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COSCO (India) Ltd.

BSE: 530545 Sector: Others
NSE: N.A. ISIN Code: INE949B01018
BSE 00:00 | 07 Feb 172.10 0.10
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NSE 05:30 | 01 Jan COSCO (India) Ltd
OPEN 172.10
PREVIOUS CLOSE 172.00
VOLUME 385
52-Week high 285.00
52-Week low 160.10
P/E 40.88
Mkt Cap.(Rs cr) 72
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 172.10
CLOSE 172.00
VOLUME 385
52-Week high 285.00
52-Week low 160.10
P/E 40.88
Mkt Cap.(Rs cr) 72
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

COSCO (India) Ltd. (COSCOINDIA) - Auditors Report

Company auditors report

To the members of Cosco (India) Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of CoscoIndia Limited ("the Company") which comprise the Balance Sheet as at March31 2022 the Statement of Pro t and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred 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 ("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 ("IndAS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022the profit and 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 specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements

Emphasis of matter:

Note no 5.3 regarding recoverable amount of land compensation Note No9.2 regarding trade receivables Note no. 19.3 regarding trade payable.

Our opinion is not qualified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. For each matter below our description of how ouraudit addressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the standalone Ind AS financialstatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind AS financial statements. The resultsof our audit procedures including the procedures performed to address the matters belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

The Key Audit Matter How the matter was addressed in our audit
Trade Receivables/ Trade payables note no. 9.2 and 19.3 Principal audit procedures performed
We have applied the following relevant audit procedures:
Trade receivables trade payables and advances against import constitute significant amount and includes both indigenous and foreign vendors. Company has sent letters for confirmations which are awaited. The foreign trade receivables and advance against LC are subject to exchange fluctuation exposure. Checking the subsequent realisations payments and adjustments in case of major vendors to ensure veracity of these accounts.
Checking the recording realisations payments of monetary assets / liabilities at transaction / realisation and payment date and Reinstatement thereof at reporting date as per the relevant IndAS and recording of the exchange differences in the statement of profit and loss.

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

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportSecretarial audit report Corporate Governance etc. but does not include the standalonefinancial statements and our auditor's report thereon.

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. The information included in the Annual report i.e. Directors ReportManagement Discussion and Analysis Corporate Governance Report etc. is expected to bemade available to us after the date of this auditor's report.

In connection with our audit of the IndAS financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether such other information is materially inconsistent withthe IndAS financial statements or our knowledge obtained in the audit or otherwise appearsto be materially misstated.

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 of these standalone financialstatements 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 the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company'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 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 professionaljudgment and maintain professional 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 controlsrelevant to the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

· Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related 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 ofthe standalone 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 financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

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

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

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the 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 andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit.

(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 andproper returns adequate for the purpose our audit have been received from branches notvisited by us. (c) the balance sheet the statement of profit and loss includingother comprehensive income statement of changes in equity and the statement of cash flowdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with IndAs specified under Section 133 of the Act.

(e) on the basis of the written representations received from thedirectors as on 31-3-2022 taken on record by the Board of Directors none of the directorsis disqualified as on 31 March 2022 from being appointed as a director in terms of Section164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure A"; and

(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 Act asamended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act

(h) with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the \best of our information and according to the explanationsgiven to us:

i. the Company has disclosed the impact of pending litigations onits financial position in its financial statements;

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

iii. there were no amounts which were required to be transferredto the Investor 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 theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the 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 Company from any person or entity including foreign entity("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 78 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. The Company has not declared or paid any dividend during theyear and has not proposed nal dividend for the year and therefore the requirement ofcompliance of Sec 123 of the Act are not applicable.

2 As required by the Companies (Auditor's Report) Order 2020 (the"Order") issued by the Central Government in terms of Section 143(11) of theAct we give in "Annexure B" a statement on the matters specified in paragraphs3 and 4 of the Order.

For V. P. Jain & Associates
Chartered Accountants
Firm's registration number: 015260N
Sarthak Madaan
Partner
Membership number: 547131
UDIN: 22547131ALZYOO2109
Place: New Delhi
Date: 30.05.2022

Annexure - A to the Auditors' Report

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

We have audited the internal financial controls over financialreporting of Cosco (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 and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

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") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating 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 with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company generally has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31 March2022 based on the internal control over financial reporting criteria 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 (the "Guidance Note") however inthe following areas the internal control needs to be further strengthened :

O SALES RETURN : Control regarding the accounting of sales return andtimely reporting of the sales return by the stores department to the accounts departmentand maintenance of adequate records by the accounts department in respect of defectivegoods returned.

O PURCHASES : Timely recording of purchase invoices.

O INVENTORY : The controls regarding physical verification of work inprogress needs to strengthened and verification should be done by stopping the operations.

The inventories should be monitored closely to keep inventories atreasonable levels to improve Inventory Turnover Ratio.

