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Gammon India Ltd.

BSE: 509550 Sector: Infrastructure
NSE: GAMMONIND ISIN Code: INE259B01020
BSE 00:00 | 10 Sep Gammon India Ltd
NSE 05:30 | 01 Jan Gammon India Ltd
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VOLUME 142636
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OPEN 1.40
CLOSE 1.45
VOLUME 142636
52-Week high 1.54
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 54
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gammon India Ltd. (GAMMONIND) - Auditors Report

Company auditors report

To the Members of Gammon India Limited

Report on the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying Standalone financial statements of Gammon IndiaLimited ("the Company") which comprise the Balance Sheet as at March 312020 the Statement of Profit and Loss including Other Comprehensive Income the Statementof Cash Flow and Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in Basis of QualifiedOpinion paragraph (a) to (d) the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("Act") in the manner so requiredand give a true and fair view in conformity with the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 and its loss(financial performance including other comprehensive income) itscash flows and thechanges in equity for the year ended on that date

Basis of Qualified Opinion

(a) We invite attention to note no. 7 of the financial statement detailing therecognition of claims during the earlier years in respect of on-going completed and/orterminated contracts. The aggregate amount of claims outstanding as at March 31 2020 isRs 894.41 crores. These claims were recognised only on the basis of opinion of an expertin the field of claims and arbitration. There are no further updates from the expertexcept that we are informed the arbitrations are in progress. In view of theabove-mentioned circumstances and facts we are unable to comment upon the amountsrecognised its realisation and the consequent effect on the financial statements for theyear ended March 31 2020.

(b) We invite attention to note no. 4(a)(iii) of the financial statement relating toTrade receivables inventories and loans and advances which includes an amount of Rs364.44 crores in respect of disputes in six projects of the Company and/or its SPVs. TheCompany is pursuing legal recourse/ negotiations for addressing the disputes in favour ofthe Company. Pending the conclusion of the matters we are unable to state whether anyprovisions would be required against the Company's exposure.

(c) We invite attention to note no. 5 (vii) of the financial statement relating to theengaged in real estate development in Bhopal. The Company has on prudent basis made aprovision of Rs 100 crores against the exposure of Rs 325.60 crores. The Subsidiary'saudited financials are also not available for our review and also the management has notcarried out any exercise of determining the realisable value. Hence in the absence of anyindicators of value arising out of the project and its financial stability we are unableto state whether any further provision is required towards the balance exposure of Rs225.60 crores.

(d) We invite attention to note no 27 of the financial statement relating to penalinterest and charges ofRs 61.23 crores during the year charged by the lenders on itsfacilities. Total amount of penal interest amount to Rs 179.93 Crores up to March 312020. The same has not been debited to profit and loss account as management is disputingthe same and in discussion with the lenders for reversal of the said penal interest andcharges. In the absence of conclusion of the aforesaid discussion we are unable to statewhether any provision is required to be made against such penal interest and charges. toinventory of material at construction

(e) Weattentiontonoteno.8(a)ofthefinancial sites amounting to Rs 38.92 Cores where theCompany has not carried out exercise of physical verification of inventory due to theCovid-19 Pandemic hence in absence of any confirmation of physical verification ofinventory we are unable to comment upon availability and realisation of inventory.

Material Uncertainty Related to Going Concern

We invite attention to the note no. 37 of the Financial Statement relating to thepresent financial situation of the Company detailing the Material Uncertainties Relatingto Going Concern and the Going Concern assumptions. The lenders had in the previous yearrecalled all the loans and facilities and also the Company Current Liabilities exceedsCurrent Assets by Rs 7070.41 Crore. The Company is finding it difficult to meet itsfinancial obligations and the lenders have still not approved its further restructuringThe liquidity crunch is affecting the Company's operation with increasing severity.Further due to the issues detailed in the note no 37 of the Financial Statement theCompany has continuously delayed the preparation of the financial statements andsubmissions to the stock exchanges as per the timelines of the listing agreement. Thetrading in the equity shares of the Company is presently suspended. Some of the creditorshave filed for winding up petitions against the Company. The company has severe manpowerissues and is defaulting on its statutory and regulatory obligations. The issues as statedabove and in note no 37 of the Financial Statement including but not limited to theMaterial uncertainties involved in the restructuring and resolution plans forming thebasis of the Going Concern assumption indicates material uncertainties that may castsignificant doubt about the Going Concern Assumption. Our report is not qualified on thisaccount.

