bata india ltd Auditors report

To the Members of Bata India Limited

Report on the Audit of the Standalone financial

statements

Opinion

1. We have audited the accompanying standalone financial statements of Bata India Limited ("the Company"), which comprise the Standalone Balance Sheet as at March 31, 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("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 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 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 Act 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

4. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
Appropriateness of Revenue recognition	We performed the following audit procedures in respect of revenue recognition:
See note 1(h) and note 18 to the standalone financial statements
	• Evaluated the design and implementation of key internal financial controls with respect to the revenue recognition and tested the operating effectiveness of such controls including those related to the reconciliation of sales records to cash / credit card / online receipts, preparation, posting and approval of journal entries based on selected transactions.
Revenue from the sale of goods is recognised when control in goods is transferred to the customer and is measured net of rebates, discounts and returns.
A substantial part of Companys revenue relates to retail sales through a large number of Company- owned retail outlets across the country and comprises high volume of transactions, which increases the risk of revenue being recognised inappropriately. A robust process for recording sales revenue is critical in order to mitigate risk of error and fraud.
	• Assessed the appropriateness of the accounting policy for revenue recognition in accordance with the applicable accounting standards.
In addition to the Company-owned retail outlets, the Company generates revenue through non-retail business and franchisee retail outlets.
Key audit matter	How our audit addressed the key audit matter
Recognition of revenue requires determination of the net selling price after considering forecast of sales returns and discounts. The estimate of sales returns and discounts depends on the Companys return policy, contract terms, forecast of sales volumes and past history of quantum of returns.	• In relation to the revenue from Company-owned retail outlets, tested sales during the year on a sample basis, by examining the underlying documents and agreeing them with the cash / credit card / online receipts and bank deposits.
	• In relation to the revenue from non-retail outlets and franchisee retail outlets, tested sale transactions during the year on a sample basis, by examining the underlying documents such as sales invoice, customer contracts, shipping/despatch documents along with proof of delivery, as applicable and receipt against such invoice to the bank account of the Company.
Considering the above-mentioned factors, appropriateness of revenue recognition has been considered as a key audit matter.
	• Tested on a sample basis, the periodic reconciliation of the Company-owned retail outlet sales recognised during the period with the underlying collections made by the Company and sales as per indirect tax records.
	• Evaluated the contract terms for a sample of customer contracts to assess the reasonableness of the provision for discounts and returns and determine whether the same is in line with terms of the contract.
	• Evaluated the Companys policy for returns and performed an analysis of trend for sales return in case of the digital multi-channel business and tested appropriateness of the provision for sales return as at the year-end.
	• Tested material non-standard manual journal entries impacting revenue in the year by understanding the rationale for the journal and agreeing to supporting documentation in order to confirm that the adjustments to revenue from material manual journal entries had been appropriately recognised.
	Based on above procedures, we did not identify any significant exceptions in the recognition of revenue by the Company.
Key audit matter	How our audit addressed the key audit matter
Determination of Net realisable value (NRV) of Inventories of finished goods	We performed the following audit procedures in relation to the determination of NRV of finished goods:
See note 1 (g) and note 8 to the standalone financial statements.
	• Evaluated the design and implementation of key internal financial controls with respect to determination of NRV for slow and non-moving inventory as well as inventory with low or negative gross margins and tested the operating effectiveness of such controls on selected samples of transactions.
The Companys inventory of finished goods is spread across multiple locations comprising a large number of retail stores, depots and factories across the country, which are counted by the Company on a cyclical basis. The Companys goods (footwear and accessories) are subject to changing consumer demands and fashion trends and the net realisable value is determined by the Company based on significant management judgement, various assumptions and estimates (including those related to obsolescence of slow and non-moving inventory as well as inventory with low or negative gross margins) as at the end of the reporting period. In view of the involvement of significant management judgement and significance of the carrying value of inventory, this has been determined as a key audit matter.
	• Assessed the appropriateness of the accounting policy for inventory valuation as per the applicable accounting standards.
	• Observed the managements physical verification of inventory of finished goods on a test check basis at periodic interval, to assess the existence and condition of the inventory.
	• On a sample basis, tested whether items in the inventory ageing report prepared by the Company were classified within the appropriate ageing bracket.
	• Assessed the appropriateness of the methodology adopted and assumptions underlying the managements assessment of the NRV of inventories of finished goods.
	• Tested, on a sample basis, the net realisable value of slow-moving and obsolete inventories and those with low or negative gross margins as calculated by the Company by comparing the carrying value with their subsequent selling prices and costs to sell subsequent to the year-end.
	Based on the above procedures performed, we considered the Companys determination of NRV of finished goods to be reasonable.

