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KEI Industries Ltd.

BSE: 517569 Sector: Engineering
NSE: KEI ISIN Code: INE878B01027
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OPEN 1470.00
PREVIOUS CLOSE 1492.25
VOLUME 20920
52-Week high 1611.00
52-Week low 801.55
P/E 31.69
Mkt Cap.(Rs cr) 13,086
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1470.00
CLOSE 1492.25
VOLUME 20920
52-Week high 1611.00
52-Week low 801.55
P/E 31.69
Mkt Cap.(Rs cr) 13,086
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KEI Industries Ltd. (KEI) - Auditors Report

Company auditors report

To The Members of KEI INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of KEIINDUSTRIES LIMITED ("the Company") which comprise the Standalone BalanceSheet as at 31st March 2022 and the Standalone Statement of Profit and Loss(including Other Comprehensive Income) the Standalone statement of Cash Flows theStandalone Statement of Changes in Equity for the year then ended notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as the standalone financial statements).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31st March2022 and its profit total comprehensive income its cash flows and changes in equity forthe year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor?sResponsibility for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI?s Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. 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. We have determined the matters described below to bethe key audit matters to be communicated in our report.

S. No. Key Audit Matter Auditor?s Response
1 Revenue - Performance Obligations Audit Procedure Applied
The Company is in the business of manufacturing of various types of Cables SS Wires and sells to customers both through institutional and dealer network globally. Our audit included but was not limited to the following procedures:
Sales contracts contain various performance obligations and other terms and the determination of when significant performance obligations have been met varies albeit a specific point in time can often be established. Mapped and evaluated selected systems and processes for revenue recognition and tested a sample of key controls.
As a consequence the Company has analysed its various sales contracts and concluded on the principles for deciding in which period or periods the Company?s sales transactions should be recognized as revenue. Selecting a sample from each type of the contracts with the customers and testing the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price.
Tested sample of sales transactions for compliance with the company?s accounting principles.
Read and assessed the disclosure made in the financial statements for assessing compliance with disclosure requirements.
2 Revenue – Variable Consideration Audit Procedure Applied
Revenue is recognized in accordance with Ind AS 115 net of discounts incentives and rebates accrued by the Company?s customers based on sales. Our audit included but was not limited to the following procedures:
The company uses sales agreement terms & conditions and historical trends to estimate discounts. At the reporting date the company estimates and accrues for discounts and rebates they consider as having been incurred but not yet paid. Understanding the policies and procedures applied to revenue recognition including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company.
Carrying out substantive analytical procedures analysing the actual performance of revenue and cost of sales related to discounts incentives and rebates etc.
Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
Analysing and discussing with management significant contracts including contractual terms and conditions related to discounts incentives and rebates used in the related estimates.
Reviewing disclosures included in the notes to the accompanying financial statements.
S. No. Key Audit Matter Auditor?s Response
3 Revenue – Over the Period Recognition Revenue Audit Procedure Applied
The Company is engaged in execution of Engineering Procurement and Construction projects (EPC) for survey supply of materials design erection testing & commissioning on a turnkey basis. Our audit included but was not limited to the following procedures:
Revenue is recognized in accordance with Ind AS 115 and Performance obligations in such cases are satisfied over time and accordingly revenue is recognised over the time in such cases. Method used to recognise revenue is also a Key Audit Matter along with measuring progress towards complete satisfaction of performance obligations. We tested the relevant internal controls used to ensure the completeness accuracy and timing of revenue recognised including controls over the degree of completion of EPC projects.
We evaluated and analysed the significant judgements and estimates made by the management and also reviewed sample contracts with customers to assess whether the method of recognition of revenue is relevant and is consistent with the accounting policies of the company.
Selecting a sample of contracts for each of the key scope in components and evaluated them along with supporting evidence to determine whether various elements of revenue recognition are assessed in accordance with the principles prescribed under Ind AS 115.
Tested samples of un-invoiced revenue entries with reference to the reports that records the costs incurred.
Read and assessed the disclosure made in the financial statements for assessing compliance with disclosure requirements.

