1. We have audited the accompanying standalone financial statements of STEEL AUTHORITY OF INDIA LIMITED ('the Company'), which comprise the Balance Sheet as at 31 March 2024, the Statement of Profit and Loss (including other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory information, in which are included the returns for the year ended on that date audited by the branch auditors of the Company's branches/units/marketing regions as listed in Appendix 1.
2. In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the branch auditors as referred to in paragraph 17 below, except for the effects of the matters described in the Basis for Qualified opinion section of our report, 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 ('Ind AS') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Qualified Opinion
3. As referred in note 47.2(a)(i) to the accompanying standalone financial statements, the constitutional validity of the Entry Tax Act has been upheld by the Hon'ble Supreme Court and the matters relating to levy of entry tax are now pending before regular benches of the Supreme Court/Jurisdictional High Courts/Commercial Tax Department /assigned authorities. Pending decision by the other aforesaid Courts, the management is of the view that no adjustment is required in the accompanying standalone financial statements of the Company for the disputed entry tax demand in various states amounting to ? 724.02 crore (net of ? 137.72 crore recognised as a liability basis ongoing settlement proceedings as explained in the said note) as on 31 March 2024. However, in the absence of sufficient appropriate evidence to support the management's view, we are of the opinion that a provision for entry tax liability should be recognised in the standalone financial statements.
The Nine Judge Bench of the Hon'ble Supreme court, vide its order dated 11th November, 2016, upheld the Constitutional validity of the Entry tax legislations passed by the various States. However, the Bench directed that certain other matters raised by the Petitioner, such as matter relating to Entry tax on account of discriminatory rates resulting in entry tax liability amounting to ? 762.91 crore on iron Ore and Coking Coal in Bhilai-Durg area @ 6% as compared to lower rate of 1% on Coking Coal and 3% on Iron ore in rest of the areas of Chhattisgarh, Entry tax amounting to ^98.83 crore on goods entering into the local area of Jharkhand from other State etc. may be determined by regular benches hearing the matters. During the year, in the State of Chhattisgarh, applications were filed under settlement scheme (Chhattisgarh Settlement of Arrears of Tax, Interest and Penalty Act, 2023) for settlement of Entry Tax dispute pertaining to rate discrimination. The disputed amount are ? 762.91 Crore for which the settlement amount of ^137.72 crore as per scheme has been provided as on 31st March, 2024. Accordingly, various matters raised by SAIL are pending with Jurisdictional High Courts/assigned authorities/ Commercial Tax Department. Pending decision by the Courts, the disputed Entry Tax liabilities of ^724.02 crore have been treated by the Company as Contingent Liability.
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Comments
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Management's replies
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4. As referred in note 47.2(b) to the accompanying standalone financial Statements, current assets include advance of ? 587.72 crore paid under protest to Damodar Valley Corporation against the bills raised for supply of power for the period 2010-11 to 2016-2017. The matter is under litigation and currently pending before Jharkhand State Electricity Regulatory Commission (JSERC) for finalization of tariff. The management is of the view that the amount paid under protest is fully recoverable and thus, no adjustment is required in the accompanying standalone financial statements. However, in the absence of sufficient appropriate evidence to support the management's contention of recoverability of these balances, we are of the opinion that an allowance for possible non-recoverability of such advance should be created in the accompanying standalone financial statements.
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The Company's view is that the cases are sub-judice and pending for adjudication before the various judicial authorities for a long time. Further, the civil appeal filed by DVC pertaining to tariff of 2004-09 against the Order of the Appellate Tribunal for Electricity (APTEL), have been dismissed by the Hon'ble Supreme Court of India vide its Order dated 3rd December, 2018. Accordingly, State Electricity Regulatory Commission (SERC) will finalise the retail tariff as directed by APTEL, the financial implication of which can only be ascertained after the Tariff fixation by SERC. DVC filed its Retail Tariff Application in November, 2020 along with application for Annual Revenue Requirement before the Jharkhand State Electricity Regulatory Commission (JSERC) for the period 2006-07 to 2011-12 and also seeking adjustment of Revenue Gap/Surplus in the period of 201213 to 2014-15. The Company has also filed their objections on 28th December, 2020 to the aforesaid Application of DVC. JSERC finalised the Category-wise Retail Supply Tariff of DVC for the period from FY 2006-07 to FY 2011-12 vide order dated 31st October, 2023. However, DVC has preferred an appeal before Hon'ble APTEL against the order of the JSERC regarding the consideration of non-tariff income in totality in the tariff order. APTEL vide it's order dated 5th February, 2024 allowed the appeal of DVC with request to the commission to pass an order afresh at the earliest.
