To the Members of Sterlite Technologies Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements ofSterlite Technologies Limited ("the Company") which comprise the Balance Sheetas at March 31 2022 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according tothe explanations 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 accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and total comprehensive income (comprising of profit and other comprehensive income)changes in equity and its cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. 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 thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key audit matters
4. Key audit matters are those matters that in our professionaljudgment were 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.
|Key audit matter ||How our audit addressed the key audit matter |
|Revenue Recognition (Refer note 2.1 (b) 3 and 25 to the Standalone Financial Statements) ||We performed the following procedures: Understood and evaluated the design and tested the operating effectiveness of controls relating to revenue recognition. |
|The Company recognises revenue in accordance with Ind AS 115 "Revenue from Contracts with Customers". This involves application of significant judgements by Management with respect to: ||In respect of a sample of large and complex contracts and certain other contracts our procedures included among other things: |
| Combination of contracts entered into with the same customer; || Reading of selected contracts to identify significant terms of the contracts; |
| Identification of distinct performance obligations; || Assessing appropriateness of management?s significant judgements in accounting for identified contracts such as identification of performance obligation and allocation of consideration to identified performance obligation; |
| Total consideration when the contract involves variable consideration; || Evaluation of the contract terms with respect to assessment of the date of transfer of control; |
| Allocation of consideration to identified performance obligations; and || Testing of timing of recognition of revenue (including procedures related to cut off) in line with the terms of contracts; |
| Recognition of revenue over a period of time or at a point in time based on timing when control is transferred to customer. || Testing the appropriateness of key assumptions used by Management including the appropriateness and reasonability of Management?s conclusion regarding the expected delays in estimated completion of the performance obligations and possible impact on key estimates. Reading of the related contract terms and communications with the customers to assess the likelihood of availability of contractual remedies. |
|Further for contracts where revenue is recognised over a period of time the Company makes estimates which impact the revenue recognition. Such estimates include but are not limited to: || Testing of journal entries for unusual/ irregular revenue transactions if any; and |
| costs to complete || Evaluating adequacy of presentation and disclosures in the financial statements. |
| contract risks ||Based on the above procedures we did not note any significant exceptions in the estimates and judgements applied by the Management in revenue recognition including those relating to presentation and disclosures as required by Ind AS 115. |
| price variation claims and || |
| liquidated damages || |
|Further in determining the above estimates for ongoing contracts Management has also evaluated the estimates especially those resulting from expected delays in the completion of the performance obligations and available contractual remedies. || |
|We focused on this area because a significant portion of the revenue generated requires management to exercise judgement and therefore could be subject to material misstatement due to fraud or error. || |
5. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Director'sreport but does not include the standalone financial statements and our auditors' reportthereon.
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 financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance forthe standalone financial statements
6. 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 changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
7. 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 arealso responsible for overseeing the Company's financial reporting process.
Auditors? responsibilities for the audit of the financialstatements
8. 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 auditors' 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.
9. As part of an audit in accordance with SAs we exercise professionaljudgment 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 material misstatement resulting from fraudis higher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern.
If we conclude that a material uncertainty exists we are required todraw attention in our auditors' report to the related disclosures in the standalonefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditors'report. However future events or conditions may cause the Company to cease to continue asa 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.
10. 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.
11. We also provide those charged with governance with a statement thatwe have 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.
12. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act we give in the Annexure B a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
14. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law 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 (includingother comprehensive income) the Statement of Changes in Equity and the Statement of CashFlows dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards 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 controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure A".
(g) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (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 21 and 37 to thestandalone financial statements.
ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts - Refer Note 19 to the standalone financialstatements;
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the year.
iv. (a) The management has represented that to the best of itsknowledge and belief other than as disclosed in the notes to the accounts no funds havebeen advanced or loaned or invested either from borrowed funds or share premium or anyother sources or kind of funds by the Company to or in any other person(s) or entity(ies)including foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries (Refer Note 18to the standalone financial statements);
(b) The management has represented that to the best of its knowledgeand belief other than as disclosed in the notes to the accounts no funds have beenreceived by the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries (Refer Note 18 to the standalonefinancial statements); and
(c) Based on such audit procedures that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.
v. The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.
15. 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 Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Membership Number: 108391
Date: April 28 2022
Annexure A to Independent Auditors? Report
Referred to in paragraph 14 (f) of the Independent Auditors' Report ofeven date to the members of Sterlite Technologies Limited on the standalone financialstatements for the year ended March 31 2022
Report on the Internal Financial Controls with reference to StandaloneFinancial Statements under clause (i) of sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference tostandalone financial statements of Sterlite Technologies Limited ("the Company")as of March 31 2022 in conjunction with our audit of the standalone financial statementsof the Company for the year ended on that date.
