KYC is one time exercise with a SEBI registered intermediary while dealing in securities markets (Broker/ DP/ Mutual Fund etc.).   |   Prevent unauthorized transactions in your account – Update your mobile numbers / email ids with your stock brokers. Receive information of your transactions directly from exchange on your mobile / email at the EOD | Filing Complaint on SCORES - QUICK & EASY a) Register on SCORES b) Mandatory details for filing complaints on SCORE - Name, PAN, Email, Address and Mob. no. c) Benefits - speedy redressal & Effective communication   |   BSE Prices delayed by 5 minutes... << Prices as on Aug 11, 2022 >>  ABB India 2798.4  [ 0.98% ]  ACC 2228.6  [ 0.06% ]  Ambuja Cements Ltd. 380.3  [ 0.03% ]  Asian Paints Ltd. 3404.9  [ -0.22% ]  Axis Bank Ltd. 759.2  [ 2.75% ]  Bajaj Auto 4031.2  [ -0.08% ]  Bank of Baroda 123.2  [ 3.83% ]  Bharti Airtel 709.55  [ -0.76% ]  Bharat Heavy Ele 52.9  [ 0.57% ]  Bharat Petroleum 328.25  [ -0.03% ]  Britannia Ind. 3640.45  [ -0.17% ]  Cairn India Ltd. 285.4  [ 0.90% ]  Cipla 1038.4  [ 0.02% ]  Coal India 218.6  [ -0.57% ]  Colgate Palm. 1576.1  [ -0.64% ]  Dabur India 582.05  [ -0.46% ]  DLF Ltd. 372.45  [ 1.10% ]  Dr. Reddy's Labs 4257.15  [ 0.35% ]  GAIL (India) 128.7  [ -1.61% ]  Grasim Inds. 1599.85  [ -0.69% ]  HCL Technologies 962.05  [ 1.00% ]  HDFC 2453.6  [ 2.32% ]  HDFC Bank 1486.75  [ 1.42% ]  Hero MotoCorp 2785.3  [ 0.33% ]  Hindustan Unilever L 2612.35  [ -1.04% ]  Hindalco Indus. 433.5  [ -1.49% ]  ICICI Bank 859.3  [ 1.27% ]  IDFC L 62.25  [ 2.81% ]  Indian Hotels Co 277.3  [ 3.43% ]  IndusInd Bank 1078.95  [ 1.60% ]  Infosys 1619.7  [ 1.14% ]  ITC Ltd. 306.3  [ -1.56% ]  Jindal St & Pwr 398.05  [ 0.44% ]  Kotak Mahindra Bank 1854.15  [ 1.46% ]  L&T 1867.25  [ 0.68% ]  Lupin Ltd. 689.9  [ 3.02% ]  Mahi. & Mahi 1265.55  [ -0.15% ]  Maruti Suzuki India 8818  [ -0.69% ]  MTNL 23.7  [ 0.85% ]  Nestle India 19688.45  [ -0.39% ]  NIIT Ltd. 353.75  [ 1.80% ]  NMDC Ltd. 115.75  [ -0.26% ]  NTPC 153.55  [ -1.38% ]  ONGC 132.7  [ -0.86% ]  Punj. NationlBak 33.4  [ 1.21% ]  Power Grid Corpo 222.8  [ -0.25% ]  Reliance Inds. 2590.2  [ 0.32% ]  SBI 524.55  [ 1.95% ]  Vedanta 256.4  [ -0.10% ]  Shipping Corpn. 112.05  [ 5.61% ]  Sun Pharma. 920  [ 0.07% ]  Tata Chemicals 1075.3  [ 0.10% ]  Tata Consumer Produc 773.3  [ -2.13% ]  Tata Motors Ltd. 476.65  [ 0.22% ]  Tata Steel 109.1  [ -0.14% ]  Tata Power Co. 229.45  [ 0.44% ]  Tata Consultancy 3422.45  [ 1.98% ]  Tech Mahindra 1077.15  [ 2.12% ]  UltraTech Cement 6595.35  [ 0.06% ]  United Spirits 784.9  [ 1.08% ]  Wipro 438.4  [ 1.93% ]  Zee Entertainment En 248  [ -0.82% ]  

Company Information

Indian Indices

  • Loading....

Global Indices

  • Loading....

Commodity

  • Loading....

Forex

  • Loading....

