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Indraprastha Gas Ltd.

BSE: 532514 Sector: Others
NSE: IGL ISIN Code: INE203G01027
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VOLUME 22280
52-Week high 514.80
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P/E 20.32
Mkt Cap.(Rs cr) 30,629
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OPEN 432.55
CLOSE 434.70
VOLUME 22280
52-Week high 514.80
52-Week low 322.10
P/E 20.32
Mkt Cap.(Rs cr) 30,629
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indraprastha Gas Ltd. (IGL) - Auditors Report

Company auditors report

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Indraprastha Gas Limited ("theCompany") which comprise the standalone balance sheet as at 31 March 2022 thestandalone statement of profit and loss (including other comprehensive income) standalonestatement of changes in equity and standalone statement of cash flows for the year thenended and notes to the standalone financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements gives the information requiredby the Companies Act 2013 ("the Act") in the manner so required and gives atrue and fair view in conformity with Indian Accounting Standards ('Ind AS') specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) rules2015 as amended and the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2022 profit and other comprehensive income changesin equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities 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 together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.

Emphasis Of Matter

Attention is drawn to note no 28 Other Income write back of provision of Rs 38.20crore for Greater Noida Pipeline rent which in the opinion of management is not tenable.Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matter.

Description of Key Audit Matter

CONTINGENT LIABILITIES

Refer note 3.20 and 34 of Standalone summary of significant accounting policies andother explanatory information for the year ended 31st March 2022.

Key audit matter How the matter was addressed in our audit
The Company has received certain demands from the government authorities which are disputed. These involve a high degree of judgment to determine the possible outcomes and estimates relating to the timing and the amount of outflow of resources embodying economic benefits Our audit procedures included but were not limited to:
- Obtaining a detailed understanding processes and controls of the Management with respect to claims or disputes.
- Evaluation of the design of the controls relating to compilation of the claims assessment of probability of outcome estimates of the timing and the amount of the outflows an appropriate reporting by the management and testing implementation and operating effectiveness of the key controls.
Based on management judgment advice from legal and other consultants and merits of the case the company has recognized the provisions changed the accounting and for the balance matters wherever management expects favorable outcome these litigations have been disclosed as contingent liabilities in financial statements. - Performing following procedures on sample selected:
• Understanding the matters by reading the correspondences communications minutes of the Audit Committee and or the Board meetings and discussions with the appropriate Management personnel.
We have identified this as a key audit matter for current year audit due to the materiality of the amounts involved uncertainty and application of significant judgment in these contingent liabilities in terms of eventual outcome in these litigations. • Making corroborative inquiries with appropriate level of the management personnel including status update expectation of outcomes with the basis and the future course of action contemplated by the Company and perusing legal opinions if any obtained by the Management.
• Considering their opinions of attorney wherever available on probability assessment of the outcomes.
• Evaluating the evidence supporting the judgment of the management about possible outcomes and the reasonableness of the estimates.
- Evaluating appropriateness of adequate disclosures in accordance with the applicable accounting standards.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon. The annual report is expected to be made available to us after the date of thisauditors' report.

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 identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the annual report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance andtake necessary actions as applicable under the relevant laws and regulations.

Management's and Board of Directors' Responsibilities for the Standalone FinancialStatements

The Company's management and Board of Directors are 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 state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance

with the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible 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 the Board of Directors either intend to liquidate the Companyor to cease operations or have no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordance

with SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken 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 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 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 thecompany has adequate internal financial controls with reference to standalone financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's and Board of Directors' use ofthe going concern basis of accounting in preparation of standalone financial statementsand based on the audit evidence obtained whether a material uncertainty exists relatedto events or conditions that may cast significant doubt on the Company's ability tocontinue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditors' report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue 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.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during 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 about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.

2. As required by the Comptroller and Auditor General of India vide directions issuedunder Section 143(5) of the Act on the basis of information explanations and writtenrepresentations received from the management. we give our report in Annexure B on thematters specified in the aforementioned directions.

3. (A) As required by Section 143(3) of the Act 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 standalone balance sheet the standalone statement of profit and loss(including other comprehensive income) the standalone statement of changes in equity andthe standalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 from being appointed as a director in terms of section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure C".

