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V I P Industries Ltd.

BSE: 507880 Sector: Consumer
NSE: VIPIND ISIN Code: INE054A01027
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OPEN 592.10
PREVIOUS CLOSE 584.30
VOLUME 12459
52-Week high 774.50
52-Week low 409.95
P/E 62.90
Mkt Cap.(Rs cr) 8,286
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 592.10
CLOSE 584.30
VOLUME 12459
52-Week high 774.50
52-Week low 409.95
P/E 62.90
Mkt Cap.(Rs cr) 8,286
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

V I P Industries Ltd. (VIPIND) - Auditors Report

Company auditors report

To the Members of V.I.P. Industries Limited

Report on the Audit of the Standalone financial statements

OpiniOn

1. We have audited the accompanying standalone financial statements of V.I.P.Industries Limited ("the Company") which comprise the standalone Balance Sheetas at March 31 2022 the standalone Statement of Profit and Loss (including OtherComprehensive Income) the standalone Statement of Changes in Equity and the standaloneCash Flow statement for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation.

2. 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 accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2022 total comprehensive income(comprising of profit and other comprehensive income) 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 standaloneFinancial Statements" section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is appropriate toprovide a basis for our opinion.

Emphasis Of mattEr

4. We draw your attention to Note 37 to the standalone financial statements whichexplains the uncertainties and the management’s assessment of the financial impactdue to the COVID-19 pandemic situation for which a definitive assessment of the impact ishighly dependent upon circumstances as they evolve in the subsequent period. Our opinionis not modified in respect of this matter.

KEY AUDIT MATTERS

5. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. 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
1. Estimation of rebates discounts and sales returns Our procedures included the following:
(Refer note 3(ii) to the Standalone financial statements) Obtained an understanding with regard to controls relating to recording of rebates discounts sales returns and the estimation of revenue period end provisions and tested the design and operating effectiveness of such controls;
The Company sells its products through various channels like modern trade distributors retailers institutions etc. and recognises liabilities related to rebates discounts and right of return. Verified the inputs used in the estimation of revenue (in context of rebates discounts and sales returns) to the source data;
As per the accounting policy of the Company the revenue is recognised upon transfer of control of goods to the customer and thus requires an estimation of the revenue taking into consideration rebates discounts and right of return as per the terms of the contracts. Assessed the underlying assumptions used for determination of rebates discount rates sales returns etc.;
With regard to determination of revenue the management is required to make significant estimates in respect of following: Verified the completeness of liabilities recognised by evaluating the parameters for a sample of schemes;
the rebates/discounts linked to sales which will be given to the customers pursuant to schemes offered by the Company; Performed analysis for past trends by comparing recent actuals with the estimates of earlier periods;
provision for sales returns where the customer has right to return the goods to the Company; and Tested credit notes issued to customers and payments made to them during the year and subsequent to the year-end in along with the terms of the related schemes.
Discounts offered by the distributors to the costumers in accordance with schemes offered by the Company. Based on the above procedures performed the assessment made by management in respect estimation of rebates discounts and sales returns was considered to be appropriate.
The matter has been determined to be a key audit matter in view of the involvement of significant estimates and judgements made by the management.
2. Assessment of litigations in respect of sales tax matters Our procedures included the following:
(Refer notes 20 and 39 in the Standalone financial statements) We evaluated and assessed and tested the design and operating effectiveness of key controls surrounding assessment of litigations;
The Company has litigations in respect of certain sales tax matters. In this regard the Company has recognised a provision and has disclosed the balance under contingent liabilities as at March 31 2022. We enquired with management the recent updates and the status of litigation matters;
Significant to assess these matters and to determine the probability of material outflow of economic resources and whether a provision should be recognised or a disclosure should be made. We performed our assessment on the underlying calculations supporting the provisions recorded and other disclosures made in the standalone financial statements;
Where considered relevant the management judgement is also supported with legal advice in these cases. We also used auditor’s experts to evaluate the management’s assessment of these matters and assessed changes in the disputes by reading external legal advice taken by the Company where relevant to establish the appropriateness of the provisions/disclosures;
We identifiedthis matter as a key audit matter as the ultimate outcome of matters are uncertain and the positions taken by the management are based on the application of judgement related legal advice including those relating to interpretation of laws and regulations. We evaluated management’s assessment of the matters that are not disclosed and assessed whether the probability of material outflow was considered to be remote by the management for these matters; and
We assessed the adequacy of the Company’s disclosures for litigations in respect of the sales tax matters.
Based on the above procedures the assessment made by management in respect of provisions recognized and disclosures made in ‘contingent liabilities’ relating to these sales tax matters in the standalone financial statements was considered to be appropriate.

