Birla Tyres Ltd Directors Report.

To The Members of

BIRLA TYRES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of BIRLA TYRES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2021, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and 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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2021, and its loss, total comprehensive loss, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditors Responsibility 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 (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Material uncertainty related to Going Concern We draw attention to Note 39 to the financial statements regarding preparation of the financial statements of the Company on a going concern. The Company had incurred losses during the previous year and has continued to incur losses during the current year, primarily due to lower sales volume and finance cost which has resulted in erosion in net worth as at March 31,2021. The total debt of the Company including interest accrued as at March 31, 2021 amounts to Rs. 983.01 Crore. The net current liabilities as at March 31, 2021 were R 1,865.34 Crore. The Company has defaulted in repayment of term loan, letter of credit, working capital facilities, related interest payable to lenders aggregating to R 282.12 Crore and has not complied with certain financial debt covenants. These conditions, along with the outcome of other matters as set forth in Note 39, indicate existence of material uncertainty, which cast significant doubts about the Companys ability to continue as a going concern and consequently, the ability of the Company to realise its assets and discharge its liabilities in the normal course of business. The ability of the Company to continue as a going concern is solely dependent upon successful completion of loan resolution plan with the lenders and raising capital from investors which is not wholly in control of the Company. The management has prepared the financial statements on a going concern basis, based on their assessment of a successful outcome of the resolution plan and raising additional capital from investors and no adjustments have been made to the carrying value of assets and liabilities and their presentation/classification in the Balance Sheet.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, 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. In addition to the matter described in the Material Uncertainty Related to Going Concern section of our report, we have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditors Response
1 Tangible property, plant and equipment - Impairment assessment - Note 2.4 and Note 3 of the Financial Statements. Principal audit procedures performed
The Company has been making continuous losses in previous years and in the current year due to various internal and external factors. As at 31st March 2021, the written down value of the Property, Plant & Equipment amounted to R 1,251.47 crores [this includes R 752.34 crores for Capital work in progress, which is yet to commence commercial operations]. Considering the continuous losses incurred by the Company, the probability of impairment could be dependent on assumptions and methodology used for the fair valuation of the Property, Plant and Equipment by the management appointed external experts. Impairment assessment of the Property, Plant and Equipment is considered as a Key Audit Matter since there is significant management judgements and estimates involved in the impairment assessment, such as: Our audit procedures included validating the appropriateness and reasonableness of the fair valuation approach and assumptions used for determining the fair value of assets by external experts through performing the following:
• The determination of recoverable amount, being the higher of value-in-use and fair value less costs to dispose. • Obtained an understanding of controls instituted by the management to assess impairment indicators and perform impairment assessment.
• The methodology used in determination of the fair value of assets by management appointed external experts which is dependent on interpretation of the valuation standards and the assumptions used such as inflation, index rates, useful lives, salvage value. • Evaluated Design and Operating Effectiveness of the management controls over the impairment assessment process and review of fair valuation report obtained from the external experts.
• Evaluated the reasonableness of the fair valuation methodology used and the assumptions made for determining the fair value (such as useful life of the assets, salvage value) of the assets using our internal fair valuation specialists.
• Tested the mathematical accuracy and performed sensitivity analysis in order to assess the potential impact on the recoverable amount.
• Reconciled the carrying amount of the category wise assets as per the valuation report provided by the management and as per the books of account.
• Evaluated the adequacy of disclosures in the financial statements with respect to the impairment accounting policy of Property, Plant and equipment.
2 Assessment of going concern basis (as described in note 39 of the financial statements) Principal audit procedures performed
We performed the following principal audit procedures in relation to managements assessment of going concern:
As at March 31, 2021, the networth of the Company has been fully eroded. The Company has incurred net loss of R 287.63 crore during the year ended March 31, 2021 and current liabilities exceeds current assets by R 1,865.34 crore as on March 31, 2021. The Company has also defaulted in the payment of its borrowings and has overdue employee benefit liabilities and statutory liabilities as at March 31, 2021. The Company operation has been temporarily halted due to the reason stated above. These factors raises material uncertainty related to Going Concern assumption used by the Company in the preparation of the financial statements a) Evaluated design and implementation of and tested the control relating to managements assessment of appropriateness of going concern assumption.
The Company has prepared cash flow forecast for next twelve months which involves judgement and estimation around sources of funds to meet the financial obligations and cash flow requirements over the next twelve months. b) Evaluated of the appropriateness of identification of material uncertainties by the Management.
The Companys management is working on resolution plan with the lenders and is considering capital raising option. c) Analysed and discussed cash flow, EBITDA and other relevant forecasts with management.
We focused on this area due to the significance of management judgements adopted in assessing the material uncertainties related to going concern. d) Obtained and read, the minutes of the meeting held between the lenders and the Company and One time settlement proposal which is under discussion with the lenders.
e) Obtained and read a copy of the non-binding offer from the investor and evaluated if the terms stated in the non-binding offer were appropriately factored in the estimation of future cash flows.
f) Assessed the sensitivities and stress testing on the future cash flows that management has considered for the going concern assessment.
g) Evaluated the adequacy of disclosures in the financial statements with respect to the going concern assumptions and checked whether they were appropriately presented.

