You are here » Home » Companies » Company Overview » Havells India Ltd

Havells India Ltd.

BSE: 517354 Sector: Engineering
NSE: HAVELLS ISIN Code: INE176B01034
BSE 10:53 | 30 Jun 1096.45 -1.80
(-0.16%)
OPEN

1098.65

HIGH

1106.15

LOW

1095.30

NSE 10:39 | 30 Jun 1097.35 -1.25
(-0.11%)
OPEN

1098.00

HIGH

1105.90

LOW

1094.00

OPEN 1098.65
PREVIOUS CLOSE 1098.25
VOLUME 4126
52-Week high 1503.70
52-Week low 977.40
P/E 57.47
Mkt Cap.(Rs cr) 68,693
Buy Price 1097.05
Buy Qty 2.00
Sell Price 1097.80
Sell Qty 2.00
OPEN 1098.65
CLOSE 1098.25
VOLUME 4126
52-Week high 1503.70
52-Week low 977.40
P/E 57.47
Mkt Cap.(Rs cr) 68,693
Buy Price 1097.05
Buy Qty 2.00
Sell Price 1097.80
Sell Qty 2.00

Havells India Ltd. (HAVELLS) - Auditors Report

Company auditors report

To the Members of Havells India Limited

Report on the Audit of the Standalone financial statements

Opinion

1. We have audited the accompanying Standalone financial statements ofHavells India Limited ("the Company") which comprise the Standalone BalanceSheet as at March 31 2022 and the Standalone Statement of Profit and Loss (includingOther Comprehensive Income) Standalone Statement of Changes in Equity and the StandaloneStatement of Cash Flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid Standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and total comprehensive income (comprising of profit and other comprehensive income)changes in equity and its cash flows for the year then ended.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the "Auditor's Responsibilities for the Auditof the Financial Statements" section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key audit matters

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
Assessment of impairment of goodwill and intangible assets with indefinite useful life Refer Note 4 to the standalone financial statements. Our audit procedures among others included the following:
a. Understanding and evaluating the design and operating effectiveness of internal controls over the impairment assessment process including preparation of the DCF model;
As at March 312022 the standalone financial statements includes goodwill of Rs. 310.47 crores and intangible assets with indefinite useful lives of Rs. 1029 crores pertaining to acquisition of Lloyd business in an earlier year.
b. Evaluating the Company's accounting policy in respect of impairment assessment of goodwill and intangible assets with indefinite useful lives;
In accordance with the requirements of Indian Accounting Standard (Ind AS) - 36 ‘Impairment of Assets' the management has allocated the said goodwill and intangible assets to the underlying Cash Generating Unit (CGU) and tested the same for impairment using a Discounted Cash Flow (DCF) model factoring in the impact of COVID 19. Based on such test the recoverable amount of the CGU is higher than the carrying amount of the said assets and accordingly no adjustment for impairment is necessary.
c. Understanding the cash flow projections and assumptions used in the DCF model evaluating the mathematical accuracy and reading the report of the management expert;
d. Together with auditor's valuation experts testing the appropriateness of the DCF model and key assumptions therein and performing sensitivity analysis over key assumptions to corroborate that the recoverable amount of the CGU is within a reasonable range; and
We considered this as a key audit matter because of the significant carrying value of the above mentioned assets and high estimation uncertainty in assumptions used such as discount rate rate of growth over the estimation period and terminal growth rate which are affected by future market and economic conditions and hence are inherently uncertain.
e. Testing related presentation and disclosures in the standalone financial statements.
Based on the above procedures performed the management's impairment assessment of the goodwill and intangible assets was found to be reasonable.

Other Information

5. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the financial statements and our auditor's reportthereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance forthe financial statements

6. The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these Standalonefinancial statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

7. In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing 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 arealso responsible for overseeing the Company's financial reporting process.

Auditor's responsibilities for the audit of the financialstatements

8. Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's 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 financial statements.

9. As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the 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 conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

10. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

11. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

12. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our 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.

Other Matter

13. The Standalone financial statements of the Company for the yearended March 31 2021 were audited by another firm of chartered accountants under the Actwho vide their report dated May 202021 expressed an unmodified opinion on thoseStandalone financial statements.

Report on other legal and regulatory requirements

14. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure B a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

15. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Standalone Balance Sheet the Standalone Statement of Profitand Loss (including other comprehensive income) the Standalone Statement of Changes inEquity and the Standalone Statement of Cash Flows dealt with by this Report are inagreement with the books of account.

