To The Members of The Great Eastern Shipping Company Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of TheGreat Eastern Shipping Company Limited ("the Company") which comprise theBalance Sheet as at March 312022 and the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Cash Flows and the Statement of Changes in Equityfor the year then ended and a summary of significant accounting policies and otherexplanatory information.
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 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312022and its profit total comprehensive income its cash flows and the changes in equity forthe year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.
Key Audit Matter
Key audit matter is the matter that in our professional judgment wasof most significance in our audit of the standalone financial statements of the currentperiod. This matter was 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 this matter. We have determined the matter described below to be thekey audit matter to be communicated in our report.
|KEY AUDIT MATTER ||AUDITOR'S RESPONSE |
|Assessment of recoverable amounts of vessels - (Refer notes 2(h) and 3 of the standalone financial statements) ||Our principal audit procedures included but were not limited to: |
|As at March 312022 the carrying amounts of the Company's vessels was Rs. 5323.21 crores representing 49% of the total assets. || Obtaining a detailed understanding of key controls and processes with regard to identification of impairment indications and assessment of recoverable amounts of the vessels where such indications exist and testing operating effectiveness of such controls. |
|The Company assesses at the end of each reporting period whether there is any indication that a vessel may be impaired by considering internal and external sources of information. || Assessing reasonableness of fair value of vessel considered by the Management by comparing the same with the valuations provided by external professional valuers. |
|The management assesses recoverable amount of each of the vessels where such indications exist based on higher of fair value less cost to sell and value in use. The fair value of a vessel is estimated based on the valuation provided by external professional valuers which is based on brokers' price ideas and market knowledge. The 'value in use' is determined by discounting estimated future cash flows as per management forecast over balance useful life of a vessel to its present value. The future cash flows are estimated based on various assumptions relating to charter hire rates based on published external industry forecasts and historical performance deployment pattern operating costs and other expenses scrap value and discount rate. || Evaluating and challenging the key inputs and assumptions considered for cash flow forecasts for estimating 'value in use' especially related to charter hire rates with reference to historical performance and published external industry forecast expected deployment with reference to historical pattern operating costs with reference to Management budget and historical actuals scrap value with reference to prevailing and forecast rates and those considered for discount rate for which we also involved our internal experts and assessing mathematical accuracy of the 'value-in-use' model. |
| || Assessing adequacy and appropriateness of the disclosures in the financial statements. |
Information Other than the Financial Statements and Auditor's ReportThereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board'sreport Corporate Governance Report Business Responsibility Report The Year at a GlanceFinancial Highlights and 5 Years at a Glance but does not include the consolidatedfinancial statements standalone financial statements and our auditor's reports thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statement that give a true and fair view and are free from materialmisstatement whether due 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 Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibility for the Audit of the Standalone FinancialStatements
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 materialif individually 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 skepticism 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 financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's 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 auditor's report. However future events or conditions maycause 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.
Obtain sufficient appropriate audit evidence regarding thefinancial information of the Company to express an opinion on the standalone financialstatements.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic 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 results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
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 wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit wereport 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 have beenkept 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 OtherComprehensive Income the Statement of Cash Flows and Statement of Changes in Equity dealtwith by this Report are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from thedirectors as on March 312022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312022 from being appointed as a director in termsof Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
g) With respect to the other matters to be included in the Auditor'sReport in accordance 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 theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements.
ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.
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 that to the best of it'sknowledge and belief as disclosed in the note 44 to the financial statements no fundshave been advanced or loaned or invested (either from borrowed funds or share premium orany other sources or kind of funds) by the Company to or in any other person(s) orentity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented that to the best of it's knowledgeand belief as disclosed in note 44 to the financial statements no funds have beenreceived by the Company from any person(s) or entity(ies) 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 onbehalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)as provided under (a) and (b) above contain any material misstatement.
v. The final dividend proposed in the previous year declared and paidby the Company during the year is in accordance with section 123 of the Act asapplicable.
The first interim dividend declared and paid by the Company during theyear and until the date of this report is in accordance with section 123 of the CompaniesAct 2013. The second interim dividend relating to the financial year 2021-22 declared bythe Company is in accordance with section 123 of the Companies Act 2013 to the extent itapplies to declaration of dividend. However the said second interim dividend was not duefor payment on the date of this audit report.
2. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
(Firm's Registration No. 117366W/W-100018)
Samir R. Shah
Membership No. 101708
Mumbai May 06 2022
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of The Great Eastern Shipping Company Limited ("the Company") as ofMarch 31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
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.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting 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 of therisks of material misstatement of the financial statements whether due to fraud 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 internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting 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 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 thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
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 system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312022 based on thecriteria for internal financial control over financial reporting established by theCompany 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 LLP
(Firm's Registration No. 117366W/W-100018)
Samir R. Shah
Membership No. 101708
Mumbai May 06 2022
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S 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 bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that
(i) In respect of Property Plant and equipment
a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment capital work-in-progress and relevant details of right-of-use assets.
(B) The Company has maintained proper records showing full particularsof intangible assets.
b) The Company has a program of verification of property plant andequipment capital work-in-progress and right-of-use assets so to cover all the itemsonce every 3 years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain property plant andequipment were due for verification during the year and were physically verified by theManagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.
c) According to the information and explanations given to us therecords examined by us and based on the examination of the registered sale deed/ transferdeed/ conveyance deed provided to us we report that the title deeds of all the immovableproperties (other than those that have been taken on lease including perpetual lease) areheld in the name of the Company as at the balance sheet date. In respect of immovableproperties that have been taken on lease and disclosed in the financial statements asproperty plant and equipment and right- of-use assets the lease agreements are dulyexecuted in favour of the Company except the following:
| || |
AS AT THE BALANCE SHEET DATE
|HELD IN THE NAME OF || || || |
|DESCRIPTION OF IMMOVABLE PROPERTIES TAKEN ON LEASE ||GROSS CARRYING VALUE AS AT MARCH 31 2022 ||CARRYING VALUE AS AT MARCH 31 2022 || ||WHETHER PROMOTER DIRECTOR OR THEIR RELATIVE OR EMPLOYEE ||PROPERTY HELD SINCE WHICH DATE ||REASON FOR NOT BEING HELD IN THE NAME OF THE COMPANY |
|Land taken on perpetual lease ||Rs. 43.72 crore ||Rs. 43.72 crore ||Central Camera Company Private Limited ||No ||April 30 1997 ||The Company has filed a Writ Petition in the Bombay High Court contesting demand on account of property tax of Rs. 3.10 crores raised by Bombay Municipal Corporation as the same is time barred. |
d) The Company has not revalued any of its property plant andequipment (including Right of Use assets) and intangible assets during the year.
e) No proceedings have been initiated during the year or are pendingagainst the Company as at March 31 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
(ii) In respect of Inventory
a) The inventories were physically verified during the year by theManagement at reasonable intervals. In our opinion and according to the 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 nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories when compared with books ofaccount.
b) According to the information and explanations given to us at anypoint of time of the year the Company has not been sanctioned any working capitalfacility from banks or financial institutions and hence reporting under clause (ii)(b) ofthe Order is not applicable.
(iii) The Company has not provided any guarantee or security andgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties during the year. Theinvestments in mutual funds made during the year are not prima facie prejudicial to theinterest of the Company.
(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 186 of the Act inrespect of investments. The Company has not granted any loans made investments orprovided guarantees or securities to parties covered under sections 185 and 186 of theCompanies Act 2013.
(v) The Company has not accepted any deposit or amounts which aredeemed to be deposits. Hence reporting under clause 3(v) of the Order is not applicable.
(vi) The maintenance of cost records has not been specified for theactivities of the Company by the Central Government under section 148(1) of the CompaniesAct 2013.
(vii) In respect of statutory dues:
a) Undisputed statutory dues including Goods and Service taxProvident Fund Employees' State Insurance Income-tax Sales Tax Service Tax duty ofCustom duty of Excise Value Added Tax cess and other material statutory dues applicableto the Company have been regularly deposited by it with the appropriate authorities in allcases during the year.