The above disputed demands stated at (3) and (4), contested on valid and bonafide grounds, have been treated as contingent liabilities as it is not probable that present obligations exist as on 31st March, 2024. Therefore, there is no adverse impact on Profit for the year.
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5.
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Impact of all the above qualifications on the accompanying standalone financial statements for the year ended 31 March 2024 is as under:
(Amounts in INR crore)
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Particulars
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As at 31st March 2024
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Reported
balances
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Balances after impact of all the qualifications which are quantified
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Other equity
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50,000.01
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49,018.41
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Deferred tax liability
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6,178.20
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5,848.06
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Other current assets
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4,541.05
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3,953.33
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Other current liabilities
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4,565.19
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5,289.21
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Our audit report on the standalone financial statements of the company for the year ended 31 March 2023 was also modified in respect of above matters.
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6. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ('ICAI') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained together with the audit evidence obtained by the branch auditors, in terms of their reports referred to in paragraph 17 of the Other Matter section below is sufficient and appropriate to provide a basis for our qualified opinion.
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Emphasis of matter
7. We draw your attention to the following matter:
a. Note 49.2 to the accompanying standalone financial statements, which describes that the revenue from operations include sales to government agencies aggregating to ? 11,162.37 crore for the year ended 31 March 2024 (cumulative upto 31 March 2024 of ? 25,661.61 crore) which is recognized on the basis of provisional prices as per the terms if sales with such Government agencies.
b. Note 49.15 to the accompanying standalone financial statements, regarding suspension of certain officers and employees of the Company basis directions from the Ministry of Steel, Government of India and related investigation to be conducted by external investigative agencies on certain matters relating to policy/pricing decisions of the Company. In view of the management, basis their internal assessment, the matter is not likely to have a material impact on the operations of the Company and/or these standalone financial statements.
Our opinion is not modified in respect of these matters.
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Key Audit Matters
8. Key audit matters are those matters that, in our professional judgment, and based on the consideration of the reports of the branch auditors as referred to paragraph 17 below, 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.
9. In addition to the matters described in the Basis for Qualified opinion, we have determined the matters described below to be the key audit matters to be communicated in our report.
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Sl.
No.
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Key audit matter
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How our audit addressed the key audit matter
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1.
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Provision and contingent liabilities relating to ongoing litigations
The Company is subject to a number of legal, regulatory and tax cases for which final outcome cannot be easily predicted and which could potentially result in significant liabilities. Management's disclosures with regards to provisions and contingent liabilities relating to ongoing litigations are presented in note 47.1 to the Company's Standalone Financial Statements. Refer note 3.15 for related material accounting policy information adopted by the Company.
The assessment of whether a liability is recognised as a provision or disclosed as a contingent liability in the standalone financial statements is inherently subjective and requires significant management judgement in determination of the cash outflows from the business, interpretation of applicable laws and regulations, and careful examination of pending assessments at various levels of regulatory authorities.
Since the amounts involved are significant and due to the range of possible outcomes leading to high estimation and uncertainty that requires significant management and auditor judgement, this matter is considered to be a key audit matter for the current year audit.
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our audit procedures included, but were not limited to the following:
obtained understanding of the process of identification and measurement of provisions and contingent liabilities relating to ongoing litigations implemented by the Management, through various discussions held with Company's legal and finance personnel.
Evaluated the design and tested the operating effectiveness of the controls put in place by the management in relation to assessment of the outcome of the pending litigations.
inspected the summary of litigation matters and discussed key developments during the year with the Company's Legal and Finance personnel.
inspected and evaluated, where applicable, external legal and/ or regulatory advice sought by the Company. obtained direct confirmations from the dealing lawyers for certain material ongoing litigations.
Discussed and challenged the management's assessment of the likelihood, magnitude and accounting of any liability that may arise in certain material cases. Accordingly, we reviewed the amount of provisions recognised and contingent liabilities disclosed in the standalone financial statements and exercised our professional judgment to assess appropriateness of such conclusions, involving experts as required.
evaluated the adequacy of disclosures made in the Company's standalone financial statements in accordance with the applicable accounting standards.
