the approval and successful implementation of the Scheme whichis wholly beyond the control of the Company. The proposed Scheme has also been submittedto the lenders for their evaluation (Refer Note 40) to the financial statements. Themanagement has prepared the financial statements on a going concern basis as they arereasonably certain that the Scheme will be approved in the present form and the Companywill be able to successfully implement the approved scheme and no adjustments have beenmade to the carrying value of assets and liabilities and their presentation /classification in the Balance Sheet.

Our opinion is not modified in respect of this matter. Emphasis of Matters

We draw attention to Note 29(b) of the financial statements which describe theuncertainty related to the penalty of RS 17833 Lakhs imposed by the CompetitionCommission of India for alleged cartelization by certain Tyre manufacturing companiesincluding the Company. The Company has filed an appeal against the CCI Order before theNational Company Law Appellate Tribunal ("NCLAT"). Based on a legal opinionobtained by the Company the Company believes that it has a strong case in this matter.Considering the uncertainty relating to the outcome of this matter no provision has beenconsidered in the books of account.

Our opinion is not modified in respect of this matter.

Key Audit Matters

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. Inaddition to the matter described in the Material Uncertainty Related to Going Concernsection of our report we have determined the matters described below to be the key auditmatters to be communicated in our report.

Key Audit Matter Auditor's Response
1 Property plant and equipment - Impairment assessment - Note 2.4 and Note 3 of the Financial Statements. Principal audit procedures performed
The Company has been making continuous losses in previous Year and in the current year due to various internal and external factors. As at 31st March 2022 the carrying amount of the Property Plant & Equipment amounted to RS 78696.48 Lakhs [this includes RS 31682.46 Lakhs (net of impairment charge of RS 43551.70 Lakhs recorded during the current financial year) for Capital work in progress which is yet to commence commercial operations]. Our audit procedures included validating the appropriateness and reasonableness of the fair valuation approach and assumptions used for determining the fair value of assets by external experts through performing the following:
The management on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable assesses if there are any indicators that the Property Plant & Equipment is impaired and if indicators exist performs an impairment test at the Cash Generating Unit (CGU) level by making an estimate of recoverable amount being the higher of fair value less costs to sell and value in use. • Obtained an understanding of controls instituted by the management to assess impairment indicators and perform impairment assessment.
Considering the continuous losses incurred by the Company the probability of impairment could be dependent on assumptions and methodology used for the fair valuation of the Property Plant and Equipment by the management appointed external experts. • Evaluated design and operating effectiveness of the management controls over the impairment assessment process and review of fair valuation report obtained from the external experts.
Impairment assessment of the Property Plant and Equipment is considered as a Key Audit Matter since there is significant management judgements and estimates involved in the impairment assessment such as: • Evaluated the reasonableness of the fair valuation methodology used and the assumptions made for determining the fair value (such as useful life of the assets salvage value inflation and index rate) of the assets at CGU level using our internal fair valuation specialists.
• The determination of recoverable amount being the higher of value-in-use and fair value less costs to dispose. • Tested the mathematical accuracy and performed sensitivity analysis in order to assess the potential impact on the recoverable amount.
• The methodology used in determination of the fair value of assets by management appointed external experts is dependent on interpretation of the valuation standards and the assumptions used such as inflation index rates useful lives salvage value. • Reconciled the carrying amount of the category wise assets as per the valuation report provided by the management and as per the books of account.
• Evaluated the adequacy of disclosures in the financial statements with respect to the impairment of Property Plant and equipment.
2 Assessment of going concern basis (as described in note 39 of the financial statements) Principal audit procedures performed
As at 31st March 2022 the networth of the Company has been fully eroded. The Company has incurred net loss of RS 65567.04 Lakhs during the year ended 31st March 2022 and current liabilities as at 31st March 2022 exceeds its total assets by RS 120301.96 Lakhs. The Company has also defaulted in the payment of its borrowings and has overdue employee benefit liabilities and statutory liabilities as at 31st March 2022. The Company has received loan regularisation letter recall letters and demand notice from the lenders relating to the outstanding loans. Further the Company has also received notices under section 13(2) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 ("SARFAESI Act") from some of the lenders. In addition the Company has long outstanding over dues in respect to trade payables (including employee benefit liabilities) and statutory dues amounting to RS 32139.90 Lakhs as at 31st March 2022. Consequent to the non-availability of funds to meet the working capital requirements the operations of the Company are currently halted. These factors raises material uncertainty related to Going Concern assumption used by the Company in the preparation of the financial statements. We performed the following principal audit procedures in relation to management's assessment of going concern:
a) Evaluated design and implementation of and tested the control relating to management's assessment of appropriateness of going concern assumption.
b) Evaluated the appropriateness of identification of material uncertainties by the Management.
c) Analysed and discussed cash flow EBITDA and other relevant forecasts with management.
d) Obtained and read the minutes of the meeting held between the lenders and the Company to understand the lenders view on the status of loan restructuring.
e) Obtained understanding of the progress of the Scheme of Arrangement with respect to the restructuring of the dues to financial and operational creditors and demerger of Passenger Car Radial business of the Company.
Assessment of existence of material uncertainty related to Going Concern is considered as a Key Audit Matter as it involves significant management judgements and estimates for preparation of the cash flow forecast for next twelve months and management's mitigation plan which includes infusion of funds by the investor which in turn is subject to the approval and successful implementation of the Scheme which is wholly beyond the control of the Company to address material uncertainty related to going concern. f) Obtained the understanding with respect to the proposed fund infusion by the investor in the Company and fulfilment of the pre-conditions for the fund infusion.
g) Performed the sensitivities and stress testing on the future cash flows that management has considered for the going concern assessment.
h) Obtained the loan regularisation letter recall letters demand notices and notices under section 13(2) of SARFAESI Act and evaluated the impact on the going concern assessment.
i) Evaluated the adequacy of disclosures in the financial statements with respect to the going concern assumptions

