To the Members of
Tata Metaliks Limited
Report on the Audit of the financial statements
1. We have audited the accompanying financial statements of Tata Metaliks Limited("the Company") which comprise the Balance Sheet as at March 31 2022 theStatement 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 to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 total comprehensive income(comprising of profit and other comprehensive income) its changes in equity and its cashflows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the "Auditor's Responsibilities for the Audit of the FinancialStatements" section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key audit matters
4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current year. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
|Key audit matter ||How our audit addressed the key audit matter |
|Appropriateness of carrying amount of deferred tax assets relating to Minimum Alternate Tax credit ||Our audit procedures included the following: |
|(Refer Note 3 to the financial statements - Use of estimates and critical accounting judgements - Valuation of Deferred Tax Assets.) || Understood and evaluated the design and tested the operating effectiveness of Company's controls relating to taxation and the assessment of carrying amount of deferred tax assets; |
|The Company has recognised deferred tax assets on the unutilised tax credits representing Minimum Alternate Tax (MAT) in accordance with the provisions of Section 115JB of the Income-tax Act 1961 and related rules paid on the book profit in the years in which the Company did not have normal taxable profits. The carrying amount of MAT Credit included under Deferred Tax Liabilities (net) is ' 51.62 lakhs as at the balance sheet date. || Reviewed the Company's accounting policy in respect of recognizing / carrying deferred tax assets; |
| || Involved auditor's experts to evaluate the availability of the tax credit in keeping with the applicable provision of Income tax Act / Rules; |
| || Assessed the calculations and assumptions supporting the carrying amount of the asset; |
|The balance of MAT Credit assets is significant to the financial statements. Under the Indian Accounting Standard (IND AS) 12 these assets require review at each reporting period. || Evaluated the reasonableness of the assumptions underlying management's profit projections in the light of the relevant economic internal and external factors; |
|This has been determined as a key audit matter as the assessment of the appropriateness of the carrying amount of deferred tax asset relating to MAT involves significant management judgement in assessing the availability of future taxable profits to offset the accumulated MAT credits assessment of assumptions (internal / external factors including demand and pricing) underlying the future profit projections to establish reasonable certainty around utilization of the asset. || Assessed the reasonableness of historical accuracy of the Company's projections by comparing the projections used in the prior year model with actual performance in the current year; |
| || Assessed the sensitivity analysis applied by the Company and evaluated if any change in the assumptions will lead to any material change in carrying amount; |
| || Evaluated the adequacy and appropriateness of disclosures made in the financial statements; |
| || Based on our above procedures performed we considered the carrying amount of deferred tax assets relating to MAT credit to be reasonable. |
5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Integrated Report and the Board'sReport along with Annexures to the Board's Report included in the Company's Annual Report(titled as 'Tata Metaliks Integrated Report & Annual Accounts 2021-22') but does notinclude the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance for thefinancial statements
6. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of
the accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
7. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's responsibilities for the audit of the financial statements
8. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
9. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
10. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current year and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure B a statement on the matters specified inparagraphs 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 explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors taken onrecord by the Board of Directors none of the directors is disqualified as on March 312022 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A".
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations as at March 31 2022 onits financial position in its financial statements.Refer Note 28 to the financialstatements.
ii. The Company has long-term contracts as at March 31 2022 for which there were nomaterial foreseeable losses. The Company did not have long term derivative contracts.Refer Note 46 to the financial statements.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2022.
iv. (a) The management has represented that to the best of its knowledge and beliefand as disclosed in the notes to the financial statements no funds have been advanced orloaned 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 lendor invest in other persons or entities identified in any manner whatsoever by or on behalfof the Company ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.[Refer Note 47(a) to the financialstatements];
(b) The management has represented that to the best of its knowledge and belief and asdisclosed in the notes to the financial statements no funds have been received by theCompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries. [Refer Note 47(b) to the financial statements]; and
(c) Based on such audit procedures that we considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance withSection 123 of the Act.
15. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.
Annexure A to Independent Auditor's Report
Referred to in paragraph 14(f) of the Independent Auditor's Report of even date to themembers of Tata Metaliks Limited on the financial statements for the year ended March 312022
Report on the Internal Financial Controls with reference to financial statements underClause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to financialstatements of Tata Metaliks Limited ("the Company") as of March 31 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wasestablished and maintained and if such controls operated effectively in all materialrespects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk.
The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financialstatements
7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2022 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by ICAI.
Annexure B to Independent Auditors' Report
Referred to in paragraph 13 of the Independent Auditors' Report of even date to themembers of Tata Metaliks Limited on the financial statements as of and for the year endedMarch 31 2022
i. (a) (A) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.
