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Steel Exchange India Ltd.

BSE: 534748 Sector: Others
NSE: STEELXIND ISIN Code: INE503B01013
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OPEN 68.65
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VOLUME 26295
52-Week high 75.10
52-Week low 24.00
P/E 7.43
Mkt Cap.(Rs cr) 647
Buy Price 0.00
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Sell Price 0.00
Sell Qty 0.00
OPEN 68.65
CLOSE 67.85
VOLUME 26295
52-Week high 75.10
52-Week low 24.00
P/E 7.43
Mkt Cap.(Rs cr) 647
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Steel Exchange India Ltd. (STEELXIND) - Auditors Report

Company auditors report

To

The Members of

STEEL EXCHANGE INDIA LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statementsofM/s.Steel Exchange India Limited ("the Company") which comprise the BalanceSheet as at March 312020 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

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 except the effect of matter referred to in Basis for qualified opinion give atrue and fair view in conformity with the Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 312020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Qualified Opinion

We draw your attention to note 3.26 to the Ind AS financial statementswith regard to non-recognition of interest expenses amounting to Rs. 203.48crores on theborrowings of the company for the year ended 31st March 2020 which is not in accordancewith the requirements of Ind AS 23. Borrowing Cost read with Ind AS 109 FinancialInstruments.

Had the aforesaid interest expenses been recognized finance costs forthe year ended 31stMarch 2020 would have been Rs 206.95 crores instead of reported amountof Rs 3.47 crores. Total expenses for the year ended 31st March 2020 would have been Rs944.25crores instead of Rs 740.76crores. Loss before exceptional items and tax for theyear ended 31st March 2020 would have been Rs 152.82crores instead of the reported amountof profit Rs 50.66crores Loss before Tax for the year ended 31st March 2020 would havebeen Rs 164.31 crores instead of the reported amount of profit Rs 39.17crores Net Lossafter Tax for the year ended 31st March 2020 would have been Rs 139.18crores instead ofreported amount of profit Rs 64.29 crores. Total comprehensive loss for the year ended31st March 2020 would have been Rs 139.32 crores instead of reported amount of profit Rs64.16 crores and loss per share for the year ended 31st March 2020 would have been Rs18.33 instead reported amount of profit Rs 8.44 other equity and other financialliabilities as at 31stMarch 2020 would have been Rs (-)123.96crores and Rs 1114.53croresinsteadof reported amount of Rs 79.52crores and Rs 911.05 crores respectively.

The above reported interest has been calculated using simple interestrate.

Key audit matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

S.No Key Audit matter
1. Accuracy of recognitionmeasurement presentation and disclosures of revenues and other related balances in view of adoption of INDAS115 "Revenue from contracts with customers"(newrevenueaccountingstandard)
The application of the new revenue accounting standard involves certain key judgments relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
Refer to Notes and 3.20 to the Standalone Financial Statements
Auditor's Response
Principal Audit Procedure
We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows :
• Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
• Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
• Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.
• Selected a sample of continuing and new contracts and performed the following procedures :
- Read analyzed and identified the distinct performance obligations in thesecontracts.
- Compared these performance obligations with that identified and recorded by the Company.
- Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
- Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specified in the underlying contracts.
- Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
We reviewed the collation of information and the logic of the report generated from the budgeting system used to prepare the disclosure relating to the periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
2 Evaluation of uncertain tax positions
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes.
Refer note no 3.32 to the Standalone Financial Statements
Auditor's Response
PRINCIPAL AUDIT PROCEDURE
Obtained details of completed tax assessments and demands for the year ended March 31 2020 from management .Discussed with the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Additionally we considered the effect of new information in respect of uncertain tax positions as at March 312020 to evaluate whether any change was required to management's position on these uncertainties.
3 Recoverability of Indirect tax receivables
As at March 31 2020 other non current assets include Indirect tax balance receivable amounting to Rs 118879229 out of which amount of Rs 79693400 are pending adjudication.
Refer Note 3.2 to the Standalone Financial Statements.
Auditor's Response
PRINCIPAL AUDIT PROCEDURE
We have verified the relavent documents and records the sustainability and likelihood of recoverability upon final resolution.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the standalone financial statements and our auditor's report thereon.

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 during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act2013 with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India including The Indian Accounting Standard specified under sec.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 financialstatements that give a true and fair view and are free from material misstatement whetherdue 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.