(d) In our opinion the aforesaid Standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure A".

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

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 31 to theStandalone financial statements.

ii. The Company has long-term contracts as at March 31 2022 for whichthere were no material foreseeable losses. The Company did not have any derivativecontracts as at March 31 2022.

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

iv. (a) The management has represented that to the best of itsknowledge and belief as disclosed in the notes to the accounts no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the Company to or in any other person or entity includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lendor invest in other persons or entities identified in any manner whatsoever by or on behalfof the Company ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries (Refer Note 32(19) to the Standalonefinancial statements);

(b) The management has represented that to the best of its knowledgeand belief as disclosed in the notes to the accounts no funds have been received by theCompany from any person or entity including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries (Refer Note 32(19) to the Standalone financialstatements); and

(c) Based on such audit procedures that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.

v. The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.

16. The Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/E-300009
Avijit Mukerji
Partner
Membership No. 056155
UDIN: 22056155AIJASP9405
Place: Noida
Date: May 04 2022

Annexure A to Independent Auditors' Report

Referred to in paragraph 15(f) of the Independent Auditors' reportof even date to the members of Havells India Limited on the Standalone FinancialStatements for the year ended March 31 2022

Report on the Internal Financial Controls with reference to FinancialStatements under clause (i) of sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference tofinancial statements of Havells India Limited ("the Company") as of March 312022 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting ("the Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingdeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financialstatements

6. A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference tofinancial statements

7. Because of the inherent limitations of internal financial controlswith reference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects anadequate internal financial controls system with reference to financial statements andsuch internal financial controls with reference to financial statements were operatingeffectively as at March 31 2022 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by ICAI.

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/E-300009
Avijit Mukerji
Partner
Membership No. 056155
UDIN: 22056155AIJASP9405
Place: Noida
Date: May 04 2022

Annexure B to Independent Auditors' Report

Referred to in paragraph 14 of the Independent Auditors' Report ofeven date to the members of Havells India Limited on the standalone financial statementsas of and for the year ended March 31 2022

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

(B) The Company is maintaining proper records showing full particularsof Intangible Assets.

(b) The Property Plant and Equipment of the Company have beenphysically verified by the Management during the year and no material discrepancies havebeen noticed on such verification. In our opinion the frequency of verification isreasonable.

(c) The title deeds of all the immovable properties (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) as disclosed in Note 3 to the standalone financial statements areheld in the name of the Company except for the following:

Description of property Gross carrying value (Rs. crores) Held in the name of Whether promoter director or their relative or employee Period held Reason for not being held in the name of the Company
Freehold land in Delhi 15.89 Late Shri Qimat Rai Gupta on behalf of M/s Guptajee & Company Erstwhile Promoter/ Director From March 31 2011 Refer Note 3(viii) to the standalone financial statements.
Building in Bengaluru 0.04 Mrs. Shakrereh Shraddhanand No From April 012012

Further the Company has taken the following immovable properties onlease but the lease agreement has not been duly executed in favour of the Company:

Description of property Gross carrying value (right-of-use asset) ( Rs. crores) Held in the name of Whether promoter director or their relative or employee Period held Reason for lease agreement not executed with the Company
Building in Sahibabad 43.20 QRG Enterprises Limited Promoter From August 01 2007 Refer Note 3(ix) to the standalone financial statements.
Building in Noida 96.79 QRG Enterprises Limited Promoter From July 012008

(d) The Company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets or both during the year.Consequently the question of our commenting on whether the revaluation is based on thevaluation by a Registered Valuer or specifying the amount of change if the change is 10%or more in the aggregate of the net carrying value of each class of Property Plant andEquipment (including Right of Use assets) or intangible assets does not arise.

(e) Based on the information and explanations furnished to us noproceedings have been initiated or are pending against the Company for holding benamiproperty under the Prohibition of Benami Property Transactions Act 1988 (as amended in2016) (formerly the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and Rulesmade thereunder and therefore the question of our commenting on whether the Company hasappropriately disclosed the details in its financial statements does not arise.

ii.(a) The physical verification of inventory has been conducted atreasonable intervals by the Management during the year and in our opinion the coverageand procedure of such verification by Management is appropriate. In respect of inventorylying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not 10% or more in aggregate for each class of inventory.

