To the Members of KEC International Limited
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
1. We have audited the accompanying standalone financial statements of KECInternational Limited ("the Company") which includes 26 jointly controlledoperations consolidated on a proportionate basis (refer Note 3.3 to the attachedstandalone financial statements) and return of Company's 42 branches at Abu DhabiAfghanistan Algeria Bangladesh Bhutan Burundi Burkina Faso Cameroon Congo EgyptEthiopia Georgia Ghana Guinea Indonesia Ivory Coast Jordan Kazakhstan KenyaKuwait Laos Lebanon Libya Malaysia Mali Mozambique Nepal Nicaragua Nigeria OmanPapua New Guinea Philippines Senegal Sierra Leone South Africa Sri Lanka TanzaniaThailand Togo Tunisia Uganda and Zambia which comprise the balance sheet as at March31 2021 and the statement of Profit and Loss (including Other Comprehensive Income)statement of changes in equity and statement of cash flows for the year then ended andnotes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"standalone financial statements").
2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year then ended.
BASIS FOR OPINION
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards 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 theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained and the audit evidence obtained by theother auditors in terms of their reports referred to in sub-paragraph 13 of the OtherMatters paragraph below is sufficient and appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
4. Key audit matters are those matters that in our professional judgement were ofmost significance in our audit of the standalone financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
|Key audit matter ||How our audit addressed the key audit matter |
|Estimation of contract cost and revenue recognition ||Our procedures over the recognition of construction revenue included the following: |
|(Refer note 3.5 and 37 to the standalone financial statements) ||Understood and evaluated the design and tested effectiveness of key internal financial controls including those related to review and approval of estimated project cost and review of provision for estimated loss by the authorised representatives. |
|Contract revenue amounting to Rs.6048.71 crore for engineering procurement and construction contracts which usually extends over a period of 2-3 years contract prices are fixed / subject to price variance clauses. ||For sample of contracts we obtained the percentage of completion calculations agreed key contractual terms back to signed contracts tested the mathematical accuracy of the cost to complete calculations and re-performed the calculation of revenue recognized during the year based on the percentage of completion. |
|The contract revenue is measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs except where this would not be representative of the stage of completion. ||For costs incurred to date we tested samples to appropriate supporting documentation and performed cut off procedures |
|This method requires the Company to perform an initial assessment of total estimated cost and further reassess the total construction cost at each reporting period to determine the appropriate percentage of completion. ||To test the forecasted cost to complete we obtained the breakdown of forecasted costs and tested elements of the forecast by obtaining executed purchase orders and agreements evaluating reasonableness of management's judgement (including those related to contract performance under the lockdown and other restrictions imposed by Government of India) / and assumptions using past trends and comparing the estimated costs to the actual costs incurred for the similar completed projects. |
|We considered the estimation of construction contract cost as a key audit matter given the involvement of significant management judgement which has consequential impact on revenue recognition. ||Checked the implications and related disclosures in the standalone financial statements pursuant to applicability of Ind AS 115. |
|This matter was also reported as Key audit Matter in relation to a Branch in Sri Lanka and a Jointly controlled operation in Saudi Arabia by the respective auditors. ||Based on the procedures performed above we considered manner of estimation of contract cost and recognition of revenue to be reasonable. |
|Valuation of accounts receivable in view of risk of credit losses ||Our audit incorporated the following procedures with regards to provisioning of receivables; |
|(Refer to Note 9 and 15 to the standalone financial statement) ||Understood and evaluated the accounting policy of the company. |
|Accounts receivable amounting to ` 5452.17 crore (including retention receivable) is a significant item in the Company's standalone financial statements as at March 31 2021 and assumptions used for estimating the credit loss on receivables is an area which is influenced by management's judgement. ||We evaluated the design and tested the operating effectiveness of key controls in relation to determination of estimated credit loss. |
|The Company makes an assessment of the estimated credit losses basis credit risk project status past history latest discussion/ correspondence with the customer. ||Inquired with senior management regarding status of collectability of the receivable For material balances the basis of provision was discussed with the audit committee. |
|Given the relative significance of these receivables to the standalone financial statements and the nature and extent of audit procedures involved to assess the recoverability of receivables we determined this to be a key audit matter. ||Assessed and challenged the information used by the Management to determine the expected credit losses by considering credit risk of the customer cash collection performance against historical trends and the level of credit loss charges over time; |
| ||Based on our work as stated above no significant deviations were observed in respect of management's assessment of valuation of accounts receivables. |
5. The Company's Board of Directors are responsible for the other information. Theother information comprises the information included in the Board report but does notinclude the standalone financial statements and our auditor's report thereon. The Boardreport is expected to be made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other informationand we will 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 Board report if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take appropriate action as applicable under the relevant laws andregulations.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONEFINANCIAL STATEMENTS
6. The Company's Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
7. In preparing the Standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
8. 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 auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith 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.