Other Information

5. The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the standalone financial statements and our auditors report thereon.

Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this 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 for the standalone financial statements

6. The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the 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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

7. In preparing the standalone 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 standalone financial statements

8. Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial statements.

9. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone 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 Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to standalone 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 standalone 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

10. 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.

11. 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.

12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone 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.

Other Matter

13. The standalone financial statements of the Company for the year ended March 31, 2022, were audited by another firm of chartered accountants under the Act who, vide their report dated May 25, 2022 expressed an unmodified opinion on those standalone financial statements.

Report on other legal and regulatory requirements

14. As required by the Companies (Auditors 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 matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

15. 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

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

(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 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 Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), 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 standalone financial statements - Refer Note 29 to the standalone 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year.

(iv) (a) The management has represented

that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds 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(s) or entity(ies), including foreign entities ("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 (Refer Note 39 to the standalone financial statements);

(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("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 (Refer Note 39 to the standalone financial statements); and

(c) Based on such audit procedures that we 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) contain any material misstatement.

(v) The dividend declared / paid during the year by the Company is in compliance with Section 123 of the Act.

(vi) As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which provides for maintaining books of account in accounting software having a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled, is applicable to the Company only with effect from financial year beginning April 1, 2023, the reporting under clause (g) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), is currently not applicable.

16. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

Annexure A to Independent Auditors Report

Referred to in paragraph 15(f) of the Independent Auditors Report of even date to the members of Bata India Limited on the Standalone Financial Statements for the year ended March 31, 2023

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

1. We have audited the internal financial controls with reference to standalone financial statements of Bata India Limited ("the Company") as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial

Controls

2. 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 ("the Guidance Note") 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 Act.

Auditors Responsibility

3. Our responsibility is to express an opinion on the Companys internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act 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 ICAI. 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 standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone 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 judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

5. 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 standalone financial statements.

Meaning of Internal Financial Controls with

reference to standalone financial statements

6. A companys internal financial controls with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial controls with reference to standalone 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 standalone 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 standalone financial statements.

Inherent Limitations of Internal Financial Controls

with reference to standalone financial statements

7. Because of the inherent limitations of internal financial controls with reference to standalone 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 standalone financial statements to future periods are subject to the risk that the internal financial controls with reference to standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 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 issued by ICAI.

Annexure B to Independent Auditors Report

Referred to in paragraph 14 of the Independent Auditors Report of even date to the members of Bata India Limited on the Standalone Financial Statements as of and for the year ended March 31, 2023

i. (a) (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of Property, Plant and Equipment.

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

(b) The Property, Plant and Equipment are physically verified by the Management according to a phased programme designed to cover all the items over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the Property, Plant and Equipment has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.

(c) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee), as disclosed in Note 39 to the standalone financial statements, are held in the name of the Company, except for the following:

Description of property	Gross carrying value (Rs in millions)	Held in the name of	Whether promoter, director or their relative or employee	Period held (i.e. date of capitalisation provided in range)	Reason for not being held in the name of the Company
Freehold land: - Faridabad - Batanagar - Mokamehghat	202.34	Bata Shoe Company Private Limited/ Bata Shoe Company Limited	No	June,1945 to March, 1961	Held in the erstwhile name of the Company
Buildings: -Poona Cantt	1.80	Bata Shoe Company Private Limited	No	December, 1961	Held in the erstwhile 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 the valuation 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 and Equipment (including Right of Use assets) or intangible assets does not arise.

(e) Based on the information and explanations furnished to us, no proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder, and therefore the question of our commenting on whether the

Company has appropriately disclosed the details in its standalone financial statements does not arise.

ii. (a) The physical verification of inventory excluding goods-in-transit and stocks with third parties has been conducted at reasonable intervals by the Management during the year and, in our opinion, the coverage and procedure of such verification by Management is appropriate. In respect of inventory lying with third parties, these have substantially been confirmed by them and for goods-in-transit subsequent evidence of receipts has been linked with inventory records. The discrepancies noticed on physical verification of inventory as compared to book records were not 10% or more in aggregate for each class of inventory noticed on physical verification of inventory by Management, and have been appropriately dealt with in the books of account.

