To the members of stove kraft limited
Report on the audit of the financial statements
1. We have audited the accompanying financial statements of stove kraftlimited ("the
Company") which comprise the balance sheet as at march 31 2022the statement of profit and loss (including other comprehensive income) the statement ofchanges in equity and the
Statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.
2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid financial statements give the informationrequired by the companies act 2013 ("the act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin india of the state of affairs of the company as at march 31 2022 and totalcomprehensive income (comprising of profit and other comprehensive income) changes inequity 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 those standards are further described in the"auditor?s responsibilities for the audit of the financial statements"section of our report. We are independent of the company in accordance with the code ofethics issued by the institute of chartered accountants of india together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the code of ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor 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 financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.
|Key audit matter ||How our audit addressed the key audit matter |
|Estimate of rebates and discounts ||Our procedures included the following |
|(Refer note 26 of the financial statements) || Obtained an understanding from the management with |
|The Company sells its products through various channels like modern retail general trade (retailers) ecommerce exports etc. with discounts based on the agreed schemes and recognises liabilities related to rebates and discounts. ||regard to controls relating to recording of rebates discounts and provision for sales returns and evaluated the design and tested the operating effectiveness of such controls. |
|As per the accounting policy of the Company the revenue is adjusted for rebates discounts etc. as per the terms of the schemes and sales returns. The management makes significant estimates in determining the rebates/ discounts linked to sales which are offered to the customers. || Obtained an understanding of the schemes provided by the Company to its customers . |
|The matter has been determined to be a key audit matter in view of the involvement of significant estimates and judgement made by the management and the amount of such discounts and rebates for the year being significant. || For selected sample schemes: |
| ||- Verified the inputs used in the estimation of rebates and discounts to source data; |
| ||- Assessed the underlying assumptions used for determination of rebates discounts and sales returns; |
| ||- Assessed the completeness of liability recognised by evaluating the parameters and the underlying calculations. |
| ||- Tested credit notes issued to customers and payments made to them during the year and subsequent to the year end. |
| ||Based on the above procedures performed the assessment made by management in respect estimation of rebates discounts and sales returns was considered to be appropriate. |
5. The company?s board of directors is responsible for the otherinformation. The other information comprises the information included in the managementdiscussion and analysis board?s report corporate governance report and shareholderinformation ("other information") but does not include the financial statementsand our auditor?s report thereon. The other information is expected to be madeavailable to us after the date of this auditor?s report.
6. Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
7. In connection with our audit of the financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.
8. When we read the other information if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take appropriate action as applicable under the relevant laws andregulations.
Responsibilities of management and those charged with governance forthe financial statements
9. 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 financialstatements 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
10. In preparing the financial statements management is responsiblefor assessing the company?s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting 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.
Auditor?s responsibilities for the audit of the financialstatements
11. Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor?s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with sas will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
12. As part of an audit in accordance with sas we exerciseprofessional judgment and maintain 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 inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the
Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.
evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by 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 materialuncertainty exists we are required to draw attention in our auditor?s 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 auditor?s 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 thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
13. 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.
14. 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.
15. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese 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.
16. The standalone financial statements of the
Company for the year ended march 31 2021 were audited by another firmof chartered accountants under the companies act 2013 who vide their report dated may25 2021 expressed an unmodified opinion on those financial statements.
Report on other legal and regulatory requirements
17. 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 thematters specified in paragraphs 3 and 4 of the order to the extent applicable.
18. 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 financial statements comply with theaccounting 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 the directorsis disqualified as on march 31 2022 from being appointed as a director in terms ofsection
164(2) of the act.
(f) with respect to the adequacy of the internal financial controlswith reference to financial statements of the company and the operating effectiveness ofsuch controls refer to our separate report in "annexure a".
(g) with respect to the other matters to be included in theauditor?s report in accordance with rule 11 of the companies (audit and auditors)rules 2014 (as amended) in our opinion and to the best of our information and accordingto the explanations given to us:
i. The company has disclosed the impact of pending litigations on itsfinancial position in its financial statements refer note 43 to the financial statements;
ii. The company has long-term contracts including derivative contractsas at
March 31 2022 for which there were no material foreseeable losses.Iii. There were no amounts which were required to be transferred to the investor educationand protection fund by the
Company during the year ended march 31 2022. Iv. (a) the managementhas represented that to the best of its knowledge and belief no funds 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(s) or entity(ies) includingforeign entities ("intermediaries") with the understanding whether recorded inwriting or otherwise that the
Intermediary shall whether directly or indirectly lend or invest inother 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 (refer note 51 to the financial statements);
(b) the management has represented that to the best of its knowledgeand belief no funds have been received by the company from any person(s) or entity(ies)including foreign entities ("funding parties") with the understanding whetherrecorded in writing or otherwise that the company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the funding party ("ultimate beneficiaries") or provide any guaranteesecurity or the like on behalf of the ultimate beneficiaries (refer note 51 to thefinancial 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 company has not declared or paid any dividend during the year.
