TO THE MEMBERS OF M/s SESHASAYEE PAPER AND BOARDS LIMITED
Report on the audit of Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of
SESHASAYEE PAPER AND BOARDS LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31,2023 and the Statement of Profit and Loss (including Other
Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flows for
the year then ended and Notes to the Financial Statements, including a summary of the
Significant Accounting Policies and other explanatory information hereinafter referred to
as Financial Statements
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 ("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 March 31, 2023,
the Profit (Including Other Comprehensive Income), the Statement of changes in Equity, and
its cash flows 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 (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 j
udgement, 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 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 Matters |
Response to Key Audit Matters & Conclusion |
| 11. As on 31st March 2023, the company carries cash and bank
balances of Rs 558.17 crores (Excluding unpaid dividend). We j considered the amount of
cash and bank balance as a key audit matter given the relative size of the balance in the
financial statements. |
We have verified and tested the design and operating
effectiveness of controls with regard to maintenance of cash balances and preparation of
bank reconciliation statements. |
|
We have verified the cash balance at the end i of the year as
well as the bank reconciliation statements. |
|
We have also received confirmation of balances from banks
directly which corroborates with the results of our audit procedures |
| 1 2. Inventory at the reporting date Rs 240.89 crores
includes Rs 18.44 crores pulp (raw materials) and coal Rs 50.40 crores (chemicals Fuels
and others) lying with the company?s agents in Tuticorin Port. This being a
significant balance to the total inventories held is considered a key audit matter |
We have understood and verified design and operating
effectiveness of the controls established by the management with respect to j the receipt
and issue of the said materials. |
| j 3. Other financial assets includes Rs 105 crores deposited
with Resolution Professional under E-Auction Bid in full j for Purchase of M/s.
Servalakshmi Paper Ltd., corporate debtor, on a Going Concern basis in liquidation. The
application filed j by the company for confirmation of the sale and handing over
possession has been challenged before the NCLT, Chennai Bench and the Hon?ble
Tribunal reserved the matter for orders. |
We have also verified the relevant records for the receipt
and issue of the materials and the confirmation received from the agents for the i
quantity of the inventories held at the year end. |
|
We have also cross-checked the quantities by i visual and
measurement checks conducted by our consultant which corroborates with the quantity
confirmed by the agents |
|
We have verified the resolution passed by j the Board of
Directors for Investments and participation in the E-Auction for acquisition of
M/s.Servalakshmi Paper Ltd., corporate debtor in liquidation. |
|
We have verified the E-Auction documents, i Receipts /
Confirmation for the deposit of i Rs.105 crores, Petition for confirmation of the sale by
NCLT and the papers relating to the i further proceedings before NCLT. |
|
- In our opinion the company has complied with the provision
of the Sec.185 of the Companies i Act, 2013 and the deposit is confirmed and subject to
NCLT Orders |
Information Other Than the Financial Statements and Auditor?s
Report Thereon
The Company?s Board of Directors is responsible for the other
information. The other information comprises the information included in the Directors
Report and Business Responsibility Report, but does not include the standalone financial
statements and our auditor?s 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 during the course of our audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that if there is a
material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard..
J
Management Responsibility and Those Charged with Governance for the
Standalone Financial Statements
The Company?s 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 Standalone Financial Statements that give a true and fair view of
the Financial Position, Financial Performance (including Other Comprehensive Income),
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 Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the Financial Statements, the Board of Directors is
responsible for assessing the Company?s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the
Company?s 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:
0 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.
0 Obtain an understanding of internal controls 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 system in
place and the operating effectiveness of such controls.
0 Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
J
0 Conclude on the appropriateness of management?s 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
Company?s 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.
0 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 Standalone
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.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors? Report) Order, 2020
("the Order") issued by the Central Government of India in terms of Section 143
(11) of the Companies Act, 2013, we give in Annexure "B" a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. 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), the Statement of Changes in Equity and the Cash Flow
Statement 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 Indian AccountingStandards prescribed under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014.
(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.
y
(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 provisions 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 36 (a) to the Financial
Statement
ii. The Company did not have any longterm 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
iv. (a) The management has represented
that, to the best of the knowledge and belief,as disclosed in the note
35E(b)(i) to the financial statements 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 persons or entities, 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.
(b) The management has represented that, to the best of its knowledge
and belief, as disclosed in the note 35E(b)(ii) to financial statements no funds have been
received by the company from any persons or entities, including foreign entities
("funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the division 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; and
(c) Based on such audit procedures we have considered reasonable and
appropriate in the circumstances, nothing has come to the notice that has caused us to
believe that the representations under sub-clause
(i) and (ii) of Rule 11 (e) contain any material mis-statement.
v. (a) The final dividend paid by the company during the year in
respect of the same declared for y
the previous year is in accordance with Section 123 of the Act.
