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Bombay Dyeing & Manufacturing Company Ltd.

BSE: 500020 Sector: Industrials
NSE: BOMDYEING ISIN Code: INE032A01023
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VOLUME 102938
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OPEN 85.65
CLOSE 86.30
VOLUME 102938
52-Week high 140.60
52-Week low 79.20
P/E
Mkt Cap.(Rs cr) 1,753
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bombay Dyeing & Manufacturing Company Ltd. (BOMDYEING) - Auditors Report

Company auditors report

To the Members of The Bombay Dyeing and Manufacturing Company Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of TheBombay Dyeing and Manufacturing Company Limited ("the Company") which comprisethe Balance Sheet as at March 31 2022 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity the Statement of Cash Flows forthe year then ended and notes to the Standalone Financial Statements including a summaryof the significant accounting policies and other explanatory information (hereinafterreferred to as ‘the standalone financial statements').

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2022 its loss and total comprehensive income the changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the"Auditor's Responsibilities for the Audit of the Standalone FinancialStatements" section of our report. We are independent of the Company in accordancewith the "Code of Ethics" issued by The Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the standalone financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsof the current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole for the year ended March 31 2022 and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report:

Key Audit Matters How was the matter addressed in our audit
Deferred Tax Assets ("DTA") on Unabsorbed Depreciation and Brought Forward Business Losses Our audit procedures included the following:
The Company has recognised DTA for the carry forward of unused tax losses in the form of unabsorbed depreciation and carried forward business losses to the extent it is probable that the future taxable profits will be available against which such unused tax losses can be utilised (before the expiry period thereof for its utilisation). • Considered the Company's accounting policies with respect to recognition of tax credits in accordance with Ind AS 12 on "Income Taxes";
The recognition is based on the projected profitability. The Company has recognised DTA based on the reduced rate of tax as per the provisions Section 115BAA of the Income-tax Act 1961 since such deferred tax assets/ liabilities are expected to be realised or settled at reduced rate. • Evaluated the Company's tax positions by comparing it with prior years and past precedents;
Such recognition of DTA is a key audit matter as the recoverability of tax losses within the time frame allowed involves significant estimate of the financial projections availability of sufficient taxable income in the future and significant judgements in the interpretation of tax regulations and tax positions adopted by the Company. [Refer Note "x" to Significant Accounting Policies and Note 10 to standalone financial statements] • Obtained the projected profitability statements along with expected tax rate that would apply as to the recoverability of tax losses;
• Evaluated the estimates of profitability made by the management on the basis of which it is considered probable that the Company will have sufficient taxable income against which the unused tax losses will be utilised and also within the expected timing of utilisation;
• Discussed with the management the future business plans and financial projections and underlying assumptions used based on which the estimate of profitability is made;
• Assessed the disclosures in accordance with the requirements of Ind AS 12.
Key Audit Matters How was the matter addressed in our audit
Uncertain tax positions Direct and Indirect Taxes
The Company has uncertain tax matters pending litigations under direct tax and various indirect tax laws. The litigation involves significant judgement to determine the possible outcome based on which accounting treatment is given to the disputed amount. These matters are considered to be key audit matter given the magnitude of potential outflow of economic resources and uncertainty of potential outcome. Our audit procedures include the following:
[Refer Notes 11 and 41 to the standalone financial statements] • Obtained details of uncertain tax position and gained understanding thereof;
• Obtained details of completed tax assessments and also demands raised;
• Read and analysed relevant communication with the authorities;
• Considered the legal advice obtained by the management on possible outcome of the litigation;
• Discussed with senior management and evaluated management's assumptions regarding provisions made;
• Assessed the disclosures in accordance with the requirements of Ind AS 37 on "Provisions Contingent Liabilities and Contingent Assets".

