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INDIA TOURISM DEVELOPMENT CORPORATION LTD.

28 November 2023 | 03:52

Industry >> Hotels, Resorts & Restaurants

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ISIN No INE353K01014 BSE Code / NSE Code 532189 / ITDC Book Value (Rs.) 39.86 Face Value 10.00
Bookclosure 20/09/2023 52Week High 512 EPS 6.90 P/E 59.00
Market Cap. 3490.81 Cr. 52Week Low 276 P/BV / Div Yield (%) 10.21 / 0.54 Market Lot 1.00
Security Type Other

AUDITOR'S REPORT

You can view full text of the latest Director's Report for the company.
Year End :2021-03 

Independent Auditor’s Report

To,

The Members of India Tourism Development Corporation Limited

Revised Report on the Audit of Standalone Financial Statements

Our report dated 20th July, 2021 on the Standalone Financial Statements for the year ended March 31, 2021, has been revised to give effect to the observations made by the Comptroller & Auditor General of India in the supplementary audit carried out by them under Section 143(6)(a) of the Companies Act, 2013.

Opinion

We have audited the Standalone Financial Statements of India Tourism Development Corporation Limited

(“the Company”) which comprise the Balance Sheet as at March 31, 2021, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Cash Flow Statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the Standalone Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and 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 (financial position) of the Company as at March 31, 2021, and its profit/loss (financial performance including other comprehensive income), changes in equity and its cash flow for the year ended on that date

Basis for Opinion

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 Auditors’ 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 (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 there under, 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.

Emphasis of Matter

We draw attention to the following notes on the Standalone Financial Statements being matters pertaining to India Tourism Development Corporation Limited requiring emphasis by us:

1. MSMED Act compliances

The Company does not collate maintain and present the details of MSME Vendors registered under Micro Small and Medium Enterprises Development (MSMED) Act 2006.Hence, Compliances of procurement; provision for interest, if any, on outstanding due to MSME units could not be verified. We, therefore, are unable to determine the delay in making payment to such entities and liability of interest and compliance on such delayed payments in terms of provisions of MSMED Act.(Refer point no. 31 to note no. 39 of the Standalone Financial Statements)

2. Unlinked receipts

Unlinked receipts of Rs 50.35 Lakhs on account of receipts from debtors against billing by the Company, which could not be matched with the amount standing to the debit of the receivables is appearing as liabilities “Advance from Customers” in the standalone financial statements of the Company. To that extent the Trade Receivables and Current Liabilities are overstated. (Refer foot note to note no. 26 of the Standalone Financial Statements)

3. Confirmation of receivables/payables

The Company does not follow a system of obtaining confirmations, performing reconciliations and/or assessment in respect of amount recoverable from Trade Receivables; Deposits with Government Departments and others; amount recoverable from suppliers/ vendors; employees; and other parties. Similarly Company does not follow a system of obtaining confirmations, performing Reconciliations and/ or assessment of correct balances in respect of amount payable to Trade Payables; Deposits (EMD/SD); Government Departments; and other parties. Accordingly, amount receivable from and payable to various parties are subject to confirmations, reconciliations and/ or assessments.

Pending such confirmations, reconciliations, and/or assessment, the impact thereof on the Standalone Financial Statements are not ascertainable and quantifiable. (Refer point no. 1 to note no. 39 of the Standalone Financial Statements)

At Samrat Hotel (unit of ITDC) “Trade receivables”, includes amount due from M/s kayo Enterprises Rs. 1058.86 Lakhs which is pending since long. As per explanation and details shared with us, M/s Kayo Enterprises Pvt. Ltd. has entered into a license Agreement dated 06.01.2018 with the Hotel Samrat - a unit of ITDC for occupying space in Hotel Samrat for running restaurant on license fees basis for a period of Five years. M/s Kayo Enterprises (The licensee) has failed to make the payment of license fees on regular basis. Due to non- payment of license fees the license agreement has been terminated on 14.05.2020 and Hotel Samrat has filed cases under section 138/141 to the tune of Rs 800 Lakhs ( approx.) which is almost equal to the outstanding amount (after adjusting the existing security deposit of Rs 201.67 lakhs). Also the bank guarantee of Rs 201.67 lakhs has been encashed in subsequent

year. Further the Fixed Assets and equipment are lying in the premises of Hotel Samrat, which is under lien to Hotel Samrat as per the agreement and can be auctioned as per direction of Estate Office, ITDC under PPE Act. Since the management is confident of recovering that said amount, therefore, no provision is required/ made against the same (Refer point no. 26 of note no. 39 of Standalone Financial Statements).

