The Members of
The Ugar Sugar Works Limited
Report on the Audit of the Financial Statements
We have audited the accompanying standalone financial statements of TheUgar Sugar Works Limited ("the Company") which comprise the Standalone BalanceSheet as at March 31 2021 the Standalone Statement of Profit and Loss (including OtherComprehensive Income) the Standalone Statement of Changes in Equity and the StandaloneStatement of Cash Flows for the year ended on that date and Notes to the StandaloneFinancial Statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone financial statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theindependence requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon we do not provide aseparate opinion on these matters. For each matter below our description of how our Auditaddressed the matter is provided in that context. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.
|Key Audit Matter ||How the matter was addressed in the audit |
|1. Accounting for Government Subsidy || |
|We identified Accounting for Government Subsidy as a key audit matter for the Company because recognition of subsidy revenue and assessment of recoverability of related subsidy receivable is subject to significant judgement of the Management. The area of subjectivity and judgement include interpretation and satisfaction of conditions specified in notification amount to be recognised recoverability of subsidy. ||Our audit approach consisted of Understanding and evaluating the design and testing of operating effectiveness of controls as established by the Management in recognition of subsidy. |
|During the year the Company has recognised subsidy revenue of Rs. 4555.82 Lakhs and subsidy receivable of Rs. 3765.92 Lakhs which are significant to the Standalone Financial Statements. ||We evaluated the Management's assessment regarding reasonable certainty of complying with the relevant conditions specified in the notification issued by the Government of India. |
| ||We understood the basis of judgement that the Management has made in relation to the notification and subsequent evidence as applicable. |
| ||We considered the notifications issued by Government of India's Ministry of Consumer Affairs Food & Public Distribution to ascertain the appropriateness of the recognition of subsidy revenue and adjustments to subsidy receivables already recognised. |
| ||We tested the ageing of related receivables and assessed the information used by the Management to determine its recoverability. |
| ||Based on above procedures performed we concluded that the Government subsidy is appropriately accounted for. |
|2. Contingent Liability || |
|The Company is involved in direct and indirect tax litigations of Rs. 728.99 Lakhs. The Company has also provided Corporate guarantee of Rs. 7900 Lakhs to the Bankers for Harvesting and Transportation Loan. ||Our procedures included but were not limited to the following: |
|Whether the liability is recognized or disclosed as a contingent liability is inherently judgmental and dependent on assumptions and assessment. We placed specific focus on the judgements in respect to these demands against the Company. Determining the amount if any to be recognized or disclosed in the financial statements is inherently subjective. Therefore it is considered to be a key audit matter. ||Obtained an understanding from the management with respect to process and controls followed by the Company for identification and monitoring of significant developments in relation to the litigations including completeness thereof. |
|(Refer Note D(1) to Standalone Financial Statements) ||Obtained the list of litigations from the management and reviewed their assessment of the likelihood of outflow of economic resources being probable possible or remote in respect of the litigations. |
| ||Assessed management's discussions held with their legal consultants and understanding precedents in similar cases. |
| ||We verified the appropriateness of the accounting policies disclosures related to provisions for sub judice matters and details of contingent liabilities in notes D(1) (b) (c) and (d) respectively in the Standalone financial statements |
|3. Valuation of Sugar Inventory || |
|Manufacturing of Sugar is complex process which leads to generation of certain joint products and by products which are used for generation of other products sold in the market as well as used as input in the manufacturing of Sugar. The valuation requires use of management's judgements and assumptions regarding elimination of inter-divisional profits allocation of costs of production between joint products based on their relative sales value and net realisable value (NRV) of different products which is further dependent upon the market conditions minimum selling prices subsequent inventory sale data current sale prices notifications/press releases from the government authorities technical estimates of expected recovery of final products being produced and incremental cost of products manufactured using joint products. ||We applied the following audit procedures in this areaamong others to obtain sufficient appropriate audit evidence: |
|These assumptions are subject to inherent uncertainties since they are likely to be influenced by nature and economic factors including uncertainties that may affect the industry on the whole Owing to the significance of the carrying value of Sugar inventories (Rs. 56189.06 Lakhs) the complexities discussed above and the fact that any changes in the management's judgement or assumptions is likely to have a significant impact on the ascertainment of carrying values of inventories we have considered this area as a key audit matter. ||Evaluated the accounting policy of sugar inventory in terms of relevant accounting standard; |
| ||Tested the design implementation and operating effectiveness of the Company's key controls over computation of cost of sugar inventory for each sugar mill; |
