To The Members of Rane (Madras) Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements ofrane (Madras) Limited ("the Company) which comprise the Balance Sheet as atMarch 31 2020 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS) and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2020and its loss total comprehensive loss its cash flows and the changes in equity for theyear 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 the Code of Ethics issued
by the Institute of Chartered Accountants of India (ICAI) together withthe 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 is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
emphasis of matter
We draw attention to Note 39 to the Financial Statements which fullydescribes the management's assessment of impairment of investment loans and otherfinancial assets in an operating wholly owned step down subsidiary which have taken intoconsideration the adverse business impact and uncertainties arising from COVID 19pandemic. Such estimates are based on current facts and circumstances and may notnecessarily reflect the future uncertainties and events arising from the full impact ofthe COVID 19 pandemic.
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.
|Sr. No Key audit Matter ||auditor Response |
|impairment of investment loans and other financial assets in a step down subsidiary (either directly or through intermediate subsidiary) ||Principal audit procedures performed: |
|a. Evaluated the design and implementation of the relevant controls and the operating effectiveness of such internal controls which inter-alia includes the completeness and accuracy of the input data considered reasonableness of the assumptions considered in determining the present value of future cash flows. |
|the total financial exposure of the Company in an operating step down subsidiary is represented by investments in equity shares loans and other financial assets (either directly or through intermediate subsidiary) aggregating to ' 155.66 Crores as at March 31 2020. Refer Note 7.1 to the standalone Financial statements. |
|b. obtained the business projections of the step down subsidiary (prepared by the Management) and performed the following procedures: |
|Due to the significant losses incurred by the said step down subsidiary the management has carried out an impairment assessment of these assets and have recognized an impairment loss of ' 37.58 crores against these investments and loans and other financial assets. |
|i. Conducted inquiries with the Company/ subsidiary personnel to identify if factors that in our professional judgement should be taken into account in the impairment analysis were considered by the Management. |
|Impairment of investment loans and other financial assets in the said step down subsidiary has been identified as a key audit matter due to: ||ii. Compared the actual revenues and cash flows generated by the step-down subsidiary during the year with the plan and estimates considered in the previous year |
|a. the significance of the carrying value of the assets being assessed; and |
|iii. verified if the cash flow projections of the step- down subsidiary considered for the assessment of impairment were as per cash flow projections reviewed and approved by the Board of Directors of the Company. |
|b. the assessment of the carrying value of the Investments involves assumptions and exercising significant judgements in estimating the recoverable value of the step down subsidiary including taking into account the possible effect of the pandemic relating to CoviD-19. Any adverse changes to these assumptions could result in in lower recoverable value than the carrying amount. |
|iv. evaluated the Management's future cash flow projections with regard to the appropriateness of key assumptions considered including discount rate growth rate sensitivity analysis of the key assumptions etc. duly considering the impact of the CoviD-19 pandemic and the historical accuracy of the Company's estimates in the prior period. |
| ||v. involved internal fair valuation specialists to review key assumptions considered in the future cash projections such as discount rate and model etc. |
| ||vi. inquired the auditors of the step down subsidiary with respect to the appropriateness of the cash flow projections considered and impact of CoviD- 19 pandemic thereon. |
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 Director's report and its annexures butdoes not include the consolidated financial statements standalone financial statementsand our auditor's report thereon.
Our opinion on the standalone financial statements does notcover the other information and we do not express any form of assurance conclusion thereon
In connection with our audit of the standalone financialstatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the standalone financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.
If based on the work we have performed on the other informationthat we obtained prior to the date of this auditor's report 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 StandaloneFinancial 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 theStandalone Financial Statements
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 standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. we consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
we communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that 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.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act based on our audit 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.
c) The Balance sheet the statement of profit and Loss including otherComprehensive income the statement of Cash Flows 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 AcL
e) on the basis of the written representations received from thedirectors as on March 312020 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 AcL
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 inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith 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.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016("the Order) issued by the Central Government in terms of section 143(11) ofthe Act we give in "Annexure B a statement on the matters specified inparagraphs 3 and 4 of the Order.
| ||For Deloitte Haskins & Sells |
| ||Chartered Accountants |
| ||(Firm's Registration No. 008072s) |
| ||Ananthi Amarnath |
| ||partner |
|place: Chennai ||(Membership No. 209252) |
|Date: June 18 2020 ||(UDIN: 20209252AAAAFN3702) |
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 Rane (Madras) Limited ("the Company) as of March 31 2020 inconjunction with our audit of the standalone ind AS financial statements of the Companyfor the year 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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 financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting Acompany's internal financial control over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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.
