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Trent Ltd.

BSE: 500251 Sector: Others
NSE: TRENT ISIN Code: INE849A01020
BSE 00:00 | 18 Aug 1456.00 -19.10
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NSE 00:00 | 18 Aug 1455.50 -19.20
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OPEN 1490.00
PREVIOUS CLOSE 1475.10
VOLUME 82611
52-Week high 1522.80
52-Week low 866.65
P/E 116.02
Mkt Cap.(Rs cr) 51,761
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1490.00
CLOSE 1475.10
VOLUME 82611
52-Week high 1522.80
52-Week low 866.65
P/E 116.02
Mkt Cap.(Rs cr) 51,761
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Trent Ltd. (TRENT) - Auditors Report

Company auditors report

To The Members of Trent Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Trent Limited("the Company") which comprise the Balance Sheet as at March 31 2022 and theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended on that date(hereinafter referred to as the "standalone financial statements") and asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. Particulars Description Procedures applied for audit
1 Existence and valuation of Inventories As indicated in Note 10 the value of the Company's inventories at year- end was Rs 822.45 crores representing 10.53 % of the Company's total assets. In response to this key matter our audit included among others the following principal audit procedures: Understood Management's control over physical inventory counts and valuation
- Evaluation of the design and testing the operating effectiveness of the internal controls relating to physical inventory counts at the stores and the warehouse. In testing this control we observed the inventory cycle count process on a sample basis inspected the results of the inventory cycle count and confirmed that the variances were approved and appropriately accounted for.
The existence of inventory is a key audit matter due to the involvement of high risk basis the nature of the retail industry wherein value per unit is relatively insignificant but high volumes are involved which are distributed across different Point of Sales and warehouses. - Evaluation of the design and testing the operating effectiveness of the internal controls relating to purchases sales and inventories including automated controls
- We have also performed roll-forward and alternate procedures on sample basis for establishing the existence of inventory as at year-end by validating purchases sales stock movement of inventory during the intervening period i.e. from the date physical verification was done till the year end date.
- For a representative sample verification that the finished goods inventories were correctly measured using a recalculation of the measurement of those inventories based on the cost of acquiring them from suppliers and considering the costs directly attributable to such goods.
- Assessed the key estimates used by the Management to determine the net realisable value and the consistency thereof with the Company's policy on provision for non- moving inventory and performed a sensitivity analysis on the estimated selling price and compared with the cost per item.
2 Information Technology (IT) The Company's key financial accounting and reporting processes are highly dependent on information systems including automated controls and other systems used for its overall financial reporting. In response to this key matter our work included the following procedures in which our audit team IT specialists were involved:
- Understood General IT Control i.e. access controls program/system change program development over key financial accounting and reporting systems including operating systems and databases.
- Understood IT application controls covering key interfaces;
- Test checked the General IT Controls for design and operating effectiveness for the audit period;
- Test checked the IT application controls for design and operating effectiveness for the audit period;
- Test checked controls over the IT infrastructure covering user access (including privilege users).
3 Assessment of Impairment of Investment in Trent Hypermarket Private Limited and Booker India Limited As indicated in Note 5 the Company's investment in Trent Hypermarket Private Limited and Booker India Limited amounting to Rs 613.59 crores and Rs 165.82 crores respectively involves assessment of impairment. In response to this key matter our audit included among others the following principal audit procedures:
- Evaluated the design of internal controls relating to the Management's assessment of the impairment workings.
- Assessed the reasonableness of the key business assumptions such as number of stores revenue
The Management determines the recoverable amount on the basis of the value-in-use approach (based on external valuation report) wherein the Management applies significant judgement assumptions and uses significant unobservable inputs and estimates to determine the recoverable amount. growth and EBIDTA margins by understanding the management's plan and performing retrospective testing.
- Assessed the reasonableness of the valuation assumptions namely the discount rate adopted for the valuation and the terminal growth rate with the assistance of our internal valuation experts.
- Performed a stress test around the key assumptions including that of COVID 19 impact to determine if any changes to key assumptions would impact the recoverable amounts.
4 Accounting for Lease Concessions under Amendments to Ind AS 116 The Company has considered the amendments to Ind AS 116 in the current year as well and consequently recognised Rs 64.74 Crores as part of other income in the statement of profit and loss for the year ended March 31 2022. Our audit procedures included:
1) Assessing the design and implementation of the key controls established by the Company on significant estimates such as the revised lease term lease payments and the discount rates.
The amendments extend the practical relief granted to the lessees in the previous year to the current year as well in accounting for rent concessions. 2) Our procedures to assess management's key modelling estimates and the completeness/accuracy of the underlying lease data included:
- assessing the discount rates used to calculate the lease obligation
Additionally the Company has renegotiated future lease rentals and escalations thereby remeasuring the lease liability using the revised lease payments resulting in a decrease in the lease liability and a corresponding adjustment to the Right-of-use asset - assessing the accuracy of the lease data by testing the lease data captured by management for a sample of leases through the inspection of lease documentation;
- assessing the completeness of the commercial arrangements for the waivers by testing lease payments and comparing the same with the original agreements with revised negotiations and
The large volume of leases the diverse nature thereof and the significance and impact of the estimates made led us to consider this matter to be a key matter to this audit. - For a representative sample of rent concessions received as a consequence of covid-19 related renegotiations verification of the correct accounting in accordance with the regulation in force .
3) Evaluating whether the disclosures included in the notes to the financial statements are in conformity with the applicable standard.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and Analysisand Board's Report including Annexures to Board's Report but does not include theconsolidated financial statements standalone financial statements and our auditor'sreport thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

