Steel Exchange India Ltd Directors Report.

To

The Members of

STEEL EXCHANGE INDIA LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements ofM/s.Steel Exchange India Limited ("the Company"), which comprise the Balance Sheet as at March 31,2020, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone 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 ("the Act") in the manner so required and except the effect of matter referred to in Basis for qualified opinion 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 31,2020, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We draw your attention to note 3.26 to the Ind AS financial statements with regard to non-recognition of interest expenses amounting to Rs. 203.48crores on the borrowings of the company for the year ended 31st March 2020 which is not in accordance with the requirements of Ind AS 23. Borrowing Cost read with Ind AS 109 Financial Instruments.

Had the aforesaid interest expenses been recognized, finance costs for the year ended 31stMarch 2020 would have been Rs 206.95 crores instead of reported amount of Rs 3.47 crores. Total expenses for the year ended 31st March, 2020 would have been Rs 944.25crores instead of Rs 740.76crores. Loss before exceptional items and tax for the year ended 31st March 2020 would have been Rs 152.82crores instead of the reported amount of profit Rs 50.66crores, Loss before Tax for the year ended 31st March 2020 would have been Rs 164.31 crores instead of the reported amount of profit Rs 39.17crores, Net Loss after Tax for the year ended 31st March 2020 would have been Rs 139.18crores instead of reported amount of profit Rs 64.29 crores. Total comprehensive loss for the year ended 31st March 2020 would have been Rs 139.32 crores instead of reported amount of profit Rs 64.16 crores and loss per share for the year ended 31st March 2020 would have been Rs 18.33 instead reported amount of profit Rs 8.44, other equity and other financial liabilities as at 31stMarch 2020 would have been Rs (-)123.96crores and Rs 1114.53crores insteadof reported amount of Rs 79.52crores and Rs 911.05 crores respectively.

The above reported interest has been calculated using simple interest rate.

Key audit matters

Key audit matters are those matters that, in our professional judgment, 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. We have determined the matters described below to be the key audit matters to be communicated in our report.

S.No Key Audit matter
1. Accuracy of recognition,measurement, presentation and disclosures of revenues and other related balances in view of adoption of INDAS115 "Revenue from contracts with customers"(newrevenueaccountingstandard)
The application of the new revenue accounting standard involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognized over a period. Additionally, new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
Refer to Notes and 3.20 to the Standalone Financial Statements
Auditors Response
Principal Audit Procedure
We assessed the Companys process to identify the impact of adoption of the new revenue accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows :
• Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
• Selected a sample of continuing and new contracts, and tested the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation, reperformance and inspection of evidence in respect of operation of these controls.
• Tested the relevant information technology systems access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.
• Selected a sample of continuing and new contracts and performed the following procedures :
- Read, analyzed and identified the distinct performance obligations in thesecontracts.
- Compared these performance obligations with that identified and recorded by the Company.
- Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
- Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specified in the underlying contracts.
- Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
We reviewed the collation of information and the logic of the report generated from the budgeting system used to prepare the disclosure relating to the periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
2 Evaluation of uncertain tax positions
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes.
Refer note no 3.32 to the Standalone Financial Statements
Auditors Response
PRINCIPAL AUDIT PROCEDURE
Obtained details of completed tax assessments and demands for the year ended March 31, 2020 from management .Discussed with the managements underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Additionally, we considered the effect of new information in respect of uncertain tax positions as at March 31,2020 to evaluate whether any change was required to managements position on these uncertainties.
3 Recoverability of Indirect tax receivables
As at March 31, 2020, other non current assets include Indirect tax balance receivable amounting to Rs 11,88,79,229 out of which amount of Rs 7,96,93,400 are pending adjudication.
Refer Note 3.2 to the Standalone Financial Statements.
Auditors Response
PRINCIPAL AUDIT PROCEDURE
We have verified the relavent documents and records, the sustainability and likelihood of recoverability upon final resolution.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, 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 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 Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act,2013 with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India including The Indian Accounting Standard specified under sec.133 of the act. 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

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.

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

o 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.

o Obtain an understanding of internal financial controls 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.

o Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related

disclosures made by management.

o 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.

o 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.

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.

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.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit we report that :

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

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

d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified 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 March 31,2020 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2020 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 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.

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, 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: 3.32 b&c)

ii. The Company didnot have any long-term contracts including derivative contracts for which there arefor 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 BHAVANI &Co.

