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Redington India Ltd.

BSE: 532805 Sector: Others
NSE: REDINGTON ISIN Code: INE891D01026
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OPEN 116.75
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VOLUME 2208
52-Week high 139.85
52-Week low 60.00
P/E 9.35
Mkt Cap.(Rs cr) 4,508
Buy Price 116.40
Buy Qty 72.00
Sell Price 116.60
Sell Qty 64.00
OPEN 116.75
CLOSE 115.85
VOLUME 2208
52-Week high 139.85
52-Week low 60.00
P/E 9.35
Mkt Cap.(Rs cr) 4,508
Buy Price 116.40
Buy Qty 72.00
Sell Price 116.60
Sell Qty 64.00

Redington India Ltd. (REDINGTON) - Auditors Report

Company auditors report

To the Members of Redington (India) Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Redington(India) Limited ("the Company”) which comprise the standalone balance sheet asat March 312020 and the standalone statement of profit and loss (including othercomprehensive income) standalone statement of changes in equity and standalone statementof cash flows for the year then ended and notes to the standalone financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation in which are included the financial statements/financial information("the Returns”) for the year ended on that date audited by the branch auditorsof the Company's branch at Singapore.

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 ("Act”) in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312020and profit and other comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs arefurther described 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 obtained by usalong with the consideration of audit reports of the branch auditors referred to in the"Other Matters” paragraph below is sufficient and appropriate to provide a basisfor our opinion on the Standalone financial statements.

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.

The key audit matter How the matter was addressed in our audit
Revenue recognition and trade receivables
Revenue recognition involves certain key judgments relating to identification of contracts with customers identification of distinct performance obligations including assessment of the Company acting as a principal or agent in the transaction determination of transaction price and the basis used to recognise revenue either at a point in time or over a period of time. In view of the significance of the matter the following key audit procedures were performed by us:
• Assessed the appropriateness of the revenue recognition accounting policies and its compliances with applicable accounting standards.
• Tested the design implementation and operating effectiveness of key internal controls relating to revenue recognition.
Revenue is recognised when (or as) a performance obligation is satisfied i.e. when 'control' of the goods or services underlying the particular performance obligation is transferred to the customer.
• Performed substantive testing of revenue transactions recorded during the year on a sample basis by verifying the underlying documents of the sale.
Revenue recognition has been identified as a key audit matter because the Company and its external stakeholders focus on revenue as a key performance metric. This could create an incentive for revenue to be overstated or recognised before control has been transferred.
• Performed testing for samples of revenue transactions recorded closer to the year-end by verifying underlying documents to assess the accuracy of the period in which revenue was recognized.
Further the Company has significant trade receivables at year end. Given the size of the balances and the risk of some of the trade receivables not being recoverable judgement is required to evaluate the adequacy of allowance recorded to reflect the risk. See note 2(d)(i) 2(d)(vii) 3(i) 3(u) and 40(c) to the standalone financial statements.
• Selected samples of contractual arrangements tested the assessment of whether the Company acts as a principal or agent in the transaction and evaluated the recognition of revenue on a gross or net basis.
Evaluated management assessment of the impact on revenue recognition and consequential impact on the expected credit loss allowance and other areas of judgement including for possible effects if any from the COVID-19 pandemic.
Supplier rebates
The Company is entitled to price support from the suppliers in the form of rebates (also referred to as backend income). The Company has varied types of rebate schemes and the quantum of rebates recorded against cost of purchase of traded goods / services are significant in relation to the profits. Accordingly determination of the Company's entitlement to such rebates its quantum (involving estimation and judgements) and accuracy of period in which the rebates are recorded were areas of focus for our audit. In view of the significance of the matter the following key audit procedures were performed by us:
• Obtained an understanding of and assessed the design implementation and operating effectiveness of the Company's key internal controls over supplier rebates.
• Selected samples and verified underlying documents such as program/scheme documents credit notes / payments received to verify the accuracy of the amounts and the period in which the supplier rebates were recorded.
See note 2(d)(vi) to the standalone financial statements. • Selected samples of supplier rebates recorded in the subsequent financial period and verified the underlying documents to evaluate the accuracy of the period in which the supplier rebates were recorded.
Taxation related matters
Determination of tax provision and assessment of contingent liabilities in respect of various direct tax and indirect tax matters involves judgment interpretation of laws regulations judicial pronouncements etc. Judgment is also required in assessing the range of possible outcomes for some of these matters. In view of the significance of the matter the following key audit procedures were performed by us:
• Tested the design implementation and operating effectiveness of key internal controls relating taxation and contingencies.
The Company makes an assessment to determine the outcome of these matters and decides to make an accrual or consider it to be a possible contingent liability in accordance with applicable accounting standards. • Evaluated judgements used in respect of estimates of provisions exposures and contingencies.
• Involved our tax specialists to read and analyse select assessment orders and other correspondences obtained by Company for key tax matters.
Accordingly tax provisions and contingent liabilities are areas of focus in the audit.
• Evaluated the Company's judgements in respect of estimates of provisions exposures and contingencies by involving our tax specialists to assess the status of recent and current tax assessments.
See note 2(d)(iii) 3(n) 3(o) 37 and 48 to the standalone financial statements.
• Considered third party advice received by the Company wherever applicable the outcome of previous claims relevant judicial pronouncements and developments in the tax environment.
• Evaluated the adequacy of disclosures on provisions and contingencies made in the financial statements.
The key audit matter How the matter was addressed in our audit
Implementation of new Information Technology (IT) system
During the year the Company migrated to a new IT system from its legacy IT system. The new IT system is used by the Company to record its transactions across processes and is the core IT system for financial reporting. In view of the significance of the matter the following key audit procedures were performed by us:
• Engaged our IT specialists to understand the Company's process surrounding implementation of the new IT system.
Implementation of a new IT system presents inherent risks including the loss of integrity of key financial data being migrated and the breakdown in operation or monitoring of IT dependent controls within critical business processes which could lead to financial errors or misstatements and inaccurate financial reporting.
• Our IT specialists tested the General IT control environment of the new IT system IT access and segregation of duties as well as IT dependent controls within critical business processes.
• 1 n relation to the system migration itself our IT specialists tested the controls specifically established over the implementation of new IT system and migration of key financial data from the legacy to the new IT system.
• Performed independent verification of the data migration and reconciliation between legacy systems and the new IT system for a sample of general ledger and sub-ledgers.