19. 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 ||Mohan danivas s a |
|Firm registration number: 012754n/n500016 ||Partner |
|Date: may 30 2022 ||Membership number: 209136 |
|Place: bengaluru ||Udin: 22209136ajvqne1262 |
Annexure "a" to the independent auditor?s report
Referred to in paragraph 18(f) of the independent auditor?s reportof even date to the members of stove kraft limited on the financial statements for theyear ended march 31 2022
Report on the internal financial controls with reference to financialstatements under clause (i) of subsection 3 of section 143 of the act
1. We have audited the internal financial controls with reference tofinancial statements of stove
Kraft limited ("the company") as of march 31
2022 in conjunction with our audit of the financial statements of thecompany 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 financial statements based on our audit. Weconducted our audit in accordance with the guidance note and the standards on auditingdeemed to be prescribed under section 143(10) of the act to the extent applicable to anaudit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the icai. Those standards and the guidance note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.
4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor?s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud 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 financial statements.
Meaning of internal financial controls with reference to financialstatements
6. A company?s internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany?s internal financial controls with reference to financial statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company?s assetsthat could have a material effect on the financial statements.
Inherent limitations of internal financial controls with reference tofinancial statements
7. Because of the inherent limitations of internal financial controlswith reference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
8. In our opinion the company has in all material respects anadequate internal financial controls system with reference to financial statements andsuch internal financial controls with reference to financial statements were operatingeffectively as at march 31 2022 based on the internal control over financial reportingcriteria established by the company considering the essential components of internalcontrol stated in the guidance note issued by icai.
Annexure "b" to the independent auditor?s report
Referred to in paragraph 17 of the independent auditors? report ofeven date to the members of stove kraft limited on the financial statements as of and forthe year ended march 31 2022 page 1 of 7 i. (a) (a) the company is maintaining properrecords showing full particulars including quantitative details and situation ofproperty plant and equipment.
(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.
(c) the title deeds of all the immovable properties
(other than properties where the company is the lessee and the leaseagreements are duly executed in favour of the lessee) as disclosed in note 3(a) to thefinancial statements are held in the name of the company. [also refer note 51(x) to thefinancial statements]
(d) the company has not revalued its property plant and equipment(including right of use assets) or intangible assets during the year. 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 notarise.
(e) based on the information and explanations furnished to us noproceedings have been initiated on or are pending against the
Company for holding benami property under the prohibition of benamiproperty transactions act 1988 (as amended in 2016) (formerly the benami transactions(prohibition) act 1988 (45 of 1988)) and rules made thereunder and therefore thequestion of our commenting on whether the company has appropriately disclosed the detailsin its financial statements does not arise.
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 inventoryand have been appropriately dealt with in the books of account.
(b) during the year the company has been sanctioned working capitallimits in excess of `5 crores in aggregate from banks on the basis of security ofcurrent assets. The company has filed quarterly returns or statements with such bankswhich are in agreement with the books of account other than those as set out below (alsorefer note 49 to the financial statements)
|Quarter ended ||Name of the bank ||Amount as Per books of Account ||Amount as reported In the quarterly Statement ||Amount of Difference ||Reasons for material Discrepancies |
|September 2021 ||Hdfc bank icici Bank and axis bank ||1761.12 ||1657.40 ||103.72 ||The difference is Mainly Attributable to certain Trade Receivable balances which were Not included in the Statement Filed with the bank. |
|March 2022 || ||2170.17 ||2305.20 ||(135.03) ||The net difference Is Mainly Attributable to inventory in-transit Which has been considered in Inventory but not been considered In liabilities component. |
Iii. The company has not made any investments granted secured/unsecured loans/advances in nature of loans or stood guarantee or provided security toany parties. Therefore the reporting under clause 3(iii)(a) (iii)(b) (iii)(c)(iii)(d) (iii) (e) and (iii)(f) of the order are not applicable to the company.
Iv. The company has not granted any loans or made any investments orprovided any guarantees or security to the parties covered under sections 185 and 186.Therefore the reporting under clause 3(iv) of the order are not applicable to thecompany.
