TO THE MEMBERS OF TATA STEEL LIMITED
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying Standalone Financial Statements of Tata SteelLimited ("the Company") which comprise the Balance Sheet as at March 31 2019the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and Notes tothe Standalone Financial Statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "theStandalone Financial Statements").
2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 its total comprehensive income(comprising of profit and other comprehensive income) its changes in equity and its cashflows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Standalone Financial Statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that in our professional judgement were ofmost significance in our audit of the Standalone Financial Statements of the current year.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
|Key Audit Matter ||How our audit addressed the Key Audit Matter |
|Assessment of litigations and related disclosure of contingent liabilities ||Our audit procedures included the following: |
|[Refer to Note 2 (c) to the Standalone Financial Statements "Use of estimates and critical accounting judgements Provisions and contingent liabilities" Note 36 (A) to the Standalone Financial Statements "Contingencies" and Note 37 to the Standalone Financial Statements "Other significant litigations"] || We understood assessed and tested the design and operating effectiveness of key controls surrounding assessment of litigations relating to the relevant laws and regulations; |
| || We discussed with management the recent developments and the status of the material litigations which were reviewed and noted by the audit committee; |
|As at March 31 2019 the Company has exposures towards litigations relating to various matters as set out in the aforesaid Notes. || We performed our assessment on a test basis on the underlying calculations supporting the contingent liabilities/other significant litigations made in the Standalone Financial Statements; |
|Significant management judgement is required to assess such matters to determine the probability of occurrence of material outflow of economic resources and whether a provision should be recognised or a disclosure should be made. The management judgement is also supported with legal advice in certain cases as considered appropriate. || We used auditor's experts to gain an understanding and to evaluate the disputed tax matters; |
| || We considered external legal opinions where relevant obtained by management; |
|As the ultimate outcome of the matters are uncertain and the positions taken by the management are based on the application of their best judgement related legal advice including those relating to interpretation of laws/regulations it is considered to be a Key Audit Matter. || We met with the Company's external legal counsel to understand the interpretation of laws/regulations considered by the management in their assessment relating to a material litigation; |
| || We evaluated management's assessments by understanding precedents set in similar cases and assessed the reliability of the management's past estimates/judgements; |
| || We evaluated management's assessment around those matters that are not disclosed or not considered as contingent liability as the probability of material outflow is considered to be remote by the management; and |
| || We assessed the adequacy of the Company's disclosures. Based on the above work performed management's assessment in respect of litigations and related disclosures relating to contingent liabilities/other significant litigations in the Standalone Financial Statements are considered to be reasonable. |
|Key Audit Matter ||How our audit addressed the Key Audit Matter |
|Assessment of carrying value of equity investments in subsidiaries associates and joint ventures and fair value of other investments ||Our audit procedures included the following: |
|[Refer to Note 2 (c) to the Standalone Financial Statements "Use of estimates and critical accounting judgements Impairment and fair value measurements of financial instruments" Note 2 || We obtained an understanding from the management assessed and tested the design and operating effectiveness of the Company's key controls over the impairment assessment and fair valuation of material investments. |
|(m) to the Standalone Financial Statements "Investments in subsidiaries associates and joint ventures" Note 2(n)(I) to the Standalone Financial Statements "Financial assets" Note 6 to the Standalone Financial Statements "Investments in subsidiaries associates and joint ventures" Note 7 to the Standalone Financial Statements "Investments" and Note 39 (b) to the Standalone Financial Statements "Fair value hierarchy"] || We evaluated the Company's process regarding impairment assessment and fair valuation by involving auditor's valuation experts to assist in assessing the appropriateness of the valuation model including the independent assessment of the underlying assumptions relating to discount rate terminal value etc. |
|The Company has equity investments in various subsidiaries associates joint ventures and other companies. It also has made investments in preference shares in certain subsidiaries/associates and debentures in a joint venture. || We assessed the carrying value/fair value calculations of all individually material investments where applicable to determine whether the valuations performed by the Company were within an acceptable range determined by us and the auditor's valuation experts. |
|The Company accounts for equity investments in subsidiaries associates and joint ventures at cost (subject to impairment assessment) and other investments at fair value. || We evaluated the cash flow forecasts (with underlying economic growth rate) by comparing them to the approved budgets and our understanding of the internal and external factors. |
