To the Members of E.I.D. - Parry (India) Limited
Report on the Audit of the Standalone financial statements
1. We have audited the accompanying standalone financial statements ofE.I.D. - Parry (India) Limited ("the Company") which comprise the Balance Sheetas at March 31 2022 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.
2. In our opinion and to the best of our information and according tothe explanations 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 accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and total comprehensive income (comprising of profit and other comprehensive income)changes in equity and its cash flows for the year then ended.
Basis for opinion
3. We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the "Auditors'Responsibilities for the Audit of the Financial Statements" section of our report. Weare independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key audit matters
4. Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
|Key audit matter ||How our audit addressed the key audit matter |
|Impairment assessment of carrying value of Investment in Parry Sugars Refinery India Private Limited (PSRIPL) ||Our audit procedures included the following: |
|(Refer Note 5A to the standalone financial statements) || Understanding and evaluating the design and testing the operating effectiveness of key controls in relation to the impairment testing Model. |
|The Company's investment in PSRIPL a wholly owned subsidiary of the Company aggregates to ' 58371 Lakh as at March 31 2022. || Assessing the Model and evaluating the independence competence capabilities and objectivity of the management's valuer. |
|PSRIPL is engaged in the business of manufacture and sale of refined sugar. The carrying value of investment is greater than the net worth of the subsidiary as at March 31 2022 which is an indicator of potential impairment of the investment and accordingly an impairment assessment has been performed by the Management. || Assessing the historical accuracy of the Company's forecasts by comparing the forecasts used in the prior year models with the actual performance in the current year. |
|This is considered a key audit matter as the investment in PSRIPL is significant to the financial statements and management/ management expert judgement is required in certain key areas such as discount and terminal growth rates in estimating future cash flows prepared by the Company ("the Model") to support the carrying value of the investments. || Testing the mathematical accuracy of the underlying calculations and agreeing the forecasts for the ensuing year with the latest Board approved budgets. |
| || Evaluating along with the auditor's expert the key assumptions such as discount rate and terminal growth rate used in the Model. |
| || Performing sensitivity tests on the Model for a range of certain assumptions such as discount rate and terminal growth rate. |
| || Evaluating adequacy of the disclosures made in the financial statements. |
| ||Based on the procedure performed we did not identify any material exceptions in the impairment assessment carried out by the management in respect of the carrying value of its investment in PSRIPL. |
5. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board'sreport together with the annexure thereto Report on Corporate Governance and BusinessResponsibility and Sustainability Report but does not include the financial statements andour auditors' report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance forthe financial statements
6. 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 changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
7. In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Auditors' responsibilities for the audit of the financial statements
8. Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.
9. As part of an audit in accordance with SAs we exercise professionaljudgement 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors' report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors' report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
10. 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.
11. We also provide those charged with governance with a statement thatwe have 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.
12. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditors' Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act we give in the Annexure B a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
14. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the 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 (includingother comprehensive income) the Statement of Changes in Equity and the Statement of CashFlows dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure A".
(g) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (asamended) in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact if any of pending litigationson its financial position in its standalone financial statements - Refer Note 53 to thestandalone financial statements.
ii. The Company has long-term contracts including derivative contractsas at March 31 2022 for which there were no material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 312022.
iv. (a) The management has represented that to the best of itsknowledge and belief as disclosed in the notes to the accounts no funds 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(s) or entity(ies)including foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly 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 (Refer Note 65to the financial statements);
(b) The management has represented that to the best of its knowledgeand belief as disclosed in the notes to the accounts no funds have been received by theCompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries (Refer Note 65 to the financial statements); and
(c) Based on such audit procedures that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.
v. The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.
15. The Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Membership Number: 213126
Date: May 17 2022
ANNEXURE A TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 14(f) of the Independent Auditors' Report ofeven date to the members of E.I.D. - Parry (India) Limited on the standalone financialstatements as of and for the year ended March 31 2022
Report on the Internal Financial Controls with reference to financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference tofinancial statements of E.I.D. - Parry (India) Limited ("the Company") as ofMarch 31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
2. 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 ("the Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingdeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.
