To the Members of CCL Products (India) Limited Report on the Audit ofthe Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of CCLPRODUCTS (INDIA) LTD.("the Company") which comprise the Balance Sheet as at 31stMarch 2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.
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 Act2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended. ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312022and its profit total comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAS) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor?s Responsibilities for the Audit of the standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevant to our audit of the standalonefinancial 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 we have obtained issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.
Emphasis of Matter
We draw attention to Note 48 of the financial statements whichdescribes the extent to which the COVID-19 Pandemic will impact the Company's resultswhich depend on future developments that are highly uncertain. Our opinion is not modifiedin respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professionaljudgement were of most significant in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report
|Key Audit Matter ||Auditor?s Response |
|Fair value assessment of trade receivables ||Principal Audit Procedures |
|Trade receivables comprise a significant portion of the liquid assets of the Company. ||We assessed the validity of material long outstanding receivables which are Nil by reviewing the customer ledger during current year. We also considered payments received subsequent to year-end and unusual patterns if any were reviewed to identify potentially impaired balances. The assessment of the appropriateness of the allowance for trade receivables comprised a variety of audit procedures across the Group including: |
|The trade receivables are mostly dues receivable from Government and allied Government agencies hence not impaired. There was no provision made on the trade receivable in the previous year. The most significant portion of the trade receivables less than one year comprises which are dues from || Challenging the appropriateness and reasonableness of the assumptions applied in the directors? assessment of the receivables allowance; |
|Government and Government agencies hence not impaired. Accordingly the estimation of the allowance for trade receivables is a significant judgment area and is therefore considered a key audit matter. || Consideration and concurrence of the agreed payment terms; |
| || Verification of receipts from trade receivables subsequent to year-end; and |
| || Considered the completeness and accuracy of the disclosures. To address the risk of management bias we evaluated the results of our procedures against audit procedures on other key balances to assess whether or not there was an indication of bias. We were satisfied that the Company?s trade receivables are fairly valued and no provision is deemed to be required against these receivables. |
|Revenue recognition ||Principal Audit Procedures |
|The Company applies judgment to determine whether each goods software product or services promised to a customer are capable of being distinct and are distinct in the context of the contract if not the promised goods software product or services are combined and accounted as a single performance obligation. The Company allocates the arrangement consideration to separately identifiable performance obligation deliverables based on their selling price determined in contract. ||Our audit procedures in respect of this area included: |
| ||We evaluated the effectiveness of key controls over the capture and measurement of revenue transactions across all material revenue streams Testing controls over software product sales including: |
| ||- documentation evidencing internal and third party physical inspection and confirmation of complete status; |
|The accuracy and of revenue amounts recorded is an inherent industry risk ||We evaluated the adequacy of the disclosures included in Note 24. |
|Disclosures relating revenue recognition are in Note 23. || |
Information Other than the Financial Statements and Auditor?sReport Thereon
The Company?s Board of Directors is responsible for thepreparation of other information. The other information comprises the information includedin the Directors Report and Corporate Governance Re- port but does not include theconsolidated financial statements standalone financial statements and our auditor?sreport thereon. The Directors Report and Corporate Governance Report is expected to bemade available to us after the date of this auditor?s report.
Our opinion on the standalone financial statements does not cover theother information and we will 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 identified above when it becomesavailable and in doing so consider whether the other in- formation is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.
When we read the Directors report and Corporate Governance Report if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with Gov- ernance.
Management?s Responsibility for the standalone financialStatements
The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the IND AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate implementation and maintenance of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operat- ing effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Com- pany?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany?s financial reporting process.
Auditor?s Responsibilities for the Audit of the standaloneFinancial Statements
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 guar- antee that an auditconducted in accordance with SAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.
As part of an audit in accordance with SAS we exercise professionaljudgment and maintain profes- sional scepticism 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 financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsiblefor expressing our opinion on whether the company has ade- quate internal financialcontrols system 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 thegoing concern basis of account- ing and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw atten- tion in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause 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 underly- ing 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 inter- nal 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 regu- lation precludespublic disclosure about the matter or when in extremely rare circumstances we de-termine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit wereport that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowl- edge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept 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 Statement of Changes in Equity and the Statement of Cash FlowStatement dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directorsnone of the directors are disqualified as on 31st March 2022 from beingappointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Com- pany and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure- A".
