You are here » Home » Companies » Company Overview » Lemon Tree Hotels Ltd

Lemon Tree Hotels Ltd.

BSE: 541233 Sector: Services
NSE: LEMONTREE ISIN Code: INE970X01018
BSE 00:00 | 24 Jun 41.75 -0.60
(-1.42%)
OPEN

42.40

HIGH

42.85

LOW

41.50

NSE 00:00 | 24 Jun 41.80 -0.50
(-1.18%)
OPEN

42.65

HIGH

42.80

LOW

41.50

OPEN 42.40
PREVIOUS CLOSE 42.35
VOLUME 256787
52-Week high 49.45
52-Week low 22.50
P/E
Mkt Cap.(Rs cr) 3,308
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 42.40
CLOSE 42.35
VOLUME 256787
52-Week high 49.45
52-Week low 22.50
P/E
Mkt Cap.(Rs cr) 3,308
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Lemon Tree Hotels Ltd. (LEMONTREE) - Auditors Report

Company auditors report

To The Members of Lemon Tree Hotels Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofLemon Tree Hotels Limited ("the Company") which comprise the Balance Sheet asat March 312020 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us and based on the consideration of report of the other auditor onseparate financial statements of the Trust referred to in the Other Matters section belowthe aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 and its profit total comprehensiveincome 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 inaccordance 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'sResponsibility for the Audit of the Standalone Financial Statements section

of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence obtained by us and the auditevidence obtained by the other auditor in terms of their report referred to in the OtherMatters section below is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

Emphasis of Matter

Attention is invited to Note 30(i) of the standalone financialstatements which sets out the Company's assessment of impact of COVID-19 pandemicsituation the uncertainties associated therewith on its financial statements and goingconcern assumption. Based on these assessments the management has concluded that theCompany will continue as a going concern and will be able to meet all of its obligationsas well as recover the carrying amount of its assets as on March 312020.

Our opinion is not modified in respect of this matter.

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.

Key Audit Matter Auditor's Response
Impairment of Investment in subsidiaries and associates (Refer Note 30(ii) to the Standalone Financial Statements) Principal audit procedures performed:
At each reporting period the Company assesses the carrying amounts of investment in subsidiaries and associates to determine whether there is any indication that those investments have suffered an impairment loss. If any indication exists the Company estimates the investment's recoverable amount. Where the carrying amount of CGU exceeds its recoverable amount the investment is considered impaired and is written down to its recoverable amount. Obtained an understanding and assessed the Company's impairment process and tested the design and implementation of internal control established to the estimates and judgments for the carrying values of investment in subsidiaries and associates.
Our audit procedures include challenging management on the appropriateness of the impairment models by performing the following:
The Company holds investment in subsidiaries and associates located in India amounting to INR 78894.40 lacs as at March 312020. i) Assessed the reasonableness of the assumptions used to determine the fair value of investment in subsidiaries and associates including discount rate and long term growth rate using our valuation expertise;
Key Audit Matter Auditor's Response
The Company has undertaken an assessment of indicators of impairment in respect of the investment in subsidiaries and associates as mentioned in Note 8 of the standalone financial statements considering the qualitative factors such as current economic situation of the hospitality industry. ii) Assessed the reliability of cash flow forecasts through a review of actual past performance;
iii) Challenged the assumptions used in the cash flow forecasts which includes occupancy rate average room rate along with impact of COVID-19 on the same. To consider forecasting risk we also performed sensitivity analysis over these assumptions.
To assess the recoverability of the investment in subsidiaries and associates management is required to make significant estimates and assumptions related to forecast of future revenue operating margins growth rate and selection of the discount rates. The Company used the discounted cash flow approach to determine the recoverable value of the investments. Further the Company has appointed independent valuer to calculate the fair value of certain hotels owned by these subsidiary Companies.
We have tested the arithmetical accuracy of the impairment model.
We have assessed the net worth of the subsidiaries and associates on the basis of latest available financial statements.
We have checked the computation of the Company's share in that respective company's enterprise value (EV) and Compared the book value of investments as at the balance sheet date with the amount calculated.
We have identified the estimation of the recoverable amount of the investments as a key audit matter because these assumptions are of particular importance due to the level of uncertainties and judgment involved thus changes in these assumptions could have a significant impact on the recoverable value of the investments.
We have assessed the disclosures made by the Company in relation to this matter.

