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Eveready Industries India Ltd.

BSE: 531508 Sector: Consumer
NSE: EVEREADY ISIN Code: INE128A01029
BSE 00:00 | 10 Aug 368.05 12.15
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NSE 00:00 | 10 Aug 372.70 17.85
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OPEN 355.45
PREVIOUS CLOSE 355.90
VOLUME 46805
52-Week high 413.30
52-Week low 255.45
P/E 70.10
Mkt Cap.(Rs cr) 2,675
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 355.45
CLOSE 355.90
VOLUME 46805
52-Week high 413.30
52-Week low 255.45
P/E 70.10
Mkt Cap.(Rs cr) 2,675
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Eveready Industries India Ltd. (EVEREADY) - Auditors Report

Company auditors report

To the Members of Eveready Industries India Limited

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying standalone financial statements of EvereadyIndustries India Limited ("the Company") which comprise the balance sheetas at March 31 2022 the statement of profit and loss (including the statement of othercomprehensive income) the cash flow statement and the statement of changes in equity forthe year then ended and notes to the standalone financial statements including a summaryof significant accounting policies and other explanatory information (The"standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022its profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statements'section of our report. We are independent of the Company in accordance with the ‘Codeof Ethics' issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the Standalone FinancialStatements under the provisions of the Act and the Rules there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the StandaloneFinancial Statements.

Emphasis of Matter

We draw attention to Note 33.1 to the standalone financial statementswhich relates to the penalty of Rs. 17155.00 Lakhs levied by the Competition Commissionof India for non-compliance with provisions of the Competition Act 2002 against which anappeal has been filed by the Company with the National Company Law Appellate Tribunal NewDelhi. As per legal advice obtained by the Company the amount of penalty cannot bereliably estimated at this stage owing to the uncertainty of the future outcome of thelitigation. Accordingly no provision has been made and the same has been disclosed ascontingent liability. Our opinion is not modified 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 for thefinancial year ended March 31 2022. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

Descriptions of Key Audit Matter How we addressed the matter in our audit
A. Valuation of inventories (Refer to note 2.15 & 10 to the standalone financial statements).
The Company is having Inventory of Rs. 24071.74 Lakhs as on March 31 2022. Inventories are to be valued as per Ind AS 2. As described in the accounting policies in note 2.15 to the standalone financial statements inventories are carried at the lower of cost and net realisable value. We obtained assurance over the appropriateness of the management's assumptions applied in calculating the value of the inventories and related provisions by:
Further the management applies judgment in determining the appropriate provisions against inventory of Stores Raw Material Finished goods and Work in progress based upon a detailed analysis of old inventory net realisable value below cost based upon future plans for sale of inventory • Completed a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk.
• Verifying the effectiveness of key inventory controls operating over inventories; including sample based physical verification.
• Reviewing the document and other record related to physical verification of inventories done by the management during the year.
• Verifying for a sample of individual products that costs have been correctly recorded.
• Comparing the net realisable value to the cost price of inventories to check for completeness of the associated provision.
• Reviewing the historical accuracy of inventory provisioning and the level of inventory write-offs during the year. Also Reviewing the estimate and basis of provision made on specific inventories.
• Recomputing provisions recorded to verify that they are in line with the Company policy.
Our Conclusion:
Based on the audit procedures performed we did not identify any material exceptions in the Inventory valuation
B. Revenue Recognition (Refer to note 2.4 & 24 to the standalone financial statements).
Revenue is one of the key profit drivers and is therefore susceptible to misstatement. Cut-off is the key assertion in so far as revenue recognition is concerned since an inappropriate cut-off can result in material misstatement of results for the year. Revenue is recognized when the control of the underlying products has been transferred to customer along with the satisfaction of the Company's performance obligation under a contract with customer. Terms of sales arrangements including the timing of transfer of control delivery specifications including Incoterms in case of exports timing of recognition of sales require significant judgment in determining revenues. The risk is therefore that revenue may not get recognised in the correct period. As part of our audit we understood the Company's policies and processes control mechanisms and methods in relation to the revenue recognition estimation of discounts and incentive and provision for warranty and evaluated the design and operative effectiveness of the financial controls for the above through our test of control procedures.
Due to the Company's presence across different marketing regions within the country and the competitive business environment the estimation of the various types of discounts and incentive schemes to be recognised based on sales made during the year is material and considered to be complex and judgmental. • Our audit procedures with regard to revenue recognition included testing controls automated and manual around dispatches/deliveries inventory reconciliations and circularization of receivable balances substantive testing for cut-offs and analytical review procedures.
Further the Company provides warranty for sale of its products. The estimation of costs (of repairing and replacing the product which is ascertained to be faulty) in respect of future warranty claims requires application of significant judgement. The provision for warranty is computed based on sales volume and historical information about product failures (and consequential repairs and returns) adjusted for the key developments occurring during the year which may affect the liability. • Performing procedures to ensure that the revenue recognition criteria adopted by Company for all major revenue streams is appropriate and in line with the Company's accounting policies.
Due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ‘Revenue from contracts with customers ‘and the judgments and estimates involved in making the estimation of discounts and incentive and provision for warranty we determined the recognition of revenue estimation of discounts and incentive and provision against warranty as a key audit matter. • Obtaining and inspecting on a sample basis supporting documentation for discounts incentives and rebates recorded and disbursed during the year as well as credit notes issued after the year end to determine whether these were recorded appropriately.
• Our audit procedures included among other things the evaluation of the process to calculate the provision for product warranties and the evaluation of the relevant assumptions and their derivation for the measurement of the provisions.
• Based on historical data used by the Company to estimate its provisions for product warranties we assessed the permanence of methods used the relevance and reliability of underlying data and calculations applied.
• We also compared costs incurred to the previously recognized provisions to assess the quality of the management estimates. Based on the evidence obtained we concluded that management's process for identifying and quantifying warranty provisions was appropriate and that the resulting provision was reasonable.
• Performed procedures to identify any unusual trends of revenue recognition.
• Traced disclosure information to accounting records and other supporting documentation.
Our Conclusion:
Based on the audit procedures performed we did not identify any material exceptions in the revenue recognition estimation of discounts and incentive and provision against warranty.