4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financialstatements
6. A company's internal financial controls with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.
Inherent Limitations of Internal Financial Controls with reference tofinancial statements
7. Because of the inherent limitations of internal financial controlswith reference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
8. In our opinion the Company has in all material respects anadequate internal financial controls system with reference to financial statements andsuch internal financial controls with reference to financial statements were operatingeffectively as at March 31 2022 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by ICAI.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Membership Number: 213126
Date: May 17 2022
ANNEXURE B TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 13 of the Independent Auditors' Report of evendate to the members of E.I.D. - Parry (India) Limited on the standalone financialstatements as of and for the year ended March 31 2022
i. (a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.
(B) The Company is maintaining proper records showing full particularsof Intangible Assets.
(b) The Property Plant and Equipment are physically verified by theManagement according to a phased programme designed to cover all the items over a periodof three years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme a portion of theProperty Plant and Equipment has been physically verified by the Management during theyear and no material discrepancies have been noticed on such verification.
(c) The title deeds of all the immovable properties (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) as disclosed in Note 2 3 and 14 to the standalone financialstatements are held in the name of the Company except for the following:
|Description of property ||Gross carrying value ( ' Lakh) ||Held in the name of ||Whether promoter director or their relative or employee ||Period held - indicate range where appropriate ||Reason for not being held in the name of the Company |
|Flat No. MA1/4A and MA1/4D situated at Garden Estate Gurugram Haryana ||22 ||Director Town and Country Planning Haryana State Government of Haryana ||No ||25 Years ||The Company is in the process of registering the said flats in its name. The Flats could not be registered due to a dispute of the Builder with the Haryana Government towards payment of development charges. |
As referred to in Note 2 to the standalone financial statements theCompany had carried out Name change/Various mergers/amalgamations across various years.Pursuant to these actions the Company holds certain immovable properties wherein thetitle of the property has been conveyed/transferred to the Company pursuant to such schemeof amalgamation/ arrangement and the management has represented that these are consideredas valid title to the immovable property and no further actions are necessary.
Immovable properties of land and buildings whose title deeds have beenpledged as security for loans guarantees etc. are held in the name of the Company as perthe Memorandum of Entry executed by the Company and confirmed by the banker as on thebalance sheet date.
(d) The Company has chosen a cost model for its Property Plant andEquipment (including Right of Use assets) and intangible assets. Consequently thequestion of our commenting on whether the revaluation is based on the valuation by aRegistered Valuer or specifying the amount of change if the change is 10% or more in theaggregate of the net carrying value of each class of Property Plant and Equipment(including Right of Use assets) or intangible assets does not arise.
(e) Based on the information and explanations furnished to us noproceedings have been initiated on (or) are pending against the Company for holding benamiproperty under the Prohibition of Benami Property Transactions Act 1988 (as amended in2016) (formerly the Benami Transactions (Prohibition) Act 1988 (45 of 1988)) and Rulesmade thereunder and therefore the question of our commenting on whether the Company hasappropriately disclosed the details in its financial statements does not arise.
ii. (a) The physical verification of inventory has been conducted atreasonable intervals by the Management during the year and in our opinion the coverageand procedure of such verification by Management is appropriate. The discrepancies noticedon physical verification of inventory as compared to book records were not 10% or more inaggregate for each class of inventory.
(b) During the year the Company has been sanctioned working capitallimits in excess of ' 5 crores in aggregate from banks on the basis of security ofcurrent assets. The Company has filed quarterly returns or statements with such bankswhich are not in agreement with the unaudited books of account as set out below:
(Amount in Lakh)
|Name of the Bank / Financial Institution ||Aggregate working capital limits sanctioned ||Nature of Current Asset offered as Security ||Quarter ended ||Amount disclosed as per quarterly return / statement ||Amount as per books of account ||Difference ||Reasons for Difference |
|State Bank of India ||55000 ||Stocks and Receivables ||June 30 2021 ||86172 ||81664 ||4508 ||Refer below |
|State Bank of India ||55000 || ||September 30 2021 ||79430 ||75003 ||4427 || |
|State Bank of India ||55000 || ||December 31 2021 ||91099 ||84196 ||6903 || |
|State Bank of India ||55000 || ||March 31 2022 ||120929 ||109603 ||11326 || |
The Company has valued the sugar stock included in the stock statementsubmitted to the bank as per the method prescribed in the RBI Circular.