4. TDS Receivable/income tax assessments

TDS Receivable in respect of years prior to F.Y. 2019-20 amounting to ' 3612.14 lakhs is appearing in the books of accounts as on 31st March, 2021, for which no reconciliation between books of accounts, 26 AS, and claim in Income tax return is available. Therefore, correctness of TDS receivable could not be verified, and hence we are unable to ascertain the impact thereof in the standalone financial statements. (Refer foot note no. 2 to note no. 13 of Standalone Financial Statements)

5. Compensation for closure of Hotel Janpath

In terms of decision of Government of India, Operations of Hotel Janpath was closed w.e.f. 30-10-2017 and property was handed over to the Ministry of Urban Development. The issue of compensation to be receivable by the Company for loss of business opportunity arising due to decision of the Government of India for closure of operations of Hotel is remained pending. The amount of VRS paid to employees amounting Rs 644.14 lakhs is being shown as recoverable from the Government as on 31st March 2021. (Refer point no. 18(a) of note no. 39 of Standalone Financial Statements)

6. Loss/shortage of Property, Plant & Equipment

Records for Property Plant and Equipment (Fixed Assets) are not properly maintained and updated at various units. Further physical verification, wherever is made from

the statements having no basis is futile exercise with no results including not capable of reconciliation with books of accounts and /or FAR. Hence impact of loss/shortage/scrapped assets remains indeterminable. (Refer foot note (f) of note no. 2 of Standalone Financial Statements)

7. Status of Joint Venture Company

The Company formed Joint Venture Company withAldeasa of Spain by making of investment in 5000 equity shares of ' 10/- each, for which provision has been made as Bad & Doubtful in earlier years. The said Company has been struck off by the Registrar of Companies and dissolved w.e.f. 21st Aug, 2017. The liability ' 226.51 lakhs as on 31st March 2021 is outstanding towards ITDC Aldeasa, apart from a deposit of ' 108.38 lakhs. (Refer point no. 17 of note no. 39 and foot note no. 2 to note no. 10 of the Standalone Financial Statements)

8. Investments in Ranchi Ashok Bihar Hotel Corporation Ltd. (RABHCL)

The Company has made investment in Ranchi Ashok Bihar Hotel Corporation Ltd in the form of 24988 equity shares of Rs 1000 of each aggregating is ' 249.88 Lakhs. Payment for disinvestment as decided against the same has been received and shown as liability and differential surplus amount of ' 56.12 lakhs therein has not been booked due to pendency of shares transfer formalities. (Refer point no 18(g) to note no. 39 of the Standalone Financial Statements)

9. Security deposit with DIAL

At Ashok International Trade Division (AITD-A unit of ITDC), the sum of ' 160.97 lakhs paid in the year 2006-07 as security deposit in the form of fixed deposit (FD) receipt in favour of Delhi International Airport Private Limited (DIAL) was shown as recoverable. The FD was encashed during 2007-08 by DIAL on account of service tax charged by DIAL in billing of service provided to the Company. This is being disputed

by the Company in the past. However, the management, after making due assessment, the provision has been made for doubtful debts in the F.Y 202021. (Refer to point no. 1 to note no. 38 of the Standalone Financial Statements)

10. Interest on loans given to subsidiary companies

Interest bearing loans were given to subsidiary companies from time to time in the past and in the year under audit. The subsidiaries are showing interest as expenses in their books, but the Company has not considered interest as income except to the extent of TDS paid by subsidiaries thereon.