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Sl.
No.
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Key audit matter
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How our audit addressed the key audit matter
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2.
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Property, plant and equipment and intangible assets (including capital work in progress)
As at 31s March 2024 the Company has Property, Plant and Equipment ('PPE'), Intangible asset ('1a') and Capital Work-in-Progress ('CWIP') with carrying value of ^ 65,396.59 crore, ^ 1488.84 crore, ? 6140.57 crore, respectively, as disclosed in note 4, note 7 and note 5 of the accompanying Standalone Financial Statements. Refer note 3.1 for the material accounting policy information adopted by the Company for recognition and measurement of such non-current assets.
Determination of carrying values and their respective depreciation and amortisation amounts of PPE, IA and CWIP requires considerable management judgement. These include the decisions to capitalise or expense costs, the annual asset life review, the timeliness of the capitalisation of assets and the use of management's assumptions and estimates for the determination and measurement of assets retired from active use, in accordance with the requirements of Ind AS 16 - Property, Plant and Equipment ('Ind AS 16') and Ind AS 38 - Intangible Assets ('Ind AS 38').
The carrying value of CWIP also includes balances pertaining to longterm projects which requires careful examination of continuity and viability of such projects.
Considering the significance of amounts involved in the context of the balance sheet of the Company and the level of judgements and estimates required, we consider this to be a key audit matter in the current year audit.
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Our audit procedures included, but were not limited to the following: obtained an understanding of the management's process of recording the transactions pertaining to capital expenditure incurred by the company and evaluated the accounting policies adopted by the company in accordance with the requirements of Ind AS 16 and Ind AS 38.
Evaluated the design and tested the operating effectiveness of the controls put in place by the management in relation to the above process.
Tested the amounts capitalized during the year, on a sample basis, by inspecting supporting documents and evaluating whether assets capitalized satisfied the recognition criteria and were recognized accurately in the correct periods and with correct amounts.
Reviewed the judgements made by management in determination of carrying values of the specified noncurrent assets including the nature of underlying costs capitalized, determination of realizable value of the assets retired from active use, the appropriateness of useful lives applied in the calculation of depreciation as determined by technical assessment by management and external technical experts, where required, and evaluation of appropriateness of long standing CWIP balances pertaining to long-term projects.
Evaluated the appropriateness and adequacy of the related disclosures in the standalone financial statements in accordance with the applicable accounting standards.
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3.
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By-products inventory
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our audit procedures included, but
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refer to note 3.7 of summary of
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were not limited to the following:
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material accounting policy information
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obtained an understanding of the
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and other explanatory information for
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processes and procedures, including
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valuation of by-products amounting to
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controls relating to identification of
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^ 4938.11 crore as at 31st March 2024
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sub grade fines, iron and steel scrap
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and significant accounting judgements,
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embedded in BF slag and LD slag and
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estimates and assumptions related
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slime containing iron ore fines ('by-
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thereto and the note 3.21.4 of the
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products').
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standalone financial statements.
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Evaluated the accounting policy
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Inventories of by-products mainly
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adopted by the Company for valuation
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consist of sub-grade fines, iron and
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of the by-product inventory in
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steel scrap embedded in BF slag and LD
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accordance with the requirements
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slag and slime, and tailings containing
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of Ind AS 2, Inventory in conjunction
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iron ore fines, which are accumulated in
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with the EAC opinions obtained by the
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stock piles.
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management.
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Further, as explained in notes 49.10,
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In assessing management's assessment
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pursuant to the order of Ministry of
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of the value of byproducts, we discussed
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Mines, Government of India dated 16th
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in detail with the management to
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September 2019, certain by-products
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understand the procedures adopted
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were allowed to be sold and hence,
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in ascertaining the quantity and
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were valued for the first time in the
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quality (including gradation) of the by-
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previous years.
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products considered for valuation.
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The management of the Company also
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Management's estimate of the NRV
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sought the opinion of Expert Advisory
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was verified with reference to the
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Committee of the ICAI ('EAC Opinions')
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average selling price (ASP) published
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on recognition and measurement of
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by the Indian Bureau of Mines. We
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by-product inventories.
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also obtained technical analysis
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Valuation of such items requires
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report from external experts sought
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management to exercise significant
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by management for determining
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judgement in respect of use of
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the quantity of by- products and the
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estimates for determination of the
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chemical analysis report used by the
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quantity, quality and valuation rate of
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management for arriving at the quality
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these items.