|For investments carried at cost where an indication of impairment exists the carrying value of investment is assessed for impairment and where applicable an impairment provision is recognised if required to its recoverable amount. || We checked the mathematical accuracy of the impairment model and agreed relevant data back to the latest budgets actual past results and other supporting documents. |
| || We assessed the Company's sensitivity analysis and evaluated whether any reasonably foreseeable change in assumptions could lead to impairment or material change in fair valuation. |
|For investments carried at fair values a fair valuation is done at the year-end as required by Ind AS 109. In case of certain investments cost is considered as an appropriate estimate of fair value since there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range as permitted under Ind AS 109. || We discussed with the component auditors of certain entities to develop an understanding of the operating performance and outlook used in their own valuation model and to assess consistency with the assumptions used in the model. |
|The accounting for investments is a Key Audit Matter as the determination of recoverable value for impairment assessment/fair valuation involves significant management judgement. The impairment assessment and fair valuation for such investments have been done by the management in accordance with Ind AS 36 and Ind AS 113 respectively. || We had discussions with management to obtain an understanding of the relevant factors in respect of certain investments carried at fair value where a wide range of fair values were possible due to various factors such as absence of recent observable transactions restrictions on transfer of shares existence of multiple valuation techniques investee's varied nature of portfolio of investments for which significant estimates/judgements are required to arrive at fair value. |
|The key inputs and judgements involved in the impairment/fair valuation assessment of unquoted investments include: || We evaluated the adequacy of the disclosures made in the Standalone Financial Statements. |
| Forecast cash flows including assumptions on growth rates ||Based on the above procedures performed we did not identify any significant exceptions in the management's assessment in relation to the carrying value of equity investments in subsidiaries associates and joint ventures and fair value of other investments. |
| Discount rates || |
| Terminal growth rate || |
|Economic and entity specific factors are incorporated in valuation used in the impairment assessment. || |
5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information in the Integrated Report Board's Report alongwithits Annexures and Financial Highlights included in the Company's Annual Report (titled asTata Steel Integrated Report & Annual Accounts 2018-19') but does not includethe financial statements and our auditor's report thereon.
Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements
6. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
7. In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.
9. As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to the audit in order todesign 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 hasadequate internal financial controls with reference to Standalone Financial Statements inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.
10. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant defficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the Standalone FinancialStatements of the current year and are therefore the Key Audit Matters. We describe thesematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably 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 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure B a statement on the matters specified inparagraphs 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 bestof 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 theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account.
(d) In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors taken onrecord by the Board of Directors none of the directors is disqualified as on March 312019 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 with reference toStandalone Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Annexure A. (g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: i. The Company has disclosed the impact ofpending litigations as on March 31 2019 on its financial position in its StandaloneFinancial Statements Refer Notes 36 (A) and 37 to the Standalone FinancialStatements. ii. The Company has long-term contracts including derivative contracts as onMarch 31 2019 for which there were no material foreseeable losses. iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company during the year ended March 31 2019 except for amountsaggregating to Rs. 5.21 crore which according to the information and explanationsprovided by the management is held in abeyance due to dispute/pending legal cases. iv. Thereporting on disclosures relating to Specified Bank Notes is not applicable to the Companyfor the year ended March 31 2019.
|For Price Waterhouse & Co Chartered Accountants LLP || |
| ||Firm Registration Number: 304026E/ E-300009 |
| ||Chartered Accountants |
| ||Russell I Parera |
|Place: Mumbai ||Partner |
|Date: April 25 2019 ||Membership Number 042190 |
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 14(f) of the Independent Auditor's Report of even date to themembers of Tata Steel Limited on the Standalone Financial Statements as of and for theyear ended March 31 2019 Report on the Internal Financial Controls with reference toStandalone Financial Statements under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")
1. We have audited the internal financial controls with reference to StandaloneFinancial Statements of Tata Steel Limited ("the Company") as of March 31 2019in conjunction with our audit of the Standalone Financial Statements of the Company forthe year ended on that date.