Other Information

The Company's management and Board of Directors are responsible for theother information. The other information comprises of reports such as Board's ReportManagement Discussion and Analysis Corporate Governance Report and BusinessResponsibility Report (but does not include the standalone financial statements and ourauditors' report thereon) which we obtained prior to the date of this Auditor's Reportand the remaining sections of Annual report which are expected to be made available to usafter that date.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed on the other information that we obtained prior to thedate of this Auditor's Report we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

When we read the remaining sections of the Annual Report if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance and take necessary actions as applicable underthe applicable laws and regulations.

Management's and Board of Directors' Responsibilityfor the Standalone Financial Statements

The Company's Management and Board of Directors are responsible for thematters stated in section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairsprofit/ loss and other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of 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 accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements the Management andBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities 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:

• I dentify 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 control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the standalone financialstatements made by the Management and Board of Directors.

• Conclude on the appropriateness of the Management and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the standalone financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor's report. However future events orconditions may cause 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.

• Obtain sufficient appropriate audit evidence regarding thefinancial information of the branch of the Company. We are responsible for the directionsupervision and performance of the audit of the standalone financial statements of theCompany of which we are the independent auditors. For the branch included in thestandalone financial statements which have been audited by branch auditors such branchauditors remain responsible for the direction supervision and performance of the auditscarried out by them. We remain solely responsible for our audit opinion. Ourresponsibilities in this regard are further described in the section titled 'OtherMatters' in this audit report.

We believe that the audit evidence obtained by us along with theconsideration of audit reports of the branch auditors referred to in the Other Mattersparagraph below is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.

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 auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matters

We did not audit the standalone financial statements of a foreignbranch included in the standalone financial statements of the Company whose financialstatements reflect total assets of INR 210.89 crores as at March 312020 and the totalrevenue of INR 308.96 crores and net cash inflows of INR 41.60 crores for the year endedon that date as considered in the standalone financial statements. This branch has beenaudited by the branch auditors whose reports have been furnished to us and our opinion inso far as it relates to the amounts and disclosures included in respect of the branch isbased solely on the report of such branch auditors.

The branch's financial statements and other financial information havebeen prepared in accordance with accounting principles generally accepted in its countryand has been audited by branch auditors under the generally accepted auditing standardsapplicable in its country. The Company's management has converted the financial statementsof such branch located outside India from accounting principles generally accepted in itscountry to accounting principles generally accepted in India. We have audited theseconversion adjustments made by the Company's management. Our opinion in so far as itrelates to the balances and affairs of such branch located outside India is based on thereport of the branch auditors and the conversion adjustments prepared by the management ofthe Company and audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016("the Order”) issued by the Central Government in terms of section 143 (11) ofthe Act we give in the "Annexure A” a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. (A) As required by Section 143(3) of the Act based on our audit andon consideration of reports of the branch auditors

on separate financial statements of the branch as were audited bybranch auditors as noted in the 'Other Matters'

paragraph we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books and properreturns adequate for the purposes of our audit have been received from the branch notvisited by us.

c) The reports on the accounts of the branch office of the Companyaudited under Section 143(8) of the Act by branch auditors have been sent to us and havebeen properly dealt with by us in preparing this report.