(g) With respect to the matter to be included in the Auditors' Report under section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of and limits laid down under section 197 read with schedule V to theAct.

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

a) The Company has disclosed the impact of pending litigations as at 31 March 2022 onits financial position in its standalone financial statements. Refer note 34 to thestandalone financial statements.

b) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

d) (i) The Management has represented that to the

best of its knowledge and belief as disclosed in note 54(B) 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 persons or entities includingforeign entities ("Intermediaries") with the

understanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(ii) The Management has represented that to the best of its knowledge and belief asdisclosed in note 54(B) no funds have been received by the Company from any persons orentities including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(iii) 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 subclause (i) and (ii) of Rule 11(e) contain anymaterial misstatement.

e) The final dividend paid by the Company during the current year in respect of thesame declared for the previous year is in accordance with section 123 of the Companies Act2013 to the extent it applies to payment of dividend. As stated in note 55 to thefinancial statements the Board of Directors of the Company have proposed final dividendfor the current year which is subject to the approval of the members at the ensuing AnnualGeneral Meeting. The dividend declared is in accordance with section 123 of the Act to theextent it applies to declaration of dividend.

For Datta Singla & Co.
Chartered Accountants
Firm's Registration No.: 006185N
Sd/-
Vishakha Harit
Partner
Membership No.:096919
UDIN: 22096919AJEHHB6333
Place: New Delhi
Date: 18 May 2022

Annexure A to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone financial statements for the year ended 31 March2022 we report the following:

(i) (a) (A) The Company has maintained proper records

showing full particulars including quantitative details and situation of propertyplant and equipment.

(B) The Company has maintained proper records showing full particulars of intangibleassets.

(b) According to the information and explanations given to us and on the basis of ourexamination

of the records of the Company the PPE have been physically verified by the managementduring the year except related to underground natural gas distribution system which as permanagement cannot be physically verified and no material discrepancies were noticed onsuch verification. In our opinion the frequency of verification of the PPE is reasonablehaving regard to the size of the Company and the nature of its assets. For the undergroundnatural gas distribution system the management has adequate controls in place tosafeguard the physical existence of the said distribution system.

(c) The title deeds of all immoveable properties (other than properties where theCompany is the lessee and the lease agreements are duly executed in favor of the lessee)disclosed in the financial statements are held in the name of company except:

Description of property Gross Carrying Value (Rs) Held in the name of Whether promoter director or their relative or employee Period held- indicate range where appropriate Reason for not being held in the name of company
Land at Okhla DSIIDC Phase II 9.84 Cr DSIIDC Ltd No Since Aug. 2010 Lease deed pending
Land at R.K.Puram Sec-IX (IGL Bhawan) 7.15 Cr Land & Development Office GOI No Since June 2002 -do-

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its propertyplant and equipment (including right of use assets) or intangible assets or both duringthe year.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.

(ii) (a) The inventories of the Company comprise of natural gas and stores & sparesparts. As explained to us having regard to the nature of the inventory of natural gasthe procedures followed by the management for estimation of natural gas quantities whichis based on volume of pipelines

and the volume of cascades containing the natural gas considering the standardtemperature and pressures are reasonable and no material discrepancies were noticed onsuch computation. Further in our opinion the management has conducted physicalverification of inventory of stores and spare parts at reasonable intervals during theyear and no material discrepancies between physical inventory and book records werenoticed on physical verification.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks or financialinstitutions on the basis of the security of current assets at any point of time duringthe year. Accordingly clause 3(ii)(b) of the Order is not applicable to the Company.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any investments in orprovided security to companies firms limited liability partnerships or any other partiesduring the year.

(a) The Company has not provided loans or provided advances in the nature of loans orstood guarantees or provided security to any other entity.

(A) Based on the audit procedures carried

out by us and as per the information and explanations given to us the Company has notgranted loans or advances and guarantees or security to subsidiaries joint ventures andassociates.