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing deemed to be prescribed under Section 143(10) of the Act to the extent applicableto an audit of internal financial controls both applicable to an audit of internalfinancial controls and both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference toStandalone Financial Statements was established and maintained and if such controlsoperated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to Standalone FinancialStatements and their operating effectiveness. Our audit of internal financial controlswith reference to Standalone Financial Statements included obtaining an understanding ofinternal financial controls with reference to Standalone Financial Statements assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to Standalone Financial Statements.
Meaning of Internal Financial Controls with reference to financial statements
6. A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.
Inherent Limitations of Internal Financial Controls with reference to financialstatements
7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to Standalone Financial Statements and suchinternal financial controls with reference to Standalone Financial Statements wereoperating effectively as at March 31 2019 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
| ||For Price Waterhouse & Co Chartered Accountants LLP |
| ||Firm Registration Number: 304026E/ E-300009 |
| ||Chartered Accountants |
| ||Russell I Parera |
|Place: Mumbai ||Partner |
|Date: April 25 2019 ||Membership Number 042190 |
Referred to in paragraph 13 of the Independent Auditor's Report of even date to themembers of Tata Steel Limited on the Standalone Financial Statements as of and for theyear ended March 31 2019 i. (a) The Company is maintaining proper records showingfull particulars including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification. (c) According to the information and explanations given to us andthe records examined by us the title deeds of immovable properties as disclosed in Note3 on property plant and equipment to the Standalone Financial Statements are held in thename of the Company except for the following: (i) title deeds of freehold land with grossand net carrying amount of Rs. 60.44 crore and title deeds of buildings with grosscarrying amount and net carrying amount of Rs. 83.48 crore and Rs. 74.49 crorerespectively which are held in the name of erstwhile companies which have subsequentlybeen amalgamated with the Company; (ii) title deeds of freehold land with gross and netcarrying amount of Rs. 202.67 crore and title deeds of buildings with gross carryingamount and net carrying amount of Rs. 95.62 crore and Rs. 76.91 crore respectively whichare not readily available. ii. The physical verification of inventory (excluding stockswith third parties) have been conducted at reasonable intervals by the Management duringthe year. In respect of inventory lying with third parties these have substantially beenconfirmed by them. In respect of inventories of stores and spares the
Management has a verification programme designed to cover the items over a period ofthree years. The discrepancies noticed on physical verification of inventory as comparedto book records were not material. iii. The Company has granted unsecured loans to elevencompanies covered in the register maintained under Section 189 of the Act. The Company hasnot granted any loans secured or unsecured to firms Limited Liability Partnerships orother parties covered in the register maintained under Section 189 of the Act. (a) Inrespect of the aforesaid loans the terms and conditions under which such loans weregranted are not prejudicial to the Company's interest except for two inter corporate loansaggregating Rs. 0.52 crore granted to two joint venture companies during the year endedMarch 31 2019 with a maximum amount of Rs. 1.12 crore from the aforesaid joint venturecompanies outstanding during the year. These companies are under liquidation and aretherefore in our opinion prejudicial to the Company's interests. (b) In respect of theaforesaid loans the schedule of repayment of principal and payment of interest has beenstipulated by the Company. Except for amounts aggregating Rs. 670.10 crore outstanding asat March 31 2019 towards principal and interest from four subsidiary companies and twojoint venture companies the parties are repaying the principal amounts as stipulatedand are also regular in payment of interest as applicable.