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 standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone 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 financial 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 system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements. We communicate withthose charged with governance regarding among other matters the planned scope and timingof the audit and significant audit findings including any significant deficiencies ininternal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the books of account. d)In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act. e) On the basis of the written representationsreceived from the directors as on March 31 2022 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2022 from being appointedas a director in terms of Section 164(2) of the Act. f) With respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure A".Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting. g) With respect to theother matters to be included in the Auditor's report in accordance with the requirementsof section 197(16) of the Act as amended in our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid /provided by the Company to its directors during year is in accordance with the provisionsof Section 197 of the Act. h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 as amended 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 litigationson its financial position in its standalone financial statements. Refer Note No. 36(d)(Page 195) of the standalone financials statements. ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company except Rs 0.08crores which is held in abeyance due to legal cases pending. iv. (a) The Management hasrepresented that to the best of its knowledge and belief other than as disclosed innotes to accounts no funds (which are material either individually or in the aggregate)have been advanced or loaned or invested (either from borrowed funds or share premium orany other sources or kind of funds) by the Company to or in any other person or entityincluding foreign entity (‘Intermediaries') with the understanding whether recordedin writing 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 or thelike on behalf of the Ultimate Beneficiaries.

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity (‘Funding Parties')with the understanding whether recorded in writing or otherwise that the Company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries')or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our attention that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11 (e) as provided under (a) and(b) above contain any material misstatement. v. The final dividend proposed in theprevious year declared and paid by the Company during the year is in accordance withsection 123 of the Act as applicable.

The interim dividend declared and paid by the Company during the year and until thedate of this report is in accordance with section 123 of the Companies Act 2013.

As stated in note 1 (under Statement of Changes to Equity) to the financial statementsthe Board of Directors of the Company have proposed final dividend for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The amountof dividend proposed is in accordance with section 123 of the Act as applicable.

2. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W - 100018)
Sachanand C Mohnani
Partner
Membership No. 407265
Pune April 27 2022 UDIN:22407265AHXHMQ2265

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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

We have audited the internal financial controls over financial reporting of TrentLimited ("the Company") as of 31 March 2022 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theAct to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with 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 financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2022 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W - 100018)
Sachanand C Mohnani
Partner
Membership No. 407265
Pune April 27 2022 UDIN:22407265AHXHMQ2265

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' Section of our report of even date)

In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that (i) (a)A.The Company has maintained properrecords showing full particulars including quantitative details and situation ofProperty Plant and Equipment capital work-in-progress investment properties andrelevant details of right-of-use assets.

(a)B.The Company has maintained proper records showing full particulars of intangibleassets.

