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Visaka Industries Ltd.

BSE: 509055 Sector: Industrials
NSE: VISAKAIND ISIN Code: INE392A01013
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OPEN 429.00
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VOLUME 3245
52-Week high 709.00
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P/E 7.01
Mkt Cap.(Rs cr) 703
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OPEN 429.00
CLOSE 411.75
VOLUME 3245
52-Week high 709.00
52-Week low 401.25
P/E 7.01
Mkt Cap.(Rs cr) 703
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Visaka Industries Ltd. (VISAKAIND) - Auditors Report

Company auditors report

To the Members of

Visaka Industries Limited

Report on the audit of the Standalone financial statements Opinion

1. We have audited the accompanying standalone financial statements ofVisaka Industries Limited ("the Company") which comprise the standalone balancesheet as at March 31 2022 and the standalone statement of Profit and Loss (includingOther Comprehensive Income) the standalone statement of changes in equity and thestandalone statement of cash flows for the year then ended and notes to the standalonefinancial statements including a summary of significant accounting policies and otherexplanatory information.

2. In our opinion and to the best of our information and according tothe explanations 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 accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and total comprehensive income (comprising of profit and other comprehensive income)changes in equity and its cash flows for the year then ended.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the "Auditor?s Responsibilities for the Auditof the Standalone Financial Statements" section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
Appropriateness of capitalisation of costs included in Property Plant and Equipment/ Capital work in progress as per Ind AS 16 Property Plant and Equipment Refer to Note-2 (q) (Significant Accounting Policies) Note-4.1 (Property plant and equipment) and Note 4.2 (Capital work-in- progress) of the enclosed financial statements. We have performed procedures including the following in relation to testing of capitalisation of costs included in Property Plant and Equipment/ Capital work in progress:
During the year the company has incurred significant capital expenditure towards expansion of its asbestos plant at Lucknow its boards plant at Udumalpet and Chennai and its panels plant at Udumalpet. Capital expenditure of Rs. 8628.30 lakhs relating to boards plant at Udumalpet has been capitalized during the year and the capital expenditure on the other projects of Rs. 4357.28 lakhs is included in Capital work in progress as at the year end. Understood evaluated and tested the design and operating effectiveness of key controls relating to capitalisation of various costs incurred in relation to Property Plant and Equipment.
Performed test of details with focus on those items that we considered significant due to their amount or nature and tested a sample of items capitalised during the year against underlying supporting documents to ascertain nature of costs and whether they meet the recognition criteria provided in the Ind AS 16 Property Plant and Equipment in this regard.
Given the significance of the capital expenditure during the year there is a risk that elements of costs that are ineligible for capitalisation in accordance with the recognition criteria provided in Indian Accounting Standard 16 Property Plant and Equipment are capitalized and that costs that should have capitalized have been expensed. Verified the other related costs including those incurred towards repairs and maintenance and debited to Statement of Profit and Loss Account to ascertain whether these meet the criteria for capitalization.
Our procedures as mentioned above did not identify any costs that had been inappropriately capitalized and that costs that should have capitalised have been expensed.
Key audit matter How our audit addressed the key audit matter
Timing of Revenue recognition in the proper period as per Ind AS 115 Our audit procedures included the following:
Refer to Note-2 (d) (Significant Accounting Policies) and Note-26 (Revenue from operations) of the standalone financial statements. The Company?s revenue is principally derived from sale of building products and synthetic blended yarn. We evaluated the design and tested operating effectiveness of the relevant controls with respect to revenue recognition including those relating to cut off at year end;
In accordance with Ind AS 115 Revenue from contracts with customers revenue from sale of goods is recognised when control of the products being sold is transferred to the customer and when there are no unfulfilled obligations. The performance obligations in the contracts are fulfilled at the time of dispatch delivery or upon formal customer acceptance depending on terms of contract with the customer. Revenue is measured at fair value of the consideration received or receivable after deduction of any trade/ volume discounts and taxes or duties collected. We assessed the appropriateness of the revenue recognition accounting policies in line with Ind AS 115 "Revenue from Contracts with Customers".
We performed substantive testing of revenue transactions recorded during the year by testing the underlying documents which included goods dispatch notes shipping documents and customer acknowledgments as applicable.
We tested a sample of manual journal entries posted to revenue and assessed their appropriateness.
We identified timing of revenue recognition in the proper period as a key audit matter since it involves higher assessed risk of material misstatement and is required to be recognised as per the requirements of applicable accounting framework. We tested on a sample basis specific revenue transactions recorded before and after the financial year end date including examination of credit notes issued after the year end to determine whether the revenue has been recognised in the appropriate financial period.
Based on the above stated procedures no significant exceptions were noted in revenue recognition.

Other Information

5. The Company?s Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annualreport but does not include the financial statements and our auditor?s reportthereon.