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

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the Standalone Financial Statementsand 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. Inconnection with our audit of the Standalone Financial Statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.

Managements' Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue 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. Those charged with governanceare also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a 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 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 standalonefinancial system in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of 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'sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation. Materiality is the magnitude of misstatements in theStandalone Financial Statements that individually or in aggregate makes it probable thatthe economic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin

(i) planning the scope of our audit work and in evaluating the resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in theStandalone 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 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.

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 precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2020("the Order") issued by the Central Government of India in terms of subsection(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. 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 including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity 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. read withCompanies (Indian Accounting Standards) Rules 2015 as amended from time to time;

(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 are disqualified as on March 31 2022 from being appointed as a director interms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B".

(g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirement of section 197(16) of the Act: Inour opinion the managerial remuneration for the year ended March 31 2022 has been paid/provided by the Company to its directors in accordance with the provisions of section 197read with Schedule V to the Act; and

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:

I. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements – Note 33.1 to theStandalone Financial Statements;

II. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as on March312022;

III. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

IV. (a) The management has represented to us that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the company toor in any other person(s) or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The management has represented to us that to the best of itsknowledge and belief no funds have been received by the company from any person(s) orentities including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and

(c) Based on our audit procedures that are considered reasonable andappropriate 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 paragraph 2(h) (iv)(a) &(b) above contain any material mis-statement.

V. The Company has not declared any dividend in previous financial yearwhich has been paid in current year. Further no dividend has been declared in currentyear. Accordingly the provision of section 123 of the Act is not applicable to thecompany.

For Singhi & Co.
Chartered Accountants
Firm Registration Number: 302049E
(Navindra Kumar Surana)
Partner
Place: Kolkata Membership Number: 053816
Date: April 25 2022 UDIN: 22053816AHTGYR2238

Annexure A to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of the Company of evendate)

i. a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

(a) (B) The Company has maintained proper records showing fullparticulars of intangibles assets.

(b) The property plant and equipment were physically verified duringthe year by the Management in accordance with a regular programme of verification whichin our opinion provides for physical verification of all the property plant andequipment at reasonable intervals. According to the information and explanation given tous no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties are held in thename of the Company.

(d) The Company has not revalued its Property Plant and Equipment(including Right of use assets) or intangible assets during the year ended March 31 2022.

(e) According to information and explanations given to us and on thebasis of our examination of the records of the Company there are no proceedings initiatedor are pending against the Company for holding any benami property under the Prohibitionof Benami Property Transactions Act 1988 and rules made thereunder.

ii. (a) The management has conducted physical verification of inventory(excluding inventories in transit) at reasonable intervals during the year anddiscrepancies is less than 10% in aggregate for each class of inventory. In our opinionthe frequency of verification by the management is reasonable and the coverage andprocedure for such verification is appropriate.

