You are here » Home » Companies » Company Overview » Rane (Madras) Ltd

Rane (Madras) Ltd.

BSE: 532661 Sector: Auto
NSE: RML ISIN Code: INE050H01012
BSE 12:49 | 28 Sep 362.40 -1.50
(-0.41%)
OPEN

361.70

HIGH

362.60

LOW

361.70

NSE 12:34 | 28 Sep 362.20 -2.20
(-0.60%)
OPEN

365.90

HIGH

365.90

LOW

360.65

OPEN 361.70
PREVIOUS CLOSE 363.90
VOLUME 27
52-Week high 450.50
52-Week low 260.00
P/E 11.13
Mkt Cap.(Rs cr) 590
Buy Price 361.70
Buy Qty 1.00
Sell Price 362.70
Sell Qty 8.00
OPEN 361.70
CLOSE 363.90
VOLUME 27
52-Week high 450.50
52-Week low 260.00
P/E 11.13
Mkt Cap.(Rs cr) 590
Buy Price 361.70
Buy Qty 1.00
Sell Price 362.70
Sell Qty 8.00

Rane (Madras) Ltd. (RML) - Auditors Report

Company auditors report

To

The members of

Rane (madras) limited

Report on the audit of the standalone financial statements

Opinion

We have audited the standalone financial statements of rane (madras) limited (the"company") which comprise the standalone balance sheet as at march 31 2022and the standalone statement of profit and loss (including other comprehensive income)standalone statement of changes in equity and standalone statement of cash flows for theyear then ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements).

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 ("act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in india of thestate of affairs of the company as at march 31 2022 and its profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for opinion

We conducted our audit in accordance with the standards on auditing (sas) specifiedunder section 143(10) of the act.

Our responsibilities under those sas are further described in the auditor'sresponsibilities for the audit of the standalone financial statements section ofour report. We are independent of the company in accordance with the code of ethics issuedby the institute of chartered accountants of india together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the code of ethics. We believethat the audit evidence obtained by us is sufficient and appropriate to provide a basisfor our opinion on the standalone financial statements.

Emphasis of matter

We draw attention to note 1.35 of the standalone financial statements which describesthe economic and social consequences / disruption as a result of covid-19 which impactmatters relating to supply chain customer demand commodity prices personnel availablefor work etc.

Our opinion is not modified in respect of this matter.

Key audit matters

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 aseparate opinion on these matters.

The key audit matter How the matter was addressed in our audit
Investments in subsidiary In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
Refer note 1.29 6.1 and 33.2 to the standalone financial statements.
The company has an investment in non- convertible redeemable preference shares in its subsidiary Amounting to inr 269.72 crores as at march 312022 (gross Amount of investment) which is measured at fair value through profit and loss. The company has recognised a cumulative fair value loss of inr 99.54 crores on this investment as at march 31 2022 without any material incremental fair value adjustment during the year. • assessed the appropriateness of accounting policy as per relevant accounting standard.
the fair values were determined using a discounted cash flow model. Such determination involves significant judgements and estimates including estimates of revenue growth rate terminal growth rate discount rate and also those related to the possible effects of covid-19. • assessed the design and implementation of key internal financial controls and tested the operating effectiveness of such controls.
we have identified the aforesaid matter as a key audit matter since it involves significant judgement in making the above estimates especially in view of significant losses incurred by its step-down subsidiary and the highly uncertain economic environment and hence the actual results may differ from those estimated at the date of approval of these standalone financial statements. • involved our valuation specialist to assist us in evaluating the appropriateness of the valuation model the assumptions and methodologies used by the company for assessing the fair value of the investment.
• evaluated the objectivity independence and competence of the valuation specialist engaged by company.
• evaluated the appropriateness of the key assumptions used in estimating future cash flows such as revenue growth rate discount rate terminal growth rate including the possible effects of covid-19. This evaluation was based on our knowledge of the company and the industry observable market data past performances consistency with the board approved plans and inquiries of the auditors of the subsidiary.
• performed procedures in respect of sensitivity analysis of the key assumptions used in the valuation model.
• assessed the adequacy of the disclosures in the standalone financial statements.

Other information

The company's management and board of directors are responsible for the otherinformation. The other information comprises of reports such as board's report managementdiscussion and analysis corporate governance report and business responsibility report(but does not include the standalone financial statements and our auditor's reportthereon) which we obtained prior to the date of this auditor's report and the remainingsections of annual report which are expected to be made available to us after that date.

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 on the otherinformation that we obtained prior to the date of this auditor's report.