(g) With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section 197(16) of the Actas amended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid or provided by the company to itsdirectors during the year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our informa- tion and according to theexplanations given to us:
i. The Company does not have any pending litigations which would impactthe standalone financial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there are any material foreseeable losses;
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company;
iv. (a) The Management has represented that to the best of itsknowledge and belief no funds
(which are material either individually or in the aggregate) have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the Company to or in any other person or entity includingforeign entity ("In- termediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Company ("Ultimate Beneficia- ries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Com- pany from any person or entity including foreign entity("Funding Parties") with the un- derstanding 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;
(c) Based on the 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 providedunder (a) and (b) above contain any material misstatement
v. As stated in Note 42 to the standalone financial statements:
(a) the dividend proposed in the previous year declared and paid bythe Company during the year is in accordance with Section 123 of the Act as applicable.
(b) The Board of Directors of the Company have proposed dividend forthe year which is sub- ject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act asapplicable.
2. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government in terms of Section 143 (11) ofthe Act we give in "Annexure- B" a statement on the matters specified inparagraphs 3 and 4 of the Order.
Annexure - A to the Independent Auditors? Report
(Referred to in paragraph 1(f) under Report on Other LegalRegulatory Requirements' section of our report to the Members of the Company of even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of CCL PRODUCTS (INDIA) Limited ("the Company") as of 31 March 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management?s Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by ICAI and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the 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 system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand
expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
Annexure - B to the Independent Auditors? Report
With reference to Paragraph 2 under Report on Other LegalRegulatory Requirements' section of our report to the Members of the Company we reportthat:
i. In respect of the Company's Property Plant and Equipment andIntangible Assets:
(a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipmentand relevant details of right-of-use assets.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) According to the information and explanations given to us and therecords of the company examined by us the property plant and equipment have beenphysically verified by the management in a periodical manner which in our opinion isreasonable having regard to the size of the Company and the nature of its business. Nomaterial discrepancies were noticed on such physical verification.
(c) Based on our examination of registered sale deeds and otherdocuments the title deeds of all the immovable properties disclosed in the financialstatements are held in the name of the Company
(d) The Company has not revalued any of its Property Plant andEquipment (including right-of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pendingagainst the Company as at March 312022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 and rules made thereunder.
ii. (a) The inventory has been physically verified by the managementduring the year. In our opinion the coverage frequency and procedure of suchverification is reasonable and adequate in relation to the size of the Company and thenature of its business. The discrepancies noticed on verification between the physicalstocks and the book records were not exceeding 10% in the aggregate for each class ofinventory and have been properly dealt within the books of account.
(b) The Company is sanctioned working capital limits in excess of ' 5Crore from banks on the basis of security of current assets. Further the quarterlyreturns or statements filed by the Company with such banks are in agreement with the booksof account of the Company.
iii. The Company has granted in the nature of loans to the subsidiarycompany and the details of which are given as follows:
|S No ||To Whom ||Balance outstanding as at Balance Sheet date* ||Nature of the Trasaction |
| || ||( Rupees in lakhs ) || |
|1 ||Continental Coffee Private Limited ||1650.00 ||Short Term Loan |
*The amounts reported are at gross amount without consideringprovision made
(b) The investments made guarantees provided security given and theterms and conditions of the grant of all the above-mentioned loans and advances in thenature of loans and guarantees provided during the year are in our opinion prima facienot prejudicial to the Company's interest.
(c) In respect of loans granted or advances in the nature of loansprovided by the Company the schedule of repayment of principal and payment of interesthas been stipulated and the repayments of principal amounts and receipts of interest areregular as per stipulation.
(d) According to information and explanations given to us and based onthe audit procedures performed in respect of loans granted and advances in the nature ofloans provided by the Company there is no overdue amount remaining outstanding as at thebalance sheet date.
(e) No loan or advance in the nature of loan granted by the Companywhich has fallen due during the year has been renewed or extended or fresh loans grantedto settle the overdue of existing loans given to the same parties.