Information Other than the Financial Statements and Auditor's Report Thereon

• The Company's Board of Directors is responsible for the other information. Theother information comprises the information included Report of the Directors and thefollowing Annexures thereto (namely Management Discussion and Analysis Report onCorporate Governance Annual Report on Corporate Social Responsibility Activities FormAOC - 1 Conservation of energy Technology Absorption and Exchange Earnings and Outgo)but does not include the financial statements and our auditor's report thereon.

• Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

• In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

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

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

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 the Company's financialreporting process.

Auditor's Responsibility 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 control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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.

• 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 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 Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) The matter described in the Material uncertainty related to Going Concern sectionabove in our opinion may have an adverse effect on the functioning of the Company.

f) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in termsof Section 164(2) of the Act.

g) 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 unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

h) 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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

i) 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

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of it's knowledge and beliefas disclosed in the notes to the accounts no funds (which are material eitherindividually or in the aggregate) have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor 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's knowledge and belief asdisclosed in the notes to accounts no funds (which are material either individually or inthe aggregate) have been received by the Company from any person(s) or entity(ies)including foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures that has been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

v. The Company has not declared or paid any dividend during the year and has notproposed final dividend for 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"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

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

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

We have audited the internal financial controls over financial reporting of BIRLA TYRESLIMITED ("the Company") as of 31st March 2022 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

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

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance 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 Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

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

In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that

(i) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant & Equipment andcapital work in progress.

(B) The Company has maintained proper records showing full particulars of intangibleassets.

(b) Some of the Property Plant and Equipment and capital work-in-progress werephysically verified during the year by the Management in accordance with a programme ofverification which in our opinion provides for physical verification of all the PropertyPlant and Equipment and capital work-in-progress at reasonable intervals having regard tothe size of the Company and the nature of its activities. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) Based on the examination of the registered sale deed transfer deed conveyancedeed mutation of title papers and NCLT order approving the scheme of arrangement providedto us we report that the title deeds of all the immovable properties of land andbuildings (other than those that have been taken on lease and the lease agreements areduly executed in favour of the Company) disclosed in the financial statements included in(property plant & equipment and capital work in progress) are held in the name ofthe Company as at the balance sheet date. Immovable properties of land and buildings whosetitle deeds have been pledged as security for loans guarantees etc. are held in thename of the Company based on the confirmations directly received by us from lenders.