Emphasis of Matter

Without qualifying our opinion we draw attention to the following matters; a) We drawattention to Note no 4(a)(i) & 4(a)(ii) relating to recoverability of an amount of Rs235.77 crores as at March 31 2020 under trade receivables in respect of contract revenuewhere the Company has received arbitration awards in its favour in respect of which theclient has preferred an appeal for setting aside the said arbitration awards recognitionof claims while evaluating the jobs of Rs 7.56 crores where the Company is confident ofrecovery. The recoverability is dependent upon the final outcome of the appeals &negotiations getting resolved in favour of the company. b) We draw attention to Note4(a)(iv) relating to the projects of real estate sector where the exposure is Rs 44.51crores. The management is confident of ultimate recovery of the amounts and we have reliedon the management assertions of recoverability.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. Apart from what is mentioned in our paragraph titledBasis of Qualified Opinion and paragraph titled Material Uncertainty related to GoingConcern there are no other matters described to be the key audit matters to becommunicated in our report.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the Other Information. The"Other Information" comprises the information included in the Annual Report butdoes not include the Standalone Financial Statements and our Independent Auditors' Reportthereon. The Other Information as aforesaid is expected to be made available to us afterthe date of this Auditor's Report. Our opinion on the Standalone Financial Statements doesnot cover the Other Information and we do not express any form of assurance or conclusionthereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the Other Information identified above and in doing so consider whether theOther Information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the "Other Information" which will be made available to us afterthe date of this report if we conclude that there is a material misstatement therein weare required to communicate the matter to those charged with governance and takeappropriate actions in accordance with the Standards on Auditing.

Responsibilities of Management and those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant tothepreparation financialstatements that give a true and fairview and are free from presentationofthe material misstatement whether due to fraud orerror.

In preparing the standalone 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. The Board of Directors is also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are 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 standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit we also:

1. Identify and assess the risks of material misstatement of the standalone 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.

2. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists relatedtoeventsorconditionsthatmaycastsignificantdoubt on the Company's ability tocontinue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thefinancial modify our opinion. Our conclusions are based on the audit evidence obtained upto the date of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of the standalone financialwhether the standalone financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financialstatementsthat individually or in aggregate make it probable that the economic decisions of areasonably knowledgeableuserofthefinancialstatementsmaybeinfluenced.We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements We communicate with those chargedwith governance regarding among other matters the planned scope and timing of the auditand significant audit findings including any significant deficiencies in internal controlthat we identify during our audit. We also provide those charged with governance with astatement that we have complied with relevant ethical requirements regarding independenceand to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of thefinancialstatements of thecurrent period and are therefore the Key Audit Matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement onthemattersspecifiedin paragraphs 3 and4 of the said Order.

2. As required by section 143 (3) of the Act we report that:

(a) we have sought and except for the possible effects of the matter described in Basisof QualifiedOpinion paragraph obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit (b) In ouropinion except for the possible effects of the matter described QualifiedOpinion paragraphproper Basisof books of account as required by law have been kept by the Company so far asit appears from our examination of those books (c) The Balance Sheet the Statement ofProfit and Loss including Other Comprehensive Income the Cash Flow Statement andStatements of Changes in Equity dealt with by this Report are in agreement with the booksof account (d) In our opinion except for the possible effects of the matter described inBasis of Qualified Opinion paragraph the Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rulesthereon (e) The matters described in paragraphs under the Basis for Qualified Opinion andEmphasis of Matter paragraph and Qualified Opinion paragraph of Annexure B to this reportin our opinion may have an adverse effect on the functioning of the Company (f) On thebasis of written representations received from the directors as on March 31 2020 andtaken on record by the Board of Directors all the directors are disqualified as on March31 2020 from being appointed as a director in terms of section 164(2) of the Act exceptfor Ms. Vinath Hegde