d) The standalone balance sheet the standalone statement of profit andloss (including other comprehensive income) the standalone statement of changes in equityand the standalone statement of cash flows dealt with by this report are in agreement withthe books of account and with the returns received from the branch not visited by us.

e) I n our opinion the aforesaid standalone financial statementscomply with the Ind AS specified under section 133 of the Act.

f) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312020 from being appointed as a director in termsof Section 164(2) of the Act.

g) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 as atMarch 312020 on its financial position in its standalone financial statements - ReferNote 37 and 48 to the 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;

iv. The disclosures in the standalone financial statements regardingholdings as well as dealings in specified bank notes during the period from 8 November2016 to 30 December 2016 have not been made in these financial statements since they donot pertain to the financial year ended March 31 2020.

(C) With respect to the matter to be included in the Auditors' Reportunder section 197(16):

In our opinion and according to the information and explanations givento us the remuneration paid by the company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

for B S R & Co. LLP
Chartered Accountants
Firm's Registration No. - 101248W/W-100022
S Sethuraman
Partner
Membership No. 203491
UDIN: 20203491AAAABM8524
Place: Chennai
Date: June 112020

Annexure A to the Independent Auditors' Report Tothe Members of Redington (India) Limited

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of

fixed assets/ property plant and equipment and investment properties.

(b) The Company has a physical verification programme whereby certainitems of fixed assets/ property plant and equipment were verified during the year. In ouropinion the frequency of such physical verification programme is reasonable. According tothe information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of all theimmovable properties which are freehold are held in the name of the Company.

(ii) The inventory has been physically verified by the management atreasonable intervals during the year. In our opinion the frequency of such physicalverification is reasonable. Based on the information and explanations given to us nomaterial discrepancies were noticed during such physical verification.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly paragraph 3 (iii) of the Order is not applicable.

(iv) According to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments. As explained the Company has not given any guarantee orsecurity that are outstanding as at March 312020.

(v) According to the information and explanations given to us theCompany has not accepted any deposits as mentioned in the directives issued by ReserveBank of India and the provisions of sections 73 to 76 or any other relevant provisions ofthe Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is notapplicable.

(vi) The Central Government has not prescribed the maintenance of costrecords under section 148 (1) of the Act in respect of any of the activities of theCompany. Accordingly paragraph 3 (vi) of the Order is not applicable.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the

Company amounts deducted / accrued in the books of accounts in respectof undisputed statutory dues including provident fund employees' state insuranceincome-tax duty of customs and any other material statutory dues have been generallyregularly deposited during the year by the Company with the appropriate authorities. Asexplained to us the Company did not have any dues on account of duty of excise salestax service tax value added tax and cess.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax duty of customs and any other material statutory dues were in arrears as atMarch 312020 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us the duesof income tax sales tax service tax duty of customs and value added tax have not beendeposited by the Company on account of disputes are as set out in Appendix I. As explainedto us the Company did not have any dues on account of duty of excise.

(viii) I n our opinion and according to the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to banks or financial institutions. The Company has not taken any loans orborrowings from government and have not issued any debentures.

(ix) According to the information and explanations given to us theCompany has applied the money raised by way of debt instruments in the nature ofcommercial papers for the purposes for which those are raised. The Company did not raiseany money by way of initial public offer or further public offer or by way of term loansduring the year.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees have beennoticed or reported during the year.

(xi) According to the information and explanations given to us and onthe basis of our examination of records of the Company the managerial remuneration forthe year ended March 31 2020 has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the Act andrules framed thereunder.

(xii) I n our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3 (xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with the provisions of section 188 and 177 of the Act whereapplicable and the details of the such transactions have been disclosed in the standaloneInd AS financial statements as required by the Indian Accounting Standards.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3 (xiv) of the Order is not applicable.

(xv) According on the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with them during the year.Accordingly paragraph 3 (xv) of the Order is not applicable.

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

for B S R & Co. LLP
Chartered Accountants
Firm's Registration No. - 101248W/W-100022
S Sethuraman
Partner
Membership No. 203491
UDIN: 20203491AAAABM8524
Place: Chennai
Date: June 112020

Annexure B to the Independent Auditors' report onthe standalone financial statements of Redington (India) Limited for the year ended March312020

Report on the internal financial controls withreference to the aforesaid standalone financial statements under Clause (i) of Sub-section3 of Section 143 of the Companies Act 2013

(Referred to in paragraph 1(A)(g) under 'Report onOther Legal and Regulatory Requirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference tostandalone financial statements of Redington (India) Limited ("the Company”) asof March 312020 in conjunction with our audit of the standalone financial statements ofthe Company for the year ended on that date.

In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchinternal financial controls were operating effectively as at March 312020 based on theinternal financial controls with reference to standalone financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (the "Guidance Note”).