(b) Some of the Property Plant and Equipment capital work-in-progress investmentproperties and right-of-use assets were physically verified during the year by theManagement in accordance with a programme of verification which in our opinion providesfor physical verification of all the Property Plant and Equipment capitalwork-in-progress investment properties and right-of-use Assets at reasonable intervalshaving regard to the size of the Company and the nature of its activities. According tothe information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) With respect to immovable properties (other than properties where the Company isthe lessee and the lease agreements are duly executed in favour of the Company) disclosedin the financial statements included in property plant and equipment capital work-inprogress investment property and noncurrent assets held for sale according to theinformation and explanations given to us and based on the examination of the registeredsale deed / title deed provided to us we report that the title deeds of such immovableproperties are held in the name of the Company as at the balance sheet date except forthe following:

Description of Property

As at the Balance Sheet Date (Rs in crores)

Held in the name of Whether promoter director or their relative or employee Period held since Reasons for not being in the name of the Company
Gross Carrying value Carrying value in the financial statements
Rs In crores
Office premises bearing Nos. D2 and D4 Second floor Taj Building 210 Dr. D. N. Road Mumbai – 400001 0.23 0.04 Bruel Investments Private Limited No 1 April 1992 Title Deed of the property is in the name of Bruel Investments Private Limited which was amalgamated with Lakme Limited. Consequently Lakme Limited has changed its name to Trent Limited.
Flat no. 21/D Second floor Mamta-D Plot no. 926 T.P.S. no.IVAppasaheb Marathe Road Prabhadevi Mumbai-400025 0.71 0.14 Lakme Limited No 7 April 1994 Title Deed of the property is in the name of Lakme Limited which has changed its name to Trent Limited.

(d) The Company has not revalued any of its property plant and equipment (includingRight of Use assets) and intangible assets during the year.

(e) No proceedings have been initiated during the year or are pending against theCompany as at 31 March 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The inventories were physically verified during the year by the Management atreasonable intervals. In our opinion and according to the information and explanationsgiven to us the coverage and procedure of such verification by the Management isappropriate having regard to the size of the Company and the nature of its operations. Nodiscrepancies of 10% or more in the aggregate for each class of inventories were noticedon such physical verification of inventories when compared with books of account.

(b) According to the information and explanations given to us at any point of time ofthe year the Company has not been sanctioned any working capital facility from banks orfinancial institutions on the basis of security of current assets and hence reportingunder clause (ii)(b) of the Order is not applicable. (iii) The Company has madeinvestments in provided guarantee or security and granted loans or advances in the natureof loans secured or unsecured to companies firms Limited Liability Partnerships or anyother parties during the year in respect of which:

(a) The Company has provided loans during the year and details of which are givenbelow:

A Aggregate amount granted / provided during the year: Loans (Rs In crores)
Others 25.00
B. Balance outstanding as at balance sheet date in respect of above cases:*
Others 25.00

*The amounts reported are at gross amounts without considering provisions made.

The Company has not provided any advances in the nature of loans guarantee or securityto any other entity during the year.

(b) The investments made guarantees provided security given and the terms andconditions of the grant of all the above-mentioned loans and advances in the nature ofloans and guarantees provided during the year are in our opinion prima facie notprejudicial to the Company's interest.

(c) In respect of loans granted and advances in the nature of loans provided by theCompany the schedule of repayment of principal and payment of interest has beenstipulated and the repayments or receipts of principal amounts and interest have beenregular as per stipulations except for the following:

Name of the entity Nature Amount Due Date Extent of delay Remarks if any
Naman Developers Private Limited Interest Rs 2.5 crores for the year 1st of every month In the range of 1-74 days -

(d) According to information and explanations given to us and based on the auditprocedures performed in respect of loans granted and advances in the nature of loansprovided by the Company there is no overdue amount remaining outstanding as at thebalance sheet date.

(e) During the year loans or advances in the nature of loans aggregating Rs 25 croresfell due from certain parties and were extended during the year. The details of such loansthat fell due and were extended during the year are stated below:

Name of the party Aggregate amount of overdues of existing loans extended Percentage of the aggregate to the total loans or advances in the nature of loans granted during the year
Naman Developers Private Limited Rs 25 crores 100%

(f) According to information and explanations given to us and based on the auditprocedures performed the Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause (iii)(f) is not applicable.

(iv) The Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of loans granted investments made and guarantees andsecurities provided as applicable.