Management?s Responsibility for Internal Financial Controls
2. 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 ("the Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to standalone financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note and the Standards onAuditing deemed to be prescribed under Section 143(10) of the Act to the extent applicableto an audit of internal financial controls both applicable to an audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tostandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to standalone financialstatements assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.
5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to standalone financial statements.
Meaning of Internal Financial Controls with reference to standalonefinancial statements
6. A company's internal financial controls with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to standalone financial statementsincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 standalone financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls with reference tostandalone financial statements
7. Because of the inherent limitations of internal financial controlswith reference to standalone financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls with reference to standalone financial statements to future periods aresubject to the risk that the internal financial control controls with reference tostandalone financial statements may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.
8. In our opinion the Company has in all material
respects an adequate internal financial controls system with referenceto standalone financial statements and such internal financial controls with reference tostandalone financial statements were operating effectively as at March 31 2022 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by ICAI.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Membership Number: 108391
Date: April 28 2022
Annexure B to Independent Auditors? Report
Referred to in paragraph 13 of the Independent Auditors' Report of evendate to the members of Sterlite Technologies Limited on the standalone financialstatements as of and for the year ended March 31 2022
i. (a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.
(B) The Company is maintaining proper records showing full particularsof Intangible Assets.
(b) The Property Plant and Equipment are physically verified by theManagement according to a phased programme designed to cover all the items over a periodof three years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme a portion of theProperty Plant and Equipment has been physically verified by the Management during theyear and no material discrepancies have been noticed on such verification. Further thephysical verification of cables is impractical due the manner in which they have beeninstalled/laid.
(c) The title deeds of all the immovable properties (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) as disclosed in Note 4 to the financial statements are held in thename of the Company.
(d) The Company has chosen cost model for its Property Plant andEquipment (including Right of Use assets) and intangible assets. Consequently thequestion of our commenting on whether the revaluation is based on the valuation by aRegistered Valuer or specifying the amount of change if the change is 10% or more in theaggregate of the net carrying value of each class of Property Plant and Equipment(including Right of Use assets) or intangible assets does not arise.
(e) Based on the information and explanations furnished to us noproceedings have been initiated on or are pending against the Company for holding benamiproperty under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and Rules madethereunder and therefore the question of our commenting on whether the Company hasappropriately disclosed the details in its financial statements does not arise. (Alsorefer Note 4 to the financial statements)
ii. (a) The physical verification of inventory excluding stocks withthird parties has been conducted at reasonable intervals by the Management during the yearand in our opinion the coverage and procedure of such verification by Management isappropriate. In respect of inventory lying with third parties these have substantiallybeen confirmed by them. The discrepancies noticed on physical verification of inventory ascompared to book records were not 10% or more in aggregate for each class of inventory.
(b) During the year the Company has been sanctioned working capitallimits in excess of ' 5 crores in aggregate from banks and financial institutions on thebasis of security of current assets. The Company has filed quarterly returns or statementswith such banks and financial institutions of which the following are not in agreementwith the books of account as set out below: (Also refer Note 51 to the financialstatements)
|Name of the Bank/ Financial Institution ||Aggregate working capital limits sanctioned ||Nature of Current Asset offered as Security ||Quarter ended ||Amount as per books of account (unaudited) ||Amount disclosed as per quarterly statement ||Difference ||Reasons for material differences |
|ICICI Bank Ltd. ||537 Crores || ||30 June 2021 || || || || |
