To the Members of
GE Power India Limited
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of GE Power IndiaLimited ("the Company") which comprise the
Balance Sheet as at March 31 2022 and the Statement of Profit and Loss (includingOther Comprehensive loss) the Statement of Cash Flows and the Statement of Changes inEquity for the year the ended and a summary of significant accounting policies and otherexplanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairsof the Company as at March 31 2022 and its loss totalcomprehensive loss its cash flows and the changes in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section
143(10) of the Act (SAs). Our responsibilities under those Standards are furtherdescribed in the Auditors Responsibility for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialAct and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAIs Code of Ethics.We believe that the audit evidence obtained by us is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financialstatements 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. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Sr. No. Key Audit Matter ||Auditors Response |
|1 Revenue Recognition ||Principal audit procedures performed: |
|A significant portion of companys business comprise of long-term projects including engineering procurement and construction contracts. Contract prices are fixed/subject to price variance clauses. ||a) Evaluated the design and tested operating effectiveness of key internal financial controls including those related to review and approval of estimated project cost. |
|Revenue from these contracts is recognized in accordance with accounting policies detailed in "significant accounting policies" in the standalone financial statements. ||b) For selected contracts tested the following: |
|There are judgements and estimates involved in accounting for revenue recognized on "Over the Time" basis w.r.t: ||i. Obtained the percentage of completion calculations agreed key contractual terms to signed contracts tested the mathematical accuracy of the cost to complete calculations and re-performed the calculation of revenue recognized during the year based on the percentage of completion; |
|a. Total estimated cost at inception; and ||ii. Identified and evaluated the key assumptions used in estimation of cost to complete; |
|b. Total estimated cost to complete at each reporting date to determine the appropriate percentage of completion. ||iii. Obtained the breakdown of the total estimated costs to complete for contracts in progress during the year and compared with the actual costs incurred and estimates of cost to be incurred at the reporting date; and |
|We considered the estimation of cost to complete as a key audit matter given the involvement of significant management judgement which has consequential impact on revenue recognition. ||iv. In respect of contracts with significant changes in margins during the year read the "Project Management Review" documents (as evidence of project reviews) wherever available. Discussed with the project controllers; the reasons for such changes in revenues/costs. |
|In the view of above we determined this area to be an area involving significant risk and an area of audit focus and accordingly a key audit matter. || |
|2. Uncertain Tax positions (including litigations) ||Principal audit procedures performed: |
|The Company operates in various states within India requiring it to comply with various central and state tax laws regulations and interpretations thereof. ||a) Obtained an understanding of the uncertain tax positions based on list of ongoing litigations as of reporting date and of the companys processes for evaluating these proceedings. |
|The Company has direct and indirect tax matters which are subject to ongoing proceedings by tax authorities and involve significant judgement by the management in evaluating the likely outcome. ||b) Tested the design implementation and operating effectiveness of relevant internal controls relating to management`s assessment of the litigations w.r.t probable possible and remote classification of referred uncertain tax position including adequacy of provisions recognised or disclosures made. |
|Provision for taxes is recognized or contingent liabilities are disclosed in accordance with the applicable Indian accounting standards. ||c) Obtained managements evaluation and obtained independent confirmation from legal counsels on these matters where applicable. |
|The Company makes an assessment to determine the outcome of these tax positions and decides to make an accrual or consider it to be a possible contingent liability. ||d) Involved internal specialists to assist in evaluating the management assessment by reviewing the facts of the case reasonableness of management assumptions and making an assessment of the likely outcome of the matter based on prevailing law past decisions from indirect tax authorities recent developments and new information as applicable and relevant. |
|The amounts involved are significant and the assessment involves interpretation of law assumptions and judgement which are inherently subjective to determine the likely outcome for these matters specifically matters relating to central excise duty amounting to INR 606 million Transfer pricing amounting to INR 1324 Million and certain sales tax matters relating to INR 538 Million (Refer Note 40 in the financial statements). Additionally these judgements could change over time as each of the matter progresses depending on experience on actual assessment proceedings by tax and other authorities and other judicial precedents. Change in the managements judgements and estimates may significantly affect the recognition of liabilities and or contingent liability related disclosures. ||e) Tested adequacy of disclosures in the financial statements. |
|Due to the above-mentioned factors we have determined this to be a key area of audit focus and accordingly a key audit matter. || |
|3. Allowances for expected credit losses for trade receivables ||Principal audit procedures performed: |
|As described in Note 2.9 and 13 to the standalone financial statement the Company provides for impairment of trade receivables including retention money with customers. The gross carrying value of trade receivables as on March 31 2022 was INR 25182 million which is a significant part of the total assets of the Company and on which management has recognized an expected credit loss of INR 1236 million. ||a. Tested the design implementation and the operating effectiveness of key controls in relation to determination of expected credit losses. |
