To The Members of BHARTI AIRTEL LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of BHARTI AIRTEL LIMITED ("the Company"), which comprise the Standalone Balance Sheet as at March 31, 2024, and the Standalone Statement of Profit and Loss (including Other Comprehensive Loss), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the financial statements, and a summary of material 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 of the Company as at March 31, 2024, and its profit, total comprehensive income/loss, its changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing specified under section 143(10) of the Act ("SAs"). Our responsibilities under those Standards are further described in the Auditors Responsibility 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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
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.
Sr. No Key Audit Matter |
Auditors Response |
1 Revenue from operations: |
Principal Audit Procedures |
We considered accuracy of revenues relating to prepaid and postpaid mobile services and homes services as a key audit matter because of the complexity of the IT systems, significance of volumes of data processed by the IT systems and updation of tariff plans in the IT systems. | We obtained an understanding, evaluated the design, and tested the implementation and operating effectiveness of (i) the general IT controls, automated controls, interfaces, and system generated reports relevant for revenue recognition by involving our IT specialist; (ii) control over tariff plan configuration in the relevant IT systems; and (iii) control over validation of rate charged in call data records (CDRs) with price masters. |
Refer note 2.18 "Revenue recognition" for accounting policies, note 3.2.d Revenue recognition and presentation under the head Critical judgements in applying the Companys accounting policies and note 23 on disclosures related to Revenue from operations in the standalone financial statements. | We tested inter se reconciliations between relevant IT systems (such as billing system and prepa d app cation systems) and with genera ledger, and performed verification of revenue recognised, deferred and unbilled revenue. |
We performed independent testing of call and data benefits to evidence that the amount charged, benefit given and validity provided to the subscribers are consistent with the approved tariff plans. | |
We performed test of details for postpaid and homes revenue by testing invoices, plans selected by customers and collections made. | |
We used data analytics to perform substantive analytical procedure to develop an expectation of the revenue basis past trends of number of subscribers and revenue earned and compared the results of the expectation with actual revenue and did not identify material differences. | |
We verified the appropriateness of the accounting policies and the disclosures related to Revenue from operations in notes 2.18, 3.2.d and 23 respectively in the standalone financial statements. |
Sr. No Key Audit Matter |
Auditors Response |
2 Provisions and contingencies relating to regulatory and tax matters: |
Principal Audit Procedures: |
The Company has recognised provisions for probable outflows relating to legal, tax and regulatory matters and have disclosed contingencies for tax and regulatory matters where the obligations are considered possible. The Company in consultation with the legal, tax and other advisers assess a likelihood that a pending matter relating to tax, legal or regulatory will succeed. In performing this assessment, the Company applies judgement and has recognised provisions based on whether additional amounts will be payable and has disclosed contingent liabilities where economic outflows are considered posso e. | We obtained an understanding, evaluated the design and tested the implementation and operating effectiveness of internal controls relating to: |
We have considered the provisions recorded and the contingencies relating to tax, legal and regulatory matters as a key audit matter as there is significant judgement to determine the possible outcome of matters under dispute and determining the amounts involved, which may vary depending on the outcome of the matters. | 1) identification, evaluation, recognition of provisons.dsclosureof contingencies for matters under review or appeal with relevant adjudicating authorities by considering the assumptions and information used by management in performing this assessment; |
2) completeness and accuracy of the underlying data / information used in the assessment. | |
Refer note 2.17 "Contingencies" for accounting policies, note 3.1.e Contingent liabilities and provisions under the head "Key sources of estimation uncertainties", note 19 "Provisions" for disclosure related to provisions for subjudice matters, note 4(viii) for AGR matter and Note 22(1) in respect of detals of Contngent l abilities in the standalone flnancia statements. | For tax matters, with the help of our tax specialist, we evaluated the reasonableness of the managements positions by considering tax regulations and past decisions from tax authorities, new information and opinions obtained by the Company from its external tax advisors, where applicable. For regulatory matters, we evaluated the reasonableness of the managements positions by considering relevant assessment orders, court judgements, statutes, interpretations and amendments, circulars and external legal opinion obtained by the Company, where applicable. We also evaluated the disclosures provided in the notes to the standalone financial statements concerning these matters. |
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors are responsible for the other information. The other information comprises the Management Discussion and Analysis, Boards Report including Annexures to the Boards Report, Business Responsibility & Sustainability Report and Corporate Governance Report, but does not include the Consolidated Financial Statements, Standalone Financial Statements and our auditors reports 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.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companys 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 including other comprehensive income/ (loss), changes in equity and cash flows of the Company in
accordance with the Ind AS 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 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 Financia 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, management and the Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Companys Board of Directors are also responsible for overseeing the Companys financial reporting process.
