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Wendt India Ltd.

BSE: 505412 Sector: Engineering
NSE: WENDT ISIN Code: INE274C01019
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VOLUME 35
52-Week high 9156.00
52-Week low 3932.30
P/E 56.20
Mkt Cap.(Rs cr) 1,582
Buy Price 7810.10
Buy Qty 1.00
Sell Price 7898.95
Sell Qty 1.00
OPEN 7844.05
CLOSE 7844.05
VOLUME 35
52-Week high 9156.00
52-Week low 3932.30
P/E 56.20
Mkt Cap.(Rs cr) 1,582
Buy Price 7810.10
Buy Qty 1.00
Sell Price 7898.95
Sell Qty 1.00

Wendt India Ltd. (WENDT) - Auditors Report

Company auditors report

To the Members of Wendt (India) Limited.

Report on the audit of the Standalone financial statements

Opinion

1. We have audited the accompanying standalone financial statements ofWendt (India) Limited (“the Company”) which comprise the Balance Sheet as atMarch 31 2022 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory 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 loss)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 Audit ofthe standalone financial statements” section of our report. We are independent of theCompany 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 matters How our audit addressed the key audit matter
Appropriateness of revenue recognition on sale of goods and services Refer Note 2.5 (Revenue recognition) and Note 20(a) and (b) (Revenue from contract with customers) of the standalone financial statements. Our audit procedures relating to revenue recognition included the following:
Revenue from sale of goods and services is recognised in accordance with Ind AS 115 "Revenue from Contracts with Customers" at a point-in-time when control of goods and/or services has been transferred to customers. For the majority of the Company's customer arrangements the control transfers to customers at a point-in-time when goods have been dispatched or delivered to customers as that is generally when legal title physical possession and risks and rewards of goods transfers to the customers. a. Understood and performed procedures to assess the design and test the operating effectiveness of relevant controls related to recording of revenue;
Revenue from rendering of services is recognized at a point-in-time on rendering of services. b. Assessed whether the accounting policy of recognising revenue was in line with Ind AS 115;
We determined this to be a key audit matter due to the significant risk of fraud in revenue recognition and the substantial time and effort involved in assessing the appropriateness of revenue recognition. c. Tested the reconciliation of the amounts as per the sales register to the general ledger;
d.Performed tests on a sample basis by verifying the amounts recorded with the underlying documents which inter-alia included invoices dispatch documents customer orders/ contracts receipt of consideration from customers where applicable and estimation of variable consideration where applicable;
e. Performed tests on a sample basis on revenue recognised from services and verified that the revenue was recognised at a point-in-time as per the terms of agreement with customers; and
f. Performed cut-off testing on a sample basis and corroborated that the revenue from sale of goods is recognised in the appropriate period. Based on the above procedures performed we did not identify any material exceptions in revenue recognition of sale of goods and services.

Other Information

5. The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Report of theDirectors including Management Discussion and Analysis Report Corporate Governance Reportand Shareholder information but does not include the standalone financial statements andour auditor's report thereon.

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 inthis 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(including other comprehensive income) changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone 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 standalone financialstatements

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:

(a) Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

(b) 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.

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

(d) Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

(e) 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 precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso 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 Section143(11) 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 by Section 143(3) of the Act we report to the extentapplicable that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(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(including othercomprehensive income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt 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 and 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 the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (asamended) in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company does not have any pending litigations which would impactits financial position.

ii. The Company was not required to recognise any provision as at March31 2022 under the applicable law or accounting standards as it does not have anymaterial foreseeable losses on long-term contracts.

The Company did not have any derivative contracts as at March 31 2022.

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

iv. (a) The management has represented that to the best of itsknowledge and belief 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 toor in any other persons or entities including foreign entities(“Intermediaries”) with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother 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 47(vi)(a)to the standalonefinancial statements];

(b)The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities (“Funding Parties”) with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries [Refer Note 47(vi)(b)to thestandalone financial statements]; and

(c) Based on such audit procedures that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clauses(a) and (b) above contain any materialmisstatement.

v. 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.

For Price Waterhouse Chartered Accountants LLP
Chartered Accountants
Firm Registration Number: 012754N/N500016
Amit Kumar Agrawal
Partner
Place: Hosur Membership Number: 064311
Date: April 22 2022 UDIN: 22064311AHOUAO8863

Annexure A to Independent Auditor's Report

Referred to in paragraph 14(f)of the Independent Auditor's Report ofeven date to the members of Wendt (India) Limited on the standalone financial statementsas of and for the year ended March 31 2022

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

1. We have audited the internal financial controls with referenceto financial statements of Wendt (India) 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 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 to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance 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 material effecton 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.