With respect to the NCLT order approving the scheme of arrangement the Company is inthe process of getting the title deeds transferred in its name.

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

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

(ii) (a) The inventories were physically verified during the year by the Management atreasonable intervals. In our opinion and according to the information and explanationsgiven to us the coverage and procedure of such verification by the Management isappropriate having regard to the size of the Company and the nature of its operations. Nodiscrepancies of 10% or more in the aggregate for each class of inventories were noticedon such physical verification of inventories when compared with books of account.

(b) According to the information and explanations given to us the Company has beensanctioned working capital limits in excess of Rs. 5 crores in aggregate at points oftime during the year from banks or financial institutions on the basis of security ofcurrent assets. In our opinion and according to the information and explanations given tous the quarterly returns and statements comprising (stock statements book debtstatements and statements on ageing analysis of the debtors) filed by the Company withsuch banks or financial institutions are in agreement with the unaudited books of accountof the Company of the respective quarters except for the following:

For the quarter Sanction amount to which the discrepancy relates* (Amount in Rs Lakhs) Nature of the current asset Nature of discrepancy Amount as per quarterly return & statements (Amount in Rs Lakhs) As per unaudited books of accounts (Amount in Rs Lakhs) Difference (Amount in Rs Lakhs) Remarks including subsequent rectification if any
June 2021 22960 Trade Receivable The Reported amount reconciles with gross book balance without adjustment of provision for trade receivables and advance from customers 29826 10613 19213 There is no revised statement filed till date
June 2021 22960 Inventory - Raw Material The Reported amount reconciles with gross book balance without adjustment of provision 900 861 039 There is no revised statement filed till date
June 2021 22960 Inventory - Finished Goods The Reported amount reconciles with gross book balance without adjustment of provision 2130 1415 715 There is no revised statement filed till date
June 2021 22960 Inventory - Stores & Spares Inventory capitalized as part of CWIP project considered in the quarterly returns 2253 953 1300 There is no revised statement filed till date
September 2021 22960 Trade Receivable The Reported amount reconciles with gross book balance without adjustment of provision for trade receivables and advance from customers 29637 10575 19062 There is no revised statement filed till date
September 2021 22960 Inventory - Raw Material The Reported amount reconciles with gross book balance without adjustment of provision 800 761 039 There is no revised statement filed till date
September 2021 22960 Inventory - Finished Goods The Reported amount reconciles with gross book balance without adjustment of provision 1997 1265 732 There is no revised statement filed till date
September 2021 22960 Inventory - Stores & Spares Inventory capitalized as part of CWIP project considered in the quarterly returns 2263 963 1300 There is no revised statement filed till date
December 2021 22960 Trade Receivable The Reported amount reconciles with gross book balance without adjustment of provision for trade receivables. 29358 10550 18808 There is no revised statement filed till date
December 2021 22960 Inventory - Raw Material The Reported amount reconciles with gross book balance without adjustment of provision 800 761 039 There is no revised statement filed till date
December 2021 22960 Inventory - Finished Goods The Reported amount reconciles with gross book balance without adjustment of provision 1824 1036 788 There is no revised statement filed till date
December 2021 22960 Inventory - Stores & Spares Inventory capitalized as part of CWIP project considered in the quarterly returns 2262 962 1300 There is no revised statement filed till date

The Company is yet to submit the return/ statement for the quarter ended 31-March-2022with the banks or financial institutions.

* The sanction limit is calculated based on the current asset position submitted by theCompany to the banks for the month of 31 August 2021 and confirmed by the banks on 29September 2021

(iii) The Company has not made any investments in provided any guarantee or securityand granted any loans or advances in the nature of loans secured or unsecured tocompanies firms Limited Liability Partnerships or any other parties during the year andhence reporting under clause (iii) of the Order is not applicable

(iv) The Company has not granted any loans made investments or provided guarantees orsecurities and hence reporting under clause (iv) of the Order is not applicable

(v) In our opinion and according to the information and explanations given to us theCompany has not complied with the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2014 as amended with regard to the deposits accepted in the nature of advance fromcustomers lying unadjusted over one year