There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees' State Insurance Income-tax Sales Tax ServiceTax duty of Custom duty of Excise Value Added Tax cess and other material statutorydues in arrears as at March 31 2022 for a period of more than six months from the datethey became payable.
b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on March 31 2022 on account of disputes are given below:
|NAME OF STATUTE ||NATURE OF DUES ||PERIOD TO WHICH THE AMOUNT RELATES ||FORUM WHERE DISPUTE IS PENDING ||AMOUNT (' IN CRORES )* |
|The Central Sales Tax Act 1956 ||Sales Tax ||1998-99 ||The Sales Tax Appellate Tribunal ||0.87 |
|The Bombay Sales Tax Act 1959 ||Sales Tax ||1998-99 ||The Sales Tax Appellate Tribunal ||3.86 |
|Customs Act 1962 ||Custom Duty regarding vessels at different ports ||2009-10 ||Commissioner of Customs (Appeals) Jamnagar ||0.04 |
| || ||2010-11 and 2011-12 ||CESTAT Ahmedabad ||0.50 |
| || ||2011-12 ||Commissioner of Customs (Appeals) Bhubaneshwar ||0.02 |
| || ||2012-13 ||The High Court at Ahmedabad and Chennai ||5.56 |
| || ||2012-13 ||Commissioner of Customs (Appeals) Jamnagar ||0.37 |
| || ||2013-14 ||Commissioner of Customs (Appeals) Kolkata ||0.01 |
| || ||2021-22 ||Commissioner of CGST Appeals ||0.57 |
|Income Tax Act 1961 ||Income Tax ||2007-08 to 2010-11 ||Income Tax Appellate Tribunal Mumbai ||1.13 |
| || ||2015-16 to 2016-17 ||Assistant Commissioner of Income Tax ||2.59 |
| || ||2011-12 to 2018-19 ||Deputy Commissioner of Income Tax ||5.02 |
* These amounts are net of amounts paid under protest amounting to Rs.32.85 crores.
(viii) There were no transactions relating to previously unrecordedincome that were surrendered or disclosed as income in the tax assessments
under the Income Tax Act 1961 (43 of 1961) during the year.
(ix) In respect of Borrowings
a) In our opinion the Company has not defaulted in the repayment ofloans or other borrowings or in payment of interest thereon to any lender during the year.
b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.
c) To the best of our knowledge and belief in our opinion term loansavailed by the Company were applied by the Company during the year for the purposes forwhich the loans were obtained.
d) On an overall examination of the financial statements of theCompany there are no funds raised on short-term basis and hence reporting under clause3(ix)(d) is not applicable.
e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries.
f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries.
(x) In respect of Issue of securities
a) The Company has not issued any of its securities (including debtinstruments) during the year and hence reporting under clause 3(x)(a) of the Order is notapplicable.
b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionally)and hence reporting under clause (x)(b) of the Order is not applicable to the Company.
(xi) In respect of Fraud
a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.
b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.
c) As presented to us by the Management there were no whistle blowercomplaints received by the company during the year.
(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.
(xiii) In our opinion the Company is in compliance with Section 177and 188 of the Companies Act where applicable for all transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements etc. as required by the applicable accounting standards.
(xiv) In respect of Internal Audit
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 issued to the Companyduring the year and covering the period up to March 31 2022.
(xv) In our opinion during the year the Company has not entered intoany non-cash transactions with its directors or persons connected with its directors andhence provisions of section 192 of the Companies Act 2013 are not applicable to theCompany.
(xvi) In respect of Section 45-IA
a) The Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934. Hence reporting under clause (xvi)(a) (b) and (c)of the Order is not applicable.
b) The Group does not have any Core Investment Company (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) as part of the group andaccordingly reporting under clause (xvi)(d) of the Order is not applicable.
(xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of theCompany during the year.
(xix) On the basis of the financial ratios ageing and expected datesof realization of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.
(xx) In respect of contributions made towards ongoing projectsimplemented via trust controlled by the Company the trust has transferred unspentCorporate Social Responsibility (CSR) amount to a Special account before the date of thisreport and within a period of 30 days from the end of the financial year in compliancewith the provision of section 135(6) of the Act.
For DELOITTE HASKINS & SELLS LLP
(Firm's Registration No. 117366W/W-100018)
Samir R. Shah
Membership No. 101708
Mumbai May 06 2022