ULTRATECH CEMENT LTD.

11 August 2022 | 12:00

Industry >> Cement

Select Another Company

ISIN No INE481G01011 BSE Code / NSE Code 532538 / ULTRACEMCO Book Value (Rs.) 1,747.15 Face Value 10.00
Bookclosure 17/08/2022 52Week High 8269 EPS 254.42 P/E 25.93
Market Cap. 190439.21 Cr. 52Week Low 5157 P/BV / Div Yield (%) 3.78 / 0.58 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 :2022-03 

Description of Key Audit Matter

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of UltraTech Cement Limited (the “Company”), its Employees Welfare Trust (“Trust”), which comprise the standalone balance sheet as at 31 March 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (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, and based on the consideration of report of one of the joint auditors on financial statements of such Trust as were audited by one of the joint auditors, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and its profit and other comprehensive income, changes in equity and its cash flows 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 SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us along with the consideration of reports of one of the joint auditors referred to in the “Other Matters” section below is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of matter

We draw attention to Note 33(b) of the standalone financial statements, which refers to the orders dated 31 August 2016 (Penalty of ' 1,449.51 crores) and 19 January 2017 (Penalty of ' 68.30 crores) of the Competition Commission of India (‘CCI’) against which the Company had filed appeal. Upon the National Company Law Appellate Tribunal (“NCLAT”) disallowing its appeal against the CCI order dated 31 August 2016, the Company has filed an appeal before the Hon’ble Supreme Court of India, which has by its order dated 5 October 2018, granted a stay against the NCLAT order. Consequently, the Company has deposited an amount of ' 144.95 crores equivalent to 10% of the penalty of ' 1,449.51 crores recorded as asset. The Company, backed by legal opinions, believes that it has a good case in both the matters basis which no provision has been recognised in the books of account. Our opinion is not modified in respect of these matters.

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.

The key audit matter

How the matter was addressed in our audit

Revenue recognition - Discounts, incentives and rebates

Our audit procedures included:

[Refer note 1 (B)(o) and 53 to the standalone financial statements]

We have assessed the Company’s accounting policies relating

• Revenue is measured net of discounts, incentives, rebates etc.

to revenue, discounts, incentives and rebates by comparing with

given to the customers on the Company’s sales.

applicable accounting standards.

• The Company’s presence across different marketing regions

We have assessed the design and implementation and tested the

within the country and the competitive business environment

operating effectiveness of Company’s internal controls over the

makes the assessment of various types of discounts, incentives

provisions, approvals and disbursements of discounts, incentives

and rebates as complex and judgmental.

and rebates.

• Therefore, there is a risk of revenue being misstated as a result

We have assessed the Company’s computations for accrual

of variations in the assessment of discounts, incentives and

of discounts, incentives and rebates, on a sample basis, and

rebates.

• Given the complexity and judgement required to assess the

compared the accruals made with the approved schemes and underlying documents.

provision for discounts, incentives and rebates, this is a key

We have verified, on a sample basis, the underlying

audit matter.

documentation for discounts, incentives and rebates recorded and disbursed during the year.

We have compared the historical trend of payments and reversal of discounts, incentives and rebates to provisions made to assess the current year accruals.

We have examined the manual journals posted to discounts, rebates and incentives to identify unusual or irregular items.

Regulations - Litigations and claims

Our audit procedures included:

[Refer note 33 to the standalone financial statements]

We understood the processes, evaluated the design and

• The Company operates in various States within India and is

implementation of controls and tested the operating effectiveness

exposed to different Central and State/Local laws, regulations

of the Company’s controls over the recording and re-assessment

and interpretations thereof. Due to a complex regulatory

of uncertain legal positions, claims (including claims receivable)

environment, there is an inherent risk of litigations and claims.

and contingent liabilities.

• Consequently, provisions and contingent liability disclosures

We have gained an understanding of outstanding litigations

may arise from indirect tax proceedings, legal proceedings,

against the Company from the Company’s inhouse legal counsel

including regulatory and other government/ department

and other key managerial personnel who have knowledge of

proceedings, as well as investigations by authorities and

these matters.

commercial claims.

We have read the correspondence between the Company and

• The Company applies significant judgement in estimating the

the various indirect tax/legal authorities and the legal opinions of

likelihood of the future outcome in each case and in determining

external legal advisors, where applicable, for significant matters.

the provisions or disclosures required for each matter.