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

(vii) In respect of statutory dues:

(a) Undisputed statutory dues including Provident Fund (including interest thereon)Income-tax (including interest thereon) Goods and Service tax (including interestthereon) Professional tax and other material statutory dues applicable to the Companyhave not been regularly deposited by it with the appropriate authorities and there havebeen serious delays in large number of cases

Undisputed amounts payable in respect of Provident Fund (including interest thereon)Income-tax (including interest thereon) Goods and Service tax (including interestthereon) Professional tax and other material statutory dues in arrears as at 31stMarch 2022 for a period of more than six months from the date they became payable thedetails of which are given below:

Name of the Statute Nature of Dues Amount (Rs In Lakhs) Period to which the amount relates Due date Date of Payment
The Central State and Integrated Goods and Service Tax Act 2017 Interest on unpaid amount of goods and service tax 0.97 2017-18 Not Applicable Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017 Interest on unpaid amount of goods and service tax 722.27 2018-19 Not Applicable Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017 Unpaid amount of goods and service tax 909.36 2019-20 Not Applicable Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017 Interest on unpaid amount of goods and service tax 1075.10 2019-20 Not Applicable Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017 Unpaid amount of goods and service tax 882.88 2020-21 Not Applicable Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017 Interest on unpaid amount of goods and service tax 249.15 2020-21 Not Applicable Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017 Unpaid amount of goods and service tax 10.19 2021-22 Not Applicable Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017 Interest on unpaid amount of goods and service tax 1.28 2021-22 Not Applicable Not paid till date
Income Tax Act 1961 Interest on unpaid Tax Deducted at Source 30.82 2019-20 Not Applicable Not paid till date
Income Tax Act 1961 Tax Deducted at Source 430.17 2020-21 Not Applicable Not paid till date
Income Tax Act 1961 Interest on unpaid Tax Deducted at Source 89.43 2020-21 Not Applicable Not paid till date
Income Tax Act 1961 Tax Deducted at Source 47.20 2021-22 Not Applicable Not paid till date
Income Tax Act 1961 Interest on unpaid Tax Deducted at Source 5.43 2021-22 Not Applicable Not paid till date
Employees Provident Fund & Miscellaneous Provisions Act 1952 Provident Fund 773.55 2020-21 Not Applicable Not paid till date
Employees Provident Fund & Miscellaneous Provisions Act 1952 Interest on unpaid Provident Fund 132.22 2020-21 Not Applicable Not paid till date
Employees Provident Fund & Miscellaneous Provisions Act 1952 Provident Fund 95.10 2021-22 Not Applicable Not paid till date
Employees Provident Fund & Miscellaneous Provisions Act 1952 Interest on unpaid Provident Fund 8.23 2021-22 Not Applicable Not paid till date
Professional Tax Act 1987 Professional Tax 7.49 2020-21 Not Applicable Not paid till date
Professional Tax Act 1987 Professional Tax 1.34 2021-22 Not Applicable Not paid till date
Entry Tax Act Entry Tax 40.12 2014-18 Not Applicable Not paid till date

(b) Details of Statutory dues of Income-tax Sales Tax Service Tax Customs DutyExcise Duty and Value Added Tax which have not been deposited as on 31stMarch 2022 on account of disputes are given below:

Name of the Statute Nature of Dues Net Amount (Rs. In Lakhs) Amount paid under protest (Rs. In lakhs) Period to which the Amount Relates Forum where dispute is pending
Central Excise Act 1944 Central Excise 9703.20 917.36 2010-112013-15 200002 Apr.'15 to Sept.' 15 Jan.' 07 to Feb.' 09 Mar. 2009 to Mar. 2010 Feb. 2003 to Dec. 2006 Apr. 2002 -Jan. 2002 2004-05 Dec. 1999 - Jan .1999 Sept. - Dec. 1997 Aug. 1998 Sept. 1998 Oct.' 15 to Mar.' 16 April-11 to Mar. 13 CESTAT Kolkata
Central Excise Act 1944 Central Excise 1262.88 - 1997- 98 1998- 99 1999- 00 2000- 01 2001-02 2012-13 to 2014-15 2007-08 Commissioner Bhubaneswar
Central Excise Act 1944 Central Excise 267.52 79.25 Jul'95 to Mar'96 Oct 09 to Mar'10 2010-11 Assistant Commissioner Balasore [Matter remanded by CCE(A)]
Central Excise Act 1944 Central Excise 276.44 - Nov'99 to Dec'99 Dec'95 Sep'99 to Oct'99 Mar'94 to Jul'94 Dec'93 to Feb'94 Jul'93 to Nov'93 Jan'93 to Jun'93 Oct-96 Nov & Dec'96 Jan & Feb'97 Apr & May'98 Jul'98 to Oct'98 Nov'98 to Feb'99 Mar'99 to Aug'99 Sep'95 to Oct'95 Feb-99 Mar-97 Sep-95 May-98 Apr-98 Apr 2003 to March 2004 and April 2006 to Dec 2006 1995-96 1996-97 Assistant Commissioner Balasore.
Central Excise Act 1944 Central Excise 872.85 33.48 2005-06 Apr'16 to Sep'16 Oct'16 to Mar'17 Apr'17 to Jun'17 Commissioner (Appeals) Bhubaneswar
Central Excise Act 1944 Central Excise - - 2014-15 to 2017-18 Deputy Commissioner of CGST and Central Excise
The Central Goods and Service Tax Act 2017 Central Excise & Service Tax transferred to GST 1282.94 - 2016-17 to June'17 Additional Commissioner Bhubaneswar.
The Central Goods and Service Tax Act 2017 The Central Goods and Service Tax Act 2017 3061.06 - July 2017 to March 2019 2017-18 Additional Commissioner Bhubaneswar.
Customs Act 1962 Customs 143.74 143.74 2014-15 CESTAT Mumbai
Customs Act 1962 Customs 2.37 - Jul-08 to Aug-09 Assistant Commissioner of Customs
Central Sales Tax Act 1956 Sales Tax 1317.20 743.79 1999-00 2002-03 2004-05 2007- 08 2008- 09 2009- 10 2010- 11 Sales Tax Tribunal
Central Sales Tax Act 1956 Sales Tax 205.11 19.91 1999-00 2009-10 HIGH COURT
Central Sales Tax Act 1956 Sales Tax 12.52 - 2002-03 Sales Tax Tribunal(By dept)
Central Sales Tax Act 1956 Sales Tax 183.08 - 2003-04 Supreme Court
Odisha Entry Tax Act 1999 Entry Tax 1984.05 595.53 2000-01 2001-02 2002-03 2004- 05 2005- 06 2006- 07 2008-09 Sales Tax Tribunal
Odisha Entry Tax Act 1999 Entry Tax 1102.56 132.06 2003-04 2007-08 2009-10 HIGH COURT
Odisha Entry Tax Act 1999 Entry Tax 239.03 47.81 2005-06 Supreme Court
Odisha Entry Tax Act 1999 Entry Tax 2768.10 252.45 2007-08 2009-10 Oct-15 to Mar-16 Apr-16 to Jun-17 Addl. ommissioner(Appeal)
Odisha Entry Tax Act 1999 Entry Tax 133.13 704.05 2012-13 (July'12) Apr'09 to May'17 2004-05 Deputy Commisioner
Central Sales Tax Act 1956 Sales Tax 2.50 0.97 2012-13 Deputy Commissioner
Central Sales Tax Act 1956 Sales Tax 7.33 - 2008-09 2010-11 Revisional Board
Entry Tax Entry Tax 92.80 - 2013-14 High Court
Entry Tax Entry Tax 768.24 - 2014- 15 2015- 16 2016- 17 Tribunal
Odisha Value Added Tax Act 2004 VAT 566.95 275.32 2005-06 2008-09 2009-10 Oct-15 to Mar-16 Sales Tax Tribunal
Odisha Value Added Tax Act 2004 VAT 41.72 7.74 Apr-16 to Jun-17 Tribunal
Odisha Value Added Tax Act 2004 VAT 91.76 - 2012-14 High Court
Bihar VAT Act 2005 VAT 65.41 - 2013-14 Commercial Tax Officer
Jharkhand Vat Act 2005 VAT 72.86 13.65 2010-11 & 2012-13 Commissioner
Jharkhand Vat Act 2005 VAT 13.70 - 2010-11 Tribunal
WB VAT Act 2003 VAT 868.78 - 2007-08 till 2010-11 Revisional Board
UP VAT VAT 45.84 18.99 2010-11 Addition Commissioner (Appeals)
Uttarakhand VAT Act 2005 VAT - 17.00 2013-14 High Court
Kerela VAT VAT 214.35 - 2011-12 Deputy Commissioner
Gujarat VAT VAT 195.12 25.67 2015-16 Before Joint Commissioner Of Commercial Tax
UP VAT VAT 1562.42 - 2016- 17 2017- 18 Local Jurisdictional officer
State VAT VAT 20.86 - 2016-17 Deputy Commissioner (Appeals)
J&K VAT VAT 12.46 - 2017-18 Local Jurisdictional officer
Central Sales Tax Act 1956 Sales Tax 1.29 0.32 2005- 06 2006- 07 Addition Commissioner (Appeals)
Up Trade Tax Act1948 Trade tax 8.74 2.18 2006-07 Addition Commissioner (Appeals)
Central Sales Tax Act 1956 Sales Tax 3.40 0.38 2016-17 Deputy Commissioner of Tax (Appeal)
Entry Tax Entry Tax 40.39 - 2017-18 Appeal filed at Tax Tribunal
Central Sales Tax Act 1956 Sales Tax 452.78 - 2016- 17 2017- 18 Local Jurisdictional officer
Central Sales Tax Act 1956 Sales Tax 11.62 - 2016-17 Deputy Commissioner of Tax (Appeal)
Central Sales Tax Act 1956 Sales Tax 13.29 - 2016-17 Deputy Commissioner of Tax (Appeal)
Central Sales Tax Act 1956 Sales Tax 2.19 - 2017-18 Local Jurisdictional officer

