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Integrated report Statutory reportS Financial StatementS
Standalone

Annexure A to the Independent Auditors’ Report –

March 31, 2020

With reference to the Annexure A referred to in the Independent (iii) According to the information and explanations given to
Auditors’ Report to the members of the Company on the us, the Company has not granted any loans, secured or
Standalone Financial Statements for the year ended March 31, unsecured, to companies, firms, limited liability partnerships
2020, we report the following: or other parties covered in the register maintained under
(i) (a) The Company has maintained proper records showing Section 189 of the Companies Act, 2013 (‘the Act’).
full particulars, including quantitative details and Accordingly, paragraphs 3 (iii) (a), (b) and (c) of the Order are
situation of property, plant and equipment and not applicable to the Company.
investment properties. (iv) In our opinion and according to the information and
explanations given to us, the Company has complied with
(b) The Company has a programme of physical verification the provisions of Sections 185 and 186 of the Companies Act,
of its property, plant and equipment and investment 2013 in respect of grant of loans, making investments and
properties by which the property, plant and providing guarantees and securities, as applicable.
equipment and investment properties are verified by
the management according to a phased programme (v) In our opinion, and according to the information and
designed to cover all the items over a period of three explanations given to us, the Company has not accepted
years. In our opinion, this periodicity of physical deposits as per the directives issued by the Reserve Bank
verification is reasonable having regard to the size of of India and the provisions of Sections 73 to 76 or any
the Company and the nature of its assets. In accordance other relevant provisions of the Act and the rules framed
with the policy, the Company has physically verified thereunder. Accordingly, paragraph 3 (v) of the Order is not
certain property, plant and equipment and investment applicable to the Company.
properties during the year and we are informed that (vi) We have broadly reviewed the books of account maintained
the discrepancies were not material and have been by the Company pursuant to the rules prescribed by the
properly dealt with in the books of account.
Central Government for the maintenance of cost records
(c) According to the information and explanations given to under Section 148(1) of the Act for soda ash, caustic soda lye,
us and on the basis of our examination of the records of sodium bicarbonate, clinker, cement and liquid bromine, and
the Company, the title deeds of immovable properties are of the opinion that prima facie, the prescribed accounts
of land and buildings as disclosed in Note 4 and Note and records have been made and maintained. However, we
5 to the Standalone Financial Statements, are held in have not made a detailed examination of the cost records with
the name of the Company, except for freehold land in a view to determine whether they are accurate or complete.
Mambattu, Nellore admeasuring 1,62,095.63 sq. meters (vii) (a) According to the information and explanations given
and amounting to ` 15.05 crore, where the Company is to us and on the basis of our examination of the records
in the process of entering into a Land Sale Agreement of the Company, amounts deducted/accrued in the
with the Government of Andhra Pradesh. books of account in respect of undisputed statutory
dues including Provident fund, Profession tax, Income-
(ii) The inventory, except for goods-in-transit and stocks tax, Duty of customs, Employees’ State Insurance, Goods
lying with third parties, has been physically verified by the and Service tax, Cess and other material statutory dues
management during the year. In our opinion, the frequency have been regularly deposited during the year with the
of such verification is reasonable. In respect of stocks lying appropriate authorities.
with third parties at the year-end, written confirmations have
been obtained. The discrepancies noticed on verification According to the information and explanations given
between the physical stocks and the book records were not to us, there are no dues in respect of Sales-tax, Value
material and have been properly dealt with in the books of added tax, Duty of excise and Service tax payable by
account. the Company.

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