(b) During the year the Company has been sanctioned working capitallimits in excess of Rs. 5 crores in aggregate from banks on the basis of security ofcurrent assets. The Company has filed quarterly returns or statements with such bankswhich are in agreement with the unaudited books of account (Also refer Note 15(d) to thestandalone financial statements).

iii. The Company has made investments in one company during the year.The Company has not granted secured/ unsecured loans/advances in nature of loans or stoodguarantee or provided security to any parties. Therefore the reporting under clauses3(iii)(a) (iii)(c) (iii)

(d) (iii)(e) and (iii)(f) of the Order are not applicable to theCompany.

(iii)(b) In respect of the investments the terms and conditions underwhich investments were made are not prejudicial to the Company's interest

iv. The Company has not granted any loans or provided any guaranteesor security to the parties covered under Section 185 of the Act. Further in our opinionand according to the information and explanations given to us the Company has compliedwith the provisions of Section 186 of the Companies Act 2013 in respect of theinvestments made by it and the Company has not provided any loans guarantees or securityto the parties covered under Section 186 of the Act.

v. The Company has not accepted any deposits or amounts which aredeemed to be deposits within the meaning of Sections 73 74 75 and 76 of the Act and theRules framed there under to the extent notified.

vi. Pursuant to the rules made by the Central Government of India theCompany is required to maintain cost records as specified under Section 148(1) of the Actin respect of its products. We have broadly reviewed the same and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Wehave not however made a detailed examination of the records with a view to determinewhether they are accurate or complete.

vii.(a)According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is regular indepositing the undisputed statutory dues including goods and services tax providentfund employees' state insurance income tax duty of customs cess and othermaterial statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no statutory dues of provident fundemployees' state insurance and cess which have not been deposited on account of anydispute. The particulars of other statutory dues referred to in subclause (a) as at March31 2022 which have not been deposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount of demand without netting-off amount paid under protest (Rs. in crores) Amount paid under protest (Rs. in crores) Period to which the amount relates (Financial Year) Forum where dispute is pending
Income Tax Act 1961 Disallowances and additions to taxable income and Penalty 0.27 0.13 2005-06 Income Tax Appellate Tribunal New Delhi
Income Tax Act 1961 Disallowances and additions to taxable income 19.21 9.55 2009-10 to 2013-14 Income Tax Appellate Tribunal New Delhi
Income Tax Act 1961 Disallowances and additions to taxable income 23.01 3.54 2009-102014- 15 2016-17 and 2019-20 Commissioner of Income Tax (Appeal) New Delhi
Income Tax Act 1961 Disallowances and additions to taxable income 0.01 0.01 2018-19 Assessing Officer New Delhi
Central Excise Act 1944 Excise duty demand/ disallowance of Cenvat credit on various items. 0.23 2007-08 to 2009-10 CESTAT (Chandigarh)
Central Excise Act 1944 Excise duty demand on various items. 15.96 0.60 2015-16 to 2017-18 CESTAT (Karnataka)
The Custom Act 1944 Custom duty demand on various Matter 0.16 0.01 2019-20 Commissioner of customs (Appeals)
Bihar Value Added Tax Act 2005 Sales tax demand on various matter 20.03 13.47 2007-08 to 2015-16 Tribunal Commercial Tax (Patna)
Bihar Value Added Tax Act 2005 Sales tax demand on various matter 0.62 0.41 2016-17 Commissioner (Appeal) Patna
Haryana Value Added Tax Act 2003 Sales tax demand on various matter 0.25 0.15 2003-04 2005- 06 to 2006-07 High Court (Punjab and Haryana)
Kerala Value Added Tax Act 2003 Sales tax demand on various matter 0.33 0.28 2005-06 Appellate Tribunal Commercial Tax Ernakulam (Kerala)
Tamil Nadu Value Added Tax Act 2006 Sales tax demand on various matter 0.05 0.03 2007-08 Appellate Tribunal Commercial Tax (Tamil Nadu)
Orissa Entry Tax Act 1999 Tax demand on various matter 0.77 0.30 2008-09 to 2011-12 High Court Orissa
Haryana Local Area Development Tax Act 2000 Local Area Development Tax demand on various matter 0.12 0 2001-02 Joint Commissioner (Appeal) Faridabad
State Tax Act (Octroi Tax Act Maharashtra) Tax demand on various matter 0.03 0.03 2010-11 Nagpur Municipal Corporation
Goods and Services Tax Act 2017 GST demand on various matter 0.46 0.46 2017-18 High Court (Uttar Pradesh)
Goods and Services Tax Act 2017 GST demand on various matter 0.10 0.10 2019-20 Additional Commissioner (A) Noida (Uttar Pradesh)
Goods and Services Tax Act 2017 GST demand on various matter 0.11 2019-20 Additional Commissioner (A) Dehradun (Uttarakhand)
Goods and Services Tax Act 2017 GST demand on various matter 0.58 0.06 2017-18 Commissioner of GST Appeals-Ghaziabad