During the F.Y. 2020-21, Principal loan along with interest as stipulated has been received from Ranchi Ashok Bihar Hotel Corporation Ltd. and accounted for in the Books. As regards remaining subsidiaries, Interest Income for the period from 01.04.2016 onward (From implementation of Ind AS accounting) has been considered amounting ' 266.46 Lakhs (Interest minus TDS). However, interest income for the period prior to 01.04.2016 (the period prior to implementation of Ind AS) amounting to ' 255.40 Lakhs has not been considered in the books. (Refer point no. 13 to note no. 39 of Standalone Financial Statements)

11. Stocks of stores, crockery, cutlery, etc.

The consumption of stock of stores, crockery, cutlery, etc has been worked out by the Company by adding to the opening balances, purchases made during the year and deducting there from the closing balance at the year end based on physical verification of the inventories, which is valued at cost instead of Lower of cost or NRV as per Accounting policy of the Company. Accordingly separate impact of wastage/shortage/loss/theft included in the consumption thereof as well as valuation difference in the Standalone Financial Statements of the Company remains indeterminable. However, as

per management, efforts were made to exercise on the same and assessed the amount insignificant. (Refer point no. 3 to note no. 39 of the Standalone Financial Statements)

12. Fire accident at ITDC DFS Chennai and DFS Mumbai

A fire accident occurred at unit of ITDC, DFS Chennai on 27th April 2020. Company filed an insurance claim for loss of stock and property of ' 58.41lakhs. The matter was reported as pending with surveyor for claim settlement. (Insurer -National Insurance Company Ltd).

A fire accident was also occurred at DFS the Mumbai on 30.03.2021, in which unit suffered loss of stock and Fixed Assets against which claim was lodged for ' 48.30 lakhs. The process of claim assessment and settlement reported still under process. (Refer point no 14 and 16 to note no. 39 of the Standalone Financial Statements)

13. Revenue from License fee

The Company has not generated invoices for license fees on licensees of Ashok Hotel, Samrat Hotel & Taj Restaurant to the tune of ' 1292.59 Lakhs for the period upto 30.09.2020 on account of Covid-19 pandemic the licensees have disputed the same though the Board of Directors has denied for the waiver. The sales of services from License fee and assets of the Company are understated to that extent. The matter was reported under active consideration of ITDC management. (Refer point no. 11 to note no. 39 of the Standalone Financial Statements)

At Samrat Hotel (a unit of ITDC), a licensee viz Good Times Restaurant Pvt. Ltd. filed claim towards refund of licensee fee. A sum of ' 904.16 Lakhs has been deposited by the Company as per interim orders of High Court dated 24.12.2020 (including interest). The matter is in appeal before Hon’ble High court, Delhi. Management is confident for no liability and hence no provision has been considered. (Refer point no

5 to note no. 38 of the Standalone Financial Statements)

14. Ashok Tours and Travels, Chennai

In respect of Ashok Tours & Travels (ATT- Chennai- A unit of ITDC), out of total amount of ' 200 lakhs appearing in their books as “Advance Others” being amount deposited with “The Registrar General, High Court, Chennai 104”, out of which an amount of ' 100 lakhs has been withdrawn by the landlady as per the court order dated 25.09.2019, the same has been booked as expense during the financial year 2019-20. (Refer point no. 3 to note no. 38 of the Standalone Financial Statements)

15. Hotel Jammu Ashok

There has been an incidence of theft of ' 0.71 lakhs at Hotel Jammu Ashok (A unit of ITDC) on May 09, 2020 the same is evidenced by the FIR dated May 11, 2020, wherein theft of inventory has been reported. However, the amount had been later recovered. (Refer point no. 15 to note no. 39 of the Standalone Financial Statements). The Financial Statements of Hotel Jammu Ashok (Closed during the Year) have been merged with the Head Quarter without closer of audit of the same. (Refer point no. 15 to note no. 39 of the Standalone Financial Statements).

16. Ashok Consultancy and Engineering Services (ACES)

In Ashok Consultancy and Engineering Services ( ACES- A unit of ITDC), out of total 68 projects, 52 projects were completed/closed but not closed in books of accounts as final bills were reportedly not received/settled. (Refer point no. 22 of note no. 39 of the Standalone Financial statements)

17. Turnover of Hyderabad House unit of ITDC

Turnover of Hyderabad House (A unit of ITDC) was being shown to the extent of supervision charges received over and above the cost of material supplied and services rendered. From the year 2020-21 the total amount of material

supplied, services rendered and supervision charges has shown as turnover and accordingly the corresponding amount of previous year has been amended. However, there will be no impact on profitability. (Refer point no. 12 to note no. 39 of Standalone Financial Statements)

18. Legal / interest etc. on contingent liabilities

Amount indicated as contingent liabilities/ claims against the company reflects basic values. Legal expenses interest and other costs not considered being indeterminable. (Refer foot note (2) to note no. 38 of the Standalone Financial Statements)

19. Paintings & Antiques at Hotel Ashok, Delhi

Certain painting and antiques are placed in Hotel Ashok, New Delhi (A unit of ITDC). The source of receipts whereof is not available on record. Management has identified the inventory during the Financial Year 2020-21, valuation whereof was reported in process and hence the same have not been accounted for in the Standalone Financial Statements for the year 202021. (Refer point no. 23 to note no. 39 of the Standalone Financial Statements)

Our opinion is not modified with respect of above matters of Emphasis.

