(ii)

that was carried out by the management. Consequently, they have performed alternative procedures to
audit the existence of inventory as per the guidance provided in SA 501 “Audit Evidence — Specific
Considerations for Selected Items” and have obtained sufficient audit evidence to issue their unmodified
opinion on the statement. Their report on the financial statement is not modified in respect of this matter.

For the three months ended June 30, 2020 and June 30, 2021, the Statutory Auditor has stated that the
management maintains its inventory at the various Company owned EBOs and warehouse locations. Due
to restrictions imposed during the COVID-19 related lockdowns, the management was unable to conduct
the physical inventory count for the period ended June 30, 2020 and June 30, 2021, consequently they
could not observe physical verification of inventory as on June 30, 2020 and June 30, 2021. However,
the management had, for its internal purposes, physically verified inventories as on March 31, 2021 at
all the locations. No material discrepancies were noted between the inventory as per books and actual
inventory as on the date of verification. Consequent to their inability to physically verify the inventory,
as required by SA 501 “Audit Evidence — Specific Considerations for Selected Items”, they have
performed alternate procedures to audit the existence of inventory which inter alia included the following
ona test check basis; (a) tested the design and implementation of controls over inventory movement, (b)
verified the quantitative reconciliation from June 30, 2020 till March 31, 2021, i.e., the date of physical
count performed by the management and reconciliations from March 31, 2021 till June 30 2021,
including inspection of supporting documents related to purchases, sales and purchase/sales return for
the reconciliation period, (c) examined evidence supporting the subsequent sale of inventory existing as
on June 30, 2020 and June 30, 2021, based on product code for quantities held as inventory on June 30,
2020 and June 30, 2021 and the realization of sale proceeds were traced to the bank statements. Basis the
aforesaid procedures, they have obtained sufficient appropriate audit evidence to issue their unmodified
opinion on the special purpose interim Ind AS financial statements. Their report on the special purpose
interim Ind AS financial statements is not modified in respect of this matter.

Summary of Outstanding Litigation and Material Developments

A summary of outstanding litigation proceedings involving our Company, our Promoters, our Directors, and our
Group Company as disclosed in this Prospectus as per the Materiality Policy, is provided below:

 

Qin million)
Type of Proceedings Number of cases | Amount*
Cases against our Company
Criminal proceedings Nil Nil
Action by regulatory/statutory authorities Nil Nil
Material civil litigation Nil Nil
Cases by our Company
Criminal proceedings 1 0.30
Action by regulatory/statutory authorities Nil Nil
Material civil litigation Nil Nil
Tax Proceedings involving our Company
Tax proceedings involving our Company 20 17.49
Cases involving our Directors
Criminal proceedings Nil Nil
Action by regulatory/statutory authorities Nil Nil
Tax proceedings Nil Nil
Material civil litigation Nil Nil
Cases involving our Promoters
Criminal proceedings Nil Nil
Action by regulatory/statutory authorities Nil Nil
Tax proceedings Nil Nil
Material civil litigation Nil Nil
Disciplinary action including penalty imposed by SEBI or stock exchanges Nil Nil
Cases against our Group Company that may have a material impact on the Company
Outstanding litigation that may have a material impact on our Company Nil Nil

 

*Amount to the extent quantifiable

For further details of the outstanding litigation proceedings, see ‘Outstanding Litigation and Material
Developments’ beginning on page 343.

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