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DCM Shriram Ltd.

BSE: 523367 Sector: Others
NSE: DCMSHRIRAM ISIN Code: INE499A01024
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NSE 00:00 | 05 Mar 522.45 -22.60
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547.90

HIGH

559.90

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OPEN 549.90
PREVIOUS CLOSE 545.00
VOLUME 17821
52-Week high 561.50
52-Week low 175.80
P/E 12.70
Mkt Cap.(Rs cr) 8,157
Buy Price 523.05
Buy Qty 108.00
Sell Price 525.00
Sell Qty 19.00
OPEN 549.90
CLOSE 545.00
VOLUME 17821
52-Week high 561.50
52-Week low 175.80
P/E 12.70
Mkt Cap.(Rs cr) 8,157
Buy Price 523.05
Buy Qty 108.00
Sell Price 525.00
Sell Qty 19.00

DCM Shriram Ltd. (DCMSHRIRAM) - Auditors Report

Company auditors report

To the Members of DCM Shriram Limited

Report on the audit of the Standalone financial statements

Opinion

1. We have audited the accompanying standalone financial statements of DCM ShriramLimited ("the Company") which comprise the balance sheet as at March 31 2020and the statement of Profit and Loss (including Other Comprehensive Income) statement ofchanges in equity and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 312020 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year then ended.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the 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 together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