O TRADE RECEIVABLES : More proactive actions required to effectuaterecovery of Old Receivables more specifically which are outstanding for more than oneyear. Also where there are inordinate delays in payments such customers should bemonitored selectively and effectively through MIS. Invariably some customers availextended credit - Credit discipline need to be enforced in these cases.

O Fixed Assets Physical verification: needs improvement to see allitems of fixed assets are physically verified in phase of 3 years.

O Contract Labour Management: Control regarding maintenance of dualrecords by time office and production department about labour supply through contractor.

For V. P. Jain &Associates

Chartered Accountants

Firm's registration number: 015260N
Sarthak Madaan

Partner

Membership number: 547131
Place: New Delhi UDIN: 22547131ALZYOO2109
Date: 30.05.2022

Annexure - B to the Auditors' Report

(Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' section of our report)

To the best of our information and according to the explanationsprovided to us by the Company and the books of account and records examined by us in thenormal course of audit we state that:

(I) In respect of Company's Property Plant and Equipment:

(a) The company is maintaining proper records showing full particularsincluding quantitative details and situation of Property Plant & Equipment. Theintangible assets of the company comprise of computer software for which company ismaintaining proper records showing full particulars.

(b) The Company has a programme of verification of fixed assets tocover all the items in a phased manner over a period of three years which in ouropinion is reasonable having regard to the size of the company and the nature of itsactivities. Pursuant to the said programme certain property plant and equipment's werephysically verified by the Management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties in the name of erstwhile firm taken over by the company at the time ofincorporation (other than those that have been taken on lease and the lease agreements areduly executed in favour of the Company) are held in the name of the Company. Original copyof title deeds have not been produced as the same are deposited as security with banksunder loan agreement as confirmed by the management and certified by the Bank.

(d) The Company has not revalued any of its Property Plant andEquipment (including right-of-use assets) and intangible assets during the year

(e) On the basis of the information and explanations given to us dulycertified by the management and examination of records no proceedings have been initiatedduring the year or are pending against the Company as at March 31 2022 for holding anybenami property under the Benami Transactions (Prohibition) Act 1988 (as amended in 2016)and rules made thereunder.

(ii) (a) The inventories were physically verified during the yearby the Management at reasonable intervals. In our opinion and according to the informationand explanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorywere noticed on such physical verification of inventories when compared with books ofaccount.

(b) According to the information and explanations given to us theCompany has been sanctioned working capital limits in excess of Rs. 5 crores inaggregate at points of time during the year from banks or financial institutions on thebasis of security of current assets. In our opinion and according to the information andexplanations given to us the quarterly returns and statements comprising (stockstatements book debt statements and statements on ageing analysis of the debtors) led bythe Company with such banks or financial institutions are in agreement with the unauditedbooks of account of the Company of the respective quarters except for the following:

For the quarter Sanctioned amount to which the discrepancy relates * (Amount in ` Lakhs Nature of Current asset Nature of Discrepancy Amount as per Quarterly return and statements (Amount in ` lakhs As per Unaudited books of accounts (Amount in ` lakhs) Difference (Amount in ` lakhs) Remarks (Including subsequent recti cation if any)
JUNE 2021 2800 Trade Receivable Non current debtors are not considered. 2439.41 2505.06 (65.65) Non Current debtors could not be considered due to inadvertence and no subsequent recti cation was led with bank.
SEPTEMBER 2021 2800 Inventory Stores and Spares Clerical mistakes. 135.16 135.21 (0.05) Clerical mistakes and no subsequent recti cation was led with bank
MARCH 2022 2800 Trade Receivable Provision for doubtful debts are not considered. 2371.67 2253.88 117.79 Provision for doubtful debts were not considered due to inadvertence and no subsequent recti cation was led with bank.
MARCH 2022 2800 Inventory Raw material Non moving items are valued at 5% which was wrongly added at full value. 345.05 298.45 46.60 While considering Non moving items of raw materials valued at 5% ` 0.49 lakhs of store (valued at ` 9.80 lakhs) were wrongly considered due to inadvertence.

(iii) (a) The Company has not made investments in provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to Companies rms Limited liability partnership or any other parties duringthe year except an amount ` 40.84 Lakhs as loan given to the employees in the ordinarycourse of business. The Balance outstanding as at the end of the year are ` 26 lakhs.

(b) Loan to employees of ` 40.84 Lakhs granted during the year are inthe ordinary course of the business as per policy of the company and hence not prejudicialto the interest of the company.

(c) Stipulations in respect of loans granted to the employees have beenlaid out and the repayments are being received accordingly.

(d) The outstanding amount of loan to employee of ` 26 Lakhs is notoverdue because payment in respect of the same is being recovered from the employees asper stipulations.

(e) No loan granted by the Company during the year which has fallen duehas been renewed or extended or fresh loans granted to settle the over dues of existingloans given to the same parties.