(Also refer Note 63 to the standalone financial statements)
iii. (a) The Company has made investment in one joint venture companyinvestment in various mutual funds stood guarantee to one subsidiary company grantedloan to one subsidiary company and granted advances in the nature of loans to 1125 otherparties (advances to employees). The aggregate amount during the year and balanceoutstanding at the balance sheet date with respect to such guarantee loans and advancesin the nature of loans to subsidiaries and other parties are as per the table given below:
(Amount in Lakh)
| ||Guarantees ||Loans ||Advances in nature of loans |
|Aggregate amount granted/ provided during the year || || || |
|- Subsidiary ||7579 ||150 || |
|- Others ||- ||- ||1177 |
|Balance outstanding as at balance sheet date in respect of the above case || || || |
|- Subsidiary ||7579 ||- ||- |
|- Others ||- ||- ||218 |
(Also refer Note 9 51 and 53 to the standalone financial statements)
(b) In respect of the aforesaid investments guarantees and advances inthe nature of loans the terms and conditions under which such investments weremade/guarantees provided/advances in the nature of loan granted are not prejudicial to theCompany's interest.
(c) In respect of the loans/advances in nature of loans the scheduleof repayment of principal and payment of interest has been stipulated and the parties arerepaying the principal amounts as stipulated and are also regular in payment of interestas applicable.
(d) In respect of the loans/advances in nature of loans there is noamount which is overdue for more than ninety days.
(e) There were no loans /advances in nature of loans which fell dueduring the year and were renewed/extended. Further no fresh loans were granted to thesame parties to settle the existing overdue loans/advances in nature of loan.
(f) The advances in nature of loans granted during the year includingto related parties had stipulated the scheduled repayment of principal and the same werenot repayable on demand.
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of the loans and investments made and guarantees andsecurity provided by it.
v. The Company has not accepted any deposits or amounts which aredeemed to be deposits within the meaning of Sections 73 74 75 and 76 of the Act and theRules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India theCompany is required to maintain cost records as specified under Section 148(1) of the Actin respect of its products. We have broadly reviewed the same and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havenot however made a detailed examination of the records with a view to determine whetherthey are accurate or complete.
vii. (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is generallyregular in depositing the undisputed statutory dues in respect of goods and services taxprovident fund and professional tax though there has been a delay in a few cases and isregular in depositing undisputed statutory dues including employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added taxcess and other material statutory dues as applicable with the appropriate authorities.Also refer Note 29 to the standalone financial statements regarding management'sassessment on certain matters relating to the provident fund.