Information Other than the Financial Statements and Auditors Report Thereon

• The Companys Board of Directors is responsible for the other information. The other information comprises the Report of the Directors and the following Annexures thereto (namely Management Discussion and Analysis, Report on Corporate Governance, Annual Report on Corporate Social Responsibility Activities, Form AOC - 1, Conservation of energy, Technology Absorption and Exchange Earnings and Outgo), but does not include the financial statements and our auditors report thereon.

• 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 and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our 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.

Managements Responsibility for the Financial Statements

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 financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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 Responsibility 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:

• I dentify 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 financial 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 system 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 the 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 and the reports of the other auditors.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act.

e) The matter described in the Material uncertainty related to Going Concern section above, in our opinion, may have an adverse effect on the functioning of the Company.

f) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164(2) of the Act.

g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting.

h) 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 provisions of section 197 of the Act. i) 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 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditors Report) Order, 2016 ("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 Deloitte Haskins & Sells,
Chartered Accountants
(Firms Registration No.: 302009E)
Abhijit Bandyopadhyay
Partner
Place: Kolkata (Membership No.: 054785)
Date: 30th July, 2021 UDIN:21054785AAAAEC6875

ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1(h) under Report on Other Legal and Regulatory Requirements of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BIRLA TYRES LIMITED ("the Company") as of March 31,2021 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. 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 over financial reporting of the Company 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") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 over financial reporting was 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 over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 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 over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting 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 given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021, based on the criteria for internal financial control over financial reporting 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 Deloitte Haskins & Sells,
Chartered Accountants
(Firms Registration No.: 302009E)
Abhijit Bandyopadhyay
Partner
Place: Kolkata (Membership No.: 054785)
Date: 30th July, 2021 UDIN:21054785AAAAEC6875

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements section of our report of even date)

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

(b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed, transfer deed, conveyance deed, mutation of title papers and NCLT order approving the scheme of arrangement provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company.

Immovable properties of land and buildings whose title deeds have been pledged as security for loans, guarantees, etc., are held in the name of the Company based on the confirmations directly received by us from lenders.

With respect to the NCLT order approving the scheme of arrangement, the Company is in the process of getting the title deeds transferred in its name.

(ii) The inventory, except for goods-in-transit and stock lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained and in respect of goods-in-transit, subsequent goods receipts have been verified or confirmations have been obtained from the parties. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

(iv) The Company has not granted any loans, made investments or provided guarantees and hence reporting under clause (iv) of the CARO 2016 is not applicable.

(v) In our opinion and according to the information and explanations given to us, the Company has not complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to the deposits accepted in the nature of advance from customers lying unadjusted over one year.

(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost 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) According to the information and explanations given to us, in respect of statutory dues:

(a) The Company is not regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income-tax, Goods and Service tax (including interest thereon), Customs Duty, cess and other material statutory dues applicable to it to the appropriate authorities.

(b) There are undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income-tax, Goods and Service tax (including interest thereon), Customs Duty, cess and other material statutory dues in arrears as at March 31, 2021 for a period of more than six months from the date they became payable, the details of which are given below:

Name of the Statute Nature of Dues Amount (R In Crores) Period to which the Due date amount relates Date of Payment
The Central, State and Integrated Goods and Service Tax Act, 2017 Interest on unpaid amount of goods and service tax 0.01 2017-18 Not Applicable Not paid till date
The Central, State and Integrated Goods and Service Tax Act, 2017 Interest on unpaid amount of goods and service tax 4.01 2018 - 19 Not Applicable Not paid till date
The Central, State and Integrated Goods and Service Tax Act, 2017 Unpaid amount of goods and service tax 10.27 2019 - 20 Not Applicable R 0.05 Crore was paid on 15 May, 2021 R 0.09 Crore was paid on 14 June, 2021 R 0.71 Crore was paid on 28 June, 2021
The Central, State and Integrated Goods and Service Tax Act, 2017 Interest on unpaid amount of goods and service tax 7.92 2019 - 20 Not Applicable Not paid till date
The Central, State and Integrated Goods and Service Tax Act, 2017 Unpaid amount of goods and service tax 5.94 2020-21 Not Applicable Not paid till date
The Central, State and Integrated Goods and Service Tax Act, 2017 Interest on unpaid amount of goods and service tax 0.81 2020-21 Not Applicable Not paid till date
Income Tax Act, 1961 Tax Deducted at Source 3.45 2020-21 Not Applicable Not paid till date
Employees Provident Provident Fund 3.40 2020-21 Not Applicable Not paid till date

(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on March 31,2021 on account of disputes are given below:

Name of the Statute Nature of Dues Forum where dispute is pending Period Net Amount (R In Crores) Amount Deposited (R In Crores)
Bihar VAT Act, 2005 Sales Tax Commercial Tax Officer 2013-14 0.65 -
Central Excise Act, 1944 Central Excise Assistant Commissioner 1995-96, 1996-97, 2010-11, Apr. 98 - May 98, June 98 to Aug. 99, 2003-04, April - Dec. 2006, Jan. 93 - Jul. 94, Nov. 99 to Feb. 99 5.44 0.79
Central Excise Act, 1944 Central Excise CESTAT, Kolkata 2010-11,2013-15, 2000-02, Apr.15 to Sept. 15, Jan. 07 to Feb. 09, Mar. 2009 to Mar. 2010, Feb. 2003 to Dec. 2006, Apr. 2002 -Jan. 2002, 2004-05, Dec. 1999 - Jan .1999, Sept. - Dec. 1997, Aug. 1998, Sept. 1998, Oct. 15 to Mar. 16, April-11 to Mar. 13 97.03 9.17
Central Excise Act, 1944 Central Excise Commissioner 1997-2002, 2007-08, 201215 12.63 -
Central Excise Act, 1944 Central Excise Commissioner (Appeals) 2005-06, Apr16 to Jun17 8.73 0.33
Central Sales Tax Act, 1956 Sales Tax High Court 2009-10 2.05 -
Central Sales Tax Act, 1956 Sales Tax Sales Tax Tribunal 2002-03, 2004-05, 2007-11 13.30 7.41
Central Sales Tax Act, 1956 Sales Tax Supreme Court 2003-04 1.83 -
Central Sales Tax Act, 1956 Sales Tax Commercial Tax Officer 2013-14 0.06 -
Central Sales Tax Act, 1956 Sales Tax Deputy Commissioner 2012-17 0.87 0.28
Central Sales Tax Act, 1956 Sales Tax Appeal to be filed 2016-18 4.64 -
Central Sales Tax Act, 1956 Sales Tax High Court 2011-12 0.10 0.13
Central Sales Tax Act, 1956 Sales Tax Revisional Board 2008-09, 2010-11 0.07 -
Uttar Pradesh Trade Tax Act, 1948- CST Demand Sales Tax Addition Commissioner (Appeals) 2005-07 0.01 0.00
Customs Act, 1962 Customs Assistant Commissioner of Customs Jul-08 to Aug-09 0.02
Customs Act, 1962 Customs CESTAT, Mumbai 2014-15 1.44 1.44
Gujarat VAT Act,2003 Sales Tax Commercial Tax Officer 2013-14 0.58 0.15
Gujarat VAT Act,2003 Sales Tax Joint Commissioner 2015-16 1.95
Jharkhand Vat Act, 2005 Sales Tax Commissioner 2010-11, 2012-13 0.73 0.14
Jharkhand Vat Act, 2005 Sales Tax Tribunal 2010-11 0.14 -
Kerala VAT Act.2003 Sales Tax Deputy Commissioner 2011-12 2.14 -
Odisha Value Added Tax Act, 2004 Sales Tax Tribunal Apr-16 to Jun-17 0.42 0.08
Odisha Value Added Tax Act, 2004 Sales Tax High Court 2012-14 0.92 -
Odisha Value Added Tax Act, 2004 Sales Tax Sales Tax Tribunal 2005-06, 2008-10, Oct-15 to Mar-16 5.67 2.75
The Central Goods and Service Tax Act, 2017 Goods & Service Tax Additional Commissioner 2016-17 to June 17 12.83 -
Uttar Pradesh Trade Tax Act, 1948 Sales Tax Addition Commissioner (Appeals) 2006-07 0.09 0.02
Uttar Pradesh Value Added Tax Act, 2008 Sales Tax Addition Commissioner (Appeals) 2010-12, 2013-14 0.46 0.19
West Bengal VAT Act, 2003 Sales Tax Revisional Board 2007-11 8.69 -
Uttar Pradesh Value Added Tax Act, 2008 Sales Tax Appeal to be filed 2016-17 8.24 -
Jammu and Kashmir Value Added Tax (VAT) Act, 2005 Sales Tax Appeal to be filed 2017-18 0.12
Jharkhand Value Added Tax Act, 2005 Sales Tax Appeal to be filed 2016-17 0.21 -
Grand Total 192.06 22.89