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

Key Audit Matter How our audit addressed the key Audit Matters
4.1 Physical verification and determination of carrying value of inventory of sugar and the related products as at the year ended March 312020 We understood the design and tested the operating effectiveness of controls as established by the management in determination of cost for joint products and estimated net realizable value of inventory of sugar and related products.
(Refer to the accompanying notes 1.3 (f) 6 52 and 55 forming integral part of the Standalone Financial Statements) We considered various factors including technical assessment of the management industry practice significance of the products manufacturing objective in determination of classification of the products as 'joint products'; the relative net realisable value of sugar and B- heavy molasses based ethanol in determination of a rational basis for allocation of cost between the joint products; and the actual selling price prevailing prior and subsequent to the year end minimum selling price monthly quota and other notifications of the Government of India initiatives taken by the Government with respect to sugar industry as a whole.
As on March 31 2020 the Company had an inventory of sugar and related products i.e. molasses ethanol etc. with a carrying value 1509.74 crores. During the current year the Company has commenced production of ethanol at its Distillery units using a particular type of molasses (B-heavy a product produced along with sugar).
Sugar and B-heavy molasses have been recognised as joint products and the cost of production has been allocated between these joint products based on technical estimates.
We considered the determination of carrying value of the inventory (i.e. lower of cost and NRV) of joint products sugar and B-heavy molasses as a Key Audit Matter given the relative size in the financial statements and significant judgement involved in analysing the relevant factors such as basis for classification of B-heavy molasses as a joint product determination of a rational basis for allocation of cost i.e. on technical estimates between the joint products in calculating the cost of inventories and NRV determined basis minimum sale price monthly quota fluctuation in selling prices and the related notifications of the Government authorities. Also the physical verification of the above inventories could not be observed by us due to lock-down restrictions at the year-end. Consequent to the lockdown restrictions at the year-end we have observed the physical inventory process of sugar and other related products subsequent to the year-end at the significant locations and performed roll back procedures to obtain sufficient appropriate audit evidence about the existence and condition of inventory at the balance sheet date.
Based on the above procedures performed the carrying value and existence of inventory of sugar and related products as at the year-end determined by the management is considered to be reasonable.
4.2 Assessment of impairment of investments and loans/advances given to subsidiaries We understood the design and tested the operating effectiveness of controls as established by management in determination of appropriateness of the carrying value of investments loans and advances.
(Refer to the accompanying notes 1.4(iii) 3.13.2 7.4 9 25 31 and 52 forming integral part of the Standalone Financial Statements) The Company had given loans and advances which aggregate to Rs. 230.40 crores as at March 31 2020 to subsidiaries and also has investments amounting to Rs. 150.81 crores in this regard. We evaluated the Company's process regarding impairment assessment by involving our valuation experts (auditor's expert) to assist in assessing the appropriateness of the impairment model including the independent assessment of the underlying assumptions relating to discounts rate economic growth rate terminal value sensitivity analysis etc. and also evaluated the cash flow forecasts (with underlying economic growth rate) by comparing them to the updated budgets provided by the management and our understanding of the related industry's external factors and impact of COVID-19.
These subsidiaries have incurred loss during the year and as at the year end their networth stands substantially eroded which indicates potential impairment of investment in those subsidiaries along with loans and advances given to such subsidiaries.
The Company has recognized impairment of Rs 154.12 crores as at March 312020 (including Rs 26.82 crores during the year) against the above investments and loans and advances. We checked the mathematical accuracy of the impairment model and the appropriate accounting in the financial statements.
We considered this a Key Audit Matter given the relative significance of value of investment and loans and advances to the financial statements and extent of management's judgements and estimates involved such as future cash flows discount rate terminal value and economic growth rates etc. around the impairment assessment. Based on the above procedures performed we observed the management's impairment assessment related to loans / advances given to subsidiaries to be reasonable.
4.3 Impact of government policies/ notifications on recognition of subsidy accruals/claims and their recoverability We understood the design and tested the operating effectiveness of controls as established by management in recognition and assessment of the recoverability of the claims.
(Refer to the accompanying notes 1.3 (g)(ii) 1.4(v)(b) 19 29 45.1 and 52 forming integral part of the Standalone Financial Statements) During the year the Company has recognised accruals/subsidy claims amounting to Rs. 762.22 crores (net) and as at March 31 2020 the Company has receivables of Rs. 589.69 crores relating to such claims which is significant to the financial statements. We evaluated the management's assessment regarding reasonable certainty for complying with the relevant conditions as specified in the Notifications / policies and collections.
We focused on this area because recognition of accruals/claims and assessment of recoverability of the claims is subject to significant judgement of the management. The area of judgement includes certainty around the satisfaction of conditions specified in the notifications/policies collections provisions thereof likelihood of variation in the related computation rates and basis for determination of accruals/claims. We considered the relevant notifications/policies issued by various authorities to ascertain the appropriateness of the recognition of accruals/claims adjustments to claims already recognised pursuant to changes in the rates and basis for determination of claims.
We tested the ageing analysis and assessed the information used by the management to determine the recoverability of the claims by considering historical trends of collection against claims the level of credit loss charged over time provisions created and reversal thereof in the financial statements.
Based on the above procedures performed the management's estimates related to recognition of subsidy accruals/claim and their recoverability are considered to be reasonable.
4.4 Appropriateness of Carrying amount of deferred tax assets relating to Minimum Alternate Tax (MAT) credit We understood the design and tested the operating effectiveness of Company's controls relating to taxation and the assessment of carrying amount of deferred tax assets.
(Refer to the accompanying notes 1.3 (m) 1.4(iv) 4 26 42 and 52 forming integral part of the Standalone Financial Statements) We reviewed the Company's accounting policy in respect of recognizing deferred tax assets on unutilised MAT credits.
The Company has recognised deferred tax assets on the unutilised tax credits representing Minimum Alternate Tax (MAT) paid on the accounting profit in the current year and in earlier years over and above the normal taxable profit in accordance with the provisions of Section 115JB of the Income-tax Act 1961 and related rules. The carrying amount of MAT Credit included under Deferred Tax Assets (net) is Rs. 398.97 crores as at the balance sheet date. We evaluated whether the tax credit entitlements are legally available to the Company in respect of the future years as estimated by the management while projecting the taxable profits considering to the provisions of Income-tax Act 1961.
We considered this as a Key Audit Matter as the assessment of the appropriateness of the carrying amount of deferred tax asset relating to MAT involves significant management judgement in assessing the availability of future taxable profits to offset the accumulated MAT credits assessment of assumptions (internal / external factors) underlying the future profit projections to establish reasonable certainty around utilization of the asset. We assessed the reasonableness of the assumptions underlying management's profit projections such as the growth rates in light of the relevant economic impact of COVID 19 and industry indicators including involving our valuation expert (auditors' expert) to assist in assessing the appropriateness of such projections.
We also assessed the sensitivity analysis applied by the Company and evaluated if any change in the assumptions will lead to any material change in carrying amount.
We checked the mathematical accuracy of the underlying calculations of the profit projections.
We also evaluated the adequacy and appropriateness of disclosures made in the financial statements.
Based on the above procedures performed the carrying amount of deferred tax assets including disclosure relating to MAT credit including disclosures are considered to be reasonable.