Impairment assessment of hotel properties

(Refer Note 30(i) to the Standalone Financial Statements)

At each reporting period the Company assesses the carrying amounts ofhotel properties (CGU) to determine whether there is any indication that those assets havesuffered an impairment loss. If any indication exists the Company estimates the asset'srecoverable amount.

To assess the recoverability of the CGU management is required to makesignificant estimates and assumptions related to forecast of future revenue operatingmargins growth rate and selection of the discount rates. The Company used the discountedcash flow approach to determine the recoverable value of the CGU. These assumptions are ofparticular importance due to the level of uncertainties and judgment involved thuschanges in these assumptions could have a significant impact on the recoverable value ofthe hotel properties.

We have identified the estimation of the recoverable amount of thehotel properties as a key audit matter because these assumptions are of particularimportance due to the level of uncertainties and judgment involved thus changes in theseassumptions could have a significant impact on the recoverable value of the CGU.

Principal audit procedures performed:

Obtained an understanding of the Company's process for projecting thefuture cash flows and evaluated the significant assumptions used for determining therecoverable amount of CGU.

Tested the design implementation and operating effectiveness ofrelevant internal controls relating to estimate of future cash flows for the purpose ofdetermining recoverable amount of CGU.

Our assessment included:

i) Challenged Company's key market related assumptions used in themodel including discount rate long term growth rates against external data using ourvaluation expertise;

ii) Assessed the reliability of cash flow forecasts through a review ofactual past performance;

iii) Challenged the assumptions used in the cash flow forecasts whichincludes occupancy rate average room rate along with impact of COVID-19 on the same. Toconsider forecasting risk we also performed sensitivity analysis over these assumptions.

We have used valuation specialist to assess the appropriateness of theweighted average cost of capital used in the determining recoverable amount.

We have tested the arithmetical accuracy of the model and assessed thedisclosures made by the Company in relation to this matter.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion & Analysis Board's Report Business Responsibility Report and Report onCorporate Governance but does not include the standalone financial statements and ourauditor's report thereon.

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

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

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave 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 statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

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

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 professionaljudgment and maintain professional skepticism throughout the audit. We also:

• 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.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the

disclosures and whether the standalone financial statements representthe underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding thefinancial information of the Company and its trust to express an opinion on the standalonefinancial statements.

We are responsible for the direction supervision and performance ofthe audit of the financial statements of such entities or business activities included inthe standalone financial statements of which we are the independent auditors. For theother entities or business activities included in the standalone financial statementswhich have been audited by the other auditors such other auditors remain responsible forthe direction supervision and performance of the audits carried out by them. We remainsolely responsible for our audit opinion.

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 wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our 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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matters

We did not audit the financial statements of Krizm Hotels PrivateLimited Employees Welfare Trust (the "Trust") included in the standalonefinancial statements of the Company whose

financial statements reflect total assets of Rs. 567.86 Lakhs as atMarch 31 2020 and total revenue of Rs. Nil and net cash outflows of Rs. 84.30 Lakhs forthe year ended March 312020 as considered in the standalone financial statements. Thesefinancial statements have been audited by other auditor whose report have been furnishedto us by the management and our opinion on the standalone financial statements in so faras it relates to the amounts and disclosures included in respect of such trust is basedsolely on the report of other auditor.

Our opinion on the standalone financial statements and our report onOther Legal and Regulatory Requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit and onthe consideration of the reports of the other auditor on the separate financial statementsof the Trust referred to in the Other Matters section above we report to the extentapplicable 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 have beenkept by the Company so far as it appears from our examination of those books and thereports of the other auditors.

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

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

e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164(2) of the Act.

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

g) With respect to the other matters to be included in the Auditor'sReport 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 theexplanations given to us the remuneration paid by the Company to its directors during theyear 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'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended 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 on itsfinancial position in its standalone financial statements. (Refer note 32 C)

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.(Refer note 44)

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.(Refer note 45)

2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W / W-100018)
Vijay Agarwal
(Partner)
Place: New Delhi (Membership No. 094468)
Date: May 29 2020 UDIN: 20094468AAAACN4179

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

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

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

We have audited the internal financial controls over financialreporting of Lemon Tree Hotels Limited ("the Company") as of March 312020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control 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. 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 internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the Instituteof Chartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 aboutthe adequacy 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 judgement 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 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 aprocess 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 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 March 312020 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Deloitte Haskins & Sells LLP Chartered Accountants
(Firm's Registration No. 117366W / W-100018)
Vijay Agarwal
(Partner)
Place: New Delhi (Membership No. 094468)
Date: May 29 2020 UDIN: 20094468AAAACN4179

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

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

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

showing full particulars including quantitative details and situationof Property Plant and Equipment.