(viii) In our opinion and according to the information and explanations given to us, the Company has defaulted in the repayment of loans or borrowings to financial institutions and banks, details of which has been given as under. The Company does not have any loans or borrowings from government and has not issued any debentures.

Particulars Amount of default as at March 31, 2021 (Rin Crores)* Period of Default Nature of Financial Obligation
Dues to Banks:
Axis Bank 32.73 October20 to March21 Interest on Term Loan
Axis Bank 0.02 October20 to March21 Interest on Working Capital Loan
Karur Vyasya Bank 2.99 February20, October20 to March21 Interest on Term Loan
Lakshmi Vilas Bank 2.61 February20, September20 to March21 Interest on Term Loan
Punjab National Bank 1.11 February20, September20 to March21 Interest on Working Capital Loan
State Bank of India 11.17 March20 to March21 Interest on Working Capital Loan
South Indian Bank 10.54 February20, September20 to March21 Interest on Term Loan
South Indian Bank 1.30 February20, September20 to March21 Interest on Working Capital Loan
State Bank of India 3.18 September20 to March21 Interest on CC
HDFC Bank 0.13 March21 Interest on CC
Axis Bank - Cash Credit Facility 0.15 February21-March21 Interest on CC
ICICI Bank - Cash Credit Facility 0.57 January21 to March21 Interest on CC
Lakshmi Vilas Bank - Cash Credit Facility 5.27 January21 to March21 Interest on CC
Punjab National Bank - Cash Credit Facility 0.48 January21 to March21 Interest on CC
South Indian Bank - Cash Credit Facility 0.29 January21 to March21 Interest on CC
Yes Bank 0.08 January21 to February21 Interest on Working Capital Loan
Axis Bank 18.46 Oct2020 & Jan21 Principal
Karur Vyasya Bank 1.35 Oct2020 & Jan21 Principal
Lakshmi Vilas Bank 1.35 Oct2020 & Jan21 Principal
South Indian Bank 5.81 Oct2020 & Jan21 Principal
State Bank of India 80.99 March 21 Working Capital Loan in excess of Drawing Power
Axis Bank 7.05 March 21 Working Capital Loan in excess of Drawing Power
HDFC Bank 14.54 March 21 Working Capital Loan in excess of Drawing Power
ICICI Bank 7.37 March 21 Working Capital Loan in excess of Drawing Power
Lakshmi Vilas Bank 18.43 March 21 Working Capital Loan in excess of Drawing Power
Yes Bank 5.85 March 21 Working Capital Loan in excess of Drawing Power
Punjab National Bank 18.24 March 21 Working Capital Loan in excess of Drawing Power
South Indian Bank 16.42 March 21 Working Capital Loan in excess of Drawing Power
ICICI Bank 2.79 March 21 Letter of Credit

 

Dues to Financial Institutions:
Particulars Amount of default as at March 31, 2021 (Rin Crores)* Period of Default Nature of Financial Obligation
West Bengal Infrastructure Development Financial Corporation Limited 6.12 September 20 to March 21 Interest on Term Loan
West Bengal Infrastructure Development Financial Corporation Limited 3.38 Sept. 20, Dec. 20 & Mar. 21 Principal
West Bengal Infrastructure Development Financial Corporation Limited 1.35 Oct. 20 & Jan. 21 Principal
Total 282.12

* The amount of default has not been repaid subsequently till the date of this audit report.

(ix) The Company has not raised moneys by way of initial public offer or further public offer. In our opinion and according to the information and explanations given to us, the term loans taken have been applied by the Company during the year for the purposes for which they were raised.

(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For Deloitte Haskins & Sells,
Chartered Accountants
(Firms Registration No.: 302009E)
Abhijit Bandyopadhyay
Partner
Place: Kolkata (Membership No.: 054785)
Date: 30th July, 2021 UDIN: 21054785AAAAEC6875