(g) The matters described in our Basis of Qualified Opinion paragraph and the paragraphon Material Uncertainty related to Going Concern may have an adverse impact on themaintenance of accounts and other matters connected therewith. (h) With respect to theadequacy of the internal financial controls with reference to financial statements of theCompany and the operating effectiveness of such controls refer to our separate report in"Annexure B" (i) In our opinion the managerial remuneration for the year endedMarch 31 2020 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act. And (j) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its financial position in its financial statements -Refer Note 33 to the financial statements ii. The Company has provided for all materialforeseeable losses arising out of long-term contracts including derivative contracts iii.The Company has to transfer amount of Rs 0.54 crores to the Investor Education andProtection Fund during the year.

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No.107023W
K N Padmanabhan
Partner
Membership No. 36410
Mumbai Dated: August 14 2020
UDIN: 20036410AAAACK7473

Annexure A to the Independent Auditor's Report

Referred to in clause 1 of paragraph under "Report on Other Legal and RegulatoryRequirements" of our report of even date

(i) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of its Property Plant & Equipment.

(b) Property Plant & Equipment have been physically verified by the managementduring the period at reasonable intervals and no material discrepancies were identified onsuch verification except assets at some of their terminated sites where the access to theassets are presently prohibited and the matter is under dispute. The total value of assetsat such sites is Rs 10.22 crores (Net WDV).

(c) We are informed by the management that all the title deeds of immovable propertiesare in custody of IDBI trusteeship Services Limited as part of Corporate DebtRestructuring norms with the lenders. We have therefore not verified the physicaldocuments of immovable property and relied on the management representation andcorrespondence of the IDBI trustees as on the date of submission of documents by theCompany with them.

(ii) (a) Inventories being project materials at site have not been physically verifiedby the management during the year. It is the normal practice of the company to physicallyverify the inventories at March end for its valuation as on March 31 2020. However thiswas not possible to be done due to the lockdown declared by the Government in view ofCOVID-19 pandemic. The inventories of book stocks at site as at the year end is Rs 38.92Crore.

(b) In our opinion and according to the information and explanations given to us theprocedure of physical verification of stock followed by the management is reasonable andadequate in relation to the size of the company and the nature of its business.

(c) In the absence of physical verification of inventories due to the aforesaidconstraints there was no discrepancy identified needing adjustment of inventory stocks.

(iii) According to the information and explanations given to us the Company has duringthe year not granted loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013 however in respect of loans outstanding: (a) The terms and conditionof the grant of such loans are in our opinion prima facie not prejudicial to theCompany's interest.

(b) Since no repayment schedule is stipulated for the aforesaid loans there is nooverdue amounts in respect of principal and interest from parties covered under section189 and therefore the requirements of clause 4(iii)(b) and 4(iii)(c) of the Companies(Auditors Report) Order 2015 are not applicable.

(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 2013with respect to loans investments guarantees and security given by the Company.

(v) The Company has not accepted any deposit from the public pursuant to sections 73 to76 or any other relevant provisions of the Companies Act 2013 and rules framedthereunder. As informed to us there is no order that has been passed by Company Law Boardor National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal in respect of the said sections. Accordingly the provision of clause 3(v) is notapplicable to the Company.

(vi) As informed to us the maintenance of the cost records under the sub-section (1) ofsection 148 of the Companies Act 2013 has been prescribed and we are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havenot however carried out a detailed examination of the records to ascertain whether theyare accurate or complete.