Information Other than the Standalone Financial Statements andAuditor?s Report thereon

The Company?s Board of Directors are responsible for the otherinformation. The other information comprises the letter from the managementDirector?s Report Management Discussion and Analysis Business Responsibility Reportand Corporate Governance Report but does not include the standalone financial statementsand our auditor?s report thereon. The letter from the management Director?sReport Management Discussion and Analysis Business Responsibility Report and CorporateGovernance Report are expected to be made available to us after the date of thisauditor?s report. Our opinion on the standalone financial statements does not coverthe other information and we will not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. When we read the letter from the managementDirector?s Report Management Discussion and Analysis Business Responsibility Reportand Corporate Governance Report if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance asrequired under SA 720 ‘The Auditor?s responsibilities Relating to OtherInformation?.

Management?s Responsibility for the Standalone FinancialStatements

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. In preparing the standalone financialstatements management is responsible for assessing the Company?s ability to continueas a going concern disclosing as applicable matters related to going concern and usingthe going concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so. The Board ofDirectors are also responsible for overseeing the Company?s financial reportingprocess.

Auditor?s Responsibility for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.As part of an audit in accordance with SAs we exercise professional judgment and maintainprofessional scepticism throughout the audit. We also:

l Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

l Obtain an understanding of internal financial control relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

l Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.

l Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

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

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that:

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

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

c. The Standalone Balance Sheet the Standalone Statement of Profitand Loss (including Other Comprehensive Income) the Standalone Statement of Cash Flows andStandalone Statement of Changes in Equity dealt with by this Report are in agreement withthe relevant books of account.

d. In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct read with Companies (Indian Accounting Standards) Rules 2015 as amended.

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

f. With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure A. Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company?s internalfinancial controls over financial reporting.

g. With respect to the other matters to be included in theAuditor?s Reportinaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 as amended in our opinion and to the best of our information and according to theexplanations given to us:

I. The Company has disclosed the impact of pending litigations asat 31st March 2022 on its financial position in its standalone financialstatements –Refer Note No- 36 of standalone financial statements.

II. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses during the yearended 31st March 2022.

III. There has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company during theyear ended 31st March 2022.

IV. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been received by the Company from any person or entity including foreignentity ("Funding Parties") with the understanding whether recorded in writingor otherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

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

V. As stated in Note No. 16 (g) to the standalone financialstatements. The interim dividend declared and paid by the Company during the year anduntil the date of this report is in compliance with Section 123 of the Act.

2. As required by the Companies (Auditor?s Report) Order 2020issued by the Central Government in terms of subsection (11) of Section 143 of the Act("the Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in Annexure B a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

3. In our opinion and as per information and explanations given tous the managerial remuneration for the year ended March 31 2022 has been paid / providedby the Company to its directors in accordance with the provisions of section 197 of theAct.

For PAWAN SHUBHAM & CO.
ICAI Firm Registration Number: 011573C Chartered Accountants
Place of Signature: New Delhi Partner CA Pawan Kumar Agarwal
Date: 09th May 2022 Membership Number: 092345
UDIN: 22092345AIRBQG5169

ANNEXURE "A" TO THE INDEPENDENT AUDITOR?S REPORT

Referred to in paragraph 1(f) of the Independent Auditors? Reportof even date to the members of KEI INDUSTRIES LIMITED on the Standalone FinancialStatements for the year ended 31st March 2022 Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financialreporting of KEI Industries Limited ("the Company") as of 31st March2022 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management?s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal controls over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company?s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors? Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company?s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company?s internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany?s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For PAWAN SHUBHAM & CO.
ICAI Firm Registration Number: 011573C Chartered Accountants
Place of Signature: New Delhi Partner CA Pawan Kumar Agarwal
Date: 09th May 2022 Membership Number: 092345
UDIN: 22092345AIRBQG5169

ANNEXURE B TO INDEPENDENT AUDITORS? REPORT

Referred to in paragraph 2 of the Independent Auditors? Report ofeven date to the members of KEI INDUSTRIES LIMITED on the Standalone Financial Statementsas of and for the year ended 31st March 2022

I. (a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment and relevant details of right of use assets.

(B) The Company has maintained proper records showing fullparticulars of intangible assets.