|State Bank of India ||505 Crores || ||Inventories ||448.50 ||351.22 ||97.28 ||The difference is on account of period end closing entries. |
|Yes Bank Limited ||150 Crores || ||Trade receivables and contract assets ||3204.41 ||3079.32 ||125.09 ||The difference is on account of period end regroupings of ' 63.09 crores and non consideration of related party receivable of ' 62.00 crores |
|Axis Bank Limited ||450 Crores || ||30 September 2021 || || || || |
|IDFC First Bank Limited ||275 Crores || || || || || || |
|Indusind Bank Limited ||335 Crores || ||Inventories ||373.59 ||340.76 ||32.83 ||The difference is on account of period end closing entries. |
|Bank of Baroda ||247 Crores ||Inventories Trade receivables and contract assets ||Trade receivables and contract assets ||2991.15 ||3124.31 ||(133.16) ||The difference is on account of period end closing entries of ' 195.16 crores and non consideration of related party receivable of ' (62.00) crores |
|RBL Bank Limited ||200 Crores || || || || || || |
|The Federal Bank Limited ||200 Crores || ||31 December 2021 || || || || |
|IDBI Bank Limited ||220 Crores || || || || || || |
| || || ||Inventories ||457.07 ||348.80 ||108.27 ||The difference is on account of period end closing entries. |
|Deutsche Bank AG ||275 Crores || ||Trade receivables and contract assets ||2928.65 ||3161.95 ||(233.30) ||The difference is on account of period end closing entries. |
|Union Bank of India ||110 Crores || || || || || || |
|HDFC Bank Limited ||300 Crores || || || || || || |
|Export-Import Bank of India ||80 Crores || || || || || || |
|Citi Bank ||135 Crores || || || || || || |
|Shinhan Bank ||55 Crores || || || || || || |
|CTBC Bank Co. Ltd. ||88 Crores || || || || || || |
|Qatar National Bank (Q.P.S.C.) ||60 Crores || || || || || || |
|Axis Finance Ltd. ||75 Crores || || || || || || |
iii. (a) The Company has made investments in three companies grantedunsecured loans to nine companies stood guarantee to one company and provided security toone company. The aggregate amount during the year and balance outstanding at the balancesheet date with respect to such loans or advances and guarantees or security tosubsidiaries joint ventures and associates and to parties other than subsidiaries jointventures and associates are as per the table given below:
| ||Securities ||Guarantees ||Loans |
|Aggregate amount granted/ provided during the year || || || |
|- Subsidiaries ||29.43 crores ||106.24 Crores ||352.75 Crores |
|- Joint Venture ||Nil ||Nil ||Nil |
|- Associates ||Nil ||Nil ||Nil |
|- Others ||Nil ||Nil ||0.48 Crores |
|Balance outstanding as at balance sheet date in respect of the above case || || || |
|- Subsidiaries ||29.43 crores ||106.24 Crores ||352.75 Crores |
|- Joint Venture ||Nil ||Nil ||Nil |
|- Associates ||Nil ||Nil ||Nil |
|- Others ||Nil ||Nil ||0.26 Crores |
(b) In respect of the aforesaid investments guarantees securitiesloans the terms and conditions under which such loans were granted investments were madeguarantees provided security provided are not prejudicial to the Company's interest.
(c) In respect of the aforesaid loans the schedule of repayment ofprincipal and payment of interest has been stipulated as repayable on demand and theparties are repaying the principal amounts as stipulated and are also regular in paymentof interest as applicable.
(d) In respect of the aforesaid loans there is no amount which isoverdue for more than ninety days.
(e) There were no loans or advances in nature of loans which weregranted to same parties and which fell due during the year and were renewed or extended.Further no fresh loans were granted to any party to settle the overdue loans or advancesin nature of loan.
(f) Following loans were granted during the year to related parties u/s2(76) which are repayable on demand:
| ||All Parties ||Promoters ||Related Parties |
|Aggregate of loans/ advances in nature of loan || || || |
|- Repayable on demand ||352.75 Crores ||Nil ||352.75 Crores |
|- Agreement does not specify any terms or period of repayment ||Nil ||Nil ||Nil |
|Percentage of loans/ advances in nature of loan to the total loans ||82.71% ||Nil ||82.71% |
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of the loans and investments made and guarantees andsecurity provided by it.
v. The Company has not accepted any deposits or amounts which aredeemed to be deposits from the public within the meaning of Sections 73 74 75 and 76 ofthe Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India theCompany is required to maintain cost records as specified under Section 148(1) of the Actin respect of its products. We have broadly reviewed the same and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Wehave not however made a detailed examination of the records with a view to determinewhether they are accurate or complete.
vii. a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is generallyregular in depositing undisputed statutory dues in respect of employees' state insuranceand provident fund though there has been a slight delay in a few cases and is regular indepositing undisputed statutory dues including income tax goods and services tax dutyof customs cess and other material statutory dues as applicable with the appropriateauthorities.