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 in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance forthe standalone financial statements

6. 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 changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting

Standards specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

7. In preparing the standalone financial statements 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 management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Those Board of Directors arealso responsible for overseeing the Company?s financial reporting process.

Auditor?s responsibilities for the audit of the standalonefinancial statements

8. 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.

9. As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also: Identify andassess the risks of material misstatement of the standalone financial statements whetherdue to fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis 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 auditin 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 with reference to standalonefinancial statements in place and the operating effectiveness of such controls.

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

Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may 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.

10. 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.

11. We also provide those charged with governance with a statement thatwe have 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.

12. From the matters communicated with those charged with governancewe determine 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

13. As required by the Companies (Auditor?s Report) Order 2020("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 the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable. 14. As required bySection 143(3) of the Act we report that: (a) We have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes 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 the Statement of Profit and Loss (includingother comprehensive income) the Statement of Changes in Equity and the Statement of CashFlows dealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure A".

(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 (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 pendinglitigations on its financial position in its standalone financial statements – ReferNote 39 to the standalone financial statements; ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company during the year. iv. (a) Themanagement has represented that to the best of its knowledge and belief as disclosed inthe notes to the accounts no funds have been advanced or loaned or invested either fromborrowed funds or share premium or any other sources or kind of funds by the Company to orin any other person or entity including foreign entities ("Intermediaries")with the understanding whether recorded in writing or otherwise that the Intermediaryshall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries (Refer Note 57 to the standalone financial statements); (b) Themanagement has represented that to the best of its knowledge and belief as disclosed inthe notes to the accounts no funds have been received by the Company from any person orentity including foreign entities ("Funding Parties") with the understandingwhether recorded in writing or otherwise that the Company shall whether directly orindirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries (ReferNote 57 to the standalone financial statements); and (c) Based on such audit proceduresthat we considered reasonable and appropriate in the circumstances nothing has come toour notice that has caused us to believe that the representations under sub-clause (a) and(b) contain any material misstatement.

The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.

15. The Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

Annexure A to Independent Auditor?s Report

Referred to in paragraph 14(f) of the Independent Auditor?s Reportof even date to the members of Visaka Industries Limited on the standalone financialstatements for the year ended March 31 2022

Report on the Internal Financial Controls with reference to FinancialStatements under clause (i) of sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference tofinancial statements of Visaka Industries Limited ("the Company") as of March31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management?s Responsibility for Internal Financial Controls

2. The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting ("the Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company?s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditor?s Responsibility

3. Our responsibility is to express an opinion on the Company?sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingdeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor?s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financialstatements

6. A company?s internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany?s internal financial controls with reference to financial statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company?s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference tofinancial statements

7. Because of the inherent limitations of internal financial controlswith reference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial 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 anadequate internal financial controls system with reference to financial statements andsuch internal financial controls with reference to financial statements were operatingeffectively as at March 31 2022 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by ICAI.

Annexure B to Independent Auditor?s Report

Referred to in paragraph 13 of the Independent Auditors? Report ofeven date to the members of Visaka Industries Limited on the standalone financialstatements as of and for the year ended March 31 2022 i. (a) (A) The Company ismaintaining proper records showing full particulars including quantitative details andsituation of Property Plant and Equipment.

(B) The Company is maintaining proper records showing full particularsof Intangible Assets.

(b) The Property Plant and Equipment are physically verified by theManagement according to a phased programme designed to cover all the items over a periodof three years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme a portion of theProperty Plant and Equipment has been physically verified by the Management during theyear and no material discrepancies have been noticed on such verification. (c) The titledeeds of all the immovable properties as disclosed in Note 4.1 to the financialstatements are held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment orintangible assets or both during the year. Consequently the question of our commenting onwhether the revaluation is based on the valuation by a Registered Valuer or specifyingthe amount of change if the change is 10% or more in the aggregate of the net carryingvalue of each class of Property Plant and Equipment or intangible assets does not arise.

(e) Based on the information and explanations furnished to us noproceedings have been initiated on (or) are pending against the Company for holding benamiproperty under the Prohibition of Benami Property Transactions Act 1988 (as amended in2016) (formerly the Benami Transactions (Prohibition) Act 1988 (45 of 1988)) and Rulesmade thereunder. ii. (a) The physical verification of inventory has been conducted atreasonable intervals by the Management during the year and in our opinion the coverageand procedure of such verification by Management is appropriate. The discrepancies noticedon physical verification of inventory as compared to book records were not 10% or more inaggregate for each class of inventory.

