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Sagar Cements Ltd.

BSE: 502090 Sector: Industrials
NSE: SAGCEM ISIN Code: INE229C01021
BSE 00:00 | 02 Feb 207.35 -3.60
(-1.71%)
OPEN

205.05

HIGH

216.00

LOW

205.05

NSE 00:00 | 02 Feb 208.80 -1.10
(-0.52%)
OPEN

209.90

HIGH

215.95

LOW

206.65

OPEN 205.05
PREVIOUS CLOSE 210.95
VOLUME 5645
52-Week high 274.90
52-Week low 155.15
P/E 49.96
Mkt Cap.(Rs cr) 2,710
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 205.05
CLOSE 210.95
VOLUME 5645
52-Week high 274.90
52-Week low 155.15
P/E 49.96
Mkt Cap.(Rs cr) 2,710
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sagar Cements Ltd. (SAGCEM) - Auditors Report

Company auditors report

To The Members of Sagar Cements Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofSagar Cements Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Cash Flows and the Statement of Changes in Equity for the year thenended and a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us 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 2022and its profit total comprehensive income its cash flows and the changes in equity forthe year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor?s Responsibility for the Audit of the Standalone Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI?s Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professionaljudgement was of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.

Key Audit Matter Auditor?s Response
Revenue recognition - Price Equaliser Discounts (Refer Note 38 of the standalone financial statements) Principal audit procedures performed:
• Revenue is measured net of price equaliser discounts. • Assessed the appropriateness of the Company?s accounting policies relating to Price Equaliser discounts by comparing with Ind AS 115.
• Due to the Company?s presence across different marketing regions within the country and the competitive business environment price equaliser discounts vary based on the customer and market it caters to and recognised based on sales made during the year. These discounts are calculated based on the market study reports which reports are collated periodically by the management and are prone to compilation errors. • Assessed the design and tested the implementation and operating effectiveness of Company?s internal controls over the approvals calculation accounting and issuance of credit notes relating to price equaliser discounts.
• Therefore there is a risk of revenue being misstated as a result of incorrect computation of price equaliser discounts. • Obtained and inspected on a sample basis supporting documentation for price equaliser discounts recorded and credit notes issued during the year as well as credit notes issued after the year end date to determine whether these were recorded appropriately.
• Compared the historical trend of price equaliser discounts to sales made to identify outliers and held inquiries with the management on the appropriateness of current year?s discount.

Information Other than the Financial Statements and Auditor?sReport Thereon

• The Company?s Board of Directors is responsible for theother information. The other information comprises the Management Discussion &Analysis Board?s Report and Report on Corporate Governance including 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 conclusionthereon.

• 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 we conclude that thereis a material misstatement of this other information we are required to report that fact.We have nothing to report in this regard.

Management?s Responsibility for the Standalone FinancialStatements

The Company?s Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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

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

Auditor?s Responsibility for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgement and maintain professional scepticism 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)? 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence 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.

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 resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in thestandalone 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 auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so 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 wereport:

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) I n our opinion proper books of account as required by law havebeen kept 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 books of account.

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

e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.

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

g) With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of Section 197(16) of the Actas amended in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of Section 197 of the Act.

h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations 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.

iv. a) The Management has represented that to the best of it?sknowledge and belief other than as disclosed in the note 6 to the standalone financialstatements no funds have been advanced or loaned or invested (either from borrowed fundsor share premium or any other sources or kind of funds) by the Company to or in any otherperson(s) or entity(ies) including foreign entities ("Intermediaries") withthe understanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

b) The Management has represented that to the best of it?sknowledge and belief as disclosed in the note 51(iv) to the standalone financialstatements no funds have been received by the Company from any person(s) or entity(ies)including foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries.

c) Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)as provided under (a) and (b) above contain any material misstatement.

v. The final dividend proposed in the previous year declared and paidby the Company during the year is in accordance with Section 123 of the Act asapplicable.

As stated in Note 39 to the standalone financial statements the Boardof Directors of the Company has proposed final dividend for the year which is subject tothe approval of the members at the ensuing Annual General Meeting. The dividend proposedis in accordance with section 123 of the Act as applicable.

2. As required by the Companies (Auditor?s Report) Order 2020("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)
Ganesh Balakrishnan
(Partner)
(Membership No. 201193)
Place: Hyderabad (UDIN: 22201193AIUBQK2310)
Date: May 11 2022

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 Sagar Cements Limited ("the Company") as of March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management?s Responsibility for Internal Financial Controls

The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company?s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor?s Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial 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 ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company?s internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company?s assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 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)
Ganesh Balakrishnan
(Partner)
(Membership No. 201193)
Place: Hyderabad (UDIN: 22201193AIUBQK2310)
Date: May 11 2022

Annexure "B" to the Independent Auditor?s Report

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements? section of our report of even date)

In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that.