For Price Waterhouse Chartered Accountants LLP
Chartered Accountants
Firm Registration Number: 012754N/N500016
Amit Kumar Agrawal
Partner
Place: Hosur Membership Number: 064311
Date: April 22 2022 UDIN: 22064311AHOUAO8863

Annexure B to Independent Auditors' Report

Referred to in paragraph 13 of the Independent Auditors' Report of evendate to the members of Wendt (India) Limited on the standalone financial statements as ofand for the year ended March 31 2022

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 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 two years which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. Pursuant to the programme a portion of the Property plantand equipment has been physically verified by the Management during the year and nomaterial discrepancies have been noticed on such verification.

(c) The title deeds of all the immovable properties (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) as disclosed in Note3A Property plant and equipment to thestandalone financial statements are held in the name of the Company.

(d) The Company has not revalued its Property plant and equipment(including Right of Use assets) or Intangible assets or both during the year.Consequently the question of our commenting on whether the revaluation is based on thevaluation by a Registered Valuer or specifying the amount of change if the change is 10%or more in the aggregate of the net carrying value of each class of Property plant andequipment (including Right of Use assets) 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 Benami Transactions (Prohibition) Act 1988 (45 of 1988) and Rules madethereunder 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 withthird parties has been conducted at reasonable intervals by the Management during the yearand in our opinion the coverage and procedure of such verification by Management isappropriate having regard to the volume and nature of the inventory. In respect ofinventory lying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not 10% or more in aggregate 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 a bank on the basis of security ofcurrent assets. The Company has filed quarterly returns or statements with such bank whichare not in agreement with the audited books of account as set out below. Also refer Note17A to the standalone financial statements.

Name of the Bank Aggregate working capital limits sanctioned (Rs in Lakhs) Nature of Current Asset offered as Security Quarter Ending Amount disclosed as per quarterly return/ statement (Rs in lakhs) Amount as per books of account (Rs in lakhs) Difference (Rs in lakhs) Reasons for difference
State Bank of India 1100 Inventories Jun-21 2489 2446 (43) Adjustment entries representing Provision for excessive and obsolete inventories made after submission of the Statement.
Inventories Sep-21 2326 2338 12
Inventories Dec-21 2519 2496 (23)
Inventories Mar-22 2568 2568 -
Trade Receivables

Jun -21

3371 3318 (54) Adjustment entries representing Loss allowance for receivables adjustment of customer advances and discounts recorded after submission of the Statement.
Trade Receivables Sep-21 3303 3284 (19)
Trade Receivables Dec-21 3102 3026 (76)
Trade Receivables Mar-22 3287 3312 26

iii. (a) The Company has made investments in five mutual fund assetmanagement companies and has granted unsecured loans to four employees of the Companyduring the year. The Company has not granted any loans to or stood guarantee or providedsecurity to its subsidiaries or has made any investments in the subsidiaries during theyear. The aggregate amount during the year and balance outstanding at the balance sheetdate with respect to such loans and investments are as per the table given below:

Amount (Rs. lakhs)
Aggregate amount granted / provided during the year:
- Loans to employees 0.3
- Investment in mutual fund schemes 3572.43
Balance outstanding as at balance sheet date in respect of the above cases:
- Loans to employees 0.4
- Investment in mutual fund schemes 2741.32

Also refer Notes 6B and12 to the standalone financial statements.

(b) In respect of the aforesaid investments and loans the terms andconditions under which such investments were made or loans were granted are notprejudicial to the Company's interest.

(c) In respect of the aforesaid loans the schedule of repayment ofprincipal has been stipulated and the parties are repaying the principal amounts asstipulated. These loans are interest free hence the question of commenting on payment ofinterest does not arise.

(d) In respect of the aforesaid loans there is no amount which isoverdue for more than ninety days.

(e) There were no loans which were granted to same parties and whichfell due during the year and were renewed/extended. Further no fresh loans were grantedto any party to settle the overdue loans.

