PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

82 PRIVI SPECIALITY CHEMICALS LIMITED (Formerly known as Fairchem Speciality Limited) ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT ON STANDALONE FINANCIAL STATEMENTS – MARCH 31, 2021 (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date) i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment. (b) All property, plant and equipment were physically verified by the management during the year in accordance with a planned programme of verifying them once in two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification and the same have been dealt with in the books of account. (c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company. ii. The inventory, except for goods-in-transit and stocks lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained and in respect of goods-in-transit, subsequent goods receipts have been verified or confirmations have been obtained from the parties. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account. iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (‘the Act’). Accordingly, paragraphs 3(iii) (a), (b) and (c) of the Order are not applicable to the Company. iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, in respect of loans given, investments made, guarantees given and security provided. v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year in terms of the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company. vi. We have broadly reviewed the books of account maintained by the Company as specified under Section 148(1) of the Act, for maintenance of cost records in respect of products manufactured by the Company, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees’ State Insurance, Goods and Service Tax, Duty of Customs, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Income tax and Profession tax have generally been regularly deposited during the year with the appropriate authorities, though there have been slight delays in few cases. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax, Goods and Service Tax, Duty of Customs, Cess and other material statutory dues were in arrears as at March 31, 2021 for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, there are no dues of Service tax, Value Added tax, Goods and Service tax and Sales tax which have not been deposited with the appropriate authorities on account of any dispute. According to the information and explanation given to us, the following dues of Income tax, Duty of Customs and Duty of Excise have not been deposited by the Company on account of disputes: Name of the statue Nature of the dues Amount (Rs. in lakhs) Period to which the amount relates Forum where dispute is pending Date of payment The Income Tax Act, 1961 Income tax 3.32 2005-2006 CIT Appeals Not Yet Paid The Income Tax Act, 1961 Income tax 1,111.88 2011-2012 CIT Appeals Not Yet Paid The Customs Act, 1962 Customs Duty 9.52 1998-1999 CESTAT Not yet paid The Income Tax Act, 1961 Income Tax 316.12 2014-2015 CIT Appeals Not Yet Paid The Income Tax Act, 1961 Income Tax 31.21 2015-2016 CIT Appeals Not Yet Paid The Customs Act, 1962 Customs Duty 90.54 2013-2014 CESTAT Not Yet Paid