Auditors Responsibility 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 auditors 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 financial controls 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 Companys internal financial controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of managements 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 Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors 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 auditors 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.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a 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 of most significance in the audit of the Standalone Financia Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors 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.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, 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 except for the matter as stated in (i) (vi) below for reporting related to requirements of Audit Trail.
c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Other Comprehensive loss, 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 Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2024 from being appointed as a director in terms of Section 164(2) of the Act.
f) The modification relating to the maintenance of accounts and other matters connected therewith, is as stated in paragraph (b) above.
g) With respect to the adequacy of the internal financial controls with reference to Standalone Financia
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.
Statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls with reference to Standalone Financial Statements.
h) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
i) With respect to the other matters to be included in the Auditors 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:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements (Refer Note 22 (I) to the Standalone Financial Statements).
ii. 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 19 to the Standalone Financial Statements).
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company (Refer Note 18 to the Standalone Financial Statements).
iv. (a) The Management has represented that, to the best of its knowledge and belief, other than as disclosed in note 42 to the financial statements, 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 person(s) or entity(ies), 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 by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief no funds have been received by the Company from any person(s) or entity(ies), 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
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with section 123 of the Act, as applicable.
As stated in note 15(h) to the Standalone Financial Statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Based on our examination which included test checks, the Company has used various accounting and related softwares for maintaining its books of account wherein the audit trail (edit log) feature was not enabled throughout the year for the accounting and related softwares used by the Company for maintaining its books of accounts. Further, the Company has enabled audit trail (edit log) feature for part of the year in certain accounting and related softwares for maintaining its books of account and operated during such period. (Refer note 44 of the financial statements).
Further, during the course of our audit, we did not come across any instances of audit trail (edit log) feature being tampered with for aforesaid accounting and related softwares for the part of the year for which the audit trail feature was enabled and operating.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the year ended March 31, 2024.
2. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells LLP
Chartered Accountants (Firms Registration No. 117366W/W-100018)
Vijay Agarwal | |
Partner | |
Place: Gurugram, India |
(Membership No. 094468) |
Date: May 14,2024 |
(UDIN: 24094468BKCDAD8987) |
Annexure "A" to the Independent Auditors Report
(Referred to in paragraph 1(g) under Report on Other Legal and Regulatory Requirements section of our report of even date)
Report on the Internal Financial Controls with reference to Standalone Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to Standalone Financial Statements of BHARTI AIRTEL LIMITED ("the Company") as at March 31, 2024 in conjunction with our audit of the Standalone Financial Statements of the Company as at and for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal financial controls with reference to standalone financial statements based on the internal control with reference to Standalone Financial Statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India ("the Guidance Note"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 ("the Act").
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial controls with reference to Standalone Financial Statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to Standalone Financial Statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to Standalone Financial Statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to Standalone Financial Statements and their operating effectiveness. Our audit of internal financial
controls with reference to Standalone Financial Statements included obtaining an understanding of internal financial controls with reference to Standalone Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls with reference to Standalone Financial Statements.
Meaning of Internal Financial Controls with reference to Standalone Financial Statements
A companys internal financial control with reference to Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to Standalone Financial Statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.
Inherent Limitations of internal Financial Controls With reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls with reference to Standalone Financial Statements, i including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to Standalone Financial Statements to future periods are subject to the risk that the internal financial control with reference to Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, adequate internal financial controls with reference to Standalone Financial Statements and such internal financial controls with reference to Standalone Financial Statements were operating effectively as at March 31, 2024, based on the criteria for internal financial control with reference to Standalone Financial Statements established by the Company considering the essential components of internal control stated in the Guidance Note.