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:

Sl. No.

Key Audit Matter

How our audit addressed the Key Audit Matter

1

Deferred Tax Asset:

We have assessed the management’s

The Company has recognised deferred tax

judgement relating to the forecasts of future

asset. The recoverability of this deferred

revenue, taxable profits and evaluated

tax asset is dependent upon the generation

the reasonableness of the considerations/

of sufficient future taxable profit to utilise

assumptions underlying the preparation of

such entitlement within the stipulated period

these forecasts.

prescribed under the Income Tax Act, 1961.

Based on the above procedures performed,

We identified this as a key audit matter

the recognition and measurement of deferred

because significant judgement is required

tax asset relating to MAT credit entitlement

in forecasting future taxable profits for recognition of deferred tax asset.

are considered adequate and reasonable.

Sl. No.

Key Audit Matter

How our audit addressed the Key Audit Matter

2

Contingent Liabilities:

There are various litigations pending before various forums against the Company and management’s judgement is required for estimating the amount to be disclosed as contingent liability.

We identified this as a key audit matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and it may be subject to management bias.

Refer note no. 38 of the Standalone Financial Statements.

We have obtained an understanding of the Company’s internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures:

- understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases;

- discussing with management any material developments and latest status of legal matters;

- read various correspondences and related documents pertaining to litigation cases produced by the management and relevant external legal opinions obtained by the management and performed substantive procedures on calculations supporting the disclosure of contingent liabilities;

- examining management’s judgements and assessments whether provisions are required;

- considering the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote;

- reviewing the adequacy and completeness of disclosures;

Based on the above procedures performed, the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable.

3

Discontinued Operations and Assets Held for Sale:

Assets of the Company continue to be held for sale and discontinued operations as at the balance sheet date.

Refer to note no. 36 and point no. 18, 19 and 20 to note no. 39 of Standalone Financial Statements.

We analyzed the management’s estimate of realizable value.

Based on our procedures, we noted no exceptions and consider management’s approach and assumptions to be reasonable.

Sl. No.

Key Audit Matter

How our audit addressed the Key Audit Matter

4

Uncertain Taxation Matters

The Company has material uncertain tax matters under dispute which involves significant judgement to determine the possible outcome of these disputes.

Refer note no. 38 of the Standalone Financial Statements.

We assessed the management’s underlying assumptions in estimating the tax provision and the possible outcome of the disputes.

We also considered legal precedence and other rulings, including in the Company’s own case, in evaluating management’s position on these uncertain tax positions.

5

Investments in Subsidiaries

The Company holds investments in Subsidiaries of '927.98 lakh (equity and preference) out of which investments of '846.38 lakh (equity and preference) pertains to Subsidiaries which has significant accumulated losses. These subsidiaries are currently under disinvestment. However, Company has received '306 lakhs in payment against of investment of '249.88 Lakhs in Ranchi Ashok Bihar Corporation Ltd and shown as liability till the completion of share transfer formalities.

We assessed the management’s assumptions and the past trends wherein the amount received on disinvestment by the Company were much more than the amount originally invested in the said subsidiary Companies.

As a result of aforesaid, we agree with the management that the carrying values of these investments held by the Company are supportable in the context of Company’s Financial Statements.

Refer footnote to note no. 3 of the Standalone Financial Statements.

Other Matter

1. Verification of inventory

Due to the continuation of Covid-19, we were not able to physically observe the complete physical verification of inventory that was carried out by the management at the year end. We however, performed alternative procedures to obtain Audit Evidence as prescribed in the SA 501 ‘Audit Evidence-Specific Consideration for selected items’.