Other Information

5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and our auditor's report thereon.

6. Our opinion on the financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

7. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the financialstatements

8. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

9. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's responsibilities for the audit of the financial statements

10. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

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

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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

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

14. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the Key Audit Matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

15. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Act we give in the Annexure B a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March312020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2) of theAct.

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

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 28 to the financial statements;

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

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

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended March 312020.

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

For Price Waterhouse Chartered Accountant LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Harinderjit Singh
Place: Gurugram Partner
Date: June 03 2020 Membership Number: 086994
UDIN: 20086994AAAAAP9664

Annexure A to Independent Auditors' Report

Referred to in paragraph 16(f) of the Independent Auditors' Report of even date to themembers of DCM Shriram Limited on the standalone financial statements for the year endedMarch 312020 Report on the Internal Financial Controls with reference to financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference to financialstatements of DCM Shriram Limited (“the Company”) as of March 31 2020 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

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute 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 company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the “Guidance Note”) and the Standards on Auditing deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.

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

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and 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 with reference to financialstatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 312020 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Price Waterhouse Chartered Accountant LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Harinderjit Singh
Place: Gurugram Partner
Date: June 03 2020 Membership Number: 086994
UDIN: 20086994AAAAAP9664

Annexure B to Independent Auditors' Report

Referred to in paragraph 15 of the Independent Auditors' Report of even date to themembers of DCM Shriram Limited on the standalone financial statements as of and for theyear ended March 312020

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The title deeds of immovable properties as disclosed in Note 2.1 on fixed assetsto the financial statements are held in the name of the Company except for in case wheresuch immovable properties have been transferred pursuant to the scheme of amalgamationunder section 391 to 394 of the Companies Act 1956 the transfer is through the Order ofthe Hon'ble High Courts. Further freehold land located at Hyderabad (Gross block -Rs.1.56 crores and Net block - Rs. 1.56 crores) and freehold land located at Uttar Pradesh(Gross block - Rs.0.51 crores and Net block - Rs. 0.51 crores) are pending forregistration in favour of the Company.

ii. The physical verification of inventory [excluding stocks with third parties] havebeen conducted at reasonable intervals by the Management of certain types of inventoriesduring the year. Also physical verification of inventory has been carried out by themanagement subsequent to the year-end due to the lockdown restrictions imposed by theGovernment of India for which roll back procedures have been performed to determine theexistence and condition of inventory as at the year-end. In respect of inventory lyingwith third parties these have substantially been confirmed by them. The discrepanciesnoticed on physical verification of inventory as compared to book records were notmaterial.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of the loans and investments made and guarantees and security provided by it.

v. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 73 74 75 and 76 or any otherrelevant provisions of the Act and the Rules framed thereunder to the extent notifiedwith regard to the deposits accepted from the public. According to the information andexplanations given to us no order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on theCompany in respect of the aforesaid deposits.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products related to Sugar Cement Fertiliser Chemicals Poly vinyl chloride (PVC)resin Unplasticized polyvinyl chloride (UPVC) Doors and windows and electrical energybusinesses. We have broadly reviewed the same and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. We have not howevermade a detailed examination of the records with a view to determine whether they areaccurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added taxcess goods and service tax and other material statutory dues as applicable with theappropriate authorities. Also refer Note 28(i)(b) to the financial statements regardingmanagement's assessment on certain matters relating to provident fund. Further for themonth of March 2020 the Company has paid Goods and Service Tax and filed after the duedate but within the timelines allowed by Ministry of Finance under the Notification No.35/2020-GST dated April 03 2020 on fulfilment of conditions specified therein.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of goods and service tax which have not beendeposited on account of any dispute. The particulars of dues of income tax sales taxservice tax duty of customs duty of excise value added tax as at March 312020 whichhave not been deposited on account of a dispute are as follows:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount Involved (Rs. in crores) Amount paid under protest (Rs. in crores) Amount Unpaid (Rs. in crores)
Central Excise Act 1944 Excise duty Customs Excise and Service Tax Appellate Tribunal 2005-06 2006-07 2008-09 2011-12 2012-13 0.40 0.28 0.12
Central Excise Act 1944 Excise duty Appellate Authority upto Commissioner's level 2006-07 2007-08 2008-09 2009-2010 2010-11 2011-12 0.45

-

0.45
Finance Act 1994 Service Tax Appellate Authority upto Commissioner's level 2005-06 2016-17 0.39

-

0.39
Sales Tax Laws Sales Tax Asst. Commissioner commercial tax department 2011-12 0.12 0.05 0.07
Sales Tax Laws Sales Tax Rajasthan State Board 2011-12 0.28 0.28 -
Sales Tax Laws Sales Tax Appellate Authority upto Commissioner's level 1999-2000 2000-2001 2001-02 2002-03 2004-05 2007-08 2013-14 2016-17 1.36 0.44 0.92
Customs Tax Act 1962 Customs duty Customs Excise and Service Tax Appeallate Tribunal 2012-13 9.82 0.62 9.20
Customs Tax Act 1962 Customs duty Appellate Authority upto Commissioner's level 2012-13 and 2014-15 0.03 0.03

The following matters have been decided in favour of the Company although theDepartments have preferred appeal at higher levels.

Name of Statute Nature of Dues Forum where Dispute is pending Period to which the amount relates Amount involved (Rs. in crores)
Central Excise Act 1944 Excise High Court 2005-06 2008-09 2011-12 2012-13 5.21
Central Excise Act 1944 Excise Customs Excise and Service Tax Appellate Tribunal 2012-13 2013-14 2014-15 0.05
Central Excise Act 1944 Excise Up to Commissioner level 2005-06 2014-15 2015-162016-17 2017-18 0.91
Service Tax Service Tax Appellate Authority upto Commissioner's level 2015-16 0.01
Sales Tax Laws Sales Tax Supreme Court 2000-01 2003-04 17.05
Sales Tax Laws Sales Tax High Court 2005-06 2006-07 2007-08 0.85
Sales Tax Laws Sales Tax Rajasthan State Board 2011-12 -
Sales Tax Laws Sales Tax Appellate Authority upto Commissioner's level 2007-08 2015-16 0.02
Income Tax Act Income Tax High Court 2001-02 1.99

Also refer Note 36 to the financial statements.

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at thebalance sheet date.

ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments). In our opinion and according to theinformation and explanations given to us the moneys raised by way of term loans have beenapplied for the purposes for which they were obtained. Accordingly the provisions ofClause 3(ix) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

xi. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct. Also refer paragraph 17 of our main audit report.

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

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements (refer to Note 31 to thefinancial statements) as required under Indian Accounting Standard (Ind AS) 24 RelatedParty Disclosures specified under Section 133 of the Act.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Harinderjit Singh
Place: Gurugram Partner
Date: June 03 2020 Membership Number: 086994
UDIN: 20086994AAAAAP9664

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