OthEr infOrmatiOn

6. The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual report 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 thE standalOnEfinancial statEmEnts

7. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

8. In preparing the standalone financial statements management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to doubt on the Company’s abilityliquidate the Company or to cease operations or has no realistic alternative but to doso. Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

auditOr’s rEspOnsiBilitiEs fOr thE audit Of thE standalOnE financial statEmEnts

9. 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 ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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.

10. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional deficiencies 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 for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions 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 reasonableness ofaccounting 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 to significant continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor’s report to the related disclosures in the financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor’s report.However future events or conditions may cause the Company to cease to continue as a goingconcern.

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

11. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant in audit findings including anysignificant internal control that we identify during our audit.

12. 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.

13. 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 period and are therefore the key audit matters. We describe these matters inour 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

14. 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. 15. As required by Section143(3) of the Act we report that: (a) We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof 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 standalone Balance Sheet the standalone Statement of Profit and Loss(including other comprehensive income) the standalone Statement of Changes in Equity andthe standalone Cash Flow statement dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act. (e) On the basis of thewritten representations received from the directors as on March 31 2022 taken on recordby the Board of Directors none of the directors is disqualified as on March 31 2022 frombeing 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 on its financialposition in its financial statements Refer Note 39 to the standalone financial statements;

ii. The Company has long-term contracts as at March 31 2022 for which there were nomaterial foreseeable losses. Further the Company did not have any derivative contracts asat March 31 2022.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year.

iv. (a) The management has represented that to the best of its knowledge and beliefas disclosed in the notes to the accounts no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other person(s) or entity(ies) including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries (Refer Note 50 to the standalone financialstatements);

(b) The management has represented that to the best of its knowledge and belief asdisclosed in the notes to the accounts no funds have been received by the Company fromany person(s) or entity(ies) including foreign entities ("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 any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries (Refer Note 50 to thestandalone 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.

16. The Company has provided for managerial remuneration in accordance with therequisite approvals mandated by or the provisions of Section 197 provide read withSchedule V to the Act.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number:FRN012754N/N500016

Alpa Kedia
Partner
Place: Mumbai Membership Number: 100681
Date: May 16 2022 UDIN: 22100681AJALIR2133

Annexure A to Independent Auditor’s Report

Referred to in paragraph 15(f) of the Independent Auditor’s Report of even date tothe members of V.I.P Industries ded March 31 2022 en Limitedonthestandalonefinancialstatementsforthe year report on the internal financial controls with reference tofinancial statements under clause (i) of sub-section 3 of section 143 of the act

1. We have audited the internal financial controls with reference to standalonefinancial statements of v.i. Industries limited ("the company") as of march 312022 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

2. The company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the company considering the essential components of internalcontrol stated in the guidance note on audit of internal financial controls over financialreporting ("the guidance note") issued by the institute of chartered accountantsof 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 offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the act.

Auditor’s responsibility

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’sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and a basis forour audit opinion on the Company’s internal financial controls system with referenceto financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

6. A company’s internal financial controls with reference to financial statementsis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internalfinancial controls with reference to financial statements includes those policies andprocedures 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 as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company’s assets that could have a materialeffect 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 control controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

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. Also refer paragraph 4 of main audit report.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number:FRN012754N/N500016

Alpa Kedia
Partner
Place: Mumbai Membership Number: 100681
Date: May 16 2022 UDIN: 22100681AJALIR2133

Annexure B to Independent Auditor’s Report

Referred to in paragraph 15(f) of the Independent Auditor’s Report of even date tothe members of V.I.P Industries ded March 31 2022 en Limitedonthestandalonefinancialstatementsforthe year i. (a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

(B) The Company is maintaining proper records showing full 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 3 yearswhich in our opinion is reasonable having regard to the size of the Company and thenature 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 beennoticedonsuchverification

(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 4 to the standalone financial statements are held in the name of theCompany except for the following: (Also refer Note 50 to the standalone financialstatements).