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Management Discussion and AnalysisCorporate Governance and Shareholder's Information and Business ResponsibilityReport but does not include the standalone financial statements and our auditor's reportthereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation and presentation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance (including other comprehensive income) changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Ind AS specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the management either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

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

c. The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity the Statement of Cash Flows andnotes to the standalone financial statements dealt with by this Report are in agreementwith the books of account;

d. In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended;

e. On the basis of written representations received from the directorsas on March 31 2022 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of Section164(2) of the Act;

f. With respect to the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure A"; Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting

g. With respect to the matters to be included in the Auditor's Reportin accordance with requirement of Section 197(16) of the Act as amended

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid during the current year by the Company toits directors is in accordance with the provisions of Section 197 of the Act.

h. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Notes 41 and 42 to thestandalone financial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as requiredunder the applicable law or accounting standards;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended March 31 2022.

iv. (a) The Management has represented that to the

best of its knowledge and belief other than as disclosed in the notesto the accounts no funds have been advanced or loaned or invested (either from borrowedfunds or share premium or any other sources or kind of funds) by the Company to or in anyother person(s) or entity(ies) including foreign entities ("Intermediaries")with the understanding whether recorded in writing or otherwise that the Intermediaryshall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate

Beneficiaries (Refer Note 39(i) to the Standalone financialstatements);

(b) The Management has represented that to the best of its knowledgeand belief other than as disclosed in the notes to the accounts no funds have beenreceived by the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries (Refer Note 39(j) to the Standalonefinancial statements);

(c) Based on such audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedin (a) and (b) above contain any material misstatement.

v. Since the Company has not declared or paid any dividend during theyear the question of commenting on whether dividend declared or paid is in accordancewith Section 123 of the Companies Act 2013 does not arise.

2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section143(11) of the Act we enclose in the "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

For BANSI S. MEHTA & CO.
Chartered Accountants
Firm Registration No.100991W
PARESH H. CLERK
Partner
PLACE : Mumbai Membership No. 036148
DATED : May 4 2022 UDIN : 22036148AIJHHW5656

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 (f) under the heading of "Report onOther Legal and Regulatory Requirements" in our Independent Auditor's Report of evendate on the standalone financial statements for the year ended March 31 2022.

Report on the Internal Financial Controls with reference to FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference tostandalone financial statements of The Bombay Dyeing and Manufacturing Company Limited("the Company") as of March 31 2022 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing andmaintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting ("the Guidance Note") issued by theInstitute of Chartered Accountants of India ("ICAI"). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note and the Standards on Auditing issued byICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls with reference to financialstatements. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls with reference to financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating 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 thestandalone financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to financial statements.

Meaning of Internal Financial Controls with reference to FinancialStatements

A company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to financial statements includes those policies andprocedures that:

a. pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

b. provide reasonable assurance that transactions are recorded asnecessary to permit preparation of the financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

c. provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls with reference to the standalone financial statements and such internalfinancial controls with reference to standalone financial statements were operatingeffectively as at March 31 2022 based on the internal controls over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note.

For BANSI S. MEHTA & CO. Chartered Accountants Firm Registration No.100991W
PLACE : Mumbai DATED : May 4 2022 PARESH H. CLERK Partner Membership No. 036148 UDIN : 22036148AIJHHW5656

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 2 under the heading of "Report on OtherLegal and Regulatory Requirements" of our Independent Auditors' Report of even dateto the members of The Bombay Dyeing and Manufacturing Company Limited on the standalonefinancial statements for the year ended March 31 2022.

Report on the Companies (Auditor's Report) Order 2020 issued in termsof Section 143(11) of the Companies Act 2013 ("the Act") of The Bombay Dyeingand Manufacturing Company Limited ("the Company"):

i. a. A. The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipment("PPE") and relevant details of Right-of-use Assets and Investment Property.

