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Kesoram Industries Ltd.

BSE: 502937 Sector: Others
NSE: KESORAMIND ISIN Code: INE087A01019
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VOLUME 21257
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OPEN 36.05
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VOLUME 21257
52-Week high 77.95
52-Week low 35.65
P/E
Mkt Cap.(Rs cr) 520
Buy Price 36.40
Buy Qty 121.00
Sell Price 36.60
Sell Qty 121.00

Kesoram Industries Ltd. (KESORAMIND) - Auditors Report

Company auditors report

To The Members of Kesoram Industries Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Kesoram Industries Limited (the Company) which comprise the Balance Sheet as at 31st March 2019 and the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to usthe aforesaid standalone financial statements give the information required by the Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended (Ind AS) and other accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2019 and its loss total comprehensive loss its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming 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 to be communicated in our report.

Key Audit MatterAuditor's Response
1. Impairment of Investment in subsidiary and Loan to subsidiary (Cygnet Industries Limited) Notes A and 7B of the standalone financial statementsHow the Key Audit Matter Was Addressed in the Audit
The Company has a wholly owned subsidiary Cygnet Industries Limited which is involved in the business of manufacturing Rayon and Transparent paper. As at 31st March 2019 the Company has an investment of I430.05 crores and has an outstanding loan of I333.56 crores in the said subsidiary. Considering the unfavourable financial performance of the subsidiary the impairment of thisOur audit procedures included challenging management on the appropriateness of the impairment models and reasonableness of the assumptions used focusing in particular the business projections of Cygnet Industries Limited through the following procedures:
investment and the recoverability of the loan could be dependent on projections by the management which are based on assumptions. We obtained an understanding of controls instituted by the management to assess impairment indicators and tested the effectiveness of the management controls over the impairment assessment process and preparation of impairment workings.

 

Key Audit MatterAuditor's Response
We have considered impairment of investment and loans to subsidiary as a Key Audit Matter considering the fact that the investments and the loan are material to the financial statements and significant judgements and estimates are involved to assess whether there are indicators of impairment such as: Benchmarking key market-related assumptions in the models including discount rates and long term growth rates against external data using our valuation specialists;
 Tested the mathematical accuracy and performed sensitivity analysis in order to assess the potential impact of changes in the inputs used on the recoverable amount;
 The determination of recoverable amount being the higher of value-in-use and fair value less costs to dispose requires estimations on the part of management. Recoverable amounts are based on management's judgement and estimate. We have considered projected volumes EBITDA margins discount rate and the long term growth rates as key inputs in the impairment analysis. Performed a detailed analysis of the revenue and cost projections and various assumptions relating to revenue growth and compared the revenue projections based on the past actual figures to understand the appropriateness/realistic of the management estimates.
 Risk regarding the business projections prepared by the management as projected revenue and cost are sensitive to reasonably possible changes in the assumptions used which could result in the calculated recoverable amount being lower than the carrying value resulting in an impairment charge. Evaluated the adequacy of disclosures in the financial statements with respect to the assumptions and checked whether they were appropriately presented.
2. Tangible property plant and equipment - Tyre division - impairment assessment [Note 39 of the standalone financial statements]How the Key Audit Matter was Addressed in the
Audit:
The tyre division of Kesoram Industries Limited has been making continuous losses in past few previous years due to various internal and external factors. As at 31st March 2019 the written down value of the fixed assets amounted to I1321.81 crores [this includes I749.49 crores for Passenger Car Radial Tyres which is yet to commence commercial operations]. The Company has announced demerger of its tyre business on 4th December 2018. Considering the continuous losses incurred by the tyre division the probability of impairment could be dependent on assumptions and methodology used for the fair valuation of the Property Plant and Equipment by the management appointed external experts.Our audit procedures included challenging manage- ment on the appropriateness and reasonableness of the fair valuation approach and assumptions used for determining the fair value of assets by external experts through performing the following:
 We obtained an understanding of controls instituted by the management to assess impairment indicators and tested the operation of the management controls over the impairment assessment process and review of fair valuation report obtained from the external experts.
Impairment assessment of the Property Plant and Equipment of the tyre division is considered as a Key Audit Matter since there is significant management judgements and estimates involved in the impairment assessment such as: Tested the reasonableness of the fair valuation methodology used and the assumptions made for determining the fair value of the assets using our internal fair valuation specialists.
 The determination of recoverable amount being the higher of value-in-use and fair value less costs to dispose. Reconciled the carrying amount of the assets category wise as per the valuation report provided by the management and as per the books.
 The methodology used in determination of the fair value of assets by management appointed external experts may be dependent on interpretation of the valuation standards and the assumptions used such as inflation index rates useful lives salvage value. Evaluated the adequacy of disclosures in the financial statements with respect to the assumptions and checked whether they were appropriately presented.

