You are here » Home » Companies » Company Overview » Vedanta Ltd

Vedanta Ltd.

BSE: 500295 Sector: Metals & Mining
NSE: VEDL ISIN Code: INE205A01025
BSE 15:22 | 21 Sep 229.05 -0.95
(-0.41%)
OPEN

231.00

HIGH

235.15

LOW

220.45

NSE 15:09 | 21 Sep 230.55 0.45
(0.20%)
OPEN

230.95

HIGH

235.30

LOW

221.10

OPEN 231.00
PREVIOUS CLOSE 230.00
VOLUME 2729440
52-Week high 355.70
52-Week low 200.75
P/E 27.56
Mkt Cap.(Rs cr) 85,142
Buy Price 229.05
Buy Qty 1225.00
Sell Price 229.10
Sell Qty 663.00
OPEN 231.00
CLOSE 230.00
VOLUME 2729440
52-Week high 355.70
52-Week low 200.75
P/E 27.56
Mkt Cap.(Rs cr) 85,142
Buy Price 229.05
Buy Qty 1225.00
Sell Price 229.10
Sell Qty 663.00

Vedanta Ltd. (VEDL) - Auditors Report

Company auditors report

To the Members of Vedanta Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof Vedanta Limited ("the Company") which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss including the statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended anda summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act. read with the Companies (Indian AccountingStandards) Rules 2015 as amended. 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 the design implementationand maintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement(s) whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder. Weconducted our audit of the standalone Ind AS financial statements in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalone IndAS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 its profits including other comprehensive income its cashflows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 1 a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(0)) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directorsas on March 31 2018 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2018 from being appointed as a director in terms ofsection 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 2" to this report;

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 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 litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 49 to thefinancial 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.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/
E300005
per Raj Agrawal
Place: Gurugram Partner
Date: May 03 2018 Membership Number: 82028

Annexure 1 referred to in paragraph 1 under the heading "Report onOther Legal and Regulatory Requirements" of our report of even date

Re: Vedanta Limited (‘the Company')

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in fixed assets are held inthe name of the Company except for the title deeds of immovable properties in oil and gasblocks jointly owned with other joint venture partners which are held in the name of thelicensee of the block. The written down value of such immovable properties in theaccompanying financial statement aggregates to 96.47 Crore.

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(iii) (a) The Company has granted loans to companies covered in theregister maintained under section 189 of the Act. In our opinion and according to theinformation and explanations given to us the terms and conditions of the grant of suchloans are not prejudicial to the Company's interest.

(b) The Company has granted loans that are either re-payable on demandor have a schedule for repayment of interest and principal to companies covered in theregister maintained under section 189 of the Act. We are informed that (a) repayment ofloan was received as and when the demands were raised during the year; and (b) loanswhich had a schedule for repayment were not due during the current year; and thus therehas been no default on the part of the parties to whom the monies have been lent. Thepayment of interest has been regular in all cases.

(c) There is no amounts of loans granted to companies listed in theregister maintained under section 189 of the Act which are overdue for more than ninetydays.

(iv) In our opinion and according to the information and explanationsgiven to us provisions of sections 185 and 186 of the Act in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees given have been complied with by theCompany. The Company has not granted any security in terms of sections 185 and 186 of theAct.

(v) According to information and explanations given to us the Companyhas not accepted any deposit from the public during the year. In respect of unclaimeddeposits the Company has complied with the provisions of sections 73 to 76 of the Act andthe rules framed there under.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Act related to the manufacture of goods andgeneration of electricity and are of the opinion that prima facie the specified accountsand records have been made and maintained. We have not however made a detailedexamination of the same.

(vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of custom duty of excise value addedtax goods and service tax cess and other statutory dues applicable to it.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax sales-tax duty of custom duty of excise value added tax goodsand service tax cess and other statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.

(c) According to the records of the Company the dues of income-taxsales-tax service tax customs duty excise duty and value added tax on account of anydispute are as follows:

Name of the Statute

Nature of the dues

Amount (in Crore) *

Period to which amount relates

Forum where the dispute is pending

Income tax Act 1961

Income tax

637.5

AY 2006-07 and AY 2008-09 to AY 2013-14

Commissioneroflncome Tax (Appeals)

1126.55

A.Y. 2007-08 to 2011-12

High Court

833.73

AY2002-03 2004-10 and 2012-13

Income Tax Appellate Tribunal

Withholding Tax demand

19385.73

AY 2006-07

Income Tax Appellate Tribunal

Income Tax

30.35

AY 1999-00 2008-09 and 2009-10

Not applicable as application h'led for rectih'cation

Finance Act 1994

Service tax demand

24.31

2006-07 2007-08 2016-17 and 2017-18

High Court

2.69

2009-17

Commissioner (Appeals)

200.28

2002-16

Custom Excise and Service tax appellate tribunal

0.51

2007-16

Commissioner ofExcise

 

Name of the Statute Nature of the dues

Amount (in Crore) *

Period to which amount relates

Forum where the dispute is pending

Central Excise Act 1944 Excise duty

300.63

1997-13 and 2014-15

Custom Excise and Service tax appellate tribunal

8.15

1997-2016

Commissioner ofcentral

excise

4.53

2000-06

High Court

0.43

2009-15

Commissioner Appeals

Oil Cess and NCCD

0.21

2002-03 and 2007-08

Custom Excise and Service

Demand

tax appellate tribunal

Education cess and secondary higher education cess on oil cess demand

53.45

2013-2015

Custom Excise and Service

tax appellate tribunal

Custom Act 1962 Custom duty

63.38

2004-05 to 2013-14

Custom Excise and Service tax appellate tribunal

6.97

2007-14

Commissioner appeals

0.18

1996-97 and 2005-10

Supreme Court

26.49

2005-06 to 2006-07

High Court

19.72

2004-05 to 2019-10 and 2012-13 to 2016-17

Commissioner

Central Sales Tax 1956 Sales tax

21.26

1998-99 to 2014-15 and 2016-17

High Court

11.08

2004-06

Additional Commissioner Sales Tax

1.40

2008-12

Value Added Tax Tribunal

Odisha Value Added Tax 2004 Value added tax

5.64

2014-15

Additional commissioner of commercial taxes

Andhra Pradesh VAT Act Value added tax

0.08

2012-15

Deputy Commissioner

2005

Appeals

Tamil Nadu VAT Act 2006 Value added tax

10.98

2008-09 to 2010-11

High Court

47.40

2007-08

Commissioner

* Net of amounts paid under protest/ adjusted against refunds.

(viii) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingto bank or government or dues to debenture holders. The Company did not have anyoutstanding dues to financial institutions.

(ix) In our opinion and according to the information and explanationsgiven by the management the Company has utilized the monies raised by way of debtinstruments in the nature of debentures and term loans for the purposes for which theywere raised. The Company has not raised moneys by way of initial public offer or furtherpublic offer.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany or no material fraud on the Company by the officers and employees of the Companyhas been noticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

(xii) In our opinion the Company is not a Nidhi Company. Thereforethe provisions of clause 3(xii) of the Order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with sections 177and188 of the Act where applicable and the details have been disclosed in the notes to thefinancial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) of the Orderare not applicable to the Company and hence not commented upon.

(xv) According to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with them as referred to in section 192 of the Act.

(xvi) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/
E300005
per Raj Agrawal
Place: Gurugram Partner
Date: May 03 2018 Membership Number: 82028