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Akzo Nobel India Ltd.

BSE: 500710 | NSE: AKZOINDIA |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE133A01011 | SECTOR: Paints

BSE Live

Jan 25, 16:01
2242.00 6.30 (0.28%)
Volume
AVERAGE VOLUME
5-Day
535
10-Day
650
30-Day
899
198
  • Prev. Close

    2235.70

  • Open Price

    2231.10

  • Bid Price (Qty.)

    2175.65 (100)

  • Offer Price (Qty.)

    2255.00 (17)

NSE Live

Jan 25, 15:59
2246.80 8.60 (0.38%)
Volume
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5-Day
8,769
10-Day
13,088
30-Day
13,530
8,015
  • Prev. Close

    2238.20

  • Open Price

    2241.20

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2022 2019 2018 2017 2016 2015 2014 2013 2012

Auditor's Report

Opinion

1. We have audited the accompanying Standalone Financial Statements of Akzo Nobel India Limited (“the Company”), which comprise the Balance Sheet as at 31 March 2022, and 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 then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (“the Act”) in

the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and total comprehensive income (comprising profit and other comprehensive income), changes in equity and its cash flows for the year then ended.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the “Auditor''s Responsibilities for the Audit of the Standalone 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 Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that, in our professional 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.

Key audit matter

How our audit addressed the key audit matter

A. Revenue recognition

Our audit procedures

including variable consideration

included the following:

• We assessed the design

[Refer to Notes 1(o)

and tested the operating

(Significant accounting

effectiveness of internal

policies) and 18 (Revenue

controls related to

from operations) to the

recognition of revenue

Standalone Financial

including variable

Statements]

consideration.

The Company recognises revenues when control of the goods is transferred to the customer at an amount that reflects the net consideration, which

• We tested sales

transactions on a sample basis, by comparing the underlying sales invoices, sales orders and dispatch documents to assess

the Company expects to receive for those

whether revenue was

goods from customers.

recognised appropriately.

The sales arrangements

• Assessed the underlying

are voluminous and in

assumptions and

determining the sales

estimates used for

price, the Company

determination of variable

considers the effects of variable consideration,

consideration.

which requires estimation,

• We tested rebates and

leading to complexities

discount provided to the

and application of

customers on a sample

significant effort and

basis, comparing the

judgment.

same with underlying approvals and terms

Considering these

of the contracts and

significant judgements, estimates and the risk associated with revenue

schemes offered to customers.

recognition, the matter

• We assessed the

has been determined to

adequacy of the

be a key audit matter.

disclosures made in the Standalone Financial Statements in respect of revenue recognition.

Based on the above procedures, we did not identify any significant deviation to the assessment made by the management in respect of revenue recognition including variable consideration.

Key audit matter

How our audit addressed the key audit matter

B. Assessment of ongoing

Our procedures included the

income tax and indirect tax

following:

litigations

• Obtained an

[Refer to Notes 1(l)

understanding of

and 1(m) (Significant

the process and

accounting policies),

controls designed and

Note 27(b) (Contingent

implemented by the

liabilities), Note 6.2 [Non-

management and tested

current tax assets(net)],

the design and operating

Note 13 (Provisions) to

effectiveness of relevant

the Standalone Financial

controls;

Statements]

• Obtained an

As at 31 March 2022, the

understanding of the tax

Company is subjected to

litigations through enquiry

a number of significant

with the management,

income tax litigations

including the significant

relating to disallowance

developments, additions

of expenses, transfer

and settlements during

pricing adjustments etc.

the year and subsequent

and indirect tax litigations

to the year end;

relating to taxable turnover, availability of statutory forms etc.

• Inspected demand notices received from the tax authorities and

(together referred to as “tax litigations”). These matters are in appeal

evaluated the Company''s response to those matters;

before various judicial forums.

• Obtained independent

The eventual outcome of tax litigations is uncertain and the positions taken by the management are

confirmations from the Company''s external tax experts including the status of the significant tax litigations, their views

based on the application of significant judgement

regarding the likely outcome and magnitude

and estimation. The assessment of the

of the potential exposure;

tax matters requires

• Involved specialists

application and

to evaluate the

interpretation of tax

management''s

laws and reference

assessment on the likely

to applicable judicial

outcome and potential

pronouncements.

magnitude on complex

Based on management

or significant tax matters

judgement and the advice

as considered necessary;

from external legal and

and

tax consultants and considering the merits of

• Assessing the adequacy of the Company''s

the case, the Company has recognised provisions wherever required and for the balance matters, where the management

disclosures in respect of litigations.

Key audit matter

How our audit addressed the key audit matter

expects favourable

We did not identify any

outcome, the tax

significant exceptions to the

litigations have been

management''s assessment

disclosed as contingent

of the ongoing tax litigations

liabilities in the Standalone

as a result of the above

Financial Statements

procedures.

unless the possibility of

outflow of resources is

considered to be remote.

We identified this matter

as a key audit matter as

the ultimate outcome of

matters are uncertain and

the positions taken by the

management are based on

the application of significant

judgement, related legal

advice including those

relating to interpretation of

laws and regulations.

Other Information

5. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the Standalone Financial Statements and our 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 in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and Those Charged With Governance for the Standalone Financial Statements

6. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles

generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

7. In preparing the Standalone Financial Statements, management is responsible for assessing the 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 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 Company''s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

8. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually

or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

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

• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of

the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of 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 auditor''s 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 auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s 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

13. As required by the Companies (Auditor''s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

14. 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, except that the backup of the books of account and other books and papers maintained in electronic mode has not been maintained on servers physically located in India.

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

(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31 March 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the maintenance of accounts and other matters connected therewith, reference is made to our comments in paragraph 14(b) above that the back-up of the books of account and other books and papers maintained in electronic mode has not been maintained on servers physically located in India.

(g) With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure A”.

(h) With respect to the other matters to be included in the Auditor’s 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 27 to the Standalone Financial Statements;

ii. The Company was not required to recognise a provision as at 31 March 2022 under the applicable law or accounting standards, as it does not have any material foreseeable losses on long-term contracts. The Company did not have any longterm derivative contracts as at 31 March 2022.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year.

iv. (a) The management has represented that, to the

best of its knowledge and belief, as disclosed in the notes to the Standalone 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 person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 38 to the Standalone Financial Statements);

(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the Standalone Financial Statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 38 to the Standalone Financial Statements); and

(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

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

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

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016

Anurag Khandelwal

Partner

Place: Gurugram Membership Number: 078571

Date: 27 May 2022 UDIN: 22078571AJRYBK1896