(B) The Company is maintaining proper records showing full particulars of IntangibleAssets.
(b) The Property Plant and Equipment are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. Pursuant to the programme a portion of the Property Plant andEquipment has been physically verified by the Management during the year and no materialdiscrepancies have been noticed on such verification.
(c) The title deeds of all the immovable properties (other than properties where theCompany is the lessee and the lease agreements are duly executed in favour of the lessee)as disclosed in Note 4A on Property Plant and Equipment and Note 4C on Right-of-useassets to the financial statements are held in the name of the Company.
(d) The Company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets during the year. Accordingly the reporting under clause3(i)(d) of the Order is not applicable to the Company.
(e) Based on the information and explanations furnished to us no proceedings have beeninitiated on or are pending against the Company for holding benami property under theProhibition of Benami Property Transactions Act 1988 (as amended in 2016) (formerly theBenami Transactions (Prohibition) Act 1988 (45 of 1988)) and Rules made thereunder andtherefore the question of our commenting on whether the Company has appropriatelydisclosed the details in its financial statements does not arise.
ii. (a) The physical verification of inventory (excluding stocks with third parties)has been conducted at reasonable intervals by the Management during the year and in ouropinion the coverage and procedure of such verification by Management is appropriate. Inrespect of inventory lying with third parties these have substantially been confirmed bythem. The discrepancies noticed on physical verification of inventory as compared to bookrecords were not 10% or more in aggregate for each class of inventory.
(b) During the year the Company has been sanctioned working capital limits in excessof ' 5 crores in aggregate from banks on the basis of security of current assets. TheCompany has filed quarterly returns or statements with such banks which are in agreementwith the books of account other than those as set out below. Also refer Note 45 to thefinancial statements.
|Name of the Banks ||Aggregate sanctioned working capital limits as on 31.03.2022 (Rs in lakhs) ||Nature of Current Asset offered as Security ||Quarter ended ||Amount disclosed as per quarterly return/ statement ||Amount as per books of account ||Difference ||Reasons for difference |
|State Bank of India (SBI) ||4500 || ||June 30 2021 ||24591 ||23200 ||1391 ||Incorrect Debtors ageing for less than 45 days age |
| || || || ||2447 ||3838 ||(1391) ||Incorrect Debtors ageing for more than 45 days age |
|HDFC Bank Limited (HBL) ||3000 || || ||15174 ||14852 ||322 ||Incorrect Debtors ageing for less than 45 days age. |
|DBS Bank Limited (DBL) ||7000 ||Refer * below ||September 30 2021 ||2747 ||3069 ||(322) ||Incorrect Debtors ageing for more than 45 days age. |
|Indusind Bank Limited (IBL) ||1000 || || ||5844 ||6472 ||(628) ||Incorrect Finished Goods Value provided in returns |
|ICICI Bank Limited (ICICI) ||10500 || ||December 312021 ||21866 ||21626 ||240 ||Incorrect Debtors ageing for less than 45 days age |
| || || || ||1998 ||2238 ||(240) ||Incorrect Debtors ageing for more than 45 days age |
|Kotak Bank Limited (KBL) || || ||June 30 ||24591 ||24960 ||(369) ||Incorrect Debtors ageing for less than 180 days age |
| ||6800 || ||2021 ||2447 ||2078 ||369 ||Incorrect Debtors ageing for more than 180 days age |
| || ||Refer # below ||September 30 2021 - ||15174 ||15817 ||(643) ||Incorrect Debtors ageing for less than 180 days age |
| || || || ||2747 ||2104 ||643 ||Incorrect Debtors ageing for more than 180 days age |
|Federal Bank Limited (FBL) ||1000 || || ||5844 ||6472 ||(628) ||Incorrect Finished Goods Value provided in returns |
| || || ||December 312021 ||21866 ||22504 ||(638) ||Incorrect Debtors ageing for less than 180 days age |
| || || || ||1998 ||1360 ||638 ||Incorrect Debtors ageing for more than 180 days age |
SBI - Hypothecation first charge over inventory and receivables and other currentassets on pari-passu basis with other working capital lenders of the Company underMultiple Banking Arrangement subject to sharing of pari-passu sharing letters by suchBanks.
HBL - Secured by way of hypothecation via creation of first charge on Raw MaterialStock-in-process Finished Goods spares stores consumables receivables and othercurrent assets of the Company both present and future on pari passu basis with otherworking capital lenders.
