CARO 2020
(iii) Investments made, guarantee/security provided, loans granted
Whether during the year the company has made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties, if so, –
- whether during the year the company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided security to any other entity [not applicable to companies whose principal business is to give loans], if so, indicate-
(A) The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to subsidiaries, joint ventures and associates;
(B) The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to parties other than subsidiaries, joint ventures and associates;
- whether the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the company’s interest.
- in respect of loans and advances in the nature of loans, whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular.
- if the amount is overdue, state the total amount overdue for more than ninety days, and whether reasonable steps have been taken by the company for recovery of the principal and interest.
- whether any loan or advance in the nature of loan granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties, if so, specify the aggregate amount of such dues renewed or extended or settled by fresh loans and the percentage of the aggregate to the total loans or advances in the nature of loans granted during the year [not applicable to companies whose principal business is to give loans].
- whether the company has granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment, if so, specify the aggregate amount, percentage thereof to the total loans granted, aggregate amount of loans granted to Promoters, related parties as defined in clause (76) of section 2 of the Companies Act, 2013.
SAMPLES (FROM FY 21-22 AUDIT REPORTS OF LISTED ENTITIES)
VOLTAS LTD:
During the year the Company has not provided loans, advances in the nature of loans, or provided security to companies, firms, Limited Liability Partnerships or any other parties. Further, during the year the Company has stood guarantee to companies as follows:
| Particulars | Amount (INR Crores) |
|---|---|
| Aggregate amount of guarantee provided during the year | |
| Subsidiaries | 1,468.56 |
| Joint Ventures | – |
| Associates | – |
| Others | – |
| Balance outstanding as at balance sheet date in respect of above cases | |
| Subsidiaries | 2,115.59 |
| Joint Ventures | 75.75 |
| Associates | – |
| Others | – |
- During the year the Company has not provided security, granted loan and advances in the nature of loan to companies, firms, Limited Liabilities Partnership or any other parties. Further, during the year the investments made and guarantees provided to companies are not prejudicial to the Company’s interest.
- The Company has not granted loans and advances in the nature of loans to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the requirement to report on clause 3(iii)(c), (d), (e) and (f) of the Order are not applicable to the Company.
CAMS (COMPUTER AGE MANAGEMENT SERVICES LTD)
(iii) Based on our examination of records and according to the information and explanations given to us, The Company has made investment in a subsidiary company during the year and not provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties, in respect of
- The Company has not provided any loans or advances in the nature of loans or stood guarantee, or provided security to any other entity during the year, and hence reporting under clause 3(iii)(a) ,3(iii)(c) ,3(iii)(d), 3(iii)(e) and 3(iii)(f) of the Order is not applicable.
- In our opinion, the investments made during the year are, prima facie, not prejudicial to the Company’s interest.
LAURUS LABS LTD
(iii) The Company has made investments in, provided guarantee and granted unsecured loans to companies during the year, in respect of which
- The Company has made investments in, provided/ stood guarantee and granted unsecured loans during the year and details of which are given below:
(Amt in Crores)
| Particulars | Investments | Loans | Guarantees |
|---|---|---|---|
| A. Aggregate amount granted / provided during the year: | |||
| Subsidiary | 15.23 | 172.00 | 87.90 |
| Associate | 27.60 | – | – |
| Others | – | 0.63 | – |
| B. Balance outstanding as at balance sheet date in respect of above cases: | |||
| Subsidiary | 34.16 | 88.22 | 140.90 |
| Associate | 27.60 | – | – |
| Others | – | 0.53 | – |
The Company has not provided any advances in the nature of loans or security to any other entity during the year.
- 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 Company’s interest.
- In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest are regular as per stipulation.
- According to information and explanations given to us and based on the audit procedures performed, in respect of loans granted by the Company, there is no overdue amount remaining outstanding as at the balance sheet date.
- No loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.
- The Company has granted Loans to its subsidiaries which are repayable on demand details of which are given below:
(Amt in Crores)
| Particulars | All parties | Related |
|---|---|---|
| Aggregate of loans repayable on demand | 88.22 | 88.22 |
| Percentage of loans to total loans | – | 99.40% |
DODLA DIARY LIMITED
iii. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any investments, provided guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties during the year. Accordingly, provisions of clauses 3(iii)(a), 3(iii) (b) and 3(iii)(f) of the Order are not applicable to the Company.
- According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of loans given, in our opinion the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular. Further, the Company has not given any advance in the nature of loan to any party during the year.
- According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given. Further, the Company has not given any advances in the nature of loans to any party during the year.