(b) The Company has been sanctioned working capital limits in excess ofRs. five crores in aggregate from banks and/or financial institutions during the year onthe basis of security of current assets of the Company. The quarterly returns/statementsfiled by the Company with such banks and financial institutions are in agreement with thebooks of accounts of the Company.

iii. (a) to (d) and (f) According to the information and explanationsgiven to us and on the basis of our examination of the records of the Company the Companyhas not made any investments provided guarantee or security or granted any loans oradvances in the nature of loans secured or unsecured to companies firms limitedliability partnerships or any other parties during the year. Accordingly provisions ofclauses 3(iii)(a) to 3(iii) (d) & (f) of the Order are not applicable to the Company.

(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there is no loan or advance inthe nature of loan granted falling due during the year which has been renewed or extendedor fresh loans granted to settle the overdue of existing loans given to same parties.

iv. In our opinion and according to the information and explanationsgiven to us there are no loans investments guarantees and security has been made/provided by the company during the year in respect of which provisions of sections 185and 186 of the Companies Act 2013 are applicable and accordingly the requirement toreport on clause 3(iv) of the Order is not applicable to the Company.

v. The Company has neither accepted any deposits from the public noraccepted any amounts which are deemed to be deposits within the meaning of sections 73 to76 of the Companies Act and the rules made thereunder to the extent applicable.Accordingly the requirement to report on clause 3(v) of the Order is not applicable tothe Company.

vi. We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the manufacture ofglassware and are of the opinion that prima facie the specified accounts and recordshave been made and maintained. We have not however made a detailed examination of thesame.

vii. (a) According to the information and explanations given to us andthe records of the Company examined by us the Company is generally regular in depositingwith appropriate authorities undisputed statutory dues including goods and services taxprovident fund employees' state insurance income-tax sales-tax service tax dutyof customs and other statutory dues applicable to it. According to the information andexplanations given to us and based on audit procedures performed by us no undisputedamounts payable in respect of these statutory dues were outstanding at the year end fora period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and therecords of the Company examined by us the statutory dues related to goods and servicestax provident fund employees' state insurance sales-tax service tax duty ofcustom duty of excise value added tax cess and other statutory dues have not beendeposited on account of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs. In Lakhs) Period to which the amount relates Forum where the dispute is pending
The Uttar Pradesh Value Added Tax Act 2008 Value Added Tax 0.68 2015-2016 Additional Commissioner of Commercial Tax (Appeals)
Central Sales Tax Act 1956 Sales Tax 0.35 1998-1999 Additional Commissioner of Commercial Tax
The Orissa Sales Tax Act 1947 Sales Tax 0.10 1999-2000 Asst. Commissioner of Commercial Tax (Appeals)
Central Sales Tax Act 1956 Sales Tax 6.09 2001-2002 Asst. Commissioner of Commercial Tax
The Kerala General Sales Tax Act 1963 Sales Tax 4.52 2000-2001 to 2002-2003 Asst. Commissioner of Commercial Tax
Bihar Finance Act 1981 Sales Tax 0.80 2005-2006 Asst. Commissioner of Commercial Tax
The Uttar Pradesh Value Added Tax Act 2008 Value Added Tax 13.79 2011-2012 Commercial Tax Appellate Tribunal
West Bengal Value Added Tax Act 2003 Value Added Tax 1.27 2013-2014 Joint Commissioner of Commercial Tax
Karnataka Tax on Entry of Goods Act 1979 Entry Tax 15.10 1994-1995 to 1997-1998 CESTAT Bangalore
The Uttar Pradesh Tax on Entry of Goods Act 2000 Entry Tax 3.60 2005-2006 Joint Commissioner of Commercial Tax (Appeals)
CGST & SGST Act 2017 Goods & Service Tax 11.82 2017-2018 Commissioner of Central Tax (Appeals)
CGST & SGST Act 2017 Goods & Service Tax 30.95 2017-2018 2018-2019 Goods & service Tax Appellate Tribunal
Customs Act 1962 Customs Duty 31.31 2005-2006 High Court Calcutta
Customs Act 1962 Customs Duty 9.80 2017-2018 Commissioner of Customs (Appeals)
Central Excise Act 1944 Excise Duty 1496.53 1997-1998 to 2003-2004 High Court of Lucknow
Central Excise Act 1944 Excise Duty 457.79 2010-2011 to 2013- 2014 2014-2015 to 2015-2016 2006-2007 to 2017-2018 2012- 2013 to 2016-2017 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty 88.52 1997-1998 to 2000- 2001 2004-2005 to 2005-2006 2014-2015 2015-2016 to 2017-2018 Commissioner of Central Excise (Appeals)
Central Excise Act 1944 Excise Duty 43.57 1996-1997 to 1997- 1998 2007-2008 to 2008-2009 Asst. Commissioner of Central Excise
Finance Act 1994 Service tax 35.60 2012-2013 to 2015- 2016 2009-2010 to 2012- 2013 Customs Excise & Service Tax Appellate Tribunal
The Employees State Insurance Act 1948 Employees State Insurance 33.00 2001-2003 Employee State Insurance Court
The Employees State Insurance Act 1948 Employees State Insurance 0.23 June 2000 to March 2003 Employee State Insurance Court

viii. The Company has not surrendered or disclosed any transactionpreviously unrecorded in the books of account in the tax assessments under the Income TaxAct 1961(43 of 1961) as income during the year. Accordingly the requirement to report onclause 3(viii) of the Order is not applicable to the Company.

ix. (a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender.