Description of property Gross carrying value (` in crores) Title deeds held in the name of Whether promoter director or their relative or employee Period held - indicate range where appropriate Reason for not being held in the name of the company**
Building at VIP House 88 C Old Prabhadevi Road Prabhadevi Mumbai 1.00 Blow Plast Limited No 01/04/2006 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon’ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process.
Freehold Land at Village Chhatral Taluka Kalol District Mehsana Gujrat * Universal Luggage Manufacturing Company Limited No 01/04/2007 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon’ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process.
Leasehold land at Paithan MIDC Area Aurangabad 0.01 Aristocrat Luggage Limited (erstwhile know as Universal Luggage Mfg Co. Ltd.) No 01/03/2007 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon’ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process.
Building at the Leasehold land at Paithan MIDC Area Aurangabad * Aristocrat Luggage Limited (erstwhile know as Universal Luggage Mfg Co. Ltd.) No 01/04/2007 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon'ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process.
Mermaid Co Op Housing Soc Ltd Juhu Tara Road Juhu Mumbai 0.16 Blow Plast Limited No 01/04/2006 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon'ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process
New Rising Sun Co Op Housing Soc Ltd Juhu Road Santacruz (W) Mumbai 0.33 Blow Plast Limited No 01/04/2006 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon'ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process.
Shop No 69 World Trade Centre Complex Cuffe Parade Mumbai 0.18 Blow Plast Limited No 01/94/2006 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon'ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process.
VIP House 88 C Old Prabhadevi Road Prabhadevi Mumbai 0.35 Blow Plast Limited No 01/04/2006 Acquired pursuant to a scheme of Amalgamation & Arrangement duly approved by the Hon'ble High Court of Judicature at Bombay. The formal process for the transfer was not initiated earlier. This has now been initiated and is under process.

 

* Amount is below the rounding off norm adopted by the Company

(d) The Company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets or both during the year (refer note 50 to the standalonefinancial statements).Consequently the question of our commenting on whether therevaluation is based on the valuation by a Registered Valuer or specifying the amount ofchange if the change is 10% or more in the aggregate of the net carrying value of eachclass of Property Plant and Equipment (including Right of Use assets) or intangibleassets does not arise.

(e) Based on the information and explanations furnished to us no proceedings have beeninitiated on the Company for holding benami property under the Prohibition of

Benami Property Transactions Act 1988 (as amended in 2016) (formerly the BenamiTransactions (Prohibition) Act 1988 (45 of

1988)) and Rules made thereunder (refer note 50 to the standalone financialstatements) and therefore the question of our commenting on whether the Company hasappropriately disclosed the details in its standalone financial statements does not arise.

ii. (a) The physical verification of inventory excluding stocks with third parties hasbeen 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 unaudited books of account. (Also refer Note 50 to the standalone financialstatements).

iii. (a) The Company has stood guarantee to two companies. The aggregate amount duringthe year and balance outstanding at the balance sheet date with respect to suchguarantees to subsidiaries are as per the table given below:

Particulars Guarantees
Aggregate amount granted/ provided during the year
- Subsidiaries 57.60
Balance outstanding as a balance sheet date in respect of the above case
- Subsidiaries 57.60

(b) In respect of the aforesaid guarantees the terms and conditions under which suchguarantees provided are not prejudicial to the Company’s interest.

The Company has not made any investments granted secured/ unsecured loans/advances innature of loans or provided security to any parties. Therefore the reporting underclause (iii)(c) (iii)(d) (iii)(e) and (iii)(f) of the Order are not applicable to theCompany.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Sections 185 and 186. Therefore thereporting under clause 3(iv) of the Order are not applicable to the Company.

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. Further the provisions of sub-section (1) of Section 73 arenot applicable to the Company as it is a non-banking financial company registered withRBI engaged in the business of giving loans.

vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.