(b) According to the information and explanations given to us and therecords of the Company examined by us the particulars of statutory dues referred to insub-clause (a) as at March 31 2022 which have not been deposited on account of a disputeare as follows:
|Name of the statute ||Nature of dues ||Amount (In Lakh)* ||Period to which the amount relates ||Forum where the dispute is pending |
|The Finance Act 1994 ||Service Tax ||173 ||2005-06 to 2016-17 ||Customs Excise and Service Tax Appellate Tribunal / Commissioner (Appeals) |
|The Central Excise Act 1944 ||Excise Duty ||964 ||1977-78 2006-2017 ||Commissioner / Commissioner (Appeals) / CESTAT |
|Sales Tax Act of various states / Central Sales Tax Act 1956 ||Sales Tax ||170 ||1981-2016 ||Deputy Commissioner/Joint Commissioner / Tribunal / Honorable High Court / Honorable Supreme Court |
|Tamil Nadu Tax on Entry of Goods into Local Areas Act 2001 ||Entry Tax ||94 ||2003-2005 ||Honorable High Court |
|Income Tax Act 1961 ||Income Tax dues ||10386 ||2004 to 2019 ||Income Tax Appellate Tribunal / Commissioner (Appeals) / Honorable High Court |
|Electricity Act 2003 ||Electricity tax dues ||2287 ||2004 to 2019 ||AP Electric Regulation Commission / Appellate Tribunal for Electricity / Honorable Supreme Court |
|Karnataka Irrigation (Levy of Betterment Contribution) Rules 1964 ||Water tariff dues ||36 ||2017-19 ||Honorable High Court |
|Indian Stamp (Madhya Pradesh Amendment) Act 1958 ||Stamp Duty ||35 ||1999-00 ||Collector of Stamps |
|Rajasthan Stamp Act 1998 ||Stamp Duty ||90 ||1994 ||Honorable High Court |
*net of amount paid under protest
viii. According to the information and explanations given to us and therecords of the Company examined by us there are no transactions in the books of accountthat has been surrendered or disclosed as income during the year in the tax assessmentsunder the Income Tax Act 1961 that has not been recorded in the books of account.
ix. (a) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest to any lender during the year.
(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declared WilfulDefaulter by any bank or financial institution or government or any government authority.
(c) In our opinion and according to the information and explanationsgiven to us the term loans have been applied for the purposes for which they wereobtained. (Also refer Note 18 to the standalone financial statements)
(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.
(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries or joint venture.
(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 subsidiaries or joint venture.
x. (a) The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglythe reporting under clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or privateplacement of shares or fully or partially or optionally convertible debentures during theyear. Accordingly the reporting under clause 3(x)(b) of the Order is not applicable tothe Company.
xi. (a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company noticed orreported during the year nor have we been informed of any such case by the Management.
(b) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us a report underSection 143(12) of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 was not required to be filed with the Central Government.Accordingly the reporting under clause 3(xi)(b) of the Order is not applicable to theCompany.
(c) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us the Company hasreceived whistle-blower complaints during the year which have been considered by us forany bearing on our audit and reporting.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the reporting under clause 3(xii) of the Order is not applicableto the Company.
xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Indian Accounting Standard (Ind AS) 24 - "Related Party Disclosures"specified under Section 133 of the Act.
xiv. (a) In our opinion and according to the information andexplanation given to us the Company has an internal audit system commensurate with thesize and nature of its business.
(b) The reports of the Internal Auditor for the period under audit havebeen considered by us.
xv. The Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly the reporting on compliance with theprovisions of Section 192 of the Act under clause 3(xv) of the Order is not applicable tothe Company.
xvi. (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly the reporting under clause3(xvi)(a) of the Order is not applicable to the Company.
(b) The Company has not conducted non-banking financial / housingfinance activities during the year. Accordingly the reporting under clause 3(xvi)(b) ofthe Order is not applicable to the Company.
(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly the reporting under clause3(xvi)(c) of the Order is not applicable to the Company.
(d) Based on the information and explanations provided by themanagement of the Company the Group has 2 CICs as part of the Group as detailed in Note61 to the standalone financial statements. We have not however separately evaluatedwhether the information provided by the management is accurate and complete.
xvii. The Company has not incurred any cash losses in the financialyear or in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors duringthe year and accordingly the reporting under clause (xviii) is not applicable.
xix. According to the information and explanations given to us and onthe basis of the financial ratios (Also refer Note 64 to the standalone financialstatements) ageing and expected dates of realisation of financial assets and payment offinancial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatCompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by the Companyas and when they fall due.
xx. Matters specified in clause (xx) of paragraph 3 of the CARO 2020does not apply to the Company.
xxi. The reporting under clause 3(xxi) of the Order is not applicablein respect of audit of Standalone Financial Statements. Accordingly no comment in respectof the said clause has been included in this report.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Membership Number: 213126
Date: May 17 2022