(b) As stated in the Note 37 E to the financial statements, 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 dividend proposed
is in accordance with Section 123 of the Act as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for
maintaining books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable to the Company with effect from April 1,
2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules,
2014 is not applicable for the financial year ended March 31,2023.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR?S REPORT OF EVEN
DATE ON THE
STANDALONE IND AS FINANCIAL STATEMENTS OF SESHASAYEE PAPER AND BOARDS
LIMITED.
Report on the Internal financial Controls 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 the
financial statements of SESHASAYEE PAPER AND BOARDS LIMITED ("the Company") as
of March 31, 2023 in conjunction with our audit of the Standalone Ind AS Financial
Statements of the Company for the year ended on that date.
Management?s Responsibility for Internal financial Controls
The Company?s 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 Company?s 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 Company?s
Internal Financial Controls with reference to the 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 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 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 with reference to the financial statements
of the Company and their operating effectiveness. Our audit of Internal Financial Controls
with reference to the financial statements of the Company 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 Company?s Internal
Financial Controls System over Financial Reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company?s Internal Financial Controls with reference to the
financial statements of the Company 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 Company?s Internal Financial Control over Financial Reporting includes
those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the
company;
(ii) 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
(iii) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use or disposition of the Company?s assets
that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to
the financial statements
Because of the inherent limitations of Internal Financial Controls with
reference to the financial statements of the Company, 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 the financial statements of the Company to
future periods are subject to the risk that the Internal Financial Controls with reference
to the financial statements of the Company 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, the Company has, in all material respects, an adequate
Internal Financial Controls with reference to the financial statements of the Company and
such Internal Financial Controls with reference to the financial statements of the Company
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 on Audit of Internal Financial
Controls Over Financial Reporting issued by ICAI.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR?S REPORT OF EVEN
DATE ON THE
STANDALONE FINANCIAL STATEMENTS OF SESHASAYEE PAPER AND BOARDS LIMITED.
The Annexure referred to in Paragraph 2 under the heading ‘Report
on Other Legal and Regulatory Requirements? of our Report of even date:
In terms of the information and explanations sought by us and provided
to us by the Company and the books of account and records examined by us in the normal
course of audit and to the best of knowledge and belief we state that:
(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) These Property, Plant and Equipment have been physically verified
by the Management at the year end and no material discrepancies were 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
favour of the lessee) disclosed in the financial statements are held in the name of the
Company.
(d) The company has not revalued its Property, Plant and Equipment
(including Right of Use assets) or intangible assets or both during the year.
(e) No proceedings that have been initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made thereunder.
(ii) (a) The Management has conducted physical
verification of inventory at reasonable intervals and in our opinion,
the coverage and procedure of such verification by the management is appropriate ; no
discrepancies of 10% or more were noticed.
(b) The company has been sanctioned working capital limits of Rs 117
crore ( Both fund and non fund based) by banks The quarterly returns or statements filed
by the company with the banks or financial are in agreement with the books of account of
the Company
(iii) During the year the Company has paid a deposit of Rs 105 Crores
as -E-auction bid amount for Acquiring M/s Servalakshmi Paper Limited, Corporate Debtor in
liquidation and not, provided any guarantee or security or granted any loans or advances,
secured or unsecured, to Companies, Firms, Limited Liability Partnerships or other parties
and hence reporting under clauses 3 (iii)
(a),(b) (c) (d) and ( e) does not arise
(iv) The Company has complied with the provisions of Sections 185 and
186 of the Companies Act, 2013, in respect of made by the Company. The company has not
provided any security or guarantee to any other entity
(v) The Company has not accepted any deposits from the public and hence
the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76
or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)
Rules, 2015 with regard to the deposits accepted from the public are not applicable.
(vi) The Central Government has prescribed maintenance of Cost Records
under Subsection (1) of Section 148 of the Companies
>
Act, 2013. We have broadly reviewed the books of account maintained by
the company pursuant to the rules made by the central Government for the maintenance of
cost records under Section 148 of the Act, and are of the opinion that prima facie, the
prescribed and such accounts and records have been made and maintained
(vii)(a) The Company is regular in depositing undisputed Statutory
dues, including Goods and Service Tax Provident Fund, Employees? State Insurance,
Income Tax, Sales Tax, Duty of Customs, Cess,
and any other Statutory Dues to the appropriate authorities and there
were no undisputed amounts payable which were in arrears as at 31st March 2023 for a
period of more than six months from the date they became payable.