(viii) There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessments under the Income Tax Act 1961(43 of 1961) during the year

(ix) (a) In our opinion the Company has not defaulted in the repayment of loans orother borrowings or in the payment of interest thereon to financial institutions andbanks during the year except as under

Nature of Borrowing including debt securities Name of the Lender Amount not paid on due date (R. In lakhs) Whether Principal or Interest No of days delay of unpaid
Dues to Banks:
Term Loan Axis Bank 10385.27 Interest on Term Loan October'20 to March'22
Term Loan Karur Vyasya Bank 597.64 Interest on Term Loan February'20 October'20 to March'22
February'20
Term Loan Lakshmi Vilas Bank 869.91 Interest on Term Loan September'20 to March'22
Cash Credit State Bank of India 3323.64 Interest on CC September'20 to March'22
Cash Credit HDFC Bank 376.11 Interest on CC March'21 to March'22
Cash Credit Axis Bank - Cash Credit Facility 112.19 Interest on CC February'21-March'22
Cash Credit ICICI Bank - Cash Credit Facility 161.54 Interest on CC January'21 to March'22
Cash Credit Lakshmi Vilas Bank - Cash Credit Facility 944.32 Interest on CC January'21 to March'22
Cash Credit Punjab National Bank - Cash Credit Facility 488.11 Interest on CC February'20 September'20 to March'22
Working Capital Loan Yes Bank 27.93 Interest on Working Capital Loan January'21 to March'22
Term Loan Axis Bank 42995.87 Principal Oct'20 Jan'21 Apr'21 Jul'21 Oct'21 Jan'22 & Mar'22
Term Loan Karur Vyasya Bank 3373.78 Principal Oct'20 Jan'21 Apr'21 Jul'21 Oct'21 Jan'22 & Mar'22
Term Loan Lakshmi Vilas Bank 3186.77 Principal Oct'20 Jan'21 Apr'21 Jul'21 Oct'21 Jan'22 & Mar'22
Cash Credit State Bank of India 9490.11 Overdraft March' 22
Cash Credit Axis Bank 836.65 Overdraft March' 22
Cash Credit HDFC Bank 1928.21 Overdraft March' 22
Cash Credit ICICI Bank 610.00 Overdraft March' 22
Cash Credit Lakshmi Vilas Bank 2118.84 Overdraft March' 22
Working Capital Loan Yes Bank 334.56 Working Capital Loan in excess of Drawing Power March' 22
Cash Credit Punjab National Bank 2032.27 Overdraft March' 22
Letter of Credit ICICI Bank 278.87 Letter of Credit March' 22
Dues to Financial Institutions:
Term Loan West Bengal Infrastructure Development Financial Corporation Limited 1272.02 Interest on Term Loan September' 20 to March' 22
Term Loan West Bengal Infrastructure Development Financial Corporation Limited 1458.77 Principal Sept.' 20 Dec.' 20 Mar.' 21 Jun'21 Sep'21 Dec'21 & Mar'22
Term Loan West Bengal Infrastructure Development Financial Corporation Limited 3186.46 Principal Oct'20 Jan'21 Apr'21 Jul'21 Oct'21 Jan'22 & Mar'22
Dues to Others
Term Loan Asset Reconstruction Company (India) Limited 3990.99 Interest on Term Loan February'20 September'20 to March'22
Working Capital Loan Asset Reconstruction Company (India) Limited 401.23 Interest on Working Capital Loan February'20 September'20 to March'22
Cash Credit Asset Reconstruction Company (India) Limited - Cash Credit Facility 273.34 Interest on CC January'21 to March'22
Term Loan Asset Reconstruction Company (India) Limited 12729.74 Principal Oct'20 Jan'21 Apr'21 Jul'21 Oct'21 Jan'22 & Mar'22
Cash Credit Asset Reconstruction Company (India) Limited 704.72 Overdraft March' 22
Working Capital Loan Asset Reconstruction Company (India) Limited 1077.60 Working Capital Loan in excess of Drawing Power March' 22
Total 109567.45