(b) During the year, the Company has been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, from banks on the basis of security of current assets. However, the Company has obtained waiver for filing of quarterly statements or return in respect of such working capital limits and accordingly, the question of our commenting on whether these returns or statements are in agreement with the unaudited books of account of the Company does not arise.

(Also refer note 39 to the standalone financial statements)

iii. The Company has not made any investments, granted secured/ unsecured loans/advances in nature of loans, or stood guarantee, or provided security to any parties. Therefore, the reporting under clause 3(iii), (iii)(a), (iii)(b),(iii)(c), (iii)(d), (iii)(e) and (iii)(f) of the Order are not applicable to the Company.

iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made by it. Further, the Company has not provided any guarantee or security specified under Section 185 and 186 of the Companies Act, 2013.

v. The Company has not accepted any deposits or amounts which are deemed to be deposits referred in Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.

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

vii. (a) According to the information and

explanations given to us and the records of the Company examined by us, in our opinion, undisputed statutory dues in respect of professional tax has not been regularly deposited with the appropriate authorities and there have been significant delays in a large number of cases, also the Company is generally regular in depositing undisputed statutory dues in respect of duty of customs and income tax, though there has been a slight delay in a few cases and the Company is regular in depositing undisputed statutory dues including provident fund, employees state insurance, cess, goods and services tax and other statutory dues, as applicable, with the appropriate authorities.

The extent of the arrears of statutory dues outstanding as at March 31, 2023, for a period of more than six months from the date they became payable are as follows:

Name of the statute	Nature of dues		Amount (Rs. in millions)			Period to which the amount relates		Due date	Date of Subsequent Payment
Kerala Municipality (Profession Tax) Rules, 2005	Professional Tax		1.09			April 2019 to September 2022		Various	April 5, 2023 April 6, 2023 April 7, 2023 April 10, 2023
Kerala Municipality (Profession Tax) Rules, 2005	Professional Tax		0.01			April 2019 to September 2022		Various	Not paid
The Tamil Nadu Municipal Laws (Second Amendment) Act, 1998	Professional Tax		0.45			October 2017 to March 2022		Various	April 11, 2023 April 27, 2023 April 28, 2023 April 29, 2023 May 11, 2023
The Tamil Nadu Municipal Laws (Second Amendment) Act, 1998	Professional Tax		0.02			April 2019 to March 2022		Various	Not paid
Name of the statute		Nature of dues		Amount (Rs. in millions)	Period to which the amount relates		Due date			Date of Subsequent Payment
The Gujarat Panchayats, Municipal Corporations And State Tax On Professions, Traders, Callings And Employments Act, 1976		Professional Tax		0.01	January 2020 to August 2022		Various			Not paid
The Gujarat Labour Welfare Fund Act, 1953		Labour Welfare Fund		0.00*	January 2021 to June 2022		Various			Not paid
The Maharashtra Labour Welfare Fund Act, 1953		Labour Welfare Fund		0.01	January 2021 to June 2022		Various			Not paid
The Chhattisgarh Shram Kalyan Nidhi Adhiniyam, 1982		Labour Welfare Fund		0.00*	January 2021 to June 2022		Various			Not paid
The Goa Labour Welfare Fund Act, 1986		Labour Welfare Fund		0.00*	January 2021 to June 2022		Various			Not paid
The Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982		Labour Welfare Fund		0.00*	January 2021 to June 2022		Various			Not paid

*0.00 represents amount below rounding off norms

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no statutory dues of professional tax, duty of customs, and cess which have not been deposited on account of any dispute. The particulars of other statutory dues referred to in sub-clause (a) as at March 31, 2023 which have not been deposited on account of a dispute, are as follows:

S. No.

Name of Statute

Nature of dues

Amount of demand (Rs in millions)

Period

Forum where dispute is pending

1

Central Excise Act,1944

Duty demanded for sale of footwear at Domestic Tariff Area

6.33

March 1997 to February 1999

CESTAT- Chennai*

2

Customs Act,1942

Wrong availment of concessional rate of customs duty etc.