Chartered Accountants Firm Reg. No:012139S

Place :Visakhapatnam
Date : 29-07-2020 (CA S KAVITHA PADMINI)
PARTNER
M.No : 229966
UDIN : 20229966AAAACF9482

ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory Requirements section of our report to the Members of Steel Exchange India Limited 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 M/s. Steel Exchange India limited ("the Company") as of March 31,2020 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

The Board of Directors of the Company 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 respective 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 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 judgment, 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 internal financial control system over financial reporting of the Company.

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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

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 31,2020, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For BHAVANI &Co. Chartered Accountants Firm Reg. No:012139S

Place :Visakhapatnam
Date : 29-07-2020 (CA S KAVITHA PADMINI)
PARTNER
M.No : 229966
UDIN : 20229966AAAACF9482

"ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT

Referred to in paragraph 1 under the heading Report on Other Legal & Regulatory Requirement of our report of even date to

the financial statements of the Company for the year ended March 31,2020:

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation

of fixed assets.

(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the book records and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

2. The management has conducted the physical verification of inventory at reasonable intervals. The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.

3. 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 Act. Accordingly, paragraph 3 (iii) (a) to (C) of the Order are not applicable.

4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.

5. 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.

6. As informed to us, the maintenance of Cost Records has been specified by the Central Government under subsection (1) of Section 148 of the Act, in respect of the activities carried on by the company. We have broadly reviewed the Cost Records maintained by the Company pursuant to the Companys (Cost Records and Audit) Rules, 2014 prescribed by the Central Government and are of the opinion that prima facie the prescribed cost records have been maintained.

7. (a) According to the information and explanations given to us and the records of the company examined by us, the

company is regular in depositing undisputed statutory dues including Provident fund, Employee State Insurance, Incometax, salestax, customsduty,goods and service tax and any other statutory dues as applicable with appropriate authorities.There were arrears of outstanding statutory dues as on last day of thefinancial year concerned for a period of more than six months from the date on which they become payable.

PARTICULARS TDS
AUGUST 33,264

(b) According to the information and explanation given to us, the following dues of the service tax, customs duty, excise duty , value added tax ,GST,Central sales tax, Cess and other statutory dues which have not been deposited with appropriate authorities on account of any dispute.