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment Capital work-in-progress and relevant details of right-of-use of assets.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(b) The Company has a programme of verification of property plant andequipment Capital work-in-progress and right- of-use of assets so to cover all the itemsonce every three years which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. Pursuant to the programme certain propertyplant and equipment were due for verification during the year and were physically verifiedby the Management during the year. According to the information and explanations given tous no material discrepancies were noticed on such verification.

(c) Based on the examination of the registered sale deed/ transfer deedprovided to us we report that the title deeds of all the immovable properties (otherthan properties where the Company is the lessee and the lease agreements are duly executedin favour of the Company) disclosed in the financial statements included in propertyplant and equipment and capital work-in-progress are held in the name of the Company as atthe balance sheet date. Immovable properties of land whose title deeds have been pledgedas security for loans guarantees etc. are held in the name of the Company based on theconfirmations directly received by us from lenders.

(d) The Company has not revalued any of its property plant andequipment (including right-of-use assets) and intangible assets during the year.

(e) No proceedings have been initiated during the year or are pendingagainst the Company as at March 31 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The inventories (except for goods-in-transit which have beenreceived subsequent to the year-end) were physically verified during the year by theManagement at reasonable intervals. In our opinion and based on information andexplanations given to us the coverage and procedure of such verification by theManagement is appropriate having regard to the size of the Company and the nature of itsoperations. No discrepancies of 10% or more in the aggregate for each class of inventorieswere noticed on such physical verification of inventories procedures performed asapplicable when compared with the books of account.

(b) According to the information and explanations given to us theCompany has been sanctioned working capital limits in excess of Rs. 5 crores inaggregate at points of time during the year from banks or financial institutions on thebasis of security of current assets. In our opinion and according to the information andexplanations given to us the quarterly returns or statements comprising stock statementsbook debt statements and statements on ageing analysis of the debtors/other receivablesfiled by the Company with such banks or financial institutions are in agreement with theunaudited books of account of the Company of the respective quarters.

(iii) The Company has made investments in provided guarantee orsecurity and granted unsecured loans to companies during the year in respect of which:

(a) The Company has made investment provided loans guarantee andsecurity during the year and details of which are given below:

(' Lakhs)

Particulars Investment Loans Guarantees Security
Aggregate amount granted / provided during the year:
- Subsidiaries 4524 54613 6000 900
Balance outstanding as at Balance Sheet date in respect of the above case:
- Subsidiaries 27749 51413 37000 8788

The Company has not provided any advances in the nature of loans to anyto other entity during the year

(b) The investments made guarantees provided security given and theterms and conditions of the grant of all the above-mentioned loans and guaranteesprovided during the year are in our opinion prima facie not prejudicial to theCompany?s interest.

(c) I n respect of loans granted provided by the Company the scheduleof repayment of principal and payment of interest has been stipulated and the repaymentsof principal amounts and receipts of interest are regular as per stipulation.

(d) According to information and explanations given to us and based onthe audit procedures performed in respect of loans granted by the Company there is nooverdue amount remaining outstanding as at the balance sheet date.

(e) None of the loans granted by the Company have fallen due during theyear.

(f) According to information and explanations given to us and based onthe audit procedures performed the Company has not granted any loans either repayable ondemand or without specifying any terms or period of repayment during the year. Hencereporting under clause (iii)(f) is not applicable.

(iv) The Company has complied with the provisions of Sections 185 and186 of the Companies Act 2013 in respect of loans granted investments made guaranteesand securities provided as applicable.

(v) The Company has not accepted any deposit or amounts which aredeemed to be deposits. Hence reporting under clause (v) of the Order is not applicable.

(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 thebooks of account maintained by the Company pursuant to the Companies (Cost Records andAudit) Rules 2014 as amended prescribed by the Central Government for maintenance ofcost records under Section 148(1) of the Companies Act 2013 and are of the opinion thatprima facie the prescribed cost records have been made and maintained by the Company. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including Goods and Service taxProvident Fund Employees? State Insurance Income-tax Sales Tax duty of Customduty of Excise Value Added Tax cess and other material statutory dues applicable to theCompany have been regularly deposited by it with the appropriate authorities in all casesduring the year.

