To the Members of Deccan Cements Limited Report on the Audit of the Financial
Statements Opinion
We have audited the financial statements of Deccan Cements Limited ("the
Company"), which comprise the Balance Sheet as at 31st March 2023, the Statement of
Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity
and Statement of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at March
31, 2023, and its profit (including other comprehensive income), changes in equity and its
cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined the matters described below to be the key audit matters to be communicated
in our report.
| Key Audit Matter |
Auditors Response |
| 1. Revenue Recognition - Price Discounts |
Principal Audit Procedures |
| • Revenue is measured net of discounts earned by customers on the Companys
sales. |
• Assessed the appropriateness of the Companys accounting policies relating to
price discounts by comparing with applicable accounting standards. |
| • Due to the Companys presence across different marketing regions within the
country and the competitive business environment, price discounts vary based on the
customer and market it caters to and recognised based on sales made during the year. These
discounts are calculated based on the market study reports which reports are collated
periodically by the management and are prone to manual interventions. |
• Assessed the design and tested the implementation and operating effectiveness
of Companys internal controls over the approvals, calculation, accounting and issuance of
credit notes. |
| • Therefore, there is a risk of revenue being misstated as a result of incorrect
computation of price discounts. |
• Obtained and inspected, on a sample basis, supporting documentation for price
discounts recorded and credit notes issued during the year as well as credit notes issued
after the year end date to determine whether these were recorded appropriately. |
| • Given the complexity involved in the assessment of price discounts and their
periodic recognition against sales, the same is considered as key audit matter. |
• Compared the historical trend of price discounts to sales made to determine the
appropriateness of current years discount charge. |
| Refer Note - 2(d)(i) of Significant Accounting Policies |
|
| 2. The Company has material litigations which involve significant judgement to
determine the possible outcome of these litigations. Refer Note 32 of the financial
statements. |
Principal Audit Procedures |
|
Obtained details of litigations for the year ended March 31, 2023 from management. We
have relied upon our internal experts to challenge the managements underlying assumptions
in estimating the possible outcome of the disputes. Our internal team also considered the
status of the disputes, legal precedence and other rulings in evaluating managements
position on these matters. We have also relied on assurances and opinions provided by the
various agencies, representing the company. |
| 3. Inventories as disclosed in Note 6 to the financial statements includes: |
Principal Audit Procedures |
|
The Company performs annual inventory counts at the year end and issues prior
notification of procedures to be performed for such inventory counts. Our audit procedures
to assess the existence of such items of inventory included the following: |
| • Raw materials comprising iron-ore, gypsum, limestone, laterite and fly ash; |
• Assessed the managements process of measurement of stockpiles and the
determination of values using conversion of volumes and density to total weight and the
related yield. |
| • Work-in-progress mainly comprising clinker |
• Obtained and reviewed the inventory count report of the managements team and
assessed its accuracy on a sample basis. |
| • Coal |
|
| The above items of inventory are stored in sheds, stockpiles and silos. As the
weighing of these inventories is not practicable, management assesses the reasonableness
of the quantities on hand by obtaining measurements of stockpiles and converting these
measurements to unit of volumes by using angle of repose and bulk density. The Company
involves its team in the inventory count process. |
|
| Due to the significance of inventory balances and related estimations involved, this
is considered as a key audit matter. |
|
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Directors Report but does not
include the financial statements and our auditors report thereon. The Directors Report is
expected to be made available to us after the date of this auditors report.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
When we read the Directors report if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with Governance.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards specified under section 133 of the Act. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
implementation and maintenance of accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls with reference to financial
statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements 1. As required by Section 143(3)
of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been 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 Other Comprehensive
Income), Statement of Changes in Equity and the Cash Flows dealt with by this Report are
in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to
the financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure A".
(g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended, in our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provision of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditors 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements (Refer Note 32 of the financial statements);
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;
iii. There is no delay in transferring the amounts which were required to be
transferred to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
no funds
(which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person or entity, including foreign
entity ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. As stated in Note 37(B) to the financial statements,
(a) the dividend proposed in the previous year, declared and paid by the Company during
the year is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed final dividend for the year
which is subject to the approval of the members at the ensuing Annual General Meeting. The
amount of divided proposed is in accordance with section 123 of the Act, as applicable.
vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for
the company only w.e.f. April 1, 2023, reporting under Rule 11(g) of Companies (Audit and
Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.