(vii) (a) The company has several instances of delay in depositing undisputed statutorydues including Provident Fund Professional Tax Employees State Insurance works contracttax Service tax/VAT Cess and sales tax Goods and Services Tax dues with the appropriateauthorities observed on a test check basis. On the basis of the audit procedures followedtest checks of the transaction and the representation from the Management there arearrears which were outstanding as at the last day of thefinancialyear for a period of morethan six months from the date they became payable a statement of such undisputedStatutory Dues outstanding for more than 6 months is given in Statement -1 (b) Accordingto the information and explanation given to us the details of Sales tax Income TaxService Tax Goods and Service Tax and Excise duty that have not been deposited on accountof dispute are given in the Statement of disputed statutory dues outstanding attachedherewith in Statement -2 (viii) According to information and explanations given to us thecompany has defaulted in servicing interest and principal repayment due to debentureholders financial institutions and banks. The borrowings have become Non PerformingAssets (NPA) and lenders have recalled all the loans. The total amount of recalled debtsare disclosed as current liabilities aggregating to Rs 3730.44 Crores. Details aredisclosed in statement 3. The amounts of delays in interest servicing in respect of RupeeTerm Loan FITL Priority Loan Working Capital Term Loan Short term Loan NCD NCD FITLCC and OD were shown in statement 4.

(ix) The company has not raised any money by way of public issue / follow-on offer(including debt instruments). The Company has also not raised any term loans during theyear. Therefore the clause 3(ix) of the Companies (Auditors Report) Order 2016 is notapplicable to the Company.

(x) According to the information and explanations given to us and to the best of ourknowledge and belief no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(xi) The managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theCompanies Act 2013.

(xii) The Company is not a Nidhi Company hence clause 3(xii) of Companies (AuditorsReport) Order 2016 is not applicable to the Company.

(xiii) Based on the minutes and the secretarial compliance all transactions with therelated parties are in compliance with sections 177 and 188 of the Companies Act 2013 inso far as our examination of the proceedings of the meetings of the Audit Committee andBoard of Directors are concerned. The details of related party transactions have beendisclosed in the Standalone Ind AS Financial Statements as required by the applicableAccounting Standard.

(xiv) The company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year under review except forallotment to lenders at the prescribed pricing norms prescribed by Securities and ExchangeBoard of India. The necessary compliances under the Companies Act have been carried out.Further since the same is conversion of loan into equity there are not purposes specifiedfor the utilisation of the proceeds.

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him and hence the clause 3(xv) of the Companies (Auditors Report)Order 2016 is not applicable to the Company.

(xvi) The nature of business and the activities of the Company are such that theCompany is not required to obtain registration under section 45-IA of the Reserve Bank ofIndia Act 1934.

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No.107023W
K N Padmanabhan
Partner
Membership No. 36410
Mumbai Dated: August 14 2020
UDIN: 20036410AAAACK7473

To the Independent Auditors' Report on the Standalone Financial Statements of GammonIndia Limited

Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls with reference to Financial Statementsof Gammon India Limited ("the Company") as of March 31 2020 in conjunction withour audit of the Standalone Financial Statement of the Company for the year ended on thatdate.

Qualified Opinion

In view of what is stated in our basis of Qualified Opinion we cannot state that theCompany has in all material respects an adequate internal financial controls system withreference to financial statements and such internal financial controls with reference tofinancial statements were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Basis of Qualified Opinion a) The Company has laid down internal financial controlswith reference to financial statements however its implementation and effectiveness incertain areas are affected due to severe manpower issues affecting timely preparation offinancial statements. b) Our test of transactions revealed instances of control weaknesseswhich have inter-alia resulted from manpower and liquidity issues c) Internal Auditcarried out by the Company was not adequate considering the size and operations of theCompany and was required to be more extensive with timely follow up and actions to correctthe issues promptly. The internal audit has also revealed weaknesses in the systems andprocesses.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria 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 (‘ICAI'). 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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

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 issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

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 over Financial Reporting

A company's internal financial control 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 control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements.