When we read the remaining sections of annual report if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take necessary actions as applicable under the applicable laws andregulations.

Management's and board of directors' responsibilities for the standalone financialstatements

The company's management and board of directors are 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 state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the company in accordance withthe accounting principles generally accepted in india including the indian accountingstandards (ind as) specified under section 133 of the act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe act for safeguarding of the assets of the company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements the management and board of directorsare responsible 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 the board of directors either intends to liquidate the companyor to cease operations or has no realistic alternative but to do so.

The board of directors is also responsible for overseeing the company's financialreporting process.

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

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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith sas will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with sas we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• obtain an understanding of internal control relevant to the audit in order todesign 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 companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness of such controls.

• evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial statementsmade by the management and board of directors.

• conclude on the appropriateness of the management and board of directors use ofthe going concern basis of accounting in preparation of standalone financial statementsand based on the audit evidence obtained whether a material uncertainty exists relatedto events or conditions that may cast significant doubt on the company's ability tocontinue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the company to cease tocontinue as a going concern.

• evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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

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

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

1. As required by the companies (auditor's report) order 2020 ("the order")issued by the central government of india in terms of section 143 (11) of the act we givein the "annexure a" a statement on the matters specified in paragraphs 3 and 4of the order to the extent applicable.

2. (a) 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 (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of Cash flows dealt with by this report are in agreement with thebooks of account.

D) in our opinion the aforesaid standalone financial statements comply with the ind asspecified under section 133 of the act.

E) on the basis of the written representations received from the directors taken onrecord by the board of directors none of the directors is disqualified as on march 312022 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 with reference tofinancial statements of the company and the operating effectiveness of such controlsrefer to our separate report in "annexure b".

(b) with respect to the other matters to be included in the auditor's report inaccordance with rule 11 of the companies (audit and auditor's) rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

A) the company has disclosed the impact of pending litigations as at march 31 2022 onits financial position in its standalone financial statements - refer note 40 to thestandalone financial statements.

B) the company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

C) there has been no delay in transferring Amounts required to be transferred to theinvestor education and protection fund by the company.

D) (i) the management has represented that to the best of its knowledge and belief asdisclosed in the note 38(iii) to the standalone financial statements no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the company to or in any persons or entities includingforeign entities ("intermediaries") with the understanding whether recorded inwriting or otherwise that the intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever ("ultimate beneficiaries") by or on behalf of the companyor

• provide any guarantee security or the like to or on behalf of the ultimatebeneficiaries.

(ii) the management has represented that to the best of its knowledge and belief asdisclosed in the note 38(iv) to the standalone financial statements no funds have beenreceived by the company from any persons or entities including foreign entities("funding parties") with the understanding whether recorded in writing orotherwise that the company shall:

• directly or indirectly lend or invest in other persons or entities identifiedin any manner whatsoever ("ultimate beneficiaries") by or on behalf of thefunding party or

• provide any guarantee security or the like from or on behalf of the ultimatebeneficiaries

(iii) based on such audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (d) (i) and (d) (ii) contain any material misstatement.

E) the company has neither declared nor paid any dividend during the year.

(c) with respect to the matter to be included in the auditor's report under section197(16) of the act:

In our opinion and according to the information and explanations given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of section 197 of the act. The remuneration paid to any director isnot in excess of the limit laid down under section 197 of the act. The ministry ofcorporate affairs has not prescribed other details under section 197(16) of the act whichare required to be commented upon by us.

Annexure a to the independent auditors' report

On the standalone financial statements of rane (madras) limited for the year endedmarch 31 2022.

(i) (a) (a) the company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment.

(b) the company has maintained proper records showing full particulars of intangibleassets.

(b) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has a programme of physicalverification of its property plant and equipment by which property plant and equipmentare verified in a phased manner over a period of three years. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of thecompany and the nature of its assets. No material discrepancies were noticed on suchverification.

(c) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of all the immovable propertieswhich are freehold are held in the name of the company. In respect of certain immovableproperties of land and buildings whose title deeds have been pledged with banks assecurity for term loans our reporting under this clause is based on confirmationsreceived from such banks that the immovable properties are held in the name of thecompany. In respect of immovable properties taken on lease and disclosed as right of useassets in the standalone financial statements the lease agreements are in the name of thecompany.

(d) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not revalued its propertyplant and equipment (including right of use assets) or intangible assets or both duringthe year.

(e) according to the information and explanations given to us and on the basis of ourexamination of the records of the company there are no proceedings initiated or pendingagainst the company for holding any benami property under the prohibition of benamiproperty transactions acl 1988 and rules made thereunder.

