TO THE MEMBERS OF SHREE CEMENT LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Shree CementLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2022 the Statement of Profit and Loss the Statement of Changes in Equity andStatement of Cash Flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2022 and its profit its cash flows and the changes in equity for theyear ended on that date.
BASIS FOR OPINION
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditors Responsibilities for the Audit ofthe Financial 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 thefinancial statements under the provisions of the Companies Act 2013 and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
DESCRIPTION OF KEY AUDIT MATTERS:
|Key audit matters ||How our audit addressed the key audit matter |
|Revenue from sale of goods ||Our audit procedures included the following: |
|The Company recognizes revenues when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. In determining the sales price the Company considers the effects of rebates and discounts. || Considered the appropriateness of Companys revenue recognition policy and its compliance in terms of Ind AS 115 Revenue from contracts with customers; |
|The terms of sales arrangements including the timing of transfer of control the nature of discount and rebates arrangements and delivery specifications create complexity and judgment in determining sales revenues and accordingly it was determined to be a key audit matter in our audit of the standalone financial statements. || Assessed the design and tested the operating effectiveness of internal controls related to sales and related rebates and discounts; |
| || Performed sample tests of individual sales transaction and traced to sales invoices sales orders and other related documents. In respect of the samples selected tested that the revenue has been recognized as per the sales agreements; |
| || Assessed the relevant disclosures made in the Standalone financial statements. |
|Litigation Claims and Contingent Liabilities ||Our audit procedures included the following: |
|The Company is exposed to a variety of different laws regulations and interpretations thereof which encompasses taxation and legal matters. In the normal course of business provisions and contingent liabilities may arise from legal proceedings including regulatory and other Governmental proceedings constructive obligations as well as investigations by authorities and commercial claims. || We understood the processes evaluated the design and implementation of controls and tested the operating effectiveness of the Companys controls over the recording and re-assessment of uncertain legal positions claims and contingent liabilities; |
|Based on the nature of regulatory and legal cases management applies significant judgment when considering whether and how much to provide for the potential exposure of each matter. || We held discussions with the person responsible for legal and compliance to obtain an understanding of the factors considered in classification of the matter as probable possible and remote; |
|These estimates could change substantially over time as new facts emerge as each legal case or matters progresses. || We read the correspondence from Court authorities and considered legal opinion obtained by the Company from external law firms to challenge the basis used for provisions recognised or the disclosures made in the standalone financial statements; |
|Given the different views possible basis the interpretations complexity and the magnitude of the potential exposures and the judgment necessary to determine required disclosures this is a key audit matter. || For those matters where Company concluded that no provision should be recorded we also considered the adequacy and completeness of the Companys disclosures made in relation to contingent liabilities. |
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORS REPORTTHEREON
The Companys Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Boards Report including Annexures to Boards ReportBusiness Responsibility Report Corporate Governance and Shareholders Informationbut does not include the standalone financial statements and our auditors reportthereon. Our opinion on the standalonefinancial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith statements our ourauditofthestandalone responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone true and fair view of the financial performance cash the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financial thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompanys ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the Companysfinancial reporting process.
AUDITORS RESPONSIBILITY FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a knowledgeable user of the financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the financial statements.
We communicate with those charged with governance regarding among othermatters 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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditors report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would be expectedto outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of section 143 (11) of theAct we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.
(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2014.
(e) On the basis of written representations received from the directors as on 31stMarch 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 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 over financialreporting of the Company and the operating of such controls refer to our separate reportin Annexure B.