2. As required by the Companies (Auditors Report) Order, 2020, (the Order) issued by
the Central Government in terms of Section 143 (11) of the Act, we give in "Annexure
B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For M. Anandam & Co.,
Chartered Accountants
(Firms Registration No. 000125S)
Sd/-
M.V.Ranganath
Partner
Membership No. 028031
UDIN: 23028031BGVWJS2537
Place: Hyderabad
Date: 27-05-2023
Annexure "A" to the Independent Auditors Report
(Referred to in paragraph 1(f) under Report on Other Legal Regulatory Requirements
section of our report to the Members of the Company of even date)
Report on the Internal Financial Controls with reference to the financial statements
under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the
Act")
We have audited the internal financial controls with reference to financial statements
of Deccan Cements Limited ("the Company") as of 31st March 2023 in
conjunction with our audit of the financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to these financial statements based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued
by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an
audit of Internal Financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference to these financial statements
were established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system with reference to these financial statements and
their operating effectiveness. Our audit of internal financial controls with reference to
these financial statements included obtaining an understanding of internal financial
controls with reference to these financial statements, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected depend on the
auditors judgment, including the assessment of the risks of material misstatement of the
Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
with reference to these financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A companys internal financial control with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of Ind AS financial statements for external purposes in
accordance with generally accepted accounting principles. A companys internal financial
control with reference to financial statements includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
Ind AS financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the companys assets that could have a material effect on the Ind AS
financial statements.
Inherent Limitations of Internal Financial Controls with reference to Financial
Statements
Because of the inherent limitations of internal financial controls with reference to
these financial statements, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls with
reference to these financial statements to future periods are subject to the risk that the
internal financial control with reference to these financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations give
to us, the Company has, in all material respects, adequate internal financial controls
with reference to these financial statements and such internal financial controls with
reference to financial statements were operating effectively as at 31st March 2023, based
on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
For M. Anandam & Co.,
Chartered Accountants
(Firms Registration No. 000125S)
Sd/-
M.V.Ranganath
Partner
Membership No. 028031
UDIN: 23028031BGVWJS2537
Place: Hyderabad
Date: 27-05-2023
Annexure "B" to the Independent Auditors Report
With reference to Paragraph 2 under Report on Other Legal Regulatory Requirements
section of our report to the Members of the Company, we report that:
i In respect of the Companys Property, Plant and Equipment and Intangible Assets:
(a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment and relevant details
of right-of-use assets.
(B) The Company has maintained proper records showing full particulars of intangible
assets.
(b) According to the information and explanations given to us and the records of the
company examined by us, the property, plant and equipment have been physically verified by
the management in a periodical manner, which in our opinion is reasonable, having regard
to the size of the Company and the nature of its business. No material discrepancies were
noticed on such physical verification.
(c) Based on our examination of registered sale deeds and other documents, the title
deeds of all the immovable properties disclosed in the financial statements are held in
the name of the Company
(d) The Company has not revalued any of its Property, Plant and Equipment (including
right-of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii (a) The inventory has been physically verified by the management during the year. In
our opinion, the coverage, frequency and procedure of such verification is reasonable and
adequate in relation to the size of the Company and the nature of its business. The
discrepancies noticed on verification between the physical stocks and the book records
were not exceeding 10% in the aggregate for each class of inventory and have been properly
dealt with in the books of account.
(b) The Company is sanctioned working capital limits in excess of Rs.5 Crore from banks
on the basis of security of current assets. Further, the quarterly statements filed by the
Company with such banks are in agreement with the books of account of the Company.
iii During the year, the Company has not made investments, not provided any guarantee
or security or granted any loans or advances in the nature of loans, secured or unsecured,
to companies, firms, Limited Liability Partnerships or any other parties and hence
reporting under clause 3(iii) of the Order is not applicable.
iv In our opinion and according to the information and explanations given to us, the
Company has made investments which are in compliance with Section 186 of the Act. The
Company has not granted loans, not provided guarantees and securities.
v The Company has not accepted any deposits or amounts which are deemed to be deposits.