Management's Responsibility for Internal FinancialControls

The Company's management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal financialcontrols with reference to standalone financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 (hereinafterreferred to as "the Act”).

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to standalone financial statements based on our audit.We conducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to standalone financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to standalone financial statements included obtaining an understanding ofsuch internal financial controls assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the standalone financialstatements 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 with reference to standalone financial statements.

Meaning of Internal Financial controls withReference to Standalone Financial Statements

A company's internal financial controls with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial controls with reference to standalone financial statements includethose policies and procedures that (1) pertain to the maintenance of records that

in reasonable detail accurately and fairly reflect the transactionsand dispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of standalone financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financialcontrols with Reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that 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 No. - 101248W/W-100022
S Sethuraman
Partner
Membership No. 203491
UDIN: 20203491AAAABM8524
Place: Chennai
Date: June 112020

Appendix I to the Independent Auditors' Report Tothe Members of Redington (India) Limited

Details of statutory dues which have not been deposited on account ofany 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) *
High Court of Calcutta 2002-03 0.09 -
Special Commissioner -VAT Delhi 2009-10 0.55 0.55
Deputy Commissioner Delhi 2014-15 0.31 0.31
Central sales tax Central Sales Tax Act 1956 Joint Commissioner (Appeals) Mumbai 2010-11 2012-13 2013-14 and 2014-15 4.41 4.20
Additional Commissioner (Appeals) Kolkata 2013-14 and 2015-16 0.41 0.37
Deputy Commissioner (Appeals) Mumbai 2012- 13

2013- 14

2014- 15

2015-16 and

2016-17

5.98 1.70
West Bengal Value Added Tax Act 2003 West Bengal Taxation Tribunal Kolkata 2002-03 0.37 -
Additional Commissioner (Appeals) Kolkata 2015-16

2016-17 and 2017-18

0.51 0.46
Uttar Pradesh VAT Act 2008 Additional

Commissioner (Appeals) Lucknow

2005-06 0.01 0.01
Joint Commissioner (Appeals) Lucknow 2007-08 and 2015-16 0.03 -
Delhi Value Added Tax Act Special Commissioner-VAT Delhi 2005-06 and 2009-10 5.91 5.91
Sales tax /VAT 2004 Special Commissioner (OHA) Delhi 2010-11 11.31 11.21
Kerala Value Added Tax Act 2003 Deputy Commissioner (Appeals) Ernakulum 2005-06 2010-11 2013-14 2014-15 and 2015-16 2.20 1.80
Rajasthan Value Added Tax Act 2003 Tax Board Jaipur 2009- 10

2010- 11

2011-12

2012- 13

2013- 14

2014-15 and

2015-16

0.27 -
2009-10
Rajasthan Value Added Tax Act 2003 High court Jaipur 2010-11 2011-12 and 1.61 -
2012-13
2009-10
Jharkhand Value Added Tax Act 2005 Deputy Commissioner (Appeals) Ranchi 2011-12

2012-13 and

0.38 0.38
2014-15
2009-10
Bihar Value Added Tax Act 2005 Joint Commissioner (Appeals) Patna 2010-11

2011-12 and

0.65 0.07
2012-13
2009-10
Sales tax /VAT Karnataka Value Added Tax Act 2003 Sales tax Appellate Tribunal Bangalore 2010-11 2011-12 2012-13 and 2014-15 1.95 1.36
Joint Commissioner (Appeals) Bangalore 2013-14 0.69 0.48
2011-12

2012-13

Maharashtra Value Added Tax Act 2002 Deputy Commissioner (Appeals) Mumbai 2013- 14

2014- 15 2015-16 and

2016-17

10.60 7.03
Joint Commissioner (Appeals) Mumbai 2012-13 2013-14 and 2014-15 38.35 36.70
Orissa Value Added Tax Act 2004 Joint Commissioner (Appeals) Cuttack 2015-16 0.14 0.13
Chhattisgarh Value Added Tax Act 2005 Additional Commissioner Raipur 2011-12 2012-13 and 2013-14 0.38 0.19
Gujarat Value Added Tax Act 2003 Joint Commissioner (Appeals) Ahmedabad 2014-15 0.99 0.79
Duty of customs Customs Act 1962 CESTAT October 2013 to Jan 2017 23.10 23.10
Service tax The Finance Act 1994 Supreme Court October 2009 to September 2014 12.60 12.60
Income-tax Act 1961 CIT Appeals 2016-17 and 2017-18 1.55 -
High court of Madras 2005-06 and 2006-07 0.95 -
2005-06
Income tax Income-tax Act 1961 Income-tax Appellate Tribunal 2009-10

2012- 13

2013- 14

19.46 -
2014-15 and
2015-16
Income-tax Act 1961 High court of Madras 2009-10 194.58

* Net of amount paid under protest.