B. The Company has maintained proper records showing full particularsof Intangible Assets.

b. The management of the Company verifies PPE Right-of- use Assets andInvestment Property according to a phased programme designed to cover all items over aperiod of three years which in our opinion is at reasonable intervals. Pursuant to theprogramme certain items of PPE have been verified by the management during the year andno material discrepancies have been noticed on such verification.

c. According to the information and explanations given to us and on thebasis of records examined by us we report that the title deeds of immovable properties(other than properties where the Company is the lessee and the lease agreements are dulyexecuted in favour of the lessee) disclosed in the standalone financial statements areheld in the name of the Company except the following immovable property on lease thelease agreement has not been duly executed in favour of the Company :

Description of property Gross carrying value Held in name of Whether promoter director or their relative or employee Period held - indicate range where appropriate Reason for not being held in name of company*
Neville House (Building on Leasehold Land) Rs 1.94 Crore Scal Investments Limited No 2000-01 Refer 39(b) to the standalone financial statements

* The amount represents the expenditure as capitalised.

d. According to the information and explanations given to us and on thebasis of records examined by us the Company has neither revalued any of its PropertyPlant and Equipment (including Right-of-use Assets) nor its Intangible Assets during theyear. Accordingly reporting under clause 3(i)(d) of the Order is not applicable.

e. According to the information and explanations given to us noproceedings have been initiated or are pending against the Company for holding any benamiproperty under the Benami Transactions (Prohibitions) Act 1988 (as amended in 2016) andRules made thereunder. Accordingly reporting under clause 3(i)(e) of the Order is notapplicable.

ii. a. Physical verification of inventories have been conducted by themanagement during the year which in our opinion is at reasonable intervals; and in ouropinion the coverage and procedure of such verification by the management is appropriate.The discrepancies noticed on verification between physical stock and book records were not10% or more in aggregate for each class of inventories.

b. The Company has been sanctioned working capital limits in excess ofRs 5 crore in aggregate from banks on the basis of security of current assets; accordingto the information and explanations given to us and on the basis of records examined byus the quarterly returns and statements comprising stock and creditors statements bookdebt

statements and other stipulated financial information filed by theCompany with such bank are not having material difference with the unaudited books ofaccount of the Company of the respective quarters and those differences are ofexplainable items and in nature. (Refer Note 39 (d) to the standalone financialstatements)

iii. According to the information and explanations given to us and onthe basis of examination of books and records by us

a. A. The Company has not granted any loans or provided advances in thenature of loans or stood guarantee or provided security to its subsidiaries and associatesduring the year. Accordingly reporting under clause 3(iii)(a)(A) of the Order is notapplicable.

B. The Company has only granted unsecured loans or advances in thenature of loans to employees as specified below :

Loans to employees Amount (Rs in Crores)
Aggregate amount granted during the year 0.13
Balance outstanding as on March 31 2022 0.05

b. The terms and conditions of the grant of loans or advances in thenature of loans as referred to a(B) above are not prima facie prejudicial to theinterest of the Company.

c. In respect of loans or advances in the nature of loans granted bythe Company the schedule of repayment of principal has been stipulated and the repaymentsare regular.

d. Loans or advances in the nature of loans given in earlier years bythe Company to its subsidiary of Rs 54.29 crores and to its employees Rs 0.19 crores wereoverdue against which adequate provision has been made in earlier year/s or during theyear.

e. No loans or advances in the nature of loans granted by the Companythat have fallen due during the year have been renewed or extended or fresh loans grantedto settle the overdues of existing loans given to the same parties.

f. The Company has not granted any loans or advances in the nature ofloans that are either repayable on demand or without specifying any terms or period ofrepayment.

iv. The Company has obtained a legal opinion that it can avail theexemption provided in Section 186 (11) of the Act and that by virtue of such exemption theprovisions of Section 186 (2) of the Act are not applicable to the Company. Based on thelegal opinion and according to the information and explanations given to us the Companyhas complied with the provisions of Sections 185 and 186 of the Act with respect to grantof loans investments made guarantees given and securities provided if any.

