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Kakatiya Cement Sugar & Industries Ltd.

BSE: 500234 Sector: Industrials
NSE: KAKATCEM ISIN Code: INE437B01014
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VOLUME 2949
52-Week high 301.20
52-Week low 175.30
P/E 338.02
Mkt Cap.(Rs cr) 165
Buy Price 211.75
Buy Qty 4.00
Sell Price 212.80
Sell Qty 4.00
OPEN 211.50
CLOSE 212.80
VOLUME 2949
52-Week high 301.20
52-Week low 175.30
P/E 338.02
Mkt Cap.(Rs cr) 165
Buy Price 211.75
Buy Qty 4.00
Sell Price 212.80
Sell Qty 4.00

Kakatiya Cement Sugar & Industries Ltd. (KAKATCEM) - Auditors Report

Company auditors report

To

The Members of Kakatiya Cement Sugar & Industries Limited Report on the Audit ofthe Financial Statements Opinion

We have audited the financial statements of Kakatiya Cement Sugar & IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31 March2022 the Statement of Pro t and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of a airs of the Company as at March31 2022 and its profit total comprehensive income changes in equity and its cash flowsfor 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 Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance 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 Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters in our auditof the Company for the year ended 31st March 2022.

Sr. No. Key Audit Matter Auditor's Response
1.
Evaluation of uncertain tax positions Principal Audit Procedures
The Company has material uncertain tax positions including matters under dispute which involves signi cant judgment to determine the possible outcome of these disputes. Obtained details of completed tax assessments and demands for the year ended 31st March 2022 from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes.
Refer Notes 32 to the Financial Statements Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2021 to evaluate whether any change was required to management's position on these uncertainties.
Net Realizable Value of Finished Goods Principal Audit Procedures
Finished goods inventory are valued at lower of cost and net realizable value (estimated selling price less estimated cost to sell). Considering that there is always volatility in the selling price of sugar which is dependent upon various market conditions determination of the net realizable value involves signi cant management judgement and therefore has been considered as a key audit matter. Obtained an understanding of the determination of the net realizable values of the commodities and assessed and tested the reasonableness of the signi cant judgements applied by the management.
Evaluated the design of internal controls relating to the valuation of finished goods (including commodities) and also tested the operating e ectiveness of the aforesaid controls. Compared the actual realization after the year end / latest realization to assess the reasonableness of the net realisable value that was estimated and considered by the management.
The total value of finished goods of sugar as at 31st March 2022 is Rs. 3297.52 lakhs. Compared the actual costs incurred to sell after the year end / based on the latest sale transaction to assess the reasonableness of the cost to sell that was estimated and considered by the management.
Compared the cost of the finished goods with the estimated net realisable value and checked if the nished goods were recorded at net realisable value where the cost was higher than the net realisable value.
Assessed the appropriateness of the disclosure in the financial statements in accordance with the applicable financial reporting framework.

Information Other than Financial Statements (Other Information)

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Directors Report but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance or conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be in uenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 financial statements of theyear ended 31st March 2022 and are therefore the key audit matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication

Report on Other Legal and Regulatory Requirements

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Pro t and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A".

(g) In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements (Refer note 32);

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

iii. There is no delay in transferring the amounts which were required to betransferred to the Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Bene ciaries") or provide any guarantee security or the likeon behalf of the Ultimate Bene ciaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("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 Bene ciaries") or provide any guarantee security or the like onbehalf of the Ultimate Bene ciaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

v. (a) As stated in note No:36 to the financial statements the dividend proposed in theprevious year declared and paid by the company during the year is in accordance withsection 123 of the Act as applicable.

(b) The Board of Directors of the Company have proposed dividend for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The amountof dividend proposed is in accordance with section 123 of the Act as applicable

2. As required by the Companies (Auditor's Report) Order 2020 (‘the Order')issued by the Central Government in terms of Section 143 (11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

Place : Hyderabad For Ramanatham & Rao
Date : 25.05.2022 Chartered Accountants
(FRN: S-2934)
C. Kameshwar Rao
Partner
Membership No.024363
UDIN:22024363AJNZPQ3131

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal RegulatoryRequirements' section of our report to the Members of the Company of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KakatiyaCement Sugar & Industries Limited ("the Company") as of 31 March 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether 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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place : Hyderabad For Ramanatham & Rao
Date : 25.05.2022 Chartered Accountants
(FRN: S-2934)
C. Kameshwar Rao
Partner
Membership No.024363
UDIN: 22024363AJNZPQ3131

Annexure "B" to the Independent Auditor's Report

With reference to Paragraph 2 under ‘Report on Other Legal RegulatoryRequirements' section of our report to the Members of the Company we report that

i. In respect of the Company's Property Plant and Equipment and Intangible Assets:

(a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

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

(b) The fixed assets have been physically veri ed by the management in a periodicalmanner which in our opinion is reasonable having regard to the size of the Company andthe nature of its business. No material discrepancies were noticed on such physical verication

(c) Based on our examination of registered sale deeds and other documents the titledeeds of all the immovable properties disclosed in the financial statements are held inthe name of the Company.

(d) The Company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.