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 |
| ||Chartered Accountants |
| ||(Firm's Registration No. 008072S) |
| ||Ananthi Amarnath |
| ||partner |
|Place: Chennai ||(Membership No. 209252) |
|Date: June 18 2020 ||(UDiN: 20209252AAAAFN3702) |
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph (2) under 'Report onOther Legal and Regulatory Requirements' section of our report of even date)
(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of the fixed assets (propertyplant & equipment and Intangible assets).
(b) the fixed assets (property plant & equipment) were physicallyverified during the year by the Management in accordance with a programme of verificationwhich in our opinion provides for physical verification of all the fixed assets atreasonable intervals. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.
(c) with respect to immovable properties of acquired land and buildingsthat are freehold according to the information and explanations given to us and therecords examined by us and based on the examination of registered sale deed provided tous we report that the title deeds of such immovable properties are held in the name ofthe Company as at the balance sheet date.
immovable properties of land and buildings whose title deeds have beenpledged with banks as security for term loans are held in the name of the Company basedon the confirmations directly received by us from the lenders.
I n respect of immovable properties of land and building that have beentaken on lease and disclosed as right of use assets in the standalone financialstatements the lease agreements are in the name of the Company.
(ii) As explained to us the inventories were physically verifiedduring the year by the Management at reasonable intervals and no material discrepancieswere noticed on physical verification.
(iii) According to the information and explanations given to us theCompany has granted loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 in respect of which:
(a) The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.
(b) The schedule of repayment of principal and payment of interest hasbeen stipulated and repayments or receipts of principal amounts and interest have beenregular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the balancesheet date.
(iv) I n our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of the loans making investments and providing guaranteesas applicable.
(v) According to the information and explanation given to us thecompany has not accepted any deposit during the year also the company does not have anyunclaimed deposits.
(vi) The maintenance of cost records has been specified by the CentralGovernment under section 148(1) of the Companies Act 2013. We have broadly reviewed thecost records maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended prescribed by the Central Government under sub-section (1) ofSection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained. we have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
(vii) According to the information and explanations given to us inrespect of statutory dues:
(a) The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income-tax Goodsand Service Tax Customs Duty Cess and other material statutory dues applicable to itwith the appropriate authorities.
(b) There were no undisputed amounts payable in respect of providentFund Employees' State Insurance Income-tax Goods and Service Tax Customs Duty Cessand other material statutory dues in arrears as at March 312020 for a period of more thansix months from the date they became payable.
(c) Details of dues of Income-tax Sales Tax Service Tax CustomsDuty Entry Tax and Excise Duty which have not been deposited as on March 312020 onaccount of disputes are given below:
|Name of the Statute ||Nature of Dues ||Forum where dispute is pending ||Period to which amount relates ||Amount involved ('In crores) ||Amount unpaid (' in crores) |
|Central excise Act 1945 ||excise Duty ||Customs goods & service tax Appellate tribunal Chennai ||2012-13 ||0.75 || |
|Finance Act 1994 ||service tax ||Customs goods & service tax Appellate tribunal Chennai ||2007-08 to 2011-12 ||0.72 || |
|Finance Act 1994 ||service tax ||Customs goods & service tax Appellate tribunal Chennai ||2007-08 to 2011-12 ||0.20 ||0.20 |