For Deloitte Haskins & Sells LLP
Chartered Accountants (Firms Registration No. 117366W/W-100018)
Vijay Agarwal | |
Partner | |
Place: Gurugram, India |
(Membership No. 094468) |
Date: May 14, 2024 |
(UDIN: 24094468BKCDAD8987) |
Annexure "B" to the Independent Auditors Report
(Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements section of our report of even date)
In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that
(i) In respect of Companys Property, Plant and Equipment, Right of use assets and Intangible Assets:
(a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment, capital work-in-progress and relevant details of right of use assets except in the case of certain Plant and Machinery which is relocated for various network requirements and Company is in the process of updating the records for situation of these assets.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company, except for customer premises equipment, bandwidth and optic fiber cable which due to their nature or location are not verifiable, has a program of verification of property, plant and equipment, capital work in-progress, and right-of-use assets so to cover all the items once every 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain Property, Plant and Equipment, capital work-in progress and right of use assets (based on underlying agreements/other relevant documents and refer subclause (c) below) were due for verification during the year and were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) With respect to immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the Standalone Financial Statements included in property, plant and equipment and according to the information and explanations given to us and based on the examination of the property tax receipts and utility bills for self constructed buildings, registered sale deed / transfer deed / conveyance deed or court orders approving schemes of arrangements / amalgamations (as applicable) provided to us, we report that, the title deeds of such immovable properties are held in the name of the Company as at the balance sheet date, except for as provided below.
AsattheBalance sheet date (Amount in Rs. million) |
||||||
Description of property |
Gross Carrying Value |
Carrying value in the Standalone Financial Statements | Held in the name of | Whether promoter, director or their relative or employee | Period held | Reason for not being in Companys name |
Land |
2,630 | 2,630 | Tata Teleservices Limited |
No | Held since July 1,2019 | Ownership of these lands is transferred and vested in the Company through merger scheme. The titles are pending mutation in the name of the Company. |
Land |
133 | 133 | Amrit Bottlers Pvt. Limited | No | Held since February 12, 2010 | The Company is in the possession of the property. However, conveyance deed is yet to be executed in the name of the Company. |
Bj dng |
203 | 155 | Tata Teleservices Limited |
No | Held since July 1,2019 | Ownership of these buildings is transferred and vested in the Company through merger scheme. The titles are pending mutation in the name of |
Bj dng |
32 | 24 | Tata Teleservices (Maharashtra) Limited |
No | Held since July 1,2019 | the Company. |
Bj dng |
251 | 109 | Amrit Bottlers Pvt. Limited | No | Held since February 12, 2010 | The Company is in the possession of the property. However, conveyance deed is yet to be executed in the name of the Company. |
Further, Property, plant and equipment includes certain immovable properties having gross carrying value of Rs.1,168 million (Net carrying value of Rs.249 million) as at March 31, 2024 acquired as part of scheme of arrangements / amalgamations are still registered in the name of erstwhile group companies/pending mutation in the name of the Company (Refer Note 38 of Standalone Financial Statements).
In respect of immovable properties that have been taken on lease and disclosed in the financial statements as right of use assets as at the balance sheet date, the lease agreements are duly executed in favour of the Company, except for as provided below.
As at the Balance sheet date (Amount in Rs. million) |
Whether promoter, director or their relative or employee |
|||||
Description of immovable properties taken on lease |
Gross Carrying value in the carrying , Financial value _. . Statement |
Held in name of | Period held | Reason for not being held in name of Company* | ||
Land |
15 | 14 | Tata Teleservices Limited |
No | Field since July 1,2019 | Right to use of land & building is vested in the Company through merger scheme. The duly executed agreements are pending mutation in the name of the Company. |
Building |
235 | 179 | Tata Teleservices Limited |
No | Held since July 1,2019 |
(d) The Company has not revalued any of its property, plant and equipment, right of use assets and intangible assets during the year.
(e) According to the information and explanations given to us, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 for holding any benami property underthe Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
(ii) (a) The company does not have any inventory and hence reporting under clause (ii)(a) of the Order is not applicable.
(ii) (b) According to the information and explanations
given to us, at any point of time of the year, the Company has not been sanctioned any working capital facility from banks or financial institutions on the basis of security of current assets, and hence reporting under clause (ii)(b) of the Order is not applicable.
(iii) The Company has made investments in, provided guarantee and granted loans, unsecured, to companies or any other parties during the year, in respect of which:
(a) The Company has provided loans(excluding loans to employees) and guarantees during the year and details of which are given below:
Amount in Rs. million | ||
Loan Amounts | Guarantees | |
A. Aggregate amount granted / provided during the year: |
||
Subsidiaries |
20,116 | - |
B. Balance outstanding as at balance sheet date (subsidiaries) |
42,162 | 354,446 |
The Company has not provided any advance in nature of loans to any other entity during the year.
(b) The investments made, guarantees provided and the terms and conditions of the grant of all the above-mentioned loans, during the year are, in our opinion, prima facie, not prejudicial to the Companys interest.