* The amount of default has not been repaid subsequently till the date of this auditreport.

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

(c) The Company has not taken any term loan during the year and there are no unutilisedterm loans at the beginning of the year and hence reporting under clause (ix)(c) of theOrder is not applicable

(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis aggregating RS 23655.11 Lakhs have been used for long-term purposesby the Company

(e) The Company did not have any subsidiary or associate or joint venture during theyear and hence reporting under clause (ix)(e) of the Order is not applicable

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

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

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company

(xi) (a) To the best of our knowledge no fraud by the Company or no material fraud onthe Company has been noticed or reported during the year

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

(c) As represented by the Management there was no whistle blower complaints receivedby the Company during the year (and upto the date of this audit report)

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2020 Order is not applicable

(xiii) In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsetc as required by the applicable accounting standards.

(xiv) (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of the entity.

(b) We have considered the internal audit reports issued to the Company during theyear and covering the period upto March 2022 and the draft of the internal audit reportswhere issued after the balance sheet date covering the period 1st January 2022to 31st March 2022 for the period under audit.

(xv) In our opinion during the year the Company has not entered into any non-cashtransactions with its directors or persons connected with them and hence provisions ofsection 192 of the Companies Act 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 Hence reporting under clause (xvi)(a) (b) and (c) of the orderis not applicable.

(xvii) The Company has incurred cash losses amounting to RS 39062.72 Lakhsduring the financial year covered by our audit and RS 43185.55 Lakhs in theimmediately preceding financial year.

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

(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities (Asset Liability Maturity (ALM) pattern) other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionswe are of the opinion that material uncertainty exists as on the date of the audit reportthat Company may not be 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.

Refer 'Material uncertainty related to going concern' and 'Key Audit Matter on goingconcern' provided in the main audit report.

(xx) The Company was not having net worth of rupees five hundred crore or more orturnover of rupees one thousand crore or more or a net profit of rupees five crore or moreduring the immediately preceding financial year and hence provisions of Section 135 ofthe Act are not applicable to the Company during the year Accordingly reporting underclause 3(xx) of the Order is not applicable for the year.

For Deloitte Haskins & Sells
Chartered Accountants
(Firm's Registration No.: 302009E)
Abhijit Bandyopadhyay (Partner)
Place: Kolkata (Membership No.: 054785)
Date: April 11 2022 UDIN:22054785AGUAMD8283

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