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(including gradation) of fines.
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Further, basis the expected future
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Obtained management's working of
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salability and plans for captive
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estimated future sales / consumption
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consumption of such by-product
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used for classification of the by-
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inventories, the management has
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product inventory between current and
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classified inventory expected to be
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non-current, and tested the underlying
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sold / consumed after 12 months from
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assumptions basis our understanding
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the date of balance sheet, being the
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of the processing and further approvals
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operating cycle of the Company, as
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required for sale of such inventory in
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non-current inventory.
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addition to evaluating management's estimates on availability of demand for
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owing to the insignificant movement in sales/consumption of such by-
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such by-products.
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products inventory, the materiality
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Evaluated the appropriateness and
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of the carrying value thereof and the
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adequacy of the related disclosures in
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complexities discussed above, we have
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the standalone financial statements
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considered this area as a key audit
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in accordance with the applicable
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matter in the current year audit.
Further, the management's assessment of classification and valuation of aforesaid inventory as described in note 49.10 is considered fundamental to the understanding of the users of the standalone financial statements.
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accounting standards.
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Information other than the financial statements and auditors' report thereon
10. The Company's Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor's report thereon. the annual report is expected to be made available to us after the date of this auditor's report. our opinion on the standalone financial statements does not cover the other information and we will 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 identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those charged with Governance for the
Standalone Financial Statements
11. The accompanying standalone financial statements have been approved by the Company's Board of Directors. the Company's Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind As specified under section 133 of the act 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 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
12. in preparing the standalone financial statements, the Board of directors 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
13. the Board of directors are also responsible for overseeing the Company's financial reporting process.
Auditors' responsibilities for the audit of the Standalone financial statements
14. 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 Standards on Auditing 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.
15. As part of an audit in accordance with Standards on auditing, specified under section 143(10) of the act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. the risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. under section 143(3)(i) of the act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
• Conclude on the appropriateness of Board of Directors' 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 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation; and
• Obtain sufficient appropriate audit evidence regarding the financial statements/ financial information of the Company and its branches/units/marketing regions or the business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements of the Company and such branches/units/marketing regions included in the financial statements, of which we are the independent auditors. For the other branches/units/marketing regions included in the financial statements, which have been audited by the branch auditors, such branch auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
16. 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.
17. 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.
18. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 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.
Other Matters
19. We did not audit the annual financial statements/financial information of 11 branches/units/marketing regions included in the standalone financial statements of the Company whose annual financial statements/financial information reflects total assets of ? 64,560.81 crore as at 31 March 2024, and the total revenues of ? 40,094.16 crore, total net loss after tax of ? 49.65 crore, total comprehensive loss of ? 109.03 crore, and cash flows (net) of ? 4.29 crore respectively for the year ended on that date, as considered in the standalone financial statements. These annual financial statements/financial information have been audited by the branch auditors whose reports have been furnished to us by the management, and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of branches, and our report in terms of sub-section (3) of section 143 of the Act in so far as it relates to the aforesaid branches, is based solely on the report of such branch auditors.
Our opinion above on the standalone financial statements, and our report on other legal and regulatory requirements below, are not modified in respect of the above matters with respect to our reliance on the work done by and the reports of the branch auditors.
20. The standalone financial statements of the Company for the year ended 31 March 2023 were audited jointly by the predecessor auditors, M/s Tej Raj & Pal, M/s S. Jaykishan, M/s Walker Chandiok & Co. LLP and M/s K A S G & Co., who have expressed a qualified opinion on those standalone financial statements vide their audit report dated 25th May 2023.
Report on Other legal and Regulatory Requirements
21. Based on our audit, and on the consideration of the reports of the branch auditors as referred to in paragraph 17 above, we report that the provisions of section 197 read with Schedule V to the Act are not applicable to the Company since the Company is a Government company as defined under section 2(45) of the Act. Accordingly, reporting under section 197(16) is not applicable.
22. As required by the Companies (Auditor's Report) Order, 2020 ('the Order') issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
23. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, and on the consideration of the reports of the branch auditors as referred to in paragraph 17 above, we report, to the extent applicable, that:
(a) We have sought and except for the matters described in the Basis for Qualified Opinion section, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the accompanying standalone financial statements;
(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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us, except for the effects of the matters described in the Basis for Qualified Opinion section and except for the matters stated in paragraph 21(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended).