49.95

July 1998 to April 2003

CESTAT - Kolkata*

3

Finance Act,1994

Disallowance of service tax input credit on input service availed for outward transportation

8.25

April 2006 to December 2010

CESTAT - Kolkata*

4

Kerala General Sales tax Act, 1963

Revenue recovery against non-payment of demand in assessment

-

Assessment Year ("AY") 1994-1995, 1998-1999 and 2000-2001

HIGH COURT - Kerala*

5

Haryana General Sales tax Act, 1963

Exchange of raw material on loan from one manufacturer to another manufacturer on returnable basis

-

AY 1984-1985

HIGH COURT - Punjab & Haryana*

S. No.

Name of Statute

Nature of dues

Amount of demand (Rs in millions)

Period

Forum where dispute is pending

6

The Kerala Value Added Tax Rules, 2005

Assessment u/s 25(1) of the KVAT Act, 2003

0.22

2015-2016

Deputy Commissioner - Special Circle*

7

Bihar Value Added Tax, 2005

Unutilized e-way bills

178.48

April 2014 to March 2015

Special Commissioner of State tax - Bihar*

8

Bihar Value Added Tax, 2005

Unutilized e-way bills

129.01

April 2015 to March 2016

Special Commissioner of State tax - Bihar*

9

Madhya Pradesh Vat Act, 2002

Levy of Interest on delay in payment of entry tax

1.47

April 2010 to March 2011

Commissioner (Appeals) - Madhya Pradesh*

10

CGST Act, 2017 and BGST Act, 2017

Recovery of input tax credit on account of ITC mismatch.

5.71

February 2020 to March 2021

Joint Commissioner (Appeals)- Bihar*

11

The Bihar Value Added Tax Act, 2005

Stock transfer wrongly considered as sale

21.30

AY 2005-2006

HIGH COURT - PATNA*

12

Finance Act,1994

ITC denied on invoices of ISD units of the Company

11.20

September 2015 to April 2016

CESTAT - Chennai*

13

Finance Act,1994

Service tax demand on reverse charge basis.

2.92

April 2013 to March 2015

Commissioner of GST and Central Excise (Appeals 1) - Salem*

14

Jharkhand Value Added Tax Act, 2005

Disallowance of discount/ rebates and pending statutory form

9.72

2013- 14 and 2014- 15

Deputy Commissioner of Commercial Taxes - Jharkhand

15

Employees State Insurance Act, 1948

Recovery of ESI dues

15.09

August 2007 to February 2009

Employees Insurance Court, West Bengal*

16

Employees State Insurance Act, 1948

Recovery of ESI dues

0.17

December 2008 to March 2009

Employees State Insurance Court, West Bengal

17

Employees State Insurance Act, 1948

Recovery of ESI dues

2.03

April 2009 to March 2010

Employees State Insurance Court, West Bengal

18

Employees Provident Funds and Misc. Provisions Act 1952

Recovery of PF dues

0.52

April 1996 to February 2015

Central Government Industrial Tribunal Cum Labour Court, Delhi

S. No.

Name of Statute

Nature of dues

Amount of demand (Rs in millions)

Period

Forum where dispute is pending

19

Employees State Insurance Act, 1948

Recovery of ESI dues

1.75

January 1985 to December 1990

Supreme Court of India

20

Employees State Insurance Act, 1948

Recovery of ESI dues

2.84

March 2007 to November 2008

High Court, Bengaluru

21

Income Tax Act, 1961

Additions in relation to transfer pricing ("TP") on TSA fees

-

AY 2002-2003

High Court, Kolkata#*

22

Income Tax Act, 1961

Additions in relation to TP on TSA fees

-

AY 2003-2004

High Court, Kolkata#*

23

Income Tax Act, 1961

Capital gain computation

-

AY 2007-2008

High Court, Kolkata#*

24

Income Tax Act, 1961

Additions in relation to TP on TSA fees,43B, warranty claim, Depreciation on river bank embankment

-

AY 2009-2010

Income Tax Appellate Tribunal(appeals), Kolkata#*

25

Income Tax Act, 1961

Additions in relation to Depreciation on river bank embankment, Warranty claim, Deduction under section 43B, Lease rental, Transfer pricing on TSA fees