Name of the Statute Nature of Dues Period to which the amount relates Amount in Deposits/ Paid in (.) Forum where the dispute is pending with
CST Act Sales Tax 2004-05 28,27,172/- 3,53,397/- CTO,Gajuwaka, Visakhapatnam
CST Act Sales Tax 2005-06 47,85,829/- 23,92,914/- STAT, Visakhapatnam
AP VAT Act 2011-12 11,57,334/- 2,89,334/-
AP VAT Sales Tax 2019-20 2,32,17,664 42,53,000/- STAT, Visakhapatnam
AP VAT Act Sales Tax 2013-14 11,85,189/- 8,24,678/- STAT, Visakhapatnam
AP VAT Act Sales Tax 2012-13 85,06,000/- 10,63,250/- ADC APPEAL, Vijayawada
AP VAT Act Sales Tax 2013-14 1,18,549/- 59,259/- STAT, Visakhapatnam
AP VAT Act Sales Tax 2014-15 2,70,15,203/- 37,09,169/- Appellate Deputy Commissioner, Visakhapatnam
CST Act Sales Tax 2013-14 8,16,219/- NIL Appellate Deputy Commissioner (CT), Vijayawada
AP VAT Act Sales tax 2014-15 27,01,520/- 3,37,690/- Appellate Deputy Commissioner (CT), Vijayawada
AP VAT ACT Sales tax 2012-13 13,94,858/- 3,48,715/- Honble High Court of Telangana & AP
AP VAT ACT Sales tax 2015-16 31,41,694/- 7,85,424/- Honble High Court of Telangana & AP
AP VAT ACT Sales tax 2016-17 82,70,573/- 20,67,643/- Honble High Court of Telangana & AP
AP VAT ACT Sales tax 2017-18 13,19,062/- 1,64,883/- Appellate Deputy Commissioner (CT), Vijayawada
AP VAT ACT Sales tax 2014-15 57,375/- 7,172/- STA, Visakhapatnam
AP VAT ACT Sales tax 2015-16 2,63,227/- 32,904/- Appellate Deputy Commissioner (CT), Vijayawada
AP VAT ACT Sales tax 2016-17 5,17,834/- 64,730/- Appellate Deputy Commissioner (CT), Vijayawada
AP VAT ACT Sales tax 2015-16 1,76,43,584/- 2,01,824/- Appellate Deputy Commissioner (CT), Vijayawada
AP VAT ACT Sales tax 2015-16 44,10,896/- NIL Appellate Deputy Commissioner (CT), Vijayawada
Customs Act Customs Duty 2003-04 54,35,648/- NIL Honble High Court of Telangana & AP
Customs Act Customs Duty 2012-13 67,38,452/- NIL CESTAT, Bangalore
Customs Act Customs Duty 2012-13 37,66,062/- NIL Commissioner (Appeals), Visakhapatnam.
Central Excise Act, Excise Duty 2007- 08 2008- 09 86,30,228/- 1,91,708/- 10,00,000/- NIL CESTAT, Bangalore
Central Excise Act Excise Duty 2009-10 2010-11 & 2011-1; 61,18,776/- 50,00,000/- Commissioner of Central Excise, Visakhapatnam
2009-10 3,893/- NIL
Central Excise Act Excise Duty 2010-11 14,35,189/- NIL Honble High Court of Telangana & AP
Name of the Statute Nature of Dues Period to which the amount relates Amount in Deposits/ Paid in (.) Forum where the dispute is pending with
Central Excise Act Excise Duty 2014-15 6,32,86,487/- 3,46,13,208/- Commissioner of Central Excise, Visakhapatnam.
Customs Act Customs duty 2012-13 2,18,06,647/- NIL Honble Customs, Central Excise & Service Tax- Appellate Tribunal, Telangana
Excise Act Excise duty 2012-13 7,73,767/- NIL Assistant Commissioner of Customs & Central Excise, Visakhapatnam
Excise Act Excise duty 2014-15 to 2017-1 87,30,013/- NIL Commissioner of Central Tax & Customs, (Appeals), Guntur
Excise Act Excise duty 2015-16 6,90,69,600/- 5,27,20,200/- Principle Commissioner of Central Excise, Visakhapatnam
Service Tax Act Service Tax 2013-14 to 2016-1 17,98,12,034/- NIL Commissioner of Central tax,Visakhapatnam
Service Tax Act Service tax 2016-17 1,22,63,893/- Nil Additional Commissioner Of central Tax,Visakhapatnam
Service Tax Act Service tax 2016-17 40,56,569/- Nil Additional Commissioner Of central Tax,Visakhapatnam
GST Act GST 2017-18 69,21,076 NIL Deputy Commissioner of central Tax, Rajamahendravaram
GST Act GST 2017-18 16,01,608 NIL Deputy Commissioner of central Tax, Visakhapatnam

8. According to the records of the company examined by us,the information and explanations given to us, except for loans and borrowings from banks and financial institutions aggregating Rs 591.94Crores for the period set out below the company has not defaulted in repayment of loans or borrowings to any financial institutions or banks as on at the balance sheet date.

S.No Name of the Institution/Bank Nature of dues Amount of defaults
<12 months >12 Months
1 State Bank of India Principal & Interest 104.76 274.96
2 Syndicate bank Principal & Interest - 26.90
3 Punjab National bank Principal & Interest 9.66 34.19
4 Bank of India Principal & Interest

-

19.39
5 Karur Vysya Bank Principal & Interest 10.59 23.96
6 Lakshmi Vilas Bank Principal & Interest 10.00 9.66
7 IDBI Bank Principal & Interest - 19.92
8 Dhanalaxmi Bank Principal & Interest

-

12.06
9 Andhra bank Principal & Interest

-

14.64
10 Canara bank Principal & Interest

-

21.25
Total 135.01 456.93

9. According to the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, paragraph 3 (ix) of the Order are not applicable.

10. According to the information and explanations given by the management to us, no material fraud by the Company or on the company by its officers or employees has been noticed or reported during the course of audit.

11. According to the information and explanations to us and based on our examination of the records of the company, 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 Companies Act;

12. In our opinion and according to information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not applicable.

13. According to the information and explanations to us and based on our examination of the records of the company transactions with the related parties are in compliance with section 177 and 188 of Companies Act,2013 where applicable and the details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.

14. According to the information and explanations to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3 (xiv) of the Order are not applicable.

15. According to the information and explanations to us and based on our examination of the records of the company, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order are not applicable.

16. In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, paragraph 3 (xvi) of the Order are not applicable.

For BHAVANI &Co.

Chartered Accountants Firm Reg. No:012139S

Place :Visakhapatnam (CA S KAVITHA PADMINI)
Date : 29-07-2020 PARTNER
M.No : 229966
UDIN : 20229966AAAACF9482