(c) The Company has granted loans which are payable on demand. During the year, Loans amounting to Rs.20,119 million have been re-paid. In our opinion, the repayments of principal amounts and receipts of interest are regular (Refer reporting under clause (iii)(f) below).
(d) According to information and explanations given to us and based on the audit procedures performed, in respect of loans provided by the Company, there is no overdue amount remaining outstanding as at the balance sheet date as the Company has not demanded such loans.
(e) None of the loans granted by the Company have fallen due during the year as the Company has not demanded such loans.
(f) Above mentioned loans in clause (iii) (a) granted by the Company are repayable on demand and represent 100% of the total loans granted.
(iv) According to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause (v) of the Order is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the books of account maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central Government for maintenance of cost records under Section 148(1) of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained by the Company. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) In respect of statutory dues:
(a) Undisputed statutory dues, including Goods and Service tax, Provident Fund, Employees State Insurance, Income-tax, Duty of custom, cess and other material statutory dues applicable to the Company have been regularly deposited by it with the appropriate authorities in all cases during the year.
There were no undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Employees State Insurance, Income-tax, Duty of custom, cess and other material statutory dues in arrears as at March 31,2024 for a period of more than six months from the date they became payable.
(b) Details of statutory dues referred to in sub-clause (a) above as on March 31, 2024 on account of disputes are given below:
Name of Statue |
Nature of Dispute | Period to which the amount relates | Forum where dispute is pending | Total Disputed amount (Rs. in million)* |
Income Tax Act, 1961 |
Income Tax | 1999-05; | Supreme Court | 7 |
Income Tax Act, 1961 |
Income Tax | 1996-98,2002-05, 2006-09,2013-14; 2004-10 |
High Court | 13,803 |
Income Tax Act, 1961 |
Income Tax | 1995-97,2000-04, 2006-08,2014-16; |
Income Tax Appellate Tribunal | 242 |
Income Tax Act, 1961 |
Income Tax | 1999-00,2003-04, 2010-11,2012-13, 2015-21; |
Commissioner of Income Tax (Appeals) | 623 |
Income Tax Act, 1961 |
Income Tax | 2000-02,2005-06; 1996-97,2003-14 |
Assessing Officer | 170 |
Sub Total (A) |
14,845 | |||
Custom Act, 1962 |
Custom Act | 2004-2006 | Assessing Officer | 6 |
Custom Act, 1962 |
Custom Act | 2001-2005 | Supreme Court | 4,128 |
Custom Act, 1962 |
Custom Act | 2022-2023 | 1st Appellate Authority | 1 |
Custom Act, 1962 |
Custom Act | 2005-2019 | Tribuna | 1,298 |
Sub Total (B) |
5,433 | |||
Finance Act, 1994 (Service tax) |
Service Tax | 2003-2013 | High Court | 1,132 |
Finance Act, 1994 (Service tax) |
Service Tax | 2016-2018 | Assessing Officer | 1,820 |
Finance Act, 1994 (Service tax) |
Service Tax | 1999-2018 | Tribunal | 15,920 |
Finance Act, 1994 (Service tax) |
Service Tax | 2004-2008 | Supreme Court | 273 |
Finance Act, 1994 (Service tax) |
Service Tax | 1996-2018 | 1st Appellate Authority | 172 |
Sub Total (C) |
19,317 | |||
Goods and Services tax Act, 2017 |
AP GST | 2017-2019 | High Court | 39 |
Goods and Services tax Act, 2017 |
AP GST | 2019-2020 | 1st Appellate Authority | 4 |
Goods and Services tax Act, 2017 |
Assam GST | 2017-2018 | 1st Appellate Authority | 4 |
Goods and Services tax Act, 2017 |
Bihar GST | 2017-2020 | 1st Appellate Authority | 1,148 |
Goods and Services tax Act, 2017 |
Bihar GST | 2017-2022 | Assess ng Officer | 616 |