(f) There were no loans which were granted during the year topromoters/related parties.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 186 of the Act inrespect of the investments made by it. The Company has not granted any loans or providedany guarantees or security to the parties covered under Section 185 of the Act. Thereforethe reporting under clause 3(iv) of the Order are not applicable to the Company to thatextent.

v. The Company has not accepted any deposits or amounts which aredeemed to be deposits from the public within the meaning of Sections 73 74 75 and 76 ofthe Act and the Rules framed there under to the extent notified.

vi. Pursuant to the rules made by the Central Government of India theCompany is required to maintain cost records as specified under Section 148(1) of the Actin respect of its products. We have broadly reviewed the same and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havenot however made a detailed examination of the records with a view to determine whetherthey are accurate or complete.

vii. (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion except for dues in respect ofproperty tax and professional tax which have not generally been regularly deposited theCompany is generally regular in depositing undisputed statutory dues in respect of incometax including tax deducted at source though there has been a slight delay in a few casesit is regular in depositing other undisputed statutory dues including provident fundemployees' state insurance duty of customs cess goods and services tax and othermaterial statutory dues as applicable with the appropriate authorities. The extent ofthe arrears of statutory dues outstanding as at March 31 2022 for a period of more thansix months from the date they became payable are as follows:

Name of the statute Nature of dues Amount (Rs.) Period to which the amount relates Due date Date of payment
The Tamil Nadu District Muncipalities Act 1920 Property tax 78849 October 2015 - March 2016 October 31 2015 Yet to be paid
236545 April 2016 to September 2016 April 30 2016
236545 October 2016 to March 2017 October 31 2016
236545 April 2017 to September 2017 April 30 2017
236545 October 2017 to March 2018 October 31 2017
236545 April 2018 to September 2018 April 30 2018
236545 October 2018 to March 2019 October 31 2018
236545 April 2019 to September 2019 April 30 2019
236545 October 2019 to March 2020 October 31 2019
236545 April 2020 to September 2020

April 30 2020

236545 October 2020 to March 2021 October 31 2020
236545 April 2021 to September 2021 April 30 2021
The Tamil Nadu District Muncipalities 1920 Professional Tax 3882 October 2018 to March 2019

April 30 2019

April 20 2022

9706 April 2019 to September 2019 October 31 2019
2533 October 2019 to March 2020 April 30 2020
5118 April 2020 to September 2020 October 31 2020
1236 October 2020 to March 2021 April 30 2021

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no statutory dues of property taxprofessional tax provident fund employees' state insurance duty of customs cess goodsand services tax which have not been deposited on account of any dispute. The particularsof dues of income tax 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.) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Income tax 440171 2000-01 High Court of Karnataka
300037 2007-08 Assistant Commissioner of Income tax Bengaluru
292740 2015-16

viii. According to the information and explanations given to us and therecords of the Company examined by us there is no income surrendered or disclosed asincome during the year in the tax assessments under the Income Tax Act 1961 that has notbeen recorded in the books of account.

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 as at the balancesheet date.

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

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the standalone financialstatements of the Company we report that no funds raised on short-term basis have beenused for long-term purposes by the Company.

(e) According to the information and explanations given to us and on anoverall examination of the standalone financial statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations 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 not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglythe reporting under clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or privateplacement of shares or fully or partially or optionally convertible debentures during theyear. Accordingly the reporting under clause 3(x)(b) of the Order is not applicable tothe Company.

xi. (a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company noticed orreported during the 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 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 was not required to be filed. 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 ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us the Company hasreceived whistle blower complaints during the year which have been considered by us forany bearing on our audit and reporting.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it the reporting under clause 3(xii) of the Order is not applicableto the Company.

xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Ind AS 24 “Related Party Disclosures” specified under Section 133of 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 with itsdirectors or persons connected with them.

Accordingly the reporting under clause 3(xv) of the Order is notapplicable to the Company.

xvi. (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly the reporting under clause3(xvi)(a) of the Order is not applicable to the Company.

(b) The Company has not conducted non-banking financial or 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 cash losses in the financial yearor in the immediately preceding financial year.

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

xix. According to the information and explanations given to us and onthe basis of the financial ratios(Also refer Note 48 to the standalone financialstatements) ageing and expected dates of realisation of financial assets and payment offinancial liabilities other information accompanying the standalone financial statementsour knowledge of the Board of Directors and management plans and based on our examinationof the evidence supporting the assumptions nothing has come to our attention whichcauses us to believe that any material uncertainty exists as on the date of the auditreport that the Company is not capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate. We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit 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. (a) In respect of other than ongoing projects as at balance sheetdate the Company does not have any amount remaining unspent under Section 135(5) of theAct.

(b) In respect of ongoing projects as at balance sheet date theCompany does not have any amount remaining unspent under Section 135(5) of the Act.Accordingly reporting under this clause is not applicable.

xxi. The reporting under clause 3(xxi) of the Order is not applicablein respect of audit of Standalone financial Statements. Accordingly no comment in respectof the said clause has been included in this report.

For Price Waterhouse Chartered Accountants LLP
Chartered Accountants
Firm Registration Number: 012754N/N500016
Amit Kumar Agrawal
Partner
Place: Hosur Membership Number: 064311
Date: April 22 2022 UDIN: 22064311AHOUAO8863

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