Information Other than the Financial Statements and

Auditor's Report thereon

 The Company's Board of Directors is responsible for the other information. The other information comprises the Report of the Directors and the following Annexures thereto (namely Management Discussion and Analysis Report on Corporate Governance Annual Report on Corporate Social Responsibility Activities Form AOC - 1 Conservation of energy Technology Absorbtion and exchange Earnings and Outgo) but does not include the standalone financial statements and our auditor's report thereon.

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

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

 If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone

Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance including other comprehensive income cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone

Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement whether due 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 audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic 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 maintain professional skepticism throughout the audit. We also:

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

 Obtain an understanding of internal financial control relevant to the 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 on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the standalone 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's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the standalone financial statements including the disclosures and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

 Materiality is the magnitude of misstatements in the standalone financial statements that individually or in aggregate makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (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 financial statements.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

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

From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably 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 based on our audit we report:

a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other Comprehensive Income the Statement of Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2019 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act as amended: In our opinion and to the best of our information and according to the explanations given to us the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014as amended in our opinion and 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 financial position in its standalone financial statements.

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

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

2. As required by the Companies (Auditor's Report) Order 2016 (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 the Order.

For Deloitte Haskins & Sells

Chartered Accountants

(Firm's Registration No. 302009E)

Abhijit Bandyopadhyay

Partner

(Membership No. 054785)

Place: Kolkata

Date: 15th May 2019

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

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

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of Kesoram Industries Limited (the Company) as of 31st March 2019 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on `the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India'. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to Company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (theGuidance Note) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or 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 the explanations given to us the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019 based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Deloitte Haskins & Sells

Chartered Accountants

(Firm's Registration No. 302009E)

Abhijit Bandyopadhyay

Partner

(Membership No. 054785)

Place: Kolkata Date: 15th May 2019

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

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

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed transfer deed conveyance deed mutation of title papers provided to us we report that the title deeds comprising all the immovable properties of land and buildings are held in the name of the Company.

Immovable properties of land and buildings whose title deeds have been pledged as security for loans guarantees etc. are held in the name of the Company based on the confirmations directly received by us from lenders. In respect of immovable properties of land that have been taken on lease and disclosed as fixed asset in the financial statements the lease agreements are in the name of the Company where the Company is the lessee in the agreement.

(ii) The inventory except for goods-in-transit and stock lying with third parties has been physically verified by the management at reasonable intervals during the year. In our opinion the frequency of such verification is reasonable. For stocks lying with third parties at the year-end written confirmations have been obtained and in respect of goods-in-transit subsequent goods receipts have been verified or confirmations have been obtained from the parties. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) According to the information and explanations given to us the Company has granted loans unsecured to companies covered in the register maintained under section 189 of the Companies Act 2013 in respect of which:

(a) The terms and conditions of the grant of such loans are in our opinion prima facie not prejudicial to the Company's interest except for one loan to Gondkhari Coal Mining Limited a joint venture aggregating I 7.11 crore as on 31st March 2019 with a maximum amount of I7.11 crore outstanding during the year which was granted without any agreement specifying terms and conditions and is therefore in our opinion prejudicial to the Company's interests.

(b) In respect of the aforesaid loan of I7.11 crore the outstanding towards principal is fully provided for and no interest is being charged. The other loan amounting to I333.56 crore is repayable on demand. The party is regular in repayment of principal and payment of interest as applicable.

(c) In respect of the aforesaid loans except for an amount aggregating I7.11 crore which is already provided for there is no amount which is overdue for more than ninety days.

(iv) In our opinion and according to the information and explanations given to us the Company has complied with the provisions of Sections 185 and 186 of the Companies Act 2013 in respect of grant of loans making investments and providing guarantees and securities as applicable.

(v) According to the information and explanations given to us the Company has not accepted any deposit during the year and had no unclaimed deposits at the beginning of the year as per the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act 2013.