There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees? State Insurance Income-tax Sales Tax dutyof Custom Value Added Tax cess and other material statutory dues in arrears as at March31 2022 for a period of more than six months from the date they became payable.

(b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on March 31 2022 on account of disputes are given below:

Name of Statute Nature of Dues Amount Unpaid (' Lakhs) Amount paid under protest (' Lakhs) Period(s) to which the amount Relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty 260 46 2011-12 to 2013-14 CESTAT
222 1601 2010-11 to 2017-18 Commissioner of Appeals
41 - 2014-15 to 2015-16 Assistant Commissioner
Sales Tax and VAT laws Sales Tax and VAT 15 5 1999-2000 Sales Tax Appellate Tribunal
87 - 2008-09 to 2010-11 High Court of Telangana and
157 52 2017-18 to 2018-19 Andhra Pradesh
Central Goods & Services Tax 2017 GST 7 - 2017-18 Superintendent of Central Tax
Customs Act 1962 Customs Duty 301 4 2011-12 to 2012-13 CESTAT
Income Tax Act 1961 Income Tax 28 - 2009-10 to 2010-11 Income Tax Appellate Tribunal
1739 160 2011-12 to 2012-13 Commissioner of Income Tax
1904 - 2015-16 to 2016-17 (Appeals)
Local Areas Act 2001 Entry Tax 7 4 2012-13 to 2015-16 Additional Divisional Commissioner Rural Division Hyderabad
87 28 2016-17 to 2017-18 High Court of Telangana and Andhra Pradesh

(viii) There were no transactions relating to previously unrecordedincome that were surrendered or disclosed as income in the tax assessments under theIncome Tax Act 1961 (43 of 1961) during the year.

(ix) (a) I n our opinion the Company has not defaulted in therepayment of loans or other borrowings or in the payment of interest thereon to any lenderduring the year.

(b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.

(c) To the best of our knowledge and belief in our opinion term loansavailed by the Company were applied by the Company during the year for the purposes forwhich the loans were obtained.

(d) On an overall examination of the financial statements of theCompany funds raised on short-term basis have prima facie not been used during the yearfor long-term purposes by the Company.

(e) On an overall examination of the financial statements of theCompany the Company has not taken funds from any entity or person on account of or tomeet the obligations of its subsidiaries.

(f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries.

(x) (a) The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) during the year and hencereporting under clause (x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (full or partly or optionally)and hence reporting under clause (x)(b) of Order is not applicable.

(xi) (a) To the best of our knowledge no fraud by the Company and nomaterial fraud on the Company has been noticed or reported during the year.

(b) To the best of our knowledge no report under sub-section (12) ofSection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand up to the date of this report.

(c) As represented to us by the Management there were no whistleblower complaints received by the Company during the year and upto the date of thisreport.

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

(xiii) I n our opinion the Company is in compliance with Section 177and 188 of the Companies Act where applicable for all transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements etc. as required by the applicable accounting standards.

(xiv) (a) I n our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports issued to theCompany during the year and covering the period up to December 2021 and the final internalaudit report where issued after the balance sheet date covering the period January 2022 toMarch 2022 for the period under audit.

(xv) I n our opinion during the year the Company has not entered intoany non-cash transactions with its directors or persons connected with its directors andhence provisions of Section 192 of the Companies Act 2013 are not applicable to theCompany.

(xvi) (a) The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

Hence reporting under clause (xvi)(a) (b) and (c) of the Order is notapplicable.

(b) The Group does not have any Core Investment Company as part of thegroup and accordingly reporting under clause (xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year.

(xix) On the basis of the financial ratios ageing and expected datesof realisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.

(xx) (a) The Company has fully spent the required amount

towards Corporate Social Responsibility (CSR) and there is no unspentCSR amount for the year requiring a transfer to a Fund specified in Schedule VII to theCompanies Act or special account in compliance with the provision of sub-section (6) ofsection 135 of the said Act. Accordingly reporting under clause (xx) (a) of the Order isnot applicable for the year.

(b) I n respect of ongoing projects the Company does not have anyunspent Corporate Social Responsibility (CSR) amount as at the end of the previousfinancial year and also at the end of the current financial year. Hence reporting underthis clause is not applicable for the year.

For Deloitte Haskins & Sells
Chartered Accountants
(Firm?s Registration No. 008072S)
Ganesh Balakrishnan
(Partner)
(Membership No. 201193)
Place: Hyderabad (UDIN: 22201193AIUBQK2310)
Date: May 11 2022

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