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Mafatlal Industries Ltd.

BSE: 500264 Sector: Industrials
NSE: MAFATLAIND ISIN Code: INE270B01035
BSE 00:00 | 03 Feb 53.70 -1.15
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NSE 05:30 | 01 Jan Mafatlal Industries Ltd
OPEN 54.55
PREVIOUS CLOSE 54.85
VOLUME 13070
52-Week high 81.60
52-Week low 30.71
P/E 8.63
Mkt Cap.(Rs cr) 379
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 54.55
CLOSE 54.85
VOLUME 13070
52-Week high 81.60
52-Week low 30.71
P/E 8.63
Mkt Cap.(Rs cr) 379
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mafatlal Industries Ltd. (MAFATLAIND) - Auditors Report

Company auditors report

To the Members of Mafatlal Industries Limited

Report on the audit of the standalone financial statements

Opinion

1. We have audited the accompanying standalone financial statements of MafatlalIndustries Limited ("the Company") which comprise the Standalone Balance Sheetas at March 31 2022 the Standalone Statement of Profit and Loss (including OtherComprehensive Income) the Standalone Statement of Cash Flows and the Standalone Statementof Changes in Equity for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation.

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2022 total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year then ended.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the "Auditor’s responsibilities for the audit of the standalonefinancial statements" section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

4. We draw attention to Note 49 to the standalone financial statements which describesthe management’s assessment of the impact consequent to outbreak of Coronavirus(Covid-19) on the business operations of the Company. In view of highly uncertain economicenvironment a definitive assessment of the impact in the subsequent periods is highlydependent upon circumstances as they evolve. Our opinion is not modified in respect ofthis matter.

Key audit matter

5. Key audit matters are those matters that in our professional judgment were of mostsignificance 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 financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.

Key audit matter How our audit addressed the key audit matter
Assessment of recoverability of deferred tax assets: Our audit procedures included the following:
Refer Note 36(d) to the standalone financial statements. Evaluation of the design and testing operating effectiveness of Company’s controls relating to the assessment of carrying amount of deferred tax assets.
The Company has recognised Deferred Tax Assets (DTA) on temporary differences and unabsorbed depreciation as it is considered to be recoverable based on the Company’s projected taxable profits in the forecast period. The carrying value of DTA (net) is Rs. 777.57 lakhs as at March 31 2022. Assessed the appropriateness of the Company’s accounting policy in respect of recognizing deferred tax assets on unabsorbed depreciation and temporary differences.
We considered this a key audit matter because significant judgement is required by the Company in determining the recoverability of DTA recognised on unabsorbed depreciation as the realisation of tax benefits is dependent on future taxable profits and there are inherent uncertainties involved in forecasting such profits. Obtained the future taxable profit projections prepared by the management and performed enquiries to understand the assumptions used in such preparation.
Assessed the appropriateness of tax rate applied to the taxable profit forecasts.
Evaluated whether the unabsorbed depreciation on which deferred tax asset is recognised has been assessed by the tax authorities and is available for utilisation in accordance with the provisions of the Income-tax Act 1961.
Verified the mathematical accuracy of the calculations underlying the profit projections.
Assessed the adequacy of disclosures made in the standalone financial statements with regard to deferred taxes.
Verified the Income tax computation for the current year resulting in a reversal of the deferred tax assets from previous year. Based on the above procedures Management’s assessment of recoverability of deferred tax assets was considered to be reasonable.

Other Information

6. The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the annual report but does notinclude the standalone financial statements and our auditor’s report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the standalonefinancial

7. The Company’s Board of Directors is responsible for the matters stated inSection 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 financialperformance cash flows and changes in equity of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

8. In preparing the standalone financial statements management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Those Board of Directors arealso responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the standalone financial statements

9. Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements.

10. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit.

We also:

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

? Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

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

? Conclude on the appropriateness of management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists 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 conditionsmay cause the Company to cease to continue as a going concern.

? Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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

12. 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.

13. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor’s report unless law or regulation precludes 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.

Report on other legal and regulatory requirements

14. As required by the Companies (Auditor’s Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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

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

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

(c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss(including Other Comprehensive Income) the Standalone Statement of Cash Flows and theStandalone Statement of Changes in Equity dealt with by this report are in agreement withthe books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theaccounting standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on April01 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A".