(f) According to information and explanations given to us and based onthe audit procedures performed the Company has not granted any loans or advances in thenature of loans either repayable on demand or without specifying any terms or period ofrepayment during the year. Hence reporting under clause (iii)(f) is not applicable.
iv. The Company has complied with the provisions of Sections 185 and186 of the Companies Act 2013 in respect of loans granted investments made andguarantees and securities provided as applicable.
v. The Company has not accepted any deposit or amounts which are deemedto be deposits. Hence reporting under clause 3(v) of the Order is not applicable.
vi. We have broadly reviewed the cost records maintained by the Companyas prescribed under subsection (1) of section 148 of the Act and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.
According to the information and explanations given to us there are nomaterial dues of income tax or sales tax or service tax or Goods and Services Tax or dutyof customs or duty of excise or value added tax which have not been deposited by thecompany on account of dispute except for the following:
|S No ||Name of the Statute ||Nature of Dues ||Amount in Lakhs ||Period ||Forum Where dispute is pending |
|1 ||The Income Tax Act 1961 ||Income Tax ||3539.48 (2883.28 deposited under protest) ||Assessment years from 2006-07 to 2013-14 ||A P High Court |
|2 ||The Income Tax Act 1961 ||Income Tax ||160.58 ||Assessment years from 2011-12 to 2012-13 ||CIT(Appeals) Guntur |
|3 ||The Income Tax Act 1961 ||Income Tax ||357.31 ||Assessment years from 2016-17 to 2017-18 ||CIT(Appeals) Guntur |
|4 ||Service Tax Act ||Service Tax ||995.92 ||Financial year from 2013-14 to 2017-18 ||CESTAT |
|5 ||Sales Tax Act ||Central Sales Tax ||47.15 ||Financial year from 2015-16 ||Sales Tax Appeal Tirupati |
|6 ||Sales Tax Act ||Central Sales Tax ||104.79 ||Assessment years from 2016-17 ||Sales Tax Appeal Tirupati |
vii. In respect of statutory dues:
a) In our opinion the Company has generally been regular in depositingundisputed statutory dues including Goods and Services tax Provident Fund Employees'State Insurance Income Tax Sales Tax Service Tax duty of Custom duty of Excise ValueAdded Tax Cess and other material statutory dues applicable to it with the appropriateauthorities.
There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees' State Insurance Income Tax Sales Tax ServiceTax duty of Custom duty of Excise Value Added Tax Cess and other material statutorydues in arrears as at March 31 2022 for a period of more than six months from the datethey became payable.
b) As per the information and explanations given to us and based onrecords examined by us there were no undisputed amounts outstanding amounts referred insub-clause (a) above and hence clause 3(vii)(b) of the order is not applicable.
viii. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).
ix. a) The Company has not defaulted in repayment of loans taken fromthe banks. The Company has not taken loans from financial institutions and Government.
b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.
c) The Company has not taken any term loan during the year and thereare no outstanding term loans at the beginning of the year and hence reporting underclause 3(ix)(c) of the Order is not applicable.
d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.
e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiary.
f) According to the information and explanations given to us andprocedures performed by us we report that the company has not raised loans during theyear on the pledge of securities held in its subsidiary.
x. a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.
b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi. a) No fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year.
b) No report under sub-section (12) of section 143 of the Companies Acthas 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 the date of this report.
c) As represented to us by the management there are no whistle blowercomplaints received by the company during the year.
xii. The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.
xiii. In our opinion the Company is in compliance with Section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements as required by the applicable accounting standards.
xiv. a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.
b) We have considered the internal audit reports 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. In our opinion during the year the Company has not entered into anynon-cash transactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.
xvi. a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a) (b) and (c) of the Order is not applicable.
b) In our opinion there is no core investment company within the Group(as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of theCompany during the year.
xix. On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities 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 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. a) There is no amount to be spent for other than ongoing projectstowards Corporate Social
Responsibility (CSR). Hence reporting under clause 3(xx)(a) of theOrder is not applicable for the year.
b) The Company does not have ongoing projects relating to CSR. Hencereporting under clause 3(xx)(b) of the Order is not applicable.
| ||For Ramanatham & Rao |
| ||Chartered accountants |
| ||Firm Registration No.002934S |
| ||(K. Sreenivasan) |
| ||Partner |
| ||ICAI Membership No. 206421 |
|Place : Hyderabad Date : 26th May 2022 ||UDIN: 22206421AJQJCV5778 |