DBL - 1st Pari passu charge on the current assets of Kharagpur unit and 2ndPari passu charge on moveable fixed assets of Kharagpur Unit.
IBL - First hypothecation charge on the entire current assets of the company belongingto the Kharagpur unit on pari-passu with other banks. Second charge on the movable fixedassets pertaining to the Kharagpur unit of TML on pari-passu with other banks.
ICICI - First pari passu charge on book debts stock and other current assets of theborrower. Second pari passu charge by way of hypothecation of movable plant and machineryof Kharagpur unit of the Borrower located at Samraipur Gokulpur Kharagpur Pin- 721301West Bengal.
# KBL - First Pari Passu charge on current assets both present and future of thecompany's kharagpur unit along with other lenders in multiple banking arrangement andSecond Pari Passu Charge on movable fixed assets of Kharagpur unit along with otherlenders in multiple banking arrangement.
FBL - Pari-passu 1st charge on current assets with 25% margin on stock andbook debts (upto 180days). Documents of goods exported/ usance bills evidencing exportagainst LC/ confirmed order. Margin- NIL Extension of charge on current assets. CashMargin- NIL Bills backed by LCs
The Company has filed the revised quarterly returns or statements with such banks forabove instances in April 2022 with the correct amounts which are in agreement with thebooks of account.
Further the Company is yet to submit the returns/statements for the quarter endedMarch 31 2022 to the banks and hence reporting under clause 3(ii)(b) of the Order to theextent it relates to the last quarter of the financial year is not applicable. Also referNote 45 to the financial statements.
iii. (a) The Company has not made any investments during the year other than in aCompany. The Company has not granted secured/ unsecured loans/ advances in the nature ofloans to any Company/Firm/Limited Liability Partnership/Other Party during the year otherthan loan to a Company. The Company did not stand guarantee or provided security to anyCompany/Firm/Limited Liability Partnership/Other party during the year other than securityof certain current assets to eight banks against working capital facilities from banks.The aggregate amount during the year and balance outstanding at the balance sheet datewith respect to such loans and securities are as per the table given below:
| ||Security ||Loans |
| ||(Rs in lakhs) ||(Rs in lakhs) |
|Aggregate amount granted/ provided during the year - Others ||39000 ||15000 |
|Balance outstanding as at balance sheet date in respect of the above case - Others ||36475 ||150oo |
(b) In respect of the aforesaid investments/ loans / securities the terms andconditions under which such investments were made/ loans were granted / securitiesprovided are not prejudicial to the Company's interest.
(c) In respect of the aforesaid loans the schedule of repayment of principal andpayment of interest has been stipulated (the agreement also has option to cancel the Loanand demand the repayment). Principal amount of both the loans that was due for repaymentduring the year have been rolled over/ renewed as fresh loan and the party is regular inpayment of interest as applicable.
(d) In respect of the aforesaid loans there is no amount which is overdue for morethan ninety days.
(e) Following loans were granted to the same party which has fallen due during theyear and were renewed/extended. Further no fresh loans were granted to any party tosettle the overdue loans.
|Name of the Party ||Aggregate amount of dues renewed or extended (Rs in lakhs) ||Percentage of the aggregate to the total loans granted during the year |
|Tata Steel Downstream Products Limited ||15000 ||100% |
(f) The loans granted during the year including to related parties had stipulated thescheduled repayment of principal and payment of interest and the same were not repayableon demand. No amount of loans were granted to the promoters.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of the loans and investments made and guarantees and security provided byit as applicable.
v. The Company has not accepted any deposits or amounts which are deemed to be depositswithin the meaning of Sections 73 74 75 and 76 of the Act and the Rules framed thereunder to the extent notified.
vi. Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.
vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including goods and services tax provident fund (refer remarkbelow) employees' state insurance income tax sales tax service tax duty of customsduty of excise value added tax cess and other material statutory dues as applicablewith the appropriate authorities. Also refer note 41 to the financial statements regardingmanagement's assessment on certain matters relating to provident fund.