Hence, reporting under clause 3(v) of the Order is not applicable.
vi We have broadly reviewed the cost records maintained by the Company as prescribed
under subsection (1) of section 148 of the Act, and are of the opinion that, prima facie,
the prescribed accounts and records have been made and maintained. We have, however, not
made a detailed examination of the cost records with a view to determine whether they are
accurate or complete.
vii In respect of statutory dues:
a) In our opinion, the Company has generally been regular in depositing undisputed
statutory dues, including Goods and Services tax, Provident Fund, Employees State
Insurance, Income Tax, and other statutory dues applicable to it with the appropriate
authorities.
There were no undisputed amounts payable in respect of Goods and Services tax,
Provident Fund, Employees State Insurance, Income Tax, and other statutory dues in
arrears as at March 31,2023 for a period of more than six months from the date they became
payable.
b) Details of statutory dues referred to in sub-clause (a) above which have not been
deposited as on March 31, 2023 on account of disputes are given below:
| Name of the Statute |
Nature of the Dues |
Amount (In Lakhs) |
Amount Not Deposited (In Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
| Andhra Pradesh General Sales Tax Act,1957 / AP VAT Act, 2005 |
Sales tax/ VAT |
85.68 |
85.68 |
1999-00 & 2000-01 |
Honble High Court of Telangana |
| AP Electricity Duty Amendment Act,2003 |
Electricity Duty |
230.00 |
230.00 |
2003-04 to 2013-14 |
Honble High Court of Telangana |
| Telangana Tax on Entry of Goods into Local Areas Act, 2001 |
Entry Tax |
18.38 |
9.19 |
2012-13 To 2016-17 |
Appellate Tribunal, Hyderabad |
| Customs Act, 1962 |
Customs Duty |
24.12 |
24.12 |
August 2020 |
Commissioner of Customs (Appeals -II), Chennai. |
viii There were no transactions relating to previously unrecorded income that have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961).
ix a) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of loans or borrowings or in the payment of
interest thereon to any lender.
b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
c) According to the information and explanations given to us and procedures performed
by us, we report that the Company has applied the term loans for the purpose for which the
loans were obtained.
d) On an overall examination of the financial statements of the Company, funds raised
on short-term basis have, prima facie, not been used during the year for long-term
purposes by the Company.
e) The Company does not have any Subsidiaries, Associates or Joint Ventures and hence,
reporting under clause 3(ix)(e) and (f) of the Order is not applicable
x a) The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
xi a) No fraud by the Company and no material fraud on the Company has been noticed or
reported during the year.
b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT- 4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
c) As represented to us by the management, there are no whistle blower complaints
received by the company during the year.
xii The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the
Order is not applicable.
xiii In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013 with respect to applicable transactions with the related parties and
the details of related party transactions have been disclosed in the financial statements
as required by the applicable accounting standards.
xvi a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
b) We have considered, the internal audit reports of the company issued till date, for
the year under audit.
xv In our opinion during the year the Company has not entered into any non-cash
transactions with its Directors or persons connected with its directors and hence
provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi a) In our opinion, the Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a) and (b) of
the Order is not applicable.
b) In our opinion, there is no core investment company within the Group (as defined in
the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting
under clause 3(xvi)(c) and (d) of the Order is not applicable.
xvii The Company has not incurred cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
xviii There has been no resignation of the statutory auditors of the Company during the
year.
xix On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
xx a) There is no amount to be spent for other than ongoing projects towards Corporate
Social Responsibility (CSR). Hence, reporting under clause 3(xx)(a) of the Order is not
applicable for the year.
b) The Company does not have ongoing projects relating to CSR. Hence reporting under
clause 3(xx) (b) of the Order is not applicable.
For M. Anandam & Co.,
Chartered Accountants
(Firms Registration No. 000125S)
Sd/-
M.V.Ranganath
Partner
Membership No. 028031
UDIN: 23028031BGVWJS2537
Place: Hyderabad
Date: 27-05-2023
+91-9892691696