V. The company has not accepted any deposits or amounts which aredeemed to be deposits within the meaning of sections 73 74 75 and 76 of the act and therules 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 opinion thatprima facie the prescribed accounts and records have been made and maintained. We havenot however made a detailed examination of the records with a view to determine whetherthey 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 provident fundemployees? state insurance professional tax and income tax though there has been aslight delay in a few cases and is regular in depositing undisputed statutory duesincluding sales tax service tax duty of customs duty of excise value added tax cessgoods and services tax and other material statutory dues as applicable with theappropriate authorities.
(b) according to the information and explanations given to us and therecords of the company examined by us there are no statutory dues of employees?state insurance professional tax sales tax duty of excise cess and goods and servicestax which have not been deposited on account of any dispute. The particulars of otherstatutory dues referred to in sub-clause (a) as at march 31 2022 which have not beendeposited on account of a dispute are as follows:
|Name of the statute ||Nature of dues ||Gross Amount (Rs) ||Amount paid Under protest ||Period to which The amount relates ||Forum where the Dispute is pending |
|The central sales tax act 1956 ||Central sales tax ||2091901 ||- ||2016-17 ||Asst. Commissioner delhi |
|Custom duty act 1962 ||Customs duty ||4007495 ||4007495 ||2017-18 ||Commissioner (appeals) |
|Finance act 1994 ||Service tax ||4554978 ||- ||2010-11 ||Commissioner (appeals) |
|Finance act 1994 ||Service tax ||5474969 ||- ||2010-11 & 2011-12 ||Appellate tribunal Cestat |
|Finance act 1994 ||Service tax ||8043395 ||804339 ||2011-12 and 2012-13 ||Additional commissioner Of central excise |
|Finance act 1994 ||Service tax ||11963828 ||- ||2006-07 and 2010-11 ||Appellate tribunal Cestat |
|Finance act 1994 ||Service tax ||7026889 ||- ||2013-14 & 2014-2015 ||Additional commissioner Of central excise |
|Kvat act 2003 ||Value added tax ||40859 ||- ||2014-15 ||Deputy commissioner of Commercial taxes (audit) bangalore |
|Tamil nadu value added Tax act 2006 ||Value added tax ||2230417 ||2230417 ||2011-12 2013-14 2014-15 and 2015-16 ||Commissioner tax office Washermenpet-i chennai |
|Kerala value added tax Act 2003 ||Value added tax ||7201396 ||670054 ||2012-13 ||Deputy commissioner (gst) perumbavoor |
|Gujarat value added tax Act 2003 ||Value added tax ||460353 ||392500 ||2013-14 ||Deputy commissioner of Commercial taxes |
|Income tax act 1961 ||Income tax ||6750600 ||- ||2021-22 ||Commissioner of income Tax (appeals) |
|The employee provident Funds and miscellaneous Provisions act 1952 ||Provident fund ||9380000 ||2815788 ||2007-11 ||Epf appellate tribunal |
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.
(b) according to the information and explanations given to us and onthe basis of our audit procedures we report that the
Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.
(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 51(x) 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. Accordingly the reporting under clause3(ix)(e) of the order is not applicable to the company.
(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. Accordingly the reporting under clause 3(ix)(f) of the order is not applicableto the company.
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 is 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 is not applicable tothe company.
Xi. (a) during the course of our examination of the books and recordsof the company carried out in accordance with the generally accepted auditing practicesin india and according to the information and explanations given to us we have neithercome across any instance of material fraud by the company or on the
Company noticed or reported during the year nor have we been informedof any such case by the management.
(b) 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 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 ofthe company carried out in accordance with the generally accepted auditing practices inindia and according to the information and explanations given to us and as representedto us by the management no whistle-blower complaints have been received during the yearby the company. Accordingly the reporting under clause 3(xi) (c) of the order is notapplicable to the company.
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 andexplanation given to us the company has an internal audit system commensurate with thesize and nature 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/ 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 inthe regulations 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 themanagement of the company the group does not have any cics which are part of the group.We have not however separately evaluated whether the information provided by themanagement is accurate and complete. Accordingly the reporting under clause 3(xvi)(d) ofthe order is not 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 45 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 clause 3(xx) ofthe order is not applicable.
Xxi. The reporting under clause 3(xxi) of the order is not applicableas the accompanying financial statements are not consolidated financial statements.
|For price waterhouse chartered accountants llp ||Mohan danivas s a |
|Firm registration number: 012754n/n500016 ||Partner |
|Date: may 30 2022 ||Membership number: 209136 |
|Place: bengaluru ||Udin: 22209136ajvqne1262 |