v. In our opinion and according to the information and explanationsgiven to us the Company has complied with directives issued by Reserve Bank of India andthe provision of Sections 73 to 76 or any other relevant provisions of the Act and theCompanies (Acceptance and Deposits) Rules 2014 as amended with regard to depositaccepted by the Company from the public or amounts which are deemed to be deposits.According to the information

and explanations given to us no order has been passed by the CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any Court or anyother Tribunal.

vi. We have broadly reviewed the books of account and recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as specified by the Central Government for maintenance of cost records under Section148(1) of the Act in respect of the products manufactured by the Company and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the said accounts andrecords with a view to determine whether they are accurate or complete.

vii. a. According to the information and explanations given to us andon the basis of the books and records examined by us the Company has been regular indepositing undisputed statutory dues including Goods and Service Tax Provident FundEmployees' State Insurance Income-tax Sales-tax Service Tax Duty of Customs Duty ofExcise Value Added Tax Cess and other statutory dues as applicable to it with theappropriate authorities except for the Property Tax shown below. There are no arrears ofoutstanding statutory dues as at March 31 2022 for a period of more than six months fromthe date they became payable except the following :

Name of statute Nature of the dues Amount Rs in Crores Period to which the Amount relates Remarks
The Mumbai Municipal Corporation Act Property Tax 19.43 2017-18 Under negotiation

b. According to the information and explanations given to us and on thebasis of the books and records examined by us details of statutory dues referred to insub-clause (a) above which have not been deposited on account of disputes as on March 312022 and the forum where the dispute is pending are given below :

Sr. No. Name of statute Nature of the dues Amount (Rs in Crores) Period to which the Amount relates Forum where dispute is pending
1. Sales Tax and Value Added Tax Sales Tax 0.09 1999-2000 Maharashtra Sales Tax Tribunal
CST 0.61 2009-2010 Assistant Commissioner of Sales Tax New Delhi
VAT 3.83 2014-2015 Joint Commissioner of Sales Tax (Appeals) Haryana
VAT 0.91 2015-2016 Joint Commissioner of Sales Tax (Appeals) Haryana
CST 0.20 2017-2018 The Joint Commissioner of Sales Taxes Haryana
CST 0.16 2016-2017 The Joint Commissioner of Sales Taxes Haryana
CST 0.07 *(0.02) 2015-2016 The Joint Commissioner of Sales Taxes UP
VAT 0.03 2015-2016 Deputy Commissioner of Sales Tax Maharashtra
CST 0.13 2015-2016 Deputy Commissioner of Sales Tax Maharashtra
2. The Income-tax Act 1961 Income Tax 4.76 (*4.76 1989-1990 High Court
Income Tax 0.13 (*0.13) 2009-2010 Income Tax Appellate Tribunal
Income Tax 0.27 (*0.27) 2010-2011 Commissioner of Income Tax (Appeal)
Income Tax 3.70 2011-2012 Commissioner of Income Tax (Appeal)
Income Tax 4.31 2012-2013 Commissioner of Income Tax (Appeal)
Income Tax 5.59 2013-2014 Commissioner of Income Tax (Appeal)
3. The Customs Act 1962 Customs duty 1.90 (*0.95) 1995-2012 Commissioner of Customs (Appeals) Mumbai
4. The Central Excise Act 1944 Excise Duty 0.22 (*0.06) 1989-1990 to 1995-1996 Commissioner of Central Excise (Appeals) Mumbai
Excise Duty 0.62 1995-1996 to 1996-1997 Deputy Commissioner of Central Excise
Excise Duty 0.03 1997-1998 Deputy Commissioner of Central Excise
Excise Duty 0.36 1981-1985 Commissioner of Central Excise (Appeals)
Service Tax 0.58 2003-2004 to 2005-2006 Commissioner of Service Tax Mumbai Tribunal
5. The Maharashtra Gram Panchayat Act 1958 Gram Panchayat Tax 1.03 2009-2010 to 2017-2018 High Court

indicates amount deposited or paid under dispute

viii. According to the information and explanations given to us theCompany did not have any transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961.