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer Notes 43 and 50 to the standalonefinancial statements;

ii. The Company was not required to recognise a provision as at March 31 2022 underthe applicable law or accounting standards as it does not have any material foreseeablelosses on long-term contract. The Company did not have any derivative contracts as atMarch 31 2022;

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

iv. (a) The management has represented that to the best of its knowledge and beliefas disclosed in the notes to the accounts no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries (Refer Note 53(vi) to the standalonefinancial statements);

(b) The management has represented that to the best of its knowledge and belief asdisclosed in the notes to the accounts no funds have been received by the Company fromany person or entity including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries (Refer Note 53(vi) to the standalone financial statements); and (c)Based on such audit procedures that we considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material misstatement.

v. The Company has not declared or paid any dividend during the year.

16. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Priyanshu Gundana
Partner
Place: Mumbai Membership Number: 109553
Date: May 28 2022 UDIN: 22109553AJUMMV7983

Annexure A to Independent Auditor’s Report

Referred to in paragraph 15(f) of the Independent Auditor’s Report of even date tothe members of Mafatlal Industries Limited on the standalone financial statements for theyear ended March 31 2022

Report on the Internal Financial Controls with reference to financial statements underclause (i) of sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference to financialstatements of Mafatlal Industries Limited ("the Company") as of March 31 2022in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management’s responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting ("the Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor’s responsibility

3. Our responsibility is to express an opinion on the Company’s internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. 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 with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to financia l statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectivenes s of internalcontrol based on the assessed risk. The procedures selected depend on the auditor’sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

6. A company’s internal financial controls with reference to financial statementsis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internalfinancial controls with reference to financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company’s assets that could have a materialeffect on the financial statements.

Inherent limitations of Internal Financial Controls with reference to financialstatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2022 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by ICAI. Also refer paragraph 4 of our main audit report.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Priyanshu Gundana
Partner
Place: Mumbai Membership Number: 109553
Date: May 28 2022 UDIN: 22109553AJUMMV7983

Annexure B to Independent Auditor’s Report

Referred to in paragraph 14 of the Independent Auditor’s Report of even date tothe members of Mafatlal Industries Limited on the standalone financial statements as ofand for the year ended March 31 2022

i. (a) (A) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

(B) The Company is maintaining proper records showing full particulars of IntangibleAssets.

(b) The Property Plant and Equipment are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme a portion of the Property Plant andEquipment has been physically verified by the Management during the year and no materialdiscrepancies have been noticed on such verification.

(c) The title deeds of all the immovable properties other than self-constructedproperties as disclosed in Notes 3 4 and 17 on Property Plant and Equipment InvestmentProperties and Assets held for sale respectively to the standalone financial statementsare held in the name of the Company except for a leasehold land of gross and net bookvalue of Rs. 0.08 lakhs where the Company is in the process of getting the expired leaserenewed (Refer Note 4 to the standalone financial statements).

(d) The Company has not revalued its Property Plant and Equipment (including Right ofUse assets) and intangible assets during the year. Consequently the question of ourcommenting on whether the revaluation is based on the valuation by a Registered Valuer orspecifying the amount of change if the change is 10% or more in the aggregate of the netcarrying value of each class of Property Plant and Equipment (including Right of Useassets) or intangible assets does not arise.

(e) Based on the information and explanations furnished to us no proceedings have beeninitiated on or are pending against the Company for holding benami property under theProhibition of Benami Property Transactions Act 1988 (as amended in 2016) (formerly theBenami Transactions (Prohibition) Act 1988 (45 of 1988)) and Rules made thereunder andtherefore the question of our commenting on whether the Company has appropriatelydisclosed the details in its standalone financial statements does not arise.

ii. (a) The physical verification of inventory excluding stocks with third parties hasbeen conducted at reasonable intervals by the Management during the year and in ouropinion the coverage and procedure of such verification by Management is appropriate. Inrespect of inventory lying with third parties these have substantially been confirmed bythem. The discrepancies noticed on physical verification of inventory as compared to bookrecords were not 10% or more in aggregate for each class of inventory.

(b) During the year the Company has been sanctioned working capital limits in excessof Rs. 5 crores in aggregate from banks on the basis of security of current assets. TheCompany has filed quarterly returns or statements with such banks which are not inagreement with the unaudited books of account as set out below [Also refer Note 48(b) tothe standalone financial statements].

