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Rane Madras Ltd.

BSE: 532661 | NSE: RML |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE050H01012 | SECTOR: Auto Ancillaries

BSE Live

Oct 20, 16:00
205.90 0.90 (0.44%)
Volume
AVERAGE VOLUME
5-Day
1,319
10-Day
2,945
30-Day
1,825
176
  • Prev. Close

    205.00

  • Open Price

    209.45

  • Bid Price (Qty.)

    202.00 (1)

  • Offer Price (Qty.)

    225.00 (1)

NSE Live

Oct 20, 15:55
205.20 -1.30 (-0.63%)
Volume
AVERAGE VOLUME
5-Day
56,109
10-Day
35,156
30-Day
19,184
5,609
  • Prev. Close

    206.50

  • Open Price

    206.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    205.20 (58)

Annual Report

For Year :
2019 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Rane (Madras) Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2019, 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 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 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, 2019, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone 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 Auditor’s Responsibility 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 (ICAI) 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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s 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 standalone financial statements.

Emphasis of Matter

We draw attention to Note 7 to the standalone financial statements regarding insurance claim receivable of Rs. 10.08 Crores, recognized during the previous year ended March 31, 2018, based on management’s assessment of the certainty of recoverability of insurance claim, the settlement of which is subject to survey and admission by the Insurance Company.

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 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.

Sr. No.

Key Audit Matter

Auditor’s Response

1

Assessment of impairment in a wholly owned step down subsidiary:

The total financial exposure, representing investment and loans (either directly or through intermediate subsidiary) in Rane Precision Die Casting Inc. (RPDC) aggregated to Rs. 96.83 Crores as at March 31, 2019.

The Company’s wholly owned step down subsidiary in the US, RPDC, has incurred a net loss of Rs. 36.58 Crores during FY 18-19. The net worth of this subsidiary has fully eroded. These indicators necessitated management to test the investment and loans given to RPDC for impairment.

Impairment testing uses projections of future cash flows based on the most recent long-term forecasts approved by management, including estimated sales volumes and pricing. The long-term forecasts are projected over five years.

Management engaged external valuers, who used various assumptions such as the valuation approach, probability of projections, risk free rate, market risk premium etc. and assessed that the recoverable amounts were higher than the carrying value of investment and loans given to RPDC.

Assessment of impairment involves significant management judgements and estimations and accordingly, we deemed this to be a key audit matter.

Principal audit procedures performed:

Our audit procedures included, amongst others, testing the Company’s controls surrounding the budgeting process and the carrying value of investment and loans to RPDC.

Our audit included assessing the Company’s budgeting procedures upon which the forecasts are based and the integrity of the discounted cash flow models which management used to prepare the valuations.

We challenged the robustness of the key assumptions used to determine the recoverable amounts used in the valuation.

We engaged our own valuation specialists to assist us in evaluating the assumptions and methodologies used by management, in particular those relating to the discount rates, risk free rate, market risk premium etc., by comparing relevant assumptions to industry and economic forecasts.

We also assessed whether the Company’s disclosures about the sensitivity of the outcome of the impairment assessment to changes in key assumptions reflect the risks inherent in the valuation of investment.

2

Recoverability of insurance claim:

The Company lodged a product liability insurance claim in September 2017 and recognized insurance claim receivable for Rs. 10.08 Crores based on management’s assessment of the certainty of recoverability of insurance claim.

Management’s assessment of certainty of recoverability involved judgments based on merits of the case and past trend, supported by independent evaluation by an insurance consultant and a legal opinion.

Principal audit procedures performed:

Our audit procedures included testing the Company’s controls relating to assessment of certainty of insurance claim recoverable.

We examined the terms and conditions of the insurance policy coverage as well as the nature and measurability of the claim amount.

We evaluated the past trend of management’s estimates and the assessment of admissibility of the claim by the insurance consultant appointed by the management and a legal opinion received from external legal consultant on the tenability of the claim.

We reviewed the progress of the survey and noted that the queries raised by the surveyor have been satisfactorily responded and the surveyor is in the final stages of submission of his report.

Also refer Emphasis of Matter Paragraph above.

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 Director’s report and its annexures, but does not include the consolidated financial statements, 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.

Management’s Responsibility for the Standalone Financial Statements

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 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 standalone financial statement 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 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.

The Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibility 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 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.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism 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 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 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.

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 standalone 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 standalone 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 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

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, 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 standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 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 Company’s internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor’s 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 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 37 to the standalone financial statements).

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

2. As required by the Companies (Auditor’s 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.

Annexure “A” To The Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section 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 Rane (Madras) Limited (“the Company”) as of March 31, 2019 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. 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s 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 auditor’s 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 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 Company’s 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 Company’s 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, 2019, 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.

Annexure “B” To The Independent Auditor’s Report

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

(i) In respect of its fixed assets (Property, Plant & Equipment and Intangible assets):

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets (Property, plant & equipment and Intangible assets).

(b) The fixed assets (Property, plant & equipment) were physically verified during the year by the Management in accordance with a programme of verification which, in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.

(c) With respect to immovable properties of acquired land and buildings that are freehold, according to the information and explanations given to us and the records examined by us and based on the examination of registered sale deed provided to us, we report that, the title deeds of such immovable properties are held in the name of the Company as at the balance sheet date.

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

In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset (Property, plant & equipment) in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.

(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification

(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.

In our opinion adn according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of the loans, making investments and providing guarantees, as applicable.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of the loans, making investments and providing guarantees, as applicable.

(v) According to the information and explanation given to us, the Company has not accepted any deposit during the year also the Company does not have any unclaimed deposits.