(g) With respect to the other matters to be included in the Auditors Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer Note 34 to the standalone financialstatements;
ii. The Company did not have any long-term contracts including any derivative contractsfor which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;
iv. (a) The Management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.
v. a) The final dividend paid by the Company during the year in respect of the samedeclared for the previous year is in accordance with section 123 of the Companies Act2013 to the extent it applies to payment of dividend;
b) The interim dividend declared and paid by the Company during the year and until thedate of this report is in compliance with Section 123 of the Act;
c) As stated in Note No. 51 to the financial statements the Board of Directors of theCompany have proposed final dividend for the year which is subject to the approval of themembers at the ensuing Annual General Meeting. The dividend declared is in accordance withsection 123 of the Act to the extent it applies to declaration of dividend.
| ||For Gupta & Dua |
| ||Chartered Accountants |
| ||Firms Registration No. 003849N |
| ||Mukesh Dua |
| ||Partner |
|Place: Kolkata ||Membership No.085323 |
|Date : 21st May 2022 ||UDIN: 22085323AJNCGD3623 |
Annexure A to the Independent Auditors Report
(Referred to in Paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date)
To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of auditwe state that:
1. a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and equipment.
(B) The Company has maintained proper records showing full particulars of intangibleassets.
b) According to the information and explanations given to us property plant andequipment have been physically verified by the management in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and nature ofits assets. No material discrepancies were noticed on such verification.
c) Based upon the audit procedure performed and according to the records of theCompany the title deeds of all the immovable properties (other than properties where theCompany is the lessee and the lease agreements are duly executed in favour of the lessee)are held in the name of the Company.
d) The Company has not revalued its Property plant and equipment (including Right ofuse Assets) and intangible assets during the year.
e) According to the information and explanations given to us no proceedings have beeninitiated or pending against the Company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 and rules made thereunder.
2. In respect of its inventories:
a) The management has physically verified the inventories. In our opinion thefrequency coverage and procedure of such verification is reasonable. The discrepanciesnoticed on verification between the physical stocks and the book records were not materialand such discrepancies have been properly dealt with in the books of accounts.
b) The Company has been sanctioned working capital limits in excess of Rs.5 crores inaggregate from banks on the basis of security of current assets during the year.According to the information and explanations given to us the quarterly returns orstatements filed by the Company with such banks are in agreement with the books ofaccounts of the Company.
3. The Company has made investments in and granted unsecured loans to companies duringthe year in respect of which;
a) The aggregate amount granted during the year and balance outstanding at the balancesheet date with respect to loans granted to subsidiaries is Rs.21.20 crore and Rs.20.75crore respectively;
b) The investment made and terms and conditions of grant of such loans are notprejudicial to the Companys interest;
c) In respect of loans granted by the Company the schedule of repayment of principaland payment of interest has been stipulated and the repayments of principal amount andreceipt of interest has generally been regular as per the stipulation;
d) In respect of loans granted by the Company there is no overdue amount remainingoutstanding as at the balance sheet date;
e) No loan granted by the Company which has fallen due during the year has beenrenewed or extended or fresh loans granted to settle the overdue of existing loans givento the same parties;
f) The Company has granted a loan to a subsidiary which is repayable on demand. Theaggregate amount of the loan granted is Rs.21.20 crore during the year. There are no otherloans granted to related parties as defined in sub-section (76) of section 2 of the Act.
4. The Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of loans granted and investments made as applicable.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public during the year in terms of theprovisions of section 73 to 76 of the Act or any other relevant provisions of theCompanies Act 2013 and the rules made thereunder.
6. We have broadly reviewed the accounts and records maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 read with Companies (Cost Recordsand Audit) Amendment Rules 2014 specified by the Central Government under section 148 ofthe Act and are of the opinion that the prima facie the prescribed Cost records havebeen made and maintained . We have however not made a detailed examination of therecords with a view to determine whether they are accurate or complete.
7. In respect of statutory dues:
a) In our opinion the Company has generally been regular in depositing undisputedstatutory dues including Goods and Services tax Provident Fund Employees StateInsurance Income Tax Sales Tax Service Tax duty of Custom duty of Excise Value AddedTax Cess and other material statutory dues applicable to it with the appropriateauthorities.