(c) In respect of the aforesaid loans the total amount overdue for more than ninetydays as at March 31 2019 is Rs. 640.58 crore outstanding from three subsidiary companiesand a joint venture company. In such instances in our opinion reasonable steps asapplicable have been taken by the Company for the recovery of the principal amounts andinterest. iv. In our opinion and according to the information and explanations given tous the Company has complied with the provisions of Section 185 and 186 of the Act inrespect of the loans and investments made and guarantees and security provided by it asapplicable.
v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified. In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of Sections 73 74 75 and 76 or any otherrelevant provisions of the Act and the Rules framed thereunder to the extent notifiedwith regard to the unclaimed deposits accepted from the public as applicable. Accordingto the information and explanations given to us no order has been passed by the CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any Court or anyother Tribunal on the Company in respect of the aforesaid deposits. vi. Pursuant to therules made by the Central Government of India the Company is required to maintain costrecords as specified under Section 148(1) of the Act in respect of its products. We havebroadly reviewed the same and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.vii. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund income tax goods and service taxthough there has been a slight delay in a few cases and is regular in depositingundisputed statutory dues including employees' state insurance sales tax service taxduty of customs duty of excise value added tax cess and other material statutory duesas applicable with the appropriate authorities other than arrear dues outstanding for aperiod of more than six months as at March 31 2019 in respect of pension set out below.We are informed that the Company has applied for exemption from operations of Employees'State Insurance Act at some locations. We are also informed that actions taken by theauthorities at some locations to bring the employees of the Company under the Employees'State Insurance Scheme has been contested by the Company and payment has not been made ofthe contributions demanded. The extent of the arrears of statutory dues outstanding as atMarch 31 2019 for a period of more than six months from the date they became payable areas follows:
|Name of the statute ||Nature of dues ||Amount (Rs. crore) ||Period to which the amount relates ||Date of payment |
|Coal Mines Pension Scheme 1998 ||Pension ||29.43 ||Oct'17 to Sept'18 ||April 23 2019* |
*Writ petition filed with High Court of Jharkhand subsequent to the balance sheet dateon April 24 2019.
Also refer Note 42 to the Standalone Financial Statements regarding management'sassessment on certain matters relating to provident fund.
(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of goods and service tax as at March 31 2019which have not been deposited on account of any dispute. The particulars of dues of incometax sales tax service tax duty of customs duty of excise and value added tax as atMarch 31 2019 which have not been deposited on account of a dispute are as follows:
|Name of the Statute ||Nature of dues ||Amount (net of payments) Rs. (crore) ||Amount paid (Rs. crore) ||Period to which the amount relates ||Forum where the dispute is pending |
|Income- tax Act 1961 ||Income Tax ||1427.24* ||965.00* ||1998-1999 2006-2008 ||Tribunal |
| || || || ||2009-2012 2013-2014 || |
| || ||235.82 ||100.00 ||2010-2011 2014-2015 ||Commissioner (Appeals) |
|Customs Act1962 ||Customs Duty ||3.95 ||0.07 ||2002-2003 ||High Court |
| || ||79.67 ||50.00 ||2005-2008 ||Commissioner |
|Central Excise Act1944 ||Excise Duty ||33.23 ||0.10 ||1988-1990 2003-2009 ||High Court |
| || ||1132.71 ||57.85 ||1990-1991 1992-1997 ||Tribunal |
| || || || ||1998-2017 || |
| || ||170.30 ||111.63 ||1988-1990 1994-2002 ||Commissioner |
| || || || ||2003-2004 2005-2017 || |