- According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion following instances of loans falling due during the year were extended:
| Name of the parties | Aggregate amount of dues extended | Percentage of the aggregate to the total loans |
|---|---|---|
| Orgafeed Private Limited | INR 5.50 Million | 3% |
SAGAR CEMENTS LIMITED
- The Company has made investments in, provided guarantee or security and granted unsecured loans to companies during the year, in respect of which:
- The Company has made investment, provided loans, guarantee and security during the year and details of which are given below:
(Amt in Lakhs)
| Particulars | Investments | Loans | Guarantees | Securities |
|---|---|---|---|---|
| A. Aggregate amount granted / provided during the year: | ||||
| Subsidiary | 4,524 | 54,613 | 6,000 | 900 |
| B. Balance outstanding as at balance sheet date in respect of above cases: | ||||
| Subsidiary | 27,749 | 51,413 | 37,000 | 8,788 |
The Company has not provided any advances in the nature of loans to any to other entity during the year
(b) The investments made, guarantees provided, security given and the terms and conditions of the grant of all the above-mentioned loans and guarantees provided, during the year are, in our opinion, prima facie, not prejudicial to the Company’s interest.
(c) In respect of loans granted provided by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest are regular as per stipulation.
(d) According to information and explanations given to us and based on the audit procedures performed, in respect of loans granted by the Company, there is no overdue amount remaining outstanding as at the balance sheet date.
(e) None of the loans granted by the Company have fallen due during the year.
(f) According to information and explanations given to us and based on the audit procedures performed, the Company has not granted any loans either repayable on demand or without specifying any terms or period of repayment during the year. Hence, reporting under clause (iii)(f) is not applicable.
TATA CONSUMER PRODUCTS LIMITED
iii.) The Company has made investments in, and granted loans or advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties during the year, in respect of which:
- The Company has provided loans during the year and details of which are given below:
| Particulars | Loans (In crores) |
|---|---|
| A. Aggregate amount granted / provided during the year: | |
| Subsidiaries | 49.00 |
| Others – Inter Corporate Deposits (“ICD”) | 1234.75 |
| B. Balance outstanding as at balance sheet date in respect of above cases: | |
| Subsidiaries | 14.75 |
| Associates | 16.50 |
| Others | 541.00 |
- The Company has not provided any guarantee or security to companies, firms, limited liability partnerships or other parties.
- b) The investments made, and the terms and conditions of the grant of all the above mentioned loans and advances in the nature of loans, during the year are, in our opinion, prima facie, not prejudicial to the Company’s interest.
- In respect of loans granted or advances in the nature of loans provided by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest are regular as per stipulation.
- According to information and explanations given to us and based on the audit procedures performed, in respect of loans granted and advances in the nature of loans provided by the Company, there is no overdue amount remaining outstanding as at the balance sheet date.
- No loan or advance in the nature of loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.
- f) According to information and explanations given to us and based on the audit procedures performed, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment during the year. Hence, reporting under clause 3 (iii)(f) is not applicable.
SUPREME INDUSTRIES LIMITED
(iii) In respect of Investment in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties:
(a) The Company has not provided any loans or advances in the nature of loans or guarantee or provided security to any other entity during the year and hence reporting under clause 3(iii)(a) is not applicable to the Company.
(b) According to the information and explanations given to us, investment made are in the ordinary course of business and in our opinion, prima facie, not prejudicial to the Company’s interest.
(c) The Company has not granted any loans or advances in the nature of loans during the year and hence reporting under clauses 3(iii)(c), (d), (e) and (f) of the Order is not applicable to the Company.
CERA SANITARYWARE LIMITED
(iii) (a) During the year, the Company has not provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties and hence reporting under clauses 3(iii)(a), (c), (d), (e) and (f) of the Order are not applicable for the year under report.
(b) In our opinion, the investments made during the year are, prima facie, not prejudicial to the Company’s interest
TATA CONSULTANCY SERVICES LIMITED
(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any investments, provided guarantee or security or granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties during the year. The Company has granted loans to one company during the year, details of the loan is stated in sub-clause (a) below.
The Company has not granted any loans, secured or unsecured, to firms, limited liability partnerships or any other parties during the year.
(a) A. Based on the audit procedures carried on by us and as per the information and explanations given to us, the Company has not granted any loans to subsidiaries.
- Based on the audit procedures carried on by us and as per the information and explanations given to us, the Company has granted loans to a party other than subsidiaries as below:
| Particulars | Amount (In Crores) |
|---|---|
| Aggregate amount during the year – Others | 13,655 |
| Balance outstanding as at balance sheet date – Others | 5,386 |
(b) According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the terms and conditions of the loans given are, prima facie, not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of loans given, the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular.
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given.
(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan given falling due during the year, which has been renewed or extended or fresh loans given to settle the overdues of existing loans given to the same party.