Auditor's Responsibilities 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 professionaljudgment and maintain professional skepticism throughout the audit. We also :

o 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.

o Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

o Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related

disclosures made by management.

o Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

o Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures

and whether the standalone financial statements represent theunderlying transactions and events in a manner that achieves 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 financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the 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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that :

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

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d. In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of the written representations received from thedirectors as on March 312020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312020 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 unmodified opinionon the adequacy and operating effectiveness of the Company's internal financial controlsover financial reporting.

g. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended :Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act.

h. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us :

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements.(Refer Note: 3.32 b&c)

ii. The Company didnot have any long-term contracts includingderivative contracts for which there arefor material foreseeable losses.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms

of Section 143(11) of the Act we give in "Annexure B" astatement on the matters specified in paragraphs 3 and 4 of

the Order.

For BHAVANI &Co.

Chartered Accountants Firm Reg. No:012139S

Place :Visakhapatnam
Date : 29-07-2020 (CA S KAVITHA PADMINI)
PARTNER
M.No : 229966
UDIN : 20229966AAAACF9482

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Steel Exchange India Limited of evendate)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s. SteelExchange India limited ("the Company") as of March 312020 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. 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 over financial reporting was established and maintained and if suchcontrols 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 auditor's 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 internal financial control system overfinancial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

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.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For BHAVANI &Co. Chartered Accountants Firm Reg. No:012139S

Place :Visakhapatnam
Date : 29-07-2020 (CA S KAVITHA PADMINI)
PARTNER
M.No : 229966
UDIN : 20229966AAAACF9482

"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to

the financial statements of the Company for the year ended March 312020:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation

of fixed assets.

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the bookrecords and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

2. The management has conducted the physical verification of inventory at reasonableintervals. The discrepancies noticed on physical verification of the inventory as comparedto books records which has been properly dealt with in the books of account were notmaterial.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained underSection 189 of the Act. Accordingly paragraph 3 (iii) (a) to (C) of the Order are notapplicable.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013In respect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6. As informed to us the maintenance of Cost Records has been specified by the CentralGovernment under subsection (1) of Section 148 of the Act in respect of the activitiescarried on by the company. We have broadly reviewed the Cost Records maintained by theCompany pursuant to the Company's (Cost Records and Audit) Rules 2014 prescribed by theCentral Government and are of the opinion that prima facie the prescribed cost recordshave been maintained.

7. (a) According to the information and explanations given to us and the records of thecompany examined by us the

company is regular in depositing undisputed statutory dues including Provident fundEmployee State Insurance Incometax salestax customsdutygoods and service tax and anyother statutory dues as applicable with appropriate authorities.There were arrears ofoutstanding statutory dues as on last day of thefinancial year concerned for a period ofmore than six months from the date on which they become payable.

PARTICULARS TDS
AUGUST 33264

(b) According to the information and explanation given to us the following dues of theservice tax customs duty excise duty value added tax GSTCentral sales tax Cess andother statutory dues which have not been deposited with appropriate authorities on accountof any dispute.