(ii) (a) the inventory except goods-in-transit and stocks lying with thirdparties has been physically verified by the management during the year. For stocks lyingwith third parties at the year-end written confirmations have been obtained and forgoods- in-transit subsequent evidence of receipts has been linked with inventory records.In our opinion the frequency of such verification is reasonable and procedures andcoverage as followed by management were appropriate. No discrepancies were noticedon verification between the physical stocks and the book records that were more than 10%in the aggregate of each class of inventory.

(b) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has been sanctioned working capitallimits in excess of five crore rupees in aggregate from banks or financial institutionson the basis of security of current assets. In our opinion the quarterly returns orstatements filed by the company with such banks or financial institutions are in agreementwith the books of account of the company except as set out in appendix i.

(iii) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not made any investmentsprovided guarantee or security granted loans or advances in the nature of loans securedor unsecured to firms limited liability partnership or any other parties during the year.The company has not granted any loans or advances in the nature of loans secured orunsecured to any company during the year. The company has made investments and providedguarantee to companies during the year in respect of which the requisite information is asbelow.

(a) based on the audit procedures carried on by us and as per the information andexplanations given to us the company has provided guarantee to any other entity during theyear as below:

Particulars Guarantees (in Rs. Crores)
Aggregate Amount during the year 49.60
- subsidiary
Balance outstanding as at balance sheet date 132.51
- subsidiary

(b) according to the information and explanations given to us and based on the auditprocedures conducted by us in our opinion the investments made guarantees providedduring the year and the terms and conditions of the guarantees provided during the yearare prima facie not prejudicial to the interest of the company. The company has notgranted any loans and advances in the nature of loans or security to any party during theyear.

(c) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not given any loans andadvances in the nature of loan to any party. Accordingly clause 3(iii)(c) of the order isnot applicable.

(d) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not given any loans andadvances in the nature of loans to any party. Accordingly clause 3(iii)(d) of the orderis not applicable.

(e) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not given any loans andadvances in the nature of loan to any party. Accordingly clause 3(iii)(e) of the order isnot applicable.

(f) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not granted any loans oradvances in the nature of loans either repayable on demand or without specifying any termsor period of repayment.

(iv) according to the information and explanations given to us and on the basis of ourexamination of records of the company in respect of investments made and guarantees givenby the company in our opinion the provisions of section 185 and 186 of the companies act2013 ("the act") have been complied with. The company has not given any loansand provided any security to any party.

(v) the company has not accepted any deposits or Amounts which are deemed to bedeposits from the public. Accordingly clause 3(v) of the order is not applicable.

(vi) according to the information and explanations given to us the central governmenthas not prescribed the maintenance of cost records under section 148 (1) of the companiesact 2013 ("the act") for the products manufactured by it. Accordinglyparagraph 3 (vi) of the order is not applicable

(vii) (a) the company does not have liability in respect of service tax duty ofexcise sales tax and value added tax during the year since effective 1 july 2017 thesestatutory dues has been subsumed into goods and services tax ('gst').

According to the information and explanations given to us and on the basis of ourexamination of the records of the company in our opinion Amounts deducted / accrued inthe books of accounts in respect of undisputed statutory dues including goods and servicestax ('gst') provident fund employees' state insurance income-tax duty of customs cessand other statutory dues have been regularly deposited by the company with the appropriateauthorities.

According to the information and explanations given to us and on the basis of ourexamination of the records of the company no undisputed Amounts payable in respect ofgoods and services tax ('gst') provident fund employees' state insurance income-taxduty of customs cess and other statutory dues were in arrears as at march 31 2022 for aperiod of more than six months from the date they became payable.

(b) according to the information and explanations given to us and on the basis of ourexamination of the records of the company statutory dues relating to service tax duty ofexcise sales tax and value added tax income-tax duty of customs or cess or otherstatutory dues which have not been deposited on account of any dispute is set out inappendix ii.

(viii) according to the information and explanations given to us and on the basis ofour examination of the records of the company the company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the income tax act 1961 as income during the year.

(ix) (a) according to the information and explanations given to us and on thebasis of our examination of the records of the company the company has not defaulted inrepayment of loans and borrowing or in the payment of interest thereon to any lender.

(b) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not been declared a wilfuldefaulter by any bank or financial institution or government or government authority.

(c) in our opinion and according to the information and explanations given to us by themanagement term loans were applied for the purpose for which the loans were obtained.