(b) Details of Statutory dues Goods and Service Tax Provident Fund,
Employees? State Insurance, Income Tax, Sales Tax, Duty of Customs, Cess, and any
other Statutory Dues that not been deposited as on 31st March 2023 on account of disputes
are given below
| Name of the Statute |
Nature of dues |
Gross Amount in Rs in crores |
Paid Amount in Rs in crores |
Net Amount in Rs in crores |
Forum where the dispute is pending |
Period to which the dues belong |
| Central Excise Act, 1944 |
Excise Duty |
0.02 |
|
0.02 |
Honble High Court of Madras |
07 12 2008 |
| Service Tax(Finance) Act, 1994 |
Service Tax |
0.11 |
0.01 |
0.10 |
CESTAT |
April 2016 - June 2017 |
| GST Act, 2017 |
Input Transition Credit |
1.29 |
|
1.29 |
Commissioner (Appeals) |
Sep 2014 - Feb 2015, June 2015 & Oct
2015 |
| Value Added Tax |
Value Added Tax |
0.37 |
0.04 |
0.33 |
Commissioner Appeals |
April 2013- March 2014 |
| Value Added Tax |
Value Added TAx |
0.08 |
0.08 |
|
TNSTAT |
April 2009- March 2010 |
| Customs Act, 1962 |
Customs Duty |
21.64 |
- |
21.64 |
CESTAT |
March 2012- January 2013 |
| - do - |
- do - |
0.37 |
- |
0.37 |
- do - |
13 12 2002 |
| - do - |
- do - |
0.09 |
0.01 |
0.08 |
- do - |
18 01 2018 |
| - do - |
Cenvat |
3.71 |
0.28 |
3.43 |
- do - |
April 2012 to January 2016 |
| - do - |
Cenvat |
1.39 |
0.10 |
1.29 |
- do - |
February 2016 to June 2017 |
(viii) There are no transactions relating to previously unrecorded
income in the books of account 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) The Company has not defaulted in
repayment of loans or other borrowing or in the payment of interest
thereon to any lender;
(b) The Company is not declared as a wilful defaulter by any bank or
financial institution or other lender;
(c) The term loans were applied 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, have not been used during the
year for long-term purposes by the Company.
(e) The Company has not taken any funds from any entity or person on
account of or to meet the obligations of its subsidiaries, associates.
(f) The company has not raised loans during the year on the pledge of
securities held in its subsidiaries, associate companies;
(x) (a) The Company has not raised any moneys
by way of initial public offer or further public offer (including debt
instruments) during the year.
(b) The company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
during the year and hence the requirements of section 42 and section 62 of the Companies
Act, 2013 is not arise;
(xi) (a) The Company has not noticed or reported
during the year any fraud by the Company or any fraud on the Company.
(b) There is no report under sub-section (12) of section 143 of the
Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of
Companies (Audit and Auditors) Rules, 2014 with the Central Government;
(c) There are no complaints received during the year under
whistle-blower Mechanism;
(xii) The Company is not a Nidhi Company and hence complying with the
provisions of the Nidhi Rules, 2014 does not arise.
(xiii) All transactions with the related parties are in compliance with
Sections 177 and 188 of the Companies Act, 2013, where applicable and the details have
been disclosed in the Financial Statements, etc., as required by the applicable Accounting
Standards.
(xiv) The Company has an internal audit system commensurate with the
size and nature of its business. We have considered the internal audit reports issued till
date;
(xv) The Company has not entered into any non-cash transactions with
Directors or persons connected with him.
(xvi) (a) The Company is not required to be
registered under Section 45-IA of the Reserve Bank of India Act, 1934
(b) The Company has not conducted any Non-Banking Financial or Housing
Finance activities during the year.
(c) The Company is not a Core Investment Company (CIC), as defined in
the Regulations made by Reserve Bank of India.
(d) We are informed there are three core Investment Companies in the
group which are exempted from registration.
J
(xvii) The company has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xviii) There has been no instance of any resignation of the statutory
auditors occurred 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) The company has spent the minimum amount required to be spent
as stipulated in section 135 of the Companies Act and hence the transfer of unspent amount
to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso
to sub-section (5) of section 135 of the said Act.
(b) There are no unspent amount towards Corporate Social responsibility
(CSR) on ongoing projects requiring a transfer to a special account in compliance with
provisions of sub section (6) of section 135 of the said act.
|
Maharaj N R Suresh and Co LLP |
|
Firm Regn. No. 001931S/S000020 |
|
K V Srinivasan |
|
Membership No. 204368 |
|
Partner |
| Place : Chennai |
Chartered Accountants |
| Date : April 29, 2023 |
UDIN : 23204368BGWWUQ3386 |
+91-9892691696