-

AY 2010-2011

Income Tax Appellate Tribunal(appeals), Kolkata#*

26

Income Tax Act, 1961

Additions in relation to Expenses in relation to Exempt Income

-

AY 2010-2011

Income Tax Appellate Tribunal(appeals), Kolkata*

27

Income Tax Act, 1961

Additions in relation to TP on TSA Fee, Warranty provision, Lease rental

-

AY 2011-2012

Income Tax Appellate Tribunal(appeals), Kolkata#*

28

Income Tax Act, 1961

Additions in relation to Employee contribution to ESIC, lease rental

-

AY 2012-2013

Income Tax Appellate Tribunal(appeals), Kolkata#*

29

Income Tax Act, 1961

Additions in relation to TP on TSA Fee, lease rentals

-

AY 2013-2014

Income Tax Appellate Tribunal(appeals), Kolkata#*

30

Income Tax Act, 1961

Additions in relation to Warranty provision, lease rentals

-

AY 2014-2015

Income Tax Appellate Tribunal(appeals), Kolkata#*

31

Income Tax Act, 1961

Additions in relation to ERP expense written off

-

AY 2014-2015

Income Tax Appellate Tribunal(appeals), Kolkata*

32

Income Tax Act, 1961

Additions in relation to TP adjustment on Royalty payment, warranty, lease rental expense

-

AY 2018-2019

Commissioner of Income Tax (Appeals), Kolkata*

* Amount as per demand orders including interest and penalty, wherever indicated in the order and is net of amount deposited.

# Represents cases where appeal has been preferred by the department.

viii. According to the information and explanations given to us and the records of the Company examined by us, there are no transactions in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

ix. (a) As the Company did not have any loans

or other borrowings from any lender during the year, the reporting under clause 3(ix)(a) of the Order is not applicable to the Company.

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

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

(d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the standalone financial statements of the Company, the Company has not raised funds on short term basis.

(e) According to the information and explanations given to us and on an overall examination of the standalone financial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries. Further, the Company doesnt hold any investment in associates or joint ventures as defined under the Act.

(f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries. Further, the Company doesnt hold any investment in associates or joint ventures as defined under the Act.

x. (a) The Company has not raised any

money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, the 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 private placement of shares or fully or partially or optionally convertible debentures during the year. Accordingly, the reporting under clause 3(x)(b) of the Order is not applicable to the Company.

xi. (a) During the course of our examination of

the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company, noticed or reported 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 of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, a report under Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 was not required to be filed with the Central Government. Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the Company.

(c) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, the Company has received whistle-blower complaints during the year, which have been considered by us for any bearing on our audit and reporting under this clause.

xii. As the Company is not a Nidhi Company and

the Nidhi Rules, 2014 are not applicable to it,

the reporting under clause 3(xii) of the Order is not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the standalone financial statements as required under Indian Accounting Standard 24 "Related Party Disclosures" specified under Section 133 of the Act.

xiv. (a) In our opinion and according to the

information and explanation given to us, the Company has an internal audit system commensurate with the size and nature of its business.

(b) The reports of the Internal Auditor for the period under audit have been considered by us.

xv. The Company has not entered into any noncash transactions with its directors or persons connected with him. Accordingly, the reporting on compliance with the provisions of Section 192 of the Act under clause 3(xv) of the Order is not applicable to the Company.

xvi. (a) The Company is not required to be

registered under Section 45-IA of 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 nonbanking financial / housing finance activities during the year. Accordingly, the reporting under clause 3(xvi)(b) of the Order is not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, the reporting under clause 3(xvi)(c) of the Order is not applicable to the Company.

(d) Based on the information and explanations provided by the management of the Company, the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) does not have any CICs, which are

part of the Group. We have not, however, separately evaluated whether the information provided by the management is accurate and complete. Accordingly, the reporting under clause 3(xvi)(d) of the Order is not applicable to the Company.

xvii. The Company has not incurred any cash losses in the financial year or in the immediately preceding financial year.

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

xix. According to the information and explanations

given to us and on the basis of the financial ratios (Also refer Note 36 to the standalone financial statements), ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, 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 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) In respect of other than ongoing projects,

as at balance sheet date, the Company does not have any amount remaining unspent under Section 135(5) of the Act. Accordingly, reporting under clause 3(xx) (a) of the Order is not applicable.

(b) The Company has transferred the amount of Corporate Social Responsibility remaining unspent under sub-section

(5) of Section 135 of the Act pursuant to ongoing projects to a special account in compliance with the provision of subsection (6) of Section 135 of the Act. (Also refer Note 32 to the standalone financial statements).

xxi. The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements. Accordingly, no comment in respect of the said clause has been included in this report.