(d) according to the information and explanations given to us and on an overallexamination of the balance sheet of the company we report that no funds raised onshort-term basis have been used for long-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 as defined under companies act 2013.

(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 as defined under companies act 2013.

(x) (a) the company has not raised any moneys by way of initial public offer orfurther public offer (including debt instruments). Accordingly clause 3(x)(a) of theorder is not applicable.

(b) according to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not made private placement ofshares or fully or partly convertible debentures during the year. In our opinion inrespect of preferential allotment of equity shares made during the year thecompany has duly complied with the requirements of section 42 and section 62 of the act.The proceeds from issue of equity shares have been used for the purposes for which thefunds were raised.

(xi) (a) based on examination of the books and records of the company andaccording to the information and explanations given to us considering the principles ofmateriality outlined in standards on auditing we report that no fraud by the company oron the company has been noticed or reported during the course of the audit.

(b) according to the information and explanations given to us no report undersub-section (12) of section 143 of the companies act has been filed by the auditors inform adt-4 as prescribed under rule 13 of companies (audit and auditors) rules 2014 withthe central government.

(c) we have taken into consideration the whistle blower complaints received by thecompany during the year while determining the nature timing and extent of our auditprocedures.

(xii) in our opinion and according to the information and explanations given to us thecompany is not a nidhi company. Accordingly paragraph 3 (xii) of the order is notapplicable.

(xiii) in our opinion and according to the information and explanations given to usthe transactions with related parties are in compliance with section 177 and 188 of theact where applicable and the details of the related party transactions have beendisclosed in the standalone financial statements as required by the applicable accountingstandards.

(xiv) (a) based on information and explanations provided to us and our auditprocedures in our opinion the company has an internal audit system commensurate with thesize and nature of its business.

(b) we have considered the internal audit reports of the company issued till date forthe period under audit.

(xv) in our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with its directors or personsconnected to its directors and hence provisions of section 192 of the act are notapplicable to the company.

(xvi) (a) the company is not required to be registered under section 45-ia ofthe reserve bank of india act 1934. Accordingly clause 3(xvi)(a) of the order is notapplicable.

(b) the company is not required to be registered under section 45-ia of the reservebank of india act 1934. Accordingly clause 3(xvi)(b) of the order is notapplicable.

(c) the company is not a core investment company (cic) as defined in the regulationsmade by the reserve bank of india. Accordingly clause 3(xvi) (c) of the order is notapplicable.

(d) the company is not part of any group (as per the provisions of the core investmentcompanies (reserve bank) directions 2016 as amended). Accordingly the requirements ofclause 3(xvi)(d) are not applicable.

(xvii) the company has not incurred cash losses in the current and in the immediatelypreceding financial year.

(xviii) there has been no resignation of the statutory auditors during the year.Accordingly clause 3(xviii) of the order is not applicable.

(xix) according to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the standalone financialstatements our knowledge of the board of directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

(xx) (a) i n our opinion and according to the information and explanations givento us there is no unspent Amount under sub-section (5) of section 135 of the act pursuantto any project. Accordingly clause 3(xx)(a) of the order is not applicable.

(b) in our opinion and according to the information and explanations given to us thereis no unspent Amount under sub-section (5) of section 135 of the act pursuant to anyongoing project. Accordingly clause 3(xx)(b) of the order is not applicable.

Appendix i to the independent auditors' report

Reconciliation of information in respect of quarterly returns or statements filed bythe company with banks or financial institutions with the books of accounts:

Quarter Name of bank Particulars Amount as per books of account Amount as reported in the quarterly return/ statement Amount of difference Whether return/ statement subsequently rectified
Kotak mahindra bank Sales 295.10 301.91 (6.81)
Trade payables 200.44 154.04 46.40
Rbl bank limited
Jun 2021 Kotak mahindra bank
Hdfc bank Trade receivables 214.15 223.53 (9.38)
Dbs bank india limited
Standard chartered bank
Kotak mahindra bank Sales 700.24 716.93 (16.69)
Trade payables 229.64 170.51 59.13
Rbl bank limited
Sep 2021 Kotak mahindra bank
Hdfc bank Trade receivables 270.89 289.10 (18.21)
Dbs bank india limited
Standard chartered bank Refer note below
Kotak mahindra bank Sales 1081.57 1099.82 (18.25)
Trade payables 237.12 177.99 59.13
Rbl bank limited
Dec 2021 Kotak mahindra bank
Hdfc bank Trade receivables 246.40 248.23 (1.83)
Dbs bank india limited
Standard chartered bank
Kotak mahindra bank Sales 1532.18 1545.78 (13.60)
Trade payables 231.52 181.07 50.45
Rbl bank limited
Mar 2022 Kotak mahindra bank
Hdfc bank Trade receivables 313.17 301.64 11.53
Dbs bank india limited
Standard chartered bank

Note: impact considered through cumulative information provided for the financial yearduring quarterly returns/ statements submission except as at march 312022.