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 control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No.107023W
K N Padmanabhan
Partner
Membership No. 36410
Mumbai Dated: August 14 2020
UDIN: 20036410AAAACK7473

Statement -1

Undisputed Statutory liabilities Outstanding for more than 6 months as On 31stMarch 2020 referred to In Para 4(vii)(a) of The Annexure to Auditors' Report

Name of Dues Amount (Rs in Crs.) Period to which it relates Due Date
( Below mentioned dues are payable to various statues)
Profession Tax 0.19 Prior to April 2019 Prior to April 2019
Profession Tax 0.00 Prior to Sep-19 Prior to Sep 2019
Custom Duty Draw Back 2.07 Prior to April 2019 Prior to April 2019
Works Contract Tax 0.67 Prior to April 2019 Prior to April 2019
Provident Fund 0.05 Prior to April 2019 Prior to April 2019
Provident Fund 0.03 Prior to Sep-19 Prior to Sep 2019
Tax deducted at source 1.06 Prior to Sep-19 Prior to Sep 2019
Goods and Service Tax 0.27 Prior to Sep-19 Prior to Sep 2019

Statement -2

Statement of Statutory Dues outstanding on account of disputes as on 31stMarch 2020 referred to In Para 4(VII)(b) of the Annexure to Auditors' Report

Name of the Statute State Nature of the dues Amount in Crores Period to which it relates Forum where Dispute is pending
The Income Tax Act 1961 Income Tax Assessment Order 303.96 A.Y. 2006-07 to A.Y. 2011-12 ITAT Appeal
The Income Tax Act 1961 Income Tax Assessment Order 17.08 A.Y. 2012-13 to A.Y. 2013-14 CIT Appeal
The Income Tax Act 1961 TDS Intimation U/s 200A 8.89 A.Y. 2007-08 to A.Y. 2019-20 Not yet Filled
The Income Tax Act 1961 TDS Intimation U/s 200A 0.06 A.Y. 2008-09 to A.Y. 2017-18 Not yet Filled
The Income Tax Act 1961 Joint Venture Assessment 3.74 A.Y. 2010-11 to 2013-14 CIT Appeal
The Income Tax Act 1961 Corporate Guarantee Disallowance 6.28 AY 2016-17 Not yet Filled
Total 340.01
Sales Tax Act Andhra Pradesh Reassessment matter 0.04 2001-02 High Court
Sales Tax Act Andhra Pradesh Tax levied. Rule 6(3)(i) 2.10 2002-03 Tribunal / High Court
Sales Tax Act Andhra Pradesh Tax levied. Rule 6(3)(i) 1.64 2003-04 Tribunal / High Court
Sales Tax Act Andhra Pradesh Disallowance of Interstate purchase 0.24 2005-07 High Court
Sales Tax Act Andhra Pradesh Levy of Penalty 1.89 2005-07 High Court
Sales Tax Act Uttar Pradesh Taxes levied and denial of benefit of sec 3G and 3F2 b (1) 0.78 2003-04 Hon'ble High Court of Allahabad
Sales Tax Act Uttar Pradesh Taxes Levied and denial of Benefit of sec 3G and 3F2 b (1) 1.88 2004-05 Hon'ble High Court of Allahabad
Sales Tax Act Maharashtra Denial of deduction on Pre cost component 0.06 1993-94 to 1997- 98 Tribunal / A C Appeal
Sales Tax Act Maharashtra Rate Difference WCT 0.03 2000-01 Tribunal
Sales Tax Act Maharashtra Sales-In-Transit (I.E. 6(2) Sales disallowed) 4.72 2013-14 Jt. Appeal I
Sales Tax Act Maharashtra Disallowance of WCT & BST 5.81 2000 to 2002 Jt. Appeal / Tribunal
Sales Tax Act Orissa Lab. and Service Charges disallowed 0.11 1992-93 to 1999- 00 A C Appeal
Sales Tax Act Orissa Various disallowance 0.11 2001-02 A C Appeal
Sales Tax Act West Bengal Tax demand 0.98 1997-98 2010-11 and 2011-12 Sr. JCT (Appellate)
Sales Tax Act West Bengal Tax demand 5.64 2008-09 & 2009- 10 Revision Board
Sales Tax Act West Bengal Tax demand 2.39 2007-08 Tribunal
Sales Tax Act West Bengal Tax Demand 0.63 2007-08 (CST) Tribunal
Sales Tax Act West Bengal Tax demand. 0.21 2015-16 Yet to be filed
Sales Tax Act Rajasthan Increase in EC Fees 0.05 2007-08 Tax Law Board Ajmer
Sales Tax Act Rajasthan Wrong interest calculation in refund 0.02 2008-09 Tax Law Board
Total 29.34
The Finance Act 1994 Service Tax 0.86 August 2012 to January 2016 Service Tax Department
The Finance Act 1994 Service Tax 6.44 August 2008 to September 2012 CESTAT Mumbai
The Finance Act 1994 Service Tax 0.25 July 2006 to December 2007 CESTAT Mumbai
The Finance Act 1994 Service Tax 1.91 October 2004 to August 2008 Service Tax Office Mumbai
The Finance Act 1994 Service Tax 0.02 April 2007 to March 2008 Service Tax Office Mumbai
Total 9.48