9. As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism 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 the company hasadequate internal financial controls with reference to standalone financial statements inplace 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.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone 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 ourauditor's 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.
Obtain sufficient appropriate audit evidence regarding the financial informationof the branches or jointly controlled operations or business activities within the Companyto express an opinion on the standalone financial statements. The other branches orjointly controlled operations included in the standalone financial statements which havebeen audited by other auditors such other auditors remain responsible for the directionsupervision and performance of the audits carried out by them. We remain solelyresponsible for our audit opinion.
10. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant de_ciencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone 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 public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
13. We did not audit the financial statements/financial information of 26 jointlycontrolled operations (refer Note 3.3 and 48 to the attached standalone financialstatements) and 42 branches (Abu Dhabi Afghanistan Algeria Bangladesh Bhutan BurundiBurkina Faso Cameroon Congo Egypt Ethiopia Georgia Ghana Guinea Indonesia IvoryCoast Jordan Kazakhstan Kenya Kuwait Laos Lebanon Libya Malaysia MaliMozambique Nepal Nicaragua Nigeria Oman Papua New Guinea Philippines SenegalSierra Leone South Africa Sri Lanka Tanzania Thailand Togo Tunisia Uganda andZambia) whose financial statements reflect total assets of Rs.3280 crore and netliabilities of Rs.330 crore as at March 31 2021 total revenue of
` 3002 crore profit after tax (net) of Rs.126 crore total comprehensive Income(comprising of profit and other comprehensive loss (net)) of Rs.119 crore and cashoutflows (net) of Rs.19 crore for the year ended on that date.
14. These financial statements/financial information have been audited by otherauditors whose reports have been furnished to us by the Management and our opinion on theStatement insofar as it relates to the amounts and disclosures included in respect ofthese branches and jointly controlled operations is based solely on the reports of theother auditors. The Company's management has converted the financial statements of suchbranches and joint operations to comply with the accounting principles generally acceptedin India. We have audited these conversion adjustments made by the Company's management.Our opinion in so far as it relates to the balances and affairs of such branches and jointoperations is based on the report of other auditors and the conversion adjustmentsprepared by the management of the Company and audited by us.
15. Our opinion on the Standalone financial statements and our report on Other Legaland Regulatory Requirements below is not modified in respect of the above matters withrespect to our reliance on the work done and the reports of the other auditors.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
16. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure B a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
17. 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.
c) The reports on the accounts of the branch offices of the Company audited underSection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.
d) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and Cash Flow Statement dealt with by thisReport are in agreement with the books of account and with the returns received from thebranches not visited by us.
e) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.
f) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312021 from being appointed as a director in terms of Section 164 (2) of theAct.
g) 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 A".
h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 55 to the standalone financialstatements;
ii. The Company has made provision as at March 31 2021 as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts as at March 312021 Refer Note20 to the standalone financial statements;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312021.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended March 31 2021.
18. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.
ANNEXURE A TO
INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 17(g) of the Independent Auditor's Report of even date to themembers of KEC International Limited on the standalone financial statements for the yearended March 31 2021
REPORT ON THE INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE FINANCIALSTATEMENTS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE ACT
1. We have audited the internal financial controls with reference to standalonefinancial statements of KEC International Limited ("the Company") as of March31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date which includes the internal financial controlsover financial reporting of the Company's 42 branches.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
3. 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 on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing deemed to be prescribed under section 143(10) of the Act to the extent applicableto an audit of internal financial controls both applicable to an audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance Noterequire 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 was established and maintained and if such controlsoperated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to standalone financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to standalone financial statements included obtaining an understanding ofinternal financial controls with reference to standalone financial statements assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.
5. We believe that the audit evidence we have obtained and the audit evidence obtainedby the other auditors in terms of their reports referred to in the Other Matters paragraphbelow is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls system with reference to standalone financialstatements.
MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO STANDALONE FINANCIALSTATEMENTS
6. 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 authorizations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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
7. 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.
8. In our opinion the Company including 42 branches has in all material respects anadequate internal financial controls system with reference to standalone financialstatements and such internal financial controls with reference to standalone financialstatements were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
9. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy andoperating effectiveness of the internal financial controls with reference to standalonefinancial statements insofar as it relates to 42 Branches of the Company is based on thecorresponding reports of the auditors of such Branches of the Company. Our opinion is notqualified in respect of this matter.
ANNEXURE B TO
INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 16 of the Independent Auditor's Report of even date to themembers of KEC International Limited on the Standalone financial statements as of and forthe year ended March 31 2021.
i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.