ix. a. According to the information and explanations given to us

as also on the basis of the books and records examined by us theCompany has not defaulted in repayment of dues to financial institutions or banks or anylenders. The Company has not taken any loan or borrowing from Government and has notissued any debenture during the year.

b. According to the information and explanations given to us and on thebasis of our audit procedures the Company is not declared willful defaulter by any bankor financial institution or other lender.

c. According to the information and explanations given to us and on thebasis of the books and records examined by us the term loans taken during the year havebeen applied for the purposes for which those were obtained.

d. According to the information and explanations given to us and on anoverall examination of the balance sheet of the Company we report that funds raised onshort-term basis have not been utilised for long-term purposes.

e. According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that during theyear the Company has not taken any funds from an entity or person on account of or tomeet the obligations of its subsidiaries or associate companies.

f. According to the information and explanations given to us andprocedures performed by us the Company has not raised any loans during the year on thepledge of securities held in its subsidiaries or associate companies.

x. a. According to the information and explanations given to us and onthe basis of the books and records examined by us the Company has not raised any money byway of initial public offer or further public offer (including debt instruments) duringthe year. Accordingly reporting under clause 3 (x)(a) of the Order is not applicable.

b. According to the information and explanations given to us and on thebasis of the books and records examined by us the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully partially oroptionally convertible) during the year. Accordingly reporting under clause 3(x)(b) ofthe Order is not applicable.

xi. a. On the basis of books and records of the Company examined

by us and according to the information and explanations given to us wereport that no material fraud by the Company or any fraud on the Company has been noticedor reported during the year in the course of our audit.

b. According to the information and explanations given to us no reportunder section 143(12) of the Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.

c. As represented to us by the management the Company has not receivedany whistle-blower complaint during the year and upto the date of this report.

xii. The Company is not a Nidhi Company. Accordingly reporting underclause 3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to us and onthe basis of records of the Company examined by us transactions with the related partiesare in compliance with Sections 177 and 188 of the Act where applicable and the detailsof such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

xiv. a. According to the information and explanations given to

us in our opinion the Company has an adequate internal audit systemcommensurate with the size and nature of its business.

b. We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

xv. According to the information and explanations given to us and onthe basis of the books and records examined by us the Company has not entered intonon-cash transactions with directors or persons connected to its directors. Accordinglyreporting under clause 3(xv) of the Order is not applicable.

xvi. a. As per the information and explanations given to us and onbasis of books and records examined by us the Company is not required to be registeredunder Section 45-IA of the Reserve Bank of India Act 1934; the Company has not conductedany Non-banking Financial or Housing Finance activities during the year; the Company isnot a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bankof India. Accordingly reporting under clauses 3(xvi)(a) 3(xvi)(b) and 3(xvi)(c) of theOrder are not applicable to the Company.

b. According to the information and explanations provided by themanagement of the Company the Company has two CICs as part of the Group both of whichare exempt from registration. We have not however separately evaluated whether theinformation provided to us is accurate and complete.

xvii. The Company has incurred cash losses of Rs 515.18 Crore in thecurrent financial year and that of Rs 479.73 Crore in the immediately preceding financialyear.

xviii. There has been no resignation by the statutory auditors of theCompany during the year. Accordingly clause 3(xviii) of the Order is not applicable.

xix. On the basis of ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and more particularly our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

xx. As per the information and explanations given to us and on basis ofbooks and records examined by us we report that since the Company has average net lossesduring the immediately preceding three financial years it is not required to spend anymoney under sub-section (5) of section 135 of the Act and accordingly any reporting underclause (xx) of the Order is not applicable to the Company for the year.

For BANSI S. MEHTA & CO. Chartered Accountants Firm Registration No.100991W
PLACE : Mumbai DATED : May 4 2022 PARESH H. CLERK Partner Membership No. 036148 UDIN :22036148AIJHHW5656

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