| || ||0.03 ||0.01 ||1998-1999 ||Joint Commissioner |
| || ||0.18 ||- ||1985-1987 1998-1999 ||Deputy Commissioner |
| || ||0.85 ||- ||1983-1985 ||Assistant Commissioner |
|Sales Tax Laws ||Sales Tax ||33.90 ||19.22 ||1983-1984 1991-1997 ||High Court |
| || || || ||2000-2004 2008-2009 || |
| || ||71.78 ||6.19 ||1977-1978 1980-1981 ||Tribunal |
| || || || ||1983-1985 1987-1988 || |
| || || || ||1989-1999 2000-2002 || |
| || || || ||2003-2005 2009-2011 || |
| || || || ||2013-2017 || |
| || ||247.17 ||7.06 ||1988-1990 1991-1992 ||Commissioner |
| || || || ||1993-1994 2001-2004 || |
| || || || ||2006-2007 2008-2009 || |
| || || || ||2010-2012 2013-2015 || |
| || ||1.91 ||- ||2011-12 ||Joint Commissioner |
| || ||28.18 ||2.47 ||2002-2003 2006-2010 ||Additional Commissioner |
| || || || ||2012-2015 || |
| || ||63.97 ||3.01 ||1975-1976 1983-1988 ||Deputy Commissioner |
| || || || ||1994-1995 1997-2009 || |
| || || || ||2013-2016 || |
| || ||61.77 ||3.40 ||1973-1974 1980-1997 ||Assistant Commissioner |
| || || || ||2004-2005 2008-2009 || |
| || || || ||2012-2013 2015-2016 || |
|Value Added Tax Laws ||Value Added Tax ||252.84 ||1.07 ||1994-1996 2007-2008 ||High Court |
| || || || ||2012-2016 || |
| || ||19.06 ||1.72 ||2005-2011 2012-2016 ||Tribunal |
| || ||273.75 ||0.89 ||2006-2015 2016-2017 ||Commissioner |
| || ||72.89 ||8.10 ||2010-2017 ||Joint Commissioner |
| || ||2.61 ||0.47 ||2005-2006 2012-2015 ||Additional Commissioner |
| || ||165.39 ||3.72 ||2005-2011 2012-2016 ||Deputy Commissioner |
| || ||1.63 ||0.06 ||1997-1998 2005-2006 ||Assistant Commissioner |
| || || || ||2015-2017 || |
*excluding net excess payments/adjustments for the year 2008-2009 aggregating Rs.123.21 crore.
|Name of the Statute ||Nature of dues ||Amount (net of payments) (Rs. crore) ||Amount paid (Rs. crore) ||Period to which the amount relates ||Forum where the dispute is pending |
|Finance Act1994 ||Service Tax ||1286.52 ||23.34 ||2004-2016 ||Tribunal |
| || ||5.98 ||0.13 ||2005-2013 2014-2017 ||Commissioner |
| || ||0.97 ||- ||2009-2010 ||Deputy Commissioner |
The following matters have been decided in favour of the Company although thedepartment has preferred appeal at higher levels:
|Name of the Statute ||Nature of dues ||Amount (net of payments) Rs. (crore) ||Period to which the amount relates ||Forum where the dispute is pending |
|Central Excise Act1944 ||Excise Duty ||235.48 ||2004-2005 ||Supreme Court |
| || ||16.98 ||2009-2010 2013-2014 ||Tribunal |
viii. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to any financial institution or bank or Government or dues to debentureholders as applicable as at the balance sheet date. ix. The Company has not raised anymoneys by way of initial public offer. In our opinion and according to the informationand explanations given to us the moneys raised by way of further public offer (includingdebt instruments) and term loans have been applied for the purposes for which they wereobtained. x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement. xi. The Company has paid/ provided for managerial remuneration in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Act. xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany. xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of relatedparty transactions have been disclosed in the Standalone Financial Statements as requiredunder Indian Accounting Standard 24 Related Party Disclosures specified under Section 133of the Act. xiv. The Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany. xv. The Company has not entered into any non-cash transactions with its directorsor persons connected with him. Accordingly the provisions of Clause 3(xv) of the Orderare not applicable to the Company. xvi. The Company is not required to be registered underSection 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions ofClause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
| ||Chartered Accountants |
| ||Russell I Parera |
|Place: Mumbai ||Partner |
|Date: April 25 2019 ||Membership Number 042190 |