(b) During the year the Company has been sanctioned working capitallimits in excess of Rs. 5 crores in aggregate from banks on the basis of security ofcurrent assets. The Company has filed quarterly returns or statements with such bankswhich are in agreement with the audited books of account (Also refer Note 51 to thefinancial statements).

iii. (a) The Company has made investments in four companies grantedunsecured loans to two companies and advances in nature of loans (salary advances) tofourteen other parties. The aggregate amount during the year and balance outstanding atthe balance sheet date with respect to such loans or advances and guarantees or securityto subsidiaries joint ventures and associates and to parties other than subsidiariesjoint ventures and associates are as per the table given below:

All amounts in Rs lakhs

Guarantees Security Loans Advances in nature of loans
Aggregate amount granted/ provided during the year
- Subsidiaries - - - -
- Joint Ventures - - - -
- Associates - - - -
- Others - - 3500.00 87.46
Balance outstanding as a balance sheet date in respect of the above case
- Subsidiaries - - - -
- Joint Ventures - - - -
- Associates - - - -
- Others - - 3022.03 67.74

(Also refer Note 6.2 12 and 13 to the financial statements)

(b) In respect of the aforesaid investments/loans/advances in nature ofthe loan the terms and conditions under which such loans were granted/investments weremade are not prejudicial to the Company?s interest.

(c) In respect of the aforesaid loans/advances in nature of loans theschedule of repayment of principal and payment of interest has been stipulated and theparties are repaying the principal amounts as stipulated and are also regular in paymentof interest as applicable. (d) In respect of the aforesaid loans/advances in nature ofloans there is no amount which is overdue for more than ninety days.

(e) There were no loans/advances in nature of loans which fell dueduring the year and were renewed/extended. Further no fresh loans were granted to sameparties to settle the existing overdue loans/advances in nature of loan.

(f) The loans/advances in nature of loans (in the nature of salaryadvances) granted during the year including to related parties had stipulated thescheduled repayment of principal and where applicable payment of interest except inrelation to a loan of Rs. 25 cr which is repayable on demand or within one year from dateof disbursement whichever is earlier. iv. In our opinion and according to the informationand explanations given to us the Company has complied with the provisions of Sections 185and 186 of the Companies Act 2013 in respect of the loans and investments made. TheCompany has not provided any guarantees and security to the parties covered under Sections185 and 186 of the Companies Act 2013.

v. In our opinion and according to the information and explanationsgiven to us the Company has complied with the directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 74 75 and 76 or any other relevant provisions ofthe Act and the Rules framed thereunder to the extent notified with regard to thedeposits accepted by the Company or amounts which are deemed to be deposits. According tothe information and explanations given to us no order has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal on the Company in respect of the aforesaid deposits and therefore the questionof our commenting on whether the same has been complied with or not does not arise. vi.Pursuant to the rules made by the Central Government of India the Company is required tomaintain cost records as specified under Section 148(1) of the Act in respect of itsproducts. We have broadly reviewed the same and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateor complete. vii. (a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company is regular indepositing the undisputed statutory dues including goods and services tax providentfund employees? state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess entry tax and other material statutorydues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no statutory dues of goods and servicestax provident fund employees? state insurance income tax cess which have notbeen deposited on account of any dispute. The particulars of other statutory dues referredto in sub-clause (a) as at March 31 2022 which have not been deposited on account of adispute are as follows:

Name of the statute Nature of dues Amount(Rs. In lakhs*) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise duty/ Interest/ Penalty 5646.23 2003-05 Customs Excise & Service tax Appellate Tribunal Chennai
Central Excise Act 1944 Excise duty 14.86 August 2013 to January 2016 Assistant commissioner Central excise Pune
Central Excise Act 1944 Excise duty 55.94 March 2006 to November 2015 Customs Excise & Service tax Appellate Tribunal Bangalore
Customs Central Excise & Service tax Drawback Rules 1995 Duty draw back 152.10 July 2009 to March 2011 Commissioner (Appeals) Customs & Central Excise Nagpur
Bihar VAT Act 2005 VAT/Interest 3.77 Financial year 2005-06 Joint Commissioner (Appeals) Patna
Orissa VAT Act 2004 VAT/Penalty 10.97 October 2009 to March 2011 Orissa Sales Tax Tribunal Cuttack
West Bengal VAT Act 2005 Interest 123.16 Financial year 2010-11 Additional Commissioner of Sales tax Kolkata
Orissa Entry tax Act 1999 Entry tax/ Penalty 10.38 October 2009 to March 2011 Orissa Sales Tax Tribunal Cuttack
Uttar Pradesh VAT Act 2008 VAT 60.48 April 2017 to June 2017 Additional Commissioner (Appeals) Commercial Tax Lucknow
Central Sales Tax Act1956 Central Sales tax 0.65 April 2017 to June 2017 Additional Commissioner (Appeals) Commercial Tax Lucknow
Central Sales Tax Act1956 Central Sales tax 8.03 April 01 2016 to March 31 2017 Joint Commissioner of State tax Nagpur.
Central Sales Tax Act1956 Central Sales tax 26.35 April 01 2017 to June 30 2017 Deputy Commissioner of State tax Nagpur.
Service tax Act 1994 Service Tax/ Penalty 12.85 April 2006 to February 2007 Commissioner Appeals Nagpur
Service tax Act 1994 Service Tax/ Penalty 2.20 July 2005 to October 2006 Commissioner Appeals Nagpur
Central Excise Act 1944 Excise duty/ Penalty 41.69 November 04 2006 to January 31 2007 Commissioner Appeals Nagpur