Name of the Bank Aggregate working capital limits sanctioned Nature of Current Asset offered as Security Quarter ended Amount as per books of account Amount disclosed as per quarterly statement Difference Reasons for difference
ICICI bank Rs. 45 crores Trade receivables June 2021 15628.97 13089.67 2539.30 The difference is due to subsequent reclassification of advances from customers to liabilities - Rs. 2539.30 lakhs
ICICI bank Rs. 45 crores Trade receivables September 2021 27842.34 25313.85 2528.49 The difference is due to subsequent reclassification of advances from customers to liabilities - Rs. 2528.49 lakhs
ICICI bank Rs. 45 crores Trade receivables December 2021 16615.29 14866.10 1749.19 The difference is due to the following:
(i) Subsequent reclassification of advances from customers to liabilities - Rs. 2606.95 lakhs
(ii) The above is partially offset consequent to period-end revenue cut-off adjustment procedures - (Rs. 857.76 lakhs)
ICICI bank Rs. 45 crores Inventories December 2021 3000.14 2308.31 691.83 Period-end revenue cut-off adjustment procedures
ICICI bank Rs. 45 crores Trade receivables March 2022 22057.15 20966.37 1090.78 The difference is due to the following:
(i) of advances from customers to liabilities - Rs. 2505.10 lakhs
(ii)The above is partially offset consequent to period-end revenue cut-off adjustment procedures - (Rs. 1414.32 lakhs)
ICICI bank Rs. 45 crores Inventories March 2022 2636.34 1388.00 1248.34 Period-end revenue cut-off adjustment procedures

iii. (a) The Company has granted unsecured loans to employees. The aggregate amountgranted during the year is Rs. 1.20 lakhs and balance outstanding at the Balance Sheetdate with respect to such loans is Rs. 0.52 lakhs. The Company has not made anyinvestments granted secured loans/ advances in nature of loans or stood guarantee orprovided securities during the year to any parties.

(b) In respect of the aforesaid loans the terms and conditions under which such loanswere granted are not prejudicial to the Company’s interest.

(c) In respect of the aforesaid loans the schedule of repayment of principal andpayment of interest has been stipulated and the parties are repaying the principalamounts as stipulated and are also regular in payment of interest as applicable.

(d) In respect of the aforesaid loans there is no amount which is overdue for morethan ninety days.

(e) There were no loans which fell due during the year and were renewed/extended.Further no fresh loans were granted to same parties to settle the existing overdue loans.

(f) There were no other loans/advances in nature of loans which were granted during theyear including to promoters/related parties.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Sections 185 and 186. Therefore thereporting under clause 3(iv) of the Order are not applicable to the Company.

v. The Company has not accepted any deposits or amounts which are deemed to be depositswithin the meaning of Sections 73 74 75 and

76 of the Act and the Rules framed there under to the extent notified.

vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We havenot however made a detailed examination of the records with a view to determine whetherthey are accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion except for dues in respect of employees’state insurance and duty of excise the Company is generally regular in depositingundisputed statutory dues in respect of income tax though there has been a slight delayin a few cases and is regular in depositing undisputed statutory dues includingprovident fund goods and service tax duty of customs and other material statutory duesas applicable with the appropriate authorities. Also refer note 43(f) to the standalonefinancial statements regarding management’s assessment on certain matters relating toprovident fund.

The extent of the arrears of statutory dues outstanding as at March 31 2022 for aperiod of more than six months from the date they became payable are as follows:

Name of the statute Nature of dues Amount (Rs.in lakhs) Period to which the amount relates Due date Date of Payment
Employee’s State Interest on ESIC 40.85 2000-2007 and April 2000 to 2007 and Not paid
Insurance Act 1948 2008 to May 2010 2008 to 2010
Central Excise Act 1944 Central Excise 3.44 April 1986 to October 1986 and 1995 Not paid
1986 May 1995 to
December 1995

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of employees’ state insurance goods andservice tax and provident fund which have not been deposited on account of any dispute.The particulars of dues of income tax sales tax service tax duty of customs duty ofexcise duty and value added tax as at March 31 2022 which have not been deposited onaccount of a dispute are as follows:

Name of the statute Nature of dues Amount unpaid (Rs. In lakhs) # Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Central Excise 13.41 1998-2000 2002-03 Supreme Court
Central Excise Act 1944 Central Excise 39.43 1989-1990 to 2003-2004 Commissioner of Central Excise (Appeals)
Central Excise Act 1944 Central Excise 8.11 1999-2000 Commissioner of Central Excise
Central Excise Act 1944 Central Excise 81.33 1997-1999 Appellate Tribunal
Central Excise Act 1944 Central Excise 2914.72 2007-2008 to 2009-2010 Gujarat High Court
Central Excise Act 1944 Central Excise 1.41 2006-2011 Assistant Commissioner of Central Excise
Customs Act 1944 Customs Duty 4.79 1989-1990 to 1999-2000 Joint Director General of Foreign Trade
Maharashtra Value Added Tax Sales Tax 23.22 1999-2000 Joint Commissioner of Sales Tax
(Appeals) II
Central Sales Tax Act 1956 Sales Tax 0.92 1999-2000 Joint Commissioner of Sales Tax
(Appeals) II
Finance Act 1994 Service Tax 0.70 1997-1999 Appellate Tribunal
Income Tax Act 1961 Income Tax 138.50 Assessment Year 1997-1998 Bombay High Court
Income Tax Act 1961 Income Tax 1791.43 Assessment Years 1997-1998 1998-1999 2012-2013 2014-15 to 2019-20 Commissioner of Income Tax

# Net of amount paid under protest viii. According to the information and explanationsgiven to us and the records of the Company examined by us there are no transactions inthe books of account that has been surrendered or disclosed as income during the year inthe tax assessments under the Income Tax Act 1961 that has not been recorded in thebooks of account. ix. (a) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest to any lender during the year.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared Wilful Defaulter by anybank or financial institution or government or any government authority.

(c) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purposes for which they were obtained.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the standalone financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanations given to us and on an overallexamination of the standalone financial statements of the Company we report that theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries.

x. (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

Accordingly the reporting under clause 3(x)(a) of the Order is not applicable to theCompany.

(b) The Company has not made any preferential allotment or private placement of sharesor fully or partially or optionally convertible debentures during the year. Accordinglythe reporting under clause 3(x)(b) of the Order is not applicable to the Company. xi (a)During the course of our examination of the books and records of the Company carried outin accordance with the generally accepted auditing practices in India and according tothe information and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company noticed or reported during the year norhave we been informed of any such case by the Management.

(b) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us a report under Section 143(12)of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 was not required to be filed with the Central Government. Accordingly thereporting under clause 3(xi)(b) of the Order is not applicable to the Company.

(c) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us and as represented to us by themanagement no whistle-blower complaints have been received during the year by theCompany. Accordingly the reporting under clause 3(xi)(c) of the Order is not applicableto the Company.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the reporting under clause 3(xii) of the Order is not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the standalone financial statements as required underIndian Accounting Standard 24 "Related Party Disclosures" specified underSection 133 of the Act.

xiv. (a) In our opinion and according to the information and explanation given to usthe Company has an internal audit system commensurate with the size and nature of itsbusiness.

(b) The reports of the Internal Auditor for the period under audit have been consideredby us.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the reporting on compliance with the provisionsof Section 192 of the Act under clause 3(xv) of the Order is not applicable to theCompany.

xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the reporting under clause 3(xvi)(a) of theOrder is not applicable to the Company.

(b) The Company has not conducted non-banking financial / housing finance activitiesduring the year. Accordingly the reporting under clause 3(xvi)(b) of the Order is notapplicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the reporting under clause 3(xvi)(c) ofthe Order is not applicable to the Company.

(d) Based on the information and explanations provided by the management of theCompany the Group does not have any CICs which are part of the Group. We have nothowever separately evaluated whether the information provided by the management isaccurate and complete. Accordingly the reporting under clause 3(xvi)(d) of the Order isnot applicable to the Company.

(xvii)The Company has not incurred any cash losses in the financial year and hadincurred cash losses of Rs. 6776.32 lakhs in the immediately preceding financial year.

(xviii)There has been no resignation of the statutory auditors during the year andaccordingly the reporting under clause

(xviii) is not applicable.

(xix) According to the information and explanations given to us and on the basis of thefinancial ratios (Also refer Note 52 to the standalone financial statements) ageing andexpected dates of realisation of financial assets and payment of financial liabilitiesother information accompanying the standalone financial statements our knowledge of theBoard of Directors and management plans and based on our examination of the evidencesupporting the assumptions nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report 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) As at balance sheet date the Company does not have any amount remaining unspentunder Section 135(5) of the Act. Accordingly reporting under clause 3(xx)(a) and 3(xx)(b)of the Order is not applicable.

(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect ofaudit of standalone financial statements. Accordingly no comment in respect of the saidclause has been included in this report.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Priyanshu Gundana
Partner
Place: Mumbai Membership Number: 109553
Date: May 28 2022 UDIN: 22109553AJUMMV7983

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