b) According to the information and explanations given to us and therecords of the Company examined by us there are no statutory dues of goods and servicestax provident fund employees' state insurance sales tax and duty of excise which havenot been deposited on account of any dispute. The particulars of dues of income tax andduty of customs as at March 31 2022 which have not been deposited on account of adispute are as follows:
|Name of the statute ||Nature of dues ||Amount (Rs. in crores) ||Period to which the amount relates ||Forum where the dispute is pending |
|Customs Act 1962 ||Customs Duty ||67.82 ||2001-03 ||CESTAT Mumbai |
| ||Customs Duty ||0.68 ||2011-16 ||CESTAT Ahemadabad |
| ||Customs Duty ||1.53 ||2013-14 ||CESTAT Mumbai |
| ||Customs Duty ||1.54 ||2014-19 ||Commissioner (Appeals) Mumbai |
| ||Customs Duty ||15.00 ||2002-03 ||Supreme Court of India |
|Income Tax Act 1961 ||Income Tax ||17.46 ||AY 2018-19 ||Commissioner (Appeals) |
| ||Income Tax ||3.88 ||AY 2013-14 AY 2015-16 ||Commissioner (Appeals) - Mumbai |
| ||Income Tax ||1.20 ||AY 2002-03 ||Mumbai High Court |
| ||Income Tax ||0.07 ||AY 2001-02 ||Mumbai High Court |
| ||Income Tax ||0.43 ||AY 2014-15 AY 2016-17 ||Commissioner (Appeals) - Pune |
| ||Income Tax ||0.33 ||AY 2011-12 AY 2013-14 ||Commissioner (Appeals) - Ahemadabad |
| ||Income Tax ||0.53 ||AY 2012-13 ||Gujrat High Court |
| ||Income Tax ||0.12 ||AY 2009-10 AY 2010-11 ||Income Tax Appellate Tribunal - Ahmedabad |
| ||Income Tax ||55.67 ||AY 2013-14 AY 2014-15 AY 2017-18 ||Additional Commissioner of Income Tax Delhi |
viii. According to the information and explanations given to us and therecords of the Company examined by us there are no transactions in the books of accountthat has been surrendered or disclosed as income during the year in the tax assessmentsunder the Income Tax Act 1961 that has not been recorded in the books of account.
ix. a) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest to any lender during the year. Asstated in Note 39 to the standalone financial statements the Company continues to disputeamounts aggregating ' 18.87 crores claimed by a bank in the earlier years towards importconsignments under letter of credit not accepted by the Company owing to discrepancies indocuments. Since the matter is in dispute we are unable to determine whether there is adefault in repayment of dues to the said bank.
b) According to the information and explanations given to us and on thebasis of our audit procedures we report that the Company has not been declared WilfulDefaulter by any bank or financial institution or government or any government authority(Also refer Note 18 to the financial statements).
c) In our opinion and according to the information and explanationsgiven to us the term loans have been applied for the purposes for which they wereobtained (Also refer Note 18 to the financial statements).
d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.
e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries associates or joint ventures.
f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries joint ventures or associatecompanies.
x. a) The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglythe reporting under Clause 3(x)(a) of the Order are not applicable to the Company.
b) The Company has not made any preferential allotment or privateplacement of shares or fully or partially or optionally convertible debentures during theyear. Accordingly the reporting under Clause 3(x)(b) of the Order are not applicable tothe Company.
xi. a) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company noticed orreported during the year nor have we been informed of any such case by the Management.
b) During the course of our examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us a report underSection 143(12) of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 was not required to be filed with the Central Government.Accordingly the reporting under clause 3(xi)(b) of the Order is not applicable to theCompany.
c) During the course of our examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us the Company has receivedwhistle-blower complaints during the year which have been considered by us for anybearing on our audit and reporting.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the reporting under Clause 3(xii) of the Order is not applicableto the Company.
xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Indian Accounting Standard 24 "Related Party Disclosures" specified underSection 133 of the Act.
xiv. a) In our opinion and according to the information and explanationgiven to us the Company has an internal audit system commensurate with the size andnature of its business.
b) The reports of the Internal Auditor for the period under audit havebeen considered by us.
xv. The Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly the reporting on compliance with theprovisions of Section 192 of the Act under clause 3(xv) of the Order is not applicable tothe Company.
xvi. a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly the reporting under Clause3(xvi)(a) of the Order is not applicable to the Company.
b) The Company has not conducted non-banking financial or housingfinance activities during the year. Accordingly the reporting under Clause 3(xvi)(b) ofthe Order is not applicable to the Company.
c) The Company is not a Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India. Accordingly the reporting under Clause3(xvi)(c) of the Order is not applicable to the Company.
d) Based on the information and explanations provided by the managementof the Company the Group does not have any CICs which are part of the Group. We havenot however separately evaluated whether the information provided by the management isaccurate and complete. Accordingly the reporting under Clause 3(xvi)(d) of the Order isnot applicable to the Company.
xvii. The Company has not incurred any cash losses in the financialyear or in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors duringthe year and accordingly the reporting under Clause (xviii) is not applicable.
xix. According to the information and explanations given to us and onthe basis of the financial ratios (Also refer Note 42 to the financial statements) ageingand expected dates of realisation of financial assets and payment of financialliabilities other information accompanying the financial statements our knowledge of theBoard of Directors and management plans and based on our examination of the evidencesupporting the assumptions nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report that Company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.
xx. As at balance sheet date the Company does not have any amountremaining unspent under Section 135(5) of the Act. Accordingly reporting under clause3(xx) of the Order is not applicable.
xxi. The reporting under Clause 3(xxi) of the Order is not applicablein respect of audit of Standalone Financial Statements. Accordingly no comment in respectof the said clause has been included in this report.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Membership Number: 108391
Date: April 28 2022