* Net of amount paid under protest – Rs. 188.69 lakhs.

viii. According to the information and explanations given to us and therecords of the Company examined by us there are no transactions in the books of accountthat has been surrendered or disclosed as income during the year in the tax assessmentsunder the Income Tax Act 1961 that has not been previously recorded in the books ofaccount. ix. (a) According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest to any lender during the year.

(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declared WilfulDefaulter by any bank or financial institution or government or any government authority.

(c) In our opinion and according to the information and explanationsgiven to us the term loans have been applied for the purposes for which they wereobtained. (Also refer Note 60 to the financial statements) (d) According to theinformation and explanations given to us and the procedures performed by us and on anoverall examination of the financial statements of the Company we report that no fundsraised on short-term basis have been used for long-term purposes by the Company.

(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company we report that the

Company has not taken any funds from any entity or person on account ofor to meet the obligations of its subsidiaries.

(f ) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries. x. (a) The Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) during the year. Accordingly the reporting under clause 3(x)(a) of the Orderis not applicable to the Company.

(b) The Company has made a preferential allotment of equity sharesduring the year in compliance with the requirements of Section 42 and Section 62 of theAct. The funds raised have been used for the purpose for which funds were raised. xi. (a)During the course of our examination of the books and records of the Company carried outin accordance with the generally accepted auditing practices in India and according tothe information and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company noticed or reported during the year norhave we been informed of any such case by the Management.

(b) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us a report underSection 143(12) of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 was not required to be filed with the Central Government.Accordingly the reporting under clause 3(xi)(b) of the Order is not applicable to theCompany.

(c) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us and as representedto us by the management no whistle-blower complaints have been received during the yearby the Company. Accordingly the reporting under clause 3(xi)(c) of the Order is notapplicable to the Company. xii. As the Company is not a Nidhi Company and the Nidhi Rules2014 are not applicable to it the reporting under clause 3(xii) of the Order is notapplicable to the Company. xiii. The Company has entered into transactions with relatedparties in compliance with the provisions of Sections 177 and 188 of the Act. The detailsof such related party transactions have been disclosed in the financial statements asrequired under Indian Accounting Standard 24 "Related Party Disclosures specifiedunder Section 133 of the Act. xiv. (a) In our opinion and according to the information andexplanation given to us the Company has an internal audit system commensurate with thesize and nature of its business.

(b) The reports of the Internal Auditor for the period under audit havebeen considered by us. xv. The Company has not entered into any non-cash transactions withits directors or persons connected with him. Accordingly the reporting on compliance withthe provisions of Section 192 of the Act under clause 3(xv) of the Order is not applicableto the Company. xvi. (a) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Accordingly the reporting under clause 3(xvi)(a)of the Order is not applicable to the Company.

(b) The Company has not conducted non-banking financial / housingfinance activities during the year. Accordingly the reporting under clause 3(xvi)(b) ofthe Order is not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly the reporting under clause3(xvi) (c) of the Order is not applicable to the Company.

(d) Based on the information and explanations provided by themanagement of the Company the Group does not have any CICs which are part of the Group.We have not however separately evaluated whether the information provided by themanagement is accurate and complete. Accordingly the reporting under clause 3(xvi)(d) ofthe Order is not applicable to the Company. xvii. The Company has not incurred any cashlosses in the financial year or in the immediately preceding financial year. xviii. Therehas been no resignation of the statutory auditors during the year and accordingly thereporting under clause (xviii) is not applicable. xix. According to the information andexplanations given to us and on the basis of the financial ratios (Also refer Note 46 tothe financial statements) ageing and expected dates of realisation of financial assetsand payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that Company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe Company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get discharged bythe Company as and when they fall due. xx. As at balance sheet date the Company does nothave any amount remaining unspent under Section 135(5) of the Act. Accordingly reportingunder clause 3(xx) of the Order is not applicable. Refer note 33(b) of the financialstatements. xxi. The reporting under clause 3(xxi) of the Order is not applicable inrespect of audit of Standalone Financial Statements. Accordingly no comment in respect ofthe said clause has been included in this report.

For Price Waterhouse & Co
Chartered Accountants LLP
Firm Registration
Number: 304026E/E-300009
UDIN: 22090196AIPZVG2482 N.K. Varadarajan
Place: Secunderabad Partner
Date: May 09 2022 Membership Number: 090196

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