(B) Based on the audit procedures carried

out by us and as per the information and explanations given to us the Company has notprovided guarantees or security to parties other than subsidiaries joint ventures andassociates and granted advances in the nature of loans to other parties as below:

(Rs)
Particulars Advances in the nature of loans - Employee advances
Aggregate amount during the year - Other parties 7945466
Balance outstanding as at the balance sheet date - Other parties 4057272

(b) According to the information and explanations given to us and based on the auditprocedures conducted by us in our opinion the investment made and the terms andconditions of the grant of loans and advances in the nature of loans during the year areprima facie not prejudicial to the interest of the Company.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in our opinion in the case of loans andadvances in the nature of loans given the repayment of principal has been stipulated andthe repayments or receipts have been regular.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no overdue amount for more than ninetydays in respect of loans and advances in the nature of loans given.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no loan or advance in the nature ofloans granted falling due during the year which has been renewed or extended or freshloans granted to settle the overdue of existing loans or advances in the nature of loansgiven to same parties.

(f) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not granted any loans oradvances in the nature of loans either repayable on demand or without specifying any termsor period of repayment.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has neither made any investmentsnor has it given loans or provided guarantee or security as specified under Section 185 ofthe Companies Act 2013 ("the Act") and the Company has not provided anysecurity as specified under Section 186 of the Act. Further in our opinion the Companyhas complied with the provisions of Section 186 of the Act in relation to investmentsmade.

(v) The Company has not accepted any deposits or amounts which are deemed to bedeposits from the public. Accordingly clause 3(v) of the Order is not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations

given to us and on the basis of our examination of the records of the Company in ouropinion amounts deducted / accrued in the books of account in respect of undisputedstatutory dues including GST Provident fund Employees' State

Insurance Income-Tax Duty of Customs duty of excise Cess and other statutory dueshave been regularly deposited by the Company with the appropriate authorities;

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofGST Provident fund Employees' State Insurance Income- Tax Duty of Customs duty ofexcise Cess and other statutory dues were in arrears as at 31 March 2022 for a period ofmore than six months from the date they became payable.

(b) The dues outstanding in respect of GST Provident fund Employees' State InsuranceIncome-Tax Duty of Customs duty of excise Cess and other statutory dues on account ofany dispute are as under:

Name of the statute Nature of dues Gross amount due (Rs in Crores) Amount paid under protest against gross amount due (Rs in crores) Period to which the amount relates Forum where dispute is pending Remarks
Central Excise Act 1944 Central Excise duty & Penalty 4.84 2.42 2008-10 Commissioner of Central Excise Refer note 1 below
Income-tax Act 1961 Income Tax 0.84 - AY 2016-17 Income-tax Appellate Tribunal -
Income-tax Act 1961 Income Tax 2.48 - AY 2017-18 Commissioner of Income- tax (Appeals) -
Income-tax Act 1961 Income Tax 4.70 - AY 2018-19 Commissioner of Income- tax (Appeals) -
Uttar Pradesh Goods and Service Tax Act 2017 CGST & SGST 0.04 0.04 FY 2018-19 Commercial Tax department Uttar Pradesh
Finance Act 1994 CGST & SGST 19.55 FY2014-15 201617 Qtr ending June 2017 Commissioner - CGST

Notes:

1. The amount of Rs 2.42 crores disclosed as paid under protest initially demanded bythe Excise Department had been paid and had been expensed off in the Statement of Profitand Loss during the previous years. Subsequently a penalty of equal amount was alsoimposed on the Company post which the Company filed an appeal against the demand andpenalty.

(viii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income Tax Act 1961 as income during the year.

(ix) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not defaulted in therepayment of loans or borrowings or in the payment of interest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a willfuldefaulter by any bank or financial institution or government or government authority.

(c) In our opinion and according to the information and explanations given to us by themanagement no term loans were obtained.

(d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds were raised onshort-term basis which have been used for longterm purposes by the Company.

(e) According to the information and explanations given to us and on an overallexamination of the standalone financial statements of the Company we report that theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associate or joint venture.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries associate or joint venture.

(x) (a) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) Accordingly clause 3(x)(a) of the Order is notapplicable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x)(b) of the Order is not applicable.

(xi) (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in the Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 asprescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year while determining the nature timing and extent of our auditprocedures.

(xii) According to the information and explanations given to us the Company is not aNidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to usthe transactions with related parties are in compliance with Section 177 and 188 of theAct where applicable and the details of the related party transactions have beendisclosed in the standalone financial statements as required by the applicable accountingstandards.

(xiv) (a) Based on information and explanations provided to us and our auditprocedures in our opinion the Company has an internal audit system commensurate with thesize and nature of its business.