(c) The reports on the accounts of the branch offices of the Company audited under section 143(8) of the Act by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report;
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Comments
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Management's Replies
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(d) The standalone financial statements dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us;
(e) Except for the effects of the matters described in the Basis for Qualified opinion section, in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
(f) the provisions of section 164(2) of the act are not applicable to the Company since the Company is a Government company as defined under section 2(45) of the Act;
(g) the qualification/modification relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 3 of the Basis for Qualified opinion section, paragraph 21(b) above on reporting under section 143(3)(b) of the act and paragraph 21(i)(vi) below on reporting under Rule 11(g) of the Companies (audit and auditors) rules, 2014 (as amended);
(h) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company as on 31 March 2024 and the operating effectiveness of such controls, refer to our separate report in annexure II wherein we have expressed an unmodified opinion; and
(i) 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 and based on the consideration of the reports of the branch auditors as referred to in paragraph 17 above:
i. Except for the effects of the matters described in paragraph 3 of the Basis for Qualified opinion section, the Company, as detailed in note 47.1 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2024;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2024;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31 March 2024 except ? 1.00 crore pertaining to unclaimed matured deposits which was required to be deposited in the Investor Education and Protection Fund during the year ended 31st March 2018 and which has not been deposited till 31st March 2024;
iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in note 51.7(a) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities ('the intermediaries'), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ('the Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf the ultimate Beneficiaries;
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in note 51.7(b) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ('the Funding Parties'), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ('ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the ultimate Beneficiaries; and
(c) Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.
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The matured deposit have already been claimed by the successors/relatives of the individuals but is pending for submission of document of proof of legal heir by the claimants. appropriate procedure is being followed for refunding the matured deposit to the legal heirs.
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v. The interim/final dividend paid by the Company during the year ended 31 March 2024 in respect of such dividend declared for the previous year is in accordance with section 123 of the act to the extent it applies to payment of dividend .
As stated in note 49.16 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2024 which is subject to the approval of the members at the ensuing annual General Meeting. The dividend declared is in accordance with section 123 of the act to the extent it applies to declaration of dividend.
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Comments
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Management's replies
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vi. Based on our examination which included test checks except for the instance mentioned below, the Company, in respect of financial year commencing on 1 april 2023, have used accounting software for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same have been operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with, other than the consequential impact of the exception given below.
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audit trail facility is implemented in one of the Plants in Q1 2024-25 and will be implemented shortly in the 2nd Plant also.
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Nature of exception noted
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Details of Exception
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Instances of accounting software for maintaining books of account which did not have a feature of recording audit trail (edit log) facility
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The audit trail feature of certain accounting software used for maintaining books of accounts of two plants does not have a feature of recording audit trail (edit log) facility.
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Instances of accounting software for maintaining books of account for which the feature of recording audit trail (edit log) facility was not operated throughout the year for all relevant transactions recorded in the software
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The audit trail feature was not enabled at the database level for certain accounting software for corporate office, one unit, five marketing regions and seven plants to log any direct data changes, used for maintenance of all accounting records by these corporate office/unit/marketing regions/plants.
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The matter is under review for necessary action in the current year.
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24. As required by section 143(5) of the act, we give in ^nnexure 111', a statement on the matters specified in the directions issued by the Comptroller and auditor General of India in respect of the Company.
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For Walker Chandiok & Co LLP For J N Gupta & Co LLP
Chartered Accountants Chartered Accountants
Firm Registration No. 001076N/N500013 Firm Registration No. 006569C/
W100892
CA. Nalin Jain CA. Devendra upadhyay
Partner Partner
M.No. 503498 M.No. 076727
uDIN: 23503498BGRGBX1676 uDiN: 24076727BKFuCN4486
for S P a R K & associates Chartered for Vinod Singhal & Co LLP
accountants LLP Chartered accountants
Chartered accountants Firm registration No. 005826C/
Firm registration No. 005313C/C400311 C400276
CA. Nilesh gupta CA. Vinod Kumar Singhal For and on behalf of Board of directors
Partner Partner
M.No. 406020 M.No. 074391
uDIN: 24406020BKFTTo1496 uDIN: 24074391BKJRYG8434 Sd/-
(Amarendu Prakash) Chairman
Date: 20th May 2024 Date: 08th August, 2024
Place: New Delhi Place: New Delhi
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