Name of the Statute Nature of Dues Period to which the amount relates Amount in Deposits/ Paid in ('.) Forum where the dispute is pending with
CST Act Sales Tax 2004-05 2827172/- 353397/- CTOGajuwaka Visakhapatnam
CST Act Sales Tax 2005-06 4785829/- 2392914/- STAT Visakhapatnam
AP VAT Act 2011-12 1157334/- 289334/-
AP VAT Sales Tax 2019-20 23217664 4253000/- STAT Visakhapatnam
AP VAT Act Sales Tax 2013-14 1185189/- 824678/- STAT Visakhapatnam
AP VAT Act Sales Tax 2012-13 8506000/- 1063250/- ADC APPEAL Vijayawada
AP VAT Act Sales Tax 2013-14 118549/- 59259/- STAT Visakhapatnam
AP VAT Act Sales Tax 2014-15 27015203/- 3709169/- Appellate Deputy Commissioner Visakhapatnam
CST Act Sales Tax 2013-14 816219/- NIL Appellate Deputy Commissioner (CT) Vijayawada
AP VAT Act Sales tax 2014-15 2701520/- 337690/- Appellate Deputy Commissioner (CT) Vijayawada
AP VAT ACT Sales tax 2012-13 1394858/- 348715/- Hon'ble High Court of Telangana & AP
AP VAT ACT Sales tax 2015-16 3141694/- 785424/- Hon'ble High Court of Telangana & AP
AP VAT ACT Sales tax 2016-17 8270573/- 2067643/- Hon'ble High Court of Telangana & AP
AP VAT ACT Sales tax 2017-18 1319062/- 164883/- Appellate Deputy Commissioner (CT) Vijayawada
AP VAT ACT Sales tax 2014-15 57375/- 7172/- STA Visakhapatnam
AP VAT ACT Sales tax 2015-16 263227/- 32904/- Appellate Deputy Commissioner (CT) Vijayawada
AP VAT ACT Sales tax 2016-17 517834/- 64730/- Appellate Deputy Commissioner (CT) Vijayawada
AP VAT ACT Sales tax 2015-16 17643584/- 201824/- Appellate Deputy Commissioner (CT) Vijayawada
AP VAT ACT Sales tax 2015-16 4410896/- NIL Appellate Deputy Commissioner (CT) Vijayawada
Customs Act Customs Duty 2003-04 5435648/- NIL Hon'ble High Court of Telangana & AP
Customs Act Customs Duty 2012-13 6738452/- NIL CESTAT Bangalore
Customs Act Customs Duty 2012-13 3766062/- NIL Commissioner (Appeals) Visakhapatnam.
Central Excise Act Excise Duty 2007- 08 2008- 09 8630228/- 191708/- 1000000/- NIL CESTAT Bangalore
Central Excise Act Excise Duty 2009-10 2010-11 & 2011-1; 6118776/- 5000000/- Commissioner of Central Excise Visakhapatnam
2009-10 3893/- NIL
Central Excise Act Excise Duty 2010-11 1435189/- NIL Hon'ble High Court of Telangana & AP
Name of the Statute Nature of Dues Period to which the amount relates Amount in Deposits/ Paid in ('.) Forum where the dispute is pending with
Central Excise Act Excise Duty 2014-15 63286487/- 34613208/- Commissioner of Central Excise Visakhapatnam.
Customs Act Customs duty 2012-13 21806647/- NIL Hon'ble Customs Central Excise & Service Tax- Appellate Tribunal Telangana
Excise Act Excise duty 2012-13 773767/- NIL Assistant Commissioner of Customs & Central Excise Visakhapatnam
Excise Act Excise duty 2014-15 to 2017-1 8730013/- NIL Commissioner of Central Tax & Customs (Appeals) Guntur
Excise Act Excise duty 2015-16 69069600/- 52720200/- Principle Commissioner of Central Excise Visakhapatnam
Service Tax Act Service Tax 2013-14 to 2016-1 179812034/- NIL Commissioner of Central taxVisakhapatnam
Service Tax Act Service tax 2016-17 12263893/- Nil Additional Commissioner Of central TaxVisakhapatnam
Service Tax Act Service tax 2016-17 4056569/- Nil Additional Commissioner Of central TaxVisakhapatnam
GST Act GST 2017-18 6921076 NIL Deputy Commissioner of central Tax Rajamahendravaram
GST Act GST 2017-18 1601608 NIL Deputy Commissioner of central Tax Visakhapatnam

8. According to the records of the company examined by usthe information andexplanations given to us except for loans and borrowings from banks and financialinstitutions aggregating Rs 591.94Crores for the period set out below the company has notdefaulted in repayment of loans or borrowings to any financial institutions or banks as onat the balance sheet date.

S.No Name of the Institution/Bank Nature of dues Amount of defaults
<12 months >12 Months
1 State Bank of India Principal & Interest 104.76 274.96
2 Syndicate bank Principal & Interest - 26.90
3 Punjab National bank Principal & Interest 9.66 34.19
4 Bank of India Principal & Interest

-

19.39
5 Karur Vysya Bank Principal & Interest 10.59 23.96
6 Lakshmi Vilas Bank Principal & Interest 10.00 9.66
7 IDBI Bank Principal & Interest - 19.92
8 Dhanalaxmi Bank Principal & Interest

-

12.06
9 Andhra bank Principal & Interest

-

14.64
10 Canara bank Principal & Interest

-

21.25
Total 135.01 456.93

9. According to the information and explanations given by the management the companyhas not raised moneys by way of initial public offer or further public offer includingdebt instruments and term Loans. Accordingly paragraph 3 (ix) of the Order are notapplicable.

10. According to the information and explanations given by the management to us nomaterial fraud by the Company or on the company by its officers or employees has beennoticed or reported during the course of audit.

11. According to the information and explanations to us and based on our examination ofthe records of the company the company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12. In our opinion and according to information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable.

13. According to the information and explanations to us and based on our examination ofthe records of the company transactions with the related parties are in compliance withsection 177 and 188 of Companies Act2013 where applicable and the details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.

14. According to the information and explanations to us and based on our examination ofthe records of the company the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3 (xiv) of the Order are not applicable.

15. According to the information and explanations to us and based on our examination ofthe records of the company the company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly paragraph 3 (xv) of the Orderare not applicable.

16. In our opinion the company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and accordingly paragraph 3 (xvi) of the Order arenot applicable.

For BHAVANI &Co.

Chartered Accountants Firm Reg. No:012139S

Place :Visakhapatnam (CA S KAVITHA PADMINI)
Date : 29-07-2020 PARTNER
M.No : 229966
UDIN : 20229966AAAACF9482

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