(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 has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance, Income-tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues in arrears as at March 31, 2019 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Entry Tax and Excise Duty which have not been deposited as on March 31, 2019 on account of disputes are given below:

Name of the Statute

Nature of Dues

Forum where dispute is pending

Period to which amount relates

Amount involved (Rs. In crores)

Amount unpaid (Rs. In crores)

Central Excise Act, 1944

Excise Duty

Commissioner of Central Tax (Appeals), Chennai

2007-08 to 2011-12

0.13

0.10

Central Excise Act, 1944

Excise Duty

Customs, Goods & Service tax Appellate Tribunal, Chennai

2009-10 & 2012-13

1.14

0.25

Finance Act, 1994

Service Tax

Customs, Goods & Service tax Appellate Tribunal, Chennai

2007-08 to 2011-12

0.72

-

Finance Act, 1994

Service Tax

Customs, Goods & Service tax Appellate Tribunal, Chennai

2007-08 to 2011-12

0.20

0.20

Finance Act, 1994

Service Tax

Assistant Commissioner, Nizamabad

2011-12

0.07

0.04

Finance Act, 1994

Service Tax

Commissioner of Central Tax (Appeals), Chennai

2010-11 to 2015-16

1.01

0.82

Finance Act, 1994

Service Tax

Commissioner of Central Tax (Appeals), Chennai

2011-2015

0.30

0.26

Finance Act, 1994

Service Tax

Commissioner of Central Tax (Appeals), Chennai

2011-2015

0.01

0.01

Finance Act, 1994

Service Tax

Commissioner of Central Tax (Appeals), Mysore

2010-2015

0.13

0.13

Maharashtra Value Added Tax Act, 2002

Sales Tax

Commissioner (Appeals)

2005-06, 2006-07 & 2008-09

1.10

1.08

Karnataka Tax on Entry of Goods Act, 1979

Sales Tax

Karnataka High Court

2005-06& 2006-07

0.09

-

Karnataka Tax on Entry of Goods Act, 1979

Sales Tax

Commissioner (Appeals)

2007-08 to 2012-13

0.10

-

Central Sales Tax Act, 1956

Sales Tax

Deputy Commissioner, Mysore

2011-12, 2012-13 & 2013-14

0.44

-

Central Sales Tax Act, 1956

Sales Tax

Commissioner of Sales Tax (Appeals), Pondy

2010-11

0.07

0.03

Central Sales Tax Act, 1956

Sales Tax

Assistant Commissioner, Alandur, Tamilnadu

2014-15

2.20

2.20

Central Sales Tax Act, 1956

Sales Tax

Commissioner of Sales Tax, Appeal, TN

2011-12 to 2015-16

0.24

0.19

Central Sales Tax Act, 1956

Sales Tax

Commissioner of Sales Tax (Appeals), PantNagar

2010-11

0.92

0.83

Central Sales Tax Act, 1956

Sales Tax

Commissioner of Sales Tax (Appeals), PantNagar

2011-12

0.60

0.59

Central Sales Tax Act, 1956

Sales Tax

Commissioner of Sales Tax (Appeals), Gurgaon

2014-15

0.01

0.01

Telangana Entry of

Goods into Local

Sales Tax

AP & Telangana High Court

2011-12 to 2016-17

1.00

0.75

Areas Act, 2001

Telangana VAT Act, 2005

Sales Tax

Commissioner (Appeals)

2012-13 to 2015-16

0.07

0.07

Telangana VAT Act, 2005

Sales Tax

Commissioner (Appeals)

2012-13 to 2015-16

-

-

Income Tax Act, 1961

Income Tax

Supreme Court

1997-98

0.31

0.31

Income Tax Act, 1961

Income Tax

High Court

1996-97

0.07

0.07

Income Tax Act, 1961

Income Tax

Commissioner of Income Tax(Appeals)

2008-09

7.52

5.52

Income Tax Act, 1961

Income Tax

Commissioner of Income Tax(Appeals)

2009-10

2.76

-

Name of the Statute

Nature of Dues

Forum where dispute is pending

Period to which amount relates

Amount involved (Rs. In crores)

Amount unpaid (Rs. In crores)

Income Tax Act, 1961

Income Tax

Commissioner of Income Tax(Appeals)

2010-11

1.91

1.91

Income Tax Act, 1961

Income Tax

Deputy

Commissioner of Income Tax

2011-12

0.42

0.42

Income Tax Act, 1961

Income Tax

Commissioner of Income Tax(Appeals)

2012-13

2.39

1.82

Income Tax Act, 1961

Income Tax

Commissioner of Income Tax(Appeals)

2013-14

0.13

0.13

Income Tax Act, 1961

Income Tax

Commissioner of Income Tax(Appeals)

2016-17

3.14

3.14

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

(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). According to the information and explanations given to us, in respect of term loans, the Company has applied the money for the purposes for which it was raised, other than temporary deployment pending application.

(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 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Sections 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 as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us, the Company has made preferential allotment of shares or fully or partly convertible debentures during the year under review.

In respect of the above issue, we further report that:

(a) the requirement of Section 42 of the Companies Act, 2013, as applicable, have been complied with; and

(b) the amounts raised have been applied by the Company during the year for the purposes for which the funds were raised, other than temporary deployment pending application.

(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 him 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-I of the Reserve Bank of India Act, 1934.

For Deloitte Haskins & Sells

Chartered Accountants

(Firm‘s Registration No.008072S)

Chennai Ananthi Amarnath

May 23, 2019 Partner

(Membership No. 209252)