There were no undisputed amounts payable in respect of Goods and Service tax ProvidentFund Employees State Insurance Income Tax Sales Tax Service Tax duty of Customduty of Excise Value Added Tax Cess and other material statutory dues in arrears as at31st March 2022 for a period of more than six months from the date they becamepayable.
b) Details of statutory dues referred to in sub-clause
(a) above which have not been deposited as on 31st March 2022 on account ofdisputes are given below:
|Name of the statute ||Nature of the dues ||Amount under dispute not yet deposited ||Period to which the amount relates ||Forum where dispute is pending |
| || ||Rs.( in Crore) || || |
|(A) Excise and Service Tax || || || || |
|Central Excise Act 1944 ||Cenvat credit of inputs ||0.34 ||2005-06 to 2007-08 ||Commissioner (Appeals) of Central Excise and Service Tax |
| ||Cenvat credit of input and capital goods ||0.23 ||2013-14 ||Central Excise & Service Tax Appellate Tribunal (CESTAT) |
| ||Cenvat credit on capital goods ||0.03 ||2009-10 ||Rajasthan High Court Jaipur |
|Finance Act 1994 ||Credit of Service Tax on input services ||7.19 ||2011-12 & 2015-16 to 2017-18 ||Central Excise & Service Tax Appellate Tribunal (CESTAT) |
|Total (A) || ||7.79 || || |
|(B) Customs Duty || || || || |
|Customs Act 1962 ||Custom Duty Valuation ||15.75 ||2008-09 to 2009-10 and 2012-13 ||Central Excise & Service Tax Appellate Tribunal (CESTAT) |
|Total (B) || ||15.75 || || |
|(C) Sales Tax || || || || |
|Rajasthan VAT Act 2003 ||Input VAT Credit ||6.95 ||2014-15 to 2017-18 ||Tax Board Jaipur |
|Rajasthan VAT Act 2003 ||VAT demand on deemed sale ||459.06 ||2014-15 to 2019-20 ||Tax Board Jaipur |
|Bihar VAT Act 2005 ||Input VAT Credit ||0.12 ||2016-17 ||Joint Commissioner of Commercial Taxes (Appeals) Central Division Patna |
|Uttrakhand VAT Act 2005 ||Concessional tax diesel used for raw material transportation ||0.44 ||2017-18 to 2018-19 ||Joint Commissioner of Commercial Taxes (Appeals) Haridwar |
|Total (C) || ||466.57 || || |
|(D) Entry tax || || || || |
|UP Tax on Entry of Goods Act 2000 ||Interest on Entry tax ||2.78 ||2009-10 ||Joint Commissioner Ghaziabad |
|Chhattisgarh Tax on Entry of Goods Act 1976 ||Entry Tax ||13.49 ||2014-15 to 2016-17 ||Chhattisgarh High Court Bilaspur |
|Punjab Tax on Entry of Goods into Local Area Act 2000 ||Input Tax credit ||0.57 ||2010-11 to 2013-14 ||Tribunal Chandigarh |
|Total (D) || ||16.84 || || |
|(E) Competition Act || || || || |
|Competition Act 2002 ||Penalty for alleged violation of Competition Act ||357.76 18.44 ||2009-10 to 2010-11 2012-13 ||National Company Law Appellate Tribunal (NCLAT) |
|Total (E) || ||376.20 || || |
|(F) Others || || || || |
|Rajasthan Finance Act 2008 ||Environment & Health Cess on Minerals ||91.77 ||2007-08 to 2016-17 ||The Supreme Court |
|Rajasthan Land Tax Act 2006 ||Land Tax Rajasthan ||0.80 ||2006-07 to 2009-10 ||DIG Stamps & Registration Pali |
|Rajasthan Land Tax Act 2020 ||Land Tax Rajasthan ||4.03 ||2020-21 ||Rajasthan High Court |
|Employee State Insurance Act 1948 ||Employee State Insurance ||1.04 ||2013-14 to 2017-18 ||ESI Court Jaipur |
|Mines and Minerals (Development & Regulation) Act 1957 ||Differential Royalty on Limestone ||3.10 ||1989-90 1992-93 1993-94 and 2001-02 ||Rajasthan High Court |
|MMDR act read with Rajasthan Mineral Concession Rules read with RM (PIMTS) Rules 2007 ||Storage of Mineral awaiting registration ||0.30 ||2009-10 to 2010-11 ||Rajasthan Tax Board |
|Rajasthan Stamps Act 1998 ||Stamp Duty ||0.57 ||2003-04 to 2004-05 ||Rajasthan High Court |
|Total (F) || ||101.61 || || |
|Grand Total || ||984.76 || || |
|(A+B+C+D+E+F) || || || || |
8. There were no transactions relating to previously unrecorded income that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961).