(b) The Property Plant and Equipment were physically verifiedduring the year by the Management in accordance with a regular programme of verificationwhich in our opinion provides for physical verification of all the Property Plant andEquipment and right of use assets at reasonable intervals. According to the informationand explanation given to us no material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties (other than propertieswhere the company is the lessee and the lease agreements are duly executed in favour ofthe lessee) as disclosed in the financial statements included under Property Plant andEquipment are held in the name of the Company as at the balance sheet date.

(d) The Company has not revalued any of its Property Plant andEquipment (including right of use assets) and intangible assets during the year.

(e) No proceedings have been initiated during the year or arepending against the Company as at March 31 2022 for holding any benami property under theBenami Transactions (Prohibition) Act 1988 (as amended in 2016) and rules madethereunder.

II. (a) The physical verification of inventory (excluding stockswith third parties) has been conducted at reasonable intervals by the Management duringthe year. In respect of inventory lying with third parties these have substantially beenconfirmed by them. The discrepancies noticed on physical verification of inventory ascompared to book records were not material and has been properly dealt with in the booksof accounts.

(b) The Company has been sanctioned working capital limits inexcess of ` 5 crore in aggregate during the year from banks on the basis of security ofcurrent assets. The quarterly returns or statements filed by the company with such banksare in agreement with the books of account of the Company.

III. The company has granted unsecured loans to companies and toother parties during the year. (a) The company has provided unsecured loans duringthe year:-

(A) The aggregate amount during the year and balance outstandingat the balance sheet date with respect to such loans to subsidiary joint venture andassociate is given below:-

(Rs. in Millions)

Name Relationship Loans given during the year Balance outstanding as at Balance Sheet date
KEI Cables Australia Pty Ltd Subsidiary 1.13 3.38
KEI Cables SA Pty Ltd Associate - 10.75

(B) The company has not granted any loans during the year toparties other than subsidiary joint venture and associate.

(b) In our opinion the terms and conditions of the grant of loansduring the year are prima facie not prejudicial to the Company?s interest.

(c) Loans to subsidiary company and associate company are repayableon demand alongwith interest wherever applicable. The company has made provision for partimpairment of principal given to associate. Loan given to subsidiary company has beenfully impaired hence no interest charged from subsidiary. Since loan and interest duethereon has not been demanded by the company there is no overdue as at the balance sheetdate.

(d) In respect of loans granted by the Company there is no overdueamount remaining outstanding as at the balance sheet date since the loans are repayable ondemand and company has not made any demand.

(e) No loan granted by the Company which has fallen due during theyear has been renewed or extended or fresh loans granted to settle the overdue ofexisting loans given to the same parties.

(f) The Company has granted loans repayable on demand to subsidiaryand associate company. The required details are as under:

(Rs. in Millions)

Particulars Promoters Directors KMP Subsidiary and Associate Other Related Parties under 2(76) of the Act
Aggregate amount of loans where:
- Loan is repayable on demand (A) - - - 14.13 -
- Loan Agreement does not specify any terms or period of repayment (B) - - - - -
Total (A+B) - - - 14.13 -
Percentage of loans to the total loans - - - 56% -

(Refer Note No. 8 of standalone financial statements).

IV. In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of Section 185 and186 of the Companies Act 2013 in respect of the loans and investments made andguarantees and security provided by it.

V. In respect of deposits accepted by the company or amounts whichare deemed to be deposits the directives issued by the Reserve Bank of

India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act and the rules made thereunder where applicablehave been complied with. According to the information and explanations given to us noorder has been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any Court or any other Tribunal on the Company in respect of theaforesaid deposits.

VI. Pursuant to the rules made by the Central

Government of India the Company is required to maintain cost recordsas specified under Section 148(1) of the Act in respect of its products. We have broadlyreviewed the same and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

VII. a) According to the records of the Company and information andexplanations given to us and the records of the Company examined by us the Company hasbeen regular in depositing the undisputed statutory dues including goods and service taxprovident fund employees state insurance income tax sale tax service tax duty ofcustoms duty of excise value added tax Cess and other material statutory duesapplicable to it with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were in arrears as at 31stMarch 2022 for a period of more than six months from the date they became payable. b) Detailsof statutory dues referred to in sub-clause (a) above which have not been deposited as onMarch 31 2022 on account of disputes are given below:

Name of the Statute Nature of the Due Amount (Rs. in Millions) ** Period to which the amount relates Forum where dispute is pending
Sales Tax Act and VAT Laws Central Sales Tax 0.67 1999-2000 Tax Board
Kerala VAT 14.85 2015-16 to 2017-18 Appellate Authority*
Kerala VAT 1.64 2013-14 Hon?ble High Court
West Bengal Tax on Entry of Goods into Local Areas Act 2012 Entry Tax 7.68 2013-14 to 2017-18 Hon?ble High Court
Central Excise Act 1944 Excise Duty 0.62 2010-11 Commissioner (Appeals)
Excise Duty 6.80 2011-12 Assistant Commissioner
Finance Act1994 Service Tax 1.40 2011-12 to 2015-16 Assistant Commissioner
Service Tax 1169.63 2014-15 to 2017-18 CESTAT*
Income Tax Act Income Tax 8.22 2013-14 2015-16 2016-17 Commissioner (Appeals)

 

*Includes appeals yet to be filed.

**After considering amount paid against demands.

VIII. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

IX. a) According to the records of the Company examined by us andthe information and explanation given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest thereon to any lender.

b) The Company has not been declared wilful defaulter by any bankor financial institution or government or any government authority.

c) According to the records of the Company examined by us and theinformation and explanation given to us term loans take by the company were applied forthe purpose for which the loans were obtained.

d) On an overall examination of the financial statements of theCompany funds raised on short- term basis have prima facie not been used during theyear for long-term purposes by the Company.

e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiary associate or joint venture.

f) The Company has not raised any loans during the year on thepledge of securities held in its subsidiary joint venture or associate company.

X. a) The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) during the year and hencereporting under clause 3(x)(a) of the Order is not applicable.

b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.

XI. a) No fraud by the Company and no material fraud on the Companyhas been noticed or reported during the year.

b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and upto the date ofthis report.

c) No whistle blower complaints were received by the Company duringthe year (and upto the date of this report) and hence reporting under clause 3(xi) (c) ofthe Order is not applicable.

XII. The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.

XIII. In our opinion the Company is in compliance with Section 177and 188 of the Companies Act 2013 with respect to applicable transactions with therelated parties and the details of related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.

XIV. (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the yearunder audit issued to the Company during the year and till date in determining thenature timing and extent of our audit procedures.

XV. In our opinion during the year the Company has not enteredinto any non-cash transactions with its directors or persons connected with its directors.and hence provisions of section 192 of the Companies Act 2013 are not applicable to theCompany.

XVI. In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a)(b) and (c) of the Order is not applicable. In our opinion there is no coreinvestment company within the Group (as defined in the Core Investment Companies (ReserveBank) Directions 2016) and accordingly reporting under clause 3(xvi) (d) of the Order isnot applicable.

XVII. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

XVIII. There has been no resignation of the statutory auditors ofthe Company during the year.

XIX. On the basis of the financial ratios ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the financial statements and our knowledge of the Board ofDirectors and Management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report indicating that Company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.

XX. (a) There is a delay by the Company in transferring unspentCorporate Social Responsibility (CSR) amount in respect of other than ongoing projectsto a fund specified in Schedule VII to the Act within a period of six months of the expiryof the previous financial year as per second proviso to sub-section (5) of Section 135 ofthe Companies Act 2013. Details of the delay are given below:-

(Rs. in Millions)

Financial Year Amount unspent on CSR activities "other than Ongoing Projects" Amount Transferred after the due date Date of deposit Number of days of delay
(a) (b) (c) (d) (e)
2020-21 36.25 36.25 21.03.2022 to 23.03.2022 171 to 173

(b) There is no unspent CSR amount as at Balance Sheet date undersection (5) of section 135 of the Act pursuant to any ongoing project hence reportingunder clause 3(xx)(b) of the Order is not applicable.

For PAWAN SHUBHAM & CO.
ICAI Firm Registration Number: 011573C Chartered Accountants
Place of Signature: New Delhi Partner CA Pawan Kumar Agarwal
Date: 09th May 2022 Membership Number: 092345
UDIN: 22092345AIRBQG5169

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