(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with its directors or personsconnected to its directors and hence provisions of Section 192 of the Act are notapplicable to the Company.

(xvi) (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clauses 3(xvi)(a) and 3(xvi) (b) of theOrder are not applicable.

(b) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

(c) According to the information and explanations provided to us during the course ofaudit the Group does not have any CICs.

(xvii) The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year.Accordingly clause 3(xviii) of the Order is not applicable.

(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the standalone financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that the Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the

facts 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) (a) In our opinion and according to the information and explanations given to usthere is no unspent amount under sub-section (5) of section 135 of the Act in respect ofother than ongoing project.

(b) The amount remaining unspent under sub-section (5) of section 135 of the Actpursuant to ongoing project has been transferred to special account in compliance with theprovisions of sub-section (6) of section 135 of the Act.

(xxi) According to the information and explanations given to us in respect of thefollowing associates company incorporated in India the CARO report relating to them hasnot been issued / made available by their auditor till the date of this principalauditors' report.

Name of the companies CIN Relationship
Central UP Gas Ltd. U40200UP2005P1C029538 Associate
Maharashtra Natural Gas Ltd. U11102PN2006PLC021839 Associate

 

For Datta Singla & Co.
Chartered Accountants
Firm's Registration No.: 006185N
Sd/-
Vishakha Harit
Partner
Membership No.:096919
UDIN: 22096919AJEH4B6333
Place: New Delhi
Date: 18 May 2022

Annexure B to the Independent Auditors' report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

Independent Auditor's Report as required by the Comptroller and Auditor General ofIndia vide directions issued under Section 143(5) of the Companies Act 2013 (the 'Act')

Based on the audit procedures performed and taking into consideration the informationexplanations examinations of records and written representations given to us by themanagement in the normal course of audit we report to the best of our knowledge andbelief that:

S. Directions no. Response Impact on financial statement
1. Whether the Company has system in place to process all the accounting transactions through the IT systemRs If yes the implications of processing of accounting transaction outside IT system on the integrity of the accounts along with the financial implications if any may be stated. The Company has system in place to process all the accounting transactions through the IT system. Further as per the information and explanations given to us by the management there are no accounting transactions that are processed outside the IT system by the Company which impact the integrity of the accounts. Not applicable.
2 Whether there is any restructuring of an existing loan or cases of waiver/ write off of debts/loans/ interest etc. made by a lender to the Company due to the Company's inability to repay the loanRs If yes the financial impact may be stated. Whether such cases are properly accounted for. As per information and explanations given to us and based on the examination of records the Company did not have any debts/loans payable to any lender as at and during the year ended 31 March 2022 and hence reporting under this direction is not applicable. Not applicable.
3. Whether funds (grants/subsidy) received/ receivable for specific schemes from Central/ State Agencies were properly accounted for/ utlilized as per its terms and conditionsRs List the case of deviation. As per information and explanations given to us and based on the examination of records funds receivable as at 31March2022 for specific schemes from the Central/ State Agencies have been properly accounted for. No deviation has been observed. Not applicable.

 

For Datta Singla & Co.
Chartered Accountants
Firm's Registration No.: 006185N
Sd/-
Vishakha Harit
Partner
Membership No.:096919
UDIN: UDIN: 22096919AJEHHB6333
Place: New Delhi
Date: 18 May 2022

Annexure C to the Independent Auditors' report

(Referred to in paragraph 3(A)(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013

Opinion

We have audited the internal financial controls with reference to standalone financialstatements of Indraprastha Gas Limited ("the Company") as of 31 March2022 in conjunction with our audit of the standalone financial statements of the Companyas at and for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols were operating effectively as at 31 March 2022 based on the internal financialcontrols with reference to standalone financial statements criteria 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 (the "Guidance Note").

Management's and Board of Directors' Responsibilities for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. ThoseStandards and the Guidance Note require

that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tostandalone financial statements were established and maintained and whether such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of such internalfinancial controls assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the standalone financial statementswhether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to Standalone FinancialStatements

A company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to standalone financial statements include thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone 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 have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone 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 standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

For Datta Singla & Co.
Chartered Accountants
Firm's Registration No.: 006185N
Sd/-
Vishakha Harit
Partner
Membership No.:096919
UDIN: UDIN: 22096919AJEHHB6333
Place: New Delhi
Date: 18 May 2022

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