|The estimation of expected credit loss involves use of significant estimates specifically appropriateness of the methodology used the estimates relating to probability of default discount rate and estimates relating to contract completion period. ||b. Tested on a sample basis the ageing analysis of the trade receivables by reference to the underlying documents. |
|We have considered the estimation of expected credit loss on receivables as a key audit matter because the amount of expected credit loss is significant the measurement has a high degree of estimation uncertainty and considering the audit effort involved including the need for professionals with specialized skill and knowledge to assist in auditing the reasonableness of these estimates. ||c. Evaluated the reasonableness of the assumptions relating to estimated contract completion period and forecasted collections from the customers based on our understanding of the customers financial condition the industry in which it operates the ageing of overdue balances and historical and post year-end cash receipts from the customers and retrospective analysis of these estimates. |
| ||d. Involved our internal specialists to assess the appropriateness of the methodology used by the management and assess overall reasonableness of assumptions used particularly those relating to probability of default and discount rate. |
| ||e. Tested the arithmetical accuracy and computation of the underlying data and the measurement of allowances prepared by the management. |
| ||f. Tested appropriateness of the disclosures relating to allowance for credit loss in the financial statements. |
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information.The other information comprises the information included in the Directors reportbut does not include the consolidated financial statements standalone financialstatements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially 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 materialmisstatement of this other information we and are required to report that fact. We havenothing to report in this regard.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive loss cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. 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; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatement 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 is responsible forassessing the Companys ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companysfinancial reporting process.
AUDITORS 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 free from material misstatement whether due to fraudor error and to issue an auditors report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis 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:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks sufficientappropriate and obtain audit evidence that is toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of managements use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant on theCompanys 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced.consider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant internal control that we identifyduring our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence 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 the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143(3) of the Act based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including Other Comprehensiveloss the Statement of Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the
Board of Directors none of the directors is disqualified as on March 31 2022 frombeing appointed as a We director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating audit findingsincludinganysignificant effectiveness of theCompanys internal financial controls over financial reporting
g) With respect to the other matters to be included in the Auditors Report inaccordance with the requirements of section 197(16) of the Act as amended
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that to the best of its knowledge andbelief other than as disclosed in the note 53 to the financial statements no funds havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the Company to or in any other person or entitiesincluding foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall directly or indirectly lendor invest in other person or entities identified in any manner whatsoever by or on behalfof the
Company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.
(b) The Management has represented that to the best of its knowledge andbelief other than as disclosed in the note 53 to the financial statements no funds havebeen received by the Company from any person or entities including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall directly or indirectly lend or invest in other personsor entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate
Beneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
(c) Based on the audit procedures performed that have been 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 (a) and (b) above contain any material misstatement.
v. The final dividend proposed in the previous year declared and paid by the Companyduring the year is in accordance with section 123 of the Act as applicable.
The Company has not proposed final dividend for the year.
2. As required by the Companies (Auditors Report) Order 2020 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the matters specified in paragraphs 3 and 4of the Order.
| ||For DELOITTE HASKINS & SELLS |
| ||Chartered Accountants |
| ||(Firms Registration No. 015125N) |
| ||Vikas Khurana |
| ||(Partner) |
| ||(Membership No.503760) |
| ||(UDIN: 22503760AJVTYX5730) |
|Place: Gurugram || |
|Date: May 30 2022 || |
Annexure "A" to the Independent Auditors Report
(Referred to in paragraph 1(f) under Report on Other Legal and RegulatoryRequirements section of our report of even date)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OFSUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT") controlsover financial
controls over We have financial audited the internal financial reporting of GEPower India Limited ("the Company") as of March 31 2022 in conjunctionwith our audit of the standalone Ind AS for the year ended on that date. financial
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenanceofadequateinternalfinancialcontrols that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financialreportingcontrolsover was established and maintained and if such controls operated effectivelyin all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internalfinancial included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error.