Goods and Services tax Act, 2017 |
Chandigarh GST | 2017-2018 | Assessing Officer | 14 |
Goods and Services tax Act, 2017 |
Chhattisgarh GST | 2017-2019 | 1st Appellate Authority | 27 |
Goods and Services tax Act, 2017 |
Haryana GST | 2017-2020 | 1st Appellate Authority | 70 |
Goods and Services tax Act, 2017 |
HP GST | 2017-2020 | Assessing Officer | 30 |
Goods and Services tax Act, 2017 |
JK GST | 2017-2018 | Assessing Officer | 36 |
Goods and Services tax Act, 2017 |
Karnataka GST | 2017-2018 | 1st Appellate Authority | 9 |
Goods and Services tax Act, 2017 |
Kerala GST | 2017-2018 | Assessing Officer | 41 |
Goods and Services tax Act, 2017 |
MP GST | 2017-2021 | 1st Appellate Authority | 535 |
Goods and Services tax Act, 2017 |
Maharashtra GST | 2017-2019 | Assessing Officer | 2 |
Goods and Services tax Act, 2017 |
Meghalaya GST | 2017-2018 | 1st Appellate Authority | 8 |
Goods and Services tax Act, 2017 |
Odisha GST | 2018-2019 | Assessing Officer | 0 |
Goods and Services tax Act, 2017 |
Odisha GST | 2017-2018 | 1st Appellate Authority | 16 |
Goods and Services tax Act, 2017 |
Punjab GST | 2017-2022 | Assessing Officer | 27 |
Goods and Services tax Act, 2017 |
Punjab GST | 2017-2023 | 1st Appellate Authority | 84 |
Goods and Services tax Act, 2017 |
Rajasthan GST | 2017-2018 | Assessing Officer | 7 |
Goods and Services tax Act, 2017 |
Rajasthan GST | 2017-2019 | 1st Appellate Authority | 25 |
Goods and Services tax Act, 2017 |
Tamil Nadu GST | 2018-2019 | Assessing Officer | 0 |
Name of Statue |
Nature of Dispute | Period to which the amount relates | Forum where dispute is pending | Total Disputed amount (Rs.in million)* |
Goods and Services tax Act, 2017 |
Tamil Nadu GST | 2019-2020 | 1st Appellate Authority | 118 |
Goods and Services tax Act, 2017 |
Telangana GST | 2017-2020 | 1st Appellate Authority | 105 |
Goods and Services tax Act, 2017 |
Uttar Pradesh GST | 2017-2024 | Assessing Officer | 120 |
Goods and Services tax Act, 2017 |
Uttar Pradesh GST | 2018-2020 | 1st Appellate Authority | 0 |
Goods and Services tax Act, 2017 |
West Bengal GST | 2020-2021 | High Court | 6 |
Goods and Services tax Act, 2017 |
West Bengal GST | 2017-2019 | Assessing Office - | 144 |
Sub Total (D) |
3,235 | |||
Bihar VAT Act, 2005 |
VAT | 2005-2017 | Tribunal | 150 |
Delhi VAT Act, 2004 |
VAT | 2015-2018 | Assessing Officer | 3 |
Delhi VAT Act, 2004 |
VAT | 2013-2014 | Tribunal | 6 |
Delhi VAT Act, 2004 |
VAT | 2013-2017 | 1st Appellate Authority | 4 |
The Gujarat VAT Act, 2003 |
VAT | 2016-2017 | Tribunal | 3 |
HP VAT Act, 2005 |
VAT | 1999-2002 | Tribunal | 1 |
J & K VAT Act, 2005 |
VAT | 2004-2017 | 1st Appellate Authority | 2 |
The Karnataka VAT Act, 2003 |
VAT | 2005-2006 | Tribuna | 256 |
The Karnataka VAT Act, 2003 |
VAT | 2002-2009 | Supreme Court | 3,160 |
The Kerala VAT Act, 2003 |
VAT | 2004-2017 | High Court | 123 |
The Kerala VAT Act, 2003 |
VAT | 2003-2004 | Assessing Officer | 0 |
The Madhya Pradesh VAT Act, 2002 |
VAT | 2008-2009 | Assessing Officer | 1 |
Punjab VAT Act, 2005 |
VAT | 2003-2004 | High Court | 30 |
Punjab VAT Act, 2005 |
VAT | 2009-2016 | 1st Appellate Authority | 0 |
Telangana VAT Act, 2005 |
VAT | 2008-2018 | T-buna | 127 |
UPVAT Act, 2008 |
VAT | 2004-2012 | Assessing Officer | 22 |
UPVAT Act, 2008 |
VAT | 2002-2016 | Tribuna | 4 |
UPVAT Act, 2008 |
VAT | 2003-2008 | 1st Appellate Authority | 2 |
The West Bengal VAT Act, 2003 |
VAT | 1995-2002 | Assessing Officer | 39 |
The West Bengal VAT Act, 2003 |
VAT | 1997-1998 | T-buna | 0 |
The West Bengal VAT Act, 2003 |
VAT | 2005-2006 | 1st Appellate Authority | 9 |
Sub Total (E) |
3,942 | |||
The Assam Entry Tax Act, 2008 |
Entry Tax | 2008-2018 | High Court | 647 |
The Assam Entry Tax Act, 2008 |
Entry Tax | 2006-2008 | Revisional Authority | 82 |
Madhya Pradesh Sthaniya Kshetra Me Mai Ke Pravesh Par Kar Adhiniyam, 1976 |