2. Ashok Tours and Travels, (ATT) Delhi

The Company has entered into arrangements for marketing of air tickets etc. In terms of arrangement, the agency M/s Shree Plan Your Journey Pvt. Ltd. (GSA) has to deposit an amount as security as well as against out standings through them. As per terms and conditions, evaluation is to be made on monthly basis of outstanding receivables and obtains remittance from GSA. No proper evaluation, reconciliation as on 31.03.2021

and confirmation was available. Instead of making recovery from GSA, ' 300 Lakhs were paid by the Company on 27.08.2020 without any justification. Based on audited accounts of the units, the excess credit availed by GSA as on 31st March 2021 is ' 562.89 lakhs (' 1343.73 lakhs outstanding - ' 780.84 lakhs credit balances).

3. Sale of Air Tickets from ATT units

The Contract or arrangement is between Airlines and Ashok Tours and Travels (ATT- A unit of ITDC) for the purchase of tickets in the name of customers of ATT and accordingly accounts are settled between the two for purchase of tickets and make payment after deductions /adjustments for refund of tickets cancelled and/or incentives. ATT has arrangement with its customers for sale of air tickets for which invoices are generated. Based on expert’s opinion, the amount of services charges made over and above the cost of Air tickets is being shown as revenue, while the cost of Air tickets are neither shown

as purchases nor turnover of the Company. The management represented that this is the practice of the Industry. This does not affect the profitability of the Company but Turnover and purchases are understated to that extent.

4. Security Deposits paid by ATT Chennai

Security Deposits to the tune of ' 4.79 lakhs were paid by ATT Chennai carried over since long. Neither reconciliation nor other steps appear to be taken in this regard including writing of the same, if required.

5. Leave Encashment Paid

Total amount of leave encashment paid during the F.Y. 2020-21 is amounting to ' 750.12 lakh. Disclosure for the same is not reflected in Sub-Note 32 of the Standalone Financial Statements.

6. Accounts not audited by us

We did not audit the Financial Statements of 28 branches included in the Standalone Financial Statements of the Company whose Financial Statements reflected total assets of ' 17055.11 Lakh as at March 31, 2021 and total revenue of ' 9977.19 lakh for the year ended on that date, as considered in the Standalone Financial Statements of these branches have been audited by the respective branch auditors, whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosure included in respect of these branches, is based solely on the report of such branch auditors.

We also did not audit the financial statement of Jammu Unit, which was closed during the F.Y. 2020-21 and merged with Head Quarter without closer audit of the same having total assets of ' 117.50 lakhs and loses of ' 86.74 before closure.

Our opinion is not modified with respect of above matters.

Information other than the Standalone Financial Statements and Auditors’ Report Thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the Standalone Financial Statements and our auditor’s report thereon.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that 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, total comprehensive income, changes in equity and cash flows of the company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended. 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 misstatements, 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 the operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financial reporting

process.

Auditor’s Responsibility for 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate Internal Financial Controls system with respect 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 Ind As 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 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 most significance in the audit of standalone Ind AS 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 we would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act and on the basis of such checks of the books and records of the Company as we have considered appropriate and according to the information and explanation given to us, we give in the “Annexure 1” statement on the matters Specified in paragraphs 3 and 4 of the Order.

2. We are enclosing our report in terms of section 143(5) of the Act, on the basis of such checks of the books and records of the Company as we Considered appropriate and according to the information and explanation given to us, in the Annexure’2’ on the directions/ sub directions issued by the Comptroller and Auditor General of India.

3. As required by section 143(3) of the Act, and subject to matter of emphasis, key matters, other matters stated above and Notes to Standalone Financial Statements, 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 accounts 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 Change in equity and the statement of Cash Flow dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.

e) Being a Government Company, pursuant to notifications NO. GSR 463( E ) dated 05th June 2015 Issued by the Ministry of corporate Affairs, Government of India, provisions of sub section(2) of section

164 of the Act, are not applicable to the Company.

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-3’.

g) As per Notification no. GSR 463(E) dated June 05, 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Act is not applicable to the Government Companies. Accordingly reporting in accordance with requirement of provisions of section 197(16) of the Act is not applicable on the Company.

h) With respect to other matters 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 and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in Standalone Financial Statements - Refer note no -38 of 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; and

iii. There had been no delay in transfer, to the Investor Education and Protection Fund by the Company.

For J K Sarawgi & Company Chartered Accountants (FRN. 006836C)

UDIN: 21009878AAAABB4089 (CA LS Khandelwal) Place: New Delhi Partner

Date: 13/10/2021 M.No. 009878