We have tested the completeness of the litigations and claims by

• Resolution of tax and legal proceedings may span over multiple

examining, on a sample basis, the Company’s legal expenses and

years due to the highly complex nature and magnitude of the

minutes of the board meetings.

legal matters involved and may involve protracted negotiation

We have challenged the Company’s estimate of the possible

or litigation.

outcome of the disputed cases based on applicable indirect tax

• These estimates could change significantly over time as new

laws and legal precedence by involving our tax specialists.

facts emerge and each legal case progresses.

We have assessed the adequacy of the Company’s disclosures in

• Given the inherent complexity and magnitude of potential exposures and the judgement necessary to estimate the amount of provisions required or to determine required disclosures, this is a key audit matter.

respect of contingent liabilities for indirect tax and legal matters.

The key audit matter

How the matter was addressed in our audit

Recognition and measurement of Income Taxes

[Refer notes 18 and 39 to the standalone financial statements]

• The Company operates in a complex tax jurisdiction and is subject to periodic challenges by tax authorities on various matters relating to claims for tax exemptions / deductions.

• The determination of provision for income tax and deferred taxes including write backs of provisions involves significant judgements and estimates and interpreting the prevailing tax laws and rules.

• These also involve significant judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosures in the standalone financial statements.

• Considering the complexity and significant level of estimation and judgement, this is a key audit matter.

Our audit procedures included:

• Our audit procedures to test uncertain tax positions included understanding processes, evaluation of design and implementation of controls and testing of operating effectiveness of the Company’s controls over provision for taxation, assessment of uncertain tax positions and disclosure of contingencies.

• We have read and analysed select key correspondences, external legal opinions/ consultations obtained by the Company for key tax matters.

• We have critically challenged the key assumptions made by the Company in estimating current and deferred taxes by involving our tax specialists.

• We have challenged the Company’s estimate of the possible outcome of the disputed tax cases by considering legal precedence and other judicial rulings by involving our tax specialists.

• We have assessed the adequacy of the Company’s disclosures for income taxes in the standalone financial statements.


Other Information

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report, but does not include the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and based on the work done/ audit report of one of the joint auditors, 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 and Board of Directors’/ Trustees’ Responsibilities for the Standalone Financial Statements

The Company’s Management and Board of Directors/ Trustees are 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 state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective Management and Board of Directors of the company/ Trustees of the employees welfare trust (“Trust”) are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of each company/ Trust and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the respective Management and Board of Directors/ Trustees are responsible for assessing the ability of each company/Trust to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors/ Trustees either intends to liquidate the company/Trust or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors/ Trustees are also responsible for overseeing the financial reporting process of each company/Trust.

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

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

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

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

• Obtain an understanding of internal 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 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 the Management and Board of Directors.

• Obtain sufficient appropriate audit evidence regarding the financial statements of Trust of the Company to express an opinion on the standalone financial statements. For the Trust included in the standalone financial statements, which have been audited by one of the joint auditors, such joint auditor remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph (a) of the section titled “Other Matters” in this audit report.

• Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

The financial statements of the Trust have been audited by one of the joint auditors whose reports have been furnished to

us, and our opinion in so far as it relates to the amounts and disclosures included in respect of the Trust, is based solely

on the report of such joint auditor.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. 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 A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. (A) As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

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

f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

(B) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the

Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to

the explanations given to us:

a) The Company has disclosed the impact of pending litigations as at 31 March 2022 on its financial position in its standalone financial statements - Refer Note 33 to the standalone financial statements.

b) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 45 to the standalone financial statements.

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

d) (i) The management has represented that, to the best of its knowledge and belief, other than as

disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or

provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(iI) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall:

• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or

• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (d) (i) and (d) (ii) contain any material misstatement.

e) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.

(C) With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

For B S R & Co. LLP For Khimji Kunverji & Co LLP

Chartered Accountants Chartered Accountants

Firm’s Registration No.: 101248W/W-100022 Firm’s Registration No.: 105146W/W100621

Vikas R Kasat Ketan Vikamsey

Partner Partner

Membership No: 105317 Membership No: 044000

ICAI UDIN: 22105317AIBGSP6959 ICAI UDIN: 22044000AIBLGY6303

Mumbai Mumbai

29 April 2022 29 April 2022