(c) The title deeds of immovable properties as disclosed in Note 5 on fixed assets tothe financial statements are held in the name of the Company except in respect ofIndustrial plots situated at Gandhinagar Gujarat admeasuring to 4891.45 sq. metersIndustrial plot situated at Mysore Karnataka admeasuring to 80773 sq. meters land andbuilding situated at Jabalpur Madhya Pradesh admeasuring to 9000 sq. feet a fiat atWorli Mumbai admeasuring to 1088.22 sq. feet having Gross carrying amount aggregating26.35 Crore and Net carrying amount aggregating 25.67 Crore as at Balance Sheet date thetitles of which have been transferred to and vested in the Company pursuant to schemes ofamalgamation/ arrangement in the earlier years and the procedural formalities for transferin the name of the Company in the relevant documents are in process.
ii. The physical verification of inventory excluding stocks with third parties havebeen conducted at reasonable intervals by the Management during the year. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been appropriately dealt with in the books of accounts.
iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the
(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of goods and service tax which have not beendeposited on account of any dispute. The particulars of dues of income tax sales taxservice tax duty of customs duty of excise Entry Tax and value added tax as at March31 2021 which have not been deposited on account of a dispute are as follows:
|Name of the statute ||Nature of dues ||Amount ( Rs.in Crore) ||Period to which the amount relates ||Forum where the dispute is pending |
|The Central Sales Tax Act 1956 and Local Sales Tax Acts ||Sales tax and value added tax ||0.43 ||2007-2008 to 2013-2014 ||Appellate Tribunal |
| || ||4.80 ||1994-1995 to 1997-1998 and 2008-2009 to 2014-2015 ||Rajasthan Tax Board Ajmer |
| || ||26.55 ||2002-2003 to 2014-2015 ||Revisionary Board of Madhya Pradesh & West Bengal |
| || ||20.02 ||2002-2003 to 2016-2017 ||Appellate Authority up to Commissioner's level |
|The Finance Act 1994 ||Service Tax ||177.61 ||2004-2005 to 2016-2017 ||Customs Excise and Service Tax Appellate Tribunal (CESTAT) |
|The Customs Act 1962 ||Customs Duty ||0.60 ||1995-1996 ||High Court |
|The Central Excise Act 1944 ||Excise Duty ||1.61 ||1994-1995 to 2016-2017 ||Appellate Authority up to Commissioner's level |
| || ||24.08 ||2006-2007 to 2016 -2017 ||Customs Excise and Service Tax Appellate Tribunal (CESTAT) |
| || ||1.44 ||2005-2006 to 2016-2017 ||High Court |
| || ||0.13 ||2008-2009 to 2009-2010 ||Supreme Court of India |
|The Income- Tax Act 1961 || ||4.02 ||Assessment Year 2015-2016 ||Commissioner of Income Tax |
|The Rajasthan Tax on ||Entry Tax _ ||5.98 ||1995-1996 2004-2005 ||Appellate Authority-I |
|Entry of Goods into Local Areas Act 1999 || || ||2008-2009 to 2013-2014 ||Commercial Taxes Jaipur. |
|Entry Tax Act 1976 Madhya Pradesh ||Entry Tax _ ||0.23 ||2001-2002 to 2002-2003 2009-2010 to 2011- 20122015-2016 ||Appellate Authority up to Deputy Commissioner's level Board of Appeals Madhya Pradesh._ |
|Entry Tax Gurgaon ||Entry Tax _ ||1.25 ||2013-14 to 2016-17 ||Sales Tax Appellate Authority |
|Goods Service Tax ||Goods Service Tax ||0.08 ||2018-19 to 2019-2020 ||GST Appeal |
* Above numbers are net of amounts paid under protest
Note: For above purpose only statutory dues payable in India have been considered.
viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any bank as at the balance sheet date. Further as the Company does not have any loan orborrowings from Government and financial institutions nor has it issued any debentures asat balance sheet date the provision of Clause 3(viii) of the Order are not applicable tothe company to that extent. ix. The Company has not raised any moneys by way of initialpublic offer further public offer (including debt instruments) and term loans.Accordingly the provisions of Clause 3(ix) of the Order are not applicable to theCompany.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement. xi. The Company has paid/ provided for managerial remuneration in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard (Ind AS) 24 Related Party Disclosures specified under Section 133 ofthe Act.
xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company. xvi. The Company is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions ofClause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016 Chartered Accountants
| ||Sarah George |
| ||Partner |
|Place: Mumbai ||Membership Number: 045255 |
|Date: May 11 2021 ||UDIN: 21045255AAAAIM6416 |