(b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.

(c) In our opinion and according to the information and explanationsgiven to us by the management term loans were applied for the purpose for which the loanswere obtained.

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

(e) 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 associates or joint ventures as defined under Companies Act 2013.

(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 joint ventures or associatecompanies (as defined under Companies Act 2013).

x. (a) The Company has not raised any money during the year by way ofinitial public offer / further public offer (including debt instruments) hence therequirement to report on 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 /fully or partially or optionally convertible debentures during theyear under audit and hence the requirement to report on clause 3(x)(b) of the Order isnot applicable to the 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 According to the information and explanations given to us no reportunder sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 asprescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment during the year and up to the date of this report.

(c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year. xii. (a)(b)(c) The Company is not aNidhi Company as per the provisions of the Companies Act 2013. Therefore the requirementto report on clause 3(xii)(a) (b) & (c) of the Order is not applicable to the Company.

xiii. In our opinion and according to the information and explanationsgiven to us transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standards.

xiv. (a) In our opinion and based on our examination the company hasan internal audit system commensurate with the size and nature of its business.

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

xv. In our opinion during the year the Company has not entered into anynon-cash transactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. (a) The provisions of section 45-IA of the Reserve Bank of IndiaAct 1934 (2 of 1934) are not applicable to the Company. Accordingly the requirement toreport on clause (xvi)(a) of the Order is not applicable to the Company.

(b) The Company has not conducted any Non-Banking Financial or HousingFinance activities without obtained a valid Certificate of Registration (CoR) from theReserve Bank of India as per the Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company as defined in theregulations made by Reserve Bank of India. Accordingly the requirement to report onclause 3(xvi)(c) of the Order is not applicable to the Company.

(d) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred cash losses in the current financialyear. In the immediately preceding financial year the Company had not incurred cashlosses.

xviii. There has been no resignation of the statutory auditors duringthe year and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company.

xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

xx. (a) In our opinion and according to the information andexplanations given to us in respect of other than ongoing projects there are no unspentamounts that are required to be transferred to a fund specified in Schedule VII of theCompanies Act (the Act) in compliance with second proviso to sub section 5 of section 135of the Act.

(b) In our opinion and according to the information and explanationsgiven to us there are no unspent amounts in respect of ongoing projects that arerequired to be transferred to a special account in compliance of provision of sub section(6) of section 135 of Companies Act.

xxi. The report of the following components incorporated in Indiaincluded in the consolidated financial statements has not been provided to us by itsauditor till the date of our auditor's report. The consolidation financial statementshave been prepared based on the management certified financial statements of thesecomponents.

SL Name CIN Subsidiary/ Associate
1 Greendale India Limited U15100WB2011PLC162493 Subsidiary
2 Preferred Consumer Products Private Limited U15549WB2018FTC226421 Associate
For Singhi & Co.
Chartered Accountants
Firm Registration Number: 302049E
(Navindra Kumar Surana)
Partner
Place: Kolkata Membership Number: 053816
Date: April 25 2022 UDIN: 22053816AHTGYR2238

Annexure B to the Independent Auditor's Report

(Referred to in paragraph 2 (f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of even date) Report onthe Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls with reference tostandalone financial statements of Eveready Industries India Limited ("theCompany") as of March 31 2022 in conjunction with our audit of the StandaloneFinancial Statements of the Company for the year 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to standalonefinancial statements was established and maintained and if such controls operatedeffectively in all material respects. An audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls with reference tostandalone financial statements and their operating effectiveness. Our audit of internalfinancial controls with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to standalone financialstatements 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 judgement including the assessment ofthe risks of material misstatement of the Standalone Financial Statements whether due tofraud 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 internalfinancial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalonefinancial statements

A company's internal financial control with reference tostandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of standalonefinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control with reference tostandalone financial statements includes those policies and procedures 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 asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference tostandalone financial statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls with reference to standalone financial statements and such internalfinancial controls with reference to standalone 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 on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For Singhi & Co.
Chartered Accountants
Firm Registration Number: 302049E
(Navindra Kumar Surana)
Partner
Place: Kolkata Membership Number: 053816
Date: April 25 2022 UDIN: 22053816AHTGYR2238

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