(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014 as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act 2013 and are of the opinion that prima facie the prescribed cost records have been made and maintained . We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us in respect of statutory dues: (a) The Company has been generally regular in depositing undisputed statutory dues including Provident Fund Employees' State Insurance Income-tax Customs Duty Cess and other material statutory dues applicable to it to the appropriate authorities except for Goods and Service tax (including interest thereon) though the delays in deposit have not been serious.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees' State Insurance Income-tax Customs Duty Cess and other material statutory dues in arrears as at 31st March 2019 for a period of more than six months from the date they became payable except for Goods and Service tax (including interest) the details of which are given below:

Name of the StatuteNature of DuesAmountPeriod to which the amount relatesDue dateDate of Payment
(I In Crores)
The Central State and Integrated Goods and Service Tax Act 2017Goods and Service tax7.652017-2018Various dates in 2017 - 2018 starting from December 2017Not paid till date
The Central State and Integrated Goods and Service Tax Act 2017Interest on unpaid amount of goods and service tax1.512017-2018Not ApplicableNot paid till date
The Central State and Integrated Goods and Service Tax Act 2017Goods and Service tax11.032018-2019Various dates in 2018 - 2019 starting from May 2018Not Paid till date
The Central State and Integrated Goods and Service Tax Act 2017Interest on unpaid amount of goods and service tax3.392018-2019Not ApplicableNot paid till the date

The Company was hitherto charging GST @ 18% on sale of Tubes and Flaps even on composite supply with tyres on which the rate was 28%. The Company has started levying GST to its customers @ 28% on Tubes and Flaps instead of 18% on composite supply based on industry position change with retrospective effect from November 2017. The Company has issued debit notes to its customers for the differential amount of GST in the month of March 2019. The above table includes an amount of I16.70 crore and I2.64 crore remained unpaid on account of GST and interest respectively at the end of the year

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Excise Duty and Value Added Tax which have not been deposited as on 31st March 2019 on account of disputes are given below:

Name of the StatuteNature of DuesForum where dispute is pendingPeriodAmount ( In Crores)
Andhra Pradesh GeneralSales TaxTribunal2003-20040.11
Sales Tax Act 1957
Andhra Pradesh VAT ActSales TaxHigh Court2006-20100.64
Bihar VAT Act 2005Sales TaxCommissioner (Appeals)2013-20140.65
Bombay Sales Tax ActSales TaxDeputy Commissioner of Sales Tax ( Appeals) Amravati Division2003-20050.32
Central Excise Act 1944Central ExciseAdditional Commissioner2005-20072.68
Central Excise Act 1944Central ExciseAssistant Commissioner1991-19921992-1993 1993-19941994-1995 1995-19961996-1997 1997-19981998-1999 1999-20002002-2003 2003-20042004-2005 2005-2006 2006-20077.39
Central Excise Act 1944Central ExciseCESTAT1975-19991999-2000 2000-20012001-2002 2002-20032003-2004 2004-20052005-2006 2006-20072007-2008 2008-20092009-2010 2010-20112011-2012 2012-20132013-2014 2014-2015 2015-2016107.04
Central Excise Act 1944Central ExciseCommissioner1985-1990 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2003-2005 2005-2006 2007-2008 2009-2010 2010-2011 2011-2012 2012-2013 2014-201532.51
Central Excise Act 1944Central ExciseCommissioner (Appeals)19941997-1998 2002-20032003-2007 2007-20112016-201710.24
Central Excise Act 1944Central ExciseDeputy Commissioner20040.03
Central Excise Act 1944Central ExciseHigh Court19942005-20070.40
Central Excise Act 1944Central ExciseSuperintendent of Central Excise1979-1983 1992-1993 1995-2000 2001-2006 2011-2013 2015-20160.49
Central Excise Act 1944Central ExciseSupreme Court20100.08
Central Sales Tax Act 1956Sales TaxAdditional Commissioner1996-1997 2014-20150.10
Central Sales Tax Act 1956Sales TaxAssistant Commissioner2016-20170.06
Central Sales Tax Act 1956Sales TaxCESTAT2009-201020.73
Central Sales Tax Act 1956Sales TaxCommercial Tax Officer2013-20140.06
Central Sales Tax Act 1956Sales TaxCommissioner (Appeals)2010-20110.06
Central Sales Tax Act 1956Sales TaxDeputy Commissioner2012-20130.02
Central Sales Tax Act 1956Sales TaxHigh Court1999-2000 2001-2002 2003-2004 2006-2007 2009-2010 2011-2012 2015-20167.83
Central Sales Tax Act 1956Sales TaxJoint Commissioner (Appeals)2003-20042.23
Central Sales Tax Act 1956Sales TaxKarnataka Appellate Tribunal Bangalore2004-20051.27
Central Sales Tax Act 1956Sales TaxRevisional Board2008-20092010-20110.07
Central Sales Tax Act 1956Sales TaxSales Tax Tribunal2002-20032004-2005 2007-20082008-2009 2009-20102010-201113.30
Central Sales Tax Act 1956Sales TaxSupreme Court2003-20041.83
Central Sales Tax Act 1956Sales TaxWB Appellate & Revisional Board2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-20117.65
CST Demanded under UP Trade Act1948Sales TaxAdditional Commissioner (Appeals)2005-2006 2006-20070.01
Customs Act 1962Custom DutyAssistant Commissioner of Customs2008-20100.02
Customs Act 1962Custom DutyCESTAT2014-20151.44
Finance Act 1994Service TaxCESTAT2005-2006 to 2016-201746.85
Finance Act 1994Service TaxCommissioner (Appeals)2009-20100.03
Finance Act 1994Service TaxSuperintendent of Central Excise2013-2014 2014-20150.11
Gujarat VAT ActSales TaxCommercial Tax Officer2013-20140.58
Jharkhand VAT Act 2005Sales TaxCommissioner2010-2011 2012-20130.73
Jharkhand VAT Act 2005Sales TaxTribunal2010-20110.14
Kerala VAT ActSales TaxDeputy Commissioner2011-20122.14
Odisha Value Added Tax Act 2004Sales TaxAdditional Commissioner (Appeals)2010-2011 2011-201211.46
Odisha Value Added Tax Act 2004Sales TaxDeputy Commissioner2016-20180.54
Odisha Value Added Tax Act 2004Sales TaxJoint Commissioner (Appeals)2015-20160.32
Odisha Value Added Tax Act 2004Sales TaxSales Tax Tribunal2005-2006 2008-2009 2009-20105.43
Rajasthan VAT Act 2003Sales TaxDeputy Commissioner2008-20090.01
UP Trade Tax Act1948Sales TaxAdditional Commissioner (Appeals)2006-20070.09
UP VATSales TaxAdditional Commissioner (Appeals)2010-2011 2011-2012 2013-20140.46
WB Sales Tax Act1994Sales TaxWB Taxation Tribunal1998-19990.07
WB Sales Tax Act1994Sales TaxDeputy Commissioner1995-1996 1997-19980.21
WB VAT Act 2003Sales TaxRevisional Board2007-2008 2008-2009 2009-2010 2010-20118.69
WB VAT Act 2003Sales TaxWB Appellate & Revisional Board2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-20106.07
WB VAT Act 2003Sales TaxWB Taxation Tribunal2006-2007 2010-20113.24
Delhi Sales Tax Act 1975Sales TaxAssessing Authority1999-20000.42

(viii) In our opinion and according to the information and explanations given to us the Company has not defaulted in the repayment of loans or borrowings to financial institutions banks and government. The Company has not issued any debentures.

(ix) In our opinion and according to the information and explanations given to us the term loans taken have been applied by the Company during the year for the purposes for which they were raised.

(x) To the best of our knowledge and according to the information and explanations given to us no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act 2013 where applicable for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the Company had made preferential allotment of shares and fully convertible warrants under section 42 and 62(1)(c) of the Companies Act 2013 and other relevant SEBI ICDR Regulations during the year ended 31st March 2018. The Company had received 90% of the total subscription amount in the year ended 31st March 2018 and balance 10% has been received in the current year.

In respect of the above issue we further report that:

a) the requirement of Section 42 of the Companies Act 2013 as applicable have been complied with; and

b) the amounts raised have been applied by the Company during the year for the purposes for which the funds were raised.

(xv) In our opinion and according to the information and explanations given to us during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Deloitte Haskins & Sells

Chartered Accountants

(Firm's Registration No. 302009E)

Abhijit Bandyopadhyay

Partner (Membership No. 054785)

Place: Kolkata

Date: 15th May 2019