9. a) Based on the information and explanations given to us we are of the opinion thatthe Company has not defaulted in repayment of loans or other borrowings or in the paymentof interest thereon to any lenders.
b) The Company is not declared a willful defaulter by any bank or financial institutionor other lender.
c) The term loan has been applied for the purpose for which they were obtained.
d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.
e) The Company has not taken any funds from any entity or person on account of or tomeet the obligation of its subsidiaries. The Company does not have associates or jointventures.
f) The Company has not raised loans during the year on the pledge of securities held inits subsidiaries. The Company does not have associates or joint ventures.
10. a) The Company has not raised moneys by way of initial public offer or furtherpublic (including debt instruments) during the year. Hence reporting under clause 3(x)(a)of the Order is not applicable.
b) The company has not made any preferential allotment of shares or fully or partiallyconvertible debentures during the year. Hence reporting under clause 3 (x) (b) of theOrder is not applicable.
11. a) No fraud by the Company and no material fraud on the Company has been noticed orreported during the year.
b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and up to the date of this report.
c) We have taken into consideration the whistle blower complaints received by theCompany during the year (and up to the date of this report) while determining the naturetiming and extent of our audit procedures.
12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.
13. In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsas required by the applicable accounting standards.
14. a) In our opinion the Company has an adequate internal audit system commensuratewith the size and nature of its business.
b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.
15. According to the information and explanations given to us and on an overallexamination of the offer financial statements of the Company we report that the Companyhas not entered into any non- cash transaction with directors or persons connected withhim therefore reporting under clause 3(xv) of the Order is not applicable.
16. a) The Company is not engaged in business of Non-Banking Financial Company orHousing Finance Company or Core Investment Company requiring registration under theReserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b) and (c) ofthe Order is not applicable.
b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.
17. The Company has not incurred any cash losses in the financial year covered by ouraudit and in the immediately preceding financial year.
18. There has been no resignation of the statutory auditors of the Company during theyear.
19. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.
20. a) There are no unspent amounts towards Corporate Social Responsibility (CSR) onother than ongoing projects requiring a transfer to a fund specified in Schedule VII tothe Companies Act in compliance with Section 135 of the said Act. Accordingly reportingunder clause 3(xx)(a) of the Order is not applicable for the year.
b) There are no unspent amounts towards CSR on ongoing projects requiring a transfer toa fund specified in Schedule VII to the Companies Act in compliance of Section 135 of theAct. Accordingly reporting under clause 3(xx)(b) of the Order is not applicable for theyear.
For Gupta & Dua
| ||For Gupta & Dua |
| ||Chartered Accountants |
| ||Firms Registration No. 003849N |
| ||Mukesh Dua |
| ||Partner |
|Place: Kolkata ||Membership No.085323 |
|Date : 21st May 2022 ||UDIN: 22085323AJNCGD3623 |
Annexure B to the Independent Auditors Report
(Referred to in Paragraph 2(f) under the heading "Report on other legal andregulatory requirements" of our report of even date)
Report on the Internal Financial Controls under clause (i) of sub section 3 of section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ShreeCement Limited ("the Company") as of 31st March 2022 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion 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 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For Gupta & Dua |
| ||Chartered Accountants |
| ||Firms Registration No. 003849N |
| ||Mukesh Dua |
| ||Partner |
|Place: Kolkata ||Membership No. 085323 |
|Date : 21st May 2022 ||UDIN: 22085323AJNCGD3623 |