Entry Tax | 2000-2017 | High Court | 481 |
Madhya Pradesh Sthaniya Kshetra Me Mai Ke Pravesh Par Kar Adhiniyam, 1976 |
Entry Tax | 1999-2012 | Assessing Officer | 23 |
Madhya Pradesh Sthaniya Kshetra Me Mai Ke Pravesh Par Kar Adhiniyam, 1976 |
Entry Tax | 2001-2008 | Tribuna | 10 |
Madhya Pradesh Sthaniya Kshetra Me Mai Ke Pravesh Par Kar Adhiniyam, 1976 |
Entry Tax | 2009-2015 | 1st Appellate Authority | 12 |
UP Tax on Entry of Goods into Local Areas Act, 2007 |
Entry Tax | 2001-2007 | High Court | 407 |
UP Tax on Entry of Goods into Local Areas Act, 2007 |
Entry Tax | 2004-2005 | Assess ng Officer | 0 |
UP Tax on Entry of Goods into Local Areas Act, 2007 |
Entry Tax | 2002-2003 | Tribuna | 0 |
Chhattisgarh Sthaniya Kshetra Me Ma Ke Pravesh Par Kar Adhiniyam, 1976 |
Entry Tax | 2015-2016 | High Court | 0 |
HP Tax on Entry of Goods into Local Areas Act, 2010 |
Entry Tax | 2010-2012 | Wbuna | 33 |
Bombay Provincial Municipa Corporations Act,1949 |
Local Body Tax | 2002-2016 | High Court | 172 |
Haryana Local Area Development Tax Act, 2000 |
Entry Tax | 2000-2003 | T-buna | 46 |
Name of Statue |
Nature of Dispute | Period to which the amount relates | Forum where dispute is pending | Total Disputed amount (Rs. in million)* |
Telangana Tax on entry of goods into local areas Act, 2001 |
Entry Tax | 2006-2007 | High Court | 6 |
Orissa Entry Tax Act |
Entry Tax | 2006-2018 | High Court | 855 |
Karnataka Special Tax on Entry of Certain Goods Act, 2004 |
Entry Tax | 2005-2006 | High Court | 172 |
Sub Total (F) |
2,946 | |||
Madhya Pradesh Entertainment duty and Advertisement tax Act 1936 |
Enterta nment Tax | 2016-2018 | High Court | 165 |
U.P. Entertainments and Bettng Tax Act, 1979 |
Entertanmenttax | 2009-2010 | High Court | 5 |
Sub Total (G) |
170 | |||
Grand Total (A+B+C+D+E + F+G): |
49,888 |
(c) We have taken into consideration the whistle blower complaints received by the Company during the year (and upto the date of this report) and provided to us, when performing our audit.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and in our opinion, the Company is in compliance with Section 177 and 188 of the Companies Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Standalone Financial Statements etc. as required by the applicable accounting standards.
(xiv) (a) In our opinion the Company has an adequate
internal audit system commensurate with the size and the nature of its business.
(b) We have considered, the internal audit reports issued to the Company during the year and covering the period upto March 31, 2024.
(xv) According to the information and explanations given to us, in our opinion, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause (xvi)(a), (b) and (c) of the Order is not applicable.
(b) During the year ended March 31, 2024, the Group does not have more than one CIC as part of the group. Subsequent to the year ended March 31, 2024, one of the group companies has been additionally classified as CIC.
(xvii) The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of the Company during the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the Standalone Financial Statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx) The Company has incurred losses (as computed under section 135 of the Act) during the three immediately preceding financial years and hence, it is not required to spend any money under sub-section (5) of section 135 of the Act. Accordingly, reporting under clause (xx) of the Order is not applicable for the year.
For Deloitte Haskins & Sells LLP
Chartered Accountants (Firms Registration No. 117366W/W-100018)
Vijay Agarwal | |
Partner | |
Place: Gurugram, India |
(Membership No. 094468) |
Date: May 14, 2024 |
(UDIN: 24094468BKCDAD8987) |
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