(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not given any loans either repayable on demand or without specifying any terms or period of repayment.
INFOSYS LIMITED
iii. The Company has made investments in, companies, firms, Limited Liability Partnerships, and granted unsecured loans to other parties, during the year, in respect of which:
(a) The Company has not provided any loans or advances in the nature of loans or stood guarantee, or provided security to any other entity during the year, and hence reporting under clause 3(iii)(a) of the Order is not applicable.
(b) In our opinion, the investments made and the terms and conditions of the grant of loans, during the year are, prima facie, not prejudicial to the Company’s interest.
(c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest are generally been regular as per stipulation.
(d) In respect of loans granted by the Company, there is no overdue amount remaining outstanding as at the balance sheet date.
(e) No loan granted by the Company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment during the year. Hence, reporting under clause 3(iii)(f) is not applicable. The Company has not provided any guarantee or security or granted any advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties.
TATA MOTORS LTD
(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not provided any guarantee or security or granted any secured loans or secured or unsecured advances in the nature of loans, to companies, firms, limited liability partnerships or any other parties during the year.
The Company has made investments in, granted unsecured loans and advances in the nature of loans to companies and other parties in respect of which the requisite information is as below. The Company has not made investments in or granted any unsecured loans to firms, limited liability partnerships or any other parties during the year.
(a) Based on the audit procedures carried on by us and as per the information and explanations given to us the Company has provided loans to subsidiaries, employees and advances in the nature of loans as below:
| Particulars | Loans (In crores) | Advances in the nature of loans (in Crores) |
|---|---|---|
| A. Aggregate amount granted / provided during the year: | ||
| Subsidiaries | 110.77 | – |
| Others | – | – |
| Employees | 18.20 | – |
| Suppliers | – | – |
| B. Balance outstanding as at balance sheet date in respect of above cases: | ||
| Subsidiaries | 619.29 | – |
| Other | – | – |
| Employees | 32.00 | – |
| Suppliers | – | 61.02 |
(b) According to the information and explanations given to us and based on the audit procedures conducted by us, in our opinion the investments made and the terms and conditions of the loans granted during the year are, prima facie, not prejudicial to the interest of the Company. The Company has not provided any guarantee or security or granted any advances in the nature of loans during the year.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of loans given, in our opinion the repayment of principal and payment of interest has been stipulated and the receipts have been regular except in case of two wholly-owned subsidiaries outside India where cumulative principal amount of ` 613 crores and cumulative interest amount of ` 144 crores which was due for repayment in earlier years has not been collected as at 31 March 2022, since management believes that these amounts are not recoverable as these subsidiaries are in losses and the amounts have been provided for in the financial statements of the Company. Further, during the year, the Company has converted the loans given to its other subsidiaries into investments aggregating to ` 107.92 crores. These loans were not due as on the date of conversion. Further, the Company has given advance in the nature of loan to three suppliers as mentioned below.
| Name of the Entity | Amount (in Crores) | Remarks |
|---|---|---|
| Autoline Industries Limited | 18.7 | These amounts were due for repayment in earlier years but have not been collected as at 31 March 2022 |
| Ganage Pressings Private Limited | 5 | |
| Rojee Tasha Stampings Private Limited | 21 |
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given except in case of two wholly-owned subsidiaries outside India and three suppliers as reported in para iii (c) above.
(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan or advance in the nature of loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties.
(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.
HINDUSTAN UNILEVER LIMITED
(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not provided any guarantee or security or granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnership or any other parties during the year. The Company has made investments in companies and granted secured and unsecured loans to companies and other parties, in respect of which the requisite information is as below. The Company has not made any investments in or granted any loans, secured or unsecured, to firms and limited liability partnership.
(a) Based on the audit procedures carried on by us and as per the information and explanations given to us, the Company has provided loans to any other entity as below:
| Particulars | Loans (In crores) |
|---|---|
| A. Aggregate amount granted / provided during the year: | |
| Subsidiaries* | 436 |
| Others | 4 |
| B. Balance outstanding as at balance sheet date in respect of above cases: | |
| Subsidiaries* | 432 |
| Others | 4 |
*as per the Companies Act, 2013 (‘the Act’)
(b) According to the information and explanations given to us and based on the audit procedures conducted by us, in our opinion the investments made and the terms and conditions of the grant of secured and unsecured loans are, prima facie, not prejudicial to the interest of the Company
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of secured and unsecured loans given, in our opinion the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular. Further, the Company has not given any advance in the nature of loan to any party during the year.
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of secured and unsecured loans given. Further, the Company has not given any advances in the nature of loans to any party during the year.
(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties. Further, the Company has not given any advances in the nature of loans to any party.
(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.