(e) No proceedings have been initiated during the year or are pending against theCompany as at 31st March 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii. (a) Physical veri cation of inventory has been conducted at reasonable intervals bythe management and in our opinion the coverage frequency and procedure of such verication is reasonable and adequate in relation to the size of the Company and the nature ofits business. The discrepancies noticed on veri cation between the physical stocks and thebook records were not exceeding 10% or more in the aggregate for each class of inventory.

(b) The Company has not availed working capital facility from banks hence clause 3(ii)of the order is not applicable.

iii. During the year the Company has not made investments not provided any guaranteeor security or granted any loans or advances in the nature of loans secured or unsecuredto companies firms Limited Liability Partnerships or any other parties and hencereporting under clause 3(iii) of the Order is not applicable.

iv. 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. Accordingly paragraph 3 (iii) (a) to (c) of the said Order is notapplicable to the Company.

v. The Company has not accepted any deposit or amounts which are deemed to be deposits.Hence reporting under clause 3(v) of the Order is not applicable.

vi. We have broadly reviewed the cost records maintained by the Company as prescribedunder sub-section (1) of section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained.

vii. In respect of statutory dues:

a) In our opinion the Company has generally been regular in depositing undisputedstatutory dues including Goods and Services tax Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax duty of Customs duty of Excise ValueAdded Tax Cess and other material statutory dues applicable to it with the appropriateauthorities.

There were no undisputed amounts payable in respect of Goods and Service tax ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax duty of Custom dutyof Excise Value Added Tax Cess and other material statutory dues in arrears as at March31 2022 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us and records of the Companyexamined by us the particulars of income tax value added Tax customs duty etc. as at31st March 2022 which have not been deposited on account of any dispute pending are asunder:

Name of the Statute Nature of dues Amount ( in Lakhs) Period to which the amount relates Forum where dispute is pending
Income-Tax Act 1961 Income Tax 12.42 Assessment Years High Court of Telangana
1999-2000
2000-2001
2001-2002
Income-Tax Act 1961 Income Tax 2581.75 Assessment year 2009-10 ITAT Hyderabad
Income Tax Act 1961 Income Tax 152.50 Assessment Year 2011-12 ITAT Hyderabad
Income Tax Act 1961 Income Tax 120.68 Assessment Year 2012-13 ITAT Hyderabad
Income-Tax Act 1961 Income Tax 969.26 Assessment Year 2016-17 ITAT Hyderabad
Sales Tax Sale Tax 188.56 Assessment Year 2001-02 2002-03 High Court of Telangana
VAT Act 2005 Sales Tax 32.42 Financial Year 2012-13 Appellate Tribunal Hyderabad
VAT Act 2005 Sales Tax 30.22 Financial Year 2013-14 Appellate Tribunal Hyderabad
VAT Act 2005 Sales Tax 173.33 Financial Year 2014-15 Additional Joint Commissioner Hyderabad
Customs Act 1962 Customs Duty 65.77 Financial year 2012-2013 Additional Commissioner Customs
Telangana State Electricity Board Electricity Duty 319.57 2003-04 to 2012-13 Supreme Court
Telangana State Electricity Board Wheeling Charges 464.13 2003-04 to 2012-13 High Court of Telangana

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

ix. a) The Company has not defaulted in repayment of loans or other borrowings and inthe payment of interest thereon to any lender.

b) The Company has not been declared wilful defaulter by any bank or financialinstitution or other lender.

c) According to the information and explanations given to us and procedures performedby us we report that the Company has applied the term loans for the purpose for which theloans were obtained.

d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

e) The Company does not have any Subsidiaries associates or Joint Ventures and hencereporting under clause 3(ix)(e) and (f) of the Order is not applicable.

x. a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the order is not applicable.

b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally convertible)and hence reporting under clause 3(x)(b) of the order is not applicable.

xi. a) In our opinion and based on our examination and enquiries with the managementno fraud by the Company and no material fraud on the Company has been noticed or reportedduring the year.

b) No report under sub-section (12) of section 143 of the Companies Act is required tobe led in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government during the year and upto the date of this report.

c) As represented to us by the management there are no whistle blower complaintsreceived by the company during the year.

xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii)(a) to(c) of the Order is not applicable.

xiii. In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsas required by the applicable accounting standards.

xiv. (a) In our opinion the Company has adequate internal audit system commensuratewith the size of the Company and nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

xv. In our opinion during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b)and (c) of the Order is not applicable.

b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

xviii.There has been no resignation of the statutory auditors of the Company during theyear.

xix. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx. (a) There are no unspent amounts towards Corporate Social Responsibility (CSR) onother than ongoing projects requiring a transfer to a Fund specified in Schedule VII tothe Companies Act in compliance with second proviso to sub-section (5) of Section 135 ofthe said Act. Accordingly reporting under clause 3(xx)(a) of the Order is not applicableto the Company for the year.

(b) In respect of ongoing projects there are no amounts required to be transferred tounspent Corporate Social Responsibility (CSR) account as at the end of the previousfinancial year and for the current financial year. Accordingly reporting under clause3(xx)(b) of the Order is not applicable to the Company.

For Ramanatham & Rao
Place : Hyderabad
Chartered Accountants
Date : 25.05.2022
(FRN: S-2934)
C. Kameshwar Rao
Partner
Membership No.024363
UDIN: 22024363AJNZPQ3131

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