|Finance Act 1994 ||service tax ||Assistant Commissioner Nizamabad ||2011-12 ||0.07 ||0.04 |
|Maharashtra value added tax AcT 2002 ||sales tax ||Commissioner (Appeals) ||2005-06 200607 & 2008-09 ||1.10 ||1.08 |
|Karnataka Tax on Entry of Goods AcT 1979 ||sales tax ||Karnataka High Court ||2005- 06& 2006- 07 ||0.09 ||- |
|Karnataka Tax on Entry of Goods Act 1979 ||sales tax ||Commissioner (Appeals) ||2007-08 to 2012-13 ||0.10 ||- |
|Central sales tax AcT 1956 ||sales tax ||Deputy Commissioner Mysore ||2013-14 & 14-15 ||0.28 ||0.18 |
|Central sales tax Act 1956 ||sales tax ||Commissioner of sales tax (Appeals) pondicherry ||2010-11 ||0.07 ||0.03 |
|Central sales tax Act 1956 ||sales tax ||Assistant Commissioner Alandur tamilnadu ||2014-15 201617 and 2017-18 ||4.36 ||4.36 |
|Central sales tax Act 1956 ||sales tax ||Assistant Commissioner Alandur tamilnadu ||2011-12 to 2015-16 ||0.24 ||- |
|Central sales tax Act 1956 ||sales tax ||Commissioner of sales tax (Appeals) pant nagar ||2010-11 ||0.92 ||0.83 |
|Central sales tax Act 1956 ||sales tax ||Commissioner of sales tax (Appeals) pant nagar ||2011-12 ||0.60 ||0.59 |
|Central sales tax Act 1956 ||sales tax ||Commissioner of sales tax (Appeals) gurgaon ||2014-15 ||0.01 ||0.01 |
|telangana entry of Goods into Local Areas Act 2001 ||sales tax ||Ap & telangana High Court ||2011-12 to 2017-18 ||1.07 ||0.80 |
|telangana vAT Act ||sales tax ||Commissioner (Appeals) ||2012-13 to 2015-16 ||0.07 ||0.07 |
|income tax AcT 1961 ||income tax ||supreme Court ||1997-98 ||0.31 ||0.31 |
|income tax Act 1961 ||income tax ||High Court ||1996-97 ||0.07 ||0.07 |
|income tax Act 1961 ||income tax ||Commissioner of income tax (Appeals) ||2008-09 ||7.52 ||5.52 |
|income tax Act 1961 ||income tax ||Commissioner of income tax (Appeals) ||2009-10 ||1.93 ||- |
|income tax Act 1961 ||income tax ||Commissioner of income tax (Appeals) ||2010-11 ||1.91 ||1.91 |
|income tax Act 1961 ||income tax ||Deputy Commissioner of income tax ||2011-12 ||0.42 ||0.42 |
|income tax Act 1961 ||income tax ||Commissioner of income tax (Appeals) ||2012-13 ||2.39 ||1.82 |
|income tax Act 1961 ||income tax ||Commissioner of income tax (Appeals) ||2013-14 ||0.13 ||0.13 |
|income tax Act 1961 ||income tax ||Commissioner of income tax (Appeals) ||2016-17 ||3.14 ||3.14 |
|income tax Act 1961 ||income tax ||Commissioner of income tax (Appeals) ||2018-19 ||0.46 ||0.46 |
(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 tobanks. The Company has not taken any loans or borrowings from financial institutions andgovernment. the Company has not issued any debentures.
(ix) the Company has not raised moneys by way of initial public offeror further public offer (including debt instruments). According to the information andexplanations given to us in respect of term loans the Company has applied the money forthe purposes for which it was raised other than temporary deployment pending application.
(x) To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company or 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 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 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements as required bythe applicable accounting standards.
(xiv) According to the information and explanations given to us theCompany has made preferential
allotment of shares during the year. In respect of this issue wefurther report that:
(a) the requirement of section 42 of the Companies Act 2013 asapplicable have been complied with; and
(b) the amounts raised have been applied by the Company during the yearfor the purposes for which the funds were raised other than temporary deployment pendingapplication.
(xv) in our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any noncash transactionswith its directors or persons connected with him and hence provisions of
section 192 of the Companies Act 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-iof the Reserve Bank of india act 1934.
| ||For Deloitte Haskins & Sells |
| ||Chartered Accountants |
| ||(Firm's registration No. 008072s) |
| ||Ananthi Amarnath |
| ||partner |
|place: Chennai ||(Membership No. 209252) |
|Date: June 18 2020 ||(UDm: 20209252AAAAFN3702) |