(b) The Company has a program of verification of Property Plant andEquipment to cover all the items in a phased manner over a period of two years which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program certain fixed assets were physically verified by theManagement during the year and no discrepancies were noticed on such verification.

(c) According to the information explanations given to us and therecords examined by us we report that:

i. based on the examination of the confirmation received by us fromKotak Mahindra Bank Limited HDFC Bank Limited Axis Trustee Services Limited (custodian)on behalf of Aditya Birla Finance Limited in respect of immovable properties (freeholdland and buildings disclosed as Property Plant and Equipment in the financialstatements) whose title deeds have been pledged as security for loans are held in thename of the Company.

ii. based on the examination of the registered conveyance deed ofremaining immovable properties provided to us we report that the title deeds comprisingall the immovable properties of land and buildings which are freehold are held in thename of the Company as at the balance sheet date.

(ii) In our opinion the inventories were physically verified by theManagement subsequent to year end during the month of May 2020 instead of year end due toCOVID 19 related lockdown. For the inventories for which physical count was performedsubsequent to year end the Company has carried out the reconciliation procedures for 100%of the inventories to ascertain existence of such inventory physically verified from thedate of the respective counts to the balance sheet date and no material discrepancies werenoticed on such verification.

(iii) The Company has not granted any loans secured or unsecured tocompanies firms Limited liability Partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013.

(iv) The Company has complied with the provisions of Section 186 of theCompanies Act 2013 in respect of making

investments. The Company has not granted any loans made investments orprovide guarantees under Section 185 of the Companies Act 2013. As per Section 186 (11)read with Schedule VI provisions of Section 186 with respect to grant of loans andproviding guarantees would not apply to the Company as the Company is providinginfrastructural facilities.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public. The Company doesnot have any unclaimed deposits and accordingly the provisions of Sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 are not applicable to the Company.

(vi) The maintenance of cost records has not been specified by theCentral Government under section 148(1) of the Companies Act 2013 hence reporting underclause (vi) of the Companies (Auditor's Report) Order 2016 ("CARO 2016") is notapplicable.

(vii) According to the information and explanations given to us and therecords of the Company examined by us in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employee's State Insurance Income-tax SalesTax Value Added Tax Goods and Services Tax cess and other material statutory duesapplicable to it to the appropriate authorities. Further Goods and Service tax for themonth of March 2020 has not been deposited due to lockout period and extension of time isbeing granted for payment of certain dues by the Government authorities for payment ofsuch dues due to lockdown of COVID 19. Also refer to the note 32 (e) in the financialstatement regarding management assessment on certain matters relating to the providentfund.

We are informed that the Excise duty and Customs duty is not applicableto the Company.

(b) There were no undisputed amounts payable in respect of ProvidentFund Employees' State Insurance Income-tax Sales Tax Value Added Tax Goods andServices Tax cess and other material statutory dues in arrears as at March 31 2020 for aperiod of more than six months from the date they became payable.

We are informed that the Excise duty and Customs duty is not applicableto the Company.

(c) There are no dues of Income tax Sales tax Customs Duty ValueAdded tax and Excise duty which have not been deposited as on March 31 2020 on account ofdisputes. Details of dues of Service Tax which have not been deposited as on March312020 on account of disputes are given below:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount Unpaid (' in Lakhs)
Service Tax Rule 1994 Service Tax Central Excise and Service Tax Appellate tribunal FY 2007-09 to 2012-13 113.55

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tofinancial institutions and banks. Further the Company has opted for a moratorium periodfrom March 2020 to August 2020 for repayment of term loans/ working capital financingfacilities on reference of RBI circular issued dated March 27 2020 April 17 2020 andMay 23 2020 on COVID 19- Regulatory package. The Company has not taken any loans orborrowings from government and not issued any debentures.

(ix) In our opinion and according to the information and explanationgiven to us the term loan have been applied by the Company during the year for thepurposes for which they were raised. The Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments).

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

(xi) In our opinion and according to the information and explanationsgiven to us the Company has paid/ provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act 2013.

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

(xiii) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 for all transactions with the related parties entered during the year and thedetails of related party transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its directors or directors of its subsidiary or associate company or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 and hence reporting under clause (xvi) of CARO 2016is not applicable to the Company.

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No. 117366W / W-100018)
Vijay Agarwal
(Partner)
Place: New Delhi (Membership No. 094468)
Date: May 29 2020 UDIN: 20094468AAAACN4179