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 fundemployees’ state insurance income tax sales tax service tax duty of customs dutyof excise value added tax cess and other material statutory dues as applicable withthe appropriate authorities. Also refer note 39 to the standalone financial statementsregarding management’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 there are no statutory dues of service-tax and duty of customswhich have not been deposited on account of any dispute. The particulars of otherstatutory dues in respect of income tax sales tax duty of excise value added tax goodsand service tax to in sub-clause (a) as at balance sheet date as at March 31 2022 whichhave not been deposited on account of a dispute are as follows: (Also refer note 39 ofthe standalone financial statements).

Name of the statute Nature of dues Amount (Crore)** Period to which the amount relates Forum where dispute is pending
Income Tax Income 1.00 F.Y. 2004-05 and F.Y. 2005-06 High Court
Act 1961 Tax 1.32 F.Y. 2015-16 and F.Y. 2017-18 Commissioner of Income Tax Appeals
0.02 F.Y. 2005-06 Assessing Officer
Central Central 0.07 1996-97 2002-03 Assistant Commissioner of Sales Tax
Sales Tax Sales 0.19 2002-03 Assistant Commissioner (BST)
Local Sales Tax Local 0.36 1990-91 2000-01 to 2003-04 Deputy Commissioner (BST)
Tax and Sales Tax 0.03 1992-93 1994-95 Assessing officer of Sales Tax
Goods and Purchase
Services tax entry 0.04 2001-02 to 2005-06 High Court
Tax tax VAT and Goods and Ser- vices Tax 0.14 2005-06 2010-11 and 2016-17 Deputy Commissioner of Sales Tax (Appeals)
0.11 1994-95 Joint Commissioner of Sales Tax (Appeals)
342.79 1983-88 1992-2001 and 2007 Sales tax Tribunal
-2017
0.52 2017-18 Deputy Asst. Commissioner GST
Central Excise Act 1994 Excise duty 0.17 2000-01 Supreme Court
0.01 2000-02 The Deputy Commissioner CGST & Central Excise

 

** Net of amounts paid under protest ` 2.77 Crore. viii. According to theinformation and explanations given to us and the records of the Company examined by usthere are no transactions in the books of account that has been surrendered or disclosedas income during the year in the tax assessments under the Income Tax Act 1961 that hasnot been recorded in the books of account. (Also refer Note 50 to the standalone financialstatements).

ix. (a) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest to any lender 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. (Also refer Note50 to the standalone financial statements).

(c) According to the records of the Company examined by us and the information andexplanations given to us the Company has not obtained any term loans.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the standalone financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanations given to us and on an overallexamination of the standalone financial statements of the Company we report that theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiary. The Company does not have any associate or joint venture.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies.

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 is 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. As explained by the management there were certaincomplaints in respect of which investigations are ongoing as on the date of our report andhence the impact on our audit report in respect of those complaints cannot be determinedat this stage.

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 standalone financial statements as required underIndian Accounting Standard 24 "Related Party Disclosures" specified underSection 133 ofthe . 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.

xiv. (b) The reports of the Internal Auditor for the period under audit have beenconsidered by 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 does not have any CICs which are part of the Group. We have nothowever separately evaluated whether the information provided by the management isaccurate and complete. Accordingly the reporting under clause 3(xvi)(d) of the Order isnot applicable to the Company.

xvii. The Company has not incurred any cash losses in the financial year and hadincurred cash losses of` 79.03 crores in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year andaccordingly the reporting under clause (xviii) is not applicable.

xix According to the information and explanations given to us and on the basis of thefinancial ratios (Also refer Note 50 to the standalone financial statements) ageing andexpected dates of realisation of financial assets and payment of financial liabilitiesother information accompanying the standalone financial statements our knowledge of theBoard of Directors and management plans and based on our examination of the evidencesupporting the assumptions nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report that Company isnot capable of meeting its liabilities existing at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the balance sheet date will get discharged by the Company as and when theyfall due.

xx. As at balance sheet date the Company does not have any amount remaining unspentunder Section 135(5) of the Act. Accordingly reporting under clause 3(xx) of the Order isnot applicable. (Also refer Note 50 to the standalone financial statements).

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.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: FRN012754N/N500016
Alpa Kedia
Partner
Place: Mumbai Membership Number: 100681
Date: May 16 2022 UDIN: 22100681AJALIR2133

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