The above amounts contain interest and penalty where included in theorder issued by the department to the Company.

viii. According to the information and explanations given to us and therecords of the Company examined by us there are no transactions in the books of accountthat has been surrendered or disclosed as income during the year in the tax assessmentsunder the Income Tax Act 1961 that has not been recorded in the books of account.

ix. (a) According to the records of the Company examined by us and theinformation and explanations given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest to any lender during the year.

(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declaredWillful Defaulter by any bank or financial institution or government or any governmentauthority.

(c) In our opinion and according to the information and explanationsgiven to us the term loans taken during the year have been applied for the purposes forwhich they were obtained. In respect of the term loans which were taken in the previousyear as reported by the predecessor auditor those were applied for the purpose for whichthe loans were obtained. (Also refer Note 15(f) to the standalone financial statements).

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries.

(f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries.

x. (a) The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglythe reporting under clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or privateplacement of shares or fully or partially or optionally convertible debentures during theyear. Accordingly the reporting under clause 3(x)(b) of the Order is not applicable tothe Company.

xi. (a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company noticed orreported during the year nor have we been informed of any such case by the Management.

(b) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us a report underSection 143(12) of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 was not required to be filed with the Central Government.Accordingly the reporting under clause 3(xi)(b) of the Order is not applicable to theCompany.

(c) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us the Company hasreceived whistle- blower complaints during the year which have been considered by us forany bearing on our audit and reporting.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the reporting under clause 3(xii) of the Order is not applicableto the Company.

xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Indian Accounting Standard 24 "Related Party Disclosures"specified under Section 133 of the Act.

xiv. (a) In our opinion and according to the information andexplanation given to us the Company has an internal audit system commensurate with thesize and nature of its business.

(b) The reports of the Internal Auditor for the period under audit havebeen considered by us.

xv. The Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly the reporting on compliance with theprovisions of Section 192 of the Act under clause 3(xv) of the Order is not applicable tothe Company.

xvi. (a) The Company is not required to be registered under

Section 45-IA of the Reserve Bank of India Act 1934. Accordingly thereporting under clause 3(xvi)(a) of the Order is not applicable to the Company.

(b) The Company has not conducted non-banking financial / housingfinance activities during the year. Accordingly the reporting under clause 3(xvi)(b) ofthe Order is not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly the reporting under Clause3(xvi) (c) of the Order is not applicable to the Company.

(d) Based on the information and explanations provided by themanagement of the Company the Group does not have any CICs which are part of the Group.We have not however separately evaluated whether the information provided by themanagement is accurate and complete.

Accordingly the reporting under clause 3(xvi)(d) of the Order is notapplicable to the Company.

xvii. The Company has not incurred any cash losses in the financialyear or in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors duringthe year and accordingly the reporting under Clause (xviii) is not applicable.

xix. According to the information and explanations given to us and onthe basis of the financial ratios (Also refer Note 32(17) to the standalone financialstatements) ageing and expected dates of realisation of financial assets and payment offinancial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatCompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.

xx. (a) In respect of other than ongoing projects as at balance sheetdate the Company does not have any amount remaining unspent under Section 135(5) of theAct. Accordingly reporting under clause 3(xx)(a) of the Order is not applicable.

(b) The Company has transferred the amount of Corporate SocialResponsibility remaining unspent under subsection (5) of Section 135 of the Act pursuantto ongoing projects to a special account in compliance with the provision of sub-section(6) of Section 135 of the Act. Also refer Note 32(8) to the standalone financialstatements.

xxi The reporting under clause 3(xxi) of the Order is not applicable inrespect of audit of Standalone Financial Statements. Accordingly no comment in respect ofthe said clause has been included in this report.

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/E-300009
Avijit Mukerji
Partner
Membership No. 056155
UDIN: 22056155AIJASP9405
Place: Noida
Date: May 04 2022

.