Statement -3

Principal Default as at March 31st 2020 referred to In Para 4(viii) of TheAnnexure to Auditors' Report

Name of the Lender Amount in Crore Date of Payment
Allahabad Bank 141.79 Prior to April 2018
Bank of Baroda 545.57 Prior to April 2018
Bank Of Maharashtra 132.48 Prior to April 2018
Canara Bank 264.91 Prior to April 2018
Central Bank of India 17.34 Prior to April 2018
DBS Bank 101.93 Prior to April 2018
GIC 31.19 Prior to April 2018
ICICI Bank 198.35 Prior to April 2018
IDBI Bank 811.39 Prior to April 2018
Indian Bank 8.67 Prior to April 2018
Karnataka Bank 8.68 Prior to April 2018
Life Insurance Corporation 178.44 Prior to April 2018
Oriental Bank Of Commerce 105.19 Prior to April 2018
Punjab National Bank 134.18 Prior to April 2018
Syndicate Bank 344.48 Prior to April 2018
UCO Bank 177.82 Prior to April 2018
United India Insurance 17.84 Prior to April 2018
Union Bank of India 244.40 Prior to April 2018
United Bank of India 265.79 Prior to April 2018
Total 3730.44

Interest Default as at March 31st 2020 referred to In Para 4(viii) of TheAnnexure to Auditors' Report

Name of the Lender Amount in Crore Date of Payment
Allahabad Bank 1.38 From 1 to 365 days
Allahabad Bank 17.93 More than 365 days
Bank of Baroda 13.54 More than 365 days
Bank of Maharashtra 0.96 From 1 to 365 days
Bank of Maharashtra 24.92 More than 365 days
Canara Bank 52.75 From 1 to 365 days
Canara Bank 142.80 More than 365 days
Central Bank of India 1.82 From 1 to 365 days
Central Bank of India 6.03 More than 365 days
DBS Bank 7.76 From 1 to 365 days
DBS Bank 37.01 More than 365 days
GIC 3.10 From 1 to 365 days
GIC 9.91 More than 365 days
ICICI Bank 33.59 More than 365 days
IDBI Bank 73.14 More than 365 days
Indian Bank 0.92 From 1 to 365 days
Indian Bank 2.96 More than 365 days
Karnataka Bank 0.94 From 1 to 365 days
Karnataka Bank 3.02 More than 365 days
Life Insurance Corporation 18. 57 From 1 to 365 days
Life Insurance Corporation 58.55 More than 365 days
Oriental Bank of Commerce 13.14 From 1 to 365 days
Oriental Bank of Commerce 23.25 More than 365 days
Punjab National Bank 13.98 More than 365 days
Syndicate Bank 49.25 From 1 to 365 days
Syndicate bank 118.20 More than 365 days
UCO Bank 36.35 More than 365 days
Union Bank of India 49.87 More than 365 days
United Bank 63.73 More than 365 days
United India Insurance 1.70 From 1 to 365 days
United India Insurance 5.22 More than 365 days
Total 886.28

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