(v) The Company has not accepted any deposit or amounts which are deemed to bedeposits. Hence reporting under clause (v) of the Order is not applicable.

(vi) The maintenance of cost records has not been specified for the activities of theCompany by the Central Government under section 148(1) of the Companies Act 2013.

(vii) (a) In respect of statutory dues:

Undisputed statutory dues including Goods and Service Tax Provident Fund Employees'State Insurance Income-tax Sales Tax duty of Custom duty of Excise Value Added Taxcess and other material statutory dues applicable to the Company have generally beenregularly deposited by it with the appropriate authorities though there has been a delayin respect of remittance of Provident fund Profession Tax and Employees' State Insurance(ESIC) dues.

There were no undisputed amounts payable in respect of Goods and Service tax ProvidentFund Income-tax Sales Tax Service Tax duty of Custom Duty of Excise Value Added Taxcess and other material statutory dues in arrears as at March 31 2022 for a period ofmore than six months from the date they became payable.

(b) Details of statutory dues referred to in sub-clause (a) above which have not beendeposited as on March 31 2022 on account of disputes are given below:

(Rs In crores)
Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount (Net of Amount paid under protest) Amount paid under protest
Commissioner (Appeals) 2013-2014 2015-2016 7.69 -
Income Tax Act 1961 Income Tax Matters Income Tax Appellate Tribunal 2010-11 0.29 -
Assessing Officer 2014-15 0.72 -
Commissioner (Appeals) 2017-18 9.01 -
Central Sales Tax Act 1956 and respective State Sales Tax Act Sales Tax and Value Added Tax Deputy 1995-1996
Commissioner (Appeals) 2002-2003 2016-2017 0.04 -
Joint Commissioner (Appeals) 2012-2013 0.01 -
The Rajasthan Entertainments and Advertisement Taxes Act 1957 Advertisement Tax Joint Commissioner of Advertisement Tax (Appeal) 2012-13 - 0.46

(viii) There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessments under the Income Tax Act 1961(43 of 1961) during the year.

(ix) (a) In our opinion the Company has not defaulted in the repayment of dues todebenture holders. The Company has not taken any loans or borrowings from financialinstitutions and Government.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) The Company has not taken any term loan during the year and there are no unutilisedterm loans at the beginning of the year and hence reporting under clause (ix)(c) of theOrder is not applicable.

(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

(e) On an overall examination of the financial statements of the Company 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) The Company has not raised loans during the year and hence reporting on clause(ix)(f) of the Order is not applicable. (x) (a) The Company not raised moneys by way ofinitial public offer or further public offer (including debt instruments) during the yearand hence reporting under clause (x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge no fraud by the Company and no material fraud onthe Company has been noticed or reported during the year.

(b) To the best of our knowledge no report under sub-section (12) of section 143 ofthe Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government during the year and upto thedate of this report.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year and provided to us when performing our audit.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act where applicable for all transactions with the related parties and thedetails of related party transactions have been disclosed in the financial statements etc.as required by the applicable accounting standards.

(xiv) (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.

(b) We have considered the internal audit reports issued to the Company during theyear and covering the period up to 31 March 2022 for the period under audit.

(xv) In our opinion during the year the Company has not entered into any non-cashtransactions with its directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Hence reporting under clause (xvi)(a) (b) and (c) of the Orderis not applicable.

(d) According to the information and explanations given to us by the Management thereare 5 CICs which are registered with the Reserve Bank of India and 1 CIC which is notrequired to be registered with the Reserve Bank of India forming part of the group.

(xvii) The Company has not incurred cash losses during the financial year covered byour audit and the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that

Company is not capable of meeting its liabilities existing at the date of balance sheetas and when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.

(xx) The Company has fully spent the required amount towards Corporate SocialResponsibility (CSR) and there is no unspent CSR amount for the year requiring a transferto a Fund specified in Schedule VII to the Companies Act or special account in compliancewith the provision of sub-section (6) of section 135 of the said Act. Accordinglyreporting under clause (xx) of the Order is not applicable for the year.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W - 100018)
Sachanand C Mohnani
Partner
Membership No. 407265
Pune April 27 2022 UDIN:22407265AHXHMQ2265

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