| ||Assessed the appropriateness of the principles used in the valuation of Inventory and analysed the reasonableness of significant judgements/ assumptions used by the management in their valuation models along with their consistency based on historical/industrial data trends such as sugar recovery rates generation of Molasses and Bagasse. |
| ||Tested the cost sheet data of both Sugar Plant. We assessed the adequacy of the method used relevance and reliability of data and the formula applied for determining the cost of sugar inventory. This included the basis of allocation of cost to by-products based on Net Realizable Value (NRV). In addition we assessed the impact of notifications/orders of the regulators on cost of sugar inventory. For cost of conversion we assessed the impact of variability in seasonal factors including number of Sugarcane crushing days and recovery of sugar from cane. |
| ||Attended the Physical Inventory verification for st the year ended 31 March 2021 and performed test counts at both the Sugar Plant. |
Information Other than the Standalone financial statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Corporate Governance and Shareholder's Informationbut does not include the standalone financial statements and our auditor's reportthereon.
Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Corporate Governance and Shareholder's Informationis expected to be made available to us after the date of this Auditor's Report henceour opinion is based on Standalone Financial Statements only.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. When we read Management Discussion and Analysis Board's Reportincluding Annexures to Board's Report Corporate Governance and Shareholder'sInformation If we conclude that there is a Material Misstatement therein we are requiredto communicate the matter to those charged with Governance.
Management's Responsibility for the Standalone FinancialStatements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements the Management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin
(i) planning the scope of our audit work and in evaluating the resultsof our work; and
(ii) to evaluate the effect of any identified misstatements in theStandalone Financial Statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit wereport to the extent applicable that:
1. 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.
2. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
3. The Standalone Balance Sheet the Standalone Statement of Profit andLoss including Other Comprehensive Income the Standalone Statement of Cash Flow andStandalone Statement of Changes in Equity dealt with by this Report are in agreement withthe relevant books of account.
4. In our opinion the aforesaid Ind AS standalone financial statementscomply with the Indian Accounting Standards prescribed under section 133 of the Act readwith rule 7 of the Companies (Accounts) Rules 2014.
5. On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164(2) of the Act.
6. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.
2. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during thecurrent year is in accordance with the provisions of section 197 read with Schedule V tothe Act. The Ministry of Corporate Affairs has not prescribed other details under Section197(16) which are required to be commented upon by us.
3. 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 Standalone Financial Statements Reference for the same is givenin Notes to Standalone Financial Statements.
II. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;
III. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company
4. As required by the Companies (Auditor's Report) Order 2016("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.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under Report on Other Legal andRegulatory Requirements' section of our report to the Members of THE UGAR SUGARWORKS LIMITED of even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of THE UGAR SUGAR WORKS LIMITED ("the Company") as of March 312021 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's Management and Board of Directors are responsiblefor establishing and maintaining internal financial controls based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to respectivecompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the 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 theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of the Management anddirectors of the company; 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 standalone financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the company has in all material aspects an adequatefinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 except that thereis scope for improvement in certain areas which require strengthening of controlsestablished 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. We have considered theseweaknesses identified in determining the nature timing and extent of audit tests appliedin our audit of the Standalone Financial Statements of the Company for the year endedMarch 31 2021 and these weaknesses do not affect our opinion on the Standalone FinancialStatements of the company.
Annexure "B" to the Independent Auditor's Report
(Referred to in paragraph 1 under Report on Other Legal andRegulatory Requirements' section of our report of even date)
(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment.
(b) The Company has a program of verification of property plant andequipment to cover all the items in a phased manner over a period of three years which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program certain property plant and equipment were physicallyverified by the management during the year. According to the information and explanationsgiven to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.