(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of statutory dues referred to in sub-clause (a) asat March 31 2022 which have not been deposited on account of a dispute are as follows:
|Name of statute ||Nature of dues ||Amount (net of payments/ deposits) (Rs in lakhs) ||Amount paid/ deposited (Rs in lakhs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Income Tax Act 1961 ||Income Tax ||3931.76 || ||2009-10 2010-11201213 2015-16 2016-17 and 2017-18 ||Commissioner of Income Tax (Appeals) |
|West Bengal Sales tax Act 1994 ||Sales Tax ||94.49 ||- ||2006-07 ||West Bengal Commercial Tax Appellate & Revision Board |
|Value Added Tax Act 2005 ||Value Added Tax ||2360.69 ||610.01 ||2015-16 2016-17 and 2017-18 ||West Bengal Commercial Tax Appellate & Revision Board |
|Finance Act 1994 ||Service Tax ||605.57 ||22.82 ||2007-08 2012-13 and 2013-14 ||Customs Excise and Service Tax Appellate Tribunal |
|Finance Act 1994 ||Service Tax ||81.65 ||- ||2010-11 to 2017-18 ||Assistant Commissioner |
|Finance Act 1994 ||Service Tax ||87.81 ||- ||2005-06 to 2010-11 ||Additional Commissioner |
|Central Excise Act 1944 ||Excise Duty ||232.86 ||- ||Till 30-06-2017 ||High Court -Calcutta |
|Central Excise Act 1944 ||Excise Duty ||5349.30 ||329.58 ||2005-06 to 2011-12 ||Customs Excise and Service Tax Appellate Tribunal |
|Central Excise Act 1944 ||Excise Duty ||35.81 ||- ||2010-11 ||Joint Commissioner |
|Central Excise Act 1944 ||Excise Duty ||8.52 ||- ||2010-11 and 2011-12 ||Assistant Commissioner |
|Central Excise Act 1944 ||Excise Duty ||36.93 ||0.82 ||2013-14 to 2017-18 ||Commissioner appeal |
|Customs Act 1932 ||Custom Duty ||12.00 ||1.50 ||2011-12 to 2015-16 ||Customs Excise and Service Tax Appellate Tribunal |
viii. According to the information and explanations given to us and the records of theCompany examined by us there are no transactions in the books of account that has beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax 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 the information andexplanations given to us the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest to any lender as applicable during the year.
(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared Wilful Defaulter by anybank or financial institution or government or any government authority.
(c) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purposes for which they were obtained. Also referNote 14 to the financial statements.
(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the Companywe report that no funds raised on short-term basis have been used for long-term purposesby the Company.
(e) The Company did not have any subsidiaries joint ventures or associate companiesduring the year and hence clause ix (e) of paragraph 3 of CARO2020 does not apply to theCompany.
(f) The Company did not have any subsidiaries joint ventures or associate companiesduring the year and hence clause ix (f) of paragraph 3 of CARO2020 does not apply to theCompany.
x. (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly the reportingunder clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or private placement of sharesor fully or partially or optionally convertible debentures during the year. Accordinglythe reporting under clause 3(x)(b) of the Order are not applicable to the Company.
xi. (a) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company noticed or reported duringthe 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 the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us a report under Section 143(12)of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 was not required to be filed with the Central Government. Accordingly thereporting under clause 3(xi)(b) of the Order is not applicable to the Company.
(c) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording 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 2014 are not applicableto it the reporting under clause 3(xii) of the Order is not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard 24 Related Party Disclosures specified under Section 133 of the Act.
xiv. (a) In our opinion and according to the information and explanation given to usthe Company has an internal audit system commensurate with the size and nature of itsbusiness.
(b) The reports of the Internal Auditor for the period under audit have been consideredby us.
xv. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the reporting on compliance with the provisionsof Section 192 of the Act under clause 3(xv) of the Order is not applicable to theCompany.
xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the reporting under clause 3(xvi)(a) of theOrder is not applicable to the Company.
(b) The Company has not conducted non-banking financial / housing finance activitiesduring the year. Accordingly the reporting under clause 3(xvi)(b) of the Order is notapplicable to the Company.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the reporting under clause 3(xvi)(c) ofthe Order is not applicable to the Company.
(d) Based on the information and explanations provided by the management of theCompany the Group has six CICs as part of the Group as detailed in note 48 to thefinancial statements. We have not however separately evaluated whether the informationprovided by the management is accurate and complete.
xvii. The Company has not incurred any cash losses in the financial year or in theimmediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year andaccordingly the reporting under clause 3 (xviii) is not applicable.
xix. According to the information and explanations given to us and on the basis of thefinancial ratios [Also refer Note 44 to the financial statements] ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the financial statements our knowledge of the Board of Directorsand management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that the Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the company as and when they falldue.
xx. The Company has during the year spent the amount of Corporate Social Responsibilityas required under sub-section (5) of section 135 of the Act and hence matter specified inclause 3(xx) of the Order does not apply to the Company.
xxi The reporting under clause 3(xxi) of the Order is not applicable in respect ofaudit of standalone Financial Statements. Accordingly no comment in respect of the saidclause has been included in this report.