(f) During the year the company has not granted any loans or advancesin the nature of loans either repayable on demand or without specifying any terms orperiod of repayment.

(iv) In our opinion and according to the information andexplanations given to us and certified by the company loans and investments made are incompliance of section 185 and 186 of the Act.

(v) During the year the Company has not accepted any deposits(other than the deposits from the Directors which are exempt under sub clause (viii) ofclause (c) of rule 2 of The Companies (Acceptance of Deposits) Rules 2014). There are noamounts which are deemed to be deposits. Hence reporting under clause 3(v) of the Orderis not applicable.

(vi) It is certified by the management that company is notrequired to maintain the cost records prescribed under section 148 (1) of the CompaniesAct 2013 since the same has not been specified by the Central Government. We have reliedupon the assertions of the management.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the company has generallybeen regular in depositing undisputed statutory dues including Goods and Service Taxprovident Fund Employees State insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory duesapplicable to it with the appropriate authorities. There were no undisputed amountspayable in respect of the aforesaid statutory dues in arrears as at 31.03.2022 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to usthere are no statutory dues referred to in sub clause (a) which have not been deposited asat 31.03.2022 on account of any dispute except following:

Name of Statute Nature of dues Amount (in ` lakhs) Period Forum where dispute is pending
The Income Tax Act 1961 Income tax 23.00 Assessment year 2018-19 Commissioner of Income Tax (Appeals)
Uttar Pradesh Value Added Tax Act2008 Sales tax (VAT) 18.07 Financial year 2008-09 Supreme Court
Central Sales Tax Act/ Uttar Pradesh Value Added Tax Act2008 Central tax 16.63 Financial year 2008-09 Supreme Court

(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) As certified by the Bank the Company has not defaulted inthe repayment of the Loans and interest thereon during the year in respect of creditfacilities. The company has not taken any loan from any other lender other than theDirectors / group company.

(b) As certified by the Bank the Company has not been declared wilfuldefaulter.

(c) According to the information and explanations given to us Companyhas applied the term loans (Including working capital term loans) for the purposes forwhich the same have been obtained.

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

(e) The Company has not taken any funds from any entity or person onaccount of or to meet the obligations of its subsidiary Joint venture or associates.

(f) The Company doesn't have any subsidiaries and hence reporting underclause 3(ix)(f) of the order regarding raising of loans by pledging the securities held insubsidiaries is not applicable.

(x) (a) The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) during the year and hencereporting under clause 3(x)(a) of the Order regarding utilisation of the funds so raisedis not applicable.

(b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully partly or optionallyconvertible) and hence reporting under clause (x)(b) of the Order regarding compliancesunder section 42 and section 62 of the Companies Act 2013 are not applicable to theCompany.

(xi) (a) To the best of our knowledge and as certified by themanagement no fraud by the Company or no fraud on the Company has been noticed orreported during the year.

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

(c) As represented by the Management there was no whistle blowercomplaints received by the Company during the year (and upto the date of this auditreport).

(xii) In our opinion and according to the information andexplanations given to us the Company is not a nidhi company. Accordingly paragraph3(xii) of the Order regarding maintenance of required net owned fund to Deposit ratio andother requirements are not applicable.

(xiii) According to the information and explanations given to usand based on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby 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 except the system needsto be substantially strengthened in terms of scope coverage and compliances of earlierobservations

(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) As per the information available and to the best of ourknowledge in our opinion during the year the Company has not entered into any non-cashtransactions 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 beregistered under section 45-IA of the Reserve Bank of India Act 1934 and Hence reportingunder clause 3(xvi)(a) of the Order is not applicable.

(b) The Company has not conducted any non-banking financial or housingfinancing activities during the year and therefore the requirement of reporting regardingthe certificate of registration is not applicable.

(c) In our opinion the company is not a Core Investment Company asdefined in the regulations made by the Reserve Bank of India

(d) As informed by the management there are two core investmentcompanies within the Group (as defined in the Core Investment Companies (Reserve Bank)Directions 2016)

(xvii) The Company has not incurred cash losses during thefinancial year and in the immediately preceding financial year.

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

(xix) On the basis of the financial ratios ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the financial statements and our knowledge of the Board ofDirectors and Management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report indicating that Company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.

(xx) (a) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.

(b) The Company has spent the required amount u/s 135(5) towardscorporate social responsibility by way of contribution to Mahattra Sadhvi ShreeMirgavatiji Foundation (registered for receiving CSR expenditure) for the construction ofBird hospital to support the mission of environmental sustainability and ecologicalbalance and hence reporting under the clause 3(xx) (b) is not applicable.

For V. P. Jain &Associates

Chartered Accountants

Firm's registration number: 015260N
Sarthak Madaan

Partner

Place: New Delhi Membership number: 547131
Date: 30.05.2022 UDIN: 22547131ALZYOO2109

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