(ii) The inventory has been physically verified at reasonable intervalsby the Management and no material discrepancies were noticed on such verification. In ouropinion the frequency of verification is reasonable and adequate considering the size ofthe Company and the nature of its business.
(iii) The Company has not granted any loans secured or unsecured toCompanies Firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act. Accordingly paragraph 3(iii) of theOrder is not applicable.
(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct in respect of loans investments guarantees and security.
(v) According to information and explanation given to us the Companyhas not accepted any deposits from public. Accordingly the reporting under Clause 3(v) ofthe Companies (Auditor's Report) Order 2016 is not applicable.
(vi) The Central Government has specified maintenance of cost recordsunder Sub-Section (1) of Section 148 of the Act and we are of the opinion that prima faciesuch accounts and records are made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us inrespect of statutory dues:
(a) The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Income Tax Duty of Excise Goods & ServiceTax Cess and other material statutory dues applicable to it with the appropriateauthorities.
(b) There were no undisputed amounts payable in respect of ProvidentFund Income Tax Duty of Excise Goods & Service Tax Cess and other materialstatutory dues were in arrears as at March 31 2021 for a period of more than six monthsfrom the date they became payable.
(c) Details of dues of Income-tax Excise Duty and Value Added Taxwhich have not been deposited as on March 31 2021 on account of disputes are given below:
|Name of the Statute ||Nature of the Dues ||Amount Under Dispute (in Lakhs) ||Period(s) to which the amount relate ||Forum where such dispute is pending |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||14.61 ||2006-07 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||45.84 ||2007-08 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||15.36 ||2008-09 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||3.03 ||2010-11 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Reversal on Rectified Spirit Sold or transferred to IML ||151.34 ||2008-13 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||26.65 ||2012-13 ||Commissioner of Central Excise (GST) Belagavi |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||0.30 ||2014-15 ||Commissioner of Central Excise(GST) Belagavi |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||14.08 ||2016-17 ||Commissioner of Central Excise(GST) Belagavi |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||1.30 ||2015 ||Commissioner of Central Excise(GST) Belagavi |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||61.55 ||2017-18 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||61.20 ||2017-18 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||91.47 ||Feb 2008 to Dec 2009 ||CESTAT Bangalore |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||17.56 ||2017-18 ||Commissioner of Central Excise(GST) Belagavi |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||2.50 ||2010-11 ||Commissioner of Central Excise(GST) Belagavi |
|Central Excise Act 1944 ||Cenvat Credit Demand Issues ||2.47 ||Oct 2014 to Aug 2015 ||Commissioner of Central Excise(GST) Belagavi |
|Income Tax Act 1961 ||Dispute of Tax u/s 115JB ||189.53 ||AY 2012-13 ||Income Tax Appellate Authority Pune |
|Income Tax Act 1961 ||Dispute of Tax u/s 115JB ||9.27 ||AY 2014-15 ||Income Tax Appellate Authority Pune |
|Income Tax Act 1961 ||Dispute of Tax u/s 115JB ||0.79 ||AY 2016-17 ||CIT (A) Kolhapur |
|Karnataka Tax on Entry ||Entry Tax issues ||20.14 ||AY 2011-12 ||Karnataka Appellate Tribunal Bengaluru. |
(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tofinancial institutions banks and government and dues to the debenture holders.
(ix) In our opinion and according to the information and explanationsgiven to us the term loans taken by the Company have been applied for the purpose forwhich they were raised. The Company has not raised money by way of further public offer(including debt instruments) during the year.
(x) According to the information and explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the year.
(xi) In our opinion and according to the information and explanationsgiven to us the Company has paid/ provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of theOrder is not applicable.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.
(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its directors or persons connected with him. Accordingly paragraph 3(xv) of theOrder is not applicable.
(xvi) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934 and accordingly the provisionsof clause 3(xvi) of the Order are not applicable to the Company and hence not commentedupon.
| ||For Kirtane & Pandit LLP |
| ||Chartered Accountants |
| ||Firm Registration No.105215W/W100057 |
| ||Parag Pansare |
| ||Partner |
|Place : Pune ||Membership No. 117309 |
|Date : 28-05-2021 ||UDIN : 21117309AAAAJM8882 |