Also refer note 38(x) to the financial statements.

Appendix ii to the independent auditors' report

Details of statutory dues which have not been deposited on account of any dispute

Nature of dues Name of the statute Forum where the dispute is pending Period to which the Amount relates Disputed Amount (in inr crores) Amounts unpaid (in inr crores) *
Excise duty Central excise act 1945 Customs goods & service tax appellate tribunal chennai 2012-13 0.75
Finance act 1994 Customs goods & service tax appellate 2007-08 to 2011-12 0.72 -
Service tax Tribunal chennai
Assistant commissioner mzamabad 2011-12 0.07 0.04
Maharashtra vat act 2002 Maharashtra sales tax appellate tribunal 2005-06 200607 and 2008-09 1.10 1.08
Tamil nadu value added tax act 2006 Assistant commissioner alandur tamil nadu 2011-12 to 2015-16 0.28 -
Tamil nadu value added tax act 2006 Assistant commissioner alandur tamil nadu 2014-15 0.34 0.34
Tamil nadu value added tax act 2006 (cst) Assistant commissioner alandur tamil nadu 2014-15 and 15-16 0.18 -
Tamil nadu value added tax act 2006 (cst) Deputy commissioner (appeals) tamil nadu 2016-17 and 2017-18 1.76 1.76
Karnataka value added tax act 2003 Commissioner of sales tax (appeals) mysore 2013-14 to 2016-17 0.46 -
Sales tax /vat Puducherry value added tax act 2007 Commissioner of sales tax (appeals) pondicherry 2010-11 0.07 0.03
Uttarakhand value added tax act 2005 Joint commissioner of sales tax (appeals) uttranchal 2011-12 0.61 0.60
Haryana value added tax act 2003 Commissioner of sales tax (appeals)- gurgaon 2014-15 0.01 0.01
Telangana value added tax act 2005 Telangana high court 2012-13 1.40 1.40
Telangana entry of goods into local areas act 2001 Ap & telangana high court 2011-12 to 2017-18 1.07 0.80
Telangana value added tax act 2005 Commissioner (appeals) 2012-13 to 2015-16 0.07 0.07
Commissioner of income tax (appeals) 2008-09 7.52 5.52
Commissioner of income tax (appeals) 2009-10 0.19 -
Commissioner of income tax (appeals) 2010-11 1.91 0.67
Income tax Income tax act 1961 Commissioner of income tax (appeals) 2012-13 2.39 1.82
Commissioner of income tax (appeals) 2013-14 0.13 0.13
Commissioner of income tax (appeals) 2016-17 3.14 3.14
Commissioner of income tax (appeals) 2018-19 2.78 2.78

* net of Amount paid under protest.

Annexure b to the independent auditors' report

On the standalone financial statements of rane (madras) limited for the year endedmarch 31 2022

Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under clause (i) of sub-section 3 of section 143 of the companiesact 2013 (referred to in paragraph 2(a)(f) under 'report on other legal andregulatory requirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof rane (madras) limited ("the company") as of march 31 2022 in conjunctionwith our audit of the standalone financial statements of the company for the year ended onthat date.

In our opinion the company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at march 31 2022 based on the internal financial controls withreference to financial statements criteria established by the company considering theessential components of internal control stated in the guidance note on audit of internalfinancial controls over financial reporting issued by the institute of charteredaccountants of india (the "guidance note").

Management's responsibility for internal financial controls

The company's management and the board of directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the company considering theessential components of internal control stated in the guidance note. 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 (hereinafter referred to as"the act").

Auditors' responsibility

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 prescribed undersection 143(10) of the act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. Those standards and the guidance noterequire that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to financial statements were established and maintained and whether suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the company's internal financial controls withreference to financial statements.

Meaning of internal financial controls with reference to financial statements

A company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements include those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that couldhave a material effect on the standalone financial statements.

Inherent limitations of internal financial controls with reference to financialstatements

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 standalone financial statements to future periods are subject to the riskthat the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

For b s r & co. Llp
Chartered accountants
Firm's registration number : 101248 w/w-100022
S sethuraman partner
Place: chennai Membership no. 203491
Date: may 20 2022 Icai udm: 22203491 ajhivq1239

.