We believethattheauditevidencewehaveobtainedissufficientand appropriate to provide abasis for our audit opinion on the Companys internal financial controls system overfinancial
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompanys assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the criteria forinternal financial control over financial reporting established by the
Company considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.
| ||For DELOITTE HASKINS & SELLS |
| ||Chartered Accountants |
| ||(Firms Registration No. 015125N) |
| ||Vikas Khurana |
| ||(Partner) |
| ||(Membership No.503760) |
| ||(UDIN: 22503760AJVTYX5730) |
|Place: Gurugram || |
|Date: May 30 2022 || |
Annexure B to the Independent Auditors Report
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements section of our report of even date)
In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment capitalwork-in-progress and relevant details of right of use assets.
The Company has maintained proper records showing full particulars of intangibleassets.
(b) The Company has a program of verification of property plant and equipment capitalwork-in-progress and right of use assets so to cover all the items once every 3 yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the program certain Property Plant and Equipment andright of use assets were due for verification during the year and were physically verifiedby the Management during the year. According to the information and explanations given tous no material discrepancies were noticed on such verification.
(c) With respect to immovable properties (other than properties where the Company isthe lessee and the lease agreements are duly executed in favour of the Company) disclosedin the financial statements included in property plant and equipment according to theinformation and explanations given to us and based on the examination of the registeredsale deed provided to us we report that the title deeds of such immovable properties areheld in the name of the Company as at the balance sheet date except for the following:
|Description of property ||As at the Balance sheet date Gross Carrying value ||Held in the name of ||Whether promote director or their relative or employee ||Period held ||Reason for not being held in name of the Company * |
| ||(In millions) || || || || |
|Freehold Land at Shahabad and Buildings thereon. ||INR 108.7 ||ACC Vickers Babcock Ltd/ Alstom Projects India Ltd ||No ||8/1/1974 ||Updated application form for name change has been filed with respective authorities on March 22 2022. We are informed that no response has been received from the respective authorities till the date of signing of the Financial Statements. |
(d) The Company has not revalued any of its property plant and equipment (includingRight of Use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
(ii) (a) The inventories (Other than goods-in-transit and stocks held with thirdparties) were physically verified during the year by the
Management at reasonable intervals. In our opinion and based on information andexplanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the operations. Forstocks held with third parties at the year-end written confirmations have been obtainedand in respect of transit the goods have been received subsequent to the year-end. Nodiscrepancies of 10% or more in the aggregate for each class of inventories were noticedon such physical verification of inventories when compared with the books of account.
(b) According to the information and explanations given to us the Company has beensanctioned working capital limits in excess of INR 5 crores in aggregate at points oftime during the year from banks on the basis of security of current assets. In ouropinion and according to the information and explanations given to us the quarterlyreturns or statements comprising (stock statements book debt statements creditmonitoring arrangementreportsandotherstipulatedfinancialinformation)filedby the Companywith such banks or financial institutions are in agreement with the unaudited books ofaccount of the Company of the respective quarters.
(iii) The Company has not made any investments in provided any guarantee or securityand granted any loans or advances in the nature of
Liability Partnerships or any other parties during the year and hence reportingloanssecuredorunsecuredtocompaniesfirms under clause (iii) of the Order is notapplicable.
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 186 of the Companies Act 2013 inrespect of making investments. The Company has not granted any loan during the year underSection 186 of the Companies Act 2013. Further the Company has not granted any loansmade investments or provided guarantees under Section 185 of the Companies Act 2013.
(v) The Company has not accepted any deposit or amounts which are deemed to bedeposits. Hence reporting under clause (v) of the Order is not applicable.
(vi) Government under section 148(1) of the Companies Act 2013. We haveThemaintenanceofcostrecordshasbeenspecified broadly reviewed the books of accountmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained by the Company. We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.
(vii) In respect of statutory dues:
(a) Undisputed statutory dues including Goods and Services tax Provident FundEmployees State Insurance Income-tax duty of Customs cess and other materialstatutory dues applicable to the Company have been regularly deposited by it with theappropriate authorities in all cases during the year.
There were no undisputed amounts payable in respect of Goods and Services taxProvident Fund Employees State Insurance Income-tax duty of Customs cess andother material statutory dues in arrears as at March 31 2022 for a period of more thansix months from the date they became payable.
(b) Details of statutory dues referred to in sub-clause (a) above which have not beendeposited as on March 312022 on account of disputes are given below:
|Name of Statute ||Nature of Dues ||Forum where dispute is pending ||Period to which the Amount Relates (FY) ||Amount Involved (In Millions) ||Amount Disputed (Net of Payment under Protest) (In Millions) |
|Central Excise Act 1944 ||Central Excise ||Tribunal ||2009-10 to 2016-17 ||632.85 ||613.54 |
| ||Central Excise ||Commissioner ||2001-02 to 2003-04 2014 -15 to 201718 ||43.76 ||43.76 |
| ||Central Excise ||Adjudicating Authority ||1994-95 to 1996-97 ||69.04 ||60.44 |
| ||Central Excise ||Second Appellate Authority ||2001-02 pto 2003 -04 ||311.06 ||304.61 |
|Directorate General of Foreign Trade ||Duty Drawback ||Supreme Court ||2009-2010 ||18.36 ||18.36 |
|Goods and services Tax Act 2017 ||GST ||Range officer ||2017-18 to 2018-19 ||9.77 ||9.77 |
| || ||Commissioner ||2020-21 ||4.55 ||4.55 |
| || ||Adjudicating Authority ||2018-19 to 2019-20 ||66.09 ||66.09 |
|Income Tax Act 1961 ||Income Tax ||Income Tax Appellate Tribunal ||2007-08 2010-11 2013- 14 to 2015-16 ||1114.31 ||979.22 |
| || ||High Court ||2011-12 to 2012-13 ||392.36 ||47.72 |
| || ||Dispute Resolution Panel ||2017-18 ||35.20 ||35.20 |
| || ||Commissioner of Income Tax ||2017-18 ||159.72 ||159.72 |
| || ||Assessing Officer ||2018-19 ||175.81 ||175.81 |
|Central Sales Tax and Local Sales Tax Act ||Sales tax ||High Court ||2010-11 to 2015-16 ||538.58 ||538.58 |
| || ||Tribunal ||1993-94 to 1996-97 2004-05 2011-12 to 2017-18 ||1746.12 ||1661.75 |
| || ||Adjudicating Authority ||2005 -06 to 2007-08 2010-11 to 2011-12 2016-17 ||107.30 ||107.30 |
| || ||Commissioner ||2010-11 to 2011-12 2013-14 to 2017-18 ||122.65 ||98.77 |
| || ||Commercial Tax Officer 2014-15 ||0.85 ||0.85 || |
(viii) There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessment under the Income Tax Act 1956(43 of 1961) during the year.
(ix) (a) In our opinion the Company has not defaulted in the repayment of loans orother borrowings or in the payment of interest thereon to any lender during the year.
(b) The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.
(c) The Company has not taken any term loan during the year and there are no unutilizedterm loans at the beginning of the year and hence reporting under clause (ix)(c) of theOrder is not applicable.
(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.
(e) On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiary or Joint venture.
(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiary or joint venture.
(x) (a) The Company has not issued any of its securities (including debt instruments)during the year and hence reporting under clause (x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge no fraud by the Company and no material fraud onthe Company has been noticed or reported during the year.
(b) To the best of our knowledge no report under sub-section
(12) of section 143 of the Companies Act has been filed in
Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report.
(c) We have taken into consideration the whistle blower complaints received by theCompany during the year.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.
(xiii) In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act where applicable for all transactions with the related parties and thedetails of related party transactions have been disclosed in the financial statements etc.as required by the applicable accounting standards.
(xiv) (a) In our opinion the Company has an adequate internal audit systemcommensurate with the size and the nature of its business.
(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.
(xv) In our opinion during the year the Company has not entered into any non-cashtransactions with its directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Hence reporting under clause (xvi)(a) (b) and (c) of the Orderis not applicable.
The Group does not have more than one CIC as part of the Group.
(xvii) The Company has incurred cash losses amounting to INR 1520.5 millions in thefinancial year covered by our audit but had not incurred cash losses in the immediatelypreceding financial year.
(xviii) There has been no resignation of the statutory auditors of the Company duringthe year.
(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.
(xx) The Company has fully spent the required amount towards Corporate SocialResponsibility (CSR) and there are no unspent
CSR amount for the year requiring a transfer to a Fund specified in Schedule VII to theCompanies Act or special account in compliance with the provision of sub-section (6) ofsection 135 of the said Act. Accordingly reporting under clause (xx) of the Order is notapplicable for the year.
| ||For DELOITTE HASKINS & SELLS |
| ||Chartered Accountants |
| ||(Firms Registration No. 015125N) |
| ||Vikas Khurana |
| ||(Partner) |
|Place: Gurugram ||(